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JD Q1 Sales Jump 20.7% , Boosted by Huge Online Shopping Demand Amid Covid-19

May 17, 2020 5:58 pm

Beijing (PingWest)- The coronavirus pandemic has severely affected overall retail spending, but major e-commerce platforms are getting a boost, as consumers have been forced to go online to safely purchase both essential and non-essential goods.

JD.com on May 15 announced a surge in first-quarter sales, but net earning in the first quarter have dropped compared to the same period of last year.

JD.com booked a net revenue of CNY146.2 billion in the first quarter of 2020, representing a year-over-year growth of 20.7%. Net revenue from the sales of general merchandise products were CNY52.5 billion, an increase of 38.2% from a year ago. Net service revenues were CNY16.1 billion, an increase of 29.6% from the first quarter of 2019.

However, net income plunged 85% to CNY1.1 billion from CNY7.3 billion a year ago, reflecting increasing cost of logistics services. Cost of revenue up 20.2% to CNY123.7 billion, according to JD’s financial report for the first quarter.

Annual active customer accounts jumped by nearly 25% to 387.4 million in the 12 months ended March 31 from 310.5 million in the year-ago period. Mobile daily active users increased by 46% year over year.

Richard Liu, chairman and CEO of JD.com, said in a statement, “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.”

In mid-February, when confirmed case of Covid-19 reached its peaked in China, JD continued to service the online customer and increased the number of employees to minimize disruptions in operation. During the period, JD has offered more than 10,000 new jobs for warehouse workers, couriers and drivers across its logistic network.

For the second quarter of 2020, JD forecast net revenue between CNY180 billion and CNY195 billion, representing a year-over-year growth rate of 20% to 30%.