BEIJING, China – First quarter earnings for JD.com, China’s largest online retailer, exceeded expectations, prompting Principle Investor Zhang Jindong and Founder and CEO Richard Liu to renew the platform agreement they have with Tencent Holdings Ltd, one of the world’s most successful technology companies.
The online Chinese-based China retailer is backed by Walmart and Alphabet (parent company of Google). In a press release, Tencent Holdings said it agreed to renew because of the solid sales growth for their eCommerce sites.
JingDong said that revenues for JD.com over the past three months and ending in March rose by more than 20-percent, compared to the same time period in 2018. This represented an earnings increase of roughly 72 cents (4.96 yuan) per each share. This represents a (US) 33-cents per share increase, well ahead of its forecast of only 12-cents per share.
CEO Liu said that the company is going to focus on delivering the best and most trusted retail experience for its customers in China to drive another great quarter in sales. He also said the company will continue with their investments in key technologies and talents from top industries to reach a wider customer base using cutting-edge innovations. Liu said increased efficiency will position JD.Com to deliver strong shareholder value for many years to come.
JD.Com shares listed in the United States on the NASDAQ exchange rose 52-percent higher at the start of trading at $28.93 per share, extending the stock’s gain by 45 percent year to date.
JD.Com said the active consumer base for the company grew more than 15-percent from the previous year contributing to product revenue growth of 19 percent.
The company generated revenues of more than $16 billion, while costs for the company increased by $15.3 billion, up 20 percent. The non -GAAP operating margins improved by at least 80 basis points or 1.6-percent.
Background for JD.Com
JD.com was founded back in 2004 by Richard Liu in Beijing, China. The company is the country’s largest internet company and online retailer. It also is the largest retailer overall in terms of revenue. The company prides itself on setting the standard for online shopping through its commitment to authenticity, quality and a vast line of products. They sell everything from apparel and cosmetics to electronics and fresh food.
The company also has an unrivaled fulfillment network that provides same-day and next-day deliveries nationwide. This level of service and delivery speed to more than a billion people across the country is unmatched on a global level. Consumers in China fully recognize the company’s brand as synonymous with quality. The company has a zero-tolerance policy for counterfeits to ensure they offer their customers only the most genuine and highest of quality products.
JD.Com is also very tech-driven and offers reliable and scalable e-commerce platforms to help bring in new partners and customers in different sectors such as logistics, e-commerce, cloud computing, internet finance and smart technology. It is a partner choice for both global and local brands looking to reach consumers in China online. JD.Com offers a full suite of services to help assist companies in reaching their sales goals including help with logistics, marketing, consumer targeting, warehousing, big data analytics and financing.
The business model combines direct sales with a marketplace that limits the number of sellers. This allows the entire supply chain to be controlled in order to maintain its high-quality standards.
For more information, click on www.jd.com