JD.com has trounced analysts’ estimates in its first quarter as China’s economy shows strong signs of growth following the pandemic.
The Chinese ecommerce giant saw net revenues jump 39 per cent to 203.2 billion yuan (£22.3 billion) in the three months to March 31, coming comfortably above Wall Street estimates of 191.83 yuan (£21.1 billion).
Despite this, profits from JD.com’s own operations during the period dropped 35.2 per cent to 1.7 million yuan (£187.1 million) from 2.3 billion yuan (£253.2 million).
In the 12 months to March 31 JD.com saw active users jump 29 per cent to 499.8 million, thanks to what it calls a “focus on customers”.
During the period brands including Starbucks, Decathlon, Marni and John Lobb launched flagship stores on JD.com’s platform, while luxury giant Louis Vuitton launched a “cooperation model” connecting.
“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.com chief executive Richard Liu said.
“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.”
It has become the latest Chinese commerce giant to post double digit growth, following rivals Alibaba and Pinduoduo which are seeing significant gains as China’s economy begins to emerge from pandemic-driven challenges.