As the Covid-19 pandemic continues, CEO Liu Qiangdong has once again reported growth for JD.com. In the recent Q3 earnings call, Qiangdong reported solid growth across many facets of the company.
2020 Third Quarter Results Show Growth for JD.com
The unaudited third-quarter financials were reported in an earnings call on November 16, and much of what Liu Qiangdong had to say was positive. From earnings and customer growth to a sustainability award, a lot of good things happened despite the challenges and uncertainties of the Covid-19 pandemic.
Total net revenues for the third quarter came in at RMB 174.2 billion (USD 25.7 billion), which is a year-over-year increase of 29.2 percent. Revenues from general merchandise products grew 34.8 percent compared to last year, and revenues from services increased 42.7 percent.
Operational income dropped slightly from last year, totaling RMB 4.4 billion (USD 0.6 billion). The 12-percent decrease was greatly overshadowed by a much higher increase in Non-GAAP net income. This latter figure was RMB 5.6 billion (USD 0.8 billion), which is 80.1 percent higher than last year’s amount.
Diluted net income per ADS came in at RMB 4.70 (USD 0.69), and Non-GAAP diluted net income per ADS was RMB 3.42 (USD 0.50). The former figure is nearly a 10-fold annual increase, and the latter is an increase of more than 50 percent.
Much of this growth was spurred on by an increase in customer activity. JD.com an annual increase in active customer accounts of 32.1 percent, and the company now counts 441.6 million customer accounts. Liu Qiangdong also said the company has seen customers begin to recover.
JD Retail Offers More Products and Services
JD Retail saw increases in key areas of the division, including multiple new partnerships with notable brands.
One of the most significant new partnerships is an arrangement with Trip.com. The website is China’s biggest online travel agency, and it will use JD.com’s traffic and user resources for marketing purposes. Meanwhile, JD.com will gain access to the online agency’s service supply chain. This supply chain includes transportation ticketing, accommodation reservation, tour package and other services.
The other partnerships include multiple new arrangements with well-known brands, such as Zenga, Rimowa, Yohji Yamamoto, Ami Paris, Golden Goose Deluxe and Ahkah. These and the other new partners represent some of the highest luxury designers and retailers in the world.
Along with these new partnerships, JD PLUS saw continued membership growth. The membership program now has more than 20 million subscribers, who gain access to exclusive sales, shipping discounts and 24-hour dedicated customer service.
JD Health Launches JD Family Doctor Brand
JD Health successfully launched the JD Family Doctor Brand in August. The program is another step into telemedicine, which is a major focus of JD Health. This particular service is a one-stop place for all of the online healthcare services that Chinese families can access through JD Health. JD Family Doctor combines referrals, specialist consultations, primary care appointments and more.
JD Logistics Develops More Supply Chain Solutions
An established company in supply chain management, JD Logistics further expanded its capabilities through a new partnership and new facilities. In conjunction with Nestle, JD Logistics launched a new large-scale smart distribution and storage center in Tianjin. The division of Liu Qiangdong’s company also launched a new JDL Technology brand that offers supply chain solutions to other companies. JD Logistics itself now operates more than 800 warehouses.
JD.Com Wins Environmental Award
In addition to its significant earnings, JD.com was recognized for its sustainable efforts. The company won the Sustainable Retailing Initiative of the Year Award on account of its Green Stream initiative. This initiative encompasses a range of environmentally friendly practices that include using recyclable parcels, using new energy vehicles, and moving to a paperless system. To date, the initiative has helped reduce 1.3 million tons of disposable packaging materials since 2017. The award is a recognition of these efforts.
Liu Qiangdong Readies JD.com for Further Growth
With strong customer and financial growth through the third quarter, Liu Qiangdong has the company well-poised for continued success in the future. The company has strong potential to see more growth domestically within China and internationally throughout the world at large.