JD.com’s Sales Beat Though Food Delivery Foray Slices Profit

JD.com, a major Chinese e-commerce company, reported a stronger-than-expected 22% revenue growth in the June quarter. The company's performance was bolstered by government-directed consumer subsidies and its expansion into new areas, such as meal delivery services. However, the company's foray into food delivery services had a negative impact on its profitability, slicing into its overall profit. Despite this, the company's core e-commerce business remained robust, with the revenue growth outpacing analysts' expectations. The article highlights JD.com's ability to adapt to changing market conditions and diversify its offerings, although the profitability of its new initiatives is still a work in progress. The company's focus on expanding its reach and capitalizing on government support appears to be paying off in terms of revenue growth, even as it navigates the challenges of entering new business segments.