JD.com smashes analyst estimates and sees shares rally despite Trump’s Chinese crackdown

JD.com smashed analyst estimates during its last quarter as its self-run logistics operations powered through the pandemic.

In its first quarter since launching its $4 billion secondary listing on the Hong Kong Stock Exchange in June, JD.com saw net revenue jump 33.8 per cent to $29 billion.

This blitzed average analyst estimates of $27.95 billion, sending shares on the New York Stock Exchange jumping 3.5 per cent yesterday.

It also reported profits of $2.3 billion during the quarter, while its annual shopper count jumped 30 per cent to 417 million, marking its fastest growth in two years.

READ MORE: TikTok ban wipes $75bn of Chinese tech giants including Alibaba and JD.com

This is thanks to its self-run logistics network which was able to continue to service customers during lockdown while its rivals struggled, alongside a push into the more rural areas of China.

According to its retail chief executive Xu Lei, shoppers in these more remote areas began shopping with the company via its Jingxi discount shopping arm, before moving on to its main retail platform.

It comes at a tumultuous time for Chinese tech companies as the Trump administration threatens to ban their services completely in the US.

Last week it was reported that a whopping $75 billion had been wiped off the collective market capitalisation of companies like JD.com, Pinduoduo and Alibaba following fresh measures from the US government.

Earlier this month Donald Trump announced plans to ban Chinese social media giants TikTok and WeChat in the US, giving American companies just 45 days to stop all transactions with the pair.

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