China: JD.com Misses Revenue Estimates

(Reuters) – Chinese company JD.com Inc. reported Monday a third-quarter revenue lower than analysts' estimates of sluggish sales of its core business of e-commerce. Revenues were 104.8 billion yuan (15.09 billion US dollars) for the quarter ended September 30th, compared to an average estimate of 106.2 billion yuan from 22 analysts, according to Refinitiv's IBES data.

JD.com's sales are down on a seasonal basis in the third quarter, as a result of the promotion period of November's Singles Day promotion. This year, it sold 158.9 billion yuan of goods during this event, which represents an increase of 17% over the previous year.

JD.com, backed by Walmart Inc., Google Alphabet Inc. and Tencent Holdings, recently announced the news of the arrest of its chief executive, Richard Liu, following alleged sexual misconduct in the United States .

He was released after a night in jail and JD.com said that the charge against Liu was unfounded.

The company has made no further comment on the issue in its first quarterly results since the arrest.

Net income for the quarter was $ 418.9 million, or 30 cents per US depository share.

Fears of a slowdown in growth have caused JD.com's shares to fall by more than 44% this year. Shares of its biggest rival Alibaba Group Holding fell 11 percent.

Both companies are striving to reach new consumers in Southeast Asia and rural China, with declining demand in major cities. Earlier this month, Alibaba lowered its sales forecast for the year, due to the economic uncertainty associated with the trade war.

JD.com has announced the transfer of its warehousing business to a separate unit, providing third-party branded logistics management as well as its own platform, with the goal of increasing revenue.

(The story has been redefined to correct the wording of paragraph four)