JD.com Posts First Quarterly Revenue Decline as Subsidy Pullback Hits Electronics Sales

JD.com Inc. reported its first quarterly revenue decline, as reduced government subsidies weighed on sales of electronics and home appliances, its core business.

Second-quarter revenue fell 2.9% to 346.4 billion yuan, marking the company's first negative growth since its listing. The contraction sent its US-listed shares down roughly 6.6% in early trading, even as JD.com reversed a four-quarter streak of declining profitability by posting a 14.5% increase in net income to 7.1 billion yuan.