JD.com's 2025 third-quarter earnings report presents a complex picture: while total revenue rose 14.9% year-over-year to RMB 299.1 billion, exceeding market expectations, non-GAAP net profit plummeted 56.0% to RMB 5.8 billion.

This "revenue growth without profit growth" phenomenon reflects JD.com's strategic balancing act between its core retail business and new ventures.

Amid slowing growth in China's e-commerce sector, JD.com must defend its core retail business while heavily investing in building a second growth engine. The quarterly report highlights both the growing pains and promise of China's e-commerce industry transitioning from rapid expansion to high-quality development.

**Business Restructuring: From Single Reliance to Diversified Growth** JD.com is actively reducing its dependence on traditional strong categories to create a more balanced business structure.

The core retail business remains stable, with JD Retail posting Q3 revenue of RMB 250.6 billion, up 11.4% year-over-year, while operating margin improved 0.7 percentage points to 5.9%.

Within retail, multiple categories showed coordinated growth. Daily necessities stood out with 18.8% revenue growth—about four times the industry average. Supermarket categories maintained double-digit growth for seven consecutive quarters, while apparel and footwear grew about eight times faster than the sector average. Electronics and home appliances, facing pressure from high year-ago comparisons due to trade-in policies, slowed to 4.9% growth. These figures demonstrate JD.com's success in expanding beyond electronics.

JD.com continues to lead this segment while strengthening its offline presence. By Q3-end, JD.com operated over 4,000 3C stores, more than 20 JD MALL locations, and over 100 JD Electronics flagship stores.

Service revenue emerged as a bright spot, jumping 30.8% year-over-year to a record 24.4% of total revenue. Platform and advertising services revenue grew 23.8% to RMB 25.7 billion, while logistics and other services surged 35.1% to RMB 47.3 billion—marking progress in JD.com's shift from "selling goods" to "selling services."

User metrics also improved, with annual active users surpassing 700 million in October. Quarterly active users grew over 40% year-over-year, while purchase frequency rose by more than 40%, indicating significantly higher engagement.

**Strategic Investments and Profit Pressure: New Businesses' Promise and Challenges** JD.com's profit decline stems largely from strategic investments in new initiatives, particularly food delivery expansion. Q3 operating losses in new businesses widened sharply to RMB 15.736 billion, driven by increased marketing spending.

JD Food Delivery showed explosive growth, with revenue up 214% year-over-year and accelerating quarter-over-quarter. While scaling up, the business achieved "narrowing losses per order." By Q3-end, over 2 million quality restaurants had joined the platform—500,000 more than Q2.

CEO Sandy Xu noted that while food delivery remains in investment mode, it's deeply integrated into JD.com's ecosystem, with nearly 50% of early users migrating to other JD services. She emphasized a long-term view, aiming for sustainable growth and eventual self-sufficiency.

Beyond food delivery, JD.com accelerated global expansion. JD Logistics expanded rapidly in the U.S., Middle East, and Europe, launching Saudi self-operated delivery service JoyExpress (orders up nearly 700%) and earning eBay certification for U.S. warehouses. These investments dent near-term profits but lay groundwork for long-term growth.

Continued R&D spending also impacted margins. Since its 2017 tech transformation, JD.com has invested nearly RMB 160 billion cumulatively. At its 2025 JD Discovery Conference, JD Technology pledged three more years of heavy investment to build a trillion-yuan AI ecosystem across industries.

Expense structure changes reflect strategic priorities: Q3 marketing costs surged 110.5% to RMB 21.1 billion, fulfillment expenses rose 35.2% to RMB 22 billion, and R&D spending increased 28.4%. These investments pressure short-term profits but fuel long-term development.

From four straight quarters of double-digit revenue growth to surpassing 700 million users, JD.com's "advances" show core business stability and new venture momentum. From halved profits to widening new business losses, its "retreats" reveal strategic investment pains. JD.com is transitioning from a supply chain company to a "supply chain + AI" dual-engine tech firm.