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    JD
    Earnings call· Jun 2025(Q2 FY25)

    JD.com, Inc. JD

    Aug 14, 2025 Source

    Executive summary

    JD.com Q2 FY25 — Strong Retail Growth and Food Delivery Synergies

    JD.com delivered robust Q2 FY25 results, driven by accelerated growth in its core retail segments and significant user engagement improvements. Strategic investments in new initiatives like food delivery are generating strong cross-selling synergies and user growth, albeit impacting near-term profitability. The company remains committed to long-term sustainable growth by leveraging its supply chain advantages and disciplined investment approach, with an eye on global expansion.

    Highlights

    5

    • Total revenues grew 22% year-on-year to RMB 357 billion, significantly outpacing China's total retail sales growth.

    • Quarterly active customers (QAC) accelerated over 40% year-on-year, reaching a new milestone.

    • JD Retail's non-GAAP operating profit increased 38% year-on-year to RMB 13.9 billion, with operating margin expanding to 4.5%.

    • User shopping frequency on JD's platform rose over 40% year-on-year, with JD Plus members growing over 50%.

    • Gross margin reached 15.9% in Q2, marking the 13th consecutive quarter of year-on-year expansion.

    Concerns

    4

    • Non-GAAP net income attributable to ordinary shareholders was RMB 7.4 billion, down 49% year-on-year, primarily due to investments in new businesses.

    • New Business non-GAAP operating loss widened to RMB 14.8 billion due to rapid expansion of food delivery and Jingxi.

    • Last 12 months free cash flow was RMB 10 billion, down from RMB 56 billion in the same period last year, due to cash outflows from trade-in programs and operating income decline.

    • JD Logistics' non-GAAP operating income declined 10.3% to RMB 2 billion due to investments in user experience and capacity building.

    Segment performance

    3
    SegmentRevenueYoYQoQMargin
    JD Retail
    Achieved robust momentum on both top and bottom line, with non-GAAP operating profit up 38% year-on-year. Sustained year-on-year gross margin expansion for 13 consecutive quarters, reaching its highest level for any comparable quarter since inception.
    Non-GAAP Operating Margin: 4.5%
    		—21%—RMB 13.9 billion
    JD Logistics
    Both internal and external revenues sustained double-digit growth. Non-GAAP operating income declined 10.3% due to prioritization of capacity building initiatives in last-mile pickup and delivery, and growth optimization.
    		—17%—RMB 2 billion
    New Business
    Non-GAAP operating loss widened primarily due to rapid expansion of food delivery and Jingxi business. Despite financial impact, food delivery drove meaningful traffic and user growth, and boosted user shopping frequency.
    		—tripled—RMB -14.8 billion

    Operational metrics

    20
    Total Net Revenues
    RMB 357 billion22% year-on-year
    Q2 FY25

    Further accelerating from last quarter and significantly outpacing the growth of China's total retail sales.

    Marketplace and Marketing Revenues Growth
    22%
    Q2 FY25

    Both commission and advertising revenues maintained double-digit growth momentum.

    Logistics and Other Service Revenues Growth
    34%
    Q2 FY25

    Primarily driven by expanding food delivery business.

    Gross Margin
    15.9%13th consecutive quarter of expansion year-on-year
    Q2 FY25

    Primarily driven by core retail business.

    Non-GAAP Net Profit Margin
    2.1%declined
    Q2 FY25

    Mainly due to investments in food delivery.

    Gross Profit
    RMB 56.6 billion23% year-on-year
    Q2 FY25
    Cash and Investments Balance
    RMB 223 billion
    End of Q2 FY25
    Quarterly Active Customers (QAC) Growth
    over 40%year-on-year
    Q2 FY25

    Accelerated notably, total QAC base reached a new milestone.

    User Shopping Frequency Growth
    over 40%year-on-year
    Q2 FY25

    Notable improvement from previous quarters.

    JD Plus Members Shopping Frequency Growth
    over 50%year-on-year
    Q2 FY25

    Even faster pace than overall user shopping frequency.

    Purchasing Users (June 18 promotion)
    more than doubledyear-on-year
    June 18

    Achieved record-breaking results.

    Total Order Volume (June 18 promotion)
    2.2 billionsurpassed
    June 18

    Achieved record-breaking results.

    Supermarket Category Revenue Growth
    double-digit6 consecutive quarters
    Q2 FY25

    Largest contributor to general merchandise revenue.

    Fashion Business Revenue Growth
    double-digityear-on-year
    Q2 FY25
    Food Delivery Daily Order Volume
    increasing exponentially
    Q2 FY25

    Experienced rapid growth since launch.

    Food Delivery Full-Time Riders
    over 150,000
    End of Q2 FY25

    Number increased rapidly.

    Food Delivery Onboarded Restaurants
    over 1.5 million
    Q2 FY25

    High-quality restaurants onboarded.

    Share Repurchase
    USD 1.5 billion
    H1 FY25

    Part of the current USD 5 billion share repurchase program.

    Annual Cash Dividend
    USD 1.44 billion
    FY24

    Company will continue to pay dividends going forward.

    JD App DAU
    improved significantly
    Q2 FY25

    Driven by JD Food Delivery.

    Industry KPIs

    4
    MetricValueDetails
    Segment revenue mix21%%
    Advertising revenue take rate22%%
    Subscription membership programover 50%%
    Operating income EBIT and adjusted EBITDARMB 7.4 billionRMB

    Deals & partnerships

    1
    CECONOMYProposed acquisition to strengthen JD's position in the European market.

    JD believes the European market and CECONOMY's strengths hold significant value. JD has been operating in Europe for 3 years, building retail, e-commerce, property, and logistics infrastructure.

    Risks & headwinds

    3
    Near-term profitability impact from new business investmentsShort-term

    Non-GAAP net income attributable to ordinary shareholders down 49% year-on-year to RMB 7.4 billion; New Business non-GAAP operating loss widened to RMB 14.8 billion.

    Mitigation: Strategic investments are expected to position the company for sustained growth and long-term value creation; focus on ROI and disciplined investment.

    Intense competition in food delivery marketOngoing

    Competition started to intensify since July.

    Mitigation: Focus on improving platform system, enhancing user/merchant/rider experience, refined subsidy strategy, and leveraging economic scale and system capability to improve unit economics. View as a long-term initiative (5-20 years).

    Cash outflows from trade-in programs and operating income declinePast 12 months

    Last 12 months free cash flow was RMB 10 billion, compared to RMB 56 billion in the same period last year.

    Mitigation: JD is well-positioned to fulfill demands and support government stimulus policies for trade-in programs, leveraging supply chain and operational capabilities.

    What to watch in Q3 FY25

    4

    Food Delivery Order Volume Growth

    Q3 quarter-to-date
    Currentincreasing exponentially in Q2
    Targethealthy order volume growth, especially from new orders

    Why it matters

    Indicates the continued traction and market acceptance of JD's new strategic initiative amidst intensifying competition.

    Driven by these efforts, we are encouraged to see that despite industry dynamics, JD Food Delivery has maintained a healthy order volume growth, especially from new orders in Q3 quarter-to-date.

    Q&A highlights

    4

    What is JD's strategy for electronics and home appliances given the trade-in program's uncertainty and increased competition? How does JD assess its long-term commitment to food delivery amidst intense competition and its path to improved unit economics?

    JD leverages its supply chain, product, price, and service advantages to sustain market share in electronics and home appliances, outpacing industry growth. For food delivery, it's a long-term strategic direction focused on user experience, cost, and efficiency, with a commitment to improving unit economics through refined subsidy strategies and leveraging synergies with the core business.

    “So lastly, in the long-term, JD will leverage its supply chain advantages in electronics and home appliances to actively drive industry upgrade and strengthen our user mindshare. We are confident in sustaining growth up that is outpacing the industry, thereby solidifying and expanding our market share.”

    asked by Ronald Keung · answered by Xu Ran

    2 min read5 chapters

    Detailed Narrative

    01

    Core Retail Business Strength

    JD Retail demonstrated strong momentum, with revenues up 21% year-on-year. Electronics and home appliances grew 23% year-on-year, while general merchandise revenues increased 16% year-on-year. The supermarket category extended its streak of double-digit revenue growth to six consecutive quarters. This performance was attributed to strengthened supply chain capabilities, competitive pricing, and superior services, leading to a 38% increase in non-GAAP operating profit for JD Retail.

    02

    User Growth and Engagement Acceleration

    The company reported a notable acceleration in user growth, with quarterly active customers (QAC) increasing over 40% year-on-year. User shopping frequency also rose over 40% year-on-year, and for JD Plus members, it grew over 50%. This momentum was driven by both organic growth in JD Retail and incremental contributions from new businesses like JD Food Delivery, which is bringing in younger users and boosting engagement.

    03

    Strategic Investments in New Businesses

    JD Food Delivery and Jingxi businesses are key new initiatives. JD Food Delivery has seen rapid growth, with daily order volume increasing exponentially and the number of full-time delivery riders exceeding 150,000. While these investments widened New Business's non-GAAP operating loss to RMB 14.8 billion, they are generating clear synergies with the core retail business, including increased traffic, user growth, and cross-selling opportunities, particularly in supermarket categories and electronic accessories.

    04

    International Expansion Vision

    JD.com is actively pursuing global expansion, leveraging its supply chain expertise and technology. The company has been building overseas retail formats, warehouse networks, and operational capabilities, particularly in Europe and the Middle East. The proposed acquisition of CECONOMY is highlighted as a strategic move to strengthen its position in the European market, combining JD's online expertise with CECONOMY's brand strength and market position.

    05

    Financial Performance and Profitability Outlook

    Total net revenues increased 22% year-on-year to RMB 357 billion, with gross margin expanding to 15.9%. Despite a near-term impact on non-GAAP net income due to new business investments, the company maintains a long-term goal of achieving high single-digit profit margins. Drivers for core retail profit expansion include increased supply chain efficiency, better profitability across categories, and the development of the 3P ecosystem, which will boost marketplace and marketing revenues.

    AI-generated summary of the company’s earnings call. Not investment advice.