JD.com, the Chinese e-commerce giant, exceeded analyst expectations for both profit and revenue in the third quarter of this year. The company's success can be attributed to improved performance in its main business lines and effective cost controls.
Net profit for the quarter increased by 33% year-on-year to reach 7.94 billion yuan ($1.09 billion), surpassing the median estimate of 6.94 billion yuan from a FactSet poll of analysts. Meanwhile, revenue grew by 1.7% to reach 247.70 billion yuan, slightly higher than the estimated 246.43 billion yuan.
The company's operating profit saw a 6.6% rise due to a modest increase of 0.8% in the cost of revenues. Additionally, non-operating income, which included fair-value gains from investments, contributed to the positive bottom line.
JD.com's Chief Executive, Sandy Xu, attributed the company's success to its price competitiveness and supply-chain advantages. Chief Financial Officer Ian Su Shan highlighted the expansion of market share in core categories such as home appliances and electronics, as well as the gradual momentum gained in general merchandise during the quarter.
Overall, JD.com's strong Q3 results showcase its ability to outperform expectations and maintain its position as a dominant player in the Chinese e-commerce market.