2025-08-14 13:02Financial 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 [6][20] - 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, primarily due to investments in new businesses [6][29] - Gross margin reached 15.9% in Q2, marking the thirteenth consecutive quarter of gross margin expansion [20][29] Business Line Data and Key Metrics Changes - JD Retail revenues increased by 21% year on year in Q2, with non-GAAP operating income up 38% to RMB 13.9 billion and operating margin at 4.5% [24][26] - Electronics and home appliances revenue grew by 23% year on year, while general merchandise revenues increased by 16% [22][24] - Service revenues saw a significant acceleration, rising 29% year on year in Q2 [22] Market Data and Key Metrics Changes - Quarterly active customers (QAC) grew over 40% year on year, with user shopping frequency on JD's platform rising by over 40% [9][66] - The food delivery business has seen rapid growth, with daily order volume increasing exponentially and significant synergies with the core retail business [13][45] Company Strategy and Development Direction - The company aims to enhance user experience, lower costs, and improve efficiency to drive sustainable growth [5][18] - JD is focusing on integrating food delivery with its core retail business to unlock synergies and enhance user engagement [15][48] - International expansion is a key strategy, with efforts to build local retail and e-commerce capabilities in markets like Europe and the Middle East [16][76] Management 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 strategic investments [21][30] - The company aims to achieve a high single-digit profit margin in the long term, with ongoing improvements in supply chain efficiency and category profitability [68] Other Important Information - The company has maintained a consistent share repurchase program, with USD 1.5 billion repurchased in the first half of the year [56] - JD's food delivery business is viewed as a long-term initiative, with a focus on improving unit economics and enhancing operational capabilities [48][70] Q&A Session Summary Question: Strategy for Electronics and Compliance in the second half - Management highlighted robust supply chain capabilities and a focus on product, price, and service to strengthen market share [38][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 and synergies with core retail [41][45] Question: Direction and strategy for new business investments - Management discussed innovation in business models and technology, aiming to enhance supply chain advantages and user experience [54][55] Question: Drivers behind strong growth in general merchandise categories - Management noted operational enhancements and the supermarket category's sustained double-digit growth as key drivers [58][60] Question: User and traffic trends - Management reported strong user growth and engagement, driven by low price strategies and the success of the food delivery business [66][67] Question: Bottom line outlook and investment budgeting - Management indicated that while short-term margins may fluctuate, long-term profitability goals remain unchanged, with a focus on strategic investments [68][71] Question: Overseas expansion strategy and recent deals - Management outlined a focus on supply chain capabilities and localization in international markets, with plans to launch a retail e-commerce platform in Europe [76]