Chinese e-commerce group JD.com beats profit forecasts in second quarter

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Chinese e-commerce group JD.com beats profit forecasts in second quarter
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Chinese e-commerce group JD.com beats profit forecasts in second quarter

- Chinese e-commerce group JD.com on Thursday reported a forecast-beating second-quarter profit, helped by price cuts that attracted cost-sensitive consumers to its platform.Major Chinese vendors like JD.com and Alibaba have increased their focus on discounts and lower-priced goods as Chinese shoppers have become more cautious about spending.

Increased competition has triggered a price war between larger rivals as they look to attract the same pool of customers. The so-called "618" shopping event, named after the June 18 founding date of e-commerce provider JD.com, but embraced by all platforms, gauges the market sentiment among household consumers.

JD.com's second-quarter profit rose 73.7% to 9.36 yuan per share, excluding items, compared with estimates of 6.07 yuan, according to LSEG data.After JD.com prioritised a "low price" strategy at the close of 2022, its share price experienced a decline, plummeting from approximately $60 to the current value of around $26.

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