LONDON — Months of coronavirus lockdowns and travel restrictions in China earlier this year helped e-commerce giant and supply chain-based technology and service provider JD.com achieve better-than-expected results in the quarter ended March 31.
Net revenues jumped to 146.2 billion renminbi, or $20.6 billion, a 20.7 percent rise from the first quarter of 2019, beating Wall Street’s 10 percent expectation. Net revenues from the sale of general merchandise products increased by 38.2 percent in the period. Essential products, such as chicken and eggs and cleaning supplies, saw more than 300 percent growth.
Net income attributable to ordinary shareholders fell to 1.07 billion renminbi, from 7.32 billion renminbi a year earlier.
The platform, which is working on a second listing in Hong Kong, recorded a 24.8 percent rise on annual active customer accounts to 387.4 million, compared to the same period a year earlier, while mobile daily active users in March increased by 46 percent compared to March 2019.
“We are proud that JD.com has been able to remain fully operational throughout the COVID-19 outbreak,” said Richard Liu, chairman and chief executive officer of JD.com. “Strong user growth during the first quarter reflects consumers’ increasing reliance on JD.com to support every aspect of their lives, and confidence in our commitment to providing a broad selection of quality products and best-in-class services.”
JD.com has been relatively quiet on fashion compared to its competitor Alibaba, which just expanded into the luxury outlet business with the launch of Luxury Soho on Tmall. Some 20 luxury and fashion brands, including Delvaux, MSGM, Mackage and Herschel Supply, launched flagships on JD.com in the first quarter.
The retailer has also supported the BFC Foundation Fashion Fund, and participated in the judging for the first round of recipients.
Kevin Jiang, president of international business at JD.com fashion and lifestyle, said, “At this critical point in time for the industry, globally, help must come from all directions. We feel privileged to be a part of this important initiative from the BFC to help hardworking designers as they weather the crisis through JD’s support of the BFC/GQ Designer Menswear Fund.”
On Wednesday, JD.com launched the second luxury product festival. More than 1,000 brands, including Church’s and Bonpoint are participating in this weeklong event to boost sales in China rebound.