Chinese ecommerce firm JD.com reported a 26.2% jump in revenue in the second quarter of 2021 on the back of a strong showing from its retail and logistics businesses.
The company’s total revenue grew to 253.8 billion yuan (US$39.3 billion) in the second quarter of 2021, up from 201.1 billion yuan (US$31 billion) a year ago.
However, the firm’s quarterly income from operations dropped by more than 16x to 300.7 million yuan (US$46.4 million), from 5 billion yuan (US$778 million) a year earlier, due to large spike in general and administrative costs and marketing expenses.
As a result, JD.com’s net profit or income dropped by nearly 35x to US$74 million during the quarter from US$2.5 billion in the same quarter a year ago.
Photo credit: JD.com
JD Logistics posted a 46% growth in revenue, which stood at US$4 million in the second quarter, up from US$2.7 million in the same quarter last year.
The company’s logistics arm recently completed a successful listing on the Hong Kong exchange. The company said that the net proceeds from the listing amounted to 23 billion yuan (US$3.5 billion).
Following the listing, JD Logistics will continue to focus on developing its integrated supply chain. This includes upgrading and expanding its logistics networks and developing advanced technologies to be used in its supply chain solutions and logistics services, according to a statement.
Photo credit: JD.com
JD Retail, the ecommerce giant’s retail arm, continued to be its biggest revenue earner, as it posted a growth in revenue of nearly 23% during the quarter, to contribute US$36 million to the group’s topline.
The strong performance of the retail unit, which houses luxury brands like John Lobb, Stefano Ricci, Vivienne Westwood, and LVMH Group’s JW Anderson, among others, was driven by a 618 grand promotion sale, said to be one of the largest mid-year online shopping events in China.
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The company revealed the sale helped add more than 32 million new users during the quarter. This was the largest single quarter user growth in JD.com’s history. During the 18-day sale, more than 236 brands recorded collective sales of more than 100 million yuan (US$15 million).
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