JD.com reports first quarterly revenue decline since listing as Hong Kong shares plunge
JD.com reported its first quarterly revenue decline since listing in 2014, sending its shares down 10% in Hong Kong. Second-quarter revenue fell 2.9% to 346.4 billion yuan ($51.4 billion), but still came in slightly above the average analyst estimate. The revenue decline overshadowed better-than-expected profit: Net income rose 15% to 7.1 billion yuan. Chief Executive Xu Ran warned on Thursday that the company faces “short-term revenue pressure,” while emphasizing that losses in its food-delivery business are narrowing and profitability in its core JD Retail operation remains solid. To find new sources of growth, JD.com is accelerating its expansion beyond mainland China and targeting higher-margin markets. It has launched the Joybuy online retail platform and JoyExpress delivery service in Europe, while partnering with brands in Hong Kong to expand its local business. JD.com has also proposed acquiring German retailer Ceconomy AG, but the deal has encountered resistance after the European Commission opened an in-depth subsidy investigation. The company has not announced any major initiatives in artificial intelligence, while other Chinese internet peers are investing heavily in the area. JD.com has partnered with Tencent and is using Tencent’s AI chatbot to provide agentic shopping services.
Second-quarter revenue fell 2.9% to 346.4 billion yuan ($51.4 billion), but still came in slightly above the average analyst estimate. The revenue decline overshadowed better-than-expected profit: Net income rose 15% to 7.1 billion yuan.
Chief Executive Xu Ran warned on Thursday that the company faces “short-term revenue pressure,” while emphasizing that losses in its food-delivery business are narrowing and profitability in its core JD Retail operation remains solid.
To find new sources of growth, JD.com is accelerating its expansion beyond mainland China and targeting higher-margin markets. It has launched the Joybuy online retail platform and JoyExpress delivery service in Europe, while partnering with brands in Hong Kong to expand its local business. JD.com has also proposed acquiring German retailer Ceconomy AG, but the deal has encountered resistance after the European Commission opened an in-depth subsidy investigation.
The company has not announced any major initiatives in artificial intelligence, while other Chinese internet peers are investing heavily in the area. JD.com has partnered with Tencent and is using Tencent’s AI chatbot to provide agentic shopping services.