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Ben Jiang

Chinese e-commerce giant JD.com saw its second-quarter net profit soar 15 per cent year on year to 7.1 billion yuan (US$1.1 billion), beating market expectations despite a slight dip in overall revenue, as it contends with sluggish domestic consumer demand, fierce competition and a push into new business lines.
Net revenue for the three months ended June 30 fell 2.9 per cent to 346.4 billion yuan, according to a company announcement on Thursday, but still surpassed the 342.1 billion yuan consensus estimate from analysts polled by Bloomberg.
“Despite near-term revenue headwinds, [JD.com] achieved strong bottom line growth, marking a clear inflection in our profit trajectory,” said Sandy Xu Ran, CEO of JD.com.
Xu added that the second-quarter performance was driven by the core retail division’s profitability and narrowing losses in new initiatives such as food delivery – strengths the company planned to build on through the second half of the year.
The company’s core retail segment – comprising electronics, home appliances and general merchandise – posted operating income of 13.5 billion yuan, down slightly from 13.9 billion yuan a year earlier.
The results underscore the impact of JD.com’s expansion into food delivery, logistics and international operations over the past year – investments that weighed on overall profitability.
In food delivery, the company continues to compete head to head with market leaders Meituan and Alibaba Group Holding, owner of the South China Morning Post.
Analysts at SWS Research noted ahead of the results that JD.com’s retail division faced headwinds in the second quarter due to a high base comparison from last year’s consumer subsidies, though losses in food delivery were expected to narrow as investment discipline improved.
The earnings release comes as China’s major e-commerce platforms engage in intense price competition, relying on subsidies, discounts and rapid delivery to capture budget-conscious shoppers, even as Beijing rolls out policies to stimulate consumption.
To hedge against intensifying domestic competition, JD.com is ramping up its global push.
In March, the company expanded its Joybuy online marketplace to six European markets – the UK, Germany, France, the Netherlands, Belgium and Luxembourg – leveraging its logistics network and delivery speed to challenge incumbents like Amazon.com.
In an earnings call, Xu said that Joybuy offered a “highly differentiated user experience, including integrated delivery and installation services”, replicating the premium service JD.com provided to users in China’s domestic market.
Joybuy now offers same-day and next-day delivery across major European cities, with more than 40 million consumers benefiting from the same-day option, according to Xu.
“This has helped Joybuy gradually win stronger user recognition … across Europe, increasing user retention,” she added.
The company will also keep improving the profitability of its food delivery business, while exploring ways to deeply integrate it into its broader service platform, according to Xu.
JD.com’s Hong Kong-listed shares closed flat at HK$123 on Thursday ahead of the earnings announcement.


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Net revenue dips, but still beats analysts’ estimate, as e-commerce giant contends with weak demand and fierce competition


Net revenue dips, but still beats analysts’ estimate, as e-commerce giant contends with weak demand and fierce competition.


JD.com’s second-quarter profit climbs 15% as food-delivery losses narrow

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Net revenue dips, but still beats analysts’ estimate, as e-commerce giant contends with weak demand and fierce competition

Net revenue dips, but still beats analysts’ estimate, as e-commerce giant contends with weak demand and fierce competition