China's ecommerce market is heading toward $1.5 trillion in 2025, and the latest earnings reports from three major players reveal just how differently companies are approaching this massive opportunity. The third quarter came on the heels of the 618 Shopping Festival, which essentially set the temperature for consumer sentiment through year-end.
What's interesting is that amid ongoing tensions between China and the US, these ecommerce giants are each carving out distinct strategies to capture evolving demand. Here's how they're doing it.
ATRenew Hits Record Highs on the Pre-Owned Electronics Wave
ATRenew Inc. (RERE), China's leading platform for pre-owned consumer electronics, delivered impressive results on Thursday. The company posted total net revenues of RMB 5.15 billion ($723.3 million) for the third quarter ended September 30, marking a 27.1% jump year-over-year and hitting a record high.
The growth story here is straightforward: national subsidies and policies aimed at stimulating domestic consumption are making pre-owned electronic devices more attractive to Chinese consumers. Income from operations surged 385.1% year-over-year to RMB 120.8 million ($17.0 million), thanks to enhanced in-store and door-to-door fulfillment capabilities. The company moved 10.9 million consumer products during the quarter, up from 9.1 million in the same period last year.
ATRenew is also betting big on AI, deploying fully automated inspection lines to minimize manual intervention and human error. Looking ahead, the company guided fourth-quarter revenues between RMB 6.08 billion and RMB 6.18 billion ($0.86 billion to $0.87 billion), representing year-over-year growth of 25.4% to 27.4%.
PDD Holdings Beats Earnings Despite Revenue Slowdown
PDD Holdings Inc. (PDD), the parent company of discount ecommerce platform Temu, reported an earnings beat on Tuesday, though revenues came in slightly soft. The company's revenues grew 9% year-over-year to RMB 108.28 billion ($15.22 billion), driven by online marketing and transaction services growth. That just barely missed market estimates of RMB 108.41 billion ($15.24 billion) and signals a sequential slowdown in revenue growth as competition intensifies.
But here's where things get interesting: non-GAAP net income climbed 14% year-over-year to RMB 31.38 billion ($4.41 billion). Earnings landed at RMB 21.08 ($2.96) per share, significantly crushing consensus estimates of RMB 16.8 ($2.36) per share. So while top-line growth is cooling off, PDD is managing to extract more profit from what it's got.
JD.com Trades Profits for Growth Investments
JD.com Inc. (JD) reported last week with revenues up 14.9% year-over-year to RMB 299.1 billion ($42.0 billion), beating market expectations of RMB 294.54 billion ($41.40 billion). JD Retail, the company's largest segment, pulled in net revenues of RMB 250.6 billion ($35.22 billion), representing 11.4% year-over-year growth.
Earnings came in strong at RMB 3.73 (52 cents) per share, well above consensus estimates of RMB 2.65 (37 cents) per share. But the profitability picture tells a more complex story. JD.com is deliberately investing in new business lines like food delivery, and that's putting pressure on margins. Adjusted operating profits contracted to just RMB 211 million ($29.66 million).
The bright spot? JD.com's platform and advertising business generated 24% year-over-year revenue growth, accelerating from 22% in the prior quarter. So the company is essentially funding its expansion ambitions with cash flow from its advertising engine.
Market Reaction
As of Friday's publication, shares of ATRenew were up 0.49% to $4.09, PDD Holdings gained 0.37% to $113.35, and JD.com climbed 1.65% to $28.86.