Chinese e-commerce giant JD.com Inc (NASDAQ: JD) has released its Q1 2021 earnings, posting a better-than-expected revenue. As contained in the official press release, the company posted net revenue of 203.2 billion Chinese Yuan or $31 billion, representing an increase of 39.0% from the first quarter of 2020.
The company has been able to sustain its growth over the past few quarters as consumers turn to digital channels to source products as the pandemic rages. JD.com saw an increase in its total active platform users following its push to enlist new brands and sellers. Per the figures reported, the total users increased by 29.0% to 499.8 million in the twelve months ended March 31, 2021, from 387.4 million in the twelve months ended March 31, 2020.
“As we mark JD.com’s 18th anniversary, we are pleased to deliver another strong quarter of growth to kick off 2021,” said Richard Liu, Chairman and Chief Executive Officer of JD.com. “Since our establishment, JD’s focus on customers has set us apart and today we are proud that 500 million active users rely on JD’s broad selection of quality products and best-in-class customer services to support every aspect of their lives. JD is also increasingly the partner of choice for millions of businesses who benefit from our advanced supply-chain infrastructure to reduce costs and boost operating efficiency.”
Income from operations for the first quarter of 2021 came in at 1.7 billion Chinese Yuan or $0.3 billion, compared to 2.3 billion Chinese yuan for the same period last year. The company also reported diluted net income per Average Depository Shares (ADS) for the first quarter of 2021 was 2.25 yuan or $0.34, compared to 0.72 yuan for the first quarter of 2020.
Other Highlights of the JD.com Q1 Earnings Report
The company’s performance in the first quarter cuts across every aspect of its business, boosted by an increase in its Research and Development expenses by 15.1% to 4.5 billion yuan (US$0.7 billion) up from 3.9 billion yuan for the first quarter of 2020.
The company recorded increased growth activity across the majority of its business unit in its diversification push. One major example in this regard is the company’s partnership with luxury brand, LVMH Moet Hennessy Louis Vuitton SE (EPA: MC). According to the company, the “cooperation model connects Louis Vuitton directly with JD.com’s high-quality customers, providing them with access to the brand while further enhancing the luxury shopping experience on JD.com.”
Besides this, JD Health announced the launch of the Rare Diseases Care Project, with dedicated funds to spearhead this initiative alongside industry partners. These and more contributed to the boosted operating margin the firm recorded.
“As our strong growth momentum from last year continued into the first quarter of 2021, we are also encouraged by the diversification of our revenue streams with an increasing contribution from service revenues,” said Sandy Xu, Chief Financial Officer of JD.com. “JD Retail’s operating margin further expanded during the quarter, as we continue to drive stronger operating leverage through technology and innovation.”
The US-listed shares of JD.com were trading at a loss of 2.44% to $68.04 at the time of writing.