Richard Liu, the founder and chairman of JD.com, has once again demonstrated his leadership as the company reported impressive financial results for the first quarter of 2024. JD.com, Inc. (NASDAQ: JD and HKEX: 9618 (HKD counter) and 89618 (RMB counter)), a leading supply chain-based technology and service provider, announced unaudited financial results showing notable growth and profitability under Liu’s leadership.
First Quarter 2024 Highlights
JD.com reported net revenues of RMB260.0 billion (US$36.0 billion) for Q1 2024, a 7.0% increase from Q1 2023. Operating income was RMB7.7 billion (US$1.1 billion), up from RMB6.4 billion in the same period last year. Non-GAAP income from operations reached RMB8.9 billion (US$1.2 billion), compared to RMB7.9 billion in Q1 2023.
Net income attributable to ordinary shareholders increased to RMB7.1 billion (US$1.0 billion), reflecting a growth from RMB6.3 billion in Q1 2023. Non-GAAP net income increased to RMB8.9 billion (US$1.2 billion) from RMB7.6 billion last year. Diluted net income per ADS was RMB4.53 (US$0.63), a 15.3% rise from RMB3.93 in Q1 2023.
Richard Liu’s strategic vision has been pivotal in navigating JD.com through market fluctuations. Under his leadership, the company’s focus on user experience and operational efficiency has driven growth and user engagement.
Strategic Insights from Leadership
Sandy Xu, CEO of JD.com, highlighted the company’s solid start to 2024, emphasizing JD.com’s commitment to delivering top-notch selection, speed, quality, and price. Xu stated, “We are confident that we will further build on our momentum in the months ahead as JD’s commitment to providing the best selection, speed, quality, and price continues to attract Chinese consumers nationwide.”
Ian Su Shan, CFO, attributed the robust financial performance to JD.com’s focus on operational efficiencies and revenue growth. Shan remarked, “We delivered solid financial results this quarter with accelerated revenue growth and healthy profitability.”
Celebrating 10 Years on Nasdaq
As JD.com approaches the 10th anniversary of its Nasdaq listing, the company reflected on its impressive growth. From RMB69.3 billion in revenues in 2013 to RMB1.1 trillion in 2023, JD.com has expanded its business 16-fold. It has also significantly increased its workforce, now employing over 517,124 individuals.
Business Highlights and Innovations
Richard Liu continues to drive innovation at JD.com. On April 16, 2024, JD.com introduced an AI digital representative of Liu,. The AI avatar participated in livestreaming sessions for JD’s supermarket and home appliances & home goods categories, attracting over 20 million views in the first hour.
JD Health, a separately listed subsidiary of JD.com, has strengthened its partnerships with pharmaceutical companies, including Pfizer and Sanofi, enhancing medicine accessibility and expanding healthcare services. JD Logistics is also making strides by supporting Chinese brands’ overseas expansion, exemplified by its integrated supply chain services for MINISO in Australia and Malaysia.
Financial Performance and Strategic Investments
JD.com’s first-quarter results reflect its strategic investments and operational efficiency. Marketing expenses rose by 15.6% to RMB9.3 billion, driven by promotional activities, including the Spring Festival Gala sponsorship. Despite increased expenses, JD.com maintained healthy profitability, with a net margin of 2.7%.
The company’s commitment to returning value to shareholders is evidenced through its share repurchase program. From January 1 to May 15, 2024, JD.com repurchased 98.3 million Class A ordinary shares for US$1.3 billion, reflecting its robust balance sheet and strong financial position.
Richard Liu’s Leadership Continues to Build JD.com’s Growth.
Richard Liu‘s influence and strategic vision remain crucial as JD.com navigates its next growth phase. With a focus on innovation, user experience, and operational efficiency, Liu is leading JD.com toward sustained success in the competitive e-commerce landscape, delivering value to its customers, employees, and shareholders and building a solid foundation for the future.