JD.com's profits fall sharply

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Chinese e-commerce giant JD.com saw its revenue rise sharply in the second quarter, but its profits took a hefty hit: - 95 %.

 

532 million active customers

JD's total turnover increased by more than 26 % to 253.8 billion yuan (nearly 35 billion euros). The revenue from services (marketplace, advertising, etc.) grew significantly more than the revenue generated by the sales of products.

 

The fall in profits is striking: the operating result dropped from 5.0 billion yuan last year to 300.8 million yuan (40 million euros) now. The 95 % drop is exclusively due to the group's side businesses, such as JD Logistics and "New businesses". JD.com's retail arm remained highly profitable, posting an operating profit of 5.97 billion yuan (780 million euros).

 

The Chinese e-commerce giant does not provide any further details on the figures. However, the company reports with a certain pride that the number of active customers has increased by more than 27 % to 532 million.