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[Awarded] JD's Q1 2021 earnings report has been released. How do you interpret it?
阿尔法工场
joined discussion · May 19, 2021 20:34

JD.com Releases Its First-Quarter 2021 Earnings Report, with the Penfolds Boost Plan Driving Rural Revitalization

 $JD-SW (09618.HK)$   $JD.com (JD.US)$ 
Beijing Time5month19Day, JD.comGroup (Nasdaq stock code:JD；Hong Kong Stock ExchangeStockSubstituteNumber：09618.HK has issued2021In the first quarter of this year, driven by the continued recovery of the domestic consumer market and benefiting from the robust growth of brands, merchants, and partners, JD.com's mainCorePerformanceIndicatorAchieved growth that exceeded expectations.
Last quarter, JD.com saw significant growth in fast-moving consumer goods, particularly agricultural products; among the newly active purchasing users80%From the emerging markets; among JD.com's frontline employees80%From a rural areaJD.com's 'Befu' initiative to boost rural revitalization is beginning to yield results.
By streamlining the entire industrial chain in rural areas, JD.com hasThe industrial chain has been further extended to county seats and townships, enriching urban residents' access to a diverse array of vegetables and fruits while enabling more agricultural enterprises and the new generation of farmers to embark on a new path of development. This, in turn, creates value by fostering the integrated development of the digital economy and the rural real economy and by advancing the establishment of a robust domestic economic circulation.
 
Bend down to serve the road, enabling industrial chains to take root in towns and townships.
 
For a long time, industries in rural areas have generally been small-scale and fragmented, with low levels of standardization, which has resulted in low operational efficiency and weak market competitiveness. At the same time, agricultural products are heavily influenced by local climate conditions, making it easy for industry clusters to form. The agglomeration effect of these industrial clusters is conducive toPromote large-scale production of agricultural products,thereby forming“E-commerce+ Leading Enterprises/Cooperatives + Industry + Farm Households”new industrialized business models to enhance the economies of scale and market competitiveness of agricultural products.
Over the past few years, JD.com has launched a support mechanism covering the entire supply chain to develop a number of specialty agricultural product industrial belts. InShaanxi, JD.com focuses on the local apple industry in variety selection and breeding, irrigation,AIDemand in areas such as agricultural technical services and brand marketing, for the localThe Apple industry provides full-industry-chain services and has built an Apple big data platform to drive precise supply through precise demand, forLocalIt provides strong support for the development of the Apple industry, marketing positioning, and production driven by sales.
In the process of developing specialty agricultural product industrial belts, JD.com has found that these belts are highly conducive to building regional brands, such as Sichuan ugly oranges, Guangxi ponkans, and Yunnan blueberries. These agricultural products inBefore 2019, sales through online platforms were very low, but after 2020, efficiency improved by leaps and bounds. JD.com's big data shows that in 2020, the transaction value of landmark agricultural products on JD.com increased by 74% year on year.
$JD-SW (09618.HK)$   $JD.com (JD.US)$  On May 19, Beijing time, JD.com (Nasdaq: JD; HKEX: 09618.HK) released its first-quarter 2021 results. Driven by the continued recovery of the domestic consumer market and strong growth from brands, merchants, and partners, JD.com's key performance indicators posted better-than-expected growth. In the last quarter, JD.com saw significant growth in fast-moving consumer goods, particularly agricultural products; 80% of new active buyers came from lower-tier markets; and 80% of JD.com's frontline employees are from rural areas… JD.com's 'Befu Zhanzhu' initiative to boost rural revitalization is beginning to yield results. By connecting the entire industrial chain in rural areas, JD.com has extended the industrial chain to county towns and townships, enriching urban vegetable and fruit baskets while enabling more agricultural enterprises and the new generation of farmers to embark on a new development path, thereby creating value for the integrated development of the digital economy and the rural real economy and promoting the establishment of a domestic major circulation.   Bend down to serve the road, enabling industrial chains to take root in towns and townships.   For a long time, industries in rural areas have generally been small-scale and fragmented, with low levels of standardization, which has resulted in low operational efficiency and weak market competitiveness. At the same time, agricultural products are heavily influenced by local climate and geography, making it easy for them to form specialized production zones. The agglomeration effect of these zones helps promote large-scale production of agricultural goods, thereby creating 'electric...'
 By integrating across all links—such as breeding technology, processing, brand marketing, logistics, and technological traceability—JD.com has2016Since then, it has launched a series of green agricultural and specialty products, including running chickens, swimming ducks, flying pigeons, swimming fish, and free-range pigs, creating a large-scale, standardized JD.com-owned agricultural product brand portfolio that has been replicated in more regions. This initiative has not only attracted extensive participation from farmers but also provided consumers with high-quality, green, and pollution-free products, achieving a win-win outcome for farmers, consumers, and the implementing enterprises.
"In the process of selling agricultural products to support farmers, e-commerce not only serves as a super marketing channel, but its full-industry-chain integration model can also facilitate an upgrade from 'products' to 'industries,'" said the director of the Internet Economy Research Office at the Institute of Financial Strategy of the Chinese Academy of Social Sciences.Li YongjianIt was stated that the model of collaboration between the e-commerce full industry chain and agricultural industrial belts is highly valuable for the long-term development of regional agriculture, as it helps to foster the clustering of specialized industries, leverage economies of scale, thereby reducing operational costs and enhancing industrial competitiveness.
If the road network and the power grid were the infrastructure that propelled agricultural development in the previous generation, then, based on big data, cloud computing,AIThe digital and intelligent social supply chain enabled by the Internet of Things can directly connect urban dining tables with rural farmlands, serving as a new-generation infrastructure that drives prosperity in rural areas.
 
Establish a large-scale mid-platform for agricultural product circulation to support sustainable rural development.
 
2020In the second half of the year, JD.com established the Digital Intelligence Agriculture Ecosystem Department, dedicated to building a large mid-end platform for agricultural product circulation. Based on four core capabilities—centralized procurement of goods, digital transformation, warehousing and distribution network, and channel expansion—the JD.com Agricultural Product Circulation Mid-End Platform comprehensively enhances the digital intelligence level of agricultural product production, circulation, and marketing through various initiatives, such as cultivating new farmers, building digital farms, establishing modern agricultural industrial parks, digitally transforming agricultural wholesale markets, developing intelligent warehousing and distribution networks, and implementing big data-driven precision marketing.
If the agricultural product circulation mid-end is a powerful engine for JD.com to assist agriculture, then,"Beijing Heart Helps Farmers" allows people to experience the speed and excitement driven by this powerful engine.
The "Beijing Heart Helps Farmers" project was launched in 2.020At the sudden outbreak earlier this year, logistics were disrupted, businesses closed, and traditional distributors halted procurement, leaving agricultural products nationwide struggling with sluggish sales.2020yearOn February 10, JD.com took the lead in launching a "National Green Channel for Fresh Products," integrating high-quality resources across the entire group in procurement and sales, logistics, finance, marketing, and other areas to provide end-to-end, omni-channel, and multi-format support for the upward flow of agricultural products that had been hindered by the pandemic. By April 3 of the same year,0That day, JD.com Fresh had cumulatively resolved more thanThe challenge of finding markets for 270,000 tons of fresh produce has contributed to the supply of essential living materials and to economic and social stability.
$JD-SW (09618.HK)$   $JD.com (JD.US)$  On May 19, Beijing time, JD.com (Nasdaq: JD; HKEX: 09618.HK) released its first-quarter 2021 results. Driven by the continued recovery of the domestic consumer market and strong growth from brands, merchants, and partners, JD.com's key performance indicators posted better-than-expected growth. In the last quarter, JD.com saw significant growth in fast-moving consumer goods, particularly agricultural products; 80% of new active buyers came from lower-tier markets; and 80% of JD.com's frontline employees are from rural areas… JD.com's 'Befu Zhanzhu' initiative to boost rural revitalization is beginning to yield results. By connecting the entire industrial chain in rural areas, JD.com has extended the industrial chain to county towns and townships, enriching urban vegetable and fruit baskets while enabling more agricultural enterprises and the new generation of farmers to embark on a new development path, thereby creating value for the integrated development of the digital economy and the rural real economy and promoting the establishment of a domestic major circulation.   Bend down to serve the road, enabling industrial chains to take root in towns and townships.   For a long time, industries in rural areas have generally been small-scale and fragmented, with low levels of standardization, which has resulted in low operational efficiency and weak market competitiveness. At the same time, agricultural products are heavily influenced by local climate and geography, making it easy for them to form specialized production zones. The agglomeration effect of these zones helps promote large-scale production of agricultural goods, thereby creating 'electric...'
 In view ofRegarding the application results of "Jingxin Helps Farmers," in June 2020, JD.com Fresh officially upgraded the "Jingxin Helps Farmers" project into a long-term strategy. By integrating supply chain, logistics, talent, traffic, live streaming, and other platform- and channel-wide resources, the company deepened its cooperation with the government and farmers, thereby promoting the sustainable development of the upward flow of fresh agricultural products.
Zheng Fengtian, Vice Dean of the School of Agricultural and Rural Development at Renmin University of China, said,"From the very beginning, JD.com has been committed to helping rural areas establish a closed loop of industrial chains, supply chains, and ecological chains, covering the entire modern agricultural value chain from planting and breeding to processing, brand marketing, logistics, finance, and services, thereby supporting the genuine development of sustainable industrial capabilities in rural areas. These initiatives have provided valuable development opportunities for China's agriculture and rural areas."
 
JD.com Unveils a Comprehensive Overview of Its Digital Rural Business, Accelerating the Pace of Digital Rural Development
 
This yearIn April, JD.com unveiled its comprehensive digital rural business roadmap for the first time, delivering core value in five areas: logistics, branding, industry, technology, and employment., dedicated to promoting the agricultural product circulation mega-platform and JD.com's origin warehouses/Implementation projects such as cloud warehouses, JD.com farms, JD.com industrial belts, smart county-level systems, and regional public brands.
$JD-SW (09618.HK)$   $JD.com (JD.US)$  On May 19, Beijing time, JD.com (Nasdaq: JD; HKEX: 09618.HK) released its first-quarter 2021 results. Driven by the continued recovery of the domestic consumer market and strong growth from brands, merchants, and partners, JD.com's key performance indicators posted better-than-expected growth. In the last quarter, JD.com saw significant growth in fast-moving consumer goods, particularly agricultural products; 80% of new active buyers came from lower-tier markets; and 80% of JD.com's frontline employees are from rural areas… JD.com's 'Befu Zhanzhu' initiative to boost rural revitalization is beginning to yield results. By connecting the entire industrial chain in rural areas, JD.com has extended the industrial chain to county towns and townships, enriching urban vegetable and fruit baskets while enabling more agricultural enterprises and the new generation of farmers to embark on a new development path, thereby creating value for the integrated development of the digital economy and the rural real economy and promoting the establishment of a domestic major circulation.   Bend down to serve the road, enabling industrial chains to take root in towns and townships.   For a long time, industries in rural areas have generally been small-scale and fragmented, with low levels of standardization, which has resulted in low operational efficiency and weak market competitiveness. At the same time, agricultural products are heavily influenced by local climate and geography, making it easy for them to form specialized production zones. The agglomeration effect of these zones helps promote large-scale production of agricultural goods, thereby creating 'electric...'
JD.com's special-offer shopping platform, Jingxi, is playing an important role in tapping the lower-tier markets. JingxiAPPDirectly supplied by the factory+The direct-from-origin model builds a bridge between affordable, high-quality products and consumers, offering a one-stop e-commerce solution for farm-based, factory-based, and export-oriented businesses.JingxiAPPatLaunched online in September 2019, onlineCumulativeSales of agricultural products exceed1 million tons。
InLogistics infrastructureConstructionIn terms of,Starting in 2019JD Dot ComProposed a logistics penetration strategy and introduced the 'Thousand Counties, Ten Thousand Towns' initiative.24-hour delivery plan.Even in2the year 202011.11During the major promotional event，JD Dot Com can alsoAchievenationwide92 percent of districts and counties、83% of townshipsNext-day delivery.JD Dot Com Logistics has achieved coverage in nearly all regions, towns, and populations across the country.100X% coverage ensures that rural areas can enjoy the same logistics services as urban residents.
JD.com's frontline employees have80%Coming from rural areas, and with the help of JD.com’s digital and intelligent social supply chain capabilities, an increasing number of JD.com employees and platform entrepreneurs have managed to stay in their hometowns while working for JD.com, bringing JD.com’s warm services to the vast urban and rural areas and becoming one of the important forces driving rural revitalization.
Consolidate and expand the achievements in poverty alleviation, and comprehensively advance rural revitalization.This is China’s established strategy. JD.com will steadfastly promote the Prosperity Enhancement Program toRural RevitalizationFulfilling the social responsibilities that a company should inherently bear.
Risk Disclaimer: The above content only represents the author's view. It does not represent any position or investment advice of Futu. Futu makes no representation or warranty.Read more
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