This article first appeared on GuruFocus .
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Total Revenue:RMB55.1 billion, an increase of 24.1% year over year.
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Non-IFRS Net Profit:RMB2.02 billion, with a profit margin of 3.7%.
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Revenue from Integrated Supply Chain (ISC) Customers:RMB30.1 billion, up 45.8% year over year.
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Revenue from External ISC Customers:RMB8.9 billion.
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Revenue from Other Customers (Express and Freight Delivery Services):RMB24.9 billion, a 5.1% year-over-year growth.
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Gross Profit Margin:9.1%.
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Employee Benefit Expenses:RMB21.82 billion, up 49.8% year over year.
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Outsourcing Cost:RMB16.97 billion, up 13% year over year.
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Total Rental Cost:RMB3.20 billion, up 2.5% year over year.
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Operating Expenses:RMB3.70 billion, up 15.9% year over year.
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R&D Expenses:RMB1.06 billion, up 15.9% year over year.
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General and Administrative Expenses:RMB1.02 billion, up 23.6% year over year.
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Non-IFRS EBITDA:RMB5.32 billion, with a margin of 9.7%.
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Free Cash Flow:RMB0.59 billion.
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Warehouse Network:Over 1,600 self-operated warehouses and over 2,000 third-party operated cloud warehouses, covering more than 34 million square meters.
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Warning! GuruFocus has detected 8 Warning Signs with BOM:539150.
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Is JDLGF fairly valued? Test your thesis with our free DCF calculator.
Release Date: November 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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JD Logistics Inc ( JDLGF ) achieved a total revenue of RMB55.1 billion in Q3 2025, marking a 24.1% year-over-year increase.
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The company's non-IFRS net profit was RMB2.02 billion, with a profit margin of 3.7%, indicating strong profitability.
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Revenue from integrated supply chain (ISC) customers reached RMB30.1 billion, a 45.8% year-over-year increase, showcasing robust growth in this segment.
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JD Logistics Inc ( JDLGF ) expanded its warehouse network to cover nearly all regions in China, with over 1,600 self-operated warehouses and over 2,000 third-party cloud warehouses.
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The company was rated as the Strongest Logistics Brand 2025 worldwide by Brand Finance, highlighting its strong international competitiveness and brand influence.
Negative Points
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Employee benefit expenses increased by 49.8% year over year, primarily due to the addition of full-time food delivery riders, impacting overall costs.
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Non-IFRS EBITDA decreased by 7.1% year over year, with a non-IFRS EBITDA margin of 9.7%, indicating a decline in operational efficiency.
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The company's general and administrative expenses rose by 23.6% year over year, which could pressure profit margins.
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Despite revenue growth, the non-IFRS profit margin was down 21.5% year over year, suggesting challenges in maintaining profitability.
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The integration of new business segments, such as local on-demand delivery, may present operational challenges and require significant investment.
Q & A Highlights
Q: Can you comment on the capital investment efficiency and cost related to your five-year automation plan? Also, how are you managing orders with full-time and outsourced riders? A: Over the years, JDL has accumulated significant automation technologies and experiences. We have deployed unmanned vehicles in about 20 cities for docking, collection, and pickup. Our AI Super Brain and robots will be integrated to enhance sorting, transportation, and delivery. We aim to balance investment and return, focusing on long-term optimization. Regarding full-time riders, we have seen positive growth and stable revenue. Our standardized training and refined operations improve delivery timeliness and user experience. We are integrating resources to enhance last-mile delivery services, especially during peak times, with complementary efforts from both full-time and outsourced riders.
Q: What are your plans and implementations for expanding JD Logistics' footprint in the overseas market? A: Our international business focuses on capacity building, aiming to establish a global network by the end of 2025. We plan to double our overseas warehouse floor area and improve terminal-to-terminal capacities, including routes and cross-border timeliness. Our goal is to reduce compliance costs for customers and expand our delivery network. We are optimizing network operations and localized delivery capacities to offer long-term sustainable value.
Q: Can you share more about the number of ISC customers and ARPC, and which segment is your core focus? A: We aim to improve both the number of ISC customers and ARPC. We focus on offering the best products to cover more clients, including those not currently using ISC services. For key accounts, we have project and account managers to explore more opportunities. While there may be seasonal fluctuations in ARPC, we expect long-term optimization and revenue growth.
Q: How do you plan to manage the cost and efficiency of your automation investments? A: We will manage costs by balancing investment and return, focusing on long-term optimization. Our automation investments are expected to improve mid- to long-term revenue. We will adjust our CapEx plan based on real-life data and industry needs, gradually upgrading investments to drive growth and reduce logistics costs.
Q: What are your strategies for enhancing delivery timeliness and customer experience in the express delivery sector? A: We are expanding high-timeliness delivery capacities and focusing on high-value services. Our cooperation with leading brand merchants has increased business share and improved service quality. We are optimizing last-mile fulfillment processes and integrating local on-demand delivery subsidiaries to enhance our product portfolio and user experience.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
