Beijing (PingWest)—JD.com (NASDAQ: JD and HKEX: 9618), the Chinese household appliances and electronics retailer, today reported better-than-expected financial results for Q2 2020 and unveiled its health subsidiary JD Health will receive more than 830 million investment from Hillhouse Capital.
JD.com reported revenue in the three months ended June rose 34% to 201.05 billion yuan ($29 billion), beating the 190.7 billion yuan average of analyst estimates. The firm benefited from a shift in shopping habits of domestic consumers who have largely moved to online ever since the outset of the COVID-19 pandemic.
“Since the COVID-19 outbreak, JD has steadfastly leveraged our distinctive supply chain and technology capabilities to contribute to society and ensure the steady supply and undisrupted delivery of daily necessities to consumers, while helping to create jobs within our ecosystem and support business partners amidst the dynamic economic environment,” JD.com Chairman and Chief Executive Officer Richard Liu said in the announcement.
In a statement issued along with the latest financial report, the e-tailer said that JD Health signed a final agreement with Hillhouse Capital on non-redeemable Series B preferred stock financing on August 17.
The funds, which exceeds $830 million and is expected to be completed in Q3 2020, will be used to strengthen JD Health's pharmacy supply chain.
With the seed money and support provided by Yale University Chief Investment Officer David Swensen, Zhang Lei, a graduate student of Yale, started Hillhouse Capital in 2005 in Beijing.
As a long-term investor in JD.com, Hillhouse Capital injected $300 million into the company in 2010 and invested in its logistics arm in 2018.
According to the statement, JD Health unveiled its Traditional Chinese Medicine Consultation Center and Intelligent Otorhinolaryngology Services Center in June, each bringing together the country’s top specialists and providing online consultations and disease management programs for patients nationwide. With the addition of these two centers, the specialized virtual medical treatment centers within the JD Health app cover areas including heart disease, mental health, diabetes, kidney disease, pediatrics, oncology, and maternity, among others.
The health affiliate is reportedly planning an IPO on the Hong Kong Stock Exchange and plans to raise at least $1 billion by the end of 2020 or early 2021.