Core Viewpoint - JD.com reported a strong Q1 2025 performance with a total revenue growth of 16% and an adjusted operating profit growth of 31%, primarily driven by self-operated electronic products and government subsidies [1][6][16]. Revenue Growth - The self-operated electronic products accounted for nearly 50% of total revenue, with a growth rate of 17%, significantly contributing to profit increase [1][16]. - The overall revenue for the quarter reached RMB 3,011 million, marking a 16% year-on-year increase, with the retail segment growing by 16.3% [5][29]. - Platform service revenue, including 3P commission and advertising, grew by 16% to RMB 233 million, indicating that government subsidies were a key driver for traffic and sales [22][16]. Profitability - The operating profit for the quarter reached RMB 105 billion, with an operating profit margin of 3.5%, reflecting a nearly 40% year-on-year increase [2][40]. - The gross profit margin improved from 16.2% to 16.8%, primarily due to the increase in the margin of the retail business [3][38]. - The company maintained controlled marketing expenses, which grew by only 14% compared to the 16% revenue growth, indicating effective cost management [39][40]. Shareholder Returns - JD.com announced a share buyback program of USD 5 billion from August 2024 to August 2027, with USD 1.5 billion already utilized, leaving USD 3.5 billion available [3][4]. - The expected shareholder return rate is around 10%, which is considered attractive given the current stock price [7][12]. Cash Reserves - The company reported a net cash position of USD 22 billion, providing sufficient financial capacity to support the buyback program [4][5]. Market Dynamics - The revenue and profit growth were significantly influenced by government subsidies, particularly in the electronic products sector, which may not be sustainable in the long term [8][10]. - The competitive landscape remains challenging, with concerns about the sustainability of growth driven by subsidies and the potential impact of new business ventures like food delivery [11][12].
“国补”撑门面，京东又扬眉吐气了？