JD.com reports 62% revenue increase
Chinese e-commerce company JD.com has reported revenues of RMB36.6 billion (US$5.9 billion) for the first quarter of 2015, up by 62% from the same period in 2014. Gross merchandise volume (GMV) for the quarter was RMB87.8 billion (US$14.2 billion), almost doubling its Q1 2014 result.
Fulfilled orders in the quarter were 227.2 million, an increase of 76% from 129.3 million for the same period in 2014. Fulfilled orders placed through mobile accounted for approximately 42% of total orders fulfilled, a 329% increase compared to Q1 2014.
However, the company made a net loss of RMB710.2 million (US$114.6 million) and its net margin was a negative 1.9%.
JD.com’s results, and the revenue increase in particular, exceeded most analysts’ predictions.
Richard Liu, JD.com’s founder, Chairman and Chief Executive Officer, commented: “We are pleased to begin 2015 with another strong quarter of top-line performance driven by JD.com’s growing brand awareness and nationwide reputation for product authenticity and superior customer experience.
“During the quarter we maintained our focus on enhancing online shopping experience and made progress in expanding our consumer offering through our new business initiatives including O2O [Online to Online] and Internet finance.”
Sidney Huang, JD.com’s Chief Financial Officer, said that the company had “invested heavily in a number of new areas during the first quarter”, adding: “We expect that China’s e-commerce market will see ongoing rapid growth in the months and years ahead.”
New initiatives launched during the quarter included: JD-Pai, which aims “to establish service centers on campuses throughout China providing e-commerce services, consumer credit and employment opportunities to China’s younger generation”; and JD Worldwide, a cross-border e-commerce platform.
The company also expanded its fulfilment capabilities during the quarter. JD.com said that, as of 31 March, operated 143 warehouses and a total of 3,539 delivery stations and pickup stations and its delivery network covered 1,961 counties and districts.
As previously reported by Post&Parcel, Alibaba – China’s biggest e-commerce players – announced its quarterly results yesterday. Like JD.com, Alibaba posted results which exceed analysts’ expectations.