Thursday, May 15, 2025

JD.com Announces First Quarter 2025 Results


JD.com, Inc., a leading supply chain-based technology and service provider, announced its unaudited financial results for the three months ended March 31, 2025.

First Quarter 2025 Highlights

  • Net revenues were RMB301.1 billion (US$141.5 billion) for the first quarter of 2025, an increase of 15.8% from the first quarter of 2024.
  • Income from operations was RMB10.5 billion (US$1.5 billion) for the first quarter of 2025, compared to RMB7.7 billion for the first quarter of 2024. Operating margin was 3.5% for the first quarter of 2025, compared to 3.0% for the first quarter of 2024. Non-GAAP2 income from operations was RMB11.7 billion (US$1.6 billion) for the first quarter of 2025, compared to RMB8.9 billion for the first quarter of 2024. Non-GAAP operating margin was 3.9% for the first quarter of 2025, compared to 3.4% for the first quarter of 2024. Operating margin of JD Retail before unallocated items was 4.9% for the first quarter of 2025, compared to 4.1% for the first quarter of 2024.
  • Net income attributable to the Company’s ordinary shareholders was RMB10.9 billion (US$1.5 billion) for the first quarter of 2025, compared to RMB7.1 billion for the first quarter of 2024. Net margin attributable to the Company’s ordinary shareholders was 3.6% for the first quarter of 2025, compared to 2.7% for the first quarter of 2024. Non-GAAP net income attributable to the Company’s ordinary shareholders was RMB12.8 billion (US$1.8 billion) for the first quarter of 2025, compared to RMB8.9 billion for the first quarter of 2024. Non-GAAP net margin attributable to the Company’s ordinary shareholders was 4.2% for the first quarter of 2025, compared to 3.4% for the first quarter of 2024.
  • Diluted net income per ADS was RMB7.19 (US$0.99) for the first quarter of 2025, compared to RMB4.53 for the first quarter of 2024. Non-GAAP diluted net income per ADS was RMB8.41 (US$1.16) for the first quarter of 2025, compared to RMB5.65 for the first quarter of 2024.
“We saw a strong start to the year, with solid results on both the top and bottom lines in Q1,” said Sandy Xu, Chief Executive Officer of JD.com. “Our performance was supported by improving consumer sentiment and continued enhancements to JD’s supply chain capabilities and user experience. User growth was particularly strong during the quarter, reflecting the increasing trust and mindshare JD has earned from consumers and further strengthening our ecosystem. We are also seeing encouraging signs from new initiatives, and we believe these emerging opportunities will further position us for long-term, high-quality growth.”

“In the first quarter, both our product and service revenues achieved double-digit growth year-on-year, further accelerating on a sequential basis, while bottom line also continued to expand steadily,” said Ian Su Shan, Chief Financial Officer of JD.com. “In particular, we maintained and further enhanced robust momentum of our core JD Retail business, while exploring exciting new opportunities for our long-term success. We also remained very committed to shareholder returns. We completed our annual dividend payout in April, and further executed upon our share repurchase program during the first quarter.”

Updates of Share Repurchase Program

Pursuant to the Company’s share repurchase program of up to US$5.0 billion adopted in August 2024 and effective through August 2027, the Company repurchased a total of approximately 80.7 million Class A ordinary shares (equivalent to 40.4 million ADSs) for a total of approximately US$1.5 billion from January 1, 2025 to the date of this announcement. The remaining amount under the share repurchase program was US$3.5 billion as of the date of this announcement.

The total number of shares repurchased by the Company from January 1, 2025 to the date of this announcement amounted to approximately 2.8% of its ordinary shares outstanding as of December 31, 20243. All of these ordinary shares were repurchased from both Nasdaq and the Hong Kong Stock Exchange pursuant to the share repurchase program.

Business Highlights
  • JD Retail:
In the first quarter, JD.com deepened its strategic partnerships with leading digital product manufacturers such as Xiaomi. The collaborations focus on product innovation, marketing initiatives, and other key areas, aiming to capture the emerging market opportunities driven by consumption support policies and the rise of AI large language models. Together with its partners, JD.com is committed to providing its users with more intelligent and diverse product offerings, along with enhanced purchasing and service experience.

In the first quarter, JD.com debuted a range of new products online from renowned fashion brands, such as La Prairie, Crocs, and Massimo Dutti. Leveraging its platform advantages and integrated supply chain capabilities, JD.com is dedicated to offering an enriched selection of fashionable products and superior shopping experience for a wide range of consumers.

In April, JD.com announced the launch of an export-to-domestic sales program. JD.com aims to procure no less than RMB200 billion worth of export-oriented goods for domestic sales. Through this initiative, JD.com will work with Chinese manufactures to strengthen their presence in the domestic market and provide consumers with more better and cheaper products.
  • New Business:
In February 2025, JD.com officially launched its food delivery business. Starting from core retail, JD is expanding into on-demand retail and food delivery, meeting users’ demands in various scenarios. Rooted in the Company’s ecosystem, JD Food Delivery is not a stand-alone business. It operates in a market with big opportunities and demands, such as users’ demand for quality meals, merchants’ need for reasonable commissions, and riders’ desire for better protections. JD has the right strength, culture and advantage to address such opportunities and demands, particularly with its “better and cheaper” user mindshare, the “thirty-five cents” principle that insists on only reasonable profit margins, and its strong logistics operation and management capabilities. JD Food Delivery is set to generate synergetic effects with the Company’s existing businesses, including enriching location-based product supplies, upgrading last mile fulfillment network, and contributing to user growth and engagement. JD Food Delivery has achieved substantial progress in a very brief time, a proof of the great potentials of the food delivery industry and JD’s precise grasp of the industry demands and strong execution capabilities.
  • JD Health:
In the first quarter, JD Health further strengthened its position as the first online marketplace for new and specialty medicine launches. It debuted several innovative medicines online during the quarter from pharmaceutical companies including Pfizer, Esteve, Innogen, and others, broadening treatment options for patients. In addition, JD Health also deepened its collaborations with leading healthcare product companies, including By-Health, Yan Palace, and LifeStyles, driving synergies in product innovation, digitalization of supply chain, and precision marketing.

In the first quarter, JD Health made significant progress in medical AI, continuously promoting the application of AI in healthcare services, specialized diagnosis and treatment, and health management. JD Health Online Hospital has seen over 80% of its medical consultation orders aided with AI services. Its AI nutritionist has also achieved a user satisfaction rate of 91%.
  • JD Logistics:
In the first quarter, JD Logistics (“JDL”) continued to expand its global footprint. In January, JDL officially launched an international air cargo route between Shenzhen, China, and Bangkok, Thailand, enabling more efficient cross-border flow of goods. In March, JDL’s second warehouse in Warsaw, Poland commenced operations, offering integrated supply chain and logistics services to support both Chinese enterprises and local European businesses with streamlined and efficient logistics solutions.

On March 24, 2025, JDL officially launched its operations center in Hong Kong, marking a significant step-up in expanding the coverage of its express delivery network and boosting service efficiency in the region. Since upgrading its services in Hong Kong in October 2023, JDL has been persistently deepening its footprint in the market. It has been providing premium express delivery services to consumers, and at the same time, cultivating a mutually beneficial ecosystem in collaboration with local businesses.

Environment, Social and Governance

  • Starting from March 1, 2025, JD.com has begun to contribute the social insurances and the housing fund for its full-time food delivery riders, including both portions that are to be contributed by employers and individuals. In addition, JD.com will also provide accident and health insurances for its part-time food delivery riders. JD.com has become the first platform in China to provide such extensive social benefit coverage for full-time food delivery riders.
  • As a testament to JD.com’s unwavering commitment to creating more jobs and making contribution to the society, the total personnel under the JD Ecosystem4 was approximately 700,000 as of March 31, 2025, including the Company’s employees, part-time staff and interns, as well as the personnel of the Company’s affiliates in the JD Ecosystem. The total expenditure for such human resources, together with the expenditure for external personnel who work for the JD Ecosystem, amounted to RMB128.8 billion for the twelve months ended March 31, 2025.
First Quarter 2025 Financial Results

Net Revenues. Net revenues increased to RMB301.1 billion (US$41.5 billion) by 15.8% for the first quarter of 2025 from RMB260.0 billion for the first quarter of 2024. Net product revenues increased by 16.2%, while net service revenues increased by 14.0% for the first quarter of 2025, compared to the first quarter of 2024.

Cost of Revenues. Cost of revenues increased to RMB253.2 billion (US$34.9 billion) by 15.0% for the first quarter of 2025 from RMB220.3 billion for the first quarter of 2024.

Fulfillment Expenses. Fulfillment expenses, which primarily include procurement, warehousing, delivery, customer service and payment processing expenses, increased to RMB19.7 billion (US$2.7 billion) by 17.4% for the first quarter of 2025 from RMB16.8 billion for the first quarter of 2024. Fulfillment expenses as a percentage of net revenues was 6.6% for the first quarter of 2025, compared to 6.5% for the first quarter of 2024.

Marketing Expenses. Marketing expenses increased to RMB10.5 billion (US$1.5 billion) by 13.9% for the first quarter of 2025 from RMB9.3 billion for the first quarter of 2024. Marketing expenses as a percentage of net revenues was 3.5% for the first quarter of 2025, compared to 3.6% for the first quarter of 2024.

Research and Development Expenses. Research and development expenses increased to RMB4.6 billion (US$0.6 billion) by 14.6% for the first quarter of 2025 from RMB4.0 billion for the first quarter of 2024. Research and development expenses as a percentage of net revenues was 1.5% for the first quarter of 2025, compared to 1.6% for the first quarter of 2024.

General and Administrative Expenses. General and administrative expenses increased to RMB2.4 billion (US$0.3 billion) by 22.2% for the first quarter of 2025 from RMB2.0 billion for the first quarter of 2024. General and administrative expenses as a percentage of net revenues remained stable at 0.8% for the first quarter of 2025 and 2024.

Income from Operations and Non-GAAP Income from Operations. Income from operations increased to RMB10.5 billion (US$1.5 billion) by 36.8% for the first quarter of 2025 from RMB7.7 billion for the first quarter of 2024. Operating margin was 3.5% for the first quarter of 2025, compared to 3.0% for the first quarter of 2024. Non-GAAP income from operations increased to RMB11.7 billion (US$1.6 billion) by 31.4% for the first quarter of 2025 from RMB8.9 billion for the first quarter of 2024. Non-GAAP operating margin was 3.9% for the first quarter of 2025, compared to 3.4% for the first quarter of 2024. Operating margin of JD Retail before unallocated items for the first quarter of 2025 was 4.9%, compared to 4.1% for the first quarter of 2024.

Non-GAAP EBITDA. Non-GAAP EBITDA increased to RMB13.7 billion (US$1.9 billion) by 27.0% for the first quarter of 2025 from RMB10.8 billion for the first quarter of 2024. Non-GAAP EBITDA margin was 4.6% for the first quarter of 2025, compared to 4.1% for the first quarter of 2024.

Net Income Attributable to the Company’s Ordinary Shareholders and Non-GAAP Net Income Attributable to the Company’s Ordinary Shareholders. Net income attributable to the Company’s ordinary shareholders increased to RMB10.9 billion (US$1.5 billion) by 52.7% for the first quarter of 2025 from RMB7.1 billion for the first quarter of 2024. Net margin attributable to the Company’s ordinary shareholders was 3.6% for the first quarter of 2025, compared to 2.7% for the first quarter of 2024. Non-GAAP net income attributable to the Company’s ordinary shareholders increased to RMB12.8 billion (US$1.8 billion) by 43.4% for the first quarter of 2025 from RMB8.9 billion for the first quarter of 2024. Non-GAAP net margin attributable to the Company’s ordinary shareholders was 4.2% for the first quarter of 2025, compared to 3.4% for the first quarter of 2024.

Diluted EPS and Non-GAAP Diluted EPS. Diluted net income per ADS increased to RMB7.19 (US$0.99) by 58.7% for the first quarter of 2025 from RMB4.53 for the first quarter of 2024. Non-GAAP diluted net income per ADS increased to RMB8.41 (US$1.16) by 48.8% for the first quarter of 2025 from RMB5.65 for the first quarter of 2024.

Cash Flow and Working Capital

As of March 31, 2025, the Company’s cash and cash equivalents, restricted cash and short-term investments totaled RMB203.4 billion (US$28.0 billion), compared to RMB241.4 billion as of December 31, 2024. For the first quarter of 2025, free cash flow of the Company was as follows:

Please see full earnings report:

https://www.globenewswire.com/news-release/2025/05/13/3079848/0/en/JD-com-Announces-First-Quarter-2025-Results.html

Source: JD.com, Inc   May 13, 2025 05:00 ET  Photo: China Daily

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