JD Earnings: Q1 Net Service Revenues up 73% YOY

by Martin Li

JD witnessed a 73% year-on-year growth in net service revenues in the first quarter of this year, according to the earning results released on May 19.

The company's net service revenues reached RMB 203 billion yuan.

'This is mainly driven by the triple-digit year-on-year growth of JD Logistics' external revenue and over 60% year-on-year growth of our advertising revenues in Q1,' said Sandy Xu, CFO of JD.com, on the earnings call.

'As a result, net service revenues contributed 13.7% of total revenues in Q1, up from 11.0% a year ago and 10.3% in Q1 2019, boding well for our diversifying revenue growth potential,' said Xu.

JD Logistics' revenues reached RMB 22 billion yuan in Q1, with year-on-year growth accelerated to a historical high of 64% from 34% in Q1 2020. It currently operates over 1,000 warehouses with an aggregate gross floor area of approximately 22 million square meters.

'It's also worth highlighting that we continued to generate operating efficiency and further shortened our inventory turnover days to 31.2 days in the last twelve months, while we expanded the total number of SKUs directly managed by us under the 1P model, which exceeded 8 million in Q1 2021,' said Xu.

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