JD.com sales rise most in years after China consumers awaken

JD.COM posted its fastest revenue growth in at least two years after Beijing policies helped shore up consumer spending across the world’s No. 2 economy.

Sales rose 13 per cent to 347 billion yuan (S$63.8 billion) for the three months ended December, versus the average estimate for about 332 billion yuan. Net income more than doubled to 9.9 billion yuan. 

JD’s results follow Alibaba’s better-than-anticipated numbers last month, underpinning a more buoyant mood among Chinese tech companies after Beijing signalled renewed support for the private sector.

Longer-term, JD is considered among the prime beneficiaries of Beijing’s shift to consumption-led growth, a major change in policy driven in part by global macroeconomic uncertainty.

The Chinese government introduced incentives for purchasing or replacing home appliances and electronic devices around the second half of 2024.

The company should also have benefited from a longer November Singles’ Day shopping season last year.

JD’s return to solid growth is boosting its ability to pursue new initiatives.

This year, the company launched JD Takeaway – entering a food delivery arena dominated for years by Meituan. Some investors have raised concerns about the impact on profitability, already dented by an ongoing price war with PDD Holdings and Alibaba.  BLOOMBERG