Shares of JD Dropped as Profit Dragged by New Businesses

By Tracy Qu

JD.com shares weakened in Hong Kong after the Chinese e-commerce giant's profits were hit by heavy spending on its food delivery and other new businesses.

Its Hong Kong-listed shares were down 5.6% at midday on Friday, on track for their biggest daily decline since April. In comparison, the Hang Seng Tech Index declined 2.2%.

The company late Thursday said that its net profit in three months ended September dropped 55% compared with the same period a year earlier. Third quarter revenue rose 15% on year.

JD.com, which still considers e-commerce its primary business, has moved quickly to gain a foothold in the food-delivery sector. It entered the fast-growing market earlier this year, using heavy subsidies to lure customers away from Meituan, the market leader, and Ele.me, the No. 2 player.

The company's profits are likely to remain pressured, according to HSBC analysts in a research note. JD is likely to "step up subsidies to defend sales," they say.

Intense investment in its budget shopping platform Jingxi and overseas business is likely to be sustained in the short run, they say. HSBC retains a buy rating on its ADRs but trims their target price to $39.00 from $40.00. JD.com's ADRs last traded at $30.71.

Write to Tracy Qu at tracy.qu@wsj.com

(END) Dow Jones Newswires

November 14, 2025 00:06 ET (05:06 GMT)