(Yicai) Aug. 17 -- Shares of JD.Com fell despite the Chinese e-commerce giant's 50 percent increase in net profit in the second quarter amid a steady expansion in retail and logistics income.

JD.Com [HKG: 9618] dropped 3.06 percent to HKD136.30 (USD16.90) in Hong Kong as of 1.34 p.m. Its Nasdaq-listed equity [NASDAQ: JD] was 0.4 percent lower in after-hours trading after closing 3 percent down at USD34.88 in New York yesterday.

Net income jumped by half to CNY6.6 billion (USD900 million) in the quarter ended in June from a year ago, the Beijing-based company said in its earnings report. Revenue rose by 8 percent to CNY287.9 billion (USD139.7 billion).

Almost 90 percent of the total revenue came from JD Retail, which includes online healthcare platform JD Health and supply chain management provider JD Industrials, as the sum rose by almost 5 percent to CNY253.3 billion.

In April, the retail arm opened two JD Malls in Dongguan and Kunming, as well as over 720 home appliance stores in lower-tier markets. JD Health launched one of China's first online dermatology centers with 40 experts and over 3,000 registered skin doctors from leading hospitals.

Guotai Junan Securities wrote in a recent research report that the market has underestimated JD.Com’s retail leadership as the firm's efficiency can help it squeeze rivals' profits. The brokerage is optimistic about the future as JD.Com is expected to introduce more third-party merchants, explore lower-tier markets, and strengthen its supply chain to accelerate turnover and cut costs, it added.

One of the quickly widening segments in the first half was JD Logistics with a revenue increase of 31 percent to CNY41 billion (USD5.6 billion). A highlight was a new cargo route between Beijing Daxing International Airport and Shenzhen which opened in April. The logistics arm operated over 1,600 warehouses with a floor area of over 32 million square meters as of June 30.

JD.Com's on-demand delivery platform Dada boosted its revenue by 23 percent to CNY2.8 billion. However, the parent's new business revenue fell by 31 percent to CNY4.3 billion.

"JD.Com delivered both revenues and profitability ahead of our expectation in the second quarter, an encouraging trend we are happy to see amidst our business adjustment and a highly competitive market environment," Chief Financial Officer Ian Su Shan said.

JD Retail continued to gain market share in home appliances and electronics while its supermarket category made steady progress to build a healthier business model, Shan said. "We are encouraged by such solid results, and we will continue to further optimize JD’s business model and invest in JD’s long-term sustainable growth," the CFO added.

Editor: Emmi Laine