The activity of users and merchants continues to grow, and JD.com has entered a benign development channel.
On November 14th, JD.com (Nasdaq: JD, 09618. HK) announced that its revenue for the third quarter of this year was RMB 260.4 billion, an increase of 5.1% year-on-year; The net profit attributable to common shareholders was 11.7 billion yuan, a year-on-year increase of 47.8%. Non GAAP net profit attributable to common shareholders was 13.2 billion yuan, a year-on-year increase of 23.9%.
Regarding the overall performance of Double 11, JD.com CEO Xu Ran stated that it "exceeded expectations". According to financial reports, compared to performance growth, JD's active user growth rate is even stronger.
Data shows that JD's quarterly active users and user shopping frequency have maintained double-digit growth year-on-year for three consecutive quarters. According to the just concluded JD 11.11 data, the number of shopping users increased by over 20% year-on-year.
Over 90% of users in rural areas of counties use JD.com for trade in programs
In terms of business, JD Retail's revenue in the third quarter was 224.986 billion yuan, compared to 212.059 billion yuan in the same period last year. JD Logistics' revenue was 44.396 billion yuan, compared to 41.663 billion yuan in the same period last year.
In the conference call after the financial report, Xu Ran specifically mentioned the effectiveness of the "national subsidy" policy of "exchanging old for new". Xu Ran stated that on the JD platform, the demand for home appliances and computers in September showed a significant increase compared to July and August, and the overall sales growth rate for the entire third quarter showed a trend of increasing month by month.
JD.com continues to make efforts in trade in programs. Since the third quarter, with the full promotion of the trade in program by various ministries and commissions such as the Ministry of Commerce, over 100000 JD employees have fully supported the trade in program for consumer goods. During JD 11.11, over 90% of rural users in counties across the country conducted trade in programs through JD.
The consumer demand for home appliances and computers on the JD platform continues to steadily increase. With more users participating in the trade in program, the platform's traffic and visits are also accelerating. Xu Ran said that in the future, we will continue to focus on cost efficiency and user experience to enhance the supply chain capabilities of categories including electrified products, supermarkets, and fashion, providing users with a cheap and good shopping experience.
JD.com 'daily 100 product categories continue to maintain healthy growth faster than the social retail market. Especially in the supermarket category, this year we launched a warehouse network transformation to improve efficiency. "Xu Ran introduced that in the third quarter, we continued to achieve double-digit growth in the supermarket category, and our profitability is gradually improving.
In the clothing category, investment has also been strengthened since September, and the clothing category achieved double-digit growth in the third quarter. In terms of platform ecosystem construction, JD.com has achieved good results in various indicators of third-party business, and is confident in maintaining a growth rate higher than that of the social retail market
Users, platforms, and merchants grow together
It is worth noting that according to financial reports, the number of third-party merchants on JD.com in the third quarter of this year increased by over 20% year-on-year, and the order volume increased by over 30% year-on-year. In the recent JD Double 11 promotion event, the transaction volume of over 30000 small and medium-sized merchants increased more than twice year-on-year.
The sustained activity of users has also driven more third-party merchants to settle on JD.com. With JD increasing its support for third-party merchants, JD's third-party merchant ecosystem has become more prosperous. While providing users with more low-priced goods, it is also constantly improving its service capabilities.
During November 11th this year, with the support of JD subsidies, Xinjiang free shipping was achieved. JD is using its supply chain capabilities to activate the activity between users and merchants in both directions, and the transaction scale and market share are also increasing, ultimately achieving a benign growth that benefits all three parties: users, brand merchants, and the platform.
When it comes to JD's profit growth this time, Xu Ran said that there are three main driving factors for the increase in profit margin: firstly, JD's scale and efficiency advantages in the supply chain will continue to be released, which will drive the continuous improvement of product gross profit margin through supply chain efficiency, as well as the profit increase brought by logistics cost reduction and efficiency improvement.
Secondly, there is great room for improvement in the profit margins of many categories on JD.com, including supermarkets and changes in category structure, which will also lead to increased profits. "In the long run, our profit margins will continue to improve with business development and operational efficiency, and JD.com 'long-term profit margin targets will continue to increase
Xu Ran said that in the future, JD.com will firmly invest in cost efficiency experience, pay attention to the balance and high-quality development of key indicators such as profit and cash flow. "Looking at the whole year, we are very confident that the group's profit will exceed double-digit growth