Aug 15 (Reuters) - Chinese e-commerce group JD.com ( JD )

on Thursday reported forecast beating second-quarter

profits, helped by price cuts that attracted cost-sensitive

consumers to its platform.

JD.com's ( JD ) U.S.-listed shares rose as much as 3.5% in

premarket trading.

Major Chinese vendors like JD.com ( JD ) and Alibaba ( BABA ) have

increased focus on discounts and lower-priced goods as Chinese

shoppers have become more cautious about spending.

A stuttering post-COVID recovery in China has benefited

low-cost e-commerce players such as PDD Holdings ( PDD ).

Increased competition has triggered a price war between larger

rivals as they look to attract the same pool of customers.

The retailers rely heavily on major discounting events such

as China's mid-year e-commerce sales festival which took place

in June, to boost overall growth and exposure.

The so called "618" shopping event, named after the June 18

founding date of e-commerce provider JD.com ( JD ), but embraced by all

platforms, gauges the market sentiment among household

consumers.

JD.com ( JD ) said in June its turnover and order volumes reached a

new high over the festival period, which ran from the end of May

to June 18 this year.

JD.com's ( JD ) second-quarter profit rose 73.7% to 9.36 yuan per

share, excluding items, compared with estimates of 6.07 yuan,

according to LSEG data.

JD.com's ( JD ) general and administrative costs reduced by 9.6% in

the quarter.

After JD.com ( JD ) prioritised a "low price" strategy at the close

of 2022, its share price has experienced a decline, plummeting

from approximately $60 to the current value of around $26.

Jacob Cooke, CEO of e-commerce consultancy WPIC Marketing +

Technologies, said despite economic challenges, consumers are

not only motivated by price-product quality and shopping

experience also contributes to driving conversions and

cultivating marketplace loyalty.

"JD.com ( JD ) should lean into its strengths rather than engaging

in a race to the bottom of excessive discounts," he said.

The company's total revenue rose 1.2% to 291.40 billion yuan

($40.71 billion) in the second quarter, compared with estimates

of 292.89 billion yuan.

($1 = 7.1585 Chinese yuan renminbi)