Bulletin: JD.com's Focus On Cost Efficiency To Lift EBITDA

This report does not constitute a rating action. HONG KONG (S&P Global Ratings) May 17, 2023--JD.com Inc.'s increasing focus on efficiencies and costs management will improve its margins. This will support the credit profile of the China-based online retailer despite moderating retail sales. The company's increased emphasis on profitability is consistent with the approach of most internet companies amid macroeconomic headwinds. JD (A-/Stable/--) has rolled out several organizational adjustments for 2023. These include optimizing the product mix, streamlining company hierarchy, and trying to improve responsiveness to market changes. We believe consumer online spending and therefore JD?s revenue growth remains fragile in 2023. This is as offline retailers regain traffic with improved mobility in China following the lifting of COVID-related restrictions.

...May 17, 2023 This report does not constitute a rating action. HONG KONG (S&P Global Ratings) May 17, 2023--JD.com Inc.'s increasing focus on efficiencies and costs management will improve its margins. This will support the credit profile of the China- based online retailer despite moderating retail sales. The company's increased emphasis on profitability is consistent with the approach of most internet companies amid macroeconomic headwinds. JD (A-/Stable/--) has rolled out several organizational adjustments for 2023. These include optimizing the product mix, streamlining company hierarchy, and trying to improve responsiveness to market changes. We believe consumer online spending and therefore JD's revenue growth remains fragile in 2023. This is as offline retailers regain traffic with improved mobility in China following the lifting of COVID-related restrictions. Electronics sales should also be soft amid weakness in China's real estate market. JD's net product revenue declined 4% in...

Bulletin