(Reuters) -Chinese e-commerce giant JD.com beat market estimates for quarterly revenue on Thursday, signaling resilient consumer spending on its platform, fueled by price cuts and government subsidies.
U.S.-listed shares of the company rose about 3% in premarket trading.
Consumer demand in China has remained muted amid persistent economic pressures and trade uncertainty, but retailers like JD.com have leaned on deep discounts, promotions and government stimulus to spur sales.
JD.com also benefited from record sales logged during the 618 festival – China’s largest mid-year shopping bonanza. Total gross merchandise value, a measure of sales, jumped 15.2% to reached an all-time high of 855.6 billion yuan, according to retail data provider Syntun.
Total revenue rose 22.4% to 356.66 billion yuan ($49.73 billion) during the second quarter ended June, compared with analysts’ average estimate of 331.63 billion yuan, according to data compiled by LSEG.
Net income attributable to JD.com’s ordinary shareholders was 6.2 billion yuan for the quarter, compared to 12.6 billion yuan a year earlier.
($1 = 7.1714 Chinese yuan renminbi)
(Reporting by Deborah Sophia in Bengaluru; Editing by Tasim Zahid and Pooja Desai)
