Jingdong’s (JD.com) GMV for the third quarter of 2014 was RMB67.3 billion (US$11.0 billion), an increase of 111% compared with the third quarter of 2013. Its net revenues for the third quarter of 2014 were RMB29.0 billion (US$4.7 billion), an increase of 61% YoY.
Jingdong’s net loss for Q3 2014 was RMB164.4 million (US$26.8 million) and net margin was -0.6%. Active customer accounts of JD.com increased from 22.1 million in Q3 2013 to 46.1 million in Q3 2014, an increase of 109% YoY or 21% QoQ.
GMV generated from Jingdong marketplace tripled compared to the third quarter of 2013 as Jingdong expanded their merchant base and diversified product offerings. Jingdong also improved mobile offerings on both the JD.com native app and their level-one access points on Wechat and Mobile QQ, spurring mobile orders to grow more than five times year-over-year.
Related: Alibaba’s Performance in Q3 2014
Jingdong’s Business Developments in Q3 2014
- In July, JD Finance launched crowdfunding platform “Coufenzi” to provide funding for creative business concepts. Concurrently, JD.com also unveiled several crowdfunding projects focused on the smart hardware and popular culture industries
- In August, JD.com became the first e-commerce company in China to leverage high-speed train for shipping. Six high-speed trains travelling daily between Beijing, Shanghai and Guangzhou are used to deliver JD.com’s orders, which has reduced shipping time and enhanced JD.com’s customer experience.
- In October, JD.com launched the initial phase of “Asia No.1” warehouse in Shanghai as part of an initiative to strengthen its nationwide fulfillment infrastructure. The initial phase of the warehouse, comprising total floor area of 100,000 square meters with capacity to sort up to 16,000 packages per hour, has expanded JD.com’s fulfillmentability to support its future growth
- During the third quarter of 2014, JD.com significantly enhanced its advertising platform’s mobile capabilities through its collaboration with Tencent’s advertising platform which improves the ability of JD.com vendors to target relevant audiences, particularly on Wechat and Mobile QQ, and to boost mobile traffic
- As of September 30, 2014, JD.com operated 118 warehouses with an aggregate gross floor area of approximately 2.3 million square meters, 2,045 delivery stations and 1,045 pickup stations. Jingdong delivery network covered 1,855 counties and districts as of September 30, 2014. The Company’s 211 same-day and next-day delivery program covered 130 and 815 counties and districts, respectively, as of September 30, 2014, rising from 111 and 622 counties and districts, respectively, as of June 30, 2014.
- JD.com had approximately 50,000 merchants on its online marketplace as of September 30, 2014 and a total of 62,051 full-time employees as of September 30, 2014
Jingdong expects its net revenues for the fourth quarter of 2014 to be between RMB32 billion and RMB33 billion, representing a growth rate between 59% and 64% YoY.