JD.Com Sinks Over 8% in Premarket After Online Retailer's Revenue Disappoints
Liao Shumin
DATE:  Nov 20 2018
/ SOURCE:  yicai
JD.Com Sinks Over 8% in Premarket After Online Retailer's Revenue Disappoints JD.Com Sinks Over 8% in Premarket After Online Retailer's Revenue Disappoints

(Yicai Global) Nov. 20 -- Shares of JD.Com, China's second-largest e-commerce company, slid 8.4 percent in premarket trading in New York after the firm's third-quarter revenue missed expectations and it lost active users.

The Beijing-based company's American Depositary Receipts changed hands at USD21.11 in limited trading before the market opens that is seen as a bellwether of later performance. It is the stock's lowest level in more than two years.

JD.Com yesterday said net revenue jumped 25 percent to CNY105 billion (USD15 billion) in the three months through September from a year earlier. But the figure failed to reach the CNY105.7 billion analysts polled by Bloomberg expected. The number of JD.Com's active users also fell to 305 million from 314 million in the previous quarter, though the figure was an advance on the 266.3 million in the same period a year earlier.

Uncertainty over whether authorities in the US state of Minnesota may charge Richard Liu, the company's founder and chief executive, with rape may also have spooked investors.

Gross merchandise volume in the third quarter climbed 30.5 percent to CNY395 billion (USD57 billion), while that of third-party platforms surged 40 percent. Net service revenues were CNY11 billion, up 49 percent.

As the company's core business, the operating margin of its online JD Mall stores was 2.2 percent, equal to its widest margin for a single quarter.

The company's GMV has shifted from high-speed growth to a stable development phase, the data indicate. It gained 30.4 percent in the first quarter from a year earlier, and 30.5 percent in the second and third quarters.

Editor: Ben Armour

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Keywords:   JD.com,Financial Result