JD.com reverses loss with operating profit in Q1

Source: Xinhua | 2017-05-09

JD.COM, China’s second-largest e-commerce company, yesterday said its first-quarter operating profit was 1.7 billion yuan (US$246 million), reversing a net loss of 295.7 million yuan a year earlier, as revenue grew strongly from direct sales as well as services for merchants and suppliers.

JD.com’s gross merchandising volume, a closely watched indicator of total value of all orders for products and services sold via e-commerce sites, surged 42 percent from a year ago to 184.1 billion yuan, the company said in a filing.

Revenue, excluding JD Finance, jumped 39.8 percent to 75.2 billion yuan, according to the filing.

“The strong results across the board reflect that the Chinese market is embracing our model of a high-quality online shopping experience,” Richard Liu, chairman and CEO of JD.com, said in a statement.

GMV from general merchandise and others totaled 91.5 billion yuan, up 48 percent from a year ago — faster than the GMV growth of 37 percent from electronics and home appliances.

JD.com expects second-quarter revenue at between 88 billion yuan and 90.5 billion yuan, or an annual growth rate of 35-39 percent from a year earlier.

Last week, JD.com set up a logistics subsidiary to drive synergies between its online business and other online and offline partners.