18% Net Revenue Growth in the First Quarter Witnessed the Lowest Growth Rate of JD Since Listing
- Chaileedo Press
- May 19, 2022
- 3 min read
In the financial reporting season of e-commerce giants, JD took the lead in handing in the paper, recording a net income growth rate of 18%, which is the lowest growth rate since listing. In order to increase its performance, JD began to seek the adjustment of its product structure. During 618 this year, it will also launch a new fashion life collection format - "JD New Department Store", integrating online and offline consumption experience.
May 17 BST (all times of this article are Beijing time), JD COM, Inc., a leading supply chain based technology and service provider, released the financial report for the first quarter of 2022, which is also the first quarterly report since Xu Lei officially became CEO of JD group.
In the first quarter of 2022, the net income of JD group was US $37.8 billion, a year-on-year increase of 18.0%; The operating cost was US $32.5 billion, a year-on-year increase of 18.5%; The operating profit was US $400 million, compared with 1.7 billion yuan (about US $251 million) in the same period last year; The net loss attributable to ordinary shareholders was US $500 million, compared with a net profit of 3.6 billion yuan (about US $532 million) in the same period last year.
As of March 31, 2022, the number of active purchase users of JD group in the past 12 months had reached 580.5 million, with a year-on-year increase of 16.2%. The user scale of JD group has expanded steadily. In the first quarter of this year, the average shopping frequency of users reached a new record, and the average revenue per user (ARPU) was the highest in recent three years.
Revenue rising and losses decreasing, and the average number of purchases by users reached the new highest record. From the data of this quarter alone, JD's financial report in the first quarter of 2022 was stable. However, JD's net loss attributable to ordinary shareholders was $500 million, the first loss in six years since the first quarter of 2016. At the same time, net income in the first quarter rose 18 percent, the lowest record since its listing.
It is worth noting that in the first quarter JD ushered in a series of high-end brands Beauty brands, including Shu Uemura, Yves Saint Laurent from L 'Oreal Group, and men's skin care brand Lab Series, Estee Lauder Re-Nutriv series, frpm Estee Lauder Group's. In addition, during 618 this year,will also launch a new fashion life collection format - "JD New Department Store", integrating online and offline consumption experience. At present, the "JD New Department Store"channel has been officially launched in its app, and the first batch of new stores focusing on different "theme modes" will also be opened in Beijing, Chengdu, Xi'an, Shenzhen and other places.
With the continuous growth of China's beauty consumption demand, the new channel has gathered global beauty brands such as Estee Lauder, Lancome and YSL, as well as Chinese innovative cosmetics brands such as BIOHYALUX and Judydoll. Especially at the arrival of 520, the beauty gift box meeting the diversified gift demand will be highlighted on the home page.
In addition, for the upcoming "618" promotion, JD said that it has released 30 "Lightening and optimizing" merchant support measures, which will help small and medium-sized businesses increase the input-output ratio of JD 618 by at least 20%, and the enthusiasm of businesses to participate in activities reached the new highest point.
Xu Lei, CEO of JD Group, said his company is ready for "618". Due to the epidemic and other reasons, brands and merchants are under great sales pressure. Therefore, the platform sees that this year, brands and merchants will be more actively involved in the JD 618 event than in previous years. JD also hopes to make good use of this sales node to improve its business performance in the second quarter as much as possible on the premise of the epidemic improving.
However, in the current situation of uncertainty about the epidemic situation and consumption, JD has no special requirement of the "618" KPI, "But it is still very important for us to ensure the user experience and promote the performance of the contract", Xu Lei said.
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