CEO Richard Liu held an earnings call for Q3 2020 on November 16, and much of what he said was positive. The following highlights show that JD.com has seen substantial growth in the past quarter and year.
JD.com’s Customer Growth Leads to Positive Revenue Growth
JD.com saw strong revenue and income growth, thanks largely to an increase in its Chinese customer base. The numbers show that Richard Liu has led the company well, even in light of the economic uncertainties that businesses around the world have faced during the past few months.
Under Richard Liu’s leadership, JD.com increased Q3 total net revenues by 29.2 percent when compared to last year. Q3 2020 net revenues came in at ¥174 billion ($25.7 billion), which included ¥58.1 billion ($8.6 billion) in net general merchandise revenues and ¥22.8 billion ($3.4 billion) in net services revenues. Each of these latter figures represents at least a 33-percent year-over-year increase.
Richard Liu also reported that diluted net income power ADS grew to ¥4.70 ($0.69), which is also almost 10 times higher than last year’s.
Undergirding much of this growth was a substantial increase in JD.com’s customer base. Active customer accounts were reported to be 441.6 million, which is a 32.1-percent increase from Q3 2019. Part of this company-wide customer growth included an increase in JD PLUS customers. The service now has over 20 million regular subscribers.
JD Retail Launches New Partnership
In addition to growing its JD PLUS subscribers, JD Retail also launched several new partnerships in the last quarter.
The most notable of these partnerships is an agreement with Trip.com to combine the site’s services with JD.com’s customer reach. Trip.com is the largest travel agency website in China, and an agreement with the site will allow JD.com to offer customers transportation, tour and accommodation bookings.
Other partnerships include arrangements with several global luxury brands. Zenga, Yahi Yamamoto, Golden Goose Deluxe, Ankah, Ami Paris and Rimowa are a few of the companies and designers who will sell products through JD Retail.
JD Logistics Launches New Supply Chain Management Solutions
JD Logistics further expanded its supply chain management capabilities in the last quarter through a new partnership, new facility and new technology service.
Together with Nestle, JD Logistics opened a smart facility for large-scale distribution and storage. The facility is located in Tianjin, and it’ll play a critical role in the supply chain used to deliver Nestle products to JD.com customers throughout China. In addition to this facility, JD.com now has more than 800 warehouses.
In October, JD Logistics also launched a new JDL Technology at the division’s annual Global Smart Supply Chain Summit. The technology will utilize JD Logistics’ extensive capabilities to help clients with big data, internet of things and robotic technology supply chain solutions.
JD Health Launches New Centralized Service
JD Health launched a new centralized system in August, and the system should improve both care and convenience. JD Family Doctor is a telemedicine service that brings together all medical services offered by JD Health. Patients can use the platform to access primary care appointments, referrals and specialist consultations, among other things.
JD Awarded with Environmental Accolade
Along with the increase in revenues, customers and services, Richard Liu was also proud to report that JD.com has been awarded the Sustainable Retailing Initiative of the Year Award. The award was given in recognition of all that JD.com’s Green Stream initiative has accomplished.
Green Stream was launched in 2017 with the goal of making JD.com’s practices more environmentally friendly. It includes transitioning to new energy vehicles, transitioning to recyclable particles and using a paperless system. Thus far, the initiative has successfully eliminated 1.3 million tons of disposable packaging materials.
Richard Liu Has JD.com Ready for More Growth
The Q3 2020 earnings call shows that Richard Liu has successfully led JD.com through the uncertainties of the recent three months. With strong growth in many areas and new developments throughout the company, he has JD.com poised well for the upcoming quarter as well.