Jingdong Financial Report: Net Income Of 745.8 Billion In 2020, Net Increase Of Nearly 110 Million Active Users

On March 11, Beijing time, Jingdong group released the fourth quarter and full year performance of 2020, and its main core performance indicators exceeded market expectations.
In the fourth quarter of 2020, the net income of Jingdong group is 224.3 billion yuan (about 34.4 billion US dollars), with a year-on-year growth of 31.4%, including 32.1 billion yuan of net service income (about 4.9 billion US dollars), a year-on-year increase of 53.2%, accounting for 14.3% of the net income; the annual net income of 2020 is 745.8 billion yuan (about 114.3 billion US dollars), of which the net service income is 93.9 billion yuan (about 14.4 billion US dollars).
As of December 31, 2020, the number of active purchasing users of JD in the past 12 months has reached 471.9 million, with a net increase of nearly 110 million active users in the whole year. More than 80% of the newly added active users come from the sinking market.
In 2020, affected by the global epidemic situation and other factors, the domestic employment situation will be tightened. The listed companies and non listed companies of Jingdong system will still achieve a net increase of 100000 employees. By December 31, 2020, the number of employees has reached 360000. 80% of Jingdong's front-line employees come from rural areas.
"Although the market environment is still full of challenges, driven by the company's long-term business philosophy and customer-centered value orientation, JD's revenue and number of users accelerated in the fourth quarter," said Liu qiangdong, chairman of the board of directors and chief executive officer of Jingdong group. "In this quarter, JD continued to promote the supply chain based technology and service strategy and constantly enriched it The diversity of the company's revenue. The company's strong development momentum has continued since 2021. At the same time, JD will actively respond to the changes in market development and demand, and continue to invest in innovative and high growth potential businesses, so as to help the company grow sustainably in the long term. "
Net increase of more than 30 million active users in a single quarter
In the fourth quarter of 2020, the number of annual active purchase users of Jingdong group increased by more than 30 million in a single quarter, creating the highest growth rate since listing. Behind this is the unremitting efforts of JD to optimize the user experience and explore the sinking market.
In the past year, through deepening and refining the performance evaluation mechanism of user experience index (NPS), Jingdong retail has continuously improved the user experience index throughout the year, and continuously optimized the product quality, richness and customer service experience. Through Omni channel business, Jingdong retail has covered a variety of offline formats, such as pharmacies, exclusive stores, supermarkets, convenience stores, auto repair shops, flower shops, and so on, linking 3.67 million offline outlets At the same time, it will focus on the broader urban and rural consumption market, and provide more cost-effective goods and more guaranteed services for users in the sinking market.
During the Spring Festival in 2021, JD fulfilled its promise of "delivering goods during the Spring Festival" for the ninth consecutive year. Even from New Year's Eve to the third day of the third day of the lunar new year, Jingdong can cover nearly 300 cities and 1500 districts and counties.
As of December 31, 2020, JD logistics has operated more than 900 warehouses, including the cloud warehouse area managed by JD logistics, with a total storage area of about 21 million square meters; it has owned and is applying for more than 2500 patents and copyrights related to automation and unmanned technology. At the beginning of this year, Jingdong Logistics, relying on its self-developed unmanned warehouse algorithm application, was shortlisted for the Franz Erdman award, the highest award in the global operations research and management science field, and was one of the few Chinese enterprises to be shortlisted in the final list of the award.
From June to December 2020, JD supports the issuance and cancellation of consumption vouchers in Beijing, helping businesses to resume business and market, benefiting tens of millions of citizens. During the Spring Festival in February 2021, JD once again participated in supporting Beijing's "zero threshold" annual consumption voucher project. In addition, in 2020, JD will also provide technical and operational support for consumption coupons for Shanghai, Guangzhou, Shenzhen and other cities to boost urban consumption vitality.
Jingdong group and Jingdong technology are the first batch of enterprises to cooperate with the digital currency Research Institute of the people's Bank of China to carry out the pilot project of digital * *, and the cities that have participated in the pilot projects include Beijing, Suzhou and Chengdu. Jingdong has created digital * * characteristic payment scenarios for local residents, covering online e-commerce platform, Jingdong home appliance stores and Jingdong convenience stores. Jingdong technology provides "technology + service" support for financial institutions and businesses.
Nearly 60 billion yuan has been invested in technology research and development in four years
Since the full technology transformation in early 2017, JD system has invested nearly 60 billion yuan in technology research and development in the past four years.
At present, Jingdong R & D system has 18000 employees including 6 IEEE fellow and more than 500 doctors. From basic core technology to rich application scenario Innovation, Jingdong R & D system constantly promotes the development of enterprises and industries with technological innovation. In November 2020, Jingdong established an exploration and Research Institute based on basic research and focusing on cutting-edge science and technology. Based on the principle of digital intelligent social supply chain, Jingdong will deeply explore the pan artificial intelligence field and realize subversive innovation from the basic theoretical level.
In Jingdong's diversified application scenarios, the value of technology has been more fully highlighted. In the fourth quarter of 2020, the inventory turnover days of Jingdong group will be further reduced to 33.3 days, and the operation efficiency will continue to maintain the leading level in the same industry in the world.
The opening up of technology and infrastructure with the core of digital and intelligent social supply chain also enables JD's partners to grow together.
Jingdong retail's intelligent manufacturing platform will cooperate with more than 1000 brands in deep reverse customization (c2m) in 2020 to provide systematic solutions for new product development and marketing. The number of c2m products jointly incubated is nearly 10 times that of 2019.
With the help of proprietary technology and industry insight, Jingdong Logistics has formed an integrated supply chain solution. In 2020, it has served more than 190000 enterprise customers, covering FMCG, clothing, household appliances, furniture, 3C, automobile and fresh food industries.
In 2020, JD health will comprehensively deepen the cooperation with global medical and health products brand merchants, continue to improve the online and offline Omni channel supply chain system, help doctors practicing in Jingdong health Internet hospital platform improve their diagnosis and treatment accuracy and service efficiency, and provide information solutions for offline hospitals.
Jingdong's development does not seek to be alone. The continuous growth of service income can also reflect the huge value that JD creates for its partners, especially for enterprises in the real economy. During the seven years from 2013 to 2020, the average annual compound growth rate of Jingdong group's net service income has reached 70%. The continuous opening up of technology and services has created great value for customers.
Net increase of 100000 employees a year
Employment is the foundation of people's livelihood. In the year affected by the epidemic in 2020, the listed and non listed companies of Jingdong system will have a net increase of 100000 employees. By December 31, 2020, the number of employees has reached 360000, of which 80% of the front-line employees are from rural areas.
In the first three quarters of 2020, JD logistics will spend about 17.9 billion yuan on the salary and welfare of front-line employees, with an average monthly expenditure of more than 8300 yuan per employee. During the Spring Festival in 2021, Jingdong Logistics has invested another 200 million yuan for employees' overtime subsidies, job security subsidies, children reunion subsidies, red packets delivered during the Spring Festival, and epidemic prevention protection.
In the fight against the epidemic in 2020, Jingdong has not only won the trust of users, but also been recognized by all walks of life. From the group to the collective employees and individuals, Jingdong has been awarded the "national advanced collective for fighting against the new crown pneumonia epidemic", "China's May 4th Medal" and "national model worker". At the beginning of this year, during the anti epidemic period in Hebei Province, Jingdong Logistics once again opened a special channel for the global aid of anti epidemic materials in Hebei Province, helping medical device manufacturers and institutions to meet the transportation needs of aid materials in Hebei Province.
With the overall victory of poverty alleviation, Rural Revitalization has become the starting point of new life and new struggle. Jingdong has put forward a comprehensive "Benfu plan" to give full play to its five core capabilities of supply chain, logistics, finance, technology and service. Starting from the aspects of smart agriculture, new infrastructure construction, industrial belt assistance, supply chain empowerment, financial support and ecological system, Jingdong has opened up the whole rural industrial chain, leaving the main body of the industrial chain in the county and extending to the township, so as to understand technology and dare to innovate The new generation of farmers get employment and entrepreneurship opportunities at home.
In October 2020, Jingdong announced the goal of "driving the growth of rural output value by one trillion yuan in three years", and recently launched the agricultural products circulation center to create an agricultural industrialization demonstration zone; Jingxi launched the "industrial belt factory direct superior product plan - industrial action to promote agriculture", and will invest 1 billion yuan in the next three years.
At the end of 2020, Jingdong put forward three goals for the next ten years: enabling the real economy, improving social efficiency and promoting environmental friendliness. Among them, in the promotion of social efficiency, the proportion of social logistics cost should be reduced to less than 10%.
When there is a need, there must be something to do. Adhering to the long-term principle, Jingdong is ushering in the fruits of sustainable development, shouldering greater responsibility and contributing greater value for users, industry and society.