These results provide investors with renewed confidence in JD, and in the Chinese e-commerce sector
Excellent results for JD.com, whose shares closed up 12.9% ie-con US negotiations in recent days, after the e-commerce player recorded better profits than expected for the second quarter of the year.
The news is particularly positive, in particular, because these results provide investors with renewed confidence not only in JD, but also in China’s global e-commerce sector. In the past, in fact, there have been concerns about JD, due to a series of negative news, including mass layoffs and allegations of sexual violence aimed at its founder.
Net revenues for services in the second quarter grew by 40%
According to the data, JD recorded net revenues in the second quarter from RMB 150.3 billion ($ 21.9 billion), up 22.9% over the previous year and exceeding the consensus of $ 20.9 billion resulting from FactSet financial data and service companies.
Net revenues for services in the second quarter grew 40% to RMB 16.8 billion ($ 2.4 billion), while annual active user accounts increased to 321.3 million for the twelve months ended June 30, from 310.5 million before.
Revenue costs, on the other hand, increased by over a fifth to RMB 128.2 billion in the period under review, rising from RMB 105.8 billion in the prior-year period. The increase was driven by direct online sales and logistics provided to third parties.
Demand in lower-tier cities is driving the growth momentum in the e-commerce market
Also, general data are positive. In this year’s shopping promotion, which falls within the most recent reporting period, JD recorded a sales record of RMB 201.5 billion in less than three weeks, an increase of 26.6% compared to the 159, 2 billion RMB last year. Alibaba sales rose 38.5% and Pinduoduo sales increased 300%.
Demand in lower-tier cities is driving the growth momentum in the Chinese e-commerce market. JD.com, in this sense, slightly beats the first-quarter earnings estimates, recording net revenues of RMB 121.1 billion.
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