Chinese e-commerce giant JD.com witnessed robust revenue growth in the second quarter of 2021 despite turbulent policy changes for the country’s major tech companies. The company says it is investing heavily in its infrastructure and aims to be more than an e-commerce platform.
The company’s net revenue rose to RMB 253.8 billion (USD 39.3 billion) in the second quarter ended June 30, an increase of 26.2% compared with the same period last year, according to the financial report released on Monday. The revenue beats analysts’ expectations, according to IBES data from Refinitiv cited by Reuters.
The company’s mid-year 618 sales bonanza generated over RMB 1 billion (USD 154.2 million) during its 18-day run. The event gave JD 32 million new customers, the largest single-quarter increase ever for the company.
JD Logistics also released its first Q2 and interim results after listing in Hong Kong in May. The logistics arm gained a total revenue of RMB 48.5 billion (USD 7.5 billion) in the first half of 2021, a YoY increase of 53.7%.
As China’s regulators tighten their grip on the internet sector and crack down on monopolies, JD.com is contending with the new developments. The company was fined RMB 500,000 (USD 76,700)—a slap on the wrist—for irregular pricing last December. The company’s fintech arm, JD Digits, withdrew its IPO application with the Shanghai Stock Exchange in April after Ant Group’s IPO process was halted.
“We believe that these regulatory policies are not to restrict and suppress internet industries, but to promote long-term, sustainable, and healthy development,” JD Retail CEO Lei Xu said during the earnings call to assuage the concerns of investors. “JD’s business model and direction are in line with the regulations.”
Earlier this month, the company announced its plan to cement its presence in brick-and-mortar retail. Specifically, JD will include merchants and producers from rural areas in its growing supply chain.
JD.com has signed employment contracts with nearly 300,000 couriers and provides their insurance coverage, which is in line with the country’s new policy to protect gig workers.
The company’s share price on the Nasdaq ticked up by 3.32% on Monday in New York. Its stock in Hong Kong jumped by more than 10% on Tuesday as of 2:00 p.m. local time.