Shulou(Shulou.com)11/24 Report--

CTOnews.com August 16 news, JD.com today released the second quarter of 2023 financial results as of June 30. According to the financial report, JD.com 's net income in the second quarter was 287.9 billion yuan, up 7.6% from the same period last year; net profit was 6.6 billion yuan, up 50% from the same period last year; Nonmuri GAAP net profit was 8.6 billion yuan, up 32.3% from the same period last year.

After the release of the financial report, Xu ran and CFO Shan Jun, CEO of JD.com Group, attended the analyst conference call to interpret the financial report and answered the analyst's questions.

The following is the transcript of the question and answer session of the analyst in this conference call:

Goldman Sachs (331.31,-0.90,-0.27%) analyst Ronald Keung: I saw JD.com 's growth rate in the second quarter exceeded management expectations, while the growth rate of live products is also very good, 3P (third-party merchant business) is also faster than 1P (JD.com 's own business). I would like to ask the management what are their views on the performance of the subdivision in the second quarter? What are the prospects for the future? In particular, I saw JD.com making some structural and business adjustments. How is the KPI performance of each category?

What is the management's view on the growth rate of each business in the second half of the year? Especially considering the background of the current macro and business adjustment.

Xu ran: in the second quarter, despite continuing to face a series of challenges such as the external environment and the recovery of consumption, JD.com firmly implemented our strategy of "low-price mind" and "open ecology". At the same time, it is also constantly promoting the optimization of our organizational structure, and the current performance has exceeded our initial expectations.

Under the pressure of overall consumption in the second quarter, we can also see that our consumption pattern is actually very resilient. Through our growing supply chain capacity, throughout the promotion season, we have ensured a more stable supply of JD.com 's high-quality goods, more competitive prices and more secure services. All these have driven our core advantage category, especially the electrified category, to continue to gain market share.

In fact, you can also see that the whole second quarter by the real estate industry and durable goods consumption is relatively weak double pressure, in fact, the home appliance industry market pressure is relatively great. However, JD.com 's home appliance category has obviously outperformed the industry, and our market share is still further expanding, thanks to our long-established strong user mind, sound national service network and service capability. and the supply chain capability advantage that we have built over the years.

In addition, our 3C business, especially the mobile phone category, has brought a better shopping experience thanks to the ability of the supply chain, the strengthening of "low-cost mentality" and services such as "trade-in". In addition, before JD.com active layout in the field of O2O, JD.com mobile phone category in the second quarter of the growth rate reached double digits, better than the overall performance of the industry.

I also mentioned in my briefing just now that JD.com has made very good progress in the construction of "open ecology" this year. The scale of merchants and the supply of goods have expanded very rapidly, and the GMV (gross merchandise trading volume) of third-party merchants has been accelerating in the past two quarters. At the same time, since the beginning of this year, we have provided a variety of support policies for third-party merchants, including reducing platform usage fees and merchant deduction points. JD.com 's third-party merchants' revenue growth in the first two quarters of this year is still faster than that of proprietary business and remains in a double-digit range.

Of course, we also need to continue to improve and improve the category and business, especially in the super business. In the second quarter, we can see that JD.com is still facing challenges such as the adjustment of business and commodity structure, the offline consumption regression line after the end of the epidemic, and the high base of hoarding last year, which has caused some challenges to our short-term growth rate. However, the Japanese POP merchants, including merchant super categories (POP, the platform opening plan, is the third-party retail platform on JD.com, and merchants borrow JD.com platform to sell goods) and the number of goods are also increasing, and we will continue to strengthen our own supply chain capacity and optimize implementation in this regard.

We believe that with JD.com 's strategic landing and the effect of organizational structure adjustment gradually reflected, JD.com 's super performance in the second half of the year will return to a more healthy growth momentum. In the long run, we firmly believe that Shang Chao Ribai is still the most important growth driver of JD.com.

Shan Yi: the second question about you. In promoting the "low-price mind", JD.com pays more attention to the performance of users. In the second quarter, we see that the indicators of users are improving. Among them, the core users' ARPU (average revenue per user) and the proportion of user size continue to increase, which shows that our series of actions that focus on user experience have gained more recognition and wallet share of core users. Take the "tens of billions of subsidies" concerned by the market as an example. In the second quarter, we see that "Bai Bu" has a positive effect on users' shopping frequency and cross-category shopping, and has a great stretching effect on the activation of new users, especially low-frequency users.

Second, for the open ecology, we are more concerned about the richness of merchants and commodities, as well as the operational efficiency of merchants. Since the beginning of the year, we have simplified the entry process for merchants and increased support for merchants, including reducing operating costs, providing more operating tools and clearer operating rules. JD.com 's number of new businesses has also achieved rapid growth: in the second quarter, the number of businesses achieved year-on-year growth of more than three digits. Further enrich the supply of merchants and goods to meet the diversified needs of different users, which is also an important growth driver for our continued increase in revenue and profits.

Third, in the improvement of supply chain capacity. The most direct embodiment is to promote the "low-cost mind" at the same time, we also provide excellent services for consumers. This can be proved by JD.com 's core advantage category to continuously gain market share. At the same time, the ability of the supply chain has also helped us to achieve a continuous improvement in our gross performance margin.

As we discussed before, all of JD.com 's strategies this year, in other words, our most important KPI will return to GMV, profit and cash flow.

On your third question, as Xu ran shared at the beginning, there is a lot of uncertainty in the macro and industry environment, but we are also seeing an improvement in the health of our business. We will firmly implement JD.com 's long-term strategy and are confident that our core business will maintain a steady growth momentum.

Related readings:

"JD.com Group earned 287.9 billion yuan in the second quarter, with its core indicators exceeding expectations in an all-round way."

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