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

JD.com (9618) posted its fastest revenue growth in almost three years after Beijing policies helped shore up consumer spending across the world’s No. 2 economy.

The company’s shares rose more than 9 percent in pre-market trading after reporting a much better-than-projected 13 percent rise in sales to 347 billion yuan (HK$372 billion) for the December quarter. Net income also more than doubled to 9.9 billion yuan.

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.

“The momentum was broad-based across multiple categories and revenue streams, reflecting positive macro consumption trends and JD’s expanding market share,” chief financial officer Ian Su Shan said in a statement.

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 (3690). Some investors have raised concerns about the impact on profitability, already dented by an ongoing price war with PDD and Alibaba (9988).
Bloomberg