JD.com announces financial results for H1 2018

JD’s net revenues, for the second quarter of 2018, totalled RMB*122.3bn, an increase of 31.2% from the second quarter of 2017. Net service revenues for the second quarter of 2018 were RMB11.8bn, an increase of 51.0% from the second quarter of 2017. This raised total net revenues, for the six months ended June 2018, by 32.1% to RMB222.4bn in comparison to the same period in 2017.

Net revenues for the core JD Mall business increased by RMB50.6bn, or 30.5% year-on-year (YoY), to reach a total of RMB216.4bn for the first six months of 2018. This was mainly due to the growth of the e-commerce sector.

New businesses of the company include logistics services provided to third parties, technology initiatives, and overseas business. Revenue generated from the new businesses of the company was RMB6.0bn, a 158.0% increase from the same period in 2017. Logistics and other services revenues totalled RMB5,110m, up from RMB2,034m in H1 of 2017.

Operating income for the first half of 2018 decreased by RMB 1.3bn to -RMB1.0bn. Despite increases in revenue, JD.com was not able to effectively cost control as operating expenses increased by 32.9% YoY for the first six months of 2018.

The decrease in operating income is attributable to the increases in expenses for the business. Fulfilment, marketing and administration expenses increased by 33.4%, 27.3% and 20.0% respectively for the first half of 2018. Technology and content expenses increased by 83.2% for H1 2018 in comparison to 2017. This was partly due to investments in its AI platform, NeuHub, and launching its “Flash Delivery” initiative amongst other factors.

Source: JD.com

* RMB = US$0.145 / €0.127


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