The Amazonian way

2 Mar 2016 By Robyn Mak Follow @mak_robyn

The Chinese group has emulated the U.S. web giant in e-commerce. It’s taking a similar approach to investing in new businesses. Sales may be growing quickly, but so are losses. The risk is that JD won’t be able to fund these ventures for long, or that investors lose patience.

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JD.com, China’s second largest e-commerce company, on March 2 reported revenue of 54.6 billion yuan ($8.43 billion) for the fourth quarter of 2015, a 57 percent increase from the same period the previous year. The company reported a net loss of 7.6 billion yuan for the quarter.

Gross merchandise volume (GMV), which measures the total value of products and services placed on JD.com’s sites, increased 69 percent year on year to 145.3 billion yuan.

Shares of U.S.-listed JD.com closed up 3 percent to $26.50 on March 1.

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