Core Viewpoint - Liu Qiangdong is accelerating JD's international expansion through potential acquisitions, including Ceconomy and Hong Kong's Jia Bao supermarket, to tap into larger market opportunities as domestic e-commerce growth plateaus [1][16]. Group 1: Ceconomy Acquisition - Ceconomy, a leading European electronics retailer, is in talks with JD for a potential acquisition, with Liu proposing a price of €4.6 per share, representing a 22.7% premium over its recent closing price [1][3]. - Ceconomy has a market capitalization of €2 billion (approximately ¥170 billion) and operates over 1,000 stores across Europe, including brands like MediaMarkt and Saturn [3][12]. - The company reported a 4% year-on-year increase in sales revenue for the first half of 2024, totaling €12.8 billion, with an adjusted EBIT margin of 2.3% [6][8]. Group 2: Hong Kong Jia Bao Acquisition - JD is also set to acquire Hong Kong's Jia Bao supermarket, which has 90 stores and specializes in frozen poultry, seafood, and groceries [19][21]. - This acquisition is expected to leverage JD's supply chain advantages to enhance local operations and meet consumer demands more effectively [20][21]. - JD has previously invested significantly in the Hong Kong market, indicating a strategic focus on this region [23]. Group 3: International Expansion Strategy - Liu Qiangdong has shifted his perspective on internationalization, emphasizing its importance for JD's future and planning to build local teams in overseas markets [29][36]. - JD's international strategy focuses on leveraging its supply chain capabilities, with over 2,000 employees abroad and plans to introduce 1,000 Chinese brands to international markets [37][38]. - The company has established a logistics infrastructure in Europe, with over 100 warehouses and a management area exceeding 1 million square meters, aiming for operational readiness by the end of 2025 [37].

Core Insights - The article discusses the challenges and solutions faced by Chinese e-commerce companies in the context of global competition and the rise of live streaming sales, emphasizing the need for robust cloud infrastructure to support these demands [1][6]. Group 1: E-commerce Globalization and Technical Challenges - The e-commerce industry is experiencing a surge in user interaction during live streaming, making low latency and high elasticity critical for revenue generation. A delay increase from 1 second to 3 seconds can lead to a 32% rise in bounce rates, while a 100-millisecond reduction in resource loading time can enhance conversion rates by 8.4% [2][4]. - Major sales events like "Double Eleven" and "6·18" create unpredictable spikes in user traffic, leading to resource over-provisioning and potential cost wastage. Therefore, reducing network latency and enhancing elastic scaling capabilities are urgent priorities [2][4]. Group 2: AI Integration and Security Risks - The integration of AI in e-commerce is improving efficiency but also introduces new security challenges, such as potential data leaks and denial-of-service attacks. Protecting AI models is essential due to their vulnerability [4][6]. - The trend towards high-definition and interactive live streaming is driving the rapid rise of Video Processing Units (VPU), which offer significant advantages in video transcoding efficiency, environmental sustainability, and accessibility for smaller e-commerce players [4][6]. Group 3: Akamai's Solutions and Product Offerings - Akamai is addressing the complex challenges in the e-commerce sector by leveraging its global network infrastructure to provide targeted solutions, including a public cloud built on the principles of simplicity, network-first approach, and open-source [6][8]. - Akamai has expanded its global core nodes from 11 to 42 within three years, enhancing its ability to tackle low latency issues through a robust Content Delivery Network (CDN) [8]. - The company has launched three key product lines: a cloud-native Kubernetes (K8S) product line to simplify deployment, a virtual machine product line including the environmentally friendly VPU, and the TrafficPeak log analysis platform to manage high traffic during peak sales events [9][10]. Group 4: Future of E-commerce - The future of e-commerce will hinge on user experience, which is determined by a combination of latency, security, and cost factors. The ability to simplify complex technologies into user-friendly services will be crucial for e-commerce companies [10].

Core Insights - The merger of Russian e-commerce giant Wildberries with Russ has accelerated the internationalization of the new company RWB, with plans to enter the African market following successful expansions into Georgia, Tajikistan, and the UAE [1][3] - RWB's primary focus is to consolidate its existing market position while actively exploring opportunities in developing countries, with Africa identified as a key target [1][3] Group 1: International Expansion - Wildberries has expanded its business to nine countries, including traditional markets like Russia, Armenia, and Belarus, as well as new markets such as China and the UAE [3] - The company adopts a cautious strategy in emerging markets, focusing initially on import operations and recruiting sellers from China and UAE [3] - The entry into the African market is expected to alter the e-commerce landscape, especially with competitors like Alibaba already establishing a presence [3] Group 2: Financial Performance - Wildberries reported a revenue of 4.1 trillion rubles for 2024, a 60% increase from 2.5 trillion rubles in 2023, surpassing X5 Group to become Russia's largest retailer by revenue [6] - The net profit surged 3.5 times year-on-year to reach 1.04 trillion rubles, while seller income increased by 44% to 2.9 trillion rubles [6] Group 3: Strategic Investments - The company invested over 150 billion rubles (approximately 11.7 billion RMB) in 2024, focusing on logistics, IT infrastructure, and advertising resources [6][7] - RWB plans to double its investment by 2025 to further enhance its competitive edge [7] Group 4: Technological Innovations - Wildberries' growth is driven by a multi-faceted approach that includes geographic expansion, service diversification, and technological innovation [10] - The company has introduced AI-driven personalized features in its mobile app to enhance user experience through tailored product recommendations [10] - Financial technology services have become a new pillar of the business ecosystem, including online credit, consumer insurance, and BNPL services [12] Group 5: Market Position - Wildberries enjoys high brand recognition, with 93.4% of Russian consumers aware of the platform and an 84.5% usage rate, maintaining its leading position in the market [14] - The company is poised to leverage its annual transaction scale of 4 trillion rubles and its investment in infrastructure to compete effectively in the African market [14]

Financial Data and Key Metrics Changes - In 2024, the company handled 24.6 billion parcels, a year-on-year increase of 31% [7] - Revenue reached $10.3 billion, marking a year-on-year increase of 16% [7] - Adjusted EBIT was $301 million, a significant turnaround from a loss of $335 million in the previous year [7] - Net profit was $114 million, representing the first full year of profitability in the company's history [7][28] - Total revenue increased by 15.9% year-on-year from $8.8 billion in 2023 to $10.3 billion in 2024 [19] - Adjusted net profit reached $200 million in 2024, a turnaround from an adjusted net loss of $432 million in 2023 [28] Business Line Data and Key Metrics Changes - In China, the company handled 19.8 billion parcels, a year-on-year increase of 29%, with adjusted EBIT reaching $147 million [8][25] - In Southeast Asia, parcel volume increased by 41% to 4.6 billion parcels, with revenue rising by 22.3% to $3.2 billion [12][21] - New markets saw a 22% increase in parcel volume, handling 281 million parcels, with revenue growing by 76.1% to $576 million [15][25] - The cross-border business revenue decreased by 88.7% to $75 million due to a strategic shift to focus on B2B [27] Market Data and Key Metrics Changes - The company's market share in China increased to 11.3%, while in Southeast Asia, it reached 28.6%, marking a 3.2 percentage point increase from 2023 [8][12] - The cumulative parcel volume of China's express delivery industry grew by 21.5% in 2024, indicating a robust market environment [10] Company Strategy and Development Direction - The company aims to solidify its market position in Southeast Asia and China while expanding into new markets [16] - Strategies include reducing costs through refined management, leveraging expertise from China, and enhancing service quality [16] - The company plans to capture changes in business flow due to e-commerce globalization and strengthen its brand [16] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in the express delivery industry but expressed confidence in long-term growth and profitability [17] - The company is committed to continuous self-improvement and maintaining a competitive edge in a challenging market [17] - Management expects to achieve full-year EBITDA breakeven for new markets in 2025 [55] Other Important Information - The company reported a significant improvement in cash flow, with a net cash inflow from operating activities of $807 million in 2024 [28] - Free cash flow turned positive for the first time, reaching $252 million [29] Q&A Session Summary Question: Performance of TikTok Shop in Mexico and expectations for parcel volume growth - Management indicated that TikTok Shop began operations in Mexico in February 2025, and the performance is still in early stages [32] - The company expects meaningful contributions to parcel volume growth in new markets as operations develop [32] Question: Expectations for domestic parcel volume growth and competition in 2025 - The company reported a 29% year-on-year increase in parcel volume in China, with expectations to maintain growth despite competition [33] Question: Specific measures for cost reduction in China and future expectations - Management highlighted improvements in operational efficiency and cost optimization measures, with expectations for further reductions [36] Question: Competitive trends in the return parcel market - Management noted that return services have higher profitability than normal delivery services, and competition is expected to increase [38] Question: Business strategy in Southeast Asia and price trends - The company aims to increase market share and expects unit prices to decrease by 5% to 10% annually over the next few years [44] Question: Cash flow position and pressures from debt repayment - The company maintains a strong cash position with sufficient cash equivalents to cover interest-bearing debt, with no near-term repayment pressures [47] Question: Updates on new markets and potential opportunities - Management is optimistic about achieving breakeven in new markets by 2025 and is exploring opportunities in Latin America and the Middle East [55] Question: Year-on-year volume growth in Southeast Asia and major volume drivers - The company expects a parcel volume growth of 20% to 30% in Southeast Asia for 2025, with strong growth observed in the first two months [59] Question: CapEx adjustments in Southeast Asia - The company plans to continue investing in Southeast Asia to solidify its market leadership and capture growth opportunities [63]