JD.com posts strong sales growth in the third quarter
Prachi Singh | Friday, November 15 2019
For the third quarter of 2019, JD.com reported net revenues of 134.8 billion Chinese yuan (18.9 billion dollars), representing a 28.7 percent increase from the same period in 2018. The company said, net product revenues increased by 26.6 percent, while net service revenues increased by 47 percent. Annual active customer accounts increased to 334.4 million in the twelve months ended September 30, 2019 from 321.3 million in the twelve months ended June 30, 2019, while mobile monthly active users in September 2019 increased by 36 percent and in the third quarter, over 70 percent of new customers were from lower-tier cities.
“JD’s commitment to providing consumers with the best possible online shopping experience drove another strong quarter of growth,” said Richard Liu, Chairman and Chief Executive Officer of JD.com in a statement, adding, “In particular, more and more consumers in China’s fast-growing lower-tier cities are turning to JD for our superior value and service.”
Financial highlights of JD.com’s Q3 results
Cost of revenues increased by 29.4 percent to 114.7 billion Chinese yuan (16.1 billion dollars) in the third quarter due to the growth of the company’s online direct sales business and the logistics services provided to third parties. The company added that income from operations was 5 billion Chinese yuan (0.7 billion dollars), compared to loss from operations of 0.7 billion Chinese yuan for the same period last year. Non-GAAP income from operations was 3 billion Chinese yuan (0.4 billion dollars) with a non-GAAP operating margin of 2.2 percent compared to 0.6 billion Chinese yuan in the third quarter of 2018 with a non-GAAP operating margin of 0.6 percent.
Non-GAAP EBITDA was 4.2 billion Chinese yuan (0.6 billion dollars) with a non-GAAP EBITDA margin of 3.1 percent compared to 1.7 billion Chinese yuan with a non-GAAP EBITDA margin of 1.6 percent for the third quarter of 2018. Net income attributable to ordinary shareholders was 612.3 million Chinese yuan (85.7 million dollars), compared to 3 billion Chinese yuan for the same period last year, while non-GAAP net income was 3.1 billion Chinese yuan (0.4 billion dollars), compared to 1.2 billion Chinese yuan for the same period last year.
Diluted net income per ADS for the third quarter was 0.41 Chinese yuan (6 cents), compared to 2.03 Chinese yuan for the third quarter of 2018. Non-GAAP diluted net income per ADS was 2.08 Chinese yuan (29 cents), as compared to 0.80 Chinese yuan for the third quarter of 2018.
Picture:JD.com media gallery