3 6 Ke·2025-08-18 07:55Core Insights - JD Group reported Q2 2025 earnings with revenue of 356.66 billion RMB, a year-on-year increase of 22.4%, while net profit dropped by approximately 51% to 6.178 billion RMB, primarily due to the impact of subsidies in the food delivery business [2][3] Financial Performance - The retail segment achieved revenue of 310.075 billion RMB, a year-on-year growth of 20.6%, and operating profit of 13.939 billion RMB, up 37.9% [15][21] - New business revenue, including food delivery, surged nearly 200% year-on-year to 13.852 billion RMB in Q2 2025, with operating losses expanding to approximately 14.777 billion RMB [5][9] Cost Structure - Operating expenses for new businesses increased significantly, with a year-on-year rise of 127.6 billion RMB being the main factor for losses in the food delivery segment [8][10] - Marketing expenses grew by about 128% to 27.013 billion RMB, largely driven by subsidies for the food delivery service [10][12] User Engagement and Growth - The food delivery business has positively impacted user engagement, with active user growth exceeding 40% and shopping frequency increasing over 40% [13][19] - The integration of food delivery into JD's ecosystem is expected to enhance cross-category purchasing behavior among users [19][24] Future Outlook - To mitigate the impact of food delivery on overall profitability, JD needs to scale the business to cover rider costs and reduce subsidies [24][25] - The company is exploring synergies between food delivery and retail, aiming to optimize operations in response to increased traffic from food delivery users [19][24]