Core Viewpoint - JD.com is making significant moves in the prepared food sector by establishing a dedicated business unit for prepared foods, indicating a strategic shift towards developing its own brand in this category [2][4]. Group 1: Strategic Developments - JD.com has officially formed a prepared foods business unit, which is on par with other major divisions within its retail structure, and is led by Andy Tian, reporting directly to CEO Xu Ran [2]. - The establishment of this independent unit marks a strategic upgrade, shifting focus from brand partnerships to the development of proprietary products [4][6]. - JD.com has been involved in the prepared food sector since 2017, gradually building partnerships with well-known restaurant brands and expanding its product offerings [3][6]. Group 2: Market Position and Growth Potential - The prepared food market in China has been growing rapidly, with a projected market size of 4.85 trillion yuan in 2024, reflecting a year-on-year growth of 33.8% [8]. - JD.com aims to leverage its supply chain capabilities to enhance its prepared food offerings, with plans to create 20 brands with annual sales exceeding 100 million yuan and 5 brands exceeding 500 million yuan within three years [6][8]. - The shift towards prepared foods is seen as a way to tap into new profit margins, as these products can achieve over 30% gross margins, contrasting with traditional retail models [7]. Group 3: Competitive Landscape - Other retail platforms, such as Hema and Dingdong Maicai, have also been developing their own prepared food brands, indicating a competitive landscape where self-branded prepared foods are becoming a key growth area [8]. - JD.com's entry into this market aligns with its founder Liu Qiangdong's strategic principle of focusing solely on supply chain-related businesses [8].

Core Insights - The company is shifting from a traffic and platform-centric approach to a product and ecosystem mindset, focusing on fresh produce and food supply chain [1] - An organizational restructuring has been initiated to enhance product quality and differentiation, creating 10 independent divisions based on major product categories [1] - The company has developed several proprietary brands and is exploring further expansion into self-owned brands [1][2] Company Strategy - The restructuring involves 10 independent divisions that encompass product development, operations, and quality control, each led by a core executive [1] - The company aims to enhance its self-owned brand strategy, having already launched various brands across different categories [1] - The company is also expanding its sales channels beyond its own platform to include major online platforms and offline retail channels [2] Financial Performance - In Q1 of this year, the company's GMV reached 5.96 billion yuan, a year-on-year increase of 7.9%, while revenue was 5.48 billion yuan, up 9.1% [3] - The net profit under GAAP standards was 8.017 million yuan, with a net profit margin of 0.1% [3] - The improvement in business metrics is attributed to strategic adjustments and organizational changes [3]