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JD.com’s growth accelerates in Q2 as Chinese shoppers continue to rely on e-commerce

JD.com continues to benefit from the change in shopping habits as a result of the COVID-19 pandemic.

Beijing-based e-commerce giant JD.com (NASDAQ: JD, HKEX:9618) generated RMB 201.1 billion (USD 28.5 billion) in the second quarter, a 33.8% year-on-year (YoY) increase, exceeding analyst expectations of RMB 190.3 billion (USD 27.5 billion), according to the company’s latest earnings announcement.

The company also announced in the release that JD Health, JD.com’s healthcare subsidiary, would receive a USD 830 million investment from Hillhouse Capital, one of China’s top investors in healthcare.

Chinese consumers are increasingly relying on e-commerce as the go-to shopping method in the wake of the COVID-19 pandemic and JD.com is one of the main beneficiaries. The company reported a net income of RMB 16.4 billion (USD 2.3 billion) during the June quarter, compared to just RMB 618.8 million (USD 90.1 million) in the corresponding period of 2019.

JD.com also added 30 million new active customer accounts during the quarter, while in June the firm’s number of daily active users increased by 40% YoY.

The company’s annual 618 online shopping festival generated a record gross merchandise volume (GMV) of RMB 269.2 billion (USD 38 billion) over the 18-day event, up 33.6% YoY from 2019’s level. JD.com also executed its secondary listing in Hong Kong in June, raising USD 3.9 billion in the public offering.

Richard Liu, chairman and chief executive officer (CEO) of JD.com said in a statement, “Since the COVID-19 outbreak, JD has steadfastly leveraged our distinctive supply chain and technology capabilities to contribute to society and ensure the steady supply and undisrupted delivery of daily necessities to consumers, while helping to create jobs within our ecosystem and support business partners amidst the dynamic economic environment.”

JD.com’s share price on Nasdaq climbed 7.93% to USD 66.98 in Monday trading following the earnings release.