China’s second-largest B2C e-commerce company JD.com has posted mixed results for the year ending 31 December 2015.
Net revenue increased 58 per cent to Rmb181.3bn (US$28bn) due to more active customers and more orders fulfilled, though higher operating costs saw JD’s loss increase from Rmb5bn in 2014 to Rmb9.4bn in 2015.
“China’s middle class consumers increasingly demand quality brands and authentic products, and we have been very effective at winning over more customers by introducing them to the most reliable and convenient online shopping experience inChina,” Richard Liu, CEO of JD.com said in a company statement.
“We will remain focused on earning the trust of China’s consumers, while building partnerships with top brands which value JD.com’s high-quality user base, reputation for authenticity and unrivalled fulfillment capabilities.”
This past year has seen JD.com partner with sports brand Li-Ning, host a runway show at New York Fashion Week, and extend its warehousing space in China.
More recently, JD.com's O2O platform JD Daojia formed a strategic partnership with leading retailer Yonghui to provide 2-hour delivery services for customers in five cities.
“We look forward to another year of solid growth as the sustained expansion of the middle class inChinabrings many more consumers to JD.com,” added Sidney Huang,JD.com'sCFO.
In coming years, JD.com has said it will focus on high-growth business initiatives while improving the profitability of its core business.
Daiwa Capital markets analyst John Choi told SCMP that JD.com would likely invest in increasing staff, as well as look at building a nationwide cold chain network to support its growing online-to-offline business with retailers.
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