Focus on Q3 2025 U.S. Stock Earnings Reports JD.com today released its financial results for the third quarter ended September 30, 2025: net revenue reached RMB 299.1 billion, up 14.9% year-over-year. Net income attributable to ordinary shareholders was RMB 5.3 billion, compared with RMB 11.7 billion in the same period of 2024. Non-GAAP net income attributable to ordinary shareholders was RMB 5.8 billion, versus RMB 13.2 billion in the prior-year quarter.

Following the earnings release, JD.com CEO Xu Ran and CFO Shan Su hosted an analyst conference call to discuss the results and answer questions.

Below is the transcript of the Q&A session:

**UBS Analyst Kenneth Fong**: My first question concerns the impact of national subsidies. As subsidies enter a high-base period in H2, how does management view growth for electronics categories and JD.com overall? Financially, if subsidy-driven demand slows, what effect will this have on JD Retail’s margins? My second question is about overseas markets. With ongoing M&A and the launch of Joybuy, could management elaborate on JD’s international strategy, investment pace, and plans?

**Xu Ran**: Indeed, since last year, national subsidies have significantly boosted consumer demand, particularly for home appliances and computers, driving noticeable sales growth. This has inevitably led to a high-base effect in the short term, which the market anticipated. While subsidies have caused temporary demand fluctuations, their deeper significance lies in accelerating industry upgrades—promoting innovation, smart features, and sustainability, which support high-quality growth.

During the subsidy period, JD.com actively supported policy implementation, further strengthening our market share and supply chain capabilities in appliances and 3C, especially in our direct sales model. These core strengths form the foundation of JD’s differentiated competitiveness and long-term growth. We will continue leveraging our advantages in product selection, pricing, and services, with the long-term goal of reinforcing customer loyalty and expanding market share.

Key initiatives include: - **Product Innovation**: Partnering with brands to launch customized products and drive upgrades. - **Pricing**: Optimizing costs and prices through economies of scale and supply chain efficiency. - **Services**: Enhancing omnichannel experiences, such as expanding offline presence for appliances and 3C—JD MALLs and flagship stores in top-tier cities, and specialized stores in lower-tier markets—along with integrated delivery-installation services.

By Q3, JD.com operated over 20 JD MALLs and 100+ flagship electronics stores nationwide.

Regarding margins, we remain committed to cost-effective offerings to sustain customer experience. Post-subsidy, JD will continue collaborating with brands to improve industrial efficiency and profitability through tailored solutions, supporting long-term margin improvements.

We are confident in maintaining market share gains in appliances and 3C, while diversifying growth drivers—including supermarkets, healthcare, fashion, and ad revenue—to fuel JD’s overall expansion.

Notably, user growth and purchase frequency remain robust. During Singles’ Day, order volume surged over 40% YoY, underpinning healthy revenue growth for 2026.

**On International Business**: Strategically, globalization is a top priority. As China’s largest retailer, JD aims to build a global retail network, delivering our premium shopping experience worldwide. Markets like Europe—the second-largest consumer electronics hub—offer significant potential for UX enhancements. We also aim to leverage China’s supply chain strengths to support local brands’ global expansion.

Operationally, unlike traditional cross-border e-commerce, JD focuses on localized models powered by our supply chain, partnering with global brands.

Progress-wise, Joybuy has begun pilot operations in the UK, France, Germany, and the Netherlands, marking a key milestone. We are refining product selection, logistics efficiency, and platform features, and welcome feedback from European investors and analysts.

The Ceconomy acquisition remains under regulatory review; updates will follow.

Investments will be disciplined, with dynamic adjustments to ensure sustainable growth. Overall, JD’s international spending is controlled and phased.

(Updates ongoing...)