Zhong Guo Jing Ying Bao·2025-05-14 21:20Core Viewpoint - JD Group reported strong Q1 2025 earnings, with revenue of 301.1 billion RMB, a 15.8% year-on-year increase, marking the highest growth rate in nearly three years [1] Financial Performance - Q1 2025 revenue reached 301.1 billion RMB, exceeding market expectations [1] - Operating profit was 10.5 billion RMB, up 36.4% year-on-year [1] - Net profit attributable to ordinary shareholders was 10.9 billion RMB, a 53.5% increase year-on-year [1] - Non-GAAP net profit attributable to ordinary shareholders was 12.8 billion RMB, a 43.8% increase year-on-year [1] - JD Retail revenue was 263.8 billion RMB, a 16.3% increase year-on-year [6] - JD Logistics revenue was 46.9 billion RMB, an 11.5% increase year-on-year [6] - New business revenue was 5.8 billion RMB, an 18.1% increase year-on-year [6] Business Strategy - JD is focusing on instant retail and food delivery services, with founder Liu Qiangdong actively promoting JD's food delivery business [1][3] - Liu Qiangdong's direct involvement in business innovation is credited for the accelerated growth [1] - JD aims to integrate food delivery into its retail ecosystem, enhancing overall operational capabilities [4] Market Dynamics - The food delivery market is competitive, with JD entering as a new player amidst existing giants like Meituan and Ele.me [2][3] - Regulatory bodies have emphasized the need to protect consumer and worker rights in the food delivery sector, potentially impacting subsidy wars [2] - JD's food delivery service has achieved nearly 20 million daily orders, indicating rapid growth [3] Operational Insights - JD's food delivery service has over 1 million merchant partners and is experiencing a shortage of delivery personnel, prompting accelerated recruitment efforts [5] - The company is focused on long-term sustainable growth rather than short-term gains in the food delivery sector [5] - Liu Qiangdong's leadership has significantly boosted employee morale and cohesion within the company [5][6] Profitability Analysis - JD Retail contributed significantly to operating profit growth, with a 37.8% increase in operating profit [7] - JD Logistics experienced a decline in operating profit, attributed to increased subsidies for food delivery services [7] - New business operations reported a significant increase in losses, reflecting the costs associated with entering the food delivery market [7]