JD.com’s fourth-quarter revenue beats estimates helped by focus on lower prices

JD.com reported revenue of 306.1 billion yuan (US$43.1 billion) for the fourth quarter, an increase of 3.6 per cent from the same period a year ago and above expectations, bolstered by the e-commerce giant’s efforts to add lower-priced products to its platform.

JD.com also said on Wednesday it will repurchase up to US$3 billion worth of its shares, including American depository shares, over the next 36 months.

The company reported net income attributable to shareholders of 3.4 billion yuan for the quarter, up more than 13 per cent from 3 billion yuan a year earlier. Net revenue for the full year came in at 1.085 trillion yuan, up 3.7 per cent from 2022.

Sandy Xu, JD.com CEO, said growth was driven by the company’s “focus on user experience and price competitiveness”.

“We have seen more new merchants joining JD’s marketplace … at an accelerated rate,” said Xu on an earnings call with analysts late on Wednesday. “Their participation has greatly improved the diversity of product offerings ... leading to accelerated growth in both the number of users and orders.”

During its Singles’ Day Grand Promotion, the company said it achieved records in transaction value, order volume and number of users. In the fourth quarter, JD Logistics provided integrated supply chain solutions for more Chinese brands going overseas and global customers.

“New users from lower-tier markets grew faster in the fourth quarter compared with previous quarters,” said Xu on the earnings call.