JD.com reports Q2 loss
Chinese e-commerce giant JD.com has reported a net loss of RMB287.0m ($42.3m) for the second quarter (Q2). The company had a profitable Q1 but it dropped back to a loss in Q2 – even though revenues were up 43.6% compared to Q2 2016 at RMB93.2bn (US$13.7bn) – as a result of continuing investment in marketing and building up its logistics.
According to a statement issued by JD.com today (14 August), marketing expenses increased by 63% to RMB4.1 bn ($0.6bn) and fulfilment expenses increased by 39% to RMB6.4bn ($0.9bn).
Commenting on the results, Richard Liu, Chairman and CEO of JD.com, said: “JD’s growing strength as China’s largest retailer continues to position us to capture new and expanding market opportunities.
“As we broaden our range of offerings, including a rapidly growing roster of top international brands, our customer base continues to expand, with female shoppers becoming an increasingly active user base. Looking forward, as JD’s smart technologies and big data help us revolutionize the online shopping experience, our ‘retail as a service’ initiative will further extend the capabilities of our platform to partners throughout China.”
