JD.com profit slides 53% in Q1, beats forecasts

Beijing-based ecommerce company JD.com said net income for the quarter ended March fell 53% to 5.1 billion yuan (US$751 million), beating analyst estimates as Chinese regulators moved to curb food delivery competition.

Revenue was 315.7 billion yuan (US$46.5 billion) versus the 311.4 billion yuan (US$45.8 billion) analysts expected on average.

China’s antitrust watchdog opened a probe into food delivery competition in January and later fined JD plus Meituan and Alibaba 3.6 billion yuan (US$530 million) for failing to screen out unqualified merchants.

JD is also expanding overseas with JoyExpress and Joybuy in Europe as weak consumption and the property slump weigh on China.

🔗 Source: Bloomberg

🧠 Food for thought

Implications, context, and why it matters.

JD’s profit drop came after an expensive food delivery push

JD.com’s profit fell after it entered China’s food delivery market in February 2025 and offered 0% commission to take on larger rivals already in the business 1.
That step deepened a subsidy and price war with Meituan and Alibaba. JD later rolled out its first 10 billion yuan (US$1.47 billion) in discounts for food delivery 2.
Analysts estimated the expansion could bring a loss of more than 10 billion yuan (US$1.47 billion) in the second quarter alone 2.
The company is also funding its online supermarket arm, with more than 20 billion yuan (US$2.94 billion) set aside over three years through a sales channel called “Billion-Yuan Supermarket” 3.

Draft rules and scrutiny seek to cool China’s delivery fight

The 3.6 billion yuan (US$530 million) fine stemmed from failures tied to “ghost” vendors, or merchants that used fake business locations and false licenses to sell food online 4.
Earlier, regulators called in JD.com and its rivals as subsidies climbed and told them to follow competition rules. They also pressed delivery platforms to improve labor protections for riders, the couriers who bring orders 5.
China’s market regulator has drafted rules to cap restaurant fees and block platforms from making merchants pay for promotions 6.
Investors welcomed the move, pushing shares of JD.com and Meituan higher 6.