JD.com’s Q2 Revenue Reaches 253.8 Billion Yuan, Higher than Market Expectations

JD.com, a Chinese e-commerce platform, released its Q2 financial report on Monday. Its net revenue in the second quarter was 253.8 billion yuan ($139.3 billion), a year-on-year increase of 26.2%.

Net income attributable to ordinary shareholders for the second quarter of 2021 was 794.3 million yuan, compared to 16.4 billion yuan for the same period last year.

“Over the past 18 years since our founding, JD.com has always placed the interests of our customers, partners and employees foremost while upholding our long-standing business principle of doing business the right way,” said Richard Liu, Chairman and Chief Executive Officer of JD.com.

Its annual active customer accounts increased by 27.4% to 531.9 million in the twelve months ending June 30, 2021 from 417.4 million in the twelve months ending June 30, 2020.

During the 18-day sale from June 1 to 18, over 236 brands saw sales of over 100 million yuan. Many order requests from outside big cities were fulfilled on the same day, seeing a 92% fulfillment rate for districts and countries and a 84% fulfillment rate for small towns. Over one thousand digital and computer stores supported on-demand delivery and one-hour delivery service.

“Our consistent execution and successful 618 Grand Promotion helped us to add over 32 million new users in Q2, the largest single quarter increase in JD.com’s history,” said Sandy Xu, Chief Financial Officer of JD.com.

LVMH group expanded its innovative partnerships with JD.com in the second quarter. Leveraging the JD.com mini-app, LVMH’s BVLGARI brand provided customers with a new shopping experience featuring a full suite of products including selected jewelry and watches. This represents the first time BVLGARI has collaborated with a third-party online retailer in its 137-year history.

In terms of revenue composition, JD Retail, JD logistics, and new business all increased significantly year on year. In the second quarter, JD Retail’s revenue was 232.557 billion, up 22.7% year-on-year, JD logistics revenue was 26.061 billion, up 46% year-on-year, and new business revenue was 6.963 billion, up 60% year-on-year.

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As of June 30, 2021, JD Logistics, which was recently listed on the main board of the Hong Kong Stock Exchange, had over 1,000 air cargo routes and the ability to utilize over 300 railway routes. It also operated approximately 1,200 warehouses, which covered an aggregate gross floor area of approximately 23 million square meters.

In addition, as of June 30, 2021, JD.com had over 320,000 employees, excluding part-time and interns. In July, JD.com said that it will increase employee annual salaries to the equivalent of 16-months pay by July 2023 from the current 14-months.