Hu Xiu·2025-08-18 23:12Core Insights - JD Group reported Q2 2025 revenue of 356.7 billion, a year-on-year increase of 22.4%, with product revenue growing by 20.7% and service revenue by 29.1% [1][2] Segment Performance - JD Retail operating profit reached 13.94 billion, up 37.9% year-on-year, with a profit margin of 4.5% [2] - JD Logistics operating profit was 2.1 billion, down 10.3% year-on-year, with a profit margin of 3.8% [2] - New business revenue, primarily from food delivery, surged by 199%, but incurred an operating loss of 14.78 billion [2] Business Expansion and Strategy - JD's food delivery service achieved over 25 million daily orders, covering 350 cities with over 1.5 million merchants, contributing to a significant decline in overall operating profit for the first half of the year [3][5] - The company is strategically expanding into the food delivery sector despite the associated losses, indicating a long-term vision [5][58] Revenue Composition - Service revenue has surpassed 20% of total revenue, indicating a shift in JD's business model [7][11] - Historical data shows a steady increase in service revenue from 8.4% in 2017 to 20.2% in H1 2025, highlighting the importance of service revenue for profit improvement [8][12] Retail and Logistics Growth - JD Retail revenue grew from 694 billion in 2020 to 1.02 trillion in 2024, with a notable increase in growth rate in 2025 [18] - JD Logistics revenue increased from 73.4 billion in 2020 to 182.8 billion in 2024, with continued growth in 2025 [19] New Business Insights - New business revenue reached 13.85 billion in Q2 2025, driven primarily by food delivery, marking a significant increase [21] - The new business segment has been characterized by high operating losses, with Q2 2025 losses reaching 14.78 billion [31][33] Market Context - The online retail market in China is approaching saturation, with growth rates slowing and online sales as a percentage of total retail sales declining [38][42] - The company is exploring new strategies to enhance its market position, including the integration of online and offline supply chains [49][50] Future Outlook - JD's management emphasizes the importance of food delivery and instant retail as key strategic directions for sustainable growth over the next several years [58][61]