(Reuters) -China’s JD.com topped market estimates for quarterly revenue on Thursday, as the e-commerce giant benefited from steady consumer spending on its platform thanks to government subsidies and lower prices.
U.S.-listed shares of the company rose more than 3% in premarket trading.
Chinese retailers are using heavy discounts and price cuts to lure shoppers who are keeping a tight leash on their spending due to worries over job and income security.
JD.com, which is the top retailer of home appliances in China, has also benefited from government-backed trade-in policies that allow consumers to exchange older appliances for newer ones.
The company reported a 14.9% rise in total revenue to 299.1 billion yuan ($41.99 billion) in the third quarter ended September 30, compared with analysts’ average estimate of 294.05 billion yuan, according to data compiled by LSEG.
Quarterly net income attributable to JD.com’s ordinary shareholders fell to 5.3 billion yuan from 11.7 billion yuan a year earlier, owing to the company’s hefty investments in international expansion and new business segments.
($1 = 7.1230 Chinese yuan renminbi)
(Reporting by Deborah Sophia in Bengaluru; Editing by Anil D’Silva)
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