Chinese e-commerce giant JD announced its second-quarter earnings on Tuesday. Net revenue rose 5.4% to RMB 267.6 billion ($40.0 billion), representing the firm’s slowest yearly growth, but it still surpassed analysts’ expectations. The company reported RMB 6.5 billion in net income, up 41% from last year. The improvement in profitability is mainly due to increased revenue in retail and logistics businesses and expense reduction in marketing and general administration. Meanwhile, the company’s fulfillment expenses as a percentage of net revenues increased by 0.3% compared to the same period last year, primarily due to additional costs incurred to support supply chains during the Covid-19 pandemic. “The second quarter is the most challenging quarter since we’re listed,” CEO Xu Lei said in the earnings call, saying Covid resurgence and weak macroeconomics have added pressure. [JD]
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