JD.com Exceeds Expectations in Q3
Chinese E-commerce giant JD.com reported its Q3 revenue of CNY 134.8 billion, with a 28% growth.
On November 15, JD.com released its third-quarter financial report for 2019. During the quarter, JD achieved growth in key indicators such as revenue, profit, and the number of users.
According to the financial report, JD.com's net income was CNY134.8 billion, with a year-on-year increase of 28.7%. Non-GAAP net income attributable to ordinary shareholders rose 160.6% to CNY 3.1 billion in the quarter from CNY 1.2 billion a year ago.
The upbeat results were marked by accelerating revenue growth and record operating profit margin, said Sidney Huang, the CFO of JD.com.
It's worth noting that the external income of JD Logistics accounted for 40% of the total revenue of the logistics arm. In April 2017, JD Logistics became an independent sub-group and began to open its B2C supply chain services to customers outside JD. Since independence for more than two years, the opening up has shown results. Wang Zhenhui, CEO of JD Logistics, said in an answer to the analysts that this 40% proportion will be further increased next year, and profits will continue to increase.
Jingdong Logistics launched the 24-hour arrival plan for thousands of town, which was called '4624 Plan' internally, which means, in the 4th to 6th tier cities, the order and the delivery was completed within 24 hours.
Earlier, Wang Zhenhui said in an interview with the media of the interface news that the "4624" plan is an open strategy and the core point is to bring greater growth opportunities to the merchants it serves.
Looking forward to 2020, JD Logistics will continue to focus on the lower tier market strategy and cover and layout in those markets.
"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 Richard Liu, chairman and the chief executive officer. As of September 30, Jingdong Logistics operated more than 650 warehouses, and the total storage area of JD Logistics is about 16 million square meters.
JD.com's stock rose about 6.4% in Nasdaq's pre-market trading following the report.