JD.com (NASDAQ: JD) reported a 2.9% year-over-year decline in second-quarter revenue, totaling RMB 346 billion, impacted by high prior-year comparisons and rising component costs. However, the company saw a 20.8% increase in non-GAAP net income, reaching RMB 8.9 billion, and a non-GAAP net margin of 2.6%. CEO Sandy Xu noted this marked a turning point for profitability, particularly as JD Retail’s gross margin reached 18.5%, its highest in 17 consecutive quarters.
JD Retail revenue decreased 4.7% to RMB 295 billion, with expectations for positive growth in the third quarter as the impact of the previous year’s performance normalizes. The logistics segment generated RMB 68.1 billion in revenue, a 24.3% increase year-over-year, while service revenue grew 6.8%. JD’s fresh investments in AI and enhanced supply chain efficiencies are contributing to operational resilience.
The company reported RMB 31 billion in free cash flow over the last twelve months, up from RMB 10 billion in the prior year, while cash and equivalents at the quarter-end totaled RMB 235 billion. JD’s share repurchase program remains strong, repurchasing roughly 34.9 million ADS for $1 billion. Management projects further growth in profitability and revenue across JD Retail in the second half of 2023.
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