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JD posted a net profit of 1 billion yuan ($151 million), its
highest ever quarterly profit and outstripping analyst estimates
of a 213 million yuan loss.
Revenue for the quarter was 83.8 billion yuan, just above
analysts' mean estimate of 83.6 billion according to Thomson
Reuters I/B/E/S.
Despite strong bottom line results, gross merchandise volume (GMV)
growth still dropped to its lowest rate in a year, reflecting a
seasonal lull in sales before China's biggest online sale event,
Singles' Day, which ended on Saturday.
"[Sales of appliances and mobile phones] both were dragged by
weaker growth in September ... mainly due to competition and
slow seasonality," said TH Data Capital analyst Tian Hou in a
research note ahead of the earnings.
JD.com, the country's largest consumer electronics retailer and
second-largest e-commerce firm behind Alibaba Group Holding Ltd
<BABA.N>, booked $19 billion in total sales for Singles' Day,
which will be reflected in its fourth quarter earnings.
The results come as China's e-commerce giants increasingly
experience seasonal peaks around mega sale events in June and
November, moderated by sluggish interim periods.
JD expects revenue for the quarter ending in December to be
107-110 billion yuan, a rise of 35-39 percent, roughly in line
with analyst expectations. However, marketing costs related to
the November sales, which ran for over a month, are expected to
cut into its bottom line.
JD is expanding rapidly into offline stores and overseas
markets, as rival Alibaba continues to invest heavily in
logistics and retail alongside its marketplace business, edging
further into JD's territory.
This year, JD is investing in logistics infrastructure in
Southeast Asia, expanding from existing commitments in
Indonesia. At home, JD is hoping to tap big spenders with new
'white glove' platforms which feature imported food, fashion and
electronics.
Last week during a visit to China by U.S. President Donald
Trump, JD said it would purchase $2 billion in U.S. goods,
including $1.2 billion in beef, over the next three years.
(Reporting by Cate Cadell in Beijing and Munsif Vengattil in
Bengaluru; Editing by Bernard Orr and Mark Potter)
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