JD.com, Inc. Q4 FY2025 earnings call

1. User base expanded in scale and depth: Active customers grew 30% y-o-y in Q4, over 700 million annual active customers; high-value users hit new milestone; user shopping search up over 40% y-o-y full year. 2. Core retail business resilient: Q4 maintained stable margins despite short-term headwinds; full-year JD Retail delivered strong double-digit growth in revenue and operations, operating margins improved by 52 bps to 4.6%. General merchandise strong: Q4 revenue up 12.1% y-o-y, full-year 15.3%; supermarket revenue double-digit growth in Q4, full-year 18%. Advertising revenue boosted marketplace and marketing revenues: Q4 up 15%, full-year 18.9%. 3. New businesses progress: JD Food Delivery maintained steady order momentum, reduced total investment scale by nearly 20% q-o-q; Jinxi and international business progressing; Joinbuy in Europe to launch this month; AI initiatives embedded across value chain, e.g., JoyAI supports over 1,000 applications, Xin Yan AI agent surpassed 150 million annual AAC in 2025.

JD Retail: Q4 revenues up 2% y-o-y, full-year up 11%; gross margin up 1.1 ppt in Q4 and full-year 2025; non-GAAP operating income Q4 down 2% y-o-y, margins steady at 3.2%, full-year non-GAAP operating income up 25% y-o-y, margin improved by 52 bps to 4.6%. JD Logistics: Q4 revenues up 22% y-o-y, full-year up 19%; non-GAAP operating income 2025 down 17% y-o-y, Q4 up 3%. New business: Q4 revenues up 201% y-o-y, full-year up 157%; non-GAAP operating loss narrowed to RMB 14.8 billion in Q4, driven by narrowing loss at JD Food Delivery.

1. Expect marketplace and marketing revenues to maintain solid growth momentum in 2026. 2. JD Food Delivery will prioritize healthy volume growth while improving unit economics, expect investment efficiency to improve further in 2026. 3. For JD Retail, general merchandise category to continue healthy growth; electronics and home appliances category to see sequential improvement in growth from second half of 2026. 4. International business to gradually increase investment on a controlled scale.

Q: On J.D. Retail's 2026 growth as electronics appliances return to a more normalized base from the second half, the general merchandise remains very healthy, so how should we think of the growth rate for J.D. Retail in 2026 for the first half and second half and the differences given the base?

A: General merchandise category continues healthy growth; electronics and home appliances category to remain affected by high base in first half 2026, but sequential improvement expected in second half, market share resilient; growth drivers diversified including general merchandise, advertising services.

Q: On the on-demand and food delivery. How should we think of the path to further unit economics improvement? Compared with the bigger competitors, how are we differentiating ourselves through supply chain-driven business models? And how should we think of your determination and commitment to this business? And with the regulations and investigations on the food delivery industry, will that also contribute to an economic improvement?

A: JD Food Delivery's differentiating advantage includes commitment to high-quality food delivery, superior service quality, synergy across JD ecosystem; path to unit economics improvement includes more diversified revenue streams, optimized subsidy efficiency, enhanced delivery efficiency; support and welcome regulation for fair competition, innovate through supply chain model to promote high-quality development.

Q: About the benefits of the group and the investment of new business. The current global environment is still uncertain. The group is also accelerating the development of overseas and domestic business. I would like to ask the management to balance the growth and benefit rate of the group. What is the estimated size of the investment of new business in 2026?

A: Long-term confident in business development; investment in new business: JD Food Delivery investment expected to decrease in 2026 compared to 2025 if industry competition rational; international business to gradually increase investment on controlled scale; Jinxi to increase investment slightly with expected SUE improvement.

Q: About the overseas business. Can management share some updates on this economy acquisition progress timeline and the impact on financials post-consolidation? From the strategic angle, how would Joy Buy position and what kind of benefit or synergy should be expected from the group level, i.e. JD Retail, Logistics, and the whole supply chain point of view?

A: Seconomy deal under regulatory review, will update progress; JoyBuy in Europe to launch in March, supply chain building long process; synergies include helping Chinese brands global, strengthening global supply chain, reinforcing JoyBuy's competitive edge via retail-logistics synergy, empowering international business via JD technology.

Q: About the retail. Consider that the growth prospect of retail this year may slow down. Please, management, how will the growth of revenue in the general merchandise category be expected? And in the context of the slow consumption of competitive furniture, how will JD achieve a faster growth in this category? And what specific X1 advantages can support the continuous growth of this category of sales?

A: General merchandise category to maintain healthy growth; growth drivers include huge market potential, user growth from new business, strengthened supply chain capability; differentiated advantage includes JD1P model, JD Logistics' high-quality fulfillment, JD as premier destination for brand building.

Q: About authentic commerce. Can management share your thoughts on how JD might prepare and position to embrace the upcoming threats and opportunity from the authentic commerce?

A: See AI and authentic commerce as greater opportunity; core of retail business remains user experience, cost, efficiency; accelerate technology investment, apply AI in demand, supply, logistics, post-sales service; e.g., AI-driven search and recommendation, AI in supply chain operations, etc.

Q: About shareholders' return and regulatory environment for Internet platform companies. Can management share about the latest developments on shareholders' return? And can management talk about any changes to the regulatory environment for Internet platform companies and how should we think about it?

A: 2025 annual cash dividend $1.4 billion, repurchased $3 billion worth of shares; regulators promote healthy development of platform economy, welcome regulatory guidance, JD prioritizes compliant operation, rigorous oversight a catalyst for high-quality industry growth.