JD.com Plans to Sell Its Finance Unit as Shares Rise | Financial Buzz

JD.com Plans to Sell Its Finance Unit as Shares Rise

JD.com, Inc. (NASDAQ:JD) China’s second-largest e-commerce company, reported its third-quarter revenue that slightly topped analysts’ estimates. The company also announced restructuring plan for its finance unit, pushing the share up more than 10 percent.

The online shipping company Tuesday said revenue rose 38 percent to 60.73 billion yuan ($9.1 billion) for the quarter ended September, slightly beating an average estimate of 60.2 billion yuan. However, the company still posted a third-quarter net loss of 921.6 million yuan ($121 million), 51 percent worse than a loss of 530.8 million a year earlier.

“We are delighted to announce another strong quarter of results, with solid growth in revenue and new users, as Chinese consumers increasingly prefer to shop online for high-quality products. Long-term investment in our business model is clearly winning over the market and changing the dynamics of e-commerce in China. Looking ahead, we will continue to pursue growth while stepping up our investment in cutting-edge technologies to further enhance user experience.” JD.com CEO Richard Liu said.

The Chinese online retailer also announced restructuring plan for its finance unit. JD Finance was launched in 2013 and it offered a range of financial services and products to consumers and small businesses in China. The company said it would sell its whole stake in JD Finance to Chinese investors, including the company CEO Richard Liu.

JD.Com shares jumped 12.7 percent to $26.73 in the early trading. The stock fell 26.5 percent this year. The company now expected fourth-quarter revenue to be between 75.0 billion and 77.5 billion yuan ($10.9 billion-$11.3 billion).

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