Both Alibaba and JD, two of the biggest eCommerce companies from China released their fiscal reports in 1st quarter of 2016. How were their performances during the first quarter of 2016? How are they competing with each other? Below are the highlights:
Gross merchandise volume (GMV)
GMV for Alibaba was RMB742 billion (US$115 billion), an increase of RMB142 billion (US$22 billion), or 24% year-over-year, with mobile GMV accounting for 73% of total GMV;
For JD, the GMV for the first quarter of 2016 increased by 55% to RMB129.3 billion (US$120.1 billion) from the core GMV (excluding Paipai.com) of RMB83.6 billion in the first quarter of 2015.
Alibaba’s net income rose 85 percent to 5.3 billion yuan, just shy of the 5.4 billion-yuan average of estimates.
On the other hand, JD’s net loss in the first quarter widen to 909.8 million yuan, from 710.2 million yuan the previous year. Higher operating expenses is one major reason.
Annual active buyers
Annual active buyers on Alibaba’s China retail marketplaces increased to 423 million, an increase 21%, while it was around 350 million in Q1 2015.
Meanwhile, JD’s annual active customer accounts increased by 73% to 169.1 million in the 12 months ended March 31 from 97.8 million in the 12 months ended March 31, 2015, excluding unique customers from Paipai.com.
What they says
“Our excellent results this quarter reflect the unique strength of our core e-commerce business despite challenging economic conditions. As a result, we achieved accelerating year-over-year revenue growth of 39%, which was the highest revenue growth rate for the past four quarters.”
–Maggie Wu, Chief Financial Officer of Alibaba Group
“We had a solid first quarter of the year with healthy growth in revenues, new users and mobile traffic. JD.com’s commitment to authenticity and unwavering focus on the best user experience continue to win the trust of China’s growing middle class, helping us to once again outperform the industry. With our growing reputation as China’s leading online retailer and more top brands discovering the value of partnering with JD.com, we are very excited about the opportunities ahead.”
— Richard Liu, Chief Executive Officer of JD.com
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