Chinese e-commerce giant JD.com announced on August 23 its revenues for the second quarter increased 5.4 percent to RMB 267.6 billion (USD 40 billion), on the back of strong sales growth during its annual 618 Grand Promotion sale.
The Beijing-headquartered company said net product revenues increased by 2.9 percent, while net service revenues increased by 21.9 percent for the second quarter of 2022, as compared to the same period of 2021.
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“We were pleased to post topline growth that outpaced the industry during a challenging period, as well as healthy profitability and cash flow,” said Sandy Xu, Chief Financial Officer of JD.com. “Our emphasis on financial discipline and operational efficiency has allowed us to return to shareholders in the form of share repurchases as well as a special cash dividend issued during the quarter. We will continue to focus on generating strong shareholder returns while maintaining our commitment to investing for the long term.”
During the 618 sales, the company said it recorded increases in transaction volume of over 500 percent year-on-year. Certain omni-channel businesses of retail chains including Walmart, China Resources Vanguard (CR Vanguard), and Yonghui increased transaction volume in aggregate by over 660 percent year-on-year during the sale.
For the three months ending June 30, JD.com’s cost of revenues increased by 4.3 percent to RMB 231.7 billion (USD 34.6 billion, from RMB 222.1 billion for the second quarter of 2021.
As a result, net income attributable to ordinary shareholders for the second quarter was RMB 4.4 billion (USD 0.7 billion), compared to RMB 0.8 billion for the same period last year. Diluted net income per ADS for the second quarter was RMB 2.74 (USD 0.41), compared to RMB 0.50.
“JD.com’s resilient business model, industry-leading supply chain capabilities and efficient operations helped us deliver solid quarterly results amidst ongoing challenges in the external environment,” said Lei Xu, CEO of JD.com. “We are encouraged to see our commitment to providing the best possible user experience while supporting local communities and enterprises across China translates into increased mindshare, stronger user engagement and expanding user base, especially in our core JD Retail business. We will continue to serve our business partners, customers and society effectively through our supply chain-based infrastructure while innovating to support China’s long-term growth.”