E-commerce: Historically Low Growth for Chinese JD.com – ICT news

Chinese e-commerce giant JD.com announced historically low but better-than-expected quarterly revenue growth in a difficult economic downturn and sluggish consumer environment.

Other Chinese tech giants like Tencent (video games, payment) or Alibaba (online commerce) have reported very disappointing results in recent weeks. Given the anti-Covid lockdowns that are disrupting the economy, these groups have also been under the watch of regulators since late 2020, who aim to eradicate certain long-tolerated practices, such as abuse of dominant position and abusive data collection.

Against this backdrop, JD.com announced revenue growth in Q2 2022 of 5.4% year-on-year in this difficult period,” said Sandy Xu, the group’s chief financial officer, in a statement. made possible by the company’s financial discipline and efficient management.In the April-June period, the group’s sales totaled 267.6 billion yuan (39 billion euros) – a level slightly higher than analysts’ forecasts.

Lockdown

Profits reached 4.4 billion yuan (650 million euros) after several consecutive months of losses. Several cities or districts in China have been on lockdown in recent months, which is hampering economic activity, business travel and domestic consumption. Last week, internet giant Tencent reported its first quarterly revenue decline since going public in 2004.

As for Alibaba, the undisputed leader in online commerce in China, it announced a slight decline in its earnings in early August, the first for the group. JD.com joined New York’s Nasdaq in 2014 and has been listed on the Hong Kong Stock Exchange since 2020. So far, the group has been spared regulatory scrutiny. But uncertainties surround the company, including a possible and, for now, hypothetical delisting from the New York Stock Exchange. A law passed in 2020 in the US Congress requires any company listed in the United States to have its accounts certified by an approved company. This law puts Chinese companies, including JD.com, at risk of being delisted from the US Stock Exchange.

Other Chinese tech giants like Tencent (video games, payment) or Alibaba (online commerce) have reported very disappointing results in recent weeks. Given the anti-Covid lockdowns that are disrupting the economy, these groups have also been under the watch of regulators since late 2020, who aim to eradicate certain long-tolerated practices, such as abuse of dominant position and abusive data collection. Against this backdrop, JD.com announced revenue growth in Q2 2022 of 5.4% year-on-year in this difficult period,” said Sandy Xu, the group’s chief financial officer, in a statement. made possible by the company’s financial discipline and efficient management. In the April-June period, the group’s sales totaled 267.6 billion yuan (39 billion euros) – a slightly higher level than analysts’ forecast. 4.4 billion yuan (650 million euros), after several consecutive months of losses. Several cities or districts in China have been on lockdown in recent months, which is hampering economic activity, business travel and domestic consumption. Last week, Internet giant Tencent recorded the first decline in its quarterly earnings since its IPO in 2004. As for Alibaba, the undisputed leader in online commerce in China, in early August it announced a slight a in billing, a first for the group. JD.com joined New York’s Nasdaq in 2014 and has been listed on the Hong Kong Stock Exchange since 2020. So far, the group has been spared regulatory scrutiny. But uncertainties surround the company, including a possible and, for now, hypothetical delisting from the New York Stock Exchange. A law passed in 2020 in the US Congress requires any company listed in the United States to have its accounts certified by an approved company. This law puts Chinese companies, including JD.com, at risk of being delisted from the US Stock Exchange.

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