The Gulf Time Newspaper One of the finest business newspapers in the UAE brought to you by our professional writers and editors.
Bloomberg
JD.com Inc reported stronger-than-projected revenue growth after consumers continued to flock to the country’s second-largest online retailer despite an economic slowdown.
Sales hit 267.6 billion yuan ($39.1 billion) during the second quarter, beating the average forecast of 261.7 billion yuan. The Beijing-based company logged net income of 4.4 billion yuan, following three consecutive quarters of losses. Its shares rose more than 5% in pre-market trading in New York.
JD and larger rival Alibaba Group Holding Ltd are navigating a softer Chinese economy and Covid-related disruptions that are slowing growth in e-commerce and advertising. This month, Alibaba reported its first-ever revenue contraction since its 2014 listing, marking an end to an era of non-stop growth.
Billionaire Richard Liu’s empire has largely avoided a direct hit from Beijing’s yearlong crackdown on Big Tech. But concern about China’s priorities and fallout from the country’s Covid lockdowns, along with US regulators’ plans to possibly force JD and some of China’s biggest companies to delist, are weighing on the stock.