JD.com revenue growth accelerates, but profits hit by new business expansion

JD.com reported its fastest revenue growth in three years in the second quarter, buoyed by government subsidies and stronger demand for electronics, but profits fell sharply as the company poured money into food delivery and other new businesses. The e-commerce giant posted revenue of 356.66 billion yuan ($49.4 billion), up 22.4% year over year and above market expectations. That marked the strongest growth since the first quarter of 2022. By comparison, revenue grew just 1.2% in the same period last year, the slowest pace since 2020. However, net profit attributable to ordinary shareholders dropped 50.8% to 6.2 billion yuan ($860 million), due to heavy investments in new ventures, including JD’s food delivery service launched earlier this year. On a non-GAAP basis, net profit came in at 7.4 billion yuan ($1.03 billion), above analyst forecasts but down 49% from a year earlier, when the company recorded an all-time high. Shares of JD.com fell 2.9% in U.S. trading after the earnings release. [JD.com]