JD.com profits soar as retail business booms during lockdowns

The Chinese technology giant said income from its operations jumped 36.7% to ¥12.3bn (£1.4bn) during the year to December 31, 2020. Net revenues during the period advanced 29.3% year on year to ¥745.8bn (£81.9bn).

JD.com’s retail division delivered an operating profit of ¥19.5bn (£2.1bn), surging 41.4% on 2019 levels. The gains were driven by a 27.3% uplift in retail sales to ¥702.9bn (£77.2bn).

During the fourth quarter of 2020, JD.com said income from its operations increased 12.4% to ¥594.9m (£65.4m), as net revenues jumped 31.1% to ¥224.3bn (£96.3bn).

The ecommerce titan said its top line was boosted by the addition of “multiple” fashion and luxury brands launching flagship online stores on JD.com.

New partners included Vivienne Westwood, Italian luxury brand Stefano Ricci, Hermès Group’s shoe brand John Lobb and Japanese streetwear label White Mountaineering.

JD.com has also started working with its retail partners on more “omnichannel” initiatives. Pilots with Prada and Miu Miu allow shoppers on JD.com’s platforms to access a wider range of the brands’ products, including items from their physical stores.

JD.com said the initiatives have helped the brands “improve the operational efficiency and inventory management capability” of their physical stores.

JD.com chair and chief executive Richard Liu said: “JD saw accelerated revenue and user growth during the fourth quarter driven by our long-term operating philosophy and customer-centric value proposition despite the ongoing market challenges.

“During this quarter, JD continued its strategic transformation into a supply chain-based technology and service company with increasingly diversified sources of revenues. With a strong momentum going into 2021 and with our recently optimized organizational structure, JD will continue to invest in innovative, high potential businesses to drive long-term sustainable growth.”