JD.com posts surprise 1.01b yuan profit in Q3

Beijing

JD.com Inc, the operator of China's second-biggest online mall, reported a surprise quarterly profit as investments in logistics and new arenas such as fashion attracted shoppers.

Net income was 1.01 billion yuan (S$207 million) in the three months ended September, the Beijing-based company said on Monday. That compares with the 114.1 million yuan loss expected by analysts. Sales for the quarter rose 39 per cent to 83.7 billion yuan, slightly above estimates.

The result is a boon for JD.com, which is rapidly broadening its portfolio beyond its traditional strength in consumer electronics as it pursues an asset-heavy vision for online retail. While platforms such as Alibaba Group Holding Ltd's Taobao act as marketplaces for merchants, more than 90 per cent of JD's revenue typically comes from direct online sales. It owns a fleet of vehicles and warehouses nationwide, a network it says …