JD.com active customers increased by 25% to 387 million in Q1 2020

JD.com net revenues for Q1 2020 were 146.2 billion yuan (US$120.6 billion), an increase of 20.7% from Q1 2019, according to its unaudited financial results. JD.com’s annual active customer accounts increased by 24.8% to 387.4 million JD.com stock jumps after profit and revenue beat expectations. Net revenues from the sales of general merchandise products for […]

JD.com active customers increased by 25% to 387 million in Q1 2020

JD.com net revenues for Q1 2020 were 146.2 billion yuan (US$120.6 billion), an increase of 20.7% from Q1 2019, according to its unaudited financial results. JD.com’s annual active customer accounts increased by 24.8% to 387.4 million

JD.com stock jumps after profit and revenue beat expectations.

Net revenues from the sales of general merchandise products for Q1 2020 were 52.5 billion yuan (US$7.4 billion), an increase of 38.2% from Q1 2019. Net service revenues for Q1 2020 were 16.1 billion yuan (US$2.3 billion), an increase of 29.6% from Q1 2019.

Income from operations for Q1 2020 was 2.3 billion yuan (US$0.3 billion), compared to 1.2 billion for the same period last year.

Non-GAAP income from operations for Q1 2020 was 3.3 billion yuan (US$0.5 billion) with a non-GAAP operating margin of 2.2%, as compared to non-GAAP income from operations of 2.0 billion for Q1 2019 with a non-GAAP operating margin of 1.6%.

Net income attributable to ordinary shareholders for Q1 2020 was 1.1 billion yuan (US$0.2 billion), compared to 7.3 billion for the same period last year. Non-GAAP net income attributable to ordinary shareholders for Q1 2020 was 3.0 billion yuan (US$0.4 billion), compared to 3.3 billion for the same period last year.

Diluted net income per ADS for Q1 2020 was 0.72 yuan (US$0.10), compared to 4.96 for Q1 2019. Non-GAAP diluted net income per ADS for Q1 2020 was 1.98 yuan (US$0.28), compared to 2.23 for the same period last year.

Annual active customer accounts increased by 24.8% to 387.4 million in the twelve months ended March 31, 2020 from 310.5 million in the twelve months ended March 31, 2019. Mobile daily active users4 in March 2020 increased by 46% as compared to March 2019.

Related: Alibaba launched Tmall Luxury Soho, targeting Gen-Z luxury shoppers

JD Retail

In February 2020, JD.com rolled out a series of measures to support agricultural producers who had been significantly impacted due to transportation disruptions amid the COVID-19 outbreak.

Leveraging JD’s strong capabilities in supply chain and logistics, together with its marketing resources including themed live streaming events and high-traffic “lightening sales channels”, JD provided one-stop solutions to connect agricultural merchants with its expansive customer base.

In April 2020, JD.com also launched a promotion to drive sales of specialty products from Hubei province, the epicenter of the outbreak, including crawfish, rice and lotus root.

In the first quarter, in response to the COVID-19 outbreak, JD Retail hosted online product launch events for leading smartphone brands including Huawei, Xiaomi, and Samsung.

To further support the phone manufacturing industry amid the outbreak, JD Retail has provided comprehensive online consultations for nearly one million customers who are unable to visit physical stores for phone purchases and repairs.

JD.com continued to attract premium brands to its e-commerce platform welcoming around 20 luxury brands on JD since the beginning of January.

The world’s oldest fine leather goods house Delvaux, Italian fashion brand MSGM, Canadian prestigious contemporary outerwear brand MACKAGE, as well as Canadian backpack brand Herschel Supply all launched flagship stores on JD.com in the first quarter.

On April 24, 2020, the company entered into definitive agreements for the non-redeemable series A preferred share financing of JD MRO with investors including GGV Capital, Sequoia Capital China and CPE, among others.

The total amount expected to be raised is US$230 million, representing 10.7% of the equity interest of JD MRO on a fully diluted basis, subject to closing conditions.

JD MRO, a subsidiary of JD.com and a sub-division of JD Business service unit, operates an e-commerce platform that specializes in industrial maintenance, repair and operations (“MRO”) products and services, and provides intelligent purchasing platform and supply chain solutions for corporate customers.

China’s retail sales dropped by 19% in Q1 2020

JD Health

JD Health launched Android and iOS versions of its flagship app in March, offering pharmaceutical and healthcare products and services, including online sales of medicines and medical devices, online medical and psychological consultations, healthcare management services, and special channels for purchasing COVID-19 control and prevention supplies.

Since launching in late January, JD Health’s free online medical consultation services had handled over 11 million requests as of April 30.

It launched a Chronic Disease Medical Information Sharing Platform for Hubei province to help respond to medicine shortages, partnering with Peking University Sixth Hospital, the nation’s leading mental health institution, to launch an online psychological consultation platform, and helping facilitate the digital transformation of virus prevention systems for various institutions, hospitals and enterprises.

JD Logistics

In Q1 2020, JD Logistics launched its “Mobile Fresh Basket” community initiative in nearly one hundred cities in China to provide users with fresh produce from local agricultural producers.

JD Logistics also expanded its on-demand service to deliver a wide range of medical products including medicines and insulin, as well as traditional Chinese herbal medicine through partnerships with leading traditional Chinese medicine companies, pharmaceutical corporations, and hospitals.

It also teamed up with local primary and middle schools and other training institutions to distribute educational books and learning materials to students studying at home due to school closures.

As of March 31, 2020, JD Logistics operated over 730 warehouses, which covered an aggregate gross floor area of approximately 17 million square meters, including warehouse space managed under the JD Logistics Open Warehouse Platform.

JD Property

After the successful completion of the first logistics properties fund (“Core Fund”), in January 2020, JD Property Management Group (“JD Property”) established its second logistics properties fund (“Core Fund II”) with GIC, the Singapore sovereign wealth fund, and entered into an agreement to dispose of certain logistics facilities to Core Fund II for a total gross asset value of RMB4.6 billion.

The majority of the proceeds are expected to be received in the second half of 2020.

Equity Investees Update

JD.com’s joint venture, Dada Group (“Dada”), a leading platform of local on-demand retail and delivery in China, operates Dada Now, a leading local on-demand delivery platform, and JD-Daojia, one of China’s largest local on-demand retail platforms.

In the first quarter of 2020, Dada continuously expanded its offerings and optimized operational efficiencies.

As of March 31, 2020, Dada Now covered more than 2,400 cities and counties in China, and JD-Daojia covered more than 700 cities and counties in China.

JD-Daojia partners with almost all the leading supermarket chains in China, including Walmart, Yonghui and CR Vanguard, delivering top-notch services to retailers and brand owners and offering a high-quality on-demand retail experience for consumers.

As of March 31, 2020, JD-Daojia’s CRM tools had been adopted by 181 retailers covering over 24,000 stores, empowering retailers to target and communicate with their members and potential consumers for effective marketing.

Net revenues for the second quarter of 2020 are expected to be between 180 billion and 195 billion yuan, representing a growth rate between 20% and 30% YoY.

Source : China Internet Watch More   

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Malaysia needs innovative fiscal measures for sustainable health financing

Author: Yen Lian Tan, Southeast Asia Tobacco Control Alliance Non-communicable diseases (NCDs) accounted for 73 per cent of total deaths in Malaysia in 2015, with half of these being due to cardiovascular diseases. This health burden is growing as the prevalence of NCD risk factors continue to rise among Malaysians. The now abolished Malaysian Health […]

Malaysia needs innovative fiscal measures for sustainable health financing

Author: Yen Lian Tan, Southeast Asia Tobacco Control Alliance

Non-communicable diseases (NCDs) accounted for 73 per cent of total deaths in Malaysia in 2015, with half of these being due to cardiovascular diseases. This health burden is growing as the prevalence of NCD risk factors continue to rise among Malaysians.

The now abolished Malaysian Health Promotion Board (MySihat) complemented the Ministry of Health’s (MOH) role in the prevention and control of NCDs by promoting healthy lifestyles. Its work was in line with the priority areas of the Malaysia–WHO Country Cooperation Strategy 2016–2020.

MySihat, established as a statutory body by the Malaysian Health Promotion Board Act (Act 651), was a semi-autonomous entity within the MOH. Since its inception in 2006, it has promoted healthy lifestyles and chronic disease prevention programs. MySihat initially proposed to secure stable financing by imposing an earmarked tax on tobacco, alcohol and other harmful products. But a lack of political commitment changed the funding sources. MySihat was offered funding through the treasury budget’s allocation for health. But the MOH makes the final decision on the distribution of funds.

This funding mechanism is often limited and varies yearly depending on the availability of funds. Allocation is determined by the past year’s performance and competition with other programs. MySihat received an annual allocation of RM36 million (US$8.2 million) in 2007 but it dwindled to RM5.5 million (US$1.3 million) in 2016 and was maintained that amount until 2018.

MySihat spent 42 per cent of its budget between 2008–2018 to support the implementation of various health promotion programs at the community level. It collaborated with more than 1000 groups and organisations over that period and supported cross-sector partnerships between government, non-governmental organisations (NGOs) and the community. Such partnerships build the capacity to strengthen health promotion knowledge and skills among health-related and community-based organisations, benefitting millions nationwide.

In June 2018, Health Minister Dr Dzulkefly Ahmad announced a cabinet decision to abolish MySihat as part of the government’s rationalisation plan. Health advocates and NGOs have expressed their concerns.

MySihat’s responsibilities were transferred to other MOH departments without addressing the funding source problems for the annual health promotion programs. Most of the health budget is allocated to curative (acute) health care over preventive health promotion initiatives. The 2020 budget allocated the health sector RM30.6 billion (US$7 billion). But the allocation for prevention and control programs was unclear, and the country’s NCD burden remains unabated.

Health promotion needs multi-sectoral collaboration and a new sustainable financing mechanism for innovative health promotion programs. Additional fiscal resources are needed to achieve the 17 Sustainable Development Goals in the United Nations’ 2030 Agenda.

One way is to impose a surcharge tax on health-harming products, like tobacco, to generate a secure funding stream for health promotion. Its consumption contributes to all four major NCDs. This is in line with recommendations from the Article 6 Guidelines and Article 26 of the World Health Organization Framework Convention on Tobacco Control. Earmarking tobacco tax revenue would strengthen the effectiveness and sustainability of current health literacy and NCD prevention programs. This has been successful in 30 other countries.

Adopting and adapting experiences from the Thai Health Promotion Foundation (ThaiHealth) and other health promotion foundations worldwide would help to shape a new health promotion foundation in Malaysia. Thailand is the first ASEAN country to establish an autonomous health promotion agency. Since ThaiHealth’s establishment in 2001, it has received funding through a 2 per cent surcharge levied on alcohol and tobacco excise tax.

The ThaiHealth funding mechanism has been effective in securing a reliable source of funding for health promotion. The funding for Thai Health has increased from 3.1 million baht (US$95,500) in 2010 to 4.4 million baht (US$135,500) in 2017, enabling it to implement short-, medium- and long-term health promotion programs across the country. In 2017, a 2.9 million baht (US$89,300) fund was allocated for some major NCD risk reduction programs such as tobacco and alcohol control, and traffic accident prevention.

Such an allocation is a small investment compared to the economic cost of 280 billion baht (US$8.6 billion) — or 2 per cent of GDP — attributed to NCDs due to premature deaths and loss of productivity in the workforce in 2013. Many countries regard ThaiHealth as the gold standard for health promotion models.

To address the problems faced by MySihat, the Malaysian government should replace MySihat with an autonomous agency, using surcharge tax to secure a predictable and stable budget for health promotion programs. It will be a win-win policy for health as well as the budget.

Yen Lian Tan is the Knowledge and Information Manager at the Southeast Asia Tobacco Control Alliance (SEATCA).

Source : East Asia Forum More   

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