JD releases net revenue for Q3

Chinese e-commerce giant JD reported its net revenue for the third quarter of 2019 reached 134.8 billion ($18.9 billion), an increase of 28.7 percent from the same period last year, while net profits surged 160.6 percent year-on-year to 3.1 billion yuan.

Active mobile monthly users in Sept 2019 increased by 36 percent, compared with 2018. In the third quarter, over 70 percent of new customers were from lower-tier cities.

"In particular, more and more consumers in China's fast-growing lower-tier cities are turning to JD for our superior value and service. We will continue to invest in technology and innovation to meet the growing needs of Chinese consumers and businesses for fast and reliable e-commerce and supply chain solutions," said JD Chairman and CEO Liu Qiangdong.

In September, JD officially launched its social e-commerce platform Jingxi as part of its strategy to penetrate into lower-tier cities. During the Singles Day shopping carnival, approximately 75 percent of Jingxi's new users came from lower-tier cities, and approximately 55 percent of total Jingxi users were female.

In the third quarter, JD Retail segment had net revenues of 128.7 billion yuan, an increase of 27.3 percent from the third quarter of 2018. The operating profit margin for the segment was 3.3 percent during the quarter.

JD Logistics further improved its efficiency in lower-tier cities as it continued to expand its 24-hour delivery service in these areas. It also continued to expand its third-party businesses rapidly in the third quarter with external revenues accounted for nearly 40 percent of its total revenues.

As of Sept 30, JD Logistics operated over 650 warehouses, covering an aggregate gross floor area of approximately 16 million square meters.

"JD saw excellent results for the third quarter marked by accelerating revenue growth and record operating profit margin," said Sidney Huang, chief financial officer of JD.

"Looking forward, we will increasingly benefit from the economics of scale inherent in JD's unique business model through our leading supply chain, technology and service capabilities," Huang added.