JD.com Q1 revenue and net profit exceeded expectations, new business revenue increased by 18.1% but losses doubled | Financial Report Insights

E-commerce giant JD.com released its performance report for the first quarter of 2025, with both net revenue and profit exceeding expectations. The core business, JD Retail, has enhanced its profitability, and new business revenue, including the delivery service, saw a significant increase of 18.1%, although losses also widened.

On Tuesday, JD.com published its first-quarter financial report, detailing the following financial performance:

Revenue: Total revenue reached RMB 301.1 billion, a year-on-year increase of 15.8%; net revenue was RMB 301.08 billion, a year-on-year increase of 16%, surpassing the estimated RMB 289.44 billion.

Profit: Operating profit was RMB 10.5 billion (approximately USD 1.5 billion), compared to RMB 7.7 billion in the same period last year; adjusted EBITDA was RMB 13.7 billion, a year-on-year increase of 27%, exceeding the estimated RMB 12.64 billion;

JD Group's adjusted earnings per ADS for the first quarter were RMB 8.41, estimated at RMB 7.09; adjusted operating profit margin was 3.9%, compared to 3.4% in the same period last year, estimated at 3.54%; adjusted EBITDA profit margin was 4.6%, compared to 4.1% in the same period last year, estimated at 4.07%;

Additionally, the company completed its annual dividend distribution in April and continued to execute its stock repurchase plan in the first quarter, demonstrating its commitment to shareholder returns. Following the release of the financial report, JD Group's U.S. stock fell nearly 4% in pre-market trading.

JD Retail's Profitability Enhances, Logistics Overseas Expansion Accelerates

JD Retail remains the engine of performance growth, with revenue increasing by 16.3% year-on-year, and the growth rate further accelerating, while the operating profit margin excluding undistributed items rose from 4.1% in the same period last year to 4.9%.

JD Retail is seizing market opportunities brought by consumer support policies and AI large models through deep cooperation with brand manufacturers. The launch of the export-to-domestic sales project has also brought new growth points for JD Retail. The financial report noted:

In the first quarter, JD deepened strategic cooperation with digital product brands such as Xiaomi, conducting in-depth collaboration around product innovation and marketing to jointly seize new market opportunities brought by consumer support policies and AI large models; JD launched products from several well-known fashion brands, including La Prairie, Crocs, and Massimo Dutti, leveraging JD's platform advantages and integrated supply chain capabilities.

In April, JD announced the launch of the export-to-domestic sales plan. JD's goal is to procure no less than RMB 200 billion worth of export-to-domestic goods. Through this project, JD will collaborate with domestic manufacturing enterprises to explore their domestic markets while providing consumers with more "good and cheap" products.

This indicates that even in the context of a potential price war, JD Retail's profitability seems to be strengthening. Chief Financial Officer Mr. Shan Su emphasized, "Both product and service revenues achieved double-digit year-on-year growth, with the growth rate accelerating quarter-on-quarter, while profits continue to rise steadily." JD Logistics continues to maintain growth momentum, with revenue increasing by 11.5%. The expansion of its overseas business is one of the highlights, including the launch of international routes from Shenzhen, China to Bangkok, Thailand, and the operation of Warehouse No. 2 in Warsaw, Poland. These initiatives indicate that JD Logistics is actively building a global supply chain network.

New business revenue grows by 18.1%, losses double to 1.327 billion yuan

JD has taken its first step into the food delivery business, attempting to integrate this service into the JD ecosystem to create synergies with existing operations, thereby enriching location-based product offerings and upgrading the last-mile delivery network.

The financial report shows that in the first quarter of 2025, new business revenue, including food delivery, reached 5.753 billion yuan (approximately 793 million USD), a year-on-year increase of 18.1%, with losses of 1.327 billion yuan (approximately 183 million USD), compared to a loss of 670 million yuan in the same period of 2024. The operating profit margin for new businesses was -23.1%, a decline from -13.8% in the same period of 2024.

In February of this year, JD officially launched its food delivery service. JD stated in its financial report:

The food delivery market has enormous opportunities and demands, including users' demand for quality delivery, merchants' demand for reasonable commissions, and riders' demand for better protections. JD Food Delivery has made significant progress in a very short time. This fully reflects the great potential of the food delivery industry, as well as JD's precise grasp of market demand and strong execution capabilities.

Additionally, JD Health continues to make strides in the medical AI field, achieving multiple advancements and continuously promoting the application of AI technology in medical health services, specialized disease treatment, and health management