JD.com (JD, Financial), a leading e-commerce company, released its financial results for the third quarter ending September 30, 2024. The company reported net revenue of 260.4 billion yuan, marking a 5.1% year-over-year increase. Net profit attributable to ordinary shareholders rose by 47.8% to 11.7 billion yuan. On a non-GAAP basis, net profit was 13.2 billion yuan, up 23.9% from the previous year.
Following the earnings release, CEO Xu Ran and CFO Shan Su engaged with analysts to discuss the financials and answer questions. Analysts were particularly interested in the impact of JD.com's "trade-in" policy on growth in the third and fourth quarters, as well as the sustainability of this policy into the next year.
CEO Xu emphasized JD.com's ability to rapidly support the trade-in policy, driven by the company's extensive supply chain capabilities. This initiative aligns with government efforts to boost consumption, particularly in electronics. JD.com has seen a significant boost in demand for appliances and computers since implementing the policy, as reflected in the noticeable sales growth over the quarter.
The trade-in policy has not yet fully reached its potential, considering there is a consumer education process involved, and some supply limitations due to production capacity constraints. Government announcements indicate plans to expand the policy to include more product categories, which could further stimulate consumer spending and, consequently, economic growth.
JD.com also continues to focus on enhancing user experience and cost efficiency as part of its growth strategy. The company is committed to offering competitive pricing by optimizing its supply chain and reducing procurement costs. Through initiatives like the "POP" and "Jingxi" models, JD.com aims to attract quality non-brand merchants, thereby offering a diverse range of affordable products to consumers.
Notable growth was observed in categories such as groceries and fashion, with the former seeing double-digit growth backed by a restructuring of their warehouse network to improve efficiency. The company has also launched campaigns like "Buy Fashion on JD" to boost fashion category sales, which have seen double-digit increases as well.
JD.com remains confident in sustaining growth faster than the general retail market, driven by a continued commitment to strategic improvements and market share expansion efforts.
