(Yicai Global) Aug. 24 – JD.Com’s stock gained in New York after second-quarter revenue at China’s second-biggest online retailer rose 5.4 percent from a year earlier, beating the market consensus despite the impact of Covid-19 restrictions in the country.

JD’s New York-listed stock [NASDAQ: JD] jumped 3.4 percent yesterday, after the earnings report was released, to close at USD57.20. In pre-market trading today, the shares were down 1.5 percent at USD56.36 as of 4.10 a.m. local time. After gaining as much as 3.9 percent in Hong Kong this morning, JD [HKG: 9618] ended little changed at HKD221.60 (USD28.50).

Revenue was CNY267.6 billion (USD40 billion) in the three months ended June 30, the Beijing-based company’s financial report showed. That was better than the average forecast for CNY262.3 billion. Net profit soared 450 percent to CNY4.4 billion (USD643.7 million), following losses in the three previous quarters.

The second quarter was the most challenging period as Covid-19 flareups impacted retail spending, Chief Executive Officer Xu Lei said on JD’s earnings conference call. Lockdowns curtailed demand for clothing and drinks, and supply chain disruptions affected the mobile phone and home appliance markets, he said.

Lockdowns in core areas with warehousing also led to delayed delivery times, with the number of cancelled orders jumping in April, Xu said, adding that the situation improved somewhat in May, but cancellations remained higher than a year earlier

Income from services, which includes marketing and logistics, jumped 22 percent to a record CNY41.6 billion (USD6.1 billion), accounting for 15.5 percent of total revenue. Product sales rose by 2.9 percent, versus an annual growth rate of 16.6 percent in the first quarter.

Active users climbed 9.2 percent to 580.8 million, while the number of JD’s Plus members surpassed 30 million last month, up 5 million from the end of last year

JD’s long-term strategy remains unchanged, Xu said. That includes continuing to develop the sinking market, investing in citywide retail to deep dive into user needs, as well as continuing to build supply chain capabilities and an open platform ecosystem.

Editor: Futura Costaglione