Core Viewpoint - JD's performance in Q4 2024 exceeded market expectations, driven by government subsidies for electronic products, marking a significant return to double-digit revenue growth for the first time in nearly three years [1][9][14]. Group 1: Revenue Performance - JD's self-operated retail business achieved revenue of 281 billion RMB, a year-on-year increase of 14%, marking a notable recovery in growth [1][14]. - Revenue from electronic products benefited significantly from government subsidies, jumping from 2.7% to 15.8% in growth [1][15]. - Overall revenue growth for JD reached 13% year-on-year, surpassing the market's adjusted expectations of 9% to 10% [2][18]. Group 2: Profitability - JD's overall operating profit was 8.5 billion RMB, aligning with market expectations, while the Non-GAAP operating profit reached 10.5 billion RMB, exceeding the anticipated 9.3 billion RMB [2][22]. - The operating profit from JD Mall was 10 billion RMB, a 44% increase year-on-year, marking a historical first for Q4 [2][23]. - JD Logistics reported an operating profit of 1.82 billion RMB, slightly above expectations, indicating ongoing profit release [3][23]. Group 3: Cost and Expenses - JD's gross margin for the quarter was 15.3%, a year-on-year increase of approximately 1.1 percentage points, although the growth rate has slowed compared to previous quarters [5][25]. - Marketing expenses rose significantly from 13 billion RMB to 16.8 billion RMB, indicating a competitive environment where spending is necessary for growth [6][27]. - Fulfillment costs also increased by 16% year-on-year, reflecting the strong sales performance [6][28]. Group 4: Shareholder Returns - JD announced a total dividend of 1.5 billion USD and a share buyback program of 5 billion USD over the next two and a half years, representing a return rate of approximately 5.5% based on pre-market valuation [7][29]. Group 5: Future Outlook - The government has expanded subsidies to include mobile phones and wearable devices, providing JD with a competitive advantage in the upcoming quarters [9][10]. - However, the entry into new business areas such as ride-hailing and food delivery introduces uncertainty regarding future profitability and performance [10][11].