JD.com Q1 profit drops 53% amid e-commerce price war

JD.com, the prominent Chinese e-commerce company, announced a first-quarter profit of 5.1 billion yuan (US$750.2 million), marking a 53.2% decrease from the previous year, yet returning to profitability after a loss in Q4 2024. The company experienced a 4.9% increase in net revenue, reaching 315.7 billion yuan, surpassing last quarter's growth of 1.5%. On a non-GAAP basis, net income fell to 7.4 billion yuan from 12.8 billion yuan a year prior. These results are influenced by a persistent price competition in food and delivery services, alongside weakened consumer demand following Beijing's reduction of a national subsidy initiative. CEO Sandy Xu Ran highlighted significant growth in user engagement, with a record number of annual active customers. In March, JD.com unveiled a revamped merchants program backed by a 35 billion yuan investment.