The analysts' conference call for JD's financial report for the third quarter of 2025 was held, with the management sharing the performance and discussing future plans. The meeting included speeches from the management, interpretation of financial data, and a question-and-answer session, emphasizing the company's insights into market trends and strategic deployment.

The financial report shows that in the third quarter, JD's total revenue increased by 15% year-on-year, with significant improvements in user base and engagement. The annual active users exceeded 700 million, and the gross profit margin of core retail business continued to expand. New businesses such as food delivery and Jingxi contributed to growth, and overall business ecosystem developed steadily.

In the third quarter, JD.com's retail revenue increased by 11% year-on-year, reaching 251 billion yuan. Among them, revenue from general merchandise category increased by 19%, while revenue from marketing and advertising increased by 24%. Despite the negative impact of the high base on electronic products and appliances category, JD.com continues to enhance user stickiness through optimizing the supply chain, product mix, and service quality. It is expected to continue to maintain a healthy growth momentum in the fourth quarter.

In the third quarter, JD's food delivery business achieved double-digit GMV growth, benefiting from an increase in order volume and the proportion of high-value orders, while operating losses narrowed and synergies with the retail business strengthened. Other new businesses such as JD Xiaomofang and international retail business are also advancing as planned, further expanding market and user base, optimizing user experience, and strengthening collaboration and integration among various businesses within the ecosystem.

The conversation shared the progress of AI technology applications in multiple fields, including the launch of new products like the all-in-one digital human assistant, industry-specific AI applications, and upgrading retail technology infrastructure, such as Joy Streamer, to achieve 24/7 AI customer service and handle a large number of inquiries. These achievements reflect the company's efforts in building a comprehensive AI ecosystem, as well as its firm pace in global expansion strategy, demonstrating the steady growth of core retail business and new businesses, indicating a prospect of sustainable high-quality growth.

The company's performance in the third quarter reported steady growth, with total revenue increasing by 15% year-on-year and core retail business achieving double-digit growth. While revenue from electronics and home appliances slightly slowed down due to a high base, it still performed steadily. Revenue from general merchandise saw significant growth, maintaining double-digit growth for four consecutive quarters, with supermarkets and fashion categories performing particularly well. The company is actively enhancing its supply chain advantage, optimizing user experience, controlling costs, improving efficiency, in order to consolidate its leading market position and drive long-term sustainable growth.

JD's overall performance in the third quarter was stable, with double-digit growth in core retail business and continuous expansion of gross profit margin, reaching 19.3%. Emerging businesses such as logistics, food delivery, and international business faced short-term investment pressures, but demonstrated healthy financial models and growth potential. The company emphasizes long-term strategy and is committed to achieving high-quality sustainable development through optimizing the supply chain, enhancing user experience, and technological innovation.

The management responded to inquiries about the impact of high base effect on JD's retail growth and profit margin changes in the second half of the year, emphasizing that although the government subsidy policy may bring short-term demand fluctuations, it will in the long run promote industry upgrading and high-quality growth. At the same time, they shared JD's strategy, investment pace, and planning for overseas markets, demonstrating the company's determination and layout for international expansion.

The conversation revolves around JD's increase in market share in the home appliances and 3C category markets, the strengthening of their supply chain capabilities, and the expansion of their international business. JD consolidates user mindshare through product innovation, price optimization, and service upgrades, continuously expanding their market share. At the same time, JD actively promotes internationalization strategy, already operating online retail business in several European countries, aiming to build a global efficient retail network and enhance user experience. Overall, JD combines sound financial discipline with healthy sustainable growth to achieve long-term business development.

The dialogue revolves around the long-term investment strategy and loss cycle of JD's takeaway business, emphasizing the enhancement of user experience through optimizing operational efficiency and supply chain innovation (such as the period kitchen model) to achieve sustainable business growth. At the same time, they discussed how to strengthen their competitive advantage in categories such as daily necessities, 3D health, and clothing by enriching product selection, improving quality, and price advantages, in order to enhance the market position of commercial super health and clothing categories.

Discussed the consecutive double-digit growth in product categories at JD.com for four quarters, emphasizing the growth potential of supermarket categories and the enhancement of JD Supermarket's competitiveness. At the same time, shared the synergies between the takeaway business and core retail, including user growth, increased activity, and conversion rate of new users. Finally, introduced the latest investments and progress in AI strategy at JD.com, as well as the positive impact of AI on new businesses and finances.

The dialogue discussed the strengthening of cross-category shopping behavior of takeout users in various categories, which not only attracts new users, but also increases the shopping frequency of existing users, injecting growth momentum into the various categories. At the same time, the takeout business has promoted the rapid development of instant delivery services, with a dedicated team established internally to monitor this progress. In the future, plans are to accelerate the synergy between takeout and core retail businesses in cross-category shopping and marketing, unearth more collaborative value, promote user growth, income increase, and efficiency optimization.

JD has built a complete AI capability system covering infrastructure, models, platforms, scenarios, and products, and plans to continue investing in the next three years with the goal of forming a trillion-scale AI ecosystem. At the JDD Conference, JD demonstrated its AI product line, including models, digital people, intelligent bodies, etc. Its differentiated advantages lie in the wide application in fields such as retail and logistics, providing AI tools for businesses to improve efficiency, launching intelligent search and recommendation functions to optimize shopping experience, and the large-scale application of logistics robots globally, aiming to reduce logistics costs, optimize user experience, and help partners improve efficiency.

The rapid development of the platform ecosystem was discussed, including the significant increase in the number of merchants and the positive impact of user feedback. It is expected that in the future, there will be a deeper focus on attracting merchants to industrial belts, optimizing platform infrastructure, improving merchant operational efficiency, and strengthening 3P user mindset, to achieve a win-win situation for the platform, merchants, and users. The platform ecosystem is seen as a key driver for long-term revenue and profit growth.

In the third quarter, JD's retail profit continued to grow steadily, mainly benefiting from the growth of commission and advertising revenue brought by the healthy development of the platform ecosystem, as well as the strengthening of self-operated supply chain capabilities and business cost reduction. The retail gross profit margin has steadily increased for 14 consecutive quarters. Category structure adjustment, especially the operational efficiency and profitability improvement of daily necessities and electronic products, has further driven profit growth. New business investments focus on supply chain capabilities, expanding service scope through layouts such as delivery services and international business, with the expectation that synergy with existing business will enhance overall efficiency and profits in the future. The long-term goal is to achieve a high single-digit profit margin.