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JD.com Sees Massive Jumps In Revenue As China Remains Locked Down

Chinese supply chain-based technology and service company JD.com, Inc. on Monday (Aug. 23) reported $39.3 billion (253.8 billion yuan) in net revenue for the second quarter of 2021, up 26.2 percent from the previous year, and net service revenues of $5.3 billion (34.1 billion yuan), almost 50 percent higher than the same time a year earlier.

About $21.2 billion of that total came from electronics and home appliances, while general merchandise revenues comprised about $12.8 million. Those numbers jumped to $37.3 billion and $23.9 billion, respectively, for the first six months of 2021.

Earlier this month, China implemented a new wave of travel restrictions and quarantine orders as the country battles the increasing spread of COVID-19 and the highly contagious Delta variant. China has said it plans to keep its pandemic border restrictions in place through at least the second half of 2022.

Also read: China’s Pandemic Border Restrictions To Stay In Place

JD Retail — which encompasses online retail, online marketplace and marketing in China — was responsible for about $36.1 billion in revenue for the second quarter of 2021 and $64.8 billion for the first half of the year, while JD Logistics accounted for $4.0 billion in revenue for Q2 and $7.5 billion for the year’s first six months.

“Over the past 18 years since our founding, JD.com has always placed the interests of our customers, partners and employees foremost, while upholding our long-standing business principle of doing business the right way,” said Richard Liu, chairman and CEO of JD.com, in the company announcement, noting that the company has 532 million customers.

JD.com added more than 32 million new users in the second quarter of 2021, said Sandy Xu, chief financial officer of JD.com. “Our consistent execution and successful 618 Grand Promotion helped us add over 32 million new users in Q2, its biggest quarterly jump ever. We are also encouraged by the continued diversification of our revenue streams, reflecting our open ecosystem strategy of empowering customers and business partners through JD.com’s supply chain-based technology and infrastructure.”

Related news: Retailers Set For Another Unprecedented Holiday Season

Salesforce projected last month that retail supply chain costs will spike by more than $200 billion in the second half of this year. A shortage of shipping containers and delays at ports are key culprits in this jump compared to last year’s issues, which were focused on last-mile delivery of packages, causing more than 700 million late shipments.

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