Subscribe Missed on Revenue But Beat Expectations on Net Income and EPS
COVID-19 and China

Nov 19, reported its third-quarter net income climbed to CNY 3 billion(USD 0.4 billion), compared to CNY 1 billion for the same period last year. Profit was expected to come in at CNY 1.1 billion. The profit mainly resulted from the initial public offering  of Farfetch. reported its net revenues of CNY 104.8 billion (USD 15.3 billion), growing 25.1% from the same period in 2017. Analysts polled by FactSet had expected to report revenue of CNY 106.09 billion

The operating margin of JD Mall shrank slightly to 2.2%, 0.1% (YoY) points lower.

Diluted net income per ADS from continuing operations for the third quarter of 2018 was CNY 2.03 (USD 0.30), compared to CNY 0.69 for the third quarter of 2017. Non-GAAP diluted net income per ADS from continuing operations for the third quarter of 2018 was CNY 0.80 (USD 0.12), compared to CNY 1.52 for the same quarter last year, which beat EPS estimates. gave out a downside guide, forecasting the net revenues for the fourth quarter of 2018 would be between CNY 130 billion and CNY 135 billion, representing a growth rate between 18% and 23% compared with the fourth quarter of 2017.'s shares were down more than 5%  in pre-market trade on Nasdaq, and its stock has fallen 55% since its high in January this year.

As China is tightening its regulation of tech companies and facing the economic impact of the trade war. Investors continue to question the strength of consumer spending in the world's second largest economy. Even Alibaba Group,'s main enemy, cautioned that 2019 revenues would be weaker than it had originally forecast, citing "fluid macro-economic conditions", according to The Street.

——Author: LinYan. Write to LinYan at 

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