JD.com, China's second largest ecommerce platform has achieved its first profitable quarter since going public two years ago, helped by Chinese consumers using mobile to shop.
A 'milestone' quarter
JD.com’s net profits made an unexpected turn, rising to CNY239m (US$35m) compared with a loss of CNY910m (US$132m) in the first quarter of last year. Gross merchandise volume increased 42% in the March quarter compared to a year ago, while annual active customer accounts grew 40% to 236.5 million in the year to March.
Mobile driving growth
China has the largest mobile shopping and mobile payment markets in the world. The proportion of orders placed through smartphones more than doubled to 81% of total orders on JD.com in the first three months of this year. Alibaba, the largest ecommerce platform in the world, also reported that 82% of its GMV was from mobile in its latest quarter.
“The strong results across the board reflect that the Chinese market is embracing our model of a high-quality online shopping experience,” said Richard Liu, chair and chief executive of JD.com.
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