---
title: "JD.com's Q1 2024 data brief review - Overall excellent, but JD Retail increases revenue without increasing profits"
description: "Brief comment: Following Alibaba, the second e-commerce giant JD.com released its Q1 2024 financial report, with both revenue and operating profit accelerating growth, exceeding expectations overall, "
type: "topic"
locale: "en"
url: "https://longbridge.com/en/topics/21139300.md"
published_at: "2024-05-16T14:42:48.000Z"
author: "[数据价投](https://longbridge.com/en/profiles/11810707)"
---

# JD.com's Q1 2024 data brief review - Overall excellent, but JD Retail increases revenue without increasing profits

**Brief Comment**

Following Alibaba, the second e-commerce giant JD.com released its Q1 2024 financial report, showing accelerated growth in both revenue and operating profit, exceeding expectations overall. It can be considered a report card of both revenue and profit growth.

![Image](https://pub.pbkrs.com/uploads/2024/18150cfeb6c818b690542e54bedb80dc?x-oss-process=style/lg)

**1) Quarterly Performance:**

Q1 2024 **revenue** reached 260.074 billion yuan, with a **growth rate of 7.04%** (compared to 3.60% in Q4 2023), showing an increase;  
 

**Operating profit** was 7.7 billion yuan, with a **growth rate of 19.81%** (compared to -58.06% in Q4 2023), turning from negative to positive and showing significant growth;

**Non-IFRS net profit attributable to ordinary shareholders** was 8.899 billion yuan, with a **growth rate of 17.23%** (compared to 9.87% in Q4 2023), indicating an acceleration in growth;

**2) Sources of Profit Growth:**

Q1 overall achieved both revenue and profit growth, with profit growth outpacing revenue growth. JD.com's profit growth primarily came from **"cost reduction"**:

The growth rate of **operating costs** was slightly lower than revenue growth, leading to a **10.42% year-on-year increase in gross profit**;

Meanwhile, **administrative expenses** decreased significantly by 20.99% year-on-year, mainly due to reduced incentive expenses;

Compared to Tencent, the **"efficiency improvement"** aspect was relatively minor.

**3) Segment Breakdown**

i) The standout segment in Q1 was **logistics**: Logistics revenue reached 42.137 billion yuan, up 14.73% year-on-year; operating profit was 224 million yuan, surging 119.95% year-on-year.

ii) The core **JD Retail** segment, while achieving revenue of 226.835 billion yuan (up 6.82% year-on-year, showing accelerated growth), saw operating profit decline by 5.27% year-on-year to 9.325 billion yuan, likely due to a significant 15.6% increase in sales expenses from promotional activities; the operating profit margin was 4.11%, slightly down from 4.64% in the same period last year.

iii) **Other (New Businesses + Dada)** showed little improvement this quarter, with revenue at 4.87 billion yuan (down 19.18% year-on-year) and operating loss widening to -670 million yuan (down 79.14% year-on-year); the decline expanded compared to the previous quarter.

**4) Business Segment Breakdown**

i) **Product revenue** grew 6.62% year-on-year, with **electronics and home appliances** up 5.31% and **general merchandise** up 8.57%, both performing reasonably well;

ii) **Service revenue** grew 8.75% year-on-year, with **logistics and other services** revenue up 13.84%, a standout performance; however, **platform and advertising services** revenue grew only marginally by 1.19%, falling short of expectations.

**5) Share Buybacks**

The Q1 report disclosed that from January 1 to May 15, 2024, JD.com repurchased approximately $1.3 billion worth of shares, significantly increasing buyback intensity;

Moving forward, it will be worth observing whether the same buyback intensity will be maintained after the recent stock price surge; this applies similarly to other China concept stocks.

**6) Summary**

JD.com's Q1 report overall showed both revenue and profit growth, a solid performance.

The logistics segment and share buyback intensity were highlights;

However, the core JD Retail segment saw revenue growth without profit growth: while revenue growth accelerated compared to its own performance, operating profit declined year-on-year, reflecting increased investment in promotional activities. Whether these investments will lead to profit realization in the future remains to be seen.

**I. Operating Performance**

**1\. Operating Performance - Quarterly**  
 

![Image](https://pub.pbkrs.com/uploads/2024/fd80782dc1541e93fa36f69d43cf732e?x-oss-process=style/lg)

**Revenue**

![Image](https://pub.pbkrs.com/uploads/2024/e5bb7e2ad0996b0d2deb8c72ad3632f1?x-oss-process=style/lg)

**Operating Profit**  
 

![Image](https://pub.pbkrs.com/uploads/2024/be52adf4c05347743952ddd49d755b91?x-oss-process=style/lg)

**Non-IFRS Net Profit Attributable to Ordinary Shareholders**  
 

![Image](https://pub.pbkrs.com/uploads/2024/d228f6127b6201d84a504646a3b17d3b?x-oss-process=style/lg)

**II. Segment Breakdown**

**1\. Segment Revenue**

![Image](https://pub.pbkrs.com/uploads/2024/ea93917447578c7c67dfff49a80f62c7?x-oss-process=style/lg)

**2\. Segment Operating Profit**  
 

![Image](https://pub.pbkrs.com/uploads/2024/4177a402cedbfb01c038dffd3fd60541?x-oss-process=style/lg)

**III. Business Segment Breakdown**

**1\. Business Revenue**

![Image](https://pub.pbkrs.com/uploads/2024/a7c6790399a7ef00894275610b93443f?x-oss-process=style/lg)

**IV. Costs & Expenses**

![Image](https://pub.pbkrs.com/uploads/2024/04391594872537b4ca58ca3ea1358845?x-oss-process=style/lg)

![Image](https://pub.pbkrs.com/uploads/2024/4a248f07d9642420618cb31187375958?x-oss-process=style/lg)

**V. Cash Flow**

![Image](https://pub.pbkrs.com/uploads/2024/28050c7016b5d33dfe76e431738f2c9c?x-oss-process=style/lg)

![Image](https://pub.pbkrs.com/uploads/2024/9f7342ee0c69f8c2163564ffbf32f91c?x-oss-process=style/lg)

$JD-SW(09618.HK) $JD.com(JD.US) $TENCENT(00700.HK)

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---

> **Disclaimer**: This article is for reference only and does not constitute any investment advice.