JD.com reports improved GMV in Q1, net revenues up 47 percent

JD.com net revenues were 54 billion Chinese yuan (8.4 billion dollars), an increase of 47.3 percent for the quarter ended March 31, 2016. Revenues from services and others, mainly from the company's e-commerce platform business were 4 billion Chinese yuan (0.6 billion dollars), an increase of 91 percent.

“We had a solid first quarter of the year with healthy growth in revenues, new users and mobile traffic,” said Richard Liu, Chief Executive Officer of JD.com, adding, “JD.com's commitment to authenticity and unwavering focus on the best user experience continue to win the trust of China's growing middle class, helping us to once again outperform the industry.”

First quarter business highlights

GMV for the first quarter increased by 55 percent to 129.3 billion Chinese yuan (20.1 billion dollars). Loss from operations was 864.9 million Chinese yuan (134.1 million dollars) compared to 822.6 million Chinese yuan for the same period last year. Non-GAAP loss from operations was 295.7 million Chinese yuan (45.9 million dollars), compared to 318 million yuan for the first quarter of 2015.

Annual active customer accounts increased by 73 percent to 169.1 million in the 12 months ended March 31, 2016, excluding unique customers from Paipai.com.

Net revenues from online direct sales increased by 45 percent, while net revenues from services and others increased by 91percent, primarily due to the increased revenues from the Company's rapidly expanding online marketplace, advertising services and third-party logistics services.

Recent business developments at JD.com

JD.com established partnerships with a number of leading international brands during the quarter to meet the fast-growing demand from Chinese consumers for high-quality, authentic imported products, and help the brands expand their presence in China. Germany's Tom Tailor Group launched its first Chinese online store on JD Worldwide in March, and Japan's Kao Group also signed a strategic cooperation agreement with JD Worldwide.

In April, JD Mall launched a dedicated platform for home furnishings to connect leading international brands with Chinese consumers. The initiative kicked off at Milan Design Week 2016, with the Company hosting a special furniture and interiors exhibition that showcased the best of Chinese and Italian design.

In April, JD.com completed the merger of its O2O business, JD Daojia, with Dada Nexus, China's largest crowdsourcing delivery platform, to form a new company. By leveraging the extensive combined crowdsourcing networks of Dada and JD Daojia, the new company will provide low-cost delivery services to China's retailers, service providers and O2O enterprises, with increased efficiencies, under the Dada brand.

Net revenues for the second quarter of 2016 are expected to be between 64.2 billion Chinese yuan and 66.2 billion Chinese yuan, representing a growth rate between 40 percent and 44 percent compared with the second quarter of 2015.

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