By Sherry Qin
JD.com, the Chinese e-commerce giant, recently announced its financial performance for the second quarter, revealing significant growth in net profit and revenue.
In comparison to the previous year, JD.com reported a net profit of 6.6 billion yuan ($906 million), representing a substantial increase from CNY4.4 billion. This surge in net profit can be attributed to a 7.6% rise in net revenue, which reached CNY287.9 billion. Notably, net service revenue experienced an impressive 30% jump, while net product revenue saw a 3.5% increase.
Furthermore, JD.com’s operating profit more than doubled to CNY8.3 billion. However, this growth was tempered by a decline in non-operating income of CNY1.2 billion. The company explained this decrease as being the result of “net losses arising from fair value changes of investment securities, compared to net gains in the same quarter last year, and the increase in impairment of investments.”
Additionally, JD.com’s operating cash flow for the first half of the year, ending on June 30, reached CNY52.5 billion, surpassing the previous year’s total of CNY51.1 billion.
CEO Sandy Xu expressed satisfaction with their performance during the quarter, highlighting a significant increase in the number of JD’s marketplace merchants, which more than doubled and set a new record.
“JD.com delivered both revenues and profitability ahead of our expectations in the second quarter, an encouraging trend we are happy to see amidst our business adjustment and a highly competitive market environment,” stated CFO Ian Su Shan.
