In early trading on the Hong Kong market, JD Group’s latest financial report lifted related stocks across the board. As of press time, $JD.com-SW (09618.HK)$ rose 7.37%, $JD.com-SWR (89618.HK)$ increased 7.12%, $JD Health (06618.HK)$ gained 3.33%, $JD Industrial (07618.HK)$ edged up 1.31%, and $JD Logistics (02618.HK)$ soared as much as 18.11% intraday.

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Q4 Revenue Slightly Up, Net Profit Dragged by New Business Investments

The financial report shows that JD Group recorded net revenue of CNY 352.3 billion in Q4 2025, up 1.5% year-on-year, slightly exceeding market expectations. However, due to increased strategic investments in new business segments, the company posted a net loss attributable to shareholders of CNY 2.7 billion for the quarter, compared with a profit of CNY 9.9 billion in the same period last year. Full-year net profit attributable to shareholders was CNY 19.6 billion, down by half year-on-year, while non-GAAP net profit amounted to CNY 27.0 billion, a decline of 43.5% YoY.

The new business segment incurred an annual operating loss of CNY 46.6 billion, the main factor behind the profit decline. The company stated that new initiatives, including food delivery and cross-border e-commerce, are being accelerated. Although short-term losses have widened, these investments are expected to lay the foundation for future growth.

Record-High Annual Revenue Driven by Strong Service Growth

JD Group’s total revenue for 2025 exceeded CNY 1.3 trillion for the first time, reaching CNY 1,309.1 billion, up 13% YoY, marking the fastest growth in recent years. Merchandise revenue increased 10.3% YoY, with daily necessities up 15.3% and electronics & home appliances up 7.1%. Service revenue showed particularly strong growth, rising 23.6% to CNY 285.3 billion, further increasing its share of total revenue. Within this, logistics and advertising platform revenue grew 26.6% and 18.9%, respectively.

Core retail operations achieved an annual operating profit of CNY 51.4 billion, with an operating margin of 4.6%, demonstrating solid profitability. JD emphasized that retail remains a key profit driver, with integrated online-offline channels and AI applications enhancing efficiency and user experience.

Logistics and New Businesses: Scale Expansion and Strategic Deployment

JD Logistics reported full-year revenue of CNY 217.1 billion in 2025, up 18.8% YoY, but its operating margin narrowed from 3.5% to 2.4%, reflecting cost pressures from scale expansion. The smart warehousing “ZhiLang” system has been deployed in nearly 20 cities nationwide, and in Q4 the company launched its first overseas warehouse in the UK.

The new business segment posted full-year revenue of CNY 49.3 billion, up 157.3% YoY, but with a high loss rate of 94.6%, including a single-quarter loss of CNY 14.8 billion in Q4. Management highlighted that investments were primarily allocated to food delivery, overseas e-commerce, and industrial business expansion, while optimizing restaurant order structures and user growth synergies.

Investor Returns and Financial Health

Despite pressure on profitability, JD continues to return value to shareholders. In 2025, the company repurchased approximately USD 3 billion of shares, representing 6.3% of the float, and proposed an annual cash dividend of USD 1.0 per ADS, totaling around USD 1.4 billion. The total shareholder return for the year reached about 10%.

Cash and short-term investments remained at CNY 225.4 billion, maintaining ample liquidity. Free cash flow for the year was CNY 6.5 billion, down significantly YoY, but the overall financial structure remained solid.

How to Buy JD-SW via on uSMART

After logging into the uSMART HK app, click the “Search” button in the top-right corner of the page, enter the ticker code (09618.HK), and navigate to the details page to view transaction details and historical trends. Click the “Trade” button in the bottom-right corner, select the trade type, and submit your order after filling in the transaction conditions.

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