Forensic Analyst

Jason Yap, CFA

Forensic Accounting

JD reported revenue and earnings ahead of consensus expectations but which are a marked decline from the growth seen in Q2 2020 when JD benefitted (aided by its superior supply chain and logistics infrastructure) from an unprecedented e-commerce boom amid pandemic lockdowns. 
On the earnings call, JD's management sought to address regulatory concerns by highlighting its supply chain and logistics capabilities and customer service differentiation, focus on supporting the real economy, and compliance with labour laws, including social insurance contributions - throwing shade at <a href="https://pandaily.com/meituan-to-pay-social-security-for-food-delivery-riders-as-required-by-chinese-government-share-price-plummets/" target="_blank" rel="noopener">Meituan</a>'s recent troubles.
Further, JD highlighted that they have in fact benefitted from the anti-monopoly measures as they saw a return of merchants to JD e-commerce platform formerly bounded by 2 choose 1 policies at competing e-commerce platforms. 
Following the key issues discussed in the Q2 2021 preview (<a href="https://www.smartkarma.com/insights/jd-analysing-earnings-calls-and-disclosures-using-a-forensic-approach" target="_blank" data-smartkarma-citation="insights:55981" rel="noopener">JD - Analysing Earnings Calls and Disclosures Using a Forensic Approach</a>), we update the Q2 2021 financial and operating metrics and highlight relevant observations.

JD reported revenue and earnings ahead of consensus expectations but which are a marked decline from the growth seen in Q2 2020 when JD benefitted (aided by its superior supply chain and logistics infrastructure) from an unprecedented e-commerce boom amid pandemic lockdowns. 
On the earnings call, JD's management sought to address regulatory concerns by highlighting its supply chain and logistics capabilities and customer service differentiation, focus on supporting the real economy, and compliance with labour laws, including social insurance contributions - throwing shade at Meituan's recent troubles.
Further, JD highlighted that they have in fact benefitted from the anti-monopoly measures as they saw a return of merchants to JD e-commerce platform formerly bounded by 2 choose 1 policies at competing e-commerce platforms. 
Following the key issues discussed in the Q2 2021 preview (JD - Analysing Earnings Calls and Disclosures Using a Forensic Approach), we update the Q2 2021 financial and operating metrics and highlight relevant observations. 

JD - Q2 Results Beat Consensus but Lower than Prior Quarter Growth

JD.com Inc (ADR)

JD - Q2 Results Beat Consensus but Lower than Prior Quarter Growth