JD.com Q1 Revenue Rises at Fastest Rate Since 2022， Food Delivery Drives New Businesses Sales Growth

摘要：JD beat both the top and bottom lines for anther quarter, reflecting resilience of consumer demand amid U.S. tariffs and lackluste

TMTPOST -- The American depositary receipts (ADRs) of JD.com finished 3.3% higher on Tuesday as the stock benchmark S&P 500 index added 0.7%. JD shares outperformed the U.S. stock market after Chinese e-commerce titan posted stronger-than-expected revenue and stellar growth of food delivery, a new business it just ventured into three months ago.

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JD beat both the top and bottom lines for anther quarter, reflecting resilience of consumer demand amid U.S. tariffs and lackluster Chinese economy. It reported total net revenue to RMB301.1 billion ($41.8 billion) for the three months ended March 31, compared analysts estimated $39.6 billion, according to a FactSet poll. The revenue represented an increase of 15.8% year-over-year (YoY), JD’s fastest revenue pace since the first quarter of 2022, the onset of the Covid pandemic. The company further accelerated sales with double-digit YoY growth for the second straight quarter, up from a 13.4% rise for the last quarter of 2024.

On non-GAAP basis, net income attributable to JD’s ordinary shareholders for the first quarter surged 43.8% YoY to RMB12.8 billion ($1.8 billion), topping analysts’ projection of RMB1.5 billion. The non-GAAP adjusted diluted net income per American depositary share (ADS) was RMB8.41 with a YoY gain of 48.8%, compared with a 40% increase for the previous quarter.

By segment, JD Retails brought RMB263.8 billion with a 16.3% YoY increase for the March quarter, compared with a gain of 14.7% three months earlier. Operating income of the core business stood at RMB12.8 billion with a 37.8% YoY increase following a rise of 44.7%for the fourth quarter of 2024. Revenue from JD Logistics popped 11.5% YoY to RMB47 billion following a 10.4% increase for the December quarter. Operating income for the first quarter dropped 35.3% YoY to RMB145 million after a 37.1% increase from October to December.

In a statement of financial results, JD disclosed part of its efforts to weather the Trump administration’s sweeping tariffs. The company in April announced the launch of an export-to-domestic sales program. It aims to procure no less than RMB200 billion worth of export-oriented goods for domestic sales. Through this initiative, JD will work with Chinesemanufactures to strengthen their presence in the domestic market and provide consumers with more better and cheaper products.

The March quarter is the first time for JD to record sales from JD Food Delivery under New Businesses, which includes Dada, JD Property,Jingxi and overseas businesses. Revenue from the segment climbed 18.1% YoY to RMB5.75 billion,reversing a YoY decline of 31% for the fourth quarter. The segment delivered operating loss of RMB1.3 billion, almost doubling from the loss a year ago, while the operating loss widened 11.3% YoY a quarter earlier. The losses expanded significantly, indicating the drag of costly food delivery push.

JD expressed optimism on food delivery business despite the intense competition in China. The company said it 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, the company said.

Calling the performance for the March quarter “a strong start to the year”, JD CEO Sandy Ran Xu said the result was supported by improving consumer sentiment and continued enhancements to JD’s supply chain capabilities and user experience. “ 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,” said Xu.

JD does not see food delivery as a standalone business as it’s deeply rooted and well integrated into JD's robust retail infrastructure and ecosystem, a pivotal differentiator, Xu told analysts on an earnings call. “ In a very brief time, food delivery has made remarkable headway in the aspects of order volume, onboarded merchants, and the rights. In particular, as we speak, JD food delivery order volume today is reaching close to 20,000,000 orders, another important milestone that we expect to surpass very soon,” Xu said.