JD Logistics Rides the Global Supply Chain Wave: 30.8% External Revenue Growth and the Rise of Second Curve
Q2 2026 beat on strong international expansion and AI-driven efficiency, offsetting Deppon integration drags.
2618.HK · Earnings Call · 2026-08-13
The Growth Engine: External Customers and Integrated Supply Chain
JD Logistics' Q2 2026 results underscore a clear acceleration in its integrated supply chain business, with total revenue of RMB 64.10 billion (+24.3% YoY) and external customer revenue surging 30.8% to RMB 44.23 billion. The CFO, Hao Wu, highlighted the resilience: “In the second quarter of 2026, JDL demonstrated solid operational resilience. Despite facing numerous external uncertainties, we still achieved high-quality revenue growth and a significant improvement in operating profit.” — Hao Wu, CFO · 2026-08-13 The external integrated supply chain revenue grew 12.5% YoY, with both customer count and average revenue per customer improving, signaling deepening penetration and premium customers gaining share. Management explicitly noted that the customer structure is shifting toward high-net-worth clients, driving double-digit growth from that segment.Internationalization: The Second Growth Curve
A key narrative shift in this call is the emphasis on international business as a structural growth engine. The CEO, Wang Zhenhui, described Europe as the core market, with Joybuy fulfillment and a network spanning 26 countries and over 2 million square meters of overseas warehouses. He stated: “We are accelerating the overseas warehouses network encryption. Now the fulfillment efficiency and also the digitization of our supply chain have been enhanced to improve our overall business performance.” — Zhenhui Wang, CEO · 2026-08-13 The company is replicating its domestic supply chain model abroad, targeting Chinese brands going global and local European customers. In Q2, they signed a contract with a Japanese medical brand for automated equipment, marking the first external sale of their technology—a pivotal move from internal tooling to technology export. The CEO's closing remarks reinforced this: “We are firmly seizing the opportunities brought by the structural trend of Chinese brands and supply chain going global to cultivate our express delivery brands in Europe.” — Zhenhui Wang, CEO · 2026-08-13AI and Automation: From Internal Efficiency to External Revenue
Logistics technology is no longer just a cost saver; it is becoming a product line. The company touted the LangzuTech robot series and the Metabrain large model, which now drive autonomous scheduling, sorting, and dispatching. Notably, they have started exporting these capabilities: "We provide such automatic equipment built by ourselves, providing them a comprehensive solution, including delivery fulfillment and intelligent supply chain system." (component 5098225482452225847) This is a significant step toward monetizing R&D investments—a theme that has been building in prior quarters. In the March 2026 call, the CFO had already expressed confidence: “About the growth momentum prospects, in 2026, we are having strong confidence in seeing the growth momentum in 2026.” — Hao Wu, CFO · 2026-03-05 And the CEO then added: “It is expected that by 2026, the European business will be growing very fast.” — Zhenhui Wang, CEO · 2026-03-05 Now that promise is materializing.Profitability: Deppon Drag and Structural Improvements
While revenue is booming, margins remain under pressure due to the Deppon integration. Gross margin fell 0.9pp to 9.7%, but the company insists this is a transitory adjustment. The H1 operating profit rose 39.9% YoY, and non-IFRS net profit margin improved to 4.1%. Cost discipline is visible: employee benefit expenses as a % of revenue fell 1.0pp, and rental costs dropped 1.1pp, reflecting AI-enabled capacity and network optimization. The company expects operating margin to improve further in H2 as Deppon recovers. The CFO's November 2025 guidance had already foreshadowed this: “we want to have an entire global network by the end of 2025. The growth area will be doubled by the end.” — Unknown Executive, Executive · 2025-11-13 This quarter's results show that network expansion is now yielding both top-line and bottom-line benefits.The company also repurchased 33.26 million shares under its USD 1.2 billion program, signaling confidence. In a global market obsessed with tech-driven logistics (as seen in broader AI and automation keywords), JD Logistics is carving a niche by combining physical network scale with proprietary AI—a differentiated angle that few pure logistics peers can match.Total revenue reached RMB 64.10 billion, increasing by 24.3% year-on-year, of which revenue from external customers reached RMB 44.23 billion, increasing by 30.8% year-over-year.