Core Viewpoint - JD Group has demonstrated a "counter-cyclical" performance with a 13.4% year-on-year revenue growth in Q4 2024, surpassing 1.15 trillion yuan in annual revenue and achieving a 71% increase in net profit to 41.4 billion yuan, with earnings per share rising by 76.4% [1][2]. Financial Performance - The operating profit margin improved from 2.4% to 3.3% for the entire year [2]. - JD's stock saw a significant increase, with a rise of over 3% in U.S. markets and an 8.42% increase in Hong Kong markets on the same day [3]. Supply Chain Advantage - JD's supply chain infrastructure has reached an asset scale of 161 billion yuan, operating over 1,600 warehouses and 2,000 cloud warehouses, with a total storage area exceeding 32 million square meters [7]. - The "heavy asset" model, previously criticized, has now become a competitive advantage, enabling JD to achieve double-digit growth in the supermarket category for four consecutive quarters [8]. - JD has reduced fulfillment costs to historical lows through smart warehouses and automated sorting technologies, allowing for 24-hour delivery services even in remote areas [8]. Efficiency and Growth Drivers - JD's growth in daily necessities has been driven by "cost, efficiency, and experience," with a notable 3.8% Non-GAAP operating profit margin in Q3 2024 [10]. - The integration of AI technology into supply chain operations has led to significant cost reductions, with a 15% decrease in overall costs through optimized transportation routes and dynamic pricing systems [10][11]. User Engagement and Ecosystem - User activity and shopping frequency have seen double-digit growth for four consecutive quarters, attributed to long-term improvements in user experience rather than short-term price subsidies [15]. - JD's ecosystem is strengthened by initiatives such as PLUS membership benefits, which enhance user engagement and merchant sales, creating a more stable business model compared to traditional transaction-based platforms [17]. Innovation and Future Outlook - JD Cloud has launched the DeepSeek product to meet user demands, providing a one-stop platform for enterprises to implement AI models and achieve smart upgrades [18]. - Despite the positive financial results, there are uncertainties regarding the sustainability of high revenue growth and the challenges posed by entering the competitive food delivery market [19]. - The report emphasizes the importance of building a solid foundation, such as supply chain infrastructure and efficient operational models, to thrive in a highly competitive e-commerce environment [20].