JD.com beats revenue estimates in Q2, net income jumps 50%

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JD.com recorded a 7.6% year-on-year revenue increase to US$39.7 billion in the second quarter of FY 2023, exceeding average analyst estimates of US$38.7 billion. Net income for the period reached US$904 million, up almost 50% compared to the same quarter last year.

At time of writing, JD.com’s shares on the Nasdaq are down about 5.5% in premarket trading, signaling continued worries over China’s economy.

Sandy Xu, CEO of JD.com, attributed the growth to the company’s “enhanced business structure” and improved supply chain operations.

Its JD Retail division contributed US$34.9 billion in revenue, or about 88%. JD Logistics, on the other hand, accounted for US$5.7 billion.

Su Shan, CFO of JD.com, said JD Retail continued performing well in “core categories” such as home appliances and what it calls 3C – computers, communications, and consumer electronics.

In June, JD.com said it aims to create three new businesses with over 1 trillion yuan (US$139.9 billion) in revenue and 70 billion yuan (US$9.8 billion) in net profits as part of its “ambitious goals” for the next two decades.

The company also recently announced plans to spin off both JD Property and JD Industrials and pursue IPOs in Hong Kong for both. Some of the group’s listed firms include JD Health, JD Logistics, and Dada Group. In January 2023, it closed down businesses in Indonesia and Thailand.

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