Chinese etailer JD.com returns to profit as sales climb

The online retailer recorded operating income of $330.2m (£273.8m) in the three months to June 30, compared with a loss of $147.1m (£122m) during the same period the previous year.

The Chinese retailer’s net revenue rose 22.9% year on year to $21.9bn (£18.1bn), slightly ahead of analyst expectations.

JD.com, which held its annual 6.18 shopping festival during the period, increased its number of active customers to 321.3 million in the year to June 30, compared with 310.5 million in the 12 months to the end of March.

During the period, the Chinese etailer bolstered its luxury brand portfolio as it partnered with Prada alongside a total of 20 other high-end brands ranging from Sandro to Mulberry.

The online retailer also bolstered its membership scheme, JD Plus, by forging partnerships with 19 international hotel brands to offer users exclusive discounts at 15,000 hotels internationally from brands including Intercontinental and AccorHotels.

Chairman and chief executive Richard Liu said: “Highlighted by our successful June 18 anniversary Sales event, JD’s strong performance in the second quarter further demonstrated the resilience of our superior business model in a highly competitive industry.”

Chief financial officer Sidney Huang added: “JD.com delivered robust growth in the second quarter across our key metrics of revenue, profitability, cashflow and customer base.

“Our economies of scale and innovative technologies are driving operating efficiency and further strengthening our business model. Looking ahead, we will continue to invest in user experience and our talented workforce to further grow the business and create value for all of our stakeholders.”