JD Logistics, Inc.

In Q2 2026, JDL reported total revenue of RMB 64.10 billion, up 24.3% year over year, and external customer revenue of RMB 44.23 billion, up 30.8% year over year. Non-IFRS net profit was RMB 2.64 billion with a 4.1% margin, and non-IFRS operating profit was RMB 2.34 billion, up 11.6% year over year; operating profit for the first half was RMB 3.59 billion, up 39.9% year over year. Gross profit margin was 9.7%, down 0.9 percentage points year over year. For the quarter, integrated supply chain customer revenue was RMB 30.17 billion, up 12.1%, and revenue from other businesses was RMB 33.93 billion, up 37.6%. Management said gross margin pressure was mainly due to Deppon being in a business adjustment stage, but noted the original core business gross margin was trending up. Looking ahead, management said the second half should see continued profit-margin improvement, recovery in Deppon, steady growth in freight delivery, and continued high growth in express delivery; no formal numerical full-year or next-quarter guidance was given.

CEO Wang said JDL is using its integrated supply chain strengths to offset macro pressure from a complex international environment, energy fluctuations, and geopolitical frictions. He emphasized that internationalization is becoming an important new growth engine, with JoyExpress network densification in Europe and overseas external business positioned as a second growth curve. He was also upbeat about technology, saying AI and automation are being deployed across warehousing, sorting, transportation, and distribution, and that these investments are increasingly translating into productivity gains.

CFO Wu said the quarter showed “solid operational resilience,” with revenue of RMB 64.10 billion, non-IFRS net profit of RMB 2.64 billion, and operating profit of RMB 2.34 billion. He highlighted cost discipline and productivity improvements: employee benefits were RMB 21.94 billion, outsourcing costs RMB 23.7 billion, vehicle costs RMB 3.26 billion, and rental costs RMB 3.39 billion; employee benefits and vehicle and rental costs all declined as a percentage of revenue, while outsourcing rose due to the crowd-resourced on-demand delivery business consolidation. He also said free cash flow net of lease payments was an inflow of RMB 2.15 billion, with operating cash flow net of lease payments of RMB 3.6 billion and capex of RMB 1.44 billion, mainly for automation equipment, self-operated vehicles, and other assets. JDL also continued share repurchases, having bought back 33.26 million shares under a program of up to USD 1.2 billion announced in May 2026.

Analysts focused on international business, robotics commercialization, customer mix/ARPU, and the outlook for express delivery and second-half profitability. Management said international business is growing quickly across 26 countries and more than 2 million square meters of overseas warehouses, with Europe the core market and external customer cooperation in electronics and other categories rising; it also said overseas automation and network densification are improving unit economics. On robotics and AI, management said JDL is moving from internal use to external commercialization of its self-developed automation and 'Metabrain' systems, citing new contracts and broader overseas sales efforts. On express delivery and second-half trends, management said growth has outpaced the industry, profitability should continue to improve, and Deppon should recover, though instant delivery could face some pressure.