How JD (JD.com) Makes Money in 2025: A Deep-Dive With Income Statement

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Understanding how a Chinese e-commerce and logistics leader like JD makes money is essential for investors and anyone interested in the business of digital retail and supply chain services. In this post, we break down JD's quarterly income statement (Q2 2025) using a Sankey chart to visualize the financial flows — what comes in, where it goes, and what's left as profit.

Quick JD Overview

JD operates one of China’s largest e-commerce platforms, providing direct online retail, third-party marketplace services, and integrated logistics solutions. Revenue comes primarily from direct product sales (JD Retail), logistics services (JD Logistics), and emerging new businesses, including technology-driven initiatives and financial services. The company’s business segments reflect its dual focus on retail and logistics, with new ventures contributing to long-term growth potential.

Revenue Breakdown

• Total Revenue (Q2 2025): $49.3B (+22.4% YoY)
  • JD Retail Revenue: $42.9B (86.9% of total, +20.6% YoY)
  • JD Logistics Revenue: $7.13B (14.5% of total, +16.6% YoY)
  • New Businesses Revenue (New): $1.92B (3.9% of total, +198.8% YoY)
  • Other Revenue by Product 2: -$2.60B (-5.3% of total, +29.7% YoY)
• Growth is powered by expanding e-commerce demand, logistics network scale, and rapid growth in new business initiatives.

Gross Profit and Margins

• Gross Profit: $7.83B (15.9% gross margin)
  • Cost of Revenue: $41.5B (+22.0% YoY)
  • JD maintains moderate margins due to its high-volume, low-margin retail model, offset by operational efficiencies in logistics and technology.
• Most costs come from product procurement, fulfillment, and logistics operations.

Operating Income and Expenses

• Operating Income: Not disclosed for Q2 2025 (operating expenses exceed gross profit this quarter)
• Operating Expenses: $7.95B (+62.3% YoY)
  • R&D: $0.73B (+25.7% YoY, 1.5% of revenue) — Focused on automation, AI, and supply chain technology
  • SG&A: $4.19B (+116.3% YoY, 8.5% of revenue) — Includes marketing, administrative, and sales support costs
  • JD continues to invest heavily in innovation and growth, while expanding its operational footprint and maintaining efficiency in core retail and logistics.

Net Income

• Pre-Tax Income: Not disclosed for Q2 2025
• Income Tax: Not disclosed for Q2 2025
• Net Income: $0.85B (-51.1% YoY, 1.7% net margin)
• JD converts a modest portion of sales into profit due to the scale-driven, competitive nature of e-commerce and ongoing investment in new business lines.

What Drives JD's Money Machine?

• JD Retail: 86.9% of revenue comes from direct online sales of electronics, appliances, and general merchandise.
• Logistics Scale: JD Logistics revenue reached $7.13B, reflecting the company’s leadership in integrated supply chain services.
• Technology Investment: R&D spending of $0.73B supports automation, AI, and digital transformation across the platform.
• New Business Growth: New Businesses revenue surged +198.8% YoY, driven by fintech, cloud, and other emerging services, though these are not yet profitable.

Visualizing JD's Financial Flows

The Sankey chart below visualizes how each dollar flows from gross revenue, through costs and expenses, down to net income. This helps investors spot where value is created, what areas weigh on profits, and how efficiently the company operates.

• Most revenue flows into gross profit, with operating expenses (especially SG&A) taking the largest chunk.
• Even after large investments in R&D and logistics, only 1.7% of revenue drops to the bottom line.

Key Takeaways

• JD's money comes overwhelmingly from direct e-commerce retail sales
• High gross and net margins are limited by the low-margin, high-volume retail model, but supported by logistics and technology efficiencies
• Heavy investment in R&D and logistics infrastructure, balanced by operational scale
• Ongoing growth is driven by e-commerce demand, logistics expansion, and rapid scaling of new businesses

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FAQ About JD's Income Statement

1. What is the main source of JD's revenue in 2025?

JD generates over 86% of its revenue from direct e-commerce retail sales via JD Retail. Logistics services and new businesses contribute additional, but smaller, revenue streams.

2. How profitable is JD in Q2 2025?

JD reported net income of $0.85B in Q2 2025, with a net margin of approximately 1.7%, reflecting modest profitability driven by scale, but weighed down by high operating expenses and ongoing investments.

3. What are the largest expense categories for JD?

The biggest expenses on JD's income statement are operating expenses, particularly Sales, General & Administrative (SG&A) at $4.19B (+116.3% YoY) and Research & Development (R&D) at $0.73B (+25.7% YoY), as JD prioritizes technology, logistics, and platform expansion.

4. Why does New Businesses operate at a loss?

New Businesses, despite generating $1.92B in revenue, posted an operating loss in Q2 2025. This is because JD aggressively invests in fintech, cloud, and emerging technology initiatives, believing these will drive long-term growth—even if the division is unprofitable today.

5. How does JD's effective tax rate compare to previous years?

JD's effective tax rate for Q2 2025 is not disclosed in the latest filing. Historically, JD's tax rate has been moderate, influenced by tax benefits from technology investments and international structuring.