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JD.com Shares Up - China E-Commerce Firm Results Beat

Chinese e-commerce company JD.com reported second-quarter results ahead of analysts' estimates.
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JD.com  (JD) - Get JD.com Inc. Report shares jumped on Monday after the Chinese e-commerce company  reported second-quarter results that beat analysts' estimates.

The company earned 10.47 yuan (US$1.48) an American depositary share in the quarter, compare with 0.36 yuan in the year-earlier quarter. The latest adjusted earnings were 3.51 yuan (US$0.50) compared with 2.3 yuan a year earlier.

The company reported a 34% increase in revenue for the quarter to 201.05 billion yuan ($28.5 billion). 

A survey of analysts by FactSet was looking for GAAP earnings of 26 cents a share, or an adjusted 39 cents, on revenue of $27.46 billion.

“Since the COVID-19 outbreak, JD has steadfastly leveraged our distinctive supply chain and technology capabilities to contribute to society and ensure the steady supply and undisrupted delivery of daily necessities to consumers, while helping to create jobs within our ecosystem and support business partners amidst the dynamic economic environment,” Chief Executive Richard Liu said in a statement.

Revenue rose 45% from product sales and 36% from services. Cost of revenue during the quarter also rose 34.5%.

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The American depositary receipts of the Beijing company at last check were 3.7% higher at $64.33.

The online retail platform saw mobile daily active users grow by 40% in June amid coronavirus pandemic restrictions that have pushed retail trends further online. For the 12 months through June 30, daily active users rose 30% to 417.4 million.

The company cited its response to the covid-19 resurgence in Beijing in June as being part of the reason for the strong numbers in the quarter.

The company screened fresh produce for the virus, as the outbreak was linked to a wholesale food market in the city. JD.com tested its staff and employed contactless delivery.

In June, it was reported that JD.com was looking to raise up to HK$31.4 billion ($4.05 billion) in a listing on the Hong Kong Stock Exchange as a complement to its listing on the Nasdaq. 

JD.com joined a number of Chinese companies listed in the U.S. that were considering domestic listings, as tensions between the U.S. and China over trade and the coronavirus pandemic have increased.