JD.COM, China’s second-biggest e-commerce company, reported an unexpected profit in the third quarter of the year, though it lost about 100 merchants to fierce competition in the run-up to the Singles Day promotion.

JD posted net earnings of 1 billion yuan (US$151 million), its highest-ever quarterly profit, in the three months to Sept. 30, far above an analyst consensus forecast of a 213 million yuan loss.

The unexpected profit and a 39-percent rise in revenue boosted the company’s shares. The company reported a net loss of 807.9 million yuan in the third quarter last year.

More recently, JD said it had lost roughly 100 merchants to competition during the promotion period for Singles Day, China’s biggest online sales event which ended Saturday.

Chief financial officer Sidney Huang said the brands that left the platform were all major Chinese clothing brands, and that the company expected apparel growth to remain stagnant for the next two quarters before recovering.

JD accused its main competitor, Alibaba, of engaging in “coercive” tactics, saying its rival obliged merchants to choose between online platforms.

“Based on the feedback we received from these merchants, the move was mainly due to the coercive tactics from our competitor,” Huang said on a call with analysts.

Alibaba said JD’s allegations were false, and that merchants were free to choose which platforms they use.

“Merchants make their own choices. Alibaba’s scale and technological advantages make it the preferred partner for the world’s top brands,” an Alibaba spokeswoman said.

JD.com booked US$19 billion in total sales over the Singles Day festival, which will be reflected in fourth-quarter earnings. Alibaba recorded over US$25 billion in revenue during the event’s peak Saturday.(SD-Agencies)