By Deborah Mary Sophia and Sophie Yu
March 5 (Reuters) – China’s JD.com missed market estimates for quarterly revenue on Thursday as stiff competition and waning benefits from government subsidies ate into demand at the e-commerce giant.
Consumer demand in China has weakened in recent years as a prolonged property sector crisis, employment concerns and geopolitical tensions weighed on growth in the world’s second-largest economy.
That has hurt retailers such as JD.com, the largest seller of home appliances in China, as shoppers cut discretionary purchases.
While JD.com has benefited in recent quarters from government subsidies, the incremental impact is fading as year-on-year comparisons become tougher.
The company has also leaned on other product categories and new revenue streams such as its instant retail business and advertising unit to drum up sales.
“Our growth drivers are becoming more diversified, general merchandise category maintains a healthy growth trend, while service revenue including advertising will sustain rapid growth momentum,” JD.com chief executive Sandy Xu said during a conference call with analysts on Thursday.
The electronics and home appliances category is expected to remain under pressure in the first quarter due to a high base, but growth may accelerate in the second half and exceed the first, she told analysts during a quarterly call.
Xu said investment in the food delivery business will decline in 2026 compared with 2025.
U.S.-listed shares of the company dipped about 2% in early trading.
JD.com is also facing mounting competition as e-commerce rivals such as Alibaba and PDD Holdings ramp up discounts on their China-focused platforms. Heavy investment in promotions and price cuts has weakened profit margins.
Revenue rose 1.5% to 352.3 billion yuan ($51.12 billion) in the fourth quarter ended December, below analysts’ average estimate of 353.86 billion yuan, according to data compiled by LSEG.
Net loss attributable to JD.com’s ordinary shareholders was 2.7 billion yuan for the quarter, compared with a profit of 9.9 billion yuan a year earlier.
($1 = 6.8918 Chinese yuan)
(Reporting by Deborah Sophia in Bengaluru and Sophie Yu in Beijing; Editing by Himani Sarkar, Maju Samuel and Nivedita Bhattacharjee)
