Zhitong Finance App Xun and JD Logistics (02618) announced annual results for the year ended December 31, 2023. The group achieved revenue of 166.625 billion yuan (RMB, same below), up 21.3% year on year; gross profit of 12.683 billion yuan, up 25.58% year on year; profit attributable to shareholders of 616 million yuan, shareholders' share loss of 1.397 billion yuan in the same period last year, turning a profit from the previous year; basic income per share was 0.1 yuan.

According to the announcement, the increase in total revenue was driven by increased revenue from customers in the integrated supply chain and increased revenue from other customers.

Customer revenue from integrated supply chains increased 5.2% from $77.4 billion in 2022 to $81.5 billion in 2023. The increase in revenue from integrated supply chain customers was mainly due to increased revenue from JD Group; and driven by increased revenue from external integrated supply chain customers, it stemmed from a year-on-year increase in average revenue per customer. The Group's average revenue per customer increased from 36,5015 yuan in 2022 to 420,363 yuan in 2023, an increase of 15.2% over the previous year. This increase reflects customer recognition of our integrated supply chain solutions and logistics services, as well as deepening cooperation and increasing customer stickiness. The number of external integrated supply chain customers that contributed revenue in the year shown was 7,4714 in 2023, compared to 7,9928 in 2022.

Revenue from other customers increased by 42.0% from 60 billion yuan in 2022 to 85.2 billion yuan in 2023, partly driven by the increase in the business volume of the Group's express delivery services. In addition, the increase is also due to Debon Logistics's consolidated increase for the full year of 2023, while for 2022, the Group will only merge Debon Logistics from July 26.

In addition, in the three months ended December 31, 2023, the group achieved revenue of 47.2 billion yuan, an increase of 9.7%; gross profit of 4.353 billion yuan, an increase of 14.1%; and profit of 1,242 billion yuan for the period, an increase of 152.4% over the previous year.

Hu Wei, CEO of the group, said, “In 2023, our total revenue reached 166.6 billion yuan, up 21.3% year on year, of which revenue from external customers was 116.6 billion yuan, up 30.8% year on year, accounting for 70.0% of total revenue, and the share of external revenue increased further compared to 2022. We continue to deepen cooperation with leading customers in various industries such as FMCG, home appliances, furniture, clothing, automobiles, etc., and continuously upgrade digital intelligent supply chain solutions and service products in our segmented industries to help many customers reduce costs and increase efficiency by providing integrated supply chain solutions and service products.

At the same time, we continue to improve the customer experience of standard products such as express delivery and express delivery, and our rich product matrix encourages us to continue to expand the scope of cooperation with existing customers. We are happy to see that external integrated supply chain customers with an annual revenue contribution of not less than 10 million yuan in 2023 maintained year-on-year growth in the number of customers and average revenue per customer, which fully reflects the customer's recognition of our services.

While revenue is steadily increasing, we continue to strengthen logistics infrastructure construction, promote network integration with Debon Logistics Co., Ltd. (Debon Logistics), and continue to invest in technology and innovation in all aspects of logistics operations to provide more professional and reliable solutions and services, and create a first-class customer experience.

2023 is the 10th year that JD Logistics Asia's No. 1 Intelligent Industrial Park was put into operation. We are improving the efficiency of operations by continuously improving the intelligent level of warehouses. It is worth mentioning that our warehouse automation solutions and products have served customers in many external industries to upgrade automated and intelligent warehousing models. For example, our self-developed automatic distribution wall products have been opened to many external customers such as auto parts, apparel, and pharmaceuticals in 2023, effectively solving the problem of multi-SKU distribution and helping customers reduce costs and increase efficiency.”