JD Logistics Q3 profit sink 7.9pc

JD Logistics (2618) reported its net profit for the third quarter dropped 7.9 percent year-on-year to 2.03 billion yuan (HK$2.22 billion), dragged down by expanding costs.

The company’s revenue increased by 24.1 percent to 55.1 billion yuan from 44.4 billion yuan for the same period last year.  

Revenue from integrated supply chain customers reached 30.1 billion yuan, representing a year-over-year increase of 45.8 percent. Among all, revenue from external integrated supply chain customers reached 8.9 billion yuan, representing a year-over-year increase of 13.5 percent. 

Selling and marketing expenses increased by 13.5 percent to 1.6 billion yuan, mainly due to the expansion of the selling and marketing team to promote service offerings.

Research and development expenses increased by 15.9 percent to 1.1 billion yuan, primarily driven by the company’s continuing investment in technology and innovation.

General and administrative expenses increased by 23.6 percent to 1.1 billion yuan, predominantly driven by the increase in employee benefit expenses.