JD.COM Inc., China’s No.2 e-commerce company with a business model similar to Amazon.com Inc., Friday reported a bigger quarterly net loss due to costs related to a partnership with Tencent Holdings Ltd. and higher spending aimed at better competing with market leader Alibaba Group Holding Ltd.

    Beijing-based JD.com, reporting quarterly results for the first time since going public in May, said its net loss widened to 582.5 million yuan (US$93.9 million) in the quarter that ended June 30. In the same quarter last year, the company reported a loss of 28.3 million yuan.

    Expenses in the latest quarter jumped 66 percent to 29.4 billion yuan.

    The company said the net loss was mainly due to the amortization of intangible assets and business acquisitions related to its strategic partnership with Tencent.

    JD.com’s initial public offering (IPO) that raised US$1.78 billion in May has enabled the company to spend on warehouses, delivery vehicles and technology as it steps up competition to larger rival Alibaba.

    Tencent, China’s biggest mobile gaming and social media company, took a 15 percent stake in JD.com in March to better compete against Alibaba. This stake was increased to 17.6 percent after JD.com’s listing. (SD-Agencies)