JD.com Inc, China's second-biggest e-commerce company, succeeded in trimming its net loss substantially while posting a solid growth in its net profit in the second quarter, Bloomberg reported.    

The net profit of Alibaba's main rival rose by 42 percent to 65.2 billion Yuan ($9.83 billion) in the second quarter, well within the range of the company's forecast of 64.2-66.2 billion Yuan. Its net loss came down to 132.1 million Yuan from 510.4 million Yuan from a year earlier, surpassing the expectations of most analysts.

Like Us on Facebook

The surge in profit and subsequent decline in the company's net loss is largely due to the selling of higher margin products and gaining substantial fees from merchants. The company's revenue from direct sale rose 40 percent in the quarter while clocking an impressive 67 percent jump in sales from services and other businesses.

The gross merchandise volume (GMV) or the total of goods sold surged by 47 percent in local currency to $24.1 billion.    

"We are pleased to record another strong quarter of healthy growth, with improving operating performance driving customer satisfaction," JD.com CEO Richard Liu said in the earnings release.

JD.com now plans to woo online shoppers through direct sale, a model that is followed by it competitor Amazon. The company predicts that this model would help to counter the problem of counterfeits and substandard goods.

For the third quarter, the e-commerce company has projected flat revenue of $8.9 billion to $9.2 billion, which is below market estimation of $9.23 billion. Experts say that JD.com missing the third quarter estimates clearly reflects the ongoing saturation in China's e-commerce sector.

TagsJD.com, Alibaba, china, Chinese E Commerce Company