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JD.com boosts net revenues by 44% in Q2 as battle with Alibaba heats up

JD.com posts robust second quarter results

JD.com has grown net revenues by 44% in the second quarter of 2017 to reach $13.7bn, as the ecommerce company continues to step up its battle against rival Alibaba.

China’s largest retailer and its second largest ecommerce company reported a 46% increase in gross merchandise (GMV) which reached $34.6bn.

However, JD.com posted net loss of $73m, which was attributed to increased traffic acquisition costs, marketing expenditure and warehousing and delivery expenses.

JD.com’s annual active customer accounts reached 258.3 million for the year ending June 30, up from 188.1 million for the corresponding period, while fulfilled orders grew by 41% to reach 591.2 million, with 80% of total orders placed through mobile devices.

Richard Liu, chairman and CEO of JD.com, said in a statement, “JD’s growing strength as China’s largest retailer continues to position us to capture new and expanding market opportunities,”

“As we broaden our range of offerings, including a rapidly growing roster of top international brands, our customer base continues to expand, with female shoppers becoming an increasingly active user base. Looking forward, as JD’s smart technologies and big data help us revolutionize the online shopping experience, our ‘retail as a service’ initiative will further extend the capabilities of our platform to partners throughout China.”

JD.com’s chief financial officer Sidney Huang, said, “In the quarters ahead, we will continue to prioritize investment in our technology-focused initiatives, which are already redefining China’s retail landscape.”

The results follow the company’s best quarter in Q1, which saw JD.com post a profit for the first time. JD.com now controls 33.8% of China’s B2C ecommerce market, behind Alibaba’s Tmall which boasts 48.5% market share, according to figures from iResearch China.

It also follows a period of increased collaborative activity, which saw the retailer partner with luxury ecommerce site Farfetch, expand its partnership with grocery giant Walmart and ink a strategic deal with internet giant Baidu.

JD.com also posted record sales figures of $17.6bn for its annual 6.18 shopping festival – putting it just behind rival Alibaba’s Singles Day sales which topped $17.8bn.

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