(Yicai Global) May 18 -- Revenue at JD.Com rose by more than expected in the first quarter of this year, as consumers turned to the Chinese e-commerce giant amid tightening Covid-19 restrictions in the country. Its New York-listed shares jumped.

Revenue gained 18 percent to CNY239.7 billion (USD35.5 billion) in the three months ended March 31, the Beijing-based company’s earnings report showed yesterday. That was more than the average CNY236.7 billion predicted by analysts. But JD made a net loss of CNY3 billion (USD472 million) in the quarter, compared with a year-earlier CNY3.6 billion profit.

The company told Yicai Global the loss was mainly due to continued investment in infrastructure, technology, staff welfare as well as the additional cost of ensuring supplies to Shanghai during lockdown and subsidies to vendors to mitigate the impact of the Covid-19 outbreak.

Shares of JD [NASDAQ: JD] ended 4.2 percent up at USD53.57 in New York yesterday, also buoyed by Chinese Vice Premier Liu He saying China’s government supports the tech sector’s development and public listings by internet firms. In Hong Kong today, JD [HKG: 9618] fell 1.1 percent to end at HKD212.40 (USD27.06).

The resurgence of Covid-19 in China has had a significant impact on retail spending, founder and Chief Executive Xu Lei said on an earnings conference call, adding that April’s order cancellation rate rose because of longer delivery times due to the restrictions. But the situation has improved this month, he said.

In support of Shanghai’s battle with Covid, JD transported more than 80,000 tons of essential items, including medicines and maternity products, and dispatched over 4,000 couriers to help with local supply operations over one month, the firm said.

Editor: Dou Shicong, Futura Costaglione