JD.com announces Q2 2019 results

JD Logistics has announced it is seeking to raise as much as $3.4bn in its Hong Kong initial public offering (IPO).

JD.com has released financial results for Q2 2019 ended June 30, 2019. Net revenues, for the second quarter of 2019, totalled CNY*150.3bn an increase of 22.9% in comparison to Q2 2018. Net service revenues were CNY16.8bn, a year-on-year increase of 42.1%. This raised total net revenues, for the six months ended June 2019, by 22.0% to CNY271.4bn in comparison to the same period in 2018.

Operating income for the second quarter of 2019 was CNY2,266.6m compared to loss from operations of CNY1,033.9m in Q2 2018. Cost of revenues grew to CNY128.2bn, a year-on-year increase of 21.2%. This increase was primarily due to the growth of the company’s online direct sales business and the logistics services provided to third parties.

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 CNY10.6bn during the first six months of 2019. For the six months ended June 30, 2019 logistics and other service revenues totalled just under CNY9.9bn.

Fulfilment expenses, including procurement, warehousing, delivery, customer service and payment processing expenses, increased by 11.4% to CNY9.2bn from CNY8.2bn in Q2 2018. Fulfilment expenses as a percentage of net revenues decreased to 6.1% in Q2 2019, compared to 6.7% in the same period last year. This was primarily due to economies of scale from enhanced logistics capacity utilisation and staff productivity.

“Our economies of scale and innovative technologies are driving operating efficiency and further strengthening our business model. Looking ahead, we will continue to invest in user experience and our talented workforce to further grow the business and create value for all of our stakeholders,” said Sidney Huang, Chief Financial Officer of JD.com.

Source: JD.com

*€=CNY7.7/ $=CNY6.7