China’s largest online retailer and internet company by revenue JD.com has released its financial results for the fourth quarter and full year of 2022. The figures demonstrate the company’s growth and strong cash flow. Annual revenues exceeded RMB 1 trillion yuan ($151.7 billion) for the first time.
Richard Liu founded JD.com in Beijing in 2004. Today, the technology-driven company’s nationwide logistics network is unrivaled in China. This network serves a population of over one billion and offers a vast range of products, from electronics and cosmetics to clothing and groceries.
JD.com’s 2022 in Review
Overall, 2022 was a successful year for JD.com with impressive full-year financial results and a strong performance across its retail, health, logistics, property, and industrial divisions.
Double-Digit Growth in the Fourth Quarter of 2022
JD.com saw double-digit year-on-year growth in daily active users during the fourth quarter of 2022. The online retailer also experienced an upward trend in user structure and user quality. This upward trend resulted in increased shopping frequency and average revenue per user.
The company’s paid membership JD PLUS also saw a rise in numbers during this period, reaching 34 million. Research conducted by the company has revealed that JD PLUS members spend an average of eight times per annum more than non-members.
Full-Year Earnings Highlights
JD.com’s full-year net revenues for 2022 were RMB 1,046.2 billion ($151.7 billion), a 9.9% increase from 2021. The company’s net product revenues increased by 6.1% in 2022. Full-year net service revenues surged by 33.3%.
JD.com’s non-GAAP (generally accepted accounting principles) net income attributable to ordinary shareholders was RMB 28.2 billion ($4.1 billion), an increase from RMB 17.2 billion in 2021.
The company’s operating cash flow for 2022 was RMB 57.8 billion ($8.4 billion), compared to RMB 42.3 billion in 2021. Free cash flow (excluding the effect of JD Baitiao receivables in the operating cash flow) for 2022 was RMB 35.6 billion ($5.2 billion), up from RMB 26.2 billion in 2021.
Environmental, Social, and Governance Accomplishments
In the fourth quarter of 2022, JD Logistics (JD’s integrated supply chain solutions and logistics services division) deployed its hydrogen energy trucks at Amway’s production base in Guangzhou. This move has contributed to achieving “zero carbon” emissions for transportation along Amway’s supply chain.
In addition, JD Logistics reached agreements with an internationally renowned automobile manufacturer to deploy a fleet of electric trucks. This collaboration has helped JD Logistics achieve “100% electrified” transportation in China.
During the resurgence of Covid-19 in December 2022, over 1,000 JD couriers from across China arrived in Beijing. These couriers volunteered their time to ensure the availability of daily essential supplies.
In addition, JD Logistics used around 100 autonomous vehicles to connect communities with delivery stations. The company also used these vehicles to provide contactless services, improving last-mile delivery efficiency. The autonomous vehicles proved particularly valuable in supporting JD Health’s nighttime medication delivery.
JD.com is proud to have been recognized in the Bloomberg Gender-Equality Index (GEI) for the first time in January 2023. This listing made JD.com the only China-based company in the retail industry included in the index. The GEI is a significant acknowledgment of JD.com’s advancements in promoting diversity and inclusivity.
About JD.com Founder Richard Liu
Richard Liu is the chairman and former CEO of JD.com. Under his leadership, JD.com has become China’s largest online retailer and its biggest overall retailer and the world’s third-largest internet company by revenue. JD.com was the first Chinese internet company to join the Fortune Global 500.
Richard Liu’s pioneering approach to retail, logistics, telemedicine and more areas has benefited millions of families in China and worldwide. His efforts to embrace cutting-edge innovations have led the company transform into a leading supply chain-based technology and service provider which aims to open its technology and infrastructure to partners, brands and other sectors, as part of its Retail as a Service offering to help drive productivity and innovation across a range of industries.
