JD Logistics (2618) Q3 2024 earnings summary

Executive summary

• Total revenue for Q3 2024 was RMB 44.4 billion, up 6.6% year-over-year, with external customer revenue at RMB 31.6 billion, over 70% of total revenue.

• Non-IFRS net profit reached RMB 2.57 billion, up 205.1% year-over-year, with a 5.8% margin; reported net profit surged to RMB 2.4 billion from RMB 0.5 billion.

• Integrated supply chain (ISC) customer revenue was RMB 20.7 billion, up 5.4% year-over-year, with external ISC customers increasing to 59,286.

• Strategic partnerships expanded, including full integration with Taobao and Tmall, now serving all major e-commerce platforms in China.

• International business expanded with new warehouses in Malaysia and the US, aiming to double overseas warehouse area by end of 2025.

Financial highlights

• Non-IFRS profit for Q3 was RMB 2.57 billion, up 205.1% year-over-year, with a 5.8% margin.

• Total revenue reached RMB 44.4 billion, up 6.6% year-over-year; external customer revenue was RMB 31.61 billion (71.2% of total).

• Revenue from express and freight delivery services grew 7.6% year-over-year to RMB 23.73 billion.

• Gross margin improved to 11.7% from 7.9% year-over-year, the highest Q3 gross margin since listing.

• Non-IFRS EBITDA was RMB 5.73 billion, up 49.3% year-over-year, with a 12.9% margin.

Outlook and guidance

• Focus on high-quality growth, customer experience, and expanding ISC supply chains in six major industries.

• Plans to maintain positive revenue and expand international warehouses by 100% in 2025.

• Continued focus on technological innovation, automation, and network optimization to drive efficiency.

• Ongoing global expansion to support Chinese brands and overseas customers.

• Q4 profitability expected to be stable and strong, with little change from Q3.