Financial Data and Key Metrics Changes - In Q1 2025, JD Logistics reported total revenue of RMB 47 billion, representing an 11.5% year-over-year growth, accelerating from the previous quarter [7][23] - Revenue from external customers increased by 10.3% year-over-year to RMB 32.3 billion [7] - Non-IFRS profit was approximately RMB 750 million, up 13.4% year-over-year, with a stable non-IFRS profit margin of 1.6% [7][32] - IFRS profit was around RMB 610 million, marking an 89.5% year-over-year increase, with an IFRS profit margin of 1.3%, up 8.5 percentage points year-over-year [23][24] Business Line Data and Key Metrics Changes - Revenue from ISC customers reached RMB 23.2 billion, up 13.2% year-over-year, with JD Group contributing RMB 14.7 billion, a 14.1% increase [7][24] - Revenue from other customers, primarily express and freight delivery services, increased by 9.8% year-over-year to RMB 23.8 billion [14][27] - The number of external ISC customers grew to 63,061, a 13.1% year-over-year increase, with an average revenue per customer of approximately RMB 135,000 [27] Market Data and Key Metrics Changes - JD Logistics expanded its international business, launching Warsaw Warehouse Number 2 in March 2025, enhancing its global supply logistics network [11][12] - The company has established a comprehensive global supply logistics network, providing efficient ISC logistics services to both Chinese brands and overseas customers [11] Company Strategy and Development Direction - JD Logistics focuses on enhancing customer experience, cost efficiency, and market competitiveness while expanding its omni-channel supply chain service model [6][8] - The company aims to leverage technological innovation and operational model transformation to achieve long-term cost reductions and efficiency improvements [20][34] - JD Logistics is committed to optimizing its service offerings and expanding its market share in premium logistics services [51][52] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving double-digit revenue growth for the year, supported by differentiated and value-added services [50] - The company anticipates fluctuations in gross profit margin due to ongoing investments in premium service capabilities, with a long-term goal of improving margins [52] - Management highlighted the importance of technological empowerment and operational efficiency in driving sustainable growth [20][34] Other Important Information - JD Logistics continues to invest in automation and advanced technologies to enhance operational efficiency and service quality [20][31] - The company has expanded its logistics network to cover all 18 districts in Hong Kong, improving delivery services and operational efficiency [17][18] Q&A Session Summary Question: What measures are being taken to increase efficiency and reduce costs in mini warehouses? - Management noted that rental costs are declining due to improved warehousing efficiency and ongoing investments in automation [36][37][39] Question: What is the outlook for revenue growth from JD Group and the impact of operational costs on gross profit margin? - Management expects double-digit growth for the year, driven by value-added services, while acknowledging that operational costs may affect gross profit margins in the short term [47][50][52] Question: What is the outlook for the upcoming shopping festival and customer growth? - Management is confident in revenue growth and anticipates an increase in average revenue per customer through improved service offerings and collaborations with platforms like Tmall and Taobao [53][56][57]

Financial Data and Key Metrics Changes - In Q1 2025, JD Logistics reported total revenue of RMB 47 billion, reflecting an 11.5% year-over-year growth, which is an acceleration from the previous quarter [7][23] - Revenue from external customers increased by 10.3% year-over-year to RMB 32.3 billion [7] - Non-IFRS profit was approximately RMB 750 million, up 13.4% year-over-year, with a stable non-IFRS profit margin of 1.6% [7][32] - IFRS profit was around RMB 610 million, marking an 89.5% year-over-year increase, with an IFRS profit margin of 1.3%, up 8.5 percentage points year-over-year [23][24] Business Line Data and Key Metrics Changes - Revenue from ISC customers reached RMB 23.2 billion, up 13.2% year-over-year, with JD Group contributing RMB 14.7 billion, a 14.1% increase [7][24] - Revenue from other customers, primarily express and freight delivery services, increased by 9.8% year-over-year to RMB 23.8 billion [14][27] - The number of external ISC customers grew to 63,061, a 13.1% year-over-year increase, with average revenue per customer at approximately RMB 135,000 [27] Market Data and Key Metrics Changes - JD Logistics expanded its international business, launching Warsaw Warehouse Number 2 in March 2025, enhancing its global supply logistics network [12] - The company has established a comprehensive global supply logistics network, providing efficient ISC logistics services to both Chinese brands and overseas local customers [11] Company Strategy and Development Direction - JD Logistics is focused on enhancing customer experience, cost efficiency, and market competitiveness while expanding its omni-channel supply chain service model [6][8] - The company aims to leverage technological innovation and operational model transformation to achieve long-term cost reductions and efficiency improvements [20][34] - JD Logistics is committed to optimizing its service offerings and expanding its market share in premium logistics services [51] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving double-digit growth for the year, supported by differentiated and value-added services [50] - The company is optimistic about its ability to maintain a growing gross profit margin in the medium to long term despite current fluctuations due to investments [52] Other Important Information - JD Logistics has invested in automation and technology to enhance operational efficiency, with a focus on improving delivery timeliness and service quality [20][28] - The company has expanded its logistics network to cover nearly all counties and districts in China, with over 600 self-operated warehouses [19] Q&A Session Summary Question: What measures are being taken to increase efficiency and reduce costs in mini warehouses? - Management highlighted that rental costs are declining due to improved warehousing efficiency and ongoing investments in automation [36][37][39] Question: What is the outlook for revenue growth from JD Group and the impact of operational costs on gross profit margin? - Management expects double-digit growth for the year, driven by value-added services, while acknowledging that gross profit margin may fluctuate due to ongoing investments [49][51] Question: What is the outlook for the upcoming shopping festival and customer growth? - Management is confident in revenue growth and anticipates an increase in average revenue per customer through improved service offerings [54][56]

京东物流(02618.HK)2025年Q1营收470亿元人民币，上年同期421.4亿元。 ...

京东物流公告，截至2025年3月31日止三个月，公司收入为469.67亿元，同比增长11.5%。毛利为33.87 亿元，同比增长4.8%。期间利润为6.11亿元，同比增长89.5%。期间非国际财务报告准则利润为7.51亿 元，同比增长13.4%。期间非国际财务报告准则EBITDA为37.56亿元，同比增长2.9%。 ...

京东物流第一季度营收469.7亿元人民币，同比增长11.5%；非国际财务准则盈利7.515亿元人民币，同 比增长13.4%。 ...

Financial Performance - For the three months ended March 31, 2025, JD Logistics reported revenue of RMB 46,967,125 thousand, an increase of 11.5% compared to RMB 42,137,338 thousand for the same period in 2024[4] - Gross profit for the same period was RMB 3,387,178 thousand, reflecting a growth of 4.8% from RMB 3,231,222 thousand year-over-year[4] - The company achieved a pre-tax profit of RMB 743,140 thousand, which is an 84.4% increase from RMB 403,099 thousand in the previous year[4] - Net profit for the period was RMB 610,613 thousand, up 89.5% from RMB 322,305 thousand in the same quarter of 2024[4] - The non-IFRS profit for the period was RMB 751,463 thousand, representing a 13.4% increase from RMB 662,651 thousand year-over-year[4] - Total revenue for the three months ended March 31, 2025, was RMB 46.97 billion, a 11.8% increase from RMB 42.14 billion in the same period of 2024[13] - Net profit for the three months ended March 31, 2025, was RMB 610.6 million, significantly up from RMB 322.3 million in the same period of 2024[20] - Non-IFRS profit for the three months ended March 31, 2025, was RMB 751.5 million, compared to RMB 662.7 million for the same period in 2024[23] - Non-IFRS EBITDA for the three months ended March 31, 2025, was RMB 3.76 billion, an increase from RMB 3.65 billion in the same period of 2024[24] Revenue Breakdown - Revenue from integrated supply chain customers reached RMB 23,200,757 thousand, accounting for 49.4% of total revenue, compared to 48.7% in the previous year[10] - Revenue from integrated supply chain customers increased by 13.2% from RMB 20.5 billion for the three months ended March 31, 2024, to RMB 23.2 billion for the same period in 2025, driven by increased revenue from JD Group and a rise in the number of external integrated supply chain customers from 55,760 to 63,061[11] - Revenue from other customers rose by 9.8% from RMB 21.6 billion for the three months ended March 31, 2024, to RMB 23.8 billion for the same period in 2025, primarily due to growth in express and logistics services[11] Operating Costs and Expenses - Operating costs increased by 12.0% from RMB 38.9 billion for the three months ended March 31, 2024, to RMB 43.6 billion for the same period in 2025, aligning with revenue growth trends[14] - Gross profit for the three months ended March 31, 2025, was RMB 3.4 billion, with a gross margin of 7.2%, compared to RMB 3.2 billion and a gross margin of 7.7% for the same period in 2024[16] - Research and development expenses remained stable at RMB 892.6 million for the three months ended March 31, 2025, compared to RMB 862.5 million for the same period in 2024[18] - Sales and marketing expenses were stable at RMB 1.4 billion for both the three months ended March 31, 2025, and 2024[17] Cash Flow and Resources - As of March 31, 2025, the total cash resources of the company amounted to RMB 43.7 billion[27] - For the three months ended March 31, 2025, the company's free cash flow outflow was RMB 2.2 billion, compared to RMB 300 million for the same period in 2024[27] - The net cash generated from operating activities was RMB 1.1 billion, offset by capital expenditures of RMB 1.3 billion and lease-related payments of RMB 2 billion[27] Operational Expansion - As of March 31, 2025, JD Logistics operated over 1,600 warehouses and managed more than 32 million square meters of storage space across its network[7] - The company launched its 10th dedicated freighter in January 2025, enhancing its logistics network both domestically and internationally[6] - JD Logistics opened its Warsaw No. 2 warehouse in Poland in Q1 2025, expanding its operational footprint in Europe[6] Human Resources - The company reported a total human resources expenditure of RMB 91.8 billion for the twelve months ending March 31, 2025[7]

Core Insights - JD Logistics and Huading Cold Chain Technology are collaborating to enhance the digitalization and intelligence of the cold chain logistics industry through resource integration and innovative models [1][2][4] Group 1: Collaboration Focus - The two companies discussed the integration of logistics automation facilities and computing networks, with JD Logistics showcasing its full-temperature transportation solutions for cold chain e-commerce warehouses [1] - Huading Cold Chain has invested 300 million yuan in an information system that efficiently matches order demands with warehousing and transportation [1] - Future cooperation will focus on automated warehouses and intelligent temperature control equipment, optimizing cold chain logistics route planning through computing networks [1] Group 2: Supply Chain Finance - Supply chain finance emerged as a key area of collaboration, with JD Logistics leveraging its digital risk control capabilities to introduce innovative financial products in the cold chain sector [1] - Huading Cold Chain, as a core service provider in the restaurant supply chain, has experience serving over 200,000 terminal stores [1] - The companies plan to explore deep integration of "logistics + finance" using blockchain technology to provide low-cost, efficient financing services for small and medium-sized restaurant enterprises [1] Group 3: Strategic Vision - JD Logistics aims to empower the cold chain industry through technological innovation, while Huading Cold Chain plans to leverage its network and data advantages for comprehensive collaboration [2] - The partnership is seen as a significant milestone following mutual visits in 2024, with both companies positioned to accelerate the automation and digitalization of cold chain logistics [4] - The collaboration is expected to provide cost-reduction and efficiency-enhancing solutions while maintaining risk control for industries such as chain restaurants [4]

Investment Rating - The report maintains a "Recommended" investment rating for JD Logistics (02618.HK) [1][6] Core Views - JD Logistics achieved an adjusted net profit of 7.92 billion RMB in 2024, representing a year-on-year increase of 187%, driven by integrated supply chain growth and cost reduction efforts [1][6] - The company is expected to continue its growth trajectory with a projected revenue of 182.84 billion RMB in 2024, reflecting a 9.7% year-on-year increase [2][6] - The report highlights the significant contribution of integrated supply chain clients, with revenue from these clients reaching 87.4 billion RMB, a 7.2% increase from the previous year [6][7] Financial Summary - **Revenue Forecast**: - 2024A: 182.84 billion RMB - 2025E: 200.62 billion RMB - 2026E: 216.90 billion RMB - 2027E: 232.18 billion RMB - Year-on-year growth rates: 9.7% for 2024 and 2025, 8.1% for 2026, and 7.0% for 2027 [2][8] - **Net Profit Forecast**: - 2024A: 6.20 billion RMB - 2025E: 7.08 billion RMB - 2026E: 8.20 billion RMB - 2027E: 9.46 billion RMB - Year-on-year growth rates: 905.8% for 2024, 14.2% for 2025, 15.9% for 2026, and 15.4% for 2027 [2][8] - **Earnings Per Share (EPS)**: - 2024A: 0.94 RMB - 2025E: 1.06 RMB - 2026E: 1.23 RMB - 2027E: 1.42 RMB [2][8] - **Valuation Ratios**: - Price-to-Earnings (P/E) ratio: 12.1 for 2024, decreasing to 7.9 by 2027 - Price-to-Book (P/B) ratio: 1.4 for 2024, decreasing to 0.9 by 2027 [2][8] Strategic Insights - JD Logistics is focusing on enhancing its global supply chain capabilities and improving service quality to drive profitability [6][7] - The company plans to integrate its supply chain systems with major e-commerce platforms, which is expected to boost logistics volume across channels [6][7] - The implementation of smart technologies has led to a significant reduction in operational costs, with gross profit margin increasing to 10.2% in 2024 [6][7]

Core Viewpoint - The cold chain logistics industry in China is crucial for ensuring food safety, promoting the development of the pharmaceutical industry, and facilitating the circulation of fresh agricultural products. The lack of cold chain logistics facilities leads to high loss rates in fresh produce, significantly increasing market costs [1][2][4]. Group 1: Current State of Fresh Produce Logistics - Fresh produce in China has an average loss rate exceeding 10%, which is 2-3 times higher than the stable 5% loss rate in Europe and the U.S. [1] - The traditional supply chain involves multiple stages, including farmers, wholesalers, and markets, leading to inefficiencies and high waste [1]. Group 2: Importance of Cold Chain Logistics - Cold chain logistics is essential for maintaining the quality of perishable goods during transportation, which directly impacts pricing and product stability [2][4]. - The cold chain logistics industry is a key component of the national economy, enhancing local infrastructure and logistics efficiency while supporting agricultural modernization [4]. Group 3: Industry Structure and Key Players - The cold chain logistics industry consists of a complex structure, including upstream manufacturing of cold storage equipment, midstream transportation and warehousing, and downstream applications across various sectors [2]. - Major players in the cold chain logistics sector include SF Cold Chain Logistics, Chengdu Yunlizhi Technology, and JD Century Trade, among others, with varying registered capital and operational focuses [4][6][7]. Group 4: Market Trends and Future Outlook - The cold chain logistics market in China is expected to exceed 900 billion yuan by 2028, driven by rising consumer demand, urbanization, and increased food safety awareness [16][17]. - The industry has evolved through three stages since 1998, with the current phase characterized by enhanced infrastructure, technology adoption, and a growing awareness of cold chain logistics [12][13]. Group 5: Environmental Initiatives - SF Cold Chain Logistics has implemented sustainable practices, including the use of reusable packaging, which has led to a reduction of 1,182 tons of CO2 emissions [10].

Core Insights - JD Logistics has successfully launched its Kashgar warehouse, marking the transition from trial operation to formal operation, enhancing logistics efficiency in the region [1] - The warehouse has significantly increased order volumes, with small item orders up nearly 30% and large item orders up over 60% within the first month of operation [1][3] - The "Xinjiang products going out" strategy is being strengthened, facilitating the export of local agricultural products through improved logistics services [1][4] Logistics Efficiency - The Kashgar warehouse has implemented "211 limited-time delivery" in several areas, resulting in a nearly threefold increase in daily order volume in Shufu County [3] - The warehouse is equipped with fully automated sorting equipment, improving processing efficiency by 30% and achieving a sorting accuracy rate of 99.8% [3] Agricultural Collaboration - The partnership between JD Logistics and Xinjiang Jiangxiang Fruit Industry Co., Ltd. has reduced delivery time for products from 8 days to 56 hours and decreased logistics costs by 12% [4] - The collaboration is expected to generate over 50 million yuan in sales by 2025, benefiting local farmers and cooperatives [4] Employment Opportunities - The operation of the Kashgar warehouse is projected to create numerous job opportunities, with an expected 40%-60% increase in personnel by the end of the year [6] - Various job positions will be offered, including warehouse operators, sorters, couriers, and delivery station managers, aimed at recruiting local talent [6]