Jd.com, how the Chinese e-commerce giant gets around
Ecommerce giant JD.com reported sales above analysts' estimates, challenging a crackdown on China's internet industry that dragged growth across the industry
Chinese e-commerce giant JD.com is holding up well against China's tech crackdown.
The e-commerce company's quarterly results beat expectations, unlike those of its rivals Alibaba and Tencent.
Shares of JD.comwere up 14% in Hong Kong on Tuesday after the company reported higher-than-expected revenue, challenging a crackdown on China's tech industry impacting the industry.
Since last year, Chinese authorities have announced new policies aimed at improving privacy, data security and competition in the market, and have sanctioned companies for violating the rules.
Chinese e-commerce giant JD.com Inc told investors on Monday that it expects no commercial impact from the wave of regulations hitting the Chinese tech industry, after beating analysts' expectations for the quarter ended 30. June.
All the details.
THE ACCOUNTS OF JD.COM
JD.com reported on Monday that second-quarter 2021 revenue increased more than 26% year-over-year to RMB 253.8 billion ($ 39.2 billion), beating estimates. Analysts had in fact expected a turnover of 249.27 billion yuan, according to IBES data from Refinitiv.
The company reported earnings of 2.90 yuan per US Depository Share (ADS), compared to analysts' expectations of 2.35 yuan.
However, net profit attributable to ordinary shareholders fell to 794.3 million yuan ($ 122.48 million) from 16.4 billion yuan ($ 2.53 billion) a year earlier.
THE RECORD NUMBERS
Despite ongoing regulatory tightening, the company added a record 32 million users in the quarter, bringing its total user base to over 531 million, and experienced growth in its logistics and market divisions.
The number of users increased by 27.4% on an annual basis.
THE CLAW OF THE BEIJING REGULATORS
As part of Beijing's regulatory crackdown on domestic tech giants, regulators last December fined JD.com 500,000 yuan for price irregularities.
But the regulatory ax has hit its rivals more.
In April, authorities fined Alibaba , JD.com's rival, with a record $ 2.5 billion for anti-competitive behavior. Alibaba's shares are down nearly 40% this year. The e-commerce giant founded by tycoon Jack Ma missed analysts' estimates for the quarter's results.
Not to mention that Chinese regulators canceled the $ 37 billion initial public offering proposed by its fintech subsidiary Ant Group in November and imposed a restructuring on the company in the following months.
LIKE ANT, NO IPO FOR JD DIGITS
However, Jd.com also saw its fintech division's listing plans fade. In April, China's Shanghai Stock Exchange closed its planned IPO for JD Digits in the wake of Ant Group's November IPO cancellation.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/innovazione/jd-com-come-si-barcamena-il-colosso-cinese-delle-commerce/ on Wed, 25 Aug 2021 12:45:38 +0000.