(Corrects last paragraph to say shares have risen 58 percent
since the IPO, not 44 percent. The error first appeared in
Aug 15 JD.com Inc, China's No.2
e-commerce company, reported a bigger quarterly net loss due to
costs related to a partnership with Tencent Holdings Ltd
and higher spending aimed at better competing with
market leader Alibaba Group Holding Ltd.
The company's American Depositary Shares were down 2.2
percent at $29.35 in early trading on Friday.
JD.com, reporting quarterly results for the first time since
going public in May, said its net loss widened to 582.5 million
yuan ($93.9 million), or 5.86 yuan (94 cents) per ADS in the
quarter ended June 30.
In the same quarter last year, the company reported a loss
of 28.3 million yuan, or 0.57 yuan per ADS.
Expenses in the latest quarter jumped 66 percent to 29.4
The company said the net loss was mainly due to the
amortisation of intangible assets and business acquisitions
related its strategic partnership with Tencent.
Tencent, China's biggest mobile gaming and social media
company, took a 15 percent stake in JD.com in March to better
compete against Alibaba. This stake was increased
to 17.6 percent after JD.com's IPO.
JD.com also forecast full-year 2014 capital expenditure at
3.5-4.5 billion yuan ($569-732 million), company executives said
in an earnings call following its second-quarter results.
The increase in the loss per ADS reflected the conversion of
preferred shares to ordinary shares ahead of the company's IPO.
JD.com beat market estimates on an adjusted basis, however.
The company reported an adjusted loss of 0.01 yuan, or nil
cents, per ADS and a 64 percent rise in revenue to 28.61 billion
yuan, or $4.6 billion.
Analysts had expected an adjusted loss of 2 cents per ADS
and revenue of $4.39 billion.
The gross value of goods sold more than doubled to $10.2
billion, while fulfilled orders doubled to 163.7 million.
Active customer accounts rose to 38.1 million from 19.6 million.
The company said it expected revenue in the current quarter
to increase by 55-61 percent to 28-29 billion yuan.
JD.com's ADRs have gained about 58 percent since they
started trading in May.
(Reporting by Soham Chatterjee in BANGALORE; Additional
reporting by Paul Carsten in BEIJING; Editing by Kirti Pandey,
Ted Kerr and David Evans)