China’s e-commerce firm JD.com Inc. (NASDAQ: JD) on Friday reported better-than-expected fourth quarter revenue, but it posted quarterly profit that fell short of analysts’ estimates, sending its shares down more than 7 percent on Friday.
The company said new revenue increased 38.7 percent to $110.2 billion yuan ($16.8 billion) in the quarter ended December 31, 2017. Analysts’ polled by Thomson Reuters had projected revenue of $108.5 billion.
But the company posted a net loss of 909.2 million yuan in the fourth quarter, which was worse than analysts’ estimate of 463 million yuan loss.
JD shares fell as much as 7.66 percent to $42.66 in the early trading on Friday.
“Our unmatched online shopping experience continued to reshape Chinese e-commerce, win over consumers and drive robust growth in 2017,” said Richard Liu, Chairman and CEO of JD.com. “As we implement our vision of ‘boundaryless retail,’ we are working with top industry players to build China’s most advanced and comprehensive retail ecosystem to reach consumers wherever and whenever they shop. Looking ahead, we will remain focused on using technology, AI and big-data to revolutionize e-commerce while leveraging JD’s established infrastructure to empower our partners.”
JD has been invested heavily in logistics, overseas expansion, luxury goods, offline retail and cloud services. But the company still face intense competition from its rival Alibaba.