E-commerce firm JD.com beats second-quarter estimates, adds record new users amid regulatory tightening

Revenue at JD.com rose to US$39.14 billion in the quarter ended June 30, up about 26 per cent from a year earlier
The company’s annual active customers reached 531.9 million in the second quarter, a 27.4 per cent increase from the same period last year

JD.com

Reuters

Published: 7:51pm, 23 Aug, 2021

Why you can trust SCMP

JD.com on Monday beat analysts’ estimates for the quarter through June and added a record number of new users as the Chinese e-commerce giant benefited from a post-Covid-19 surge in online shopping.

The results come amid a crackdown on the country’s Big Tech companies by Chinese regulators that has led to an upheaval in sectors such as e-commerce, video gaming, ride-hailing and cryptocurrency.

Net revenue at JD.com rose to 253.8 billion yuan (US$39.14 billion) in the quarter ended June 30, up about 26 per cent from a year earlier. Analysts had expected revenue of 249.27 billion yuan, according to IBES data from Refinitiv.

Net profit fell to 794.3 million yuan, down from 16.4 billion yuan a year earlier.

JD.com’s annual active customer accounts jumped to 531.9 million, a 27.4 per cent increase from the same period last year. In the quarter, JD.com added 32 million new users – a company record – following a strong showing at its annual shopping festival in June.

02:20

Intelligent sorting systems help China's JD.com cope with demand during Covid-19 pandemic

China’s regulatory tightening in a range of industries has affected JD.com and the rest of the internet industry. In December last year, regulators fined JD.com 500,000 yuan for pricing irregularities.

China’s anti-monopoly regulator fined rival Alibaba Group Holding a record US$2.8 billion in April for anti-competitive behaviour. Alibaba, operator of online retail platforms Taobao Marketplace and Tmall, owns the South China Morning Post.

Also in April, the Shanghai stock exchange terminated a planned initial public offering for JD Digits, the financial technology unit of JD.com, citing a request from the company to withdraw it. The pullback came after authorities abruptly blocked the listing of Alibaba’s fintech affiliate Ant Group in November last year.

Sales in JD.com’s product segment, which consists of revenue from e-commerce customer purchases, rose to 219.69 billion yuan, up more than 23 per cent from a year earlier.

Post