Alibaba rival JD.com achieves 40 % turnover growth

Alibaba rival JD.com achieves 40 % turnover growth

JD.com’s third quarter turnover grew 39.2 % compare to the year before. The Chinese company, partially owned by American Walmart, also became profitable this time around.

“Solid growth”

The site’s third quarter turnover reached 83.7 billion yuan (10.8 billion euro), up 39.2 %. Gross profit jumped 50.3 % to 13 billion yuan (1.7 billion euro) and there was still a 1 billion yuan (130 million euro) net profit left. Only a year ago, the online retailer suffered a 500 million yuan (65 million euro) loss.

 

We are very encouraged to see another quarter of solid top line growth with record profitability,” said Sidney Huang, JD.com’s Chief Financial Officer. “Looking ahead, we will continue to prioritize investments in technology and leading R&D talent as we execute on our vision to revolutionize China’s retail industry.”

 

Singles’ Day

JD.com forecasts another 35 to 39 % turnover increase for the current quarter. The fourth quarter is extremely important to Chinese online players, because of Singles’ Day on 11 November. On that one day, JD.com generated a 127.1 billion yuan (16 billion euro) turnover. Its major competitor, Alibaba, topped that with a 22 billion euro turnover, easily shattering its own previous record.