TMTPOST -- The American depositary receipts (ADRs) of JD.com popped as much as 6.1% at the morning trade before paring most of gains, eked out a 0.4% rise as of close on Thursday. Shares still outperformed the U.S. stock market as S&P 500 index crashed 1.8% that day after the leading Chinese e-commerce company posted much stronger sales than expected, buoyed by Beijing’s growing fiscal stimulus to boost consumption.

Credit：Freepik

JD’s top and bottom line easily beat Wall Street expectation for the quarter ended December 31, 2024. it reported total net revenue of RMB346.99 billion (US$47.91 billion) with a 13.4% year-over-year (YoY) increase, whereas analysts polled by FactSet anticipated revenue would be RMB333.0 billion, representing a 8.8% YoY rise. That was JD’s strongest sales growth since the first quarter of 2022, the onset of the Covid pandemic. The company further accelerated sales from a 5.1% YoY increase three months ago. Net revenue for the full year were RMB1,158.8 billion, up 6.8% from 2023.

Net income attributable to JD’s ordinary shareholders for the December quarter surged 190.8% from a year ago to RMB9.85 billion, versus analysts estimated RMB7.6 billion. That was far more stellar than the preceding quarter that saw a 47.8% YoY increase in net profit. On non-GAAP basis, adjusted net income was RMB11.3 billion with 34.5% YoY increase following a rise of 23.9% for the September quarter. The adjusted diluted net income per American depositary share (ADS) gained 203.8% YoY to RMB6.47, and non-GAAP diluted net income per ADS as RMB7.42, up 40% YoY, compared with a 29.5% YoY for the third quarter.

By segment, JD Retails brought RMB307.06 billion with a 14.7% YoY increase, compared with a gain of 6.1% in the previous quarter. Operating income of the core business stood at RMB10 billion with a 44.7% YoY increase following a rise of 5.5% three months earlier. Revenue from JD Logistics rose 10.4 YoY to RMB52.1 billion following a 6.6% increase in the second quarter. Operating income for the June quarter soared 37.1% YoY to RMB1.82 billion after a 624.3% surge from July to September. Revenue from New Businesses, which includes Dada, JD Property,Jingxi and overseas businesses, dropped 31% YoY to RMB4.68 billion, compared with a 25.7% decline for the third quarter. The segment widened operating loss 11.3% YoY to RMB885 million, after the loss widened 220% YoY a quarter earlier.

“We are pleased to report a strong quarter to close out 2024 amidst rebounding consumption. Our top line growth returned to double digits year-on-year, and bottom line also achieved healthy expansion. In addition, most of our product categories as well as key metrics such as our quarterly active users and shopping frequency saw strong double-digit growth year-on-year in Q4, reflecting our growing mindshare among consumers,” said JD CEO Sandy Xu in a statement on Thursday.

JD saw strong double-digit growth momentum across most of its categories and revenue streams in the fourth quarter, while the electronics and home appliance category witnessed a notable swing with a 16% YoY increase in revenue, Xu told analysts on an earnings call. JD is well-positioned to benefit from the rebound in consumption in 2025 given the Chinese government stimulus polices adding to the tailwind, Xu said.

Another bright spot in general merchandise. Revenue from general merchandise for the fourth quarter grew 11% YoY and within the business, the supermarket revenue delivered double-digit YoY increase for four quarters in a row, Xu said. He attributed to the strong performance partially to the early start of the Chinese New Year promotion, but more importantly, to the effect of improvement in JD’s supply chain capabilities in the supermarket category.

JD has seen the policies that Chinese government introduced to stimulate consumption since the second half of 2024 have driven a steady recovery in consumer confidence, and mobile phone demand has rebounded and laptop PC sales remain very strong since the beginning of this year, Xu said. He acknowledged home appliance sales early this year were temporarily affected as some of the sales were pull-forward to the end of 2024, but pointed out sales of home appliances have shown the month-on-month acceleration in the first quarter.

While the stimulus policies have effectively bolstered home appliance sales since the second half of last year, Xu said JD anticipated more long-term bank of home appliance industry upgrade and positive structure change in the industry, as well as the vast potential demand unleashed by the government’s trade-in program of home appliance.

In addition to financial results, JD announced new repurchase program. It may buy back up to US$5.0 billion worth of shares, including ADSs, over the next 36 months through the end of August, 2027.