Summary of JD.com's Earnings Call Company Overview - **Company**: JD.com - **Date**: August 14, 2025 Key Financial Metrics - JD.com reported a **22% year-over-year revenue growth**, reaching **RMB 357 billion** [3][4] - Non-GAAP net income attributable to ordinary shareholders was **RMB 7.4 billion**, down from **RMB 14.5 billion** year-over-year, primarily due to investments in new businesses [3][4] - Operating profit under non-GAAP increased by **38%** to **RMB 13.9 billion**, with operating margin rising from **3.9% to 4.5%** [2][3][4] User Growth and Engagement - Quarterly Active Customers (QAC) grew by over **40% year-over-year**, with shopping frequency also increasing by over **40%** [2][5] - Membership user shopping frequency surged by over **50%** [5] - During the 618 shopping festival, the number of purchasing users more than doubled, with total orders exceeding **2.2 billion** [2][5] Supply Chain and Product Performance - JD's supply chain capabilities continued to strengthen, with electronics and home appliances revenue growing by **23%** and general merchandise revenue by **16%** [2][6] - Supermarket category maintained double-digit growth for six consecutive quarters, while fashion also saw double-digit growth [2][6] New Business Developments - New initiatives, including JD Daojia, experienced exponential growth in daily order volume and a rapid increase in full-time delivery drivers [2][7] - Urban food delivery services showed synergy with core retail operations, enhancing performance in supermarkets and lifestyle services [2][7] International Expansion Strategy - JD.com is establishing localized operations in Europe and the Middle East, focusing on retail formats, warehousing, and transportation infrastructure [4][8] - The company aims to leverage its supply chain and technology advantages in international markets [8][33] Long-term Strategic Goals - JD.com aims to serve **1 billion e-commerce users** in China, focusing on enhancing user experience, reducing costs, and improving efficiency [29] - The company plans to continue strategic investments to achieve sustainable user growth and value creation [29][32] Profitability and Margin Expansion - Core retail business profitability is driven by improved supply chain efficiency, leading to lower costs and enhanced operational efficiency [30] - The gross profit margin for the second quarter reached **15.9%**, with a **23%** year-over-year increase in gross profit [14][11] Challenges and Future Outlook - The company faces short-term pressure on net income due to strategic investments in new business areas, particularly in food delivery [14][32] - JD.com is committed to maintaining a balance between investment in growth and shareholder returns, including stock buybacks and dividends [25][32] Conclusion - JD.com demonstrated strong financial performance and user engagement in the second quarter, with significant growth in both core and new business areas. The company is strategically positioned for long-term growth through supply chain enhancements and international expansion efforts.

Investment Rating - The report maintains a "Buy" rating for JD Group-SW (9618.HK) [4][6] Core Insights - The company reported a revenue of CNY 1,158.82 billion for 2024, representing a year-on-year growth of 6.8%, and a GAAP net profit of CNY 41.36 billion, up 71.1% year-on-year [1] - In Q4 2024, the company achieved a revenue of CNY 347.0 billion, a 13.4% increase year-on-year, with a GAAP net profit of CNY 9.85 billion, reflecting a 190.8% year-on-year growth [1][10] - The retail business showed significant recovery, with product revenue in Q4 2024 reaching CNY 281.0 billion, a 14.0% increase year-on-year, driven by the "trade-in" policy [2] Summary by Sections Financial Performance - For 2024, JD Group achieved a Non-GAAP net profit of CNY 47.83 billion, a 35.7% increase year-on-year [1] - The company announced a cash dividend of USD 0.5 per share for 2024, totaling approximately USD 1.5 billion [3] - The company plans to repurchase 255 million Class A ordinary shares, amounting to about USD 3.6 billion, which represents 8.1% of the total shares outstanding as of the end of 2023 [3] Revenue Growth and Business Strategy - The "trade-in" policy significantly boosted revenue in the electronics and home appliances categories, achieving a 15.8% year-on-year growth [2] - The company enhanced its platform ecosystem, leading to a 12.7% year-on-year growth in platform and advertising revenue in Q4 2024 [2] - The active user base and shopping frequency both experienced double-digit year-on-year growth, indicating improved user engagement [2] Profitability and Future Outlook - The report projects an increase in Non-GAAP net profit to CNY 52.33 billion for 2025, reflecting a 1.4% upward revision [4] - The company is expected to benefit from continued demand driven by the "trade-in" policy and ongoing improvements in its platform ecosystem [4]