China ecommerce company JD.com said on August 13 that second-quarter revenue fell 2.9% year on year to 346.4 billion yuan (US$51.4 billion).

Net income attributable to ordinary shareholders rose to 7.1 billion yuan (US$1.05 billion) from 6.2 billion yuan (US$920 million).

Income from operations rose to 4.5 billion yuan (US$668 million) from a 900 million yuan (US$134 million) loss a year earlier.

The company said product revenue dropped 5.4%, while service revenue rose 6.8%.

Management said results were in line with expectations.

JD attributed the decline in product revenue to a high base in the second quarter of 2025.

On the earnings call, management said sales of electronics and home appliances also faced pressure from higher upstream component costs, while supermarket, healthcare, and industrial categories grew faster.

Profitability improved as JD Retail posted 13.5 billion yuan (US$2 billion) in income from operations on a 4.6% operating margin.

Management said the improvement came from margin gains in some categories, a better revenue mix from higher-margin marketplace and marketing revenue, and lower promotional spending on new business initiatives.

The company repurchased about 69.9 million Class A ordinary shares for US$1 billion in the first half under its US$5 billion buyback plan.

The repurchases were equal to about 2.5% of shares outstanding at the end of 2025, as China’s retail sales rose 1.0% in June and online goods sales growth slowed to 4.8% year to date.

🔗 Source: JD.com

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