JD.com stays profitable in Q1, names new CEO

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JD.com, the Chinese ecommerce giant, recorded a net income of US$912 million in the first quarter of 2023, recovering from a net loss of US$435 million in the same period last year.

This more than doubles the US$441 million net income it logged in Q4 of 2022.

JD.com’s net revenues also rose by 1.4% to US$35.4 billion year-on-year. The retail sector remains the company’s biggest contributor, raking in US$31 billion.

Meanwhile, the firm’s net service revenues grew to US$6.9 billion, accounting for 20% of its total revenues.

“JD saw strong growth in profitability in the first quarter as we continued to streamline our operations, optimize our product portfolio, and expand our service offerings,” said CEO Lei Xu in a statement.

He added that the company will further enhance its business structure to expand its user base throughout China. The decision follows JD.com’s official exit from Indonesia and Thailand earlier this year, where it continued to lag behind competitors like Shopee and Lazada.

In JD.com’s earnings call for Q4 2022, CFO Sandy Ran Xu said the markets “require heavy investment over a prolonged period to build an efficient and scalable B2C ecommerce business.”

JD.com also announced management changes, with Lei Xu set to step down and Sandy Ran Xu taking over as CEO. Meanwhile, Ian Su Shan, who currently serves as CFO of JD Logistics, will fill the CFO position at JD.com.

The company said that Lei Xu will begin the process of handing over the CEO role immediately. After his retirement in June, he will serve as the first chair of its advisory council.

JD.com previously announced plans to spin off its industrial and property units through Hong Kong listings. It seeks to increase operational and financial transparency and help investors assess the individual performance of both units.

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