Chinese e-commerce giant has posted better than expected second-quarter results, with revenue up by 26.2% to RMB253.8bn ($39.3bn) from the same period of last year.

For the three months to 30 June, the company’s net service revenues increased by 49.2% year-on-year to RMB34.1bn ($5.3bn).

Income from operations during this period was $46.6m (RMB300.8m), a decrease from $0.772bn (RMB5.0bn) a year earlier.

In the quarter, net income attributable to ordinary shareholders was RMB794.3m ($123.0m), compared to RMB16.4bn ($2.53bn) in the prior-year quarter.

Diluted net income for each American depositary share (ADS) for the second quarter was RMB0.50 ($0.08), compared to RMB10.47 ($1.61) a year earlier.

The retailer also recorded a 27.4% increase in annual active customer accounts to 531.9 million in the twelve months to 30 June. chairman and CEO Richard Liu said: “Over the past 18 years since our founding, has always placed the interests of our customers, partners and employees foremost while upholding our long-standing business principle of doing business the right way.

“Today, JD has become China’s leading supply chain-based technology and service company, serving a growing base of millions of partners and 532 million customers.

“With hundreds of thousands of full-time employees and our next generation smart supply chain and infrastructure network, JD has become a new type of real-economy based enterprise supporting China’s development for the long-term.”

Over the last two months, has launched official flagship stores for various beauty brands, including LVMH Group, Estee Lauder and L’Oréal.

The company had more than 320,000 employees, excluding part-time staff and interns, as of the end of June.

Earlier this month, Chinese e-commerce company Alibaba Group posted revenues of RMB205.74bn ($31.87bn) for the first quarter of this year.

This represented a year-on-year increase of 34% but fell short of analysts’ average expectation of RMB209.4bn ($32bn).