(Yicai Global) Aug. 17 -- JD.Com released its results for the second quarter ending June 30 yesterday, with core indicators such as revenues and net profit flaccid, thus pushing its share [NASDAQ:JD] price down.
Net revenues for the second quarter were CNY122.3 billion (USD18.5 billion), up 31.2 percent annually in the weakest pace since its listing. Net profit for the second quarter was CNY478 million (USD70 million), up for the ninth consecutive quarter, but down 51 percent from CNY976.5 million a year ago.
Despite vigorous promotional campaigns, the company's gross merchandise volume growth was almost unchanged in the second quarter from the first, pointing to flagging growth.
Net loss was CNY2.2 billion in the second quarter, compared with CNY287 million in the same period last year.
The profit decline is closely linked to the company's massive investment in research and development. JD.Com spent CNY2.8 billion on technology R&D in the second quarter, up 80 percent from CNY1.54 billion one year ago, data show. Cost of revenues, fulfillment expenses, and marketing costs rose 31 percent, 29 percent and 29 percent, respectively in the second quarter, in line with revenue growth.
Company shares closed down 1.21 percent at USD31.97 yesterday.
Editor: Ben Armour