Chinese e-commerce platform JD.com posted mixed second-quarter results.
JD.com on Thursday posted a net loss for the second quarter ended June 30 of $334.4 million, or 23 cents a diluted share, on a net revenue gain of 31.2 percent to $18.5 billion. On an adjusted basis, the company posted net income of $72.3 million, or 5 cents a diluted share. The company also said annual active customer accounts rose by 21.5 percent to 313.8 million for the 12 months ended June 30.
Wall Street analysts were expecting adjusted diluted earnings per share of 10 cents on revenues of $17.8 billion.
Shares of JD.com slipped 1.2 percent to close at $31.97 in trading on the NasdaqGS.
Richard Liu, chairman and chief executive officer, said, “As China’s most trusted e-commerce platform, JD continues to win over quality-focused customers with a premium shopping experience and an unrivaled level of service, no matter where they choose to shop.”
He noted that the company is seeing more corporate clients, both Chinese and international, utilizing the company’s retail infrastructure. “We will continue to prioritize technology innovation to empower our partners with enhanced capabilities and improved efficiency, helping us to realize our ‘Retail as a Service’ strategy, and driving our next phase of growth.”
Sidney Huang, JD’s chief financial officer, said, “Our new business initiatives continue to gain impressive traction across the industry. We will maintain a balanced, long-term approach to investing in the technologies that will define the future of retail.” He added that the company posted “improved margins” at its core JD Mall business in the quarter.
Among the initiatives in the second quarter were the launch of a strategic partnership with Chinese online entertainment service iQiyi in April, as well as the launch of AI platform NeuHub, also in April. In June, Google invested $550 million in the company as part of a new strategic partnership to explore the joint development of retail solutions.
The quarter also saw the inclusion of Japanese lifestyle brand Muji, Swiss watch brand Carl F. Bucherer, and the inclusion of luxury brand Balenciaga on JD’s luxury Toplife platform, which provides shoppers with 24/7 customer service and JD’s exclusive white glove delivery service.
Also in the quarter, JD Logistics introduced its “Flash Delivery” service, offering delivery times from several minutes to one hour for selected merchandise in certain locations.