China’s JD.com tops third-quarter revenue estimates as demand holds up

(Reuters) -China’s JD.com topped market estimates for quarterly revenue on ​Thursday, as the e-commerce giant benefited ‌from steady consumer spending on its platform thanks to government subsidies and ‌lower prices.

U.S.-listed shares of the company rose more than 3% in premarket trading.

Chinese retailers are using heavy discounts and price cuts to lure ⁠shoppers who are ‌keeping a tight leash on their spending due to worries over job and income security.

JD.‍com, which is the top retailer of home appliances in China, has also benefited from government-backed trade-in ​policies that allow consumers to exchange older appliances ‌for newer ones.

The company reported a 14.9% rise in total revenue to 299.1 billion yuan ($41.99 billion) in the third quarter ended September 30, compared with analysts’ average estimate of ⁠294.05 billion yuan, ​according to data compiled by LSEG.​

Quarterly net income attributable to JD.com’s ordinary shareholders fell to 5.3 billion ‍yuan from 11.⁠7 billion yuan a year earlier, owing to the company’s hefty investments in international expansion ⁠and new business segments.

($1 = 7.1230 Chinese yuan renminbi)

‌(Reporting by Deborah Sophia in Bengaluru; ‌Editing by Anil D’Silva)