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JD.com(9618): revenue for the full year of 2025 reached RMB 1,309.1 billion, a year-on-year increase of 13.0%. However, profitability was significantly pressured, with net profit attributable to ordinary shareholders declining to RMB 19.6 billion from RMB 41.4 billion in 2024. Particularly in the fourth quarter, a significant increase in investment in new business strategies resulted in a net loss of RMB 2.7 billion, compared to a net profit of RMB 9.9 billion in the same period last year. Under non-GAAP accounting standards, net profit also shrank from RMB 47.8 billion to RMB 27 billion, reflecting the challenge of narrowing profits during the company's expansion. Looking ahead, management acknowledged that industry competition remains fierce and that the company will continue to improve operational efficiency through AI technology and steadily advance the official launch of overseas markets such as Joybuy in Europe. In summary, JD.com is in a strategic transformation period in 2025, attempting to strike a balance between the stability of its core business and the expansion of new businesses.
The "Support and Control measure" Monetary Policy Guidance
During the Two Sessions, People's Bank of China Governor Pan Gongsheng explicitly proposed a "support and control measure" monetary policy guidance, the core of which lies in precisely reshaping the industrial ecosystem through financial leverage. For strategic emerging industries and key projects of the 15th Five-Year Plan, the central bank will increase credit support; while for industries with overcapacity and vicious "involution," it will adopt a "control" approach, resolutely cutting off the funding chains of enterprises relying on low-price competition and loss-making expansion. This shift in macroeconomic strategy aims to release financial resources from inefficient production capacity and direct them towards leading enterprises with high technological barriers, essentially restoring industrial profit margins through supply-side financial reform. This not only effectively alleviates current deflationary concerns and boosts PPI levels but also reflects the policymakers' commitment to improving the quality of economic growth. Through this structural clearing, market expectations will improve the risk premium of Chinese assets, supporting the revaluation of high-quality leading stocks in the macroeconomic recovery path, laying a solid credit foundation for high-quality development in the next five years.
On Friday, Hong Kong Stock Connect saw a net outflow of HK$2.188 billion. Tencent Holdings (00700) saw the largest inflow at HK$2.26 billion, followed by Meituan-W (03690). Alibaba-W (09988) recorded the largest net outflow at HK$630 million, followed by SMIC (00981).
Hong Kong stock market fell in the morning, pressured by overseas stock markets. The HSI opened 681 points lower and later extended its losses to 851 points, closing down 656 points or 2.6% at 25,101. The HSCEI fell 157 points or 1.8% to 8,470, and the HSTECH fell 115 points or 2.3% to 4,832. Total turnove was HK$219.34bn. Airline stocks declined, with China Southern Airlines (1055) and Cathay Pacific (0293) falling 5.5% and 6% respectively, while China Eastern Airlines (0670) and Air China (0753) fell 7.1% and 7.8% respectively. Oil stocks PetroChina (0857) and CNOOC (0883) rose 3.6% and 7% respectively.
Source: KGI Investment Products and Solutions Department
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