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Business beats market expectations as COVID-19 boom persists beats market expectations as COVID-19 boom persists

FILE PHOTO: People stand under a company sign at the Appliance and Electronics World Expo (AWE) in Shanghai, China March 23, 2021. REUTERS/Aly Song/File Photo

REUTERS -China's Inc's first-quarter revenue beat Wall Street estimates on Wednesday, as growth remained robust in the domestic e-commerce sector following the COVID-19 pandemic.

The Beijing-based company has joined rivals Pinduoduo and Alibaba Group in racking up double-digit sales growth during the pandemic, as people flocked to e-commerce websites to shop for everything from groceries to luxury goods.

Net revenue at, China's largest e-commerce company by revenue, rose 39per cent to 203.2 billion yuan (US$31.57 billion) in the quarter ended March 31, topping analysts' average estimate of 191.83 billion yuan, according to IBES data from Refinitiv.

Sales in its product segment, which includes online retail sales, rose nearly 35per cent to 175.28 billion yuan in the quarter.

Excluding items, posted a profit of 2.47 yuan per American depository share (ADS), compared with analysts' expectations of 2.26 yuan.

Popular brands like Starbucks and sports-retailer Decathlon, along with luxury fashion brands such as Marni and John Lobb, launched flagship stores in the quarter on's e-commerce platform, which, along with those of rivals, has seen strong demand during and after the pandemic.'s earnings beat comes on the heels of a major regulatory crackdown on Alibaba Group Holding Ltd.

In April, Chinese anti-monopoly authorities fined the e-commerce giant a record US$2.75 billion for engaging in a practice known as "choose one from two," wherein platforms penalize merchants for listing products on multiple sites.

Despite how that penalty targeted a rival, the uncertain regulatory environment has dampened investor sentiment across China's internet sector.

U.S.-listed shares of JD have dropped about 13per cent since news of the fine on Alibaba was announced.

Concurrent with the fine on Alibaba, JD withdrew its initial public offering application for its fintech subsidiary JD Digits from the Shanghai Stock exchange.

However, the company's logistics division is set to raise up to US$3.4 billion in an upcoming Hong Kong IPO.

(US$1 = 6.4364 Chinese yuan renminbi)

(Reporting by Eva Mathews in Bengaluru and Josh Horwitz in Shanghai; Editing by Maju Samuel)

Source: Reuters


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