THE WHAT? JD.com reported robust top-line growth and record earnings for the fourth quarter of fiscal 2019. The tech company also announced the planned retirement of its CFO, Sidney Huang, in September.
THE DETAILS The online sales platform saw revenue swell 26.6 percent in the three months ended December 31, 2019 to RMB170.7 billion, while income hit RMB529.5 million compared to a net loss of RMB938.9 million in the same period a year before.
And despite the ongoing coronavirus crisis, the e-commerce operator predicted a 10 percent rise in revenue for Q1 2020. CEO Richard Liu explained, “Since late January, we’ve spared no effort in the fight against COVID-19 in China. Our leading supply chain and logistics network have been called upon to address unmet needs across China. We’ve been ensuring consumers’ livelihoods while partnering with public institutions to ensure access to emergency supplies. In Hubei, the epicenter of the outbreak, we have been providing medical supplies and facilitating relief organizations to maintain continuous supply to hospitals, in addition to rolling out a suite of innovations across our business to help the country. All of us at JD will continue working around the clock to help Chinese consumers, merchants and communities get through this challenging time.”
The company also announced that CFO Sidney Huang is due to retire in September, 2020. He will serve as a Senior Consultant to the company following his retirement. Sandy Xu, currently SVP of JD.com and CFO of JD Retail will succeed Huang – the handover will commence in June.
THE WHY? Growth was particularly strong in China’s lower tier cities thanks to innovative marketing and improved customer service. Sidney Huang, commented, “The year 2019 sets a new milestone in our corporate history with record earnings and excellent cash flow on an annual basis as our continued investments in infrastructure and technology began to yield solid financial results. Our vertically integrated e-commerce model, resilient self-built logistics network and high level of consumer trust allow us to continue serving consumers effectively now and in the long term.”