...November 18, 2024 This report does not constitute a rating action. HONG KONG (S&P Global Ratings) Nov. 18, 2024--JD.com Inc.'s credit profile has moderately strengthened. This follows a better margin profile and consumer mindshare gains in the company's non-electronics and home appliance categories. Net cash position is solid at over Chinese renminbi (RMB) 100 billion. We will be watching revenue growth in electronics and home appliances products, which was weaker than we expected in the third quarter of 2024. Demand could also pull back in 2025 as the current round of government subsidy ends in December 2024. This will be a setback over the 12 months. Third-quarter revenue improved 5.1% year on year. Drivers were: (1) an 8% increase in the general merchandise category; and (2) a 2.7% improvement in the electronics and home appliance category, compared with a decline of 4.6% in the second quarter. The growth for the latter was, however, materially below the category increase, according...
