• Total Revenue: RMB347 billion in Q4, up 13% year-on-year; RMB1.2 trillion for the full year 2024, up 7% year-on-year.
• Electronics and Home Appliances Revenue: Up 16% year-on-year in Q4; up 5% for the full year 2024.
• General Merchandise Revenue: Up 11% year-on-year in Q4; up 9% for the full year 2024.
• Supermarket Revenue: Double-digit year-on-year growth for both Q4 and the full year 2024.
• Service Revenue: Up 11% year-on-year in Q4; up 8% for the full year 2024.
• Gross Margin: 15.3% in Q4; 15.9% for the full year 2024, up 110 bps and 114 bps, respectively.
• Non-GAAP Net Margin: 3.3% in Q4; 4.1% for the full year 2024.
• Non-GAAP Net Profit: Increased by 34% year-on-year in Q4; 36% for the full year 2024.
• Free Cash Flow: RMB44 billion for the full year 2024.
• Cash and Cash Equivalents: RMB241 billion by the end of Q4.
• Annual Dividend: USD0.5 per ordinary share or USD1 per ADS, a 32% year-on-year increase.
• Share Repurchase: 255 million Class A ordinary shares in 2024, equivalent to 128 million ADS.

• Warning! GuruFocus has detected 4 Warning Signs with DLAKF.

Release Date: March 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• JD.com Inc (NASDAQ:JD) reported strong double-digit growth in Q4 2024, with revenues from electronics and home appliances increasing by 16% year-on-year.
• The company achieved a non-GAAP net margin of 4.1% for the full year 2024, reflecting steady profitability expansion.
• JD.com Inc (NASDAQ:JD) saw robust growth in its general merchandise category, with supermarket revenues experiencing double-digit growth for four consecutive quarters.
• The company has been proactive in adopting AI and industrial robotics to enhance operational efficiency and reduce costs.
• JD.com Inc (NASDAQ:JD) returned significant value to shareholders through an increased annual dividend and a substantial share buyback program, reflecting confidence in its long-term success.

Negative Points

• The new business segment saw a year-on-year revenue decline of 31% in Q4 2024, largely due to adjustments in the Jingxi business.
• Despite strong growth in many areas, the company faces challenges in maintaining momentum in the electronics and home appliances category due to a high base effect from government stimulus policies.
• JD.com Inc (NASDAQ:JD) is still in the early stages of exploring on-demand retail and food delivery, which may require significant investment and could impact short-term profitability.
• The company acknowledges challenges in the macroeconomic environment, which could affect consumer sentiment and spending in the short term.
• There is a need for continued investment in fulfillment network optimization to improve profitability in the supermarket category.

Q & A Highlights

Q: How should we think about JD's growth drivers over this year and next year, especially beyond electronics and appliances? What are the investment priorities for the supermarket category? A: Xu Ran, CEO, explained that JD achieved solid double-digit growth across major categories in 2024, driven by long-term investments in user experience, cost, and efficiency. In 2025, JD plans to leverage supply chain efficiency and superior customer service to boost growth, particularly in general merchandise, user experience, and platform ecosystem. The supermarket category will focus on improving operational capabilities and supply chain efficiency to provide users with more value-for-money products.

Q: Can management share the strategy and scale of investment in new initiatives like fashion and instant retail? How will these affect growth and profitability? A: Ian Su Shan, CFO, stated that JD's investments focus on supply chain capabilities and user experience, aiming to scale up business and improve efficiency. For established categories like electronics, JD will optimize supply chain efficiency for steady profit improvement. In new businesses like on-demand retail, JD is exploring differentiated models and enriching high-quality supplies, with a focus on ROI and financial discipline.

Q: What is JD's strategy on AI, and how is it being deployed to enhance business operations? A: Xu Ran, CEO, highlighted that JD actively adopts AI across various business scenarios to drive innovation and efficiency. AI is used to enhance user experience through improved search and recommendations, provide tools for merchants, and optimize supply chain management. JD is integrating AI into daily workflows to boost efficiency and reduce costs, with AI playing an increasingly important role in operations.

Q: How should we think about the growth rate for electronics versus general merchandise categories in 2025? A: Ian Su Shan, CFO, noted that JD has built strong user mindshare in both electronics and general merchandise. While electronics may face a high base impact, general merchandise is expected to sustain robust growth, driven by categories like supermarkets and fashion. JD's multiple growth drivers, including user base expansion and platform ecosystem development, will fuel long-term sustainable growth.

Q: Can you update us on JD's latest shareholder return progress and strategy? A: Ian Su Shan, CFO, reported that JD is committed to returning value to shareholders through dividends and buybacks. In 2024, JD increased its annual dividend by 32% and repurchased 8.1% of outstanding shares. In 2025, JD plans to continue its USD5 billion share buyback program and maintain its annual cash dividend policy, reflecting confidence in long-term development.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.