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Continued Strong Earnings for JD.com Please Investors

Continued Strong Earnings for JD.com Please Investors

Market driven growth remains an important ideal for many global companies. Company officials who can demonstrate an ability to respond to changing market conditions are likely to see increased investor satisfaction. This can lead to even more investor interest that can help fuel profits and make them an attractive vehicle for those looking for an investment that makes sense. This is the case with JD.com. JD.com is a China-centered retailer with a great regional focus in this part of the world. As such, JingDong has been the focus of a great deal of investor attention both within China and from investors in other parts of the world. Investors have proven time and again that this is a company deserving of support from those with a vision for global and international commerce.

Solid Sales Growth

Officials at JingDong are pleased to report that they have posted earnings that are stronger than expected. In fact, they rose by an astounding and amazing twenty percent over the same quarter compared to last year. Such revenues were over eighteen billion this time. This exceeded the forecasts by a significant amount compared with last year. As a result of these earnings, the earnings per share were thirty-three cents. This is far greater than the predicted earnings of twelve cents per share by informed observers. As a company backed by U.S. retailing giant WalMart, they are fully expected to continue to see further growth in the upcoming quarters. There are several reasons for these higher than expected earnings.

Renewed Strategies

One of the major reasons why earnings have been so strong is that company officials, such as Richard Liu, have an understanding of the kind of marketing strategies necessary to produce results. The company’s CEO, Richard Liu, understands that partnerships are one of the keys to success in China. As pointed out in a recent article, the company has also been able to reach to Tencent, a company with the same understanding of this part of the world and what consumers want from a company. Tencent has a Weixin platform. This platform has been able to attract a great many users. In the last few months, more than a billion users have used it. That makes one of the fastest growing spaces for users. It’s also an area of vast growth when compared to last year. This kind of use of key technology and innovation is one of the very hallmarks of the company’s overall strategies for growth.

Trusted Experience

Those who work for this company understand that it has a vision for users. As such, they know that it aims to provide a superior experience for all those who look to e-commerce to buy things. A trusted online experience builds a happy audience pleased to use the platform for their everyday needs. They have also been able to see growth because they have been able to attract talent. Talented people are happy to join in a company where leadership remains strong and customer service is a top priority at all times. Reaching to a broader customer base is a goal that executives have made a priority for everyone who works with them. The growing scale means that the company also sees vast growth potential and the possibility of even more growth.

Cutting edge innovation is one area where investors also expected to watch for further growth. The overall aim is very much on shareholder value, not only today, but also for the long-term going forward. This is one of many reasons why the company’s shares were up by fifty-two percent in trading.


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by Lottie Pritchard // Lottie Pritchard is a contributor to Businessing Magazine.

Opinions expressed by contributors are their own.