JD.com has seen its stock prices soar seven per cent after beating analysts’ estimates over its third quarter and outpacing the slowing growth of the wider Chinese economy.
The Chinese ecommerce giant saw total net revenues jump 28.7 per cent to 134.8 billion yuan (£14.81 billion) in the three months to September 30, coming comfortably above estimates of 128.6 billion yuan (£14.13 billion).
Its active customers for the year to the end of September jumped from 321.3 million to 334.4 million, increasing 36 per cent on mobile during the quarter.
Meanwhile its non-GAAP earnings before tax (EBITDA) came in at 4.2 billion yaun (£460 million) with a margin of 3.1 per cent, up from significantly from 1.7 billion yuan and margins of 1.6 per cent in the same period last year.
JD.com attributed its strong quarter to growth in “lower tier” cities, which accounted for 70 per cent of its new customers.
Chinese ecommerce giants including Alibaba, JD.com and Pinduoduo have made these cities, where buyers are price-sensitive and delivery networks are less developed, key battlegrounds for growth outside of the saturated wealthier regions.
This comes amid slowing growth in both the ecommerce sector and the wider economy in China, forcing its largest company’s to diversify their offering and seek new markets.
“JD’s commitment to providing consumers with the best possible online shopping experience drove another strong quarter of growth,” JD.com’s chairman and chief executive Richard Liu said.
“In particular, more and more consumers in China’s fast-growing lower-tier cities are turning to JD for our superior value and service.”