Today, JD.com, a Chinese e-commerce giant, published its slowest quarterly revenue growth since its initial public offering in 2014.
The company is backed by Google, China’s Tencent, and Walmart. It reported an increase of 25 percent in revenues for the previous quarter, wihich totalled to 104.8bn yuan (£11.75 million).
However, the growth was well below the previous rates, which were able to hit 60 percent in 2015. Reportedly, it missed the forecasts of the analysts, prompting its shares to decline as much as 4 percent this morning.
The operating loss also increased by almost 23 percent year on year, at 650.7 million yuan for the quarter as compared to the 502.4 million yuan that was recorded during the same period last year.
Despite the slowdown, Sidney Huang, JD’s chief financial officer, said that the company had put in a “strong performance across the business.” He said that it was driven by a focus on improving customer experience.
He added: “We will continue our disciplined strategy of investing in key technologies as we focus on optimising operations and driving economies of scale over the coming quarters.”
JD.com has seen its shares plunge by more than 44 percent this year amid the growing concerns over the Sino-US trade tariff war. Alibaba, it’s bigger rival in the Chinese e-commerce space, has had similar fortunes, albeit to a lesser extent as it reported decline of 11 percent.
The firm has also had to contend with the arrest of Richard Liu, its chairman who spent a night in a cell in Minnesota, US. He was alleged of sexual misconduct earlier this year. JD.com has said that the allegations were unsubstantiated.
Liu said that the third quarter results were solid. He pointed out that JD.com had made some steps forward in “retail infrastructure solutions.”
The firm rolled out its logistics network to consumers during the quarter. It initially offered its own parcel delivery service to users in Shanghai, Guangzho, and Beijing. It included a points system for customers who opted for recycled packaging for their orders.
Despite the slowing growth, JD.com reported a 14.6 percent in annual active customer accounts to 305.2 million in the year ending September 30. It was a rise from the 266.3 million reported during the same period last year.