--- title: "JD.com (Minutes): Food delivery UE still hard to evaluate, average buyback price $37" description: "Below is the $JD.com(JD.US) Q1 2025 earnings call Minutes. For the Quick Interpretation of the earnings report, please refer to "Can 'National Subsidies' Save Face? Is JD.com Back in the Game?"" type: "topic" locale: "en" url: "https://longbridge.com/en/topics/29589513.md" published_at: "2025-05-13T14:42:05.000Z" author: "[Dolphin Research](https://longbridge.com/en/news/dolphin.md)" --- # JD.com (Minutes): Food delivery UE still hard to evaluate, average buyback price $37 **Below is the**$JD.com(JD.US) **Q1 2025 earnings call Minutes, for the Quick Interpretation of the earnings report, please refer to**[**《"State Subsidies" Save the Day, Is JD.com Back in the Game?》**](https://longportapp.cn/zh-CN/topics/29579583) **I. Key Earnings Highlights** 1\. $JD-SW(09618.HK) Shareholder Returns: Repurchased 80.7 million Class A ordinary shares (2.8% of outstanding shares) for $1.5 billion year-to-date as of earnings release. 2\. New Initiatives: JD Food Delivery, part of new business segments, scaled up from late Q1 with minimal financial impact. Its differentiated model gained recognition with solid user acquisition ROI. **Early results in user traffic and retention emerged by early Q2.** 3\. Cash Flow: Free cash flow at RMB38 billion (YoY decline tied to state subsidies and inventory buildup, partially offset by profit growth); total cash reserves reached RMB203 billion. 4\. Outlook: **Bullish on JD Retail's potential; aggressively expanding new businesses** to build ecosystem synergies. **II. Earnings Call Details** **2.1 Management Key Points** 1\. Overall Performance: Strong momentum continued from Q4 2024 into Q1 2025, with total revenue up 16% YoY, **outpacing physical retail and online sales growth**; non-GAAP net profit rose 43% to RMB12.8 billion (4.2% margin), with gross margin improving YoY for 12 consecutive quarters. 2\. Category Performance: Department store sales **projected to perform well annually.** 3\. User Metrics: Double-digit growth in active customers and purchase frequency; ARPU up in some segments. AI-driven after-sales and operational efficiencies to further drive growth. **4\. Low-Price Strategy for 3P Ecosystem:** a. Q1 saw notable success in low-price strategy—NPS and price competitiveness improved YoY/QoQ; lower-tier markets outperformed in order/user growth. b. 3P ecosystem expanded with more merchants/SKUs, driving 16% YoY growth in 3P orders/buyers and platform/marketing revenue. **5\. New Business Expansion:** **a. Food delivery—a strategic extension from core retail to instant commerce—now hits ~20M daily orders. Leveraging JD's logistics strengths, it integrates into the ecosystem to fuel synergistic growth.** b. Launched RMB200 billion "Export-to-Domestic" initiative in April to onboard manufacturers, enriching platform supply. c. Deploying AI/automation across demand/supply/fulfillment to optimize matching, warehouse efficiency, and cost solutions for 3P merchants. **2.2 Q&A** **Q: JD Food Delivery's 3-6 month and mid-term outlook? Industry landscape?** A: Instant commerce/food delivery naturally extends core retail, enhancing shopping scenarios. Food delivery—the highest-frequency segment—**is rooted in core retail, not standalone, and will drive synergies.** JD's brand trust accelerates user adoption, meeting safety/quality demands. Focus: user/merchant experience, scale, and AI. **Mid-term goal: strengthen ecosystem synergies and ops capabilities for sustained growth.** Zero-commission policy attracts merchants. China's food delivery market has room for multiple players. Unmet needs (e.g., food safety, fair commissions, rider benefits) align with JD's strengths. **Q: Apparel/department store strategies? H2 growth drivers?** A: **Apparel:** Expanding brand/merchant count; leveraging supply chain for "value-for-money" positioning. **Department Stores:** Five straight quarters of double-digit growth; synergizing with instant commerce/food delivery. **Users:** Active customers grew 20% YoY in Q1 (six quarters of double-digit growth). Focus: seamless cross-retail experiences. **Ecosystem:** Accelerating 3P growth via improved UX. **Q: JD Food Delivery's 20M daily orders—key metrics (retention, cross-sell)? Unit economics?** A: **Metrics:** Solid repurchase rates; **early cross-sell with supermarkets/lifestyle categories visible.** **Supply Side:** Merchants surged from 0 to 1M quickly; rider demand robust. **Strategy prioritizes long-term sustainability over short-term profits.** **Financial Impact:** **Too early to quantify unit economics/cross-sell synergies.** **Q: AI's role in ads/other segments?** A: **Ads:** LLMs boost ad conversion/agent tools for 1M+ merchants. **Other:** AI enhances demand matching (search/recommendations), merchant tools (pricing/procurement), and fulfillment (warehouse robots). **Q: 618 Strategy/Expectations?** A: **Timing:** Kickoff May 31 (pre-sale starts May 13). **First-time integration of state subsidies + food delivery subsidies.** **Promotions:** Tiered discounts + themed campaign days. **Merchant Support:** Auto-resource matching + ad incentives. **Outlook:** Confident in user/sales growth, backed by pro-consumption policies. **Q: Long-term double-digit growth + high-single-digit net margin feasible?** A: Yes, via: 1) UX upgrades (instant commerce/food delivery), 2) supply chain/logistics optimizations, and 3) 3P ecosystem growth. **High-single-digit net margin target unchanged.** **Q: Smartphone/appliance trends under trade-in policies?** A: Government stimulus fuels premiumization. **Strong Q2 momentum expected.** **Q: Share buyback update?** A: YTD: 80.7M shares (or 40.4M ADS) repurchased for $1.5B (2.8% of shares), avg. price **$37.18/ADS**. 2024 dividend: $1.44B ($1/ADS). **Disclosures:**[**Dolphin Research Disclaimer**](https://support.longbridge.global/topics/misc/dolphin-disclaimer) ### Related Stocks - [09618.HK - JD-SW](https://longbridge.com/en/quote/09618.HK.md) - [89618.HK - JD-SWR](https://longbridge.com/en/quote/89618.HK.md) - [JD.US - JD.com](https://longbridge.com/en/quote/JD.US.md) --- > **Disclaimer**: This article is for reference only and does not constitute any investment advice.