JD Logistics (02618) reported a robust start to 2026, with first-quarter revenue climbing 29.0% year over year to RMB 60.58 billion, propelled by strong demand from both integrated supply-chain and other logistics customers.
Revenue Mix and Customer Dynamics • Integrated supply-chain services generated RMB 29.22 billion, up 25.9% and representing 48.2% of total revenue. The number of external integrated-supply-chain clients rose to 68,363 from 63,061, while average revenue per customer increased 6.6% to RMB 143,650. • “Other customers” contributed RMB 31.36 billion, a 32.0% jump that lifted their share to 51.8% of total sales, supported by a larger footprint in on-demand and express delivery. • Business with JD Group rose 32.0% to RMB 19.40 billion, equal to 32.0% of revenue; external customers remained dominant at 68.0% with RMB 41.18 billion.
Profitability Improvement • Gross profit expanded 42.6% to RMB 4.83 billion, raising gross margin to 8.0% from 7.2%. • Profit before tax increased 36.1% to RMB 1.01 billion, while net profit advanced 41.6% to RMB 0.86 billion. • Non-IFRS profit reached RMB 1.05 billion, up 40.1%, pushing non-IFRS net margin to 1.7% (Q1 2025: 1.6%). • Non-IFRS EBITDA improved 22.3% to RMB 4.59 billion, though margin eased 0.4 percentage points to 7.6%.
Cost Structure Operating cost rose 27.9% to RMB 55.75 billion, broadly tracking revenue growth. Key drivers included: – Employee benefit expenses for operational staff up 34.0% to RMB 22.50 billion, reflecting a larger full-time rider and warehouse workforce. – Outsourcing costs climbed 30.8% to RMB 22.40 billion amid expansion of the on-demand delivery business. – Rental and vehicle costs increased 9.0% and 10.8%, respectively, tied to warehouse and fleet enlargement.
Strategic and Operational Highlights 1. European Launch: JoyExpress began operations in the UK, Germany, the Netherlands and France, introducing “211” time-definite delivery, integrated installation for bulky goods and cold-chain services, mirroring JD’s domestic standards. 2. Automation Push: The newly upgraded “LangzuTech Packer” robotic arm enhances parcel grasping and loading efficiency through multi-sensor fusion and reinforcement learning, extending automation across the logistics chain. 3. Air Cargo Build-out: JD Airlines added its 13th self-operated all-cargo aircraft and opened new international routes—including Wuhan-Bangkok and Chengdu-Delhi—plus launched its first A330 wide-body freighter service. 4. Network Scale: As at 31 March 2026, the warehouse network covered nearly every county and district in China with more than 1,600 self-operated facilities and over 2,000 cloud warehouses, totaling above 34 million square metres of gross floor area. 5. Workforce Investment: Human-resources spending for employees and external personnel reached RMB 116.40 billion in the twelve months to 31 March 2026, underscoring JD Logistics’ role as a major employer.
Cash Flow and Liquidity The Group ended the quarter with RMB 42.20 billion in cash resources. Free cash outflow widened to RMB 2.80 billion (Q1 2025: RMB 2.20 billion) after capital expenditures and lease payments outweighed operating cash inflows of RMB 0.80 billion.
Capital Management JD Logistics plans to establish a trust to repurchase its own shares on-market for future share-based incentive schemes, potentially reducing new share issuance.
Outlook Management reiterated its focus on deepening integrated supply-chain capabilities, accelerating overseas expansion and advancing automation to sustain growth momentum and operational efficiency.