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A worker at Chinese e-commerce giant JD.com.

Kevin Frayer/Getty Images

Chinese tech giant

JD.com

—an e-commerce heavyweight and increasingly dominant force in supply-chain services—reported second-quarter revenue and earnings ahead of expectations Monday, but the stock slipped following results.

JD.com stock declined 0.6% in the U.S. premarket after the company posted earnings, while the group’s Hong Kong-listed shares rose 0.91% on Monday ahead of the news.

Revenue and earnings were ahead of Wall Street’s expectations, but marked a decline from the same period in the year prior, when e-commerce saw an unprecedented boom amid the early lockdowns of the Covid-19 pandemic.

Net revenues were 253.8 billion yuan ($39.1 billion) in the six months to the end of June, an increase of more than 26% from the same period in 2020 and above analysts’ estimates of RMB 248.9 billion. 

Also read: JD Logistics Shares Rise in Volatile $3.2 Billion Hong Kong IPO. Why It’s Another Win for JD.com.

Income from operations was RMB 300.8 million, compared with RMB 5 billion in the comparable period of 2020, while diluted net income per American Depository Share was RMB 0.50 ($0.08), compared with RMB 10.47 a year ago.

Unadjusted operating margins for the group’s retail arm held steady at 2.6%.

“We are pleased to deliver another quarter of healthy growth even compared to last year’s high base,” said Sandy Xu, JD.com’s chief financial officer. “We are also encouraged by the continued diversification of our revenue streams, reflecting our open ecosystem strategy of empowering customers and business partners through JD.com’s supply chain-based technology and infrastructure.”

The company also added 32 million new users in the second quarter, which was the largest single-quarter increase in the group’s history.

The decline in JD.com’s stock comes as the Chinese tech sector continues to face pressure from regulators. 

China’s market authorities have been cracking down in recent months, with much of the hammer falling on technology groups and companies with U.S. listings. The latest blow came this weekend, when the planned listing of the semiconductor arm of Chinese electric vehicle group BYD was suspended due to a regulatory investigation.

Write to Jack Denton at [email protected]

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