JD sales beat estimates as customers move online

China’s JD beat analysts’ estimates for quarterly sales, as the firm benefited from a shift in shopping habits of domestic consumers who have largely moved to online ever since the outset of the Covid-19 pandemic.

The results coincide with growing tensions between Beijing and Washington. Several Chinese companies are putting off plans for US listings amid tensions between the world’s top two economies, while those listed in New York are seeking to return to exchanges closer to home. In June, JD raised about $3.87 billion in its Hong Kong secondary listing.

JD executives did not offer any comments on US-China tensions on a conference call with analysts on Monday.

China, which has under a thousand active Covid-19 cases currently, has largely emerged out of lockdowns but demand is still picking up in many sectors.

Retail sales in the world’s second-largest economy slipped in July, dashing expectations for a modest rise, as consumers failed to shake off wariness about the coronavirus, while the factory sector’s recovery struggled to pick up the pace.

The company’s net product revenue, which includes online retail sales, rose 33.5 percent to $25.74 billion in the second quarter.

Net income attributable to shareholders rose to $2.38 billion from $89.4 million a year earlier.

The company’s total net revenue rose 33.8 percent to $28.98 billion in the quarter ended June 30.