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JD.com Beats Quarterly Revenue Estimates Amid Strong Electronics Demand

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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.

Nexperia Parent Wingtech to Sell Electronics Arm Amid Geopolitical Shifts

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Wingtech (600745.SS), the Chinese company that owns European chip maker Nexperia, has announced plans to sell roughly half of its business, focusing more on chipmaking in response to changes in the geopolitical environment. This strategic move follows the company’s recent inclusion on the U.S. government’s “entity list,” which targets firms perceived to aid the Chinese government in acquiring sensitive chipmaking technology.

The sale will involve Wingtech’s “product integration” business, which includes contract manufacturing of smartphones, home appliances, and other electronics. Following the transaction, Wingtech intends to concentrate its efforts on strengthening its semiconductor division and solidifying its position as a leading global player in the power semiconductor sector.

The filing, submitted to the Shanghai Stock Exchange, did not disclose the price of the sale, but it revealed that the business to be sold accounts for between 50% and 60% of Wingtech’s revenues, although it represents no more than half of its total assets. Luxshare Ltd., a Hong Kong-based company that is also the controlling shareholder of Luxshare Precision Industry Co. (002475.SZ), an Apple supplier, will be the buyer of the business.

Nexperia, which Wingtech acquired in 2019, has stated that it does not anticipate any impact on its operations from being placed on the U.S. entity list, though they were not immediately available for comment on the sale.