Nov 16, 2020|

JD Executives on Q3 2020 Earnings Call Highlights


by Ella Kidron

JD reported third quarter 2020 earnings on November 16th. The full press release is available here and an infographic is below:

JD reported third quarter 2020 earnings on November 16th. The full press release is available here and an infographic

On the call to discuss the results, Sandy Xu, CFO of, emphasized JD’s strong user growth, driven by the company’s continued ability to win trust and recognition from more and more consumers. Ms. Xu mentioned that lower-tier cities contributed about 80% of total new users for the quarter. She also emphasized increased consumer loyalty, highlighting that JD’s premium membership program, JD PLUS, exceeded 20 million members.

Net service revenues, driven largely by performance of JD Logistics (JDL) were a highlight for the quarter. Zhenhui Wang, CEO of JD Logistics, said that JDL saw accelerated growth in Q3, attributed to its long-term commitment to the improvement of user experience. He emphasized that JDL’s value proposition is to provide the best user experience driven by technology. No matter whether it is during COVID-19 or normal circumstances, JDL always ensures to provide the best supply chain services, which is a key reason why brands choose to cooperate with the company.

As far as the e-commerce landscape overall, Mr. Lei Xu, CEO of JD Retail emphasized that under COVID-19 the overall growth of e-commerce has been rapid. He further stressed the importance of healthy user growth, mentioning that when users who have already been educated on other platforms become more frequent online shoppers, they will shift to a platform which emphasizes services and quality. Commenting on JD’s approach to users and the company’s use of livestreaming, Mr. Xu mentioned that JD advocates for “rational consumption” as opposed to impulsive, and that he sees livestreaming continuing to develop as a resource for more professional information about products, fitting JD user demand. Looking at the supermarket category, which has been a key growth driver for JD, with online supermarket JD Super, Mr. Xu emphasized the group’s leadership in omnichannel. He mentioned that the system is performing well and is well-received by brand partners.

JD Chief Strategy Officer Jon Liao focused on the creation of a healthy ecosystem in which JD and partners can continue to co-create.

Looking at the results as a whole, Ms. Xu highlighted that the results were, “driven by our unique business model and operating philosophy. But more important, JD’s resilience is underpinned by our relentless focus on offering trust value for our consumers, and unreserved empowerment of our business partners through technology and infrastructure.

Note: For all material above, please refer to the Safe Harbor statements in the press release