Good News From JD Leads to Lift in Fair Value

Year-over-year direct sales growth of 39% was driven by home appliance, food and beverage, cosmetics, home furnishing, and baby products. Gross margin was 15.5%, an increase from 14.4% in the year-ago quarter, helped by economies of scale in procurement cost and improved monetization through better user and brand engagement. Fulfillment expenses were up 40% year over year, slightly more than net revenue of 39.2% as the group continued to expand its warehouse network. As of the end of September, JD boasted 405 warehouses comprising approximately 9 million square meters, up over 50% from a year ago. Net income from continuing operations in the quarter swung to the black at CNY 1 billion.

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