JD.com, Inc. (JD): History, Ownership, Mission, How It Works & Makes Money

How does JD.com, Inc. (JD), a Fortune Global 500 company, manage to consistently break records, like the one it set in November 2025 with a 40% growth in shoppers during the 11.11 Grand Promotion? You need to understand the engine powering this e-commerce giant, which just reported Q3 2025 net revenues of RMB299.1 billion (approximately US$42.0 billion) and surpassed 700 million annual active customers in October 2025. The company's unique, self-operated logistics network and supply chain-based model are the core competitive advantage that makes its $42.19 billion market capitalization a critical point of analysis for any investor or strategist. Dive into the history, mission, and mechanics of JD.com to map out where this retail and technology powerhouse is headed next.

JD.com, Inc. (JD) History

You're looking for the foundational story of JD.com, and honestly, it's a masterclass in adapting to crisis and having a stubborn, long-term vision. The company didn't start as a tech giant; it began as a single physical store in the face of a national health crisis, and its biggest strength today-its massive logistics network-was built against the advice of early investors. That's a key lesson: sometimes, your most defintely transformative decision is the one everyone else doubts.

Given Company's Founding Timeline

Year established

The company was established in 1998, starting its entrepreneurial journey on June 18.

Original location

The original business, named Jingdong, was based in Beijing, China, operating out of a physical storefront in the Zhongguancun area, which is known as Beijing's Silicon Valley.

Founding team members

The sole founder was Richard Liu (also known as Liu Qiangdong), who is credited with the foresight to transition the business to an online model and build the proprietary logistics system.

Initial capital/funding

Richard Liu started the business with a modest, borrowed sum of CNY 12,000, which was approximately $1,700 USD at the time. This initial capital was used to open the first physical store selling magneto-optical products.

Given Company's Evolution Milestones

Given Company's Transformative Moments

The company's trajectory wasn't a straight line; it was shaped by three major, non-consensus decisions that created its current form as a supply chain-based technology and service provider.

• The 2004 E-commerce Pivot: The SARS epidemic in 2003 forced the closure of physical stores, nearly bankrupting the company. Richard Liu's decision to move his entire business online in 2004 was a matter of survival, which inadvertently launched one of China's largest e-commerce platforms.
• The Self-Built Logistics Mandate (2007): This was the most critical strategic move. Early investors strongly opposed the massive capital expenditure required to build warehouses and a delivery fleet, viewing it as a distraction from the asset-light e-commerce model. Liu pushed through, and by late 2007, JD.com was offering same-day delivery in major cities, a service unparalleled in the market at the time. This infrastructure is now a core asset, JD Logistics, and a major revenue driver.
• The Ecosystem Expansion and Diversification: Recognizing the limits of pure retail, the company strategically spun off and developed new business units. This created a powerful ecosystem, including:
  • JD Finance (later JD Digits, then JD Technology)
  • JD Health (listed on HKEX)
  • JD Logistics (listed on HKEX)

This diversification is paying off; for the second quarter of 2025, net service revenues surged 29.1% year-on-year, reflecting the strength of these non-retail businesses. As of June 30, 2025, the JD Ecosystem employed approximately 900,000 people, showing the sheer scale of the operation. To understand the future direction, you should review their Mission Statement, Vision, & Core Values of JD.com, Inc. (JD).

JD.com, Inc. (JD) Ownership Structure

JD.com's ownership structure is a fascinating case study in corporate governance, balancing a large public float with the concentrated control of its founder. While the vast majority of economic shares are publicly traded, the company operates under a weighted voting rights (WVR) structure, meaning the founder retains outsized decision-making power.

JD.com's Current Status

JD.com, Inc. is a publicly traded company, a fact that is crucial for any investor to remember. It maintains primary listings on both the NASDAQ in the United States, under the ticker symbol JD, and the Hong Kong Stock Exchange (HKEX) under the stock code 9618. This dual-listing status provides liquidity and global access to capital, but the underlying control mechanism is what truly matters.

The company employs a dual-class share structure, which is the mechanism behind its weighted voting rights (WVR) system. This structure means that certain shares, specifically Class B shares held by the founder, carry disproportionately more voting power than the Class A shares held by most public investors. This is defintely a key factor in assessing governance risk.

JD.com's Ownership Breakdown

When you look at the economic ownership, the stock is widely held, but the voting power tells a different story. As of the latest available data, the founder, Richard Liu, controls approximately 71.7% of the aggregate voting power, despite holding a much smaller economic stake. Here's the quick math on the economic ownership breakdown, based on recent 2025 fiscal year data:

What this estimate hides is the WVR structure's impact. While institutional investors and the public own the lion's share of the company's value, the founder's Class B shares, which carry 20 votes each versus one vote for Class A shares, secure his control over strategic decisions. This means that even with a small economic percentage, the founder can largely dictate the company's direction, including its Mission Statement, Vision, & Core Values of JD.com, Inc. (JD).

JD.com's Leadership

The leadership team is a mix of the founder's strategic oversight and experienced operational executives who manage the day-to-day business. This separation of roles is a direct result of the founder stepping away from daily operations to focus on long-term strategy, a trend we've seen with other major Chinese tech firms.

The current management team, as of November 2025, is steering a company that generated net revenues of RMB299.1 billion (US$42.0 billion) in the third quarter of 2025 alone. You need to know who is making the decisions that drive this massive operation:

• Richard Qiangdong Liu: Chairman of the Executive Board. He is the founder and maintains ultimate strategic oversight and control via the WVR structure.
• Sandy Ran Xu: Chief Executive Officer (CEO) and Executive Director. Appointed in May 2023, she is responsible for daily operations and execution of strategy.
• Ian Su Shan: Chief Financial Officer (CFO). He has been in the role since May 2023, having previously served as CFO of JD Logistics, Inc.
• Pang Zhang: Chief Human Resources Officer.
• Chengfeng He: Chief Compliance Officer.

The average tenure for JD.com's management team is considered experienced at 4.9 years, which suggests stability in their operational core despite the high-level changes. This experienced team is crucial for navigating the competitive e-commerce landscape and managing the company's vast supply chain infrastructure.

JD.com, Inc. (JD) Mission and Values

JD.com's core purpose is a clear mandate to drive societal improvement through its technological and supply chain dominance, moving far beyond simple transactional retail. This focus on long-term trust and efficiency is the cultural DNA that guides every strategic investment, from logistics to new business lines like food delivery.

JD.com's Core Purpose

As a financial analyst, I look past the quarterly earnings to the foundational principles-the mission and values-that create defensible, long-term growth. JD.com's commitment to a 'responsible supply chain' is what truly differentiates it from competitors, and you can see this in their massive infrastructure investments.

Official mission statement

The official mission statement is not just a poster on the wall; it's a strategic driver that mandates constant innovation across the entire ecosystem. It forces them to look at technology as a solution for real-world problems, not just a way to cut costs.

• Making Lives Better through Technology

This mission translates directly into capital allocation. For instance, the company's investment in its smart logistics infrastructure is what allows for same- or next-day delivery for up to 90% of orders, a massive competitive edge. Honsetly, that kind of speed changes consumer behavior. You can see the financial impact of this tech focus in the JD Retail segment, which saw its operating margin climb to a strong 5.9% in the third quarter of 2025.

Vision statement

JD.com's vision is a high bar, but it's what keeps them focused on product authenticity and service quality, which is critical in a market often plagued by counterfeits.

• Being the Most Trusted Company in the World

Trust is built on consistency. The company's total personnel under the JD Ecosystem reached approximately 900,000 as of September 30, 2025, and the human resources expenditure for the preceding twelve months was a staggering RMB148.5 billion. This massive workforce, dedicated to the supply chain, is the concrete proof of their commitment to reliable service. Plus, the expansion of JD Logistics to enable 2-3 day delivery in 19 countries by 2025 shows they are taking this global trust-building seriously.

If you want to understand the market's perception of this stability, you should be Exploring JD.com, Inc. (JD) Investor Profile: Who's Buying and Why?

JD.com's Core Values

These six core values are the behavioral guardrails for the 900,000 people in the JD Ecosystem. They are the operational philosophy that underpins the supply chain-based technology and service provider model.

• Customer First
• Innovation
• Dedication
• Ownership
• Gratitude
• Integrity

The 'Innovation' value is evident in the robust Q2 2025 net revenues of RMB356.7 billion (US$49.8 billion), which was fueled in part by new growth areas like the early 2025 launch of their food delivery business. That's a clear action mapping to a core value. The 'Ownership' value is what drives the efficiency in their logistics network, which managed over 3,600 warehouses covering more than 34 million square meters as of mid-2025.

Given Company slogan/tagline

While the primary corporate focus is on the mission and vision, the international retail arm, Joybuy, uses a simple, consumer-facing tagline to capture the customer experience.

• Don't just buy, Joybuy.

This tagline, used for the European online retail platform, captures the desire to move beyond just a transaction to a pleasant, reliable experience. It's a softer, more emotional translation of the underlying mission of 'Making Lives Better through Technology.'

JD.com, Inc. (JD) How It Works

JD.com operates as a vertically integrated e-commerce giant, controlling the entire process from procurement to last-mile delivery, which allows it to guarantee product authenticity and unmatched speed, a model that has attracted over 700 million annual active customers as of October 2025. This focus on a proprietary logistics network, JD Logistics, is the core differentiator, enabling the company to generate massive revenue-net revenues hit RMB299.1 billion (US$42.0 billion) in the third quarter of 2025 alone.

JD.com's Product/Service Portfolio

The company's value delivery is split across three key segments: JD Retail, JD Logistics, and New Businesses. JD Retail remains the powerhouse, with net revenues of RMB250.6 billion (US$35.2 billion) in Q3 2025, but the high-growth service segments are where the strategic future lies, with net service revenues surging 30.8% in the same quarter.

JD.com's Operational Framework

The operational framework is built on a 'Super Supply Chain' that shifts the focus from simple e-commerce to a technology-driven retail infrastructure. JD.com acts as a retailer first, not just a marketplace, which is a key distinction. Here's the quick math: managing the entire supply chain, from sourcing to delivery, means they control quality and speed, which drives customer trust and repeat business.

• Direct Retail Model (JD Ziying): JD buys the inventory, holds it in its own network, and sells it directly to you. This B2B2C (Business-to-Business-to-Consumer) model is the backbone of their high-quality reputation and accounts for the majority of sales.
• Automated Logistics Network: JD Logistics uses a vast network of over 3,600 warehouses and 19,000 delivery stations. The application of AI and automation ensures that a remarkable 95% of retail orders are fulfilled within 24 hours.
• Retail as a Service (RaaS): The company opens its proprietary technology and logistics infrastructure to third-party partners and brands. This allows them to monetize their operational efficiency, generating high-margin service revenue that surged 30.8% in Q3 2025.
• New Business Incubation: Strategic investment, even at the cost of short-term profit, is key. The launch of JD Food Delivery and the JD Review platform in November 2025 is a defintely aggressive push into the local services market, a massive growth area.

JD.com's Strategic Advantages

JD.com's competitive edge isn't just about moving boxes faster; it's about using technology to build a structural moat that rivals struggle to replicate. This is a supply chain battle won with data and concrete assets. You can get a deeper look at the financial implications in Breaking Down JD.com, Inc. (JD) Financial Health: Key Insights for Investors.

• AI-Driven Supply Chain: Their proprietary AI innovations, like ChatRhino, optimize the supply chain with an impressive 92% demand prediction accuracy. This precision slashes inventory risk and reduces delivery costs by as much as 30% in pilot markets.
• Logistics Moat: By the end of 2025, JD Logistics is on track to double its overseas warehouse space, expanding its global footprint to compete directly with Amazon and Alibaba's international arms. This physical infrastructure is a massive barrier to entry.
• Premium Consumer Base: JD.com has successfully positioned itself as the platform for authentic, high-quality goods, particularly in electronics and imported products. They are a gateway for over 1,000 new overseas brands to enter China, targeting over RMB 10 billion in sales through their GigaGrowth Plan.
• New Product Leadership: The New Product Growth Initiative, launched in April 2025, commits tens of billions of RMB to support new product launches, aiming to incubate 600 products that will each hit RMB 100 million in annual sales. That's a clear, quantifiable path to future revenue.

JD.com, Inc. (JD) How It Makes Money

JD.com primarily makes money through a two-pronged model: direct sales of products (retail) and providing a suite of services, most notably logistics and marketplace commissions, all powered by its proprietary supply chain infrastructure.

JD.com's Revenue Breakdown

In the third quarter of 2025, JD.com reported total net revenues of RMB 299.1 billion (US$42.0 billion), demonstrating a clear reliance on its direct retail model while its service segments accelerate growth.

Here's the quick math: Product revenue-where JD.com buys inventory and sells it directly to you-accounted for RMB 226.092 billion of the total. The service side, which is higher-margin, is growing much faster, up 30.8% year-over-year (YoY) to RMB 72.967 billion. That's where the future margin expansion will defintely come from.

Business Economics

JD.com's economic fundamental is its self-operated logistics network, JD Logistics, which acts as a massive competitive moat and a growing revenue stream. The company focuses on a first-party (1P) business model, meaning it holds inventory and manages the entire supply chain, which ensures quality control but demands significant capital expenditure.

• Direct Retail (1P) Pricing: JD.com uses a cost-plus pricing strategy for its direct sales, particularly in electronics and home appliances, where it maintains a leading market share. The goal is volume and customer trust, not maximum margin.
• Service Revenue Drivers: The service segment is split between Marketplace & Marketing (commissions, advertising) and Logistics & Other Services. Logistics revenue alone was RMB 47.279 billion in Q3 2025, up 35.0% YoY, as JD.com increasingly offers its supply chain services to external companies.
• Cost Pressures: While revenue grows, fulfillment expenses-which cover warehousing, delivery, and customer service-are rising, hitting 7.4% of net revenues in Q3 2025, up from 6.3% a year prior. This is the cost of maintaining their signature same-day and next-day delivery standard.
• Advertising Acceleration: Marketplace and marketing revenue, a crucial high-margin component, surged 23.7% YoY to RMB 25.688 billion. This growth is a key indicator of merchant adoption and platform monetization strength.

What this estimate hides is the significant investment in new verticals like JD Food Delivery and overseas operations, which are currently operating at a loss but are intended to capture future market share. Exploring JD.com, Inc. (JD) Investor Profile: Who's Buying and Why?

JD.com's Financial Performance

The company's financial health is best viewed through its core retail profitability against its overall net income, which is often impacted by investments in new, loss-making ventures. JD.com has been effective at growing its user base, surpassing 700 million annual active customers in October 2025.

• Net Income: Net income attributable to ordinary shareholders for Q3 2025 was RMB 5.3 billion (US$0.7 billion). This was a significant drop from the prior year, largely due to increased marketing spend (up 110.5% YoY) to drive user growth and support new business initiatives.
• Core Retail Strength: JD Retail, the primary business segment, remains highly profitable, with operating income reaching RMB 14.8 billion (US$2.1 billion) and an operating margin of 5.9% in Q3 2025. This margin improvement shows the efficiency gains from their supply chain.
• Non-GAAP Earnings: The non-GAAP diluted net income per ADS (American Depositary Share), which excludes certain non-cash items, was RMB 3.73 (US$0.52) for the quarter. This is the number most analysts track to gauge underlying operational performance.
• Cash Flow: The company's focus on supply chain efficiency is what ultimately drives its cash conversion cycle, a crucial metric for any retailer, ensuring that cash is not tied up in inventory for too long.

Finance: Analyze the Q3 2025 marketing expense surge (7.0% of revenue) to identify the specific new business segments driving the cost increase and project their path to unit economics profitability by Q2 2026.

JD.com, Inc. (JD) Market Position & Future Outlook

JD.com's position as of late 2025 is one of disciplined, supply-chain-driven growth, leveraging its direct-sales model to maintain a strong revenue share in a fiercely competitive market, even as it invests heavily in new ventures like food delivery and AI-driven healthcare. The company is actively diversifying beyond its core electronics and home appliance categories, focusing on general merchandise and expanding its logistics network globally to secure long-term value creation.

This is a calculated gamble: near-term profitability is pressured by strategic investments, but the long-term goal is to build an unassailable 'Super Supply Chain.'

Competitive Landscape

The Chinese e-commerce arena is a high-stakes battle between three giants. JD.com maintains the largest revenue share due to its first-party, inventory-holding model, which records the full transaction value as revenue, unlike the marketplace models of its main rivals. The table below reflects the competitive landscape based on 2024 revenue market share data, which is the most recent comparative data available. [cite: 3 in first search]

Opportunities & Challenges

JD.com is strategically allocating capital to capture growth outside of its traditional core, but this requires navigating a complex regulatory and economic environment. The company's Q3 2025 results showed net revenues of RMB299.1 billion (US$42.0 billion), a 14.9% increase year-over-year, but the overall non-GAAP operating margin was compressed to 0.1% due to these investments, down from 5.0% a year prior. [cite: 7 in second search]

Industry Position

JD.com is the quality-focused premium player in China's e-commerce market, a position reinforced by its unparalleled logistics network, which is evolving into a 'Super Supply Chain' for global stability. The core JD Retail business remains highly efficient, with an operating margin of 5.9% in Q3 2025. [cite: 7 in second search] This efficiency is the cash engine funding the company's aggressive diversification. The goal is to shift from single-point security to system-wide resilience, which is why JD Logistics is a major focus.

• Supply Chain Leadership: JD.com owns and operates over 130 different types of overseas warehouses, spanning 1.3 million square meters globally as of late 2025. [cite: 10 in first search]
• Customer Base: The company surpassed a milestone of 700 million annual active customers in October 2025, showing strong user acquisition and retention. [cite: 7 in second search]
• Strategic Focus: Initiatives like the Asia-Pacific Import Doubling Plan aim to double product imports from APEC countries over the next three years, cementing its role in cross-border e-commerce. [cite: 10 in first search]

The market is defintely pricing in the risk of new business ventures, but the underlying cash flow from the core retail segment is strong. For a deeper dive into the company's fiscal stability, you should check out Breaking Down JD.com, Inc. (JD) Financial Health: Key Insights for Investors.