Chinese e-commerce giant JD exceeded revenue expectations in the June quarter, net sales up by 23 per cent to 50.28 billion yuan (US$21.28 billion).

The company has cited forays into the convenience-store sector and supermarkets, as well as the harnessing of artificial intelligence in its advertising and logistics operations for the improved result, as it tries to be less reliant on its core online retail platform for growth.

Net income for JD reached 618.8 million yuan ($90.1 million), a significant turnaround from the 212.4 million yuan net loss of the same period last year.

Significantly, the company’s logistics business broke even during the quarter. 

Discussing the results during an analyst briefing, a senior executive said the company was now turning its attention to lower tier Mainland China cities for growth, hoping to broaden its customer base. That strategy has been working for JD’s archrival Alibaba to date.

Other plans afoot include developing more private-label products and improving its WeChat interface to increase customer engagement there.