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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