The stock in JD.com Inc. (Nasdaq: JD; HKEX: 9618) reverted course by Monday afternoon, trading 3% in the green after beating expectations for the second quarter.
The Chinese tech giant booked $39.3 billion in the June quarter, at a 26% increase year-over-year. Net income, JD said, reached $123 million, or 8 cents per share. The company also noted record user growth – more than 32 million new users joined the e-commerce platform during the quarter. Overall, JD counted nearly 532 million annual active customer accounts as of June 30.
Sandy Xu, the chief financial officer of JD, said the mid-year "618 Grand Promotion" event helped propel user growth in the second quarter. Xu referred to China's mid-year shopping festival it celebrates on June 18. The scale of the sales spree is smaller than during Singles' Day, which takes place on November 11, but it remains a significant driver of growth for companies like JD, its rival Alibaba Group (NYSE: BABA; HKEX: 9988), Pinduoduo (Nasdaq: PDD), and others. This year, JD said 236 brands achieved sales of 100 million yuan through JD's platform between June 1 and June 18.
Separately, during the festival, JD took special notice on its "environmentally friendly logistics, procurement and facilities." As the company said in the statement today, "Since 2017, JD.com has been gradually replacing traditional fuel-combustion trucks with new energy vehicles reducing carbon dioxide emissions by more than 120,000 tons each year."
Among other developments, JD's logistics unit debuted on the Stock Exchange of Hong Kong in late May. The IPO of JD Logistics (HKEX: 2618) brought in proceeds of about 23 billion yuan. As of June 30, JD Logistics operated 1,200 warehouses, counted more than 1,000 air cargo routes and had the ability to utilize over 300 railway routes, the company said. During the 618 festival, delivery was fulfilled "within minutes of order placement in over 200 cities in China."
JD also noted the IPO of AiHuiShou International (NYSE: RERE), a Chinese reseller of used mobile phones. JD holds a 33.4% stake in the company. Last week, AiHuiShou released its first earnings since becoming publicly traded in June.
JD's second quarter results had the stock trading in the red early on Monday, but shares reverted course, trading at $65.54 per American depositary share in the afternoon.
Still, year-to-date, the giant is down 24% amid China's toughened stance on its independent tech companies and the tightening of anti-monopoly rules. Last week, China passed its Personal Information Protection Law (PIPL), laying out tougher rules on user privacy protection, expected to affect the operations of Chinese techs.