:max_bytes(150000):strip_icc()/GettyImages-2150476083-5c2b1ca9190540e9a97d97c208c3a9ef.jpg "China’s JD.com Nearly Doubles Profits From a Year Ago")
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KEY TAKEWAYS
- Chinese e-commerce giant JD.com on Thursday reported second-quarter profits nearly doubled from a year ago.
- The strong results come amid intense competition to draw cautious consumers as China’s economy slows.
- JD.com’s American depositary receipts jumped in early trading Thursday following the release.
Chinese e-commerce giant JD.com (JD) on Thursday reported second-quarter profits nearly doubled from a year ago, at a time when China’s online retailers are competing to draw cautious customers as the country’s economy slows.
The company reported second-quarter adjusted earnings per American depositary share (ADS) of 8.19 Chinese yuan ($1.13), up from 4.15 yuan for the second quarter of 2023. Revenue rose 1.2% to 291.4 billion yuan ($40.1 billion). Both were above forecasts.
CEO Sandy Xu attributed the gains to the company’s “growing economies of scale and procurement efficiencies.”
JD.com’s Earnings Beat Comes Amid Intense Competition
JD.com’s American depositary receipts (ADRs) surged in early trading Thursday after the company’s earnings announcement, in contrast to declines in ADRs of rival Alibaba Group (BABA), whose results missed analysts’ estimates.
The results come amid intense competition in China’s e-commerce industry, with some online retailers including JD.com offering price incentives to draw in cautious customers.
JD.com’s ADRs were up 4.5% at $27.08 as of 11:20 a.m. ET Thursday, though even with Thursday’s gains, they remained in negative territory for the year so far.