THE WHAT? JD.com has announced its results for the first quarter of fiscal 2020. The Chinese tech and e-commerce behemoth saw revenues climb 20.7 percent year-on-year in the three months to March 31, 2020, to RMB146.2 billion.
THE DETAILS Income from operations nearly doubled from RMB1.2 billion in the equivalent period in 2019 to RMB2.3 billion in Q1 2020. However, net income attributable to ordinary shareholders fell considerably, down from RMB7.3 billion in 2019 to RMB1.1 billion and diluted EPS was RMB0.72 compared to RMB4.96 in the same period last year.
“We are proud that JD.com has been able to remain fully operational throughout the COVID-19 outbreak, and our employees are proud of the contributions JD continues to make towards building a more productive and sustainable society,” said Richard Liu, Chairman and Chief Executive Officer of JD.com. “Strong user growth during the first quarter reflects consumers’ increasing reliance on JD.com to support every aspect of their lives, and confidence in our commitment to providing a broad selection of quality products and best-in-class services.”
“JD’s resilient business model helped drive solid top and bottom-line results for the quarter that exceeded our expectations,” said Sidney Huang, Chief Financial Officer of JD.com. “We are also pleased to see an accelerating increase in user engagement, demonstrating our strengthened brand image and expanded consumer mindshare. Throughout the COVID-19 outbreak, JD has implemented disciplined financial control policies while providing undisrupted and timely services to consumers. We will continue to invest in technology and customer experience to support our future growth.”
THE WHY? One of the few businesses permitted to trade throughout the lockdown, JD.com hasn’t suffered on the revenue front and indeed, is predicting a similar 20-30 percent rise in the second quarter also.