E-commerce giant JD.com on Wednesday posted better-than-expected results for the first quarter, recording revenues of USD 31 billion, up 39% year-on-year. Net income attributable to ordinary shareholders was USD 600 million, more than three times the USD 170 million in Q1 2020.
The number of annual active buyer accounts increased by 29% to hit 500 million, according to the earnings report. That is still fewer than its domestic rivals Alibaba and Pinduoduo, which count 811 million and 788 million, respectively.
The group’s retail business, which targets price-sensitive buyers, is struggling to make money amid fierce competition in the sector. 81% of JD’s new customers came from lower-tier cities—a new high for the company. The “new businesses” segment, which includes the grocery group-buying app Jingxi Pinpin, suffered a USD 348 million loss in the quarter, 165% higher than in the same period last year.
“As Jingxi Pinpin is still in the early development stage, it’s quite difficult to depict accurate investment expectations,” said CFO Sandy Xu in the earnings call. “But we are focused on building core capabilities and infrastructure rather than gaining short-term traffic through subsidies.”
Read this: JD Logistics looks to deliver the goods
This article is part of KrASIA’s “Key Stat” series, where KrASIA picks and presents the most significant figures of the day’s technology and business world.