JD.com shares jump 12% as its brushes off coronavirus impact and beats estimates

JD.com’s stocks have jumped more than 12 per cent as brushed off coronavirus fears and posted better than expected fourth quarter results.

The Chinese commerce giant saw revenues skyrocket 26.6 per cent to £19.17 billion, coming well above estimates of £18.7 billion.

Revenue from its services arm, which include its third-party marketplace, advertising and logistics operations helped drive up overall performance seeing a 43.6 per cent revenue rise.

Profits also came in at £400 million, while its net income rose from a loss of £280 million in the same period in 2018 to £1.37 billion.

READ MORE: JD.com to hire 20,000 people to “minimize the impact of the epidemic on employment”

Despite seeing its annual customer base 18.6 per cent year-on-year to 362 million, this was still significantly below its key rivals Alibaba (711 million) and Pinduoduo (536 million).

However, unlike its larger competitors JD.com operates its logistics network entirely in-house, a trait that it says will enable it to return to operations following the extended holiday period in China far quicker.

Its 150,000 logistics employees have “become a lifeline for millions of existing and new customers” during the continued impact of the coronavirus outbreak, seeing its user base grow significantly this quarter.

JD.com says it expects to see sales rise 10 per cent in the current quarter, a relatively optimistic outlook in the face of mass quarantines across the country.

Elsewhere the retailer announced that its chief financial officer Sidney Huang was due to retire after more than seven years at the retailer.

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