The following document has been prepared by JD.com, Inc. ("JD" or the "Company") solely for informational purposes and should not be construed to be, directly or indirectly, in whole or in part, an offer to buy or sell and/or an invitation and/or a recommendation and/or a solicitation of an offer to buy or sell any security or instrument or to participate in any investment or trading strategy, nor shall any part of it form the basis of, or be relied on in connection with, any contract or investment decision ...

Financial Data and Key Metrics Changes - Total revenues increased by 16% year on year, with non-GAAP net profit rising by 43% to RMB 12.8 billion, and net margin expanding by 82 basis points to 4.2% [5][21][30] - Gross margin improved by 60 basis points year on year to 15.9%, marking twelve consecutive quarters of year-on-year improvement [21][29] Business Line Data and Key Metrics Changes - Electronics and home appliances revenue grew by 17% year on year, while general merchandise revenue increased by 15% [22][23] - Supermarket category revenue growth reached double digits for the fifth consecutive quarter, with strong performance during the Chinese Lunar New Year [9][10] - Fashion category also saw accelerated revenue growth, driven by enhanced brand assortment and user recognition [10][11] Market Data and Key Metrics Changes - JD's quarterly active customer number increased by double digits year on year, with notable growth in user shopping frequency [11][12] - Growth in order volume and user base in lower-tier markets outpaced that of higher-tier markets [13] Company Strategy and Development Direction - The company aims to enhance supply chain capabilities and solidify market leadership in electronics and home appliances while tapping into the general merchandise market [5][7] - JD is expanding into on-demand retail, particularly food delivery, which is integrated into its existing retail ecosystem [14][15] - The company launched a RMB 200 billion export to domestic sales program to enrich product supplies on its platform [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in long-term growth driven by structural opportunities in the industry, supported by government consumption stimulus policies [8][19] - The company is focused on sustainable long-term growth and maintaining flexibility to adapt to industry dynamics [19][31] Other Important Information - JD completed annual cash dividend payouts of USD 1.44 billion and repurchased approximately 80.7 million Class A ordinary shares, representing 2.8% of shares outstanding [21][79] - The company is actively leveraging AI and automation technologies across its ecosystem to enhance operational efficiency and user experience [18][60] Q&A Session Summary Question: What are the medium-term expectations for the food delivery initiative? - Management highlighted that food delivery is a natural extension of JD's core retail business, with significant demand and synergies expected to drive growth [38][40] Question: How is JD Retail sustaining momentum in apparel and general merchandise? - Management noted broad-based growth in general merchandise, with efforts focused on enhancing operational capabilities and user experience [45][47] Question: Can management share key metrics for the food delivery business? - Management reported strong user retention and cross-selling opportunities emerging, with over 1 million merchants onboarded [51][55] Question: How is AI being applied across JD's business segments? - AI is being utilized to enhance advertising effectiveness, improve operational efficiency, and optimize supply chain management [60][63]

Financial Data and Key Metrics Changes - Total revenues increased by 16% year on year, with non-GAAP net profit rising by 43% to RMB 12.8 billion, and net margin expanding by 82 basis points to 4.2% [5][21][22] - Gross margin improved by 60 basis points year on year to 15.9%, marking twelve consecutive quarters of year-on-year improvement [22][30] Business Line Data and Key Metrics Changes - Electronics and home appliances revenue grew by 17% year on year, while general merchandise revenue increased by 15% [23][24] - Supermarket category revenue growth reached double digits for the fifth consecutive quarter, with strong performance during the Chinese Lunar New Year [8][24] - Fashion category also saw accelerated revenue growth, driven by enhanced brand assortment and user recognition [10][49] Market Data and Key Metrics Changes - JD.com outpaced total retail sales and online retail sales of physical goods in the same quarter, indicating strong market leadership [5] - Growth in lower-tier markets continued to outpace that of higher-tier markets, reflecting a shift in consumer behavior [13][14] Company Strategy and Development Direction - The company is focused on enhancing supply chain capabilities and user experience, with a strategic emphasis on on-demand retail and food delivery as key growth areas [15][19] - JD.com launched a RMB 200 billion export to domestic sales program to expand domestic market presence and enrich product offerings [17] - The company aims to leverage AI and automation technologies to improve operational efficiency and user experience across its ecosystem [19][63] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential driven by government consumption stimulus policies and technological innovations [7][20] - The company is optimistic about sustaining healthy growth in user engagement and transaction frequency, particularly in the core retail and new business segments [11][49] Other Important Information - JD.com completed annual cash dividend payouts of USD 1.44 billion or USD 1 per ADS, and repurchased 80.7 million Class A ordinary shares, representing 2.8% of shares outstanding [22][78] - The company is committed to long-term shareholder returns while focusing on sustainable growth [78][79] Q&A Session Summary Question: What are the medium-term expectations for the food delivery initiative and the industry landscape? - Management highlighted that food delivery is a natural extension of JD's core retail business, with significant demand and potential for growth in the market [40][41] Question: How is JD Retail sustaining momentum in apparel and general merchandise? - Management noted that operational enhancements and user experience improvements have driven double-digit growth in general merchandise, with plans to expand brand selection and merchant base [46][49]

Financial Performance - Net revenues for Q1 2025 were RMB301.1 billion (US$141.5 billion), a 15.8% increase from Q1 2024[5] - Net income attributable to ordinary shareholders rose to RMB10.9 billion (US$1.5 billion), reflecting a 52.7% increase year-on-year[28] - Non-GAAP income from operations increased to RMB11.7 billion (US$1.6 billion), a 31.4% rise compared to Q1 2024[26] - Total consolidated net revenues for Q1 2025 reached RMB301.1 billion (US$41.5 billion), a 15.8% increase from RMB260.0 billion in Q1 2024[37] - JD Retail segment revenues increased by 16.3% year-over-year to RMB263.8 billion (US$36.4 billion) in Q1 2025[35] - The company reported a total consolidated income before tax of RMB13.3 billion (US$1.8 billion) for Q1 2025, compared to RMB9.1 billion in Q1 2024[35] - JD.com reported total net revenues of RMB 301,082 million for the three months ended March 31, 2025, representing a 15.8% increase from RMB 260,049 million in the same period of 2024[51] - Net income attributable to the Company's ordinary shareholders for the same period was RMB 10,890 million, up 53.5% from RMB 7,130 million year-over-year[51] - Non-GAAP net income attributable to ordinary shareholders increased from RMB 8,899 million in Q1 2024 to RMB 12,758 million in Q1 2025, reflecting a growth of approximately 43.5%[61] Cash Flow and Liquidity - As of March 31, 2025, the company's cash and cash equivalents totaled RMB203.4 billion (US$28.0 billion), a decrease from RMB241.4 billion as of December 31, 2024[30] - For Q1 2025, the company reported a free cash flow of RMB(21,603) million (US$2,977), compared to RMB(15,476) million in Q1 2024, indicating a year-over-year decline[30] - Net cash provided by investing activities for Q1 2025 was RMB16.2 billion (US$2.2 billion), primarily from maturity of time deposits and equity investments[31] - Net cash used in financing activities for Q1 2025 was RMB7.3 billion (US$1.0 billion), mainly for repayment of borrowings and share repurchases[32] - Free cash flow for the twelve months ended March 31, 2025, was RMB37.6 billion (US$5.2 billion), down from RMB50.6 billion in the previous year[33] - Free cash flow for the three months ended March 31, 2025, was negative RMB 21,603 million, compared to negative RMB 15,476 million in the same period of 2024[55] Operational Metrics - JD Retail maintained an operating margin of 4.9% in Q1 2025, up from 4.1% in Q1 2024[26] - Non-GAAP EBITDA increased to RMB13.7 billion (US$1.9 billion), a 27.0% increase from Q1 2024[27] - The operating margin for JD Retail improved to 4.9% in Q1 2025 from 4.1% in Q1 2024[35] - Non-GAAP operating margin improved from 3.4% in Q1 2024 to 3.9% in Q1 2025[59] - Non-GAAP EBITDA margin improved from 4.1% in Q1 2024 to 4.6% in Q1 2025[59] Business Developments - The company launched a food delivery business in February 2025, aiming to meet diverse user demands and enhance its ecosystem[12] - JD Health debuted several innovative medicines and achieved over 80% of medical consultations aided by AI services in Q1 2025[14] - JD Logistics expanded its international operations, launching a new air cargo route and a second warehouse in Warsaw, Poland[15] Personnel and Assets - The total personnel under the JD Ecosystem reached approximately 700,000 as of March 31, 2025[25] - JD.com’s total current assets were RMB 357,230 million as of March 31, 2025, compared to RMB 386,698 million as of December 31, 2024, indicating a decline of 7.6%[48] - The company’s total liabilities decreased to RMB 369,191 million as of March 31, 2025, down from RMB 384,937 million as of December 31, 2024, a reduction of 4.1%[49] - Total shareholders' equity as of March 31, 2025, was RMB 308,408 million, slightly down from RMB 312,813 million as of December 31, 2024[49] Inventory and Receivables - Inventory turnover days increased from 29.0 days in Q1 2024 to 32.8 days projected for Q1 2025[57] - Accounts payable turnover days increased from 51.8 days in Q1 2024 to 57.6 days projected for Q1 2025[57] - Accounts receivable turnover days are expected to rise from 5.4 days in Q1 2024 to 6.4 days in Q1 2025[57]

Core Insights - JD.com reported strong financial results for Q1 2025, with net revenues of RMB 301.1 billion (US$ 41.5 billion), representing a year-on-year increase of 15.8% [7][18] - The company experienced double-digit growth in both product and service revenues, driven by improved consumer sentiment and enhanced supply chain capabilities [3][7] - JD.com is committed to shareholder returns, completing an annual dividend payout and continuing its share repurchase program [3][4] Financial Performance - Net income attributable to ordinary shareholders increased by 52.7% to RMB 10.9 billion (US$ 1.5 billion) compared to Q1 2024 [27] - Non-GAAP net income attributable to ordinary shareholders rose by 43.4% to RMB 12.8 billion (US$ 1.8 billion) [27] - Diluted net income per ADS increased by 58.7% to RMB 7.19 (US$ 0.99) [28] Revenue Breakdown - JD Retail generated net revenues of RMB 263.8 billion (US$ 36.4 billion), a 16.3% increase year-on-year [34] - JD Logistics reported net revenues of RMB 46.9 billion (US$ 6.5 billion), an 11.5% increase [34] - New Businesses segment revenues grew by 18.1% to RMB 5.8 billion (US$ 793 million) [34] Cost and Expenses - Cost of revenues increased to RMB 253.2 billion (US$ 34.9 billion), up 15.0% from Q1 2024 [19] - Fulfillment expenses rose by 17.4% to RMB 19.7 billion (US$ 2.7 billion) [20] - Marketing expenses increased by 13.9% to RMB 10.5 billion (US$ 1.5 billion) [21] Strategic Initiatives - JD.com launched a food delivery business in February 2025, expanding its service offerings [11] - The company initiated an export-to-domestic sales program, aiming to procure RMB 200 billion worth of export-oriented goods for domestic sales [10] - JD Health strengthened its position in the online marketplace for new medicines, launching innovative products from major pharmaceutical companies [12][13] Share Repurchase Program - As part of its share repurchase program, JD.com repurchased approximately 80.7 million Class A ordinary shares for about US$ 1.5 billion from January 1, 2025, leaving US$ 3.5 billion remaining under the program [4][5] Cash Flow and Working Capital - As of March 31, 2025, JD.com had cash and cash equivalents totaling RMB 203.4 billion (US$ 28.0 billion) [29] - Free cash flow for Q1 2025 was RMB (21.6 billion) (US$ 2.98 billion), reflecting increased cash used in operating activities [29][31]

Core Insights - JD.com, Inc is not just an e-commerce company but also a significant physical retailer with operations in malls, convenience stores, wholesale marketplaces, and pharmacies [1] Group 1: Company Overview - JD.com operates in multiple retail formats beyond e-commerce, indicating a diversified business model [1] - The company is positioned as a major player in the Chinese retail market, leveraging both online and offline channels [1] Group 2: Research and Analysis - The analysis emphasizes a data-driven investment style, focusing on macroeconomic factors and market trends to assess long-term viability [1] - The research includes deep dives into businesses and economic trends in Asia, particularly in India and China, highlighting the region's significance [1]

Core Viewpoint - JD.com is expected to report first-quarter 2025 results on May 13, with revenue estimates of $40.2 billion, reflecting an 11.63% year-over-year growth, and earnings per share estimated at $1.05, indicating a 34.62% increase from the previous year [1] Financial Performance - The Zacks Consensus Estimate for JD's earnings per share for the current quarter is $1.05, consistent with previous estimates [2] - JD's earnings surprise history shows a 13.33% surprise in the last quarter, with an average surprise of 25.23% over the last four quarters [4] Growth Factors - JD.com experienced a strong fourth quarter in 2024, with revenues growing 13% year-over-year and non-GAAP net profit increasing by 34% [6] - The top-line growth in Q4 was driven by a 16% increase in electronics and home appliances revenues and an 11% rise in general merchandise revenues, supported by government stimulus and improved supply chain capabilities [7] Challenges - Sales of home appliances in early 2025 were negatively impacted due to demand being pulled forward into late 2024 [7] - The Jingxi business segment faced a significant revenue decline of 31% year-over-year, with a widening non-GAAP operating loss due to adjustments and a focus on lower-tier markets [8] - JD's aggressive investments in AI and robotics, while aimed at improving operational efficiency, are expected to increase short-term operating expenses [9] Market Position - JD.com shares have declined 19.1% over the past three months, underperforming the Internet - Commerce industry and major indices [11] - The current forward 12-month P/E ratio for JD is 7.28X, significantly lower than the industry average of 21.31X, indicating a potentially undervalued position relative to expected earnings growth [14] Investment Considerations - Despite strong year-over-year growth expectations, JD.com faces near-term challenges from Jingxi adjustments, pulled-forward demand, and rising expenses from AI and logistics investments [18] - The stock remains unattractive for investors until clearer recovery indicators emerge [19]

Company Performance - JD.com, Inc. ended the latest trading session at $32.85, reflecting a +0.71% adjustment from the previous day's close, outperforming the S&P 500's daily gain of 0.63% [1] - The company's shares experienced a loss of 20.61% over the previous month, underperforming the Retail-Wholesale sector's loss of 0.09% and the S&P 500's loss of 0.7% [1] Upcoming Earnings - JD.com is set to disclose its earnings on May 13, 2025, with projected EPS of $1.05, indicating a 34.62% increase compared to the same quarter of the previous year [2] - The consensus estimate for revenue is $40.2 billion, representing an 11.63% increase from the prior-year quarter [2] Fiscal Year Estimates - For the entire fiscal year, earnings are predicted at $4.59 per share and revenue at $172.07 billion, reflecting changes of +7.75% and +7.04% respectively from the previous year [3] - Recent revisions to analyst estimates suggest a positive outlook for the company's business [3] Valuation Metrics - JD.com is currently trading at a Forward P/E ratio of 7.11, which is a discount compared to the industry's average Forward P/E of 23.56 [6] - The company's PEG ratio stands at 0.22, significantly lower than the Internet - Commerce industry's average PEG ratio of 1.41 [6] Industry Context - The Internet - Commerce industry, part of the Retail-Wholesale sector, holds a Zacks Industry Rank of 90, placing it within the top 37% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Core Viewpoint - JD.com, Inc. plans to release its unaudited first quarter 2025 financial results on May 13, 2025, before the U.S. market opens [1] Group 1: Financial Results Announcement - The financial results will be discussed in a conference call scheduled for 8:00 am Eastern Time on May 13, 2025 [2] - Participants are required to register in advance for the conference call and should dial in 15 minutes prior to the call [3] Group 2: Conference Call Details - A telephone replay of the conference call will be available for one week until May 20, 2025, with specific dial-in details provided for different regions [4] - A live and archived webcast of the conference call will also be accessible on JD.com's investor relations website [4] Group 3: Company Overview - JD.com is recognized as a leading supply chain-based technology and service provider, focusing on enabling consumers to purchase products anytime and anywhere [5] - The company has opened its technology and infrastructure to partners and brands as part of its Retail as a Service offering, aimed at enhancing productivity and innovation across various industries [5]

JD.com (NASDAQ: JD ) trades at an attractive valuation, backed by a growing China development story and strong financial performance. All until the tariff threat hit the markets. Let us re-evaluate JD’s case in the aftermath of recentI am a stock analyst with 20+ years of experience in quantitative research, financial modeling, and risk management. I specialize in equity valuation, market trends, and portfolio optimization to identify high-growth investment opportunities. As a former Vice President at Barcl ...