Net revenues of JD.com for Q4 2017 were RMB110.2 billion (US$216.9 billion), an increase of 38.7% from Q4 2016. Revenues from services and others for Q4 2017 were RMB10.0 billion (US$1.5 billion), an increase of 54.7% from Q4 2016. Net revenues for the full year of 2017 were RMB362.3 billion (US$55.7 billion), an increase of 40.3% from the full year of 2016. Revenues from services and others increased by 49.9% in 2017.

Gross profit for the fourth quarter of 2017 was RMB14.4 billion (US$2.2 billion), compared to RMB10.8 billion in Q4 2016. Gross profit for the full year of 2017 was RMB50.8 billion (US$7.8 billion), an increase of 43.7% from the full year of 2016. Non-GAAP gross profit4 for the full year of 2017 was RMB50.0 billion (US$7.7 billion), an increase of 44.7% from the full year of 2016.

Net loss from continuing operations attributable to ordinary shareholders for the fourth quarter of 2017 was RMB909.2 million (US$139.7 million), a decrease of 27.9% from RMB1,261.4 million net loss for the same period last year. Non-GAAP net income from continuing operations attributable to ordinary shareholders5 for the fourth quarter of 2017 was RMB449.3 million (US$69.1 million), compared to RMB779.7 million for the same period last year.

Net income from continuing operations attributable to ordinary shareholders for the full year of 2017 was RMB116.8 million (US$18.0 million), compared to a net loss from continuing operations attributable to ordinary shareholders of RMB2.0 billion for the full year of 2016. Non-GAAP net income from continuing operations attributable to ordinary shareholders for the full year of 2017 was RMB5.0 billion (US$0.8 billion), an increase of 140% from the full year of 2016.

Diluted EPS and Non-GAAP Diluted EPS. Diluted net loss per ADS from continuing operations for the fourth quarter of 2017 was RMB0.64 (US$0.10), compared to RMB0.89 for the fourth quarter of 2016. Non-GAAP diluted net income per ADS from continuing operations for the fourth quarter was RMB0.31 (US$0.05), compared to RMB0.54 for the same quarter last year.

Diluted net income per ADS from continuing operations for the full year of 2017 was RMB0.08 (US$0.01), compared to diluted net loss per ADS from continuing operations of RMB1.43 for the full year of 2016. Non-GAAP diluted net income per ADS from continuing operations for the full year of 2017 was RMB3.41 (US$0.52), as compared to RMB1.45 in the full year of 2016.

Operating cash flow from continuing operations for the twelve months ended December 31, 2017 increased to RMB27.3 billion (US$4.2 billion) from RMB10.0 billion for the twelve months ended December 31, 2016. Free cash flow from continuing operations, which excludes the impact from JD Finance related credit products included in the operating cash flow, for the twelve months ended December 31, 2017 increased to RMB15.7 billion (US$2.4 billion) from RMB13.5 billion for the twelve months ended December 31, 2016.

Annual active customer accounts increased by 29.1% to 292.5 million in the twelve months ended December 31, 2017 from 226.6 million in the twelve months ended December 31, 2016.

In the fourth quarter of 2017, JD.com continued to expand its fashion offering on the JD platform with Bebe, an American contemporary fashion brand, and Cambridge Satchel, an iconic British handbag brand. TOPLIFE, JD.com’s independent online luxury platform which was launched during the quarter, also expanded its range of high-end brand partnerships through agreements with several well-known international luxury brands, including Yves Saint Laurent, Alexander McQueen and Derek Lam. TOPLIFE’s customized inventory facilities, premium delivery service and abundant product selections combine the best of offline luxury shopping with the convenience and precision of online shopping.

JD.com had over 170,000 merchants on its online marketplace, and a total of 157,831 full-time employees as of December 31, 2017.

In December 2017, JD.com launched its second-hand goods business, Paipai, expanding JD.com’s ecosystem into China’s second-hand goods market. Combining advanced technologies such as blockchain-based traceability, AI-enabled automated online product verification and valuation, identity verification and credit rankings alongside JD’s anti-counterfeit controls, JD is well positioned to solve key “pain points” in the second-hand goods market, namely, quality, authenticity and security, providing a trustworthy second-hand goods platform for Chinese consumers.

As of January 31, 2018, JD.com’s joint venture, New Dada, had partnered with 163 Walmart stores and 388 Yonghui stores, among numerous other supermarkets and grocery stores, to provide a premium online fresh grocery shopping experience with one-hour home delivery service. New Dada is the largest crowdsourcing logistics provider and O2O grocery platform in China.

In January 2018, JD.com and Meili Inc. agreed to form a joint venture to explore social-commerce opportunities. The new venture will build and operate a social e-commerce platform leveraging resources on JD’s level-1 Weixin entry point, bringing innovative and interactive social-commerce features to shoppers, and helping small businesses reach a broader consumer base at lower cost.

In February 2018, JD.com and Tencent announced a joint minority investment in Better Life, a leading multi-format regional retailer in southwest China. Combining Tencent’s massive social media traffic, JD’s e-commerce know-how and logistics capabilities, and Better Life’s offline retail chain, the three parties have established a strategic partnership to pursue “Boundaryless Retail Solutions” and to provide customers with integrated online and offline shopping experiences.

Cross-border online shopping trends in China 2018

Paipai launched micro-shop mobile app last month to enable individual merchants to set up mobile online stores on smartphones directly and they could log in the stores with QQ numbers only.

Paipai.com, part of Jingdong from their strategic collaboration with Tencent launched micro-shop platform for both business and individual sellers targeting C2C mobile shopping market in October 2014. Sellers can create mobile store with this platform and share with friends on popular mobile platforms such as WeChat and mobile QQ.

JD.com also integrated its online shopping platform on WeChat. WeChat added a new feature in May 2014 for its official account platform to enable verified WeChat Official service accounts, who have integrated WeChat payment, to set up mobile store easily. Both don’t seem to catch the individual sellers market; that’s where Paipai’s micro-shop comes in play.

Different from other mobile apps for online stores in the market, Paipai mobile selling app registration or login is only for QQ numbers other than mobile phone numbers. In terms of other functions for mobile online stores, Paipai micro-shop owners can display new products, edit their information and then share products in social media, arrange delivery, and receive.

According to Paipai, its mobile sellers receive payment via Tenpay and their seller account can not add bank cards for receiving payments. During the trading on Paipai, once a seller account activates Tenpay account, payment received directly goes to the Tenpay account.

Mobile online stores on smartphones have been booming since the second half of 2013 in China. Koudai has over 12 million mobile stores with over 83 million monthly active users and transaction value of 15.8 billion yuan. Jingdong has Paipai micro-shop and Jingdong micro-shop and they could only be managed on desktop until now that Paipai mobile seller app is available.

Besides, the previous requirement for merchant qualification of Paipai micro-shop and Jingdong micro-shop were higher than others in the market until recently when the bar is lowered to attract more micro-sellers. Paipai’s micro-shop mainly targeted merchants who are already on Paipai e-commerce platform with verified WeChat service official accounts.

The newly-launched Paipai micro-shop mobile app does not require WeChat service official account or verification which can potentially attract many small businesses and individual sellers.

Also read: Jingdong Launched Shopping Channel on Mobile QQ

Paipai.com, part of Jingdong, is launching micro-shop platform for both business and individual sellers targeting C2C mobile shopping market.

Wechat added a new feature this May for its official account platform to enable verified Wechat Official service accounts, who have integrated Wechat payment, to set up mobile store easily. During the same period, JD.com also integrated its online shopping platform on Wechat. Both don’t seem to catch the individual sellers market; that’s where Paipai’s micro-shop comes in play.

Paipai has been internal testing micro-shop with 5,000 merchants for about one month. According to Ebrun News, 40% of Paipai Micro-shop orders come from Wechat, 20% from mobile QQ, and 40% from other channels including Qzone, Weibo, and forums.

Paipai plans to launch mobile app in late October to enable individuals merchants to set up mobile online stores on smartphones directly.

The cost per user acquisition is much lower on mobile. Paipai knows that; and it enjoyed it. According to Paipai, the CPA of its micro-shop is just between 1 and 2 yuan while it costs no less than 10 yuan on other C2C platforms. The cost per order of Paipai micro-shop is between 7 and 8 yuan comparing with over 30 yuan on other C2C platforms.

The combined MAUs of Weixin (Wechat’s Chinese version) and WeChat were 438 million by end June 2014 according to Tencent’s financial results for Q2 2014. It’s very common to see people utilizing Wechat as a sales tool using his or her own personal Wechat account and selling various products. Though there are a few apps available for individual sellers, Paipai micro-shop will most likely be the most competitive product in the market considering the strategic partnership between Jingdong and Tencent.

Also check out the 7 charts on China mobile shopping apps market.