In the second quarter of 2025, JD.com achieved revenue of 35.7 billion RMB, a significant year-on-year increase, mainly driven by the accelerated growth of electronic products, home and office supplies, and service revenues. The non-GAAP operating profit of the core retail business also increased year-on-year, reaching an operating profit margin of 4.5%. User growth was particularly outstanding, with a rapid increase in quarterly active customers, reaching a new high in total users, laying a solid foundation for the company's long-term sustainable development.

In the second quarter, JD.com showed strong user growth momentum, including accelerated development of its retail business, expansion of its organic user base, and incremental contributions from JD food delivery and new businesses. User shopping frequency has significantly increased, especially with JD Plus members seeing a growth of over 50% in shopping frequency. JD's retail business achieved double-digit revenue growth in categories such as electronics, home appliances, supermarkets, and fashion, with enhanced supply chain capabilities driving improvements in procurement, product selection, price competitiveness, and quality service provision. New businesses also demonstrated healthy development trends, forming a synergistic effect with the core retail business to jointly enhance platform user stickiness and lifetime value.

JD's food delivery business has shown strong growth, achieving double improvements in user traffic and merchant value through optimizing system capabilities and strengthening synergy with core retail businesses. At the same time, the company is actively expanding into global markets, leveraging supply chain and technological advantages to drive domestic and international strategic expansion. In the second quarter, the core retail business accelerated growth, expanded profits, demonstrated the resilience of the supply chain-driven retail model, and laid a solid foundation for long-term development.

In the second quarter, the company achieved a 22% year-on-year growth in revenue, far exceeding the growth rate of China's total retail sales. The core retail business performed well, with the gross profit margin increasing to 15.9% for 13 consecutive quarters. Revenue from electronic products, household appliances, general merchandise, and services all achieved double-digit growth, with significant growth in service revenue. Logistics and other service revenues increased by 34% compared to the same period last year. Despite short-term profit being impacted by investments in food delivery, the company remains confident in its long-term growth potential and value creation.

In the second quarter, JD's retail revenue increased by 21% year-on-year, and the core retail business achieved a continuous improvement in gross profit margin for 13 consecutive quarters, reaching 15.9%. Logistics business revenue increased by 17%, despite a short-term non-GAAP operating loss expansion, long-term investment in user experience and efficiency improvement. New business revenue tripled, despite growing losses, but the food delivery business drove user growth and increased shopping frequency. The company's total cash flow and cash equivalents amount to 22.3 billion yuan, showing confidence in long-term healthy growth.

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The dialogue revolves around the strategies of e-commerce platforms under policy adjustments and market competition, with a focus on discussing strategies to deal with the temporary suspension of training programs, as well as how platforms can leverage their supply chain advantages and operational capabilities to promote sales growth under government subsidy policies. At the same time, it explores how to evaluate customer acquisition, cross-selling, and long-term paths to enhance profitability when confronting larger, more financially robust competitors, emphasizing the platform's long-term commitment and differentiation competitive strategy.

The dialogue emphasizes JD's strategies of optimizing product structure, strengthening price advantages, and enhancing service capabilities to continuously expand market share, especially in the areas of smart home appliances and customized products. It also aims to drive industry upgrades through improving supply chain efficiency and user service experience, consolidating its market leadership position.

The conversation discussed how JD.com can leverage its supply chain advantages in the electronics and home appliances sector to drive industry upgrades, while also sharing JD.com's long-term strategy in the food delivery sector. JD.com is committed to improving user experience, reducing costs, and increasing efficiency through the establishment and enhancement of operational system capabilities, optimizing food delivery services. JD.com emphasizes the dignity and safety of full-time riders, improving on-time rates and service quality, while introducing high-quality restaurants and innovative supply chain models such as the Southern Fresh Kitchen model to provide better food delivery services. JD.com's food delivery service is deeply integrated with the overall ecosystem, continuously optimizing system functions, including order scheduling, algorithm improvements, and subsidy efficiency to provide a better user experience.

After operating for more than a quarter of a period, JD's food delivery service has begun to generate expected synergies, significantly driving user traffic and engagement on the JD app and QAC, as well as increasing shopping frequency and e-commerce product conversion rates. Strong cross-selling phenomena have been observed, and there are plans to further enhance synergies through improved QI capabilities in the third quarter. Meanwhile, the synergies between food delivery and retail businesses are also being explored, and the marketing team will evaluate the ROI of different channels to optimize overall marketing effectiveness.

The dialogue discussed the optimization strategies for food delivery services in the long term perspective, including refined subsidy strategies, improving operational efficiency, and enhancing system capabilities to increase profitability. It emphasized the synergistic effects with core retail business, aiming to support the company's long-term healthy growth rather than short-term profits.

Discussed the direction and strategy of investment in new business, as well as its impact on revenue growth, profit targets, and shareholder return policies; at the same time, analyzed the driving factors behind the strong growth of product categories and their future sustainability.

The dialogue detailed JD Group's strategic exploration of new businesses, including innovative business models and technology applications such as AI and automation in the supply chain, as well as expansion plans for international markets. JD is committed to achieving continuous growth in user base and engagement through ongoing business capability improvement and new market development, aiming to become a global leader in retail. At the same time, the company emphasizes value return to shareholders, demonstrating a firm commitment to long-term sustainable development through measures such as stock repurchases and cash dividends.

The dialogue discussed measures taken by JD Supermarket to achieve double-digit growth for six consecutive quarters by optimizing procurement costs, improving supply chain efficiency, and enhancing user experience. At the same time, the company plans to further expand into the instant retail sector to meet diverse consumer needs, especially for time-sensitive products. JD Supermarket will strategically expand its instant retail business while maintaining the development of core e-commerce capabilities to ensure the steady growth of this category.

The conversation focused on JD's significant user and traffic growth in the second quarter, analyzing user behavior, retention rates, and growth strategies, including low pricing strategies, platform system development, and rapid expansion of food delivery services. The long-term goal is to serve 1 billion users, achieve user scale and service range expansion by improving user experience, reducing costs, and increasing efficiency. Additionally, investment plans for growth opportunities, as well as profit margins and profitability trends in the coming years, were discussed, emphasizing strategic investments for long-term sustainable growth.

The discussion focused on JD.com's long-term goal of achieving a high single-digit profit margin and healthy growth in core retail profits. The key to profit growth lies in improving supply chain efficiency, enhancing the profitability of product categories, and developing the Three P ecosystem. Although investment in new businesses may temporarily affect profit margins, in the long run it will create synergies and enhance profitability. Emphasis was placed on investment discipline and ROI focus to flexibly respond to actual results, achieving long-term growth in users, GMV, and profit.

Discussed JD's international expansion strategy as China's largest retailer, with a focus on building supply chain capabilities to support the globalization of Chinese brands. It also emphasizes the importance of local development, including retail, e-commerce, local team building, and procurement. Mentioned the upcoming launch of the retail e-commerce platform Joy Buy in Europe and plans to acquire a European company to strengthen supply chain capabilities and achieve mutual benefits. Emphasized the importance of regulatory approvals and promised to provide timely updates on progress.