JD.com posts upbeat results as online orders surge

JD.com

China’s JD.com beat analysts’ estimates for quarterly earnings, as the firm benefited from a change in shopping habits of domestic customers who have mostly moved to online ever since the outset of the coronavirus pandemic.

US-listed shares of the e-commerce company rose 5% in trading before the bell.

The results coincide with growing tensions between Beijing and Washington. Many Chinese companies are putting off plans for US listings amid tensions between the world’s top two economies, while those listed in New York are seeking to return to exchanges closer to home.

In June, JD.com raised about $3.87 billion in Hong Kong.

JD executives did not offer any remarks on US-China worries on a conference call with analysts on Monday.

China, which has under a million active coronavirus cases now, has largely emerged from lockdowns but demand is still picking up in several sectors.

Retail sales in the world’s second-largest economy slipped in July, dashing expectations for a small rise, as consumers failed to shake off wariness about the coronavirus, while the factory sector’s recovery struggled to pick up pace.

The provider’s net product revenue, which includes online retail sales, rose 33.5 percent to 178.19 billion yuan in the next quarter.

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The company’s total net earnings rose 33.8% to 201.1 billion yuan (approximately $28.98 billion) in the quarter ended June 30. Analysts on average had expected revenue of 190.95 billion yuan, according to IBES data from Refinitiv.

The team at Platform Executive hope you have enjoyed the ‘JD.com posts upbeat results as online orders surge‘ article. Initial reporting via our content partners at Thomson Reuters. Reporting by Munsif Vengattil in Bengaluru and Josh Horwitz in Shanghai. Editing by Anil D’Silva and Maju Samuel.

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