JD.com, China’s largest retailer and second biggest e-commerce company, has reported a 39% increase in revenues to RMB 83.7bn ($12.6bn) for the third quarter of 2017.
The results revealed JD.com posted net income of RMB 1bn ($200m), which is the company’s highest ever quarterly profit. Gross profit for the three months ending September 30 was RMB 13bn ($2bn), a 50% increase over Q3 2016.
JD.com’s annual active customer accounts increased 34% to 266.3 million from 198.7 million in September 2016.
The strong result led to a boost in the company’s shares, which increased by 5% in the hours after the results announcement.
The results also come hot on the heels of the company’s record sales for the Singles Day shopping extravaganza, which saw JD.com report RMB127.1bn ($19.1bn) in sales, up more than 50% on the previous year.
Richard Liu, chairman and CEO of JD.com, said: “We are achieving our mission of bringing China’s consumers the widest selection of top brands and, by far, the highest quality e-commerce experience.
“We are also building robust product content and enhancing user engagement, as our innovative tools enable brands to execute highly targeted online marketing programs. We look forward to helping more and more merchants and partners leverage JD’s leading open infrastructure to drive efficiency and grow sales.”
The results add to a strong year for the e-commerce giant which has seen the company post a profit for the first time, along with strong quarterly results in Q1 and Q2. It also posted a record-breaking $17.6bn in sales during its annual 6.18 shopping festival.
This year JD.com has inked a number of partnerships and collaborations this year, including strategic deals with luxury e-commerce site Farfetch and grocery giant Walmart.
The moves are part of a broader strategy by JD.com to step up its competition with rival Alibaba. This year JD.com increased its share of China’s B2C e-commerce market to 33.8%, however it still has a way to go to catch Alibaba’s Tmall, which controls 48.5% market share.