JD Logistics’ Non-IFRS Profit Margin to Expand Faster Than Our Previous Expectations

JD Logistics, or JDL, differentiates itself from its peers through the insight acquired from years of providing integrated supply chain and logistics services to its parent JD.com. JD.com owns 64% of JDL as of Sept. 18, 2023. JDL assists its customers with omnichannel supply chain integration and all-scenario operations. Its understanding of various industries—especially those with meaningful e-commerce adoption—allows it to accurately match customer inventory in JDL’s warehouses, which are the nearest to the estimated customer base, with estimated demand, improving the in-stock rate and fulfillment efficiency. As of June 30, 2023, JDL operated over 1,600 warehouses and had over 2,000 third-party warehouse owner-operated cloud warehouses, which leverages JDL’s cloud-based warehousing technologies, standards, and brand name, covering nearly all counties and districts in China. Such industry know-how also enables JDL to play a role in increasing its customers’ operational efficiency by ensuring timely and accurate supply of materials for production.