JD.Com Beats Revenue Estimates on Lockdown Boost

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Total net revenue rose 20.7 percent to 146.21 billion yuan ($20.59 billion) in the first quarter ended March 31.

China’s JD.com Inc beat analysts’ estimates for quarterly revenue and profit on Friday, as stay-at-home customers turned to its online platform for daily groceries and shopping needs, sending its U.S.-listed shares up 3% before the bell.

The company, which is working on a second listing in Hong Kong, is also benefiting from an in-house logistics and warehousing unit that is supporting the current surge in online orders.

Sales in its product segment, which includes online retail sales, rose about 20% 130.09 billion yuan ($18.31 billion), beating estimates of 123.62 billion yuan, according to IBES data from Refinitiv polled by three analysts.

JD has been competing heavily with Alibaba Group Holding Ltd and Pinduoduo Inc for a share in the current surge in online shopping.

In March, JD said it would give out 1.5 billion yuan worth of coupons for branded goods in categories including electronics, to encourage consumers to spend while the broader economy deals with virus-related uncertainties.

In response to the outbreak, JD said on Friday it worked with agricultural merchants to deliver their produce to its customers and also hosted online product launch events for cellphone brands such as Huawei, Xiaomi and Samsung.

JD’s total net revenue rose 20.7% to 146.21 billion yuan in the quarter ended March 31, while analysts on average had expected 136.53 billion yuan.

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