Chinese E-Commerce Giant JD.com Q4 Revenue Jumps 31% Driven By Strong Growth in...

Chinese E-Commerce Giant JD.com Q4 Revenue Jumps 31% Driven By Strong Growth in Online Orders

Chinese E-Commerce Giant JD.com Q4 Revenue Jumps 31% Driven By Strong Growth in Online Orders

March 12, 2021 0:21 pm

Beijing (PingWest)- Chinese e-commerce company JD.com reported a 31% increase in fourth-quarter net revenue as the company’s gross merchandise volume remained strong growth during the period, mainly driven by the fast recovery of China’s economy from Covid-19 lockdown.

JD’s strong performance provide more evidence that China’s economy is among the world’s fastest to recover from the pandemic, buoyed by tight medical control for the virus and a rebound in consumer sentiment. Domestic consumers continue to shop online for everything from daily groceries to luxuary products.

The total revenue came in at CNY745.8 billion, beating analysts’ average estimate of CNY740.8 billion. The company’s net revenue rose 31.4% to 224.3 billion yuan in the quarter ended Dec. 31,

In 2020, JD has been working to expand its service into lower-tier cities, adding 110 million new active customer accounts during the year.

JD logistic launched a new giant warehouse in Langfang, Hebei province, near Beijing, equipped with the first automated storage and retrieval system for bulky items in Asia’s e-commerce industry, greatly improving efficiency in handling items including air conditioners, refrigerators and furniture.

In December, JD.com has partnered with the Digital Currency Research Institute of the People’s Bank of China to test the applications of the Chinese digital currency, making it the first e-commerce platform to accept China’s digital yuan for online shopping.

JD Digits, JD’s fintech affiliate, has launched a pilot program in December, under which Suzhou residents will be able to use the digital yuan to buy selected product on JD’s platform.

Digital Yuan, also known as digital currency/electric payment, is intended to be alternative to the paper currency. Like the paper currency, China’s central bank- People’s Bank of China will govern and control the supply and distribution of digital currency. It will then issue and distribute the digital currency via different commercial banks.

Looking forward, JD may face some political hurdles and uncertainties as Chinese officials placed tight scrutiny on tech giants, launching investigations on their monopoly activities.

In late December, Chinese regulators fined JD, along with Alibaba and other e-commerce sites 500,000 yuan for engaging in irregular pricing.

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