JD.com, Inc. Q1 FY2025 earnings call

• Total revenues up 16% y-o-y, non-GAAP net profit up 43% to RMB 12.8 billion, net margin 4.2%. • Electronics and home appliances saw 17% revenue growth, general merchandise 15% with supermarket and fashion in double digits. • Quarterly active customer number up double digits, average user shopping frequency and ARPU up. • Food delivery order volume close to 20 million, integrated into JD ecosystem. • Launched RMB 200 billion export to domestic sales program. • Actively adopting AI across demand, supply, and fulfillment, improving user experience and operational efficiency.

JD Retail achieved 16% year-on-year revenue growth in Q1, with non-GAAP operating income up 38% y-o-y to RMB 13 billion and operating margin improving. JD Logistics revenue grew 11% y-o-y, with internal and external revenues both double-digit. New business revenues turned around to positive growth of 18% y-o-y, but non-GAAP operating loss widened to RMB 1.3 billion. Electronics and home appliances revenues were up 17%, general merchandise revenues 15%, service revenue growth 14% with marketplace and marketing up 16%.

• Expect continued growth in supermarket, fashion, and other general merchandise categories. • Food delivery to generate synergies with core retail, driving user traffic, purchase frequency, and cross-selling. • Long-term goal of achieving high single-digit net margin through business scale expansion and operational efficiency gains.

Q: What are the medium-term results for food delivery and the industry landscape?

A: Food delivery is a natural extension of core retail, with JD having strengths to address user, merchant, and rider demands. Mid-term goal is to strengthen synergy with core systems.

Q: How is JD sustaining momentum in apparel and general merchandise?

A: Enhanced operational capabilities and user experience, expanding brand selection, leveraging supply chain, and focusing on user growth and ecosystem development.

Q: Key metrics for food delivery and AI application?

A: Food delivery daily order volume growing, cross-selling emerging. AI used in advertising to enhance algorithms, and across demand, supply, and fulfillment for efficiency gains.

Q: JD 618 campaign details?

A: Starts May 31, centered on better and cheaper, with multiple scenarios and subsidies, food delivery debuting with extra subsidies.

Q: Trends in electronics categories and capital return?

A: Expect strong momentum in electronics, with share buybacks and dividends ongoing, having repurchased 80.7 million shares and paid dividends.