- Lower prices and reduced spending help JD.com post better-than-expected third quarter results.
- The Chinese e-commerce company also benefited from its supply chain advantages.
- Despite Wednesday's gains, ADRs of JD.com have still lost more than half their value this year.
American depositary receipts (ADRs) of JD.com advanced over 7% in early trading Wednesday after the Chinese e-commerce firm posted better-than-expected results as it attracted customers with lower prices while it cut costs.
JD.com reported it achieved record profitability in the third quarter of fiscal 2023, with earnings per share (EPS) of 6.70 Chinese yuan ($0.92). Revenue rose 1.7% from a year ago to 247.7 billion Chinese yuan ($34.2 billion). Both were better than estimates.
CEO Sandy Xu credited the strong results to the company’s “proactive efforts on enhancing price competitiveness and platform ecosystem, as well as our supply chain advantages.”
CFO Ian Su Shan explained that JD.com has continued to expand its market share in its core categories of home appliance and electronics. He added that general merchandise sales “gradually ramped up momentum in the quarter.”
The company slashed research and development expenses by 7.8%, and general and administrative costs by 5.6%.?
ADRs of JD.com have slumped this year, and even with Wednesday’s gains, they were down more than 50% for 2023.