JD.Com Inc (NASDAQ:JD), Chinese e-commerce giant stock rose 6.85% (As on August 24, 11:10:34 AM UTC-4, Source: Google Finance) after the company beat Wall Street estimates for quarterly revenue as lockdowns in China to control the coronavirus boosted online shopping and the company’s “618” shopping event. Sales in its product segment, which includes online retail sales, rose 2.9% in the quarter, while those from services such as logistics and marketing jumped 21.9%. Zephirin Group analyst Lenny Zephirin said JD.com is in a class of its own as timely contractual agreements with luxury brands were key to its profit beat in the quarter. JD.com’s net income attributable to ordinary shareholders rose to 4.38 billion yuan, or 1.37 yuan per American Depository Share (ADS) for the three months ended June 30, from 794 million yuan, or 0.25 yuan per ADS, a year earlier. Further, JD Logistics, which operates more than 1,400 warehouses and employs over 200,000 in-house delivery personnel, is also expanding its footsteps overseas. Its first automated warehouse in the United States, “Los Angeles No. 2”, was launched in June. Operating cash flow for the twelve months ended June 30, 2022 was RMB51.1 billion (US$7.6 billion), compared to RMB38.9 billion for the twelve months ended June 30, 2021. Free cash flow, which excludes the impact from JD Baitiao receivables included in the operating cash flow, for the twelve months ended June 30, 2022 was RMB27.7 billion (US$4.1 billion), compared to RMB31.9 billion for the twelve months ended June 30, 2021. Annual active customer accounts increased by 9.2% to 580.8 million in the twelve months ended June 30, 2022 from 531.9 million in the twelve months ended June 30, 2021.
JD in the second quarter of FY 22 has reported the adjusted earnings per share of 4.06 yuan per American ADS, beating the analysts’ estimates for the adjusted earnings per share of 2.78 yuan per American ADS. The company had reported the adjusted revenue growth of 5.4 percent to $267.6 billion in the second quarter of FY 22, beating the analysts’ estimates for revenue of $263.06 billion. Net service revenues for the second quarter of 2022 were RMB41.6 billion (US$6.2 billion), an increase of 21.9% from the second quarter of 2021.
Meanwhile, during the second quarter, to enhance omni-channel retailing, JD.com’s Fashion and Lifestyle business upgraded to “The J Shop” and launched its online channel on JD.com’s app and offline pilot stores in cities including Xi’an, Shenzhen, Chengdu, Yinchuan and Beijing.