Shares of JD.com slipped more than 10 per cent in Hong Kong after the company reported its first quarterly revenue decline since listing in 2014, following a 7 per cent drop on Nasdaq. Revenues fell nearly 3 per cent year on year in the second quarter to Rmb346bn ($51bn) after a government subsidy programme encouraging upgrades to electronics and home goods ended. The figure still beat analysts’ expectations, which had factored a slowdown as the subsidy impact faded. Profitability improved despite the drop, with net income rising nearly 15 per cent to Rmb7bn. Marketing expenses fell sharply as JD.com reined in ad spending from its food‑delivery push, and management said delivery losses narrowed. Analyst Robin Zhu of Bernstein called the share price decline “unsurprising” after a recent rally, noting JD’s focus on profitability was reassuring. The company expects growth to accelerate in the second half and continues its overseas expansion through the Joybuy platform in the UK and Europe, where it has seen surging sales. JD.com’s earlier attempts to acquire Currys, Argos and Ceconomy remain pending, with the EU investigating the Ceconomy bid under foreign subsidy rules. The firm also warned that robots may eventually replace 700,000 delivery workers.

Management highlighted that the end of the subsidy programme was the primary driver of the revenue dip, while cost‑cutting in marketing and a narrowing of food‑delivery losses helped preserve margins. The company’s Hong Kong‑listed shares are down more than 11 per cent over the past year, and its Nasdaq shares are down 7 per cent.

JD.com’s overseas push continues with Joybuy’s “Summer Black Friday” campaign, offering discounted electronics and home appliances with delivery and installation. The firm is also exploring acquisitions to broaden its retail footprint in Europe, though regulatory scrutiny of its Ceconomy bid adds uncertainty to the strategy.