- Aug 19, 2020
JD Earnings: Is the “JAT” Era Coming?
by Vivian Yang
According to JD’s second quarter earnings report released on August 17th, the company delivered a solid financial and operating results: net revenue grew by 33.8% to USD 28.5 billion, the highest growth rate for the past 10 quarters.
The second quarter’s revenue performance is primarily led by the successful 618 Grand Promotion, the largest nationwide mid-year shopping festival initiated by JD.com 17 years ago. In the quarter, the general merchandise category registered a record high growth rate of 45%, as people continue to shop with JD online after the coronavirus period, with growing dependence on its supermarket and healthcare products.
Continued revenue growth in recent years demonstrates the unique advantage of JD’s business model based on supply chain ability and the economies of scale realized after years of investment.
By virtue of such significant revenue growth, JD is making steadily climbing up the Fortune Global 500 list. The company is ranked 102nd on the list of 2020, up by 37 places compared with last year, marking its fifth consecutive year on the list as the largest “retail and internet service” company in China, ahead of the two Chinese tech titans Alibaba and Tencent.
This has inspired Fortune magazine to coin a term, “JAT”, referring to the three most prominent Chinese technology companies, JD.com, Alibaba and Tencent, who keep on transforming and growing against all odds and uncertainty arising in the past year.
Revenue is the key measurement for the Fortune Global 500. This is believed to be a stable measurement method to reflect the overall performance of a company over a longer period of time. In addition, an overview of worldwide companies by revenue can help people get a glimpse on the rise of falls in different industries.