2025-08-14 13:00Financial Data and Key Metrics Changes - The company reported a solid top line growth of 22% year on year in Q2, with total revenues reaching RMB 357 billion [7][22] - Non-GAAP net income attributable to ordinary shareholders was RMB 7.4 billion, down from RMB 14.5 billion in the same period last year due to investments in new businesses [7][30] - Gross margin reached 15.9%, marking the thirteenth consecutive quarter of gross margin expansion [21][30] - Non-GAAP net profit margin decreased to 2.1%, primarily due to investments in food delivery [21][30] Business Line Data and Key Metrics Changes - JD Retail revenues increased by 21% year on year, with non-GAAP operating income up 38% to RMB 13.9 billion [25][26] - Electronics and home appliances revenue grew by 23% year on year, while general merchandise revenues increased by 16% [22][23] - Service revenues saw a significant acceleration, rising 29% year on year [23] - New business revenues tripled year on year, but non-GAAP operating loss widened to RMB 14.8 billion due to rapid expansion [28] Market Data and Key Metrics Changes - Quarterly active customers (QAC) grew over 40% year on year, with user shopping frequency increasing by over 40% [9][66] - JD Food Delivery has seen rapid growth, onboarding over 1.5 million high-quality restaurants and exceeding 150,000 full-time delivery riders [42][44] Company Strategy and Development Direction - The company aims to enhance user experience, lower costs, and improve efficiency to drive sustainable growth [6][18] - JD Food Delivery is viewed as a long-term strategic direction, integrated with the core retail business to drive synergies [15][49] - The company is exploring international expansion, focusing on supply chain capabilities and local market development [75] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the core retail business and the progress of new initiatives, despite near-term profitability impacts from investments [21][30] - The company aims to serve 1 billion e-commerce users in China, focusing on enhancing user experience and operational efficiency [66] - Long-term profitability goals remain unchanged, with expectations of high single-digit profit margins [68] Other Important Information - The company has maintained a consistent share repurchase program and has paid cash dividends for four consecutive years [57] - JD's strategic investments in new business initiatives are expected to drive long-term growth in users and profits [55][70] Q&A Session Summary Question: Strategy for Electronics and Compliance in the second half - Management highlighted robust supply chain capabilities and proactive approaches to national policies, ensuring stable product supply and fulfillment [39] Question: Long-term commitment to Food Delivery amidst competition - Management emphasized the importance of improving user experience and operational capabilities, with a focus on quality food delivery and synergies with core business [42][49] Question: Direction and strategy for new business investments - Management discussed innovation in business models and technology adoption, aiming to enhance supply chain advantages and user experience [55] Question: Drivers behind strong growth in general merchandise categories - Management attributed growth to enhanced operational capabilities and strategic focus on product, price, and service [59]