The Chinese e-commerce giant, jd.comhas presented its quarterly results and, despite exceeding consensus estimates, has recorded the slower growth of your story. The company has reported a net profit of 4.4 billion Chinese yuancompared to 1.36 billion yuan expected.
As for the income have been from 267.6 billion Chinese yuan versus 262.3 billion Chinese yuan forecast by the market.
After presenting its results, the company’s shares rise more than 2% on Wall Street.
Despite experiencing lower historical growth, the company has received a boost from a better profitability in its main retail business and logistics divisionhelped along by China’s annual «618» shopping festival in June.
The retail segment of JD.com constitutes the majority of its income. The division has generated 241.5 billion yuan in revenue in the second quarter, a year-on-year increase of close to 4%. The operating profit of the retail business rose 36% year on year to 8.17 billion yuan.
JD.com has thus become the latest victim of the economic slowdown facing China, but it is not the only one. This month, her rival in e-commerce, Alibabareported flat revenue in the June quarter for the first time, while the gaming and social media giant Tencent reported its first recorded revenue decline.
Tencent and Alibaba have been cutting spending and reducing the number of employees as revenue slows to boost earnings for the coming quarters. A similar approach has been shown by JD.com.
JD.com has also reduced marketing and administrative expenses for the quarter compared to the same period last year. The Beijing-based firm has also trimmed losses in its new business segment and seen its logistics unit swing to an operating profit in the second quarter compared to the same period in 2021.
«We are pleased to post top-line growth that outperformed the industry during a challenging period, as well as healthy profitability and cash flow,» he said. Sandy XuCFO of JD.com, in a press release.
«Our emphasis on financial discipline and operating efficiency has allowed us to return to shareholders in the form of share buybacks as well as a special cash dividend issued during the quarter. We will continue to focus on generating strong returns for shareholders while maintaining our commitment to investing for the long term.»
During the quarter between April and June, China saw a resurgence of Covid-19 which led to locks of major cities across the country, including the Shanghai financial powerhouseas authorities tried to contain the worst outbreak of the virus since the start of the pandemic in 2020.