By Deborah Mary Sophia and Sophie Yu<\/p>\n
March 5 (Reuters) – China’s JD.com missed market estimates for quarterly revenue on Thursday as stiff competition and waning \u200cbenefits from government subsidies ate into demand at the e-commerce giant.<\/p>\n
Consumer demand \u200cin China has weakened in recent years as a prolonged property sector crisis, employment concerns and geopolitical tensions \u200bweighed on growth in the world’s second-largest economy.<\/p>\n
That has hurt retailers such as JD.com, the largest seller of home appliances in China, as shoppers cut discretionary purchases.<\/p>\n
While JD.com has benefited in recent quarters from government subsidies, the incremental impact is fading as year-on-year comparisons \u200cbecome tougher.<\/p>\n
The company has also \u2060leaned on other product categories and new revenue streams such as its instant retail business and advertising unit to drum up sales.<\/p>\n
“Our \u2060growth drivers are becoming more diversified, general merchandise category maintains a healthy growth trend, while service revenue including advertising will sustain rapid growth momentum,” JD.com chief executive Sandy Xu said \u200bduring \u200ba conference call with analysts on Thursday.<\/p>\n
The electronics \u200band home appliances category is \u200cexpected to remain under pressure in the first quarter due to a high base, but growth may accelerate in the second half and exceed the first, she told analysts during a quarterly call.<\/p>\n
Xu said investment in the food delivery business will decline in 2026 compared with 2025.<\/p>\n
U.S.-listed shares of the company dipped about 2% in early trading.<\/p>\n
JD.com \u200cis also facing mounting competition as e-commerce rivals \u200bsuch as Alibaba and PDD Holdings ramp up \u200bdiscounts on their China-focused platforms. Heavy \u200binvestment in promotions and price cuts has weakened profit margins.<\/p>\n
Revenue rose \u200c1.5% to 352.3 billion yuan ($51.12 billion) in \u200bthe fourth quarter \u200bended December, below analysts’ average estimate of 353.86 billion yuan, according to data compiled by LSEG.<\/p>\n
Net loss attributable to JD.com’s ordinary shareholders was 2.7 billion yuan \u200bfor the quarter, compared with \u200ca profit of 9.9 billion yuan a year earlier.<\/p>\n
($1 = 6.8918 Chinese yuan)<\/p>\n
(Reporting \u200bby Deborah Sophia in Bengaluru and Sophie Yu in Beijing; Editing by \u200bHimani Sarkar, Maju Samuel and Nivedita Bhattacharjee)<\/p>\n","protected":false},"excerpt":{"rendered":"By Deborah Mary Sophia and Sophie Yu March 5 (Reuters) – China’s JD.com missed market estimates for quarterly…\n","protected":false},"author":2,"featured_media":505838,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36],"tags":[28,144,101,159553,145588,37799],"class_list":{"0":"post-505837","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-china","10":"tag-economy","11":"tag-government-subsidies","12":"tag-market-estimates","13":"tag-quarterly-revenue"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/505837","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=505837"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/505837\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/505838"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=505837"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=505837"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=505837"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}