Investing.com – JD (NASDAQ:JD).com Inc (HK:9618) saw better-than-expected revenue in the second quarter on the back of increased sales across its online malls, as well as securing an investment from global private equity firm Hillhouse Capital Group.
JD.com’s Hong Kong shares jumped 7.75% to HK$261.40 ($X) by 1: 42AM ET (6: 42AM GMT).
The e-commerce giant saw its fastest rate of revenue growth in three years during the quarter, with sale sales recording a 34% jump to CNY201.05 billion ($28.9733 billion).
The jump was attributed to the release of locked-up consumer demand after the lifting of COVID-19 lockdown measures throughout the country in April, as well as a successful “6.18” anniversary promotion event.
Increased usage in lower-tier cities and the wider use of online shopping in general due to COVID-19 is forecasted to drive long-term demand, and make up for the success of the “6.18” event being non-replicable in the third quarter.
Meanwhile, Hillhouse will invest more than $850 million into JD.com subsidiary JD Health via the purchase of Series B preference shares. The funds will also be invested into JD Health’s pharmacy supply chain, and JD.com will remain JD Health’s majority shareholder after the transaction closes in the third quarter of 2020.