Core Insights - The Hong Kong International Watch & Clock Fair, Asia's largest watch event, successfully gathered over 650 exhibitors from 15 countries and regions, featuring renowned brands like Breguet, Bulgari, and Chopard [1] - JD.com has actively participated in the fair for several years, utilizing live streaming and releasing consumption trend reports to engage with the industry and promote healthy development [1][3] Group 1: Event Highlights - JD.com invited the Executive President of the Guangdong Watch Industry Association to conduct an online live broadcast, showcasing watch craftsmanship and design [3] - An experience zone was set up by JD.com at the fair, allowing visitors to closely observe and experience popular international watch models, along with limited-time shopping discounts [3] Group 2: Consumption Trends - JD.com's 2025 Watch Consumption Trend Report identified three core segments: fashionable women's watches, functional watches, and trendy watches [5] - Sales data indicated a trend towards quality, accessorization, and diversification in women's watches, with "New Chinese Style" watch searches increasing by 629% year-on-year [5] - Men's consumers showed a preference for classic mechanical, minimalist designs, and gold watches, while functional watches for children and students gained attention for their protective features [5] Group 3: Business Strategy - JD.com announced its 2025 watch and eyewear category recruitment policy, introducing a "New Merchant Three-Step Method" strategy [7] - New watch category merchants meeting entry requirements can operate with zero initial cost and enjoy up to six months of zero commission [7] - JD.com will provide various resources, including advertising funds, traffic support, and marketing activities, to assist new watch merchants in optimizing operations [7] Group 4: Future Outlook - JD.com plans to leverage its supply chain, data technology, and omnichannel marketing capabilities to collaborate with more watch brands, aiming to enhance consumer access to diverse quality watches [9] - The industry is expected to evolve towards personalization, scenario-based offerings, and quality improvements [9]

Financial Data and Key Metrics Changes - Consolidated revenue increased by 10%, adjusted EBITDA grew by 17%, and adjusted EPS was up by 29% [6][27] - Free cash flow increased due to improved collections and lower cash taxes paid, despite higher commission payments [25] Business Line Data and Key Metrics Changes - Real Estate Management Services (REMS) revenue growth was led by Workplace Management, with nearly 30% growth on a two-year stacked basis [14] - Project Management revenue grew by 22% year-over-year, driven by strong leasing activity and new contracts [15][75] - Capital Markets Services saw debt advisory revenue increase by 27% and investment sales grow by 9% [21] - Software and technology solutions experienced low double-digit growth in software revenue, offset by reduced technology solutions spending [24] Market Data and Key Metrics Changes - U.S. industrial leasing revenue increased by 13%, outperforming the overall U.S. industrial market volume growth of 4% [18] - Global office leasing revenue tracked in line with market volume, with U.S. office leasing revenues growing nearly 3% [19] Company Strategy and Development Direction - The company is focused on organic growth, investing in data technology and AI to enhance operational efficiency and client value [10][27] - There is a commitment to returning capital to shareholders through increased share repurchases while considering M&A opportunities [27][62] - The company aims to maintain high single-digit to low double-digit revenue growth in REMS over the medium term [34] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the market, noting stability in real estate fundamentals and growing tenant demand [29][70] - The evolving policy environment has led to delayed decision-making, particularly in industrial and manufacturing sectors [7][8] - The company anticipates continued organic growth and market share gains, despite potential headwinds from macroeconomic factors [11][29] Other Important Information - The company raised $1 billion in private equity capital in the second quarter, bringing the year-to-date total to $2.9 billion [23] - Liquidity totaled $3.3 billion at the end of the second quarter, with a reported net leverage of 1.2 times [26] Q&A Session Summary Question: Strength in project management and revenue growth expectations - Management noted strong demand for midsized projects and expects continued optimism for the remainder of the year [32][33] Question: Future revenue growth in REMS - Management indicated expectations of high single-digit to low double-digit revenue growth in REMS, with new contract wins contributing positively [34] Question: Growth drivers for JLL moving forward - Key growth drivers include stability in the geopolitical environment and the return of larger transactions in capital markets [35][36] Question: Capital markets pipeline and deal activity - Pipelines are strong compared to last year, with optimism for continued growth in the capital markets business [40][41] Question: Loan loss concerns with Fannie Mae - Management is closely monitoring the portfolio for potential fraud but has not identified specific areas of concern [43] Question: Elevated contract churn in property management - Management is reviewing contracts and expects some turnover as part of a long-term growth strategy [44] Question: Margin expansion expectations - Management expects margin expansion to be stronger in the latter half of the year, though not linear [47][50] Question: Geographic split in capital markets business - Approximately 60% of the business is in the Americas, with 40% in the rest of the world [56] Question: Capital allocation priorities - The company plans to increase share repurchases while maintaining a focus on organic growth and selective M&A [62][63] Question: Client sentiment regarding the macro environment - Clients are adapting to ongoing geopolitical noise and focusing on their business goals, contributing to a stable trading environment [70][71]