Hua Er Jie Jian Wen·2025-11-14 12:20Core Viewpoint - JD.com is undergoing a significant strategic transformation, balancing short-term growth with long-term capability building, as evidenced by its recent financial performance which shows revenue growth but a substantial decline in net profit [2][17]. Financial Performance - In Q3 2025, JD.com reported revenue of 299.1 billion yuan, a year-on-year increase of 14.9%, marking the fourth consecutive quarter of double-digit growth [4][6]. - However, net profit fell by 54.7% to 5.3 billion yuan, the largest decline in recent years, primarily due to strategic investments in new businesses, particularly in the food delivery sector [5][17]. - The operating loss for new businesses, including food delivery, reached 15.7 billion yuan, significantly up from 600 million yuan in the same period last year [5]. Business Segments - JD Retail remains a key pillar, with Q3 revenue of 250.6 billion yuan, up 11.4%, and operating profit of 14.8 billion yuan, a 27.6% increase, improving the operating margin to 5.9% from 5.2% [6]. - JD Logistics also performed well, with revenue of 55.1 billion yuan, a 24.1% year-on-year increase, maintaining both revenue and profit growth [6]. - New business revenue surged by 213.7% to 15.6 billion yuan, although the company implemented a commission-free policy for merchants, resulting in lower commission income [6][9]. Cost Structure - Marketing expenses rose by 110.5% to 21.1 billion yuan, with the marketing expense ratio increasing from 3.8% to 7.0%, driven by new business promotional activities [8]. - Fulfillment expenses increased by 35.2% to 22 billion yuan, with fulfillment costs as a percentage of revenue rising from 6.3% to 7.4% [8]. - R&D expenses grew by 28.4% to 5.6 billion yuan, indicating continued investment in technology [8]. User Growth and Engagement - As of October 2025, JD.com surpassed 700 million annual active users, with user shopping frequency increasing by over 40% [8]. - The food delivery business is enhancing user conversion rates, with nearly 50% of early food delivery users transitioning to other services [9]. Strategic Initiatives - JD.com is focused on building a "super supply chain" that integrates all business segments, aiming to create a long-term competitive advantage [11][12]. - The company has invested heavily in technology, with supply chain infrastructure assets totaling 174.3 billion yuan as of Q3 2025 [14]. - The food delivery service "Seven Fresh Kitchen" is expanding rapidly, with search volume and order volume increasing significantly during the Double 11 shopping festival [15]. Global Expansion - JD.com is leveraging its supply chain and international logistics network to expand globally, with operations in 36 countries and pilot programs in key European markets [16]. Long-term Vision - JD.com is committed to a long-term strategy, with CEO Liu Qiangdong emphasizing the need for sustained efforts over a decade or more to build an unreplicable competitive moat [17].