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JD.com Feels Heat As Sales Of Big Ticket Goods Drops

Shares of JD.com Inc, Chinese e-commerce company, came under additional pressure this week after the firm clocked its slowest quarterly income development since its IPO (initial public offering) in 2014. JD.com, which is supported by Alphabet Inc’s Google, Walmart Inc, and China’s Tencent Holdings, has already lost almost 50% of its market capitalization in 2018 as it faces intense rivalry for Chinese online users.

This week executives claimed that slower sales in its fundamental e-commerce business, especially big ticket goods, dented the earnings growth in quarter three, claiming that they expect an improvement in profits in 2019. While income increased 25% a year earlier from the same period, it lagged forecasts by analysts and was well below earlier development rates, which crossed at more than 60% in 2015. The firm also forecast quarter four sales development from 18% to 23%, below an average estimate by analyst of 23.5%.

On a similar note, JD.com earlier claimed that it has started off a round of fundraising at its logistics arm with an aim of minimum $2 Billion. In addition to this, it eventually aims to list the company overseas, sources with direct acquaintance of the issue claimed to the media in an interview.

JD.com, which only falls behind Alibaba Group Holding Ltd in e-commerce sector of China, has invited a particular group of sponsors to join the round of funding that values JD Logistics, its logistics business, at almost $10 Billion, 2 of the sources claimed to the media. The decision arrives as major e-commerce firms of China are seeking to bulk up their logistics commerce to back their worldwide growth ambitions and drive incomes by providing services to 3rd party bodies. Hillhouse Capital Group, the Chinese investment firm, and Sequoia Capital China will supposedly be lead sponsors of funding round for JD Logistics.

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