Case 20 JD.com Inc

JD.com is a major supply chain-based technology and service provider which provides products and services to consumers, third-party merchants, suppliers, and other business partners through its subsidiaries, consolidated variable interest entities (VIEs) and consolidated VIEs subsidiaries. The Group basically operates e-commerce business which include online retail and online market place through its retail mobile apps and www.jd.com website (collectively, JD Platform). JD.com offers services to consumers through online retail for product selection, price, and convenience. The company also facilitate third-party merchants to sell their products on JD Platform. The third-party merchants can fulfill the orders either by themselves or through the Group’s logistics services. The Group provides a variety of marketing services to business partners through its proprietary advertisement technology platform. The JD Group also offers integrated supply chain solutions and logistics services which include warehousing and distribution services, express and freight services and other value added services to third parties. These value added services are offered to both third-party merchants and suppliers on JD Platform and other business partners through the company’s logistics subsidiary JD Logistics. The company generated total net revenues of RMB576.9 billion, RMB745.8 billion, and RMB951.6 billion (US$149.3 billion) in 2019, 2020, and 2021, respectively. The JD company have a network of 1300 warehouses with an aggregate gross floor area of 24 million square meters. By December 2021, the company had a strength of 298,717 warehouse and delivery personnel. The research and development expenses amounted to US$ 2.563 million in year 2021. The company aims to strengthen its market leadership in e-commerce business by enhancing its supply chain-based technology service capabilities along the principles of sustainable and quality growth. The growth objectives are propelled through investments in logistics infrastructure and supply chain platforms. The total cumulative monthly return for JD stock during the 5-year period Dec 1, 2017–Nov 1, 2022, was 77%.