Hu Xiu·2025-08-15 03:06Core Viewpoint - JD Group's recent performance report highlights a stark contrast between strong revenue growth in its core e-commerce business and significant losses in its food delivery segment, leading to an overall operating loss for the group [1][2][5]. Revenue and Profit Performance - JD's total revenue for the quarter increased by 22% year-on-year, significantly surpassing market expectations of 15%, with actual revenue exceeding forecasts by nearly 22 billion RMB [3][45]. - The strong performance was primarily driven by the main e-commerce platform, which saw revenue growth of 20.6% year-on-year, benefiting from government subsidies [6][47]. - However, the profit was adversely affected by substantial losses in the food delivery business, resulting in a GAAP operating loss of approximately 900 million RMB, a drastic shift from previous profits exceeding 10 billion RMB [5][52]. Segment Analysis - The e-commerce segment's operating profit reached 13.9 billion RMB, a year-on-year increase of nearly 38%, exceeding market expectations by 2 billion RMB [8][53]. - The logistics segment also performed well, with an operating profit of 1.82 billion RMB, although it experienced a slight decline compared to the previous quarter [54]. - In contrast, the new business segment, primarily driven by food delivery, reported a staggering loss of 14.8 billion RMB, far exceeding the anticipated loss of 9 to 10 billion RMB [9][55]. Cost and Expense Dynamics - The overall gross margin for the group was 15.9%, showing a slight year-on-year improvement, largely due to enhanced margins in the main e-commerce business [12][59]. - Operating expenses surged by 63% year-on-year, significantly higher than market expectations, primarily due to increased marketing expenditures related to food delivery subsidies [14][63]. - The marketing expenses alone reached 27 billion RMB, reflecting a substantial increase of 128% compared to the previous year [14][63]. Strategic Implications - The strong performance in the core e-commerce business provides JD with the financial backing to pursue aggressive strategies in new business areas, despite the significant losses incurred [19][23]. - However, the lack of substantial cross-selling benefits from the food delivery segment raises concerns about the sustainability of this strategy [20][24]. - The company has the option to scale back on new business initiatives if necessary, allowing for greater flexibility compared to potential issues in its core operations [21][30].