Core Viewpoint - JD Logistics (02618) shares increased nearly 5%, reaching HKD 13.91, with a trading volume of HKD 422 million [1] Group 1: Industry Insights - The China Logistics and Purchasing Federation reported that the e-commerce logistics index for August was 112.3 points, up 0.3 points from the previous month, marking a new high for the year [1] - The e-commerce logistics index has risen for six consecutive months [1] - The total business volume index for e-commerce logistics surpassed 131 points, increasing by 0.5 points from the previous month, indicating accelerated growth [1] Group 2: Company Analysis - Bank of America released a report stating that the price adjustment effects in the Chinese express delivery industry have already taken effect, suggesting a lack of positive catalysts for the industry in the short term [1] - JD Logistics is viewed as having a particularly good entry point, as third-quarter profit expectations have been reset [1] - Bank of America maintains a target price of HKD 16 for JD Logistics and assigns a "Buy" rating [1]

Core Viewpoint - Liu Qiangdong is actively pursuing international expansion through significant acquisitions, including logistics assets in Singapore and consumer electronics retailers in Europe and Hong Kong, indicating a strategic focus on enhancing JD's global supply chain capabilities [6][11]. Group 1: Recent Acquisitions - JD's infrastructure investment platform, JD Chanfang, is set to acquire logistics assets in Singapore for approximately 306 million SGD (about 1.7 billion CNY), marking another significant investment by Liu Qiangdong [3][5]. - The logistics assets include properties located in key industrial areas of Singapore, such as Ubi Avenue and Changi South, which are strategically advantageous for JD's operations [7][10]. - The largest asset in this acquisition is a logistics hub on Pandan Avenue, valued at 14 million SGD, which constitutes about half of the total transaction price [7]. Group 2: Strategic Partnerships - The acquisition is a collaborative effort with Swiss investment firm Partners Group and Eza Hill, a platform backed by Hillhouse Capital, highlighting a trend of partnerships in large-scale investments [9][10]. - Eza Hill has been actively acquiring logistics assets in Southeast Asia, indicating a broader strategy to build a robust logistics network in the region [10]. Group 3: International Expansion Strategy - Liu Qiangdong's recent acquisitions, including a 18 billion CNY purchase of European electronics retailer CECONOMY and a potential 4 billion HKD acquisition of Hong Kong's Jia Bao Foods, reflect a commitment to internationalization [6][11]. - JD has established a logistics network covering 19 countries and regions, with over 2,000 employees overseas, positioning itself for further growth in international markets [6][11]. - The company plans to integrate the newly acquired logistics assets into a Real Estate Investment Trust (REIT) with a target size exceeding 1 billion USD (approximately 7.2 billion CNY), which would be the largest new fund in Singapore's REIT market in over a year [10].

Core Insights - The logistics capital market has seen significant recovery after a prolonged period of decline, with nearly 80% of the 25 logistics companies analyzed experiencing substantial market value restoration [1][3] - Notably, logistics technology companies have shown remarkable growth, with the total market value of logistics technology stocks increasing by over 64% year-to-date [9][12] - Despite the overall market recovery, some companies, particularly in the "Tongda" system, have faced declines in market value, highlighting the competitive pressures within the industry [3][6] Market Performance - Shentong Express has the highest market value increase among express companies at 64.3%, reaching a total market value of 25.3 billion yuan [3][5] - Jitu Express follows with a 55.95% increase, achieving a market value of 77.2 billion yuan, surpassing JD Logistics, which saw a slight decline of 0.78% to 76.1 billion yuan [3][5] - YTO Express and Debon Logistics also reported market value increases of 27.55% and 10.53%, respectively, while Zhongtong Express experienced a decline of 4.23% [4][5][6] Financial Performance - Jitu Express reported a total revenue of $5.5 billion for the first half of 2025, a 13.1% year-on-year increase, with a net profit of $160 million, up 147.1% [3][6] - Shentong Express achieved a revenue of 25.02 billion yuan, a 16.02% increase, with a net profit of 453 million yuan, up 3.73% [3][4] - SF Express maintained its position as the market leader with a market value of 210.2 billion yuan, reporting a revenue of 146.86 billion yuan, a 9.26% increase, and a net profit of 5.738 billion yuan, up 19.37% [6][8] Industry Trends - The logistics industry is experiencing a "反内卷" (anti-involution) trend, with companies adjusting pricing strategies to combat the long-standing issue of "volume-price inversion" [7][8] - The average revenue per package has declined across major express companies, contributing to lower profit margins [7][8] - The logistics technology sector is gaining attention, with companies like Dongjie Intelligent and Zhongyou Technology leading in market value growth, indicating a shift towards technological innovation in logistics [9][10][12]

Core Viewpoint - The upcoming adjustment of the Hang Seng Index on September 5 will include China Telecom, JD Logistics, and Pop Mart, increasing the number of constituent stocks from 85 to 88, which is expected to attract passive fund inflows and lead to significant trading volume and price volatility for these stocks [2][3]. Group 1: Index Adjustments - The inclusion of China Telecom, JD Logistics, and Pop Mart in the Hang Seng Index is anticipated to draw passive investment, resulting in increased trading activity and price fluctuations for these stocks [2][3]. - Pop Mart will also be added to the Hang Seng China Enterprises Index, while other stocks like Crown City Watch and Jewelry and Sipai Health will be removed from the index [2]. - The Hang Seng Composite Index will see an increase in constituent stocks from 502 to 504, with the inclusion of China Foods and Heng Rui Pharmaceutical [2]. Group 2: Market Impact - Historical trends indicate that active funds often position themselves ahead of index announcements, leading to noticeable volatility in related stocks prior to the effective date [3]. - Passive funds typically adjust their holdings on the last trading day before the effective date, which may result in a surge in trading volume and price movements, particularly for small-cap stocks [3]. - The adjustment is expected to enhance market confidence in the relevant sectors and stocks, as the Hong Kong market is viewed as a "global value trap" with low valuations providing a good margin of safety for investors [3]. Group 3: Fund Inflows - Goldman Sachs estimates that consumer retail, software and services, and automotive stocks will see the most passive fund inflows, ranging from $300 million to $780 million [4]. - Specific stocks like Horizon Robotics, Pop Mart, BYD, Meituan, Xiaomi, and Alibaba are projected to receive significant net buying, estimated between $185 million to $610 million [4]. Group 4: Company Profiles - China Telecom is a leading player in the telecommunications industry, focusing on 5G construction and cloud computing, reflecting the importance of traditional industry leaders in the index [5]. - JD Logistics represents the new economy logistics sector, highlighting the index's focus on high-growth and core supply chain enterprises [5]. - Pop Mart, as a representative of the trendy toy culture, has seen significant growth in market capitalization and liquidity since its listing, becoming a key player in the new consumption sector [5]. - BYD is a global leader in electric vehicle manufacturing, with a diverse business portfolio that includes passenger cars, commercial vehicles, batteries, semiconductors, and mobile components, exemplifying technological innovation and the green energy transition [5]. - Meituan is a leading e-commerce platform in China, covering a wide range of services and representing the platform and digital economy through innovative business models [5].

Core Viewpoint - The article highlights the pride and honor felt by several outstanding JD Logistics couriers who were invited to witness the 80th anniversary of the victory in the Chinese People's War of Resistance Against Japanese Aggression and the World Anti-Fascist War, showcasing their contributions to society and the recognition they received for their hard work [1][3]. Group 1: Recognition of Couriers - Multiple couriers from JD Logistics, including Zang Jiquan, Wei Tuanjie, and Feng Yubin, were recognized as exemplary representatives of the industry, reflecting their dedication and outstanding performance in their roles [1][3]. - Wei Tuanjie, a courier with seven years of experience, delivered over 300,000 packages with a record of zero complaints and was awarded the 2024 Capital Labor Medal [3][5]. - Zang Jiquan, another courier, received a car as a reward for his exceptional performance and has been recognized as one of Beijing's "Most Beautiful Couriers" [5]. Group 2: Personal Stories and Contributions - Feng Yubin, a courier with an eight-year military background, expressed a deep emotional connection to the event, emphasizing the pride in serving the country and the community [6]. - Other couriers, such as Li Hao and Song Xuewen, have also achieved significant milestones, including being recognized as "Most Beautiful Couriers" and maintaining a record of zero complaints over 14 years [8]. - The couriers' stories reflect a broader narrative of dedication and service, illustrating how they contribute to the community and embody the spirit of hard work and resilience [9].

Revenue and Profitability - Total revenue for the first half of 2025 reached RMB 98.53 billion, a year-on-year increase of 14.1%[8] - Revenue from external customers amounted to RMB 66.1 billion, growing by 10.2% and accounting for 67.1% of total revenue[11] - Non-IFRS profit for the period was RMB 3.34 billion, reflecting a 7.1% increase year-on-year[8] - Integrated supply chain customer revenue reached RMB 50.1 billion, up 19.9% year-on-year, with external integrated supply chain customer revenue at RMB 17.6 billion, increasing by 14.7%[12] - Revenue from other customers, including express and freight services, reached RMB 48.4 billion in the first half of 2025, representing a year-on-year growth of 8.7%[22] - The company reported a pre-tax profit of RMB 3,298,755 thousand for the six months ended June 30, 2025, compared to RMB 2,889,199 thousand in the previous year[44] - Net profit for the six months ended June 30, 2025, was RMB 3 billion, up from RMB 2.6 billion in the same period of 2024[58] - Gross profit and gross margin for the six months ended June 30, 2025, were RMB 8.9 billion and 9.0%, respectively, compared to RMB 8.5 billion and 9.8% in 2024[54] Customer and Market Growth - The number of external integrated supply chain customers grew to 73,713, a 14.5% increase compared to the previous year[12] - The average revenue per external integrated supply chain customer was RMB 239,000[12] - The company operates over 1,600 warehouses and more than 19,000 delivery stations, employing over 660,000 self-operated staff, including full-time delivery riders[15] - Customer satisfaction for express services remains at the top tier of the industry, according to statistics from the State Post Bureau[16] - The company has enhanced its rural delivery network to support rural revitalization strategies by increasing service points and expanding delivery coverage[34] Technological and Operational Enhancements - The company continues to enhance its technological capabilities and optimize network layout to improve resource efficiency and profitability[11] - The company continues to invest in technology, employing over 4,700 R&D personnel to integrate automation and AI into logistics operations[15] - The logistics technology segment focuses on innovation, with over 5,000 authorized patents and software, including more than 3,000 related to automation and unmanned technology as of June 30, 2025[28] - The company has strengthened its logistics infrastructure, enhancing service capabilities and market competitiveness through investments in air and land transportation[15] Financial Position and Cash Flow - As of June 30, 2025, the total cash resources of the company amounted to RMB 44.3 billion[70] - The net cash inflow from operating activities for the six months ended June 30, 2025, was RMB 6,568,722 thousand, compared to RMB 7,382,334 thousand in 2024, indicating a decrease of approximately 11%[71][72] - The net cash used in investing activities for the six months ended June 30, 2025, was RMB 7,324,796 thousand, significantly higher than RMB 709,497 thousand in the same period of 2024[71][73] - The net cash used in financing activities for the six months ended June 30, 2025, was RMB 7,759,491 thousand, compared to RMB 5,995,724 thousand in 2024, reflecting an increase of approximately 29.4%[71][75] - The company's debt-to-equity ratio as of June 30, 2025, was approximately 11.1%[76] Shareholder and Equity Information - The total number of shares issued as of June 30, 2025, is 6,648,081,772[90] - The company has implemented pre-IPO employee stock incentive plans and post-IPO share option and reward plans[84] - Liu Qiangdong holds 345,605,330 shares, representing 12.1% of total voting rights in JD.com, with 72.2% of voting rights through controlled entities[95] - The total number of unexercised stock options granted under the pre-IPO employee stock incentive plan is 93,636,701 shares, with 5,691,130 shares exercised during the reporting period[103] Acquisitions and Investments - The company completed the first phase of the acquisition of 36.43% equity in KuaYue Express on June 11, 2025, for a total consideration of up to RMB 6,484 million[77] - The company acquired property and equipment totaling RMB 3,113.7 million, compared to RMB 2,224.2 million in the same period last year[166] - The company acquired an additional 6.62% equity interest in Deppon Logistics for a cash consideration of RMB 841.7 million during the reporting period[177] Governance and Compliance - The company remains committed to maintaining high standards of corporate governance and has complied with all applicable code provisions during the reporting period[122] - The company has established an audit committee to monitor risk management policies and ensure effective internal control systems[125] Other Financial Metrics - Basic earnings per share increased to RMB 0.41 from RMB 0.36, reflecting a growth of 13.9%[138] - The company did not recommend the payment of an interim dividend for the six months ended June 30, 2025[127] - Total comprehensive income for the period was RMB 2,795,088 thousand, up from RMB 2,680,281 thousand in the previous year, reflecting a growth of 4.3%[140]

Group 1 - The Hang Seng Index Company will implement its quarterly review results on September 5, increasing the number of constituent stocks from 85 to 88, with China Telecom, JD Logistics, and Pop Mart being newly included [1] - The inclusion of these stocks is expected to attract passive fund inflows, leading to significant increases in trading volume and price volatility for the newly added stocks [1][2] - Pop Mart will also be included in the Hang Seng China Enterprises Index, while stocks like China Foods and Hengrui Medicine will be added to the Hang Seng Composite Index, increasing its constituent stocks from 502 to 504 [1] Group 2 - The adjustment of the index is likely to influence the liquidity and stock price performance of the related stocks due to the actions of passive funds tracking the indices [2] - Historical data suggests that active funds may position themselves ahead of the announcement, leading to noticeable volatility in the related stocks before the implementation date [2] - The Hong Kong stock market is viewed as a "global value trap," providing good safety margins and investment opportunities due to low valuations, with continued inflows from southbound funds indicating recognition of investment value [2] Group 3 - Goldman Sachs estimates that the market capitalization of the Hang Seng Index, the Hang Seng China Enterprises Index, and the Hang Seng Technology Index will rise to approximately 2.09 trillion, 1.42 trillion, and 480 billion USD, reflecting increases of 1.6%, 1.1%, and 9% respectively [3] - The forecasted price-to-earnings ratios for these indices are expected to increase slightly, with earnings growth predictions adjusted accordingly [3] - Consumer retail, software and services, and automotive sectors are anticipated to see the most passive fund inflows, with specific stocks like Pop Mart and BYD expected to receive significant net buying [3] Group 4 - China Telecom is a leading player in the telecommunications industry, focusing on 5G construction and cloud computing, indicating the importance of traditional industry leaders in the index [4] - JD Logistics represents the new economy logistics sector, highlighting the index's focus on high-growth and core supply chain enterprises [4] - Pop Mart, as a representative of the trendy toy culture, has seen significant increases in market capitalization and liquidity since its listing, becoming an important representative of the new consumption sector [4]

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 致：香港交易及結算所有限公司 公司名稱: 京东物流股份有限公司 呈交日期: 2025年9月4日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 02618 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | 40,000,000,000 | | USD | 0.000025 | USD | | 1,000,000 | | 增加 / 減少 (-) | | | 0 | | | USD | | 0 | | 本月底結存 | | | 40,000,000,000 | USD | | 0.000025 USD | | 1,000,000 | 本月底法定/註冊股本總額： USD 1,000,000 FF301 第 1 頁 共 ...

Core Viewpoint - The Yunnan Financial Regulatory Bureau has approved the dissolution of the marketing service department of Taikang Life Insurance Co., Ltd. in Kunming, Yunnan, indicating a regulatory action affecting the company's operations in the region [1] Group 1 - The Yunnan Financial Regulatory Bureau has received and reviewed the request for the dissolution of Taikang Life Insurance's marketing service department [1] - The approval allows for the immediate cessation of all business activities by the Kunming Xundian marketing service department [1] - Taikang Life Insurance is required to return its operating license to the Yunnan Financial Regulatory Bureau within 15 working days and complete relevant legal procedures [1]

Summary of Key Points from the Conference Call Industry Overview - The logistics industry in China is experiencing a positive shift in average selling price (ASP) trends due to successful anti-involution efforts, with express revenue rising 9% year-over-year (Y/Y) in July [2][10] - The Chinese government has been actively addressing over-competition since July 2025 through the implementation of the Price Law and the use of big data for regulatory enforcement [2][10] - Local initiatives in regions such as Guangdong, Zhejiang, and Beijing are focusing on service quality and parcel pricing, which is enhancing regulation and benefiting the logistics industry [2][10] Company-Specific Insights - **JD Logistics (JDL)**: - Plays a crucial role in supporting JD's food delivery execution, managing a full-time rider workforce with proper contracts and benefits [3][10] - Inclusion in the Hang Seng Index (HSI) is expected to improve liquidity and visibility, boosting investor confidence [3][10] - **SF Express**: - Emerged as the key winner in the logistics sector, gaining the largest market share with a parcel volume growth of 34% Y/Y, significantly outpacing the industry average of 15% Y/Y [12][14] - Express parcel revenue for July increased 15% Y/Y, reaching RMB 18.7 billion, with an ASP of RMB 13.55, reflecting a 14% Y/Y decline [12][14] - **ZTO Express**: - Emphasized rational pricing and anti-involution strategies, focusing on service quality and profitability rather than aggressive price wars [13][10] - **Full Truck Alliance (YMM)**: - Reported strong 2Q25 performance but faces challenges with a reduced FY25 outlook due to regulatory changes [3][10] Market Dynamics - July's parcel volume maintained a robust trend, with a 15% Y/Y increase, reaching 16.4 billion parcels [10][12] - The inter-city parcel volume accounted for 90% of total parcel volume, with a 16% Y/Y increase, while intra-city volume grew 8% Y/Y [10][12] - The ASP decline narrowed to 5% Y/Y in July from 6% in June, indicating easing competitive pressures [10][12] Regulatory Environment - The anti-involution campaign is broadening, with regulators intensifying efforts to rationalize the competitive landscape [9][10] - National bodies like the State Post Bureau and the National Development and Reform Commission have issued pricing guidance to stabilize the industry [11][10] Investment Ratings - J.P. Morgan maintains an Overweight rating on SF, JDL, and ZTO, while keeping a Neutral rating on YMM, reflecting a balanced risk/reward scenario [3][10] Additional Insights - Online retail sales in July showed a strong start for 3Q25, with home appliances sales growing 29% Y/Y, while food sales softened [15][17] - YMM's revenue growth in 2Q25 was 17%, but the company revised its FY25 revenue guidance down by 5% due to challenges in the freight brokerage segment [16][18] This summary encapsulates the key points discussed in the conference call, highlighting the dynamics of the logistics industry in China, company-specific performances, regulatory impacts, and investment outlooks.