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JD.com Beats Estimates for Adjusted Profit on Boost From Partnership Deals

JD.com’s net revenue jumped by about 26% to over $39 billion in the second quarter, which was above analysts’ expectations

A sign of China's e-commerce company JD.com is seen at its shop in a mall in Shanghai, in October 2018. Photo: Aly Song, Reuters.

 

China’s JD.com Inc beat analysts’ expectations for quarterly adjusted profit, as its partnership with global brands such as Louis Vuitton-owner LVMH helped it attract more shoppers to its e-commerce platform.

The results come amid a crackdown on the tech industry by Chinese regulators that has led to an upheaval in sectors such as e-commerce, gaming, ride-hailing and cryptocurrency.

Net revenue at JD.com rose about 26% to 253.8 billion yuan ($39.14 billion) in the second quarter ended June 30. Analysts had expected revenue of 249.27 billion yuan, according to IBES data from Refinitiv.

JD’s annual active customer accounts jumped 27.4% to 531.9 million.

JD’s strategy of holding inventory and having full control of its in-house delivery network has also helped it compete with larger rival Alibaba Group, which outsources its logistics operation to third-party firms.

Sales in JD’s product segment, which includes online retail, rose over 23% to 219.69 billion yuan.

Excluding items, the company posted a profit of 2.90 yuan per American depositary share (ADS), compared with analysts’ expectations of 2.35 yuan.

• Reuters and Jim Pollard

 

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Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years and has a family in Bangkok.

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