JD Logistics Reports 24% Revenue Growth Amid International Expansion Push
The Chinese logistics giant posted H1 2026 revenue of RMB 64.1 billion while accelerating its European warehouse network and share buyback program.
Strong Revenue Growth Despite Margin Pressure
JD Logistics, the $12 billion supply chain arm of Chinese e-commerce giant JD.com, reported total revenue of RMB 64.10 billion for the second quarter of 2026, representing a 24.3% year-over-year increase (earnings call, 2026-08-13). Revenue from external customers reached RMB 44.23 billion, up 30.8% from the prior year period.
The company's non-IFRS net profit reached RMB 2.64 billion with a 4.1% margin, while non-IFRS operating profit grew 11.6% year-over-year to RMB 2.34 billion. For the first half of 2026, aggregate operating profit reached RMB 3.59 billion, up 39.9% year-over-year.
CFO Wu Hao attributed the performance to "our steadfast commitment to our mission to drive superior efficiency and sustainability for global supply chain through technology" while noting the company faced "numerous external uncertainties" during the quarter.
Integrated Supply Chain Business Advances
The integrated supply chain segment generated RMB 30.17 billion in revenue, up 12.1% year-over-year. Revenue from parent company JD Group rose 11.9% to RMB 19.88 billion, driven primarily by fulfillment services for Joybuy, JD's European retail operation, and support for the Jingxi business targeting lower-tier Chinese markets.
External customer revenue in this segment reached RMB 10.29 billion, increasing 12.5% as both customer count and average revenue per customer improved. The company is expanding into instant retail and building out B-channel capabilities to capture cross-selling opportunities.
Express Delivery Outpaces Industry
Other business lines, including express delivery, freight, and on-demand services, generated RMB 33.93 billion, up 37.6% year-over-year. CFO Wu noted that "both revenue and volume of our express delivery business grew at a pace that significantly outpaced the industry average," with particular strength in high-value segments like fresh food and document delivery.
European Footprint Expanding
CEO Wang Zhenhui detailed the company's international expansion, noting JD Logistics now operates across 26 countries with over 2 million square meters of overseas warehouse space. Europe represents a core market, with the company building an "encryption service network" covering the UK, Germany, Belgium, Holland, and Luxembourg in Q1 2026.
"We want to promote Chinese products to overseas market. We want to work with also local customers in different overseas markets," Wang said, adding that partnerships with top European electronics brands more than doubled in the first half of 2026.
Margin Pressures and Cost Management
Gross margin declined 0.9 percentage points to 9.7%, which Wu attributed to Deppon's ongoing business adjustments. However, he emphasized that the "gross profit margin of our original core business showed a steady upward trend."
Outsourcing costs rose significantly to 37% of revenue, up 4.3 percentage points year-over-year, primarily due to consolidation of the crowd-sourced on-demand delivery business. Employee benefit expenses improved to 34.2% of revenue, down 1.0 percentage point, reflecting productivity gains from technology investments.
The company generated RMB 2.15 billion in free cash flow net of lease payments and has repurchased 33.26 million shares since launching a $1.2 billion buyback program in May 2026.
This article was generated by MarginX from the earnings call on 2026-08-13. It is not investment advice.