Chinese e-commerce giant JD.com (9618.HK) exceeded market expectations for quarterly revenue on Thursday, reflecting steady consumer demand supported by price cuts and government subsidies. U.S.-listed shares of the platform, a leading online retailer for electronics and home appliances in China, fell nearly 4% in morning trade.
Despite muted overall consumption amid economic pressures and trade uncertainties, JD.com boosted sales through deep discounts, promotions, and state subsidies. Analyst Vinci Zhang of M Science noted that the revenue upside was largely driven by electronics and appliances propped up by government support. Zhang cautioned that year-on-year comparisons may become tougher as subsidies wind down.
In response to sluggish domestic consumption and fierce competition, JD.com is pursuing growth internationally and in new sectors. Last month, the company made an offer to acquire German electronics giant Ceconomy (CECG.DE) for €2.2 billion ($2.57 billion), a strategic move to expand its European footprint. In February, JD entered the food delivery market—dominated by Meituan (3690.HK) and Alibaba’s Ele.me—offering consumer incentives to capture market share. CEO Sandy Xu said the new food-delivery unit is already driving traffic to JD’s core retail operations but warned that “excessive competition” could harm pricing and merchant profitability.
JD.com reported total revenue of 356.66 billion yuan ($49.73 billion) for Q2 ended June, up 22.4% from a year earlier and above the analyst consensus of 331.63 billion yuan. Net income attributable to ordinary shareholders fell to 6.2 billion yuan from 12.6 billion yuan a year ago.