Tai Mei Ti A P P·2025-08-15 10:02Core Viewpoint - The impact of the new food delivery business on JD's performance is significant, leading to increased marketing expenses and a reduction in free cash flow, indicating a challenging competitive environment in the market [1][2]. Financial Performance - JD's marketing expenses in Q2 increased by 127.6% year-on-year, with a net increase of 15.1 billion yuan, raising the marketing expense ratio from 4.1% to 7.6% [1][2]. - The overall increase in "three expenses" (marketing, R&D, and administrative) was 95% year-on-year, resulting in an operating loss of 860 million yuan in Q2, compared to an operating profit of 10.5 billion yuan in the same period last year [2][5]. - Free cash flow in Q2 dropped by 56% year-on-year to 22 billion yuan, indicating a significant cash outflow due to increased spending on marketing and new business initiatives [6]. Market Strategy - JD's entry into the food delivery market aims to leverage high-frequency daily transactions to boost its core e-commerce business, with management expressing confidence in achieving expected synergies [3][5]. - The company plans to maintain a stable subsidy strategy in the food delivery market, avoiding excessive competition and focusing on long-term strategic goals [6][7]. Industry Context - The competitive landscape is intensifying, with Amazon expanding its same-day delivery service, putting pressure on JD and other retailers [1][7]. - The overall retail market growth is slowing, with the National Bureau of Statistics reporting a 6% year-on-year increase in wholesale and retail revenue in Q2, indicating a challenging environment for growth [8].