China-based JD.Com Inc (ADR) (NASDAQ:JD) delivered better than expected earnings, as well as, the revenue for the fourth quarter. The results indicated the continued strength in the consumer spending as Alibaba Group Holding Ltd (NYSE:BABA)’s fourth quarter numbers illustrated earlier. However, economists and analysts were concerned that China’s economic activity was witnessing a slowdown thus hurting different economic parameters.
GMV Jumps In 4Q
JD.Com Inc (ADR) (NASDAQ:JD) reported that its gross merchandise value (GMV) jumped 69% to RMB145.3 billion in the fourth quarter. Excluding Paipai.com contribution, the growth would have been 79% on YOY basis to RMB143.2 billion. The core gross merchandise value also jumped 84% on a YOY to RMB446.5 billion while core GMV advanced 84% YOY to $68.9 billion or RMB 446.5 billion.
In the fourth quarter, the Chinese biggest online retailer’s revenue jumped 57% while net revenues from services, as well as, others were RMB 4.7 billion representing a jump of 101% from the year-ago quarter. Its CEO, Richard Liu, said that the company’s strong moment continued with one more period of solid growth in the December quarter. He said that the middle class consumers in China demanded better quality brands, as well as, authentic products. Still, the company has been effective in winning more customers with the launch of the convenient and reliable online shopping experience. He said that the focus would be to earn the Chinese trust while creating an alliance with top brands.
JD.Com Inc (ADR) (NASDAQ:JD) reported a net loss of RMB 7.6 billion due to the impairment charges of Paipai.com while the adjusted net loss was RMB 656.2 million. Its adjusted loss per share was seven cents a share while GAPP loss per share was 86 cents. Its net revenues jumped 57% to RMB54.6 billion or $8.4 billion. Wall Street analysts expected the company to suffer a loss of 12 cents a share and RMB 51.9 billion revenue in the fourth quarter.
JD.Com Inc (ADR) (NASDAQ:JD) indicated that its customer accounts from core business jumped 71% to 155.0 million from 90.6 million in 2014. Its active customer accounts also witnessed a jump of 70% to 153.6 million.