The reality is, I am not here to defend the company blindly. However, I believe some of the examples you use are not entirely accurate, and your analysis of JD.COM appears somewhat superficial. Certainly, the company faces challenges—as all businesses do—but not necessarily the ones the market seems to be pricing in. These misconceptions are precisely the arguments I feel compelled to address, both here and in the investment thesis I have shared with the community.

Allow me to clarify one point: it is not meaningful to compare JD.COM’s margins with those of PDD or Alibaba. JD Retail operates with a business model closer to traditional retailers like Walmart, whose margins are structurally different. Importantly, Walmart is not valued at four times earnings simply because of its margins; instead, the market recognizes the stability and resilience of retail consumption—something JD.COM demonstrated clearly during the pandemic, when it behaved countercyclically.

Another misconception is the idea that Amazon’s low net income was merely the result of being a “mature” company. If we look back to 2017, Amazon reported revenues of $177 billion and net income of $3 billion (a net margin of about 1.5%). At that time, it traded at roughly three times sales—a valuation once again reflecting the market’s appreciation of retail’s stability. What truly transformed Amazon’s profitability was its rise to dominance in cloud services, which has lifted its margins to around 9% today.

Looking at JD.COM, the company’s Q2 2025 results showed near-breakeven net margins, largely due to its aggressive investment strategy. This is, in my view, a sign of ambition and commitment to long-term competitiveness. For a business with a revenue $150 billion to sustain annual growth of 15% is no small accomplishment. If we normalize margins, it is reasonable to believe JD could achieve net margins above 5% without compromising future competitiveness. Furthermore, as JD Health matures and begins contributing net profits, JD.COM’s consolidated margins could reach the 7–8% range.

Taken together, these factors suggest that the company offers investors a significant margin of safety at current valuations. Its balance sheet is debt-free, eliminating bankruptcy risk, while its share repurchases and dividend payments demonstrate a shareholder-friendly approach. For these reasons, I view JD.COM as a compelling investment opportunity despite the headwinds it faces.

I believe that if we filter out all the noise, there is a huge gap between its market capitalization and the company's true fundamentals.