JD.com 2021 Q2 earnings summary
On the evening of August 23, JD.com announced its second quarter and interim results for 2021. In the second quarter, JD’s revenue was 253.8 billion yuan, a year-on-year increase of 26.2%. However, its operating profit and net profit attributable to ordinary shareholders dropped significantly from the same period last year. As of the end of the second quarter, JD’s annual active users had increased to 532 million, an increase of 115 million over the same period last year; the total number of employees had increased by nearly 120,000 over the same period last year.
After the release of the second quarterly report, JD.com's US stocks rose by more than 3% at the opening, fluctuated in the middle, and closed up 3.32% to $65.73.
JD Group’s interim results announcement showed that the operating profit for the second quarter of 2021 was 300 million yuan, a decrease of 94% from the 5 billion yuan in the same period last year; the net profit attributable to ordinary shareholders was 794 million yuan, down by 95% compared with 16.4 billion yuan in the same period last year.
As for the reason for the decline in profits, JD.com explained that it was due to the expansion of employment scale, employee compensation and benefits, continuous investment in technology research and development and infrastructure, as well as the benefit of partners and consumers.
The number of JD users maintained rapid growth. The number of annual active users (customers who purchased at least once within 12 months) increased from 417.4 million on June 30, 2020 to 531.9 million on June 30, 2021, a year-on-year increase of 27.4 %. However, compared with users of Alibaba and Pinduoduo, JD still has a gap. According to the financial report released by Alibaba not long ago, the number of Alibaba's domestic annual active users was 811 million. The first quarter financial report of Pinduoduo showed that as of March 31, 2021, the number of annual active buyers of Pinduoduo reached 823.8 million.
The business of JD Group can be divided into three parts, namely JD Retail, JD Logistics and New Business. From the revenue structure of the business segment, JD Retail is the core business, contributing 232.6 billion yuan in revenue in the second quarter, with operating profit close to 6 billion yuan. JD Logistics operating income is 26.1 billion yuan, with a loss of 357 million yuan. JD New business operating income is nearly 7 billion yuan , with loss over 3 billion yuan.
Source: China Fund News
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