Core Viewpoint - JD.com has entered the food delivery market, resulting in significant revenue growth but also substantial losses, indicating a strategic shift towards long-term growth despite short-term financial impacts [4][5][9]. Financial Performance - In Q2 2025, JD.com reported revenue of 356.7 billion RMB, a year-on-year increase of 22.4%, but net profit halved compared to the previous year [4][10]. - The new business segment, driven by the food delivery service, saw revenue soar by 198.8% year-on-year, but operating losses expanded from 700 million RMB to 14.8 billion RMB, resulting in an overall operating loss of 860 million RMB for the quarter [4][7][9]. - The average loss per delivery order was approximately 8.5 RMB, with daily order volumes reaching around 18 million in Q2 [6][11]. Business Strategy - Management emphasized that the food delivery business is not focused on short-term results but aims to establish a sustainable business model over the next five to twenty years [5][9]. - The food delivery service has begun to show synergy with JD.com's core retail operations, enhancing user engagement and cross-selling opportunities [9][11]. Retail and Logistics Growth - JD's retail segment recovered, achieving a revenue increase of 20.6% year-on-year, with significant contributions from electronic products and daily necessities [12][13]. - Logistics revenue also grew by 17% year-on-year, with expectations of further contributions from the food delivery business [12]. International Expansion - JD.com is actively pursuing international growth, including a planned acquisition of German electronics retailer Ceconomy for approximately 22 billion RMB, and has also completed the acquisition of Hong Kong-based supermarket chain Jia Bao [19][20]. - The company continues to expand its logistics and retail capabilities in Europe and the Middle East, maintaining a heavy asset model for international operations [20]. Future Outlook - JD.com aims to leverage its food delivery service to rejuvenate its retail business and explore new growth avenues for the next five to ten years [21][22].

Core Viewpoint - JD.com reported its Q2 2025 earnings, showcasing strong revenue growth but significant losses in new business segments, particularly in food delivery, raising concerns about its long-term profitability strategy [4][7][19]. Group 1: Financial Performance - JD.com achieved a record revenue of 356.7 billion RMB in Q2 2025, marking a 22.4% year-on-year increase [4]. - The core retail business generated 310.1 billion RMB, with a growth rate of 20.6% and an operating profit margin of 4.5%, the highest in the company's history for any promotional quarter [4][10]. - However, the new business segment, including food delivery, incurred a loss of 14.777 billion RMB, leading to an overall operating loss of 900 million RMB compared to a profit of 10.5 billion RMB in the same quarter last year [7][19]. Group 2: Business Segments - The retail and logistics segments remained robust, with retail revenue growing by 20.6% and logistics revenue increasing by 16.6% to 51.564 billion RMB [10][15]. - The food delivery service, despite generating 13.852 billion RMB in revenue (up nearly 200% year-on-year), faced substantial losses, with an operating profit margin plummeting to -106.7% [17][19]. - The average loss per food delivery order was reported to be around 5 to 6 RMB, indicating a significant financial burden on the company [17]. Group 3: Strategic Insights - JD.com's entry into the food delivery market is seen as a long-term strategic move to enhance user engagement and drive traffic to its core e-commerce platform [22][30]. - The company aims to leverage high-frequency food delivery transactions to convert users into long-term customers across its retail ecosystem [26][30]. - JD.com is committed to investing heavily in this segment, with management indicating a willingness to sacrifice short-term profits for long-term growth [32][34]. Group 4: Competitive Positioning - JD.com maintains a competitive edge through its supply chain advantages and self-operated model, which have contributed to a consistent increase in gross margins over 13 consecutive quarters [34][38]. - The company has focused on differentiated product offerings and enhanced service experiences to avoid price wars with competitors [38][42]. - JD.com is also expanding its logistics network globally, aiming to replicate its domestic success in international markets [42].

Core Viewpoint - JD's entry into the food delivery market has resulted in significant financial losses, impacting its overall profitability and stock performance, despite a record revenue growth in Q2 2025 [2][3][9]. Group 1: Financial Performance - In Q2 2025, JD reported a revenue of 356.66 billion yuan, a year-on-year increase of 22.4%, but net profit dropped by 50.8% to 6.2 billion yuan [2][7]. - The operating loss in the new business segment, which includes food delivery, surged from 700 million yuan to 14.8 billion yuan year-on-year, leading to an overall operating loss of 900 million yuan [8][9]. - Marketing expenses skyrocketed from 11.9 billion yuan to 27 billion yuan, a 127.6% increase, significantly outpacing revenue growth [8]. Group 2: Market Dynamics - JD's stock price fell over 33% from a peak of 179 HKD in March to 120.3 HKD by mid-August, reflecting investor concerns about its profitability [4][10]. - The food delivery business, which generated 13.9 billion yuan in revenue, is seen as a major focus for analysts, despite its substantial losses [5][8]. Group 3: Strategic Outlook - JD's CEO emphasized the long-term vision for food delivery and instant retail, aiming for sustainable business models rather than short-term profits [11]. - Despite the challenges, JD's core retail business remains strong, with a 20.6% revenue growth, contributing significantly to overall profits [7][12]. - Analysts express skepticism about JD's ability to maintain user growth and profitability in the food delivery sector, especially given the competitive landscape [11][14].

Investment Rating - The report maintains a "Buy" rating for JD [1][13][25] Core Insights - JD's retail growth remains strong, with effective synergies between e-commerce and food delivery, leading to a significant increase in active users and shopping frequency [7][9][11] - The company's revenue for Q2 FY25 reached RMB 356.7 billion, a year-on-year increase of 22.4%, exceeding expectations [8][10] - Non-GAAP net profit for Q2 FY25 was RMB 7.4 billion, down 48.9% year-on-year, but still surpassing forecasts [8][10] Financial Data and Profit Forecast - Revenue projections for JD are as follows: - 2023: RMB 1,084.66 billion - 2024: RMB 1,158.82 billion - 2025E: RMB 1,328.95 billion - 2026E: RMB 1,425.11 billion - 2027E: RMB 1,522.26 billion - Non-GAAP net profit estimates for the upcoming years are: - 2025E: RMB 26.96 billion - 2026E: RMB 47.73 billion - 2027E: RMB 60.53 billion [16][10][13] Operational Performance - JD's food delivery business has shown healthy growth, with daily orders exceeding 25 million across 1.5 million partner restaurants in 350 cities [11][12] - The company's operational efficiency improved, achieving a gross margin of 15.9% and a fulfillment gross margin of 9.7% in Q2 FY25 [10][12] - The retail operating margin for Q2 FY25 was 4.5%, while logistics operating margin decreased to 3.8% [10][12] Strategic Initiatives - JD has launched a RMB 10 billion subsidy program for food delivery, which has led to increased competition and short-term profitability pressure [10][12] - The company is focusing on quality food delivery and has introduced innovative models like the "Seven Fresh Kitchen" partnership, which quickly gained traction [12][13] Market Position - JD's core supply chain capabilities remain robust, supporting long-term growth in both retail and new business segments [13][10] - The report highlights the positive impact of national subsidy policies and an expanding active user base on the performance of power-consuming categories [13][9]

Investment Rating - The report maintains a "Buy" rating for JD Group-SW (9618.HK) [1][20] Core Views - JD Group's Q2 2025 revenue reached 356.7 billion yuan, a year-on-year increase of 22% and a quarter-on-quarter increase of 18%, exceeding Bloomberg consensus expectations [5][10] - The company's adjusted net profit significantly surpassed Bloomberg consensus expectations, primarily due to better-than-expected gross margin and operating profit margin in JD Retail, despite losses from new businesses like food delivery [6][10] - The retail segment showed strong growth, with revenue from the 1P electronics category increasing by 23% year-on-year to 179 billion yuan, and the 1P daily necessities category growing by 16% to 103.4 billion yuan [6][9] Summary by Sections Financial Performance - Q2 2025 revenue was 356.7 billion yuan (YoY +22%, QoQ +18%), with a gross profit of 56.6 billion yuan (YoY +23%, QoQ +18%) [5][10] - Operating profit was -0.9 billion yuan (YoY -108%, QoQ -108%), and net profit was 6.7 billion yuan (YoY -51%, QoQ -41%) [5][10] - Non-GAAP net profit was 7.4 billion yuan (YoY -49%, QoQ -42%) [5][10] Retail Segment - JD Retail revenue grew by 21% year-on-year to 310.1 billion yuan in Q2 2025, with an operating profit margin of 4.5% [6][9] - The growth was driven by a robust recovery in consumer spending and government subsidy policies [6][9] Logistics Segment - JD Logistics revenue reached 51.6 billion yuan (YoY +17%, QoQ +10%), with a slight decrease in operating profit margin to 3.8% [9] - The integrated supply chain customer revenue grew by 19.9% year-on-year, with over 70,000 external customers [9] New Business Initiatives - New business revenue, including food delivery, reached 13.9 billion yuan, with an operating loss of 14.8 billion yuan [9] - The food delivery segment has shown significant user growth, with daily orders reaching 25 million [9] Earnings Forecast and Valuation - Revenue forecasts for 2025-2027 have been revised upwards to 1,323.58 billion yuan, 1,420.01 billion yuan, and 1,512.77 billion yuan respectively [17][18] - The target market capitalization for JD Group in 2026 is set at 544.5 billion yuan, with a target price of 171 yuan per share [17][18]

Core Viewpoint - The article discusses the current state of JD.com's food delivery business, highlighting its significant losses and strategic shifts in response to competition from Alibaba and Meituan. It emphasizes the need for sustainable growth and the challenges of achieving synergy between delivery and core retail operations [4][6][11]. Group 1: Financial Performance - In Q2, JD.com reported a new business loss of 14.7 billion yuan, exceeding investor expectations, with net profit down 51% year-on-year [4][6]. - Total revenue grew by 22.4% to 356.7 billion yuan, with the new business segment, including food delivery, seeing a revenue increase of 198.8% to 13.852 billion yuan [10][15]. - The core retail business achieved a revenue growth of 20.6%, with an operating profit margin of 4.5%, marking the highest record for JD.com during major promotional periods [15][18]. Group 2: Strategic Shifts - JD.com is focusing on foundational improvements in its delivery system rather than competing aggressively for market share, aiming for long-term sustainability [5][10]. - The company has shifted its strategy to prioritize quality supply and partnerships with major brands, rather than engaging in price wars with competitors [9][10]. - CEO Xu Ran stated that the goal is to enhance user experience and operational capabilities, with a focus on quality delivery rather than immediate market share gains [13][18]. Group 3: User Engagement and Growth - JD.com experienced a significant increase in active users, with daily active users up 35% year-on-year and monthly active users up 17% [10][11]. - The company aims to leverage the high-frequency nature of food delivery to drive cross-selling opportunities with its core retail business, although the effectiveness of this strategy remains uncertain [11][12]. - During the 618 shopping festival, JD.com achieved record-breaking user engagement, with total orders exceeding 2.2 billion, indicating strong resonance with its delivery services [12][17]. Group 4: Market Position and Competition - The article notes that JD.com is adopting a more cautious approach in the competitive landscape of food delivery, avoiding direct confrontations with Alibaba and Meituan [9][13]. - The management believes that excessive competition does not lead to innovation or value creation, and they are focused on a sustainable business model [13][18]. - JD.com positions instant retail as a complementary service rather than a disruptive force, maintaining that its core e-commerce business has advantages in product variety and cost-effectiveness [18].

Core Insights - JD.com reported a significant revenue increase of 22.4% year-on-year for Q2 2025, reaching 356.7 billion yuan, exceeding market expectations by 6 percentage points [1] - The company's Non-GAAP net profit for the same period was 7.4 billion yuan, also surpassing consensus estimates [1] - The growth was driven by the success of the trade-in policy, particularly in the electronics and home appliance categories, which saw a revenue increase of 23.4% [2][6] Retail Business Performance - JD's core retail business generated 310.1 billion yuan in revenue for Q2 2025, reflecting a 20.6% year-on-year growth, exceeding market expectations by approximately 5 percentage points [2] - Operating profit for the retail segment was 13.9 billion yuan, up from 10.1 billion yuan in the same quarter last year, with an operating profit margin of 4.5%, an increase of 0.6 percentage points year-on-year [2] - The daily necessities category maintained double-digit growth for six consecutive quarters, with a 16.4% year-on-year revenue increase [2][3] User Engagement and Growth - JD.com experienced over 40% year-on-year growth in quarterly active users and shopping frequency, marking the seventh consecutive quarter of double-digit growth in active users [2][3] - The "618" shopping festival saw a more than 100% increase in the number of placing orders, with overall order volume exceeding 2.2 billion [3] New Business Developments - JD's new business, including food delivery, saw a remarkable revenue increase of 199% year-on-year in Q2 2025 [6] - The food delivery service achieved a daily order volume exceeding 25 million, covering 350 cities and involving over 150,000 quality dining establishments [6][7] - The launch of the "Seven Fresh Kitchen" platform aims to innovate the food delivery sector, with plans to establish 10,000 locations nationwide within three years [7] Supply Chain and Differentiation - JD's supply chain capabilities were highlighted as a key factor in achieving high-quality user experiences and operational efficiency, with retail gross margins increasing for 13 consecutive quarters [3][5] - The company is focusing on customized products and differentiated shopping experiences through its private label offerings and innovative packaging strategies [4][5]

Core Insights - JD Group reported its strongest quarterly performance in nearly three years, with total revenue reaching 356.7 billion yuan, a year-on-year increase of 22.4%, marking the highest growth rate since 2022 [1][3] - The core retail business generated revenue of 310.1 billion yuan, up 20.6% year-on-year, with an operating profit margin of 4.5%, the highest level during major promotional seasons [1][3] - New business revenue surged to 13.85 billion yuan, reflecting a staggering year-on-year growth of 198.8%, making it the fastest-growing segment [1][3] Revenue Breakdown - In Q2 2025, JD's retail revenue was 310.1 billion yuan, logistics revenue was 51.6 billion yuan, and new business revenue was 13.9 billion yuan [3][9] - The product revenue for Q2 2025 was 282.4 billion yuan, accounting for 79.18% of total revenue, with electronic products and home appliances generating 178.98 billion yuan, a 23.4% increase year-on-year [9] User Engagement and Business Efficiency - JD's active user count has seen double-digit growth for seven consecutive quarters, with user purchase frequency increasing by over 40% year-on-year, validating the effectiveness of the "high frequency brings low frequency" strategy [3][11] - The introduction of the food delivery service has significantly boosted user engagement, leading to increased traffic and user growth, particularly among younger demographics [11][15] Profitability and Strategic Investments - The net profit for Q2 2025 was 6.2 billion yuan, down from 12.6 billion yuan in the same period last year, primarily due to investments in new business strategies [12][13] - Despite short-term profit impacts from new business investments, management emphasizes the long-term growth potential and synergy with core operations [13][16] Supply Chain and Competitive Advantage - JD's robust supply chain is identified as a core competitive advantage, ensuring stable product supply and reliable delivery services [10][16] - The company aims to optimize costs and improve efficiency through scale procurement and product design, allowing for competitive pricing without relying on excessive subsidies [10][16] Long-term Vision - Management stresses that the food delivery business is a long-term strategic focus, aiming to build a sustainable business model over five to twenty years [15][16] - Future plans include enhancing cross-selling opportunities between food delivery and core retail, aiming to drive overall user growth and purchasing frequency [15][16]

机构：华泰证券 研究员：夏路路/侯杰 风险提示：外卖等新业务投入超预期，以旧换新活动效果退坡。 京东2Q25 营收同增22.4%至3,567 亿元，优于VA 一致预期/华泰预测的+15.0/+15.6%，非GAAP 归母净 利润74 亿元，同比-48.9%，优于一致预期/华泰预测的-58.8/-69.9%，主因零售板块经营利润释放好于预 期和非经常性损益及所得税情况好于预期。在外卖行业激化的竞争中，我们预计京东的投入或在3Q25 起进入效率优化阶段，但整体投入量级受季度总订单量环比增长明显影响或继续维持在较高水平（2Q 估算为130-140 亿元）。展望后续，京东如何长效留存其通过国补行动与外卖业务探索获得的新用户并 提升核心客户的活跃度，将是其核心零售业务下一阶段增长的关键，建议持续关注。维持"买入"评级。 活跃买家增长迅速，国补利好下带电品类延续加速增长2Q25 京东零售总收入3,101 亿元，同增20.6%， 经营利润139 亿元，同增37.9%，优于一致预期的同增17.5%，主因国补带动的经营效率改善和收入的超 预期增长。管理层指出京东零售季度活跃买家数同比增长超40%，连续7 个季度实现双位数增长。 ...

Core Viewpoint - The article discusses the current state of JD's food delivery business, highlighting its significant losses and strategic shift towards a more sustainable growth model amidst fierce competition in the delivery sector [4][5][6]. Summary by Sections Financial Performance - In Q2, JD reported a new business loss of 14.7 billion, exceeding investor expectations, with net profit down 51% year-on-year [4][5]. - Total revenue grew by 22.4% to 356.7 billion, with the new business segment, including food delivery, seeing a revenue increase of 198.8% to 13.852 billion [8][13]. - The core retail business remains the strongest performer, with a revenue increase of 20.6% and an operating profit margin of 4.5%, marking the highest record for JD during major promotional periods [5][13]. Strategic Shifts - JD is adopting a more pragmatic approach in the food delivery sector, focusing on building a solid foundation rather than competing aggressively for market share [4][7]. - The company aims to enhance user, merchant, and delivery personnel experiences while prioritizing quality over quantity in its service offerings [5][10]. Market Position and Competition - The competitive landscape has shifted, with JD becoming a quieter player in the "delivery war," as rivals like Taobao and Meituan ramp up their efforts [7][11]. - JD's strategy includes avoiding direct competition with rivals during peak promotional periods, instead opting to support quality merchants through subsidies [7][8]. User Engagement and Growth - JD's active user base saw a significant increase, with daily active users up 35% and monthly active users up 17% year-on-year [8][9]. - The company is working on enhancing cross-selling capabilities between its food delivery and core retail businesses, although the effectiveness of this strategy remains uncertain [10][11]. Future Outlook - JD's management emphasizes a focus on sustainable business models rather than engaging in excessive competition, aiming for long-term growth through operational improvements and user experience enhancements [11][12]. - The company acknowledges the role of government subsidies in its recent performance but does not intend to rely on them as a long-term strategy [12][13].