JD.com reports slowest Q1 growth in its history
JD.com has reported its slowest revenue growth on record over its first quarter as it struggles to find new customers in its home market.
The Chinese ecommerce giant saw net revenues grow 21 per cent, with revenues hitting 121.1 billion yuan (£13.8 billion), edging just ahead of analyst expectations.
Despite this marking the lowest Q1 revenue growth in its history, its net income shot up to 7.3 billion yuan (£850 million) from 1.5 billion yuan (£167 million) in the first quarter of 2018.
Its annual active customer base also increased from 305.3 million in the year ending December 2018, to 310.5 million in the year ending March 31 2019, while quarterly active customer accounts rose 15 per cent.
This comes amid a period of restructuring at JD.com as, like its key rival Alibaba, it aims to increase its international user base to offset hampered growth in its home market, while also reaching out to more rural Chinese markets with its delivery programmes.
In April reports also emerged that the tech behemoth was planning to layoff around eight per cent of its workforce, amid numerous high-level departures and further reports of low moral.
In an earnings call on Friday, JD.com executive said that the staff cuts had been “overinterpreted”, denying reports of widespread layoffs.
For the current quarter JD.com expects revenues of 145 billion and 150 billion yuan (£16.23 billion and £16.79 billion), meaning it is likely to top analysts’ forecasts of 145.69 billion (£16.3 billion).