JD.com Beats Adjusted Profit Estimates With Increase in Partnership Agreements
Aug 23 (Reuters) – Chinese company JD.com Inc beat analysts’ expectations for adjusted quarterly earnings on Monday as its partnership with global brands such as Louis Vuitton owner LVMH helped it attract more buyers on its e-commerce platform.
The findings come amid a crackdown on the tech industry by Chinese regulators that has led to upheaval in industries such as e-commerce, gaming, ridesharing and cryptocurrency. Read more
JD.com’s net revenue increased about 26% to 253.8 billion yuan ($ 39.14 billion) in the second quarter ended June 30. Analysts were forecasting sales of 249.27 billion yuan, according to IBES data from Refinitiv.
JD’s annual active accounts receivable jumped 27.4% to $ 531.9 million.
JD’s strategy of holding inventory and having full control of its internal delivery network has also helped it compete with its big rival Alibaba Group, which outsources its logistics operations to third-party companies.
Sales of JD’s product segment, which includes online retail, increased by more than 23% to reach 219.69 billion yuan.
Excluding items, the company made a profit of 2.90 yuan per US depositary share (ADS), against 2.35 yuan expected by analysts.
($ 1 = 6.4841 Chinese renminbi yuan)
Report by Akanksha Rana in Bengaluru; Editing by Sriraj Kalluvila and Anil D’Silva
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