Q3 2022 JD.Com Inc Earnings Call

Hello, and thank you for standing by for JD Com's third quarter 2022 earnings Conference call.

At this time, all participants are in listen only mode.

After managements prepared remarks, there will be a question and answer session.

Today's conference is being recorded.

You have any objections you may disconnect at this time.

I would now like to turn it over to your host for today's conference Sean Zhang. Please go ahead.

Oh.

Thank you Rocco.

Good evening and good day, everyone and welcome to TD they'll come third quarter 2022 earnings conference call.

Today's call CEO of JD com, Mr. Li she will kick off with opening remarks.

CFO instant issue will discuss the financial results.

After that well open the call to questions from analysts.

I would like to remind you that during this call our comments and responses to your questions reflect management's views as of today only.

We will include forward looking statements.

Please refer to <unk> Safe Harbor statements in the earnings press release on our website, which applies to this call.

We will discuss certain non-GAAP financial measures. Please also refer to the reconciliation.

<unk> non-GAAP metrics to the comparable GAAP measures in the earnings press release.

Also please note that unless otherwise stated all figures mentioned in this call RMB.

With that I will turn the call over to Mr. <unk>, our CEO Chad.

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Hello, everyone.

Thank you for joining <unk> third quarter earnings call.

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2022.

We are still as challenging.

Yeah, both momentum and as charter rates, we have two nationwide coverage research and challenging macro conditions flattish consumption demand as well as supply chain disruption.

Based on the complex dynamics JD has been making full use of all their supply chain capability and in Brazil its business model.

Yes.

I have to provide the best possible service to customers. There is outrageous and start with the real economy participants well at the same time delivering steady business growth.

Moreover, we are delighted to see substantial improvement in our growth quality this year, given the evolving economic and industry environment.

Getting savings.

Saving mode pre empted position to focus on our core business as well.

A very important quality operations management and.

Had some great importance to business. We believe this is the faster way to maintain operating stability in terms of external stress and ensure rapid rejuvenation wildly when the economy recovers.

The results along with our battery business growth we have.

I'll start feeling better operating quality.

Stability and profitability.

Validates what we have communicated with investors many times before about the potential for margin improvement in our unique business model. It also gives us a solid foundation for sustainable development.

As different economic cycles.

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And what kind of 100 viewpoint.

We welcome and support the governments recent move to further optimize conduct controlled measured with more science based and are targeted approach with this it's important to contain the virus spread.

And maintaining the stability of economic and social development.

They're also supporting preferences for companies like <unk> that play an indispensable part in supporting the industrial and People's level of inquiry.

When they are fully cooperate and implement the ophthalmic is relevant positions and arrangements. It is true that current conditions will continue to pose challenges to the economy and consumption in the near term that said we remain confident in the continued refinement of the Companys control measures.

Building off the Chinese economy, and the long term prospects of the consumption market here we are.

You'll see growth opportunities and make sure all the commentary.

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As we make for active adjustment and focus on the policy.

Oh, absolutely softer retail treatment center on our core competency and business model, namely customer experience cost optimization and operational efficiency.

Roundhouse business philosophy.

We're continuing to achieve the growth programs can be tricky.

My smartphone and supply chain efficiencies in Q3.

The user base.

<unk> hundred 88 million, mainly driven by the net addition of over 10 million active users on our core inflation.

I mean.

After the quarter the double digit growth. In addition to user base expansion. We also saw a better infrastructure and user quality in particular, both the number of users and cross numbers delivered higher growth rate.

Then other groups of users and made up a larger proportion of total VSAT.

This helped to drive increases in average shopping frequency and alcohol.

For plus members along with the scale expansion. We also saw that each of them on average spend over eight times as much.

<unk> plus member demonstrating a high degree of loyalty and engagement and the purchasing power during the latest Singles' day Grand promotion.

Highlighting the drafting of the effectiveness and value for money, which helped us to onboard an increasing number of high quality merchants and the.

<unk> achieved a solid growth with a meaningful increase in the number of shopping to Houston and a record number of participating merchants.

Merchant and offline doing in addition, the promotion ultra boost gauge growth well known agricultural households, Andrew Army.

10000 after years of agricultural products.

100000, RMB J.

<unk> is committed to promoting the virtuous cycle.

Revitalization.

The selection of high quality agricultural products to consumption upgrade to interest income performance. During the promotion. We are also proud to see that over 500 million users clicked. The basket price guarantee program in App and after sales service that JD has provided comment yes.

This reflects steady supply chain capability and showcases our commitment to providing the best possible user experience how can we take to feel reassured at all times when they shop on our platform.

Service has become a hallmark of JD premium user experience and also pushes the boundaries of what the industry can do to enhance user experience.

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The continuous improvement of operating quality also lays a solid foundation for us to make further progress on our long term strategy, namely our online marketplace ecosystem, omnichannel businesses and supply chain capability to empower their economy.

Online marketplace ecosystem make solid progress.

Since the number of third party merchants recording over 20% year on year growth.

For the seventh quarter.

Okay.

And outdoor category.

Performed in the Napoli.

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More than half of it actually.

Actual brand spanking steady has been on the sensor platform to establish and all of that partnership with the nine luxury brands enter the <unk> group a collection of fashion cosmetic and sportswear brand also joined JV in Q3, such as Christian Louboutin, the priory and Lululemon for their spending.

One thing and ambition of our supermarket business, Jamie Super continuing to rollout is national surveillance program, providing consumers high quality specialty products, notably in addition to the 17 national prevailing it's already in operation. We've all come to nearly 20 countries to open down nationally available centrally dot com.

In the light latest Singles' day Grand promotion, although now getting it.

Pancake, it's to build an online marketplace ecosystem, where Memphis can thrive with lower entry barriers and operating costs better traffic allocation in the marketplace as well as higher operating efficiency driven by the fact opportunities supply chain logistics and technical capabilities.

All of these efforts have contributed to a sustainable growth of merchant in SME in times of uncertainty during the latest promotion mentioned kind of a platform. It's wanted a stellar performance.

Higher sales contribution both on a year on year basis, and compared to 6008 Grand promotion.

<unk> hundred $3 total until you are with that.

Thank you to all parts of our customer funnel shuttle.

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It is omnichannel intrastate business maintained strong momentum in Q3 in particular shop now our one hour delivery service recorded a triple digit year on year T&D.

Services covering the vast majority of supermarket chains in China shop, now have sports to close collaboration with brands and offline doing on generating incremental growth through omnichannel for brick and mortar partners. During the latest promotion as the only on demand radio platform selected by Apple for the <unk>.

Sales of new iPhone 14 seer.

Can you detail, what together with shop now and so hundreds of thousands of new iPhone models, making at that point when new iPhone sales using anthem on the retail model. In addition to the DJ and shop now also partners with over 200000 offline stores during the latest promotion cover.

During a wide range of categories, such as supermarkets mobile phones, and electronics cosmetics home goods baby and maternal and Pat and provided our new delivery services in over 1800 cities and countries.

<unk> also had some unfortunate news in a homogeneous exclusive ASI, that's yet you won't need to file a cleaner energy.

Bundles, yet she's on shipments that you free up quite.

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Michelle I think materially yes.

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Congress Rollouts hold what you sell it you guys are finding the audio of the T cell subsets of <unk> today.

We see this as a demo will hung <unk> decided at this juncture pogrebnyak Gabriele.

Unfortunately, some challenging will it.

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So if you take one trillion saw that jump in Brazil.

Despite the challenging environment given the logistics continued to provide I think downstream industry partnering with reliable integrated supply chain solution supporting Andrew cause customers to market rates respond to rapid external tangents and optimize cost and efficiency.

Three city are also expanding the depth and breadth of collaboration with a variety of leading players in FMC Chi home appliance furniture apparel, brinci automobile and fresh produce industry. As a result, they maintained a resilient revenue growth in this quarter, notably both.

The number of city as external customers and external revenue delivered double digit year on year growth with a letter with the largest contributing nearly 70% of its total revenues in Q3.

They are continuing to expand its logistics infrastructure around the world.

The end of Q3 our.

Operating in over 1500 warehouses with an aggregate gross floor area of over 13 million square meters.

It is also worth highlighting that JD logistic airlines and affiliates of JD logistics commenced operation in Q3.

The future JD logistic Airlines can't MTV, our integrated supply chain services, and help drive lower cost and higher efficiency along the supply chain.

Great.

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Sheila should know.

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$2 two quite bullish so don't jam through full sheet seems like as you entered this year you won't see in the late quarter makes you can hear me now.

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For quite a while the chapter.

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Can you just.

Conclude.

<unk> external environment. This year building had a foresight to double down on operating quality and the court.

This has enabled us to constantly deliver high single digit growth generate healthy margins and cash flow and accumulate strength long term developments down the mountain as I mentioned last quarter as we navigate through the cyclical economic adjustment.

Short term challenge.

We've got to see the momentum.

And the tremendous growth opportunities ahead of us as a company that has to do something.

Economy Didnt support the expansion of the demand side and the structural reform of the supply side in China, how can the mail economy to achieve better quality and sustainable growth looking ahead.

All established a supply chain infrastructure technical capability and the social responsibility. We are committed to will enable us to play a more important role in China's new development.

We believe that only through unveiling the determination and the purchase even candidly about through the town.

I'd like to give the floor to sandy.

And Hello, everyone.

Many of you confused here on the ground the COVID-19 situation evolving and they add complexity to consumer sentiment and the outpatient environment from time to time. Nevertheless.

Third quarter, we recorded a backup improving metrics and <unk>.

Carrington milestones across our financial system.

<unk>.

Our solid food thoughts in the quarter demonstrated our ability to cope with difficulty kind of dynamics.

Improving our core competences.

So part a more sustainable growth trajectory going forward.

In the third quarter, our net revenue grew by 11% year on year to 244 billion RMB.

Turning to our healthy check.

We navigated through a challenging time impacted by college researching and macro uncertainty.

Our annual active user base.

Returned to growth and reached 588 million in total.

A net addition of seven five leading customers sequentially.

Apache attack into our turnkey business adjustments.

More encouragingly, we saw more customers hanging with us for a longer time and average spending per customer has been consistently increasing as well.

All of this in cooking.

It depends of the engagements and enhance customer trials.

Clicking down does that mean you might hope.

<unk> revenues were up 6% year on year, a recovery compared to 3% year on year costs in Q2.

Revenues grew by 42% year on year to $46 5 billion IMT.

Given our historic high of 19% of total net revenue.

Logistics and other services revenues grew by 73% down here in Q3.

The consolidation in fact up to par.

<unk> delivered a year on year growth rate of 36%.

The momentum from Q2.

I will elaborate more on the underlying Tyler later.

<unk> placed on the marketing revenue grew by 13% year on year up 1% year on year growth in Q2.

In order to drive recovery.

So merchants, becoming more active again and in basket additional advertising packet on our platform.

It's helped to accelerate our advertising revenue growth.

Also thanks to our relentless focus on improving the eclipse ecosystem with.

We successfully on boarded and increasing number of merchants onto our platform, including a few notable wins in the apparel category.

This brought our merchant base to new Heights.

A solid foundation for our opening.

Now, let's turn to our segment performance.

<unk> retail maintained solid topline calls with a healthier business mix and our continued margin improvement a year on year basis.

CTV revenue reached 412 billion R&D in Q3.

Growing at a solid 7% year on year.

Panic and home appliance category, they turned to try an impressive 8% year on year growth.

From flat growth in Q2.

During the quarter.

Out of our supply chain capability and strong consumer mindshare with sweet swiftly match, the demand spike well air conditioners.

Due to the unusual weather pattern.

Driving double digit revenue growth in the home appliance category.

Meanwhile, the launch of the mobile phone models in September helped to lift consumer demand.

General merchandise revenue was up 3% younger than in Q3.

Covid situation out Michael continue to dampen.

And consumer discretionary products.

Such as cosmetics.

Operator, and partially contributes to the South Dakota General merchandise.

Meanwhile, we start with a proactively optimized our product mix.

Particularly in the supermarket tetbury to improve operating efficiency and profitability.

With respect to impact this growth rate, but traditionally carry.

However, we believe it is important to stay focused on our core categories and capabilities.

To establish a healthier and more sustainable growth trajectory with a long time.

That's that.

Other emerging categories.

Such as health care home could pass and Boston all the outdoor we continued to experience double digit topline growth in the quarter.

It means changing our pending user mindshare across a wide range of peptides.

We are thinking of this out of our business optimization savings.

<unk> fulfilled gross margin was up 80 basis points compared to the same quarter last year.

Mainly driven by our optimization efforts and the improving economies of scale.

So as we continue to expand gross margin.

The pet grade and remained disciplined in OPEC.

Retail operating margin was up 115 basis points.

Year over year basis.

252% in Q2 Q3.

About the 30% Mark for the first time since the founding of the company.

Peter Logistics OTT al maintained a solid top line growth in Q3 and has achieved breakeven for two quarters ago.

They do logistics revenue grew by 39% year on year, 2016, and RMB, partially because <unk> acquired matan.

Metallic if they came to pong, which was consolidated since the end of July .

Putting the impact from the consolidation of the Palm Beach House revenues were up 16% year on year, mainly driven by the resilient growth in revenues from external customers, which also saw acceleration on a sequential basis.

As a result revenue from external customers once again achieved record high revenue contribution of nearly 70%.

Encouragingly as busy hour relentlessly focused on improving customer mix optimizing operations and realizing the economies of scale.

<unk> margin was up 350 basis points from a years ago.

0.7%, yeah seasonally low quarter.

This report demonstrates <unk> ability to maintain a resilient growth even in a challenging environment well remain well on track of improving its profitability.

That has reported revenue of $2 4 billion of IMTT and its operating loss narrowed sequentially to 300 million RMB.

That are continued to work closely with both internal and external partners.

Please.

Super our supermarket business within 30 retail has been collaborating with the barbell to broaden product portfolio that offers interactive on demand retail services.

The shop now service to consumers.

The two positives can lethal in Q3.

This initiative also contributed positively to the margin of supermarket textbook.

<unk> also established a collaboration with a variety of external brands.

For example at all.

Now has been expanded instant delivery services to the coffee and the beverage category, which is now available in over 2015.

And countless nationwide.

So you can see with a broader spectrum of use cases, all certified by the <unk> is in a much better position to serve our customers anytime anywhere.

Finally, as I shared in the last quarter, we continued to pursue rational development across our new business segment.

<unk> reported revenue of.

5 billion RMB and operating profit of 218 million RMB with a positive operating margin in the quarter.

This was mainly due to the gain from the first tranche closing a sticky properties third property croissants in Q3 and to the narrowing loss contingency business.

As Debbie property has a well proven business model with total transferred.

Surpassing 2017 in RMB.

We remain committed to further expansion in this business in.

In line with our prudent investment philosophy.

In the face of the complex macro condition.

Demand domestically and internationally, we have also been pursuing strategically alignment.

Other non core business.

Such as the turnkey business.

These measures resulted in a more moderate revenue growth.

Continued to narrow the operating loss sequentially, even after excluding the gain from the property.

Moving to the consolidated bottom line.

We proactively adopted measures to focus on our core businesses and improve operating efficiency.

Our bottom line reached a new milestone in Q3.

non-GAAP net income attributable to ordinary shareholders surpassed the 10 billion RMB Marc for a single quarter for the first time in history now.

non-GAAP net margin was four 1% representing an impressive year on year improvement of 180 basis points and reached a historic high.

GAAP basis net.

Net income attributable to ordinary shareholders also improved to 16 and RMB with GAAP net margin of two 4%.

Our free cash flow for the trailing 12 months. This quarter was $25 8 billion R&D. This was mainly driven by our improving operating cash flow were all partially offset by an increase the capex in our infrastructure pension that would position us well for the future calls.

At the end of Q3 cash and cash equivalents.

Cash and short term investments added up to a total of 218 feeling RMB.

From 217, RMP last quarter.

To close my remark.

Solid back half Q3 results demonstrated steady business resilience in the face of rapidly evolving macro condition.

There may be no better time than now to review the progress across our business initiatives and make positive changes where needed.

We believe it's vital.

Actually in a time of uncertainty to stay focused on delivering better operating efficiency lower cost and best in class user experience, which represents the essence of the retail business and the pace of all capacity longtime suppressed.

Our focus on building a resilient business means that we are well positioned to help our users such as promised to cope with external challenges and make meaningful contributions to the society.

All of these factors will make sure we are well prepared to benefit the next phase of great growth opportunity.

Which we believe wont be too far ahead.

With that let's open the call to the Q&A. Thank you.

Thank you our question and answer session.

This call will start in a moment.

To ask a question. Please press Star then.

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Two.

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Again after your first question has been addressed.

Today's first question comes from Ronald.

Please go ahead.

Hey, Ccs lethal and Sandy Sean Crunchy Sandy locations 17 deliberate now.

Cynthia Dwyer and Youll see that.

<unk> <unk>.

Finally, some way right.

Quick how did 2000 that she has seen the tundra.

<unk>.

Conducting dumping short they've been harsher.

<unk>.

Nah attention lever new tonnage.

Yes.

Q3.

Do it off line.

Sure Yes.

The data shows let Jim comment.

Thank you Scott, Thank you Sandy and Sean and congratulations on the strong third quarter results.

Want to ask about the investment phase and next growth drivers as we can see from the third quarter that logistics that are new businesses that no longer dragging.

The group, earning so where were you thinking on mix investments in growth areas and then within JD logistics, we have seen that the general merchandise supermarket growth had moderated while margin level for JD retail reached a new high so heading into next year, how are we thinking about balancing growth price advantage and stable.

Thank you.

Yeah.

Okay.

Whatever that revenue essentially is a single studio we annualize each of my own.

So we are on a year earlier.

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Yes.

<unk> taken when we the timing geography, if anything got a financial point of view.

T shirt kilometer managers with glucose redemption shooting there.

And this is Jay let me answer the question by sharing with you our long term.

Philosophy to do business. This has remained unchanged.

For 17 and for the 19 years of JD Com, we're always.

Great importance to the user's experience and the cost and efficiency no matter, what kind of quotes and new business. We do we will speak to this three point and in terms of our two customer businesses will attach great importance to the quality of our products and prices and good prices and <unk>.

Mhm services from many of our investors know this is very difficult to always speak to this.

Philosophies in concept to a 19 years of JV development.

Hmm.

Youll see a pattern that you guys are key elements without a <unk> woman.

Season, returning $200 to drop.

Yes.

<unk> and <unk>.

Can you share Brooklyn amendments from politicians lagging the tundra.

However, it should be.

Operator charge, an extra 800 T shirt the highly attractive.

Yes.

And in terms of for some changes this year I'm gonna stay back should we make more of a concentration in forecast on our core business and this is based on our analysis early this year and we have made some proactive measures according to our.

Early analysis, which to date, we think it's a very timely adjustments we have made and also taking the lead in action among this industry.

<unk> cutting their own three children that sure.

Q1 <unk>.

Appreciate your ownership.

You guys laid out.

So how do you think that.

Actuarial fulfill the T cells into the tissue some food shedding that sure he will fulfill the tissue on the critical path. There is what do you get international conglomerate.

Joseph mission level.

The current assumption that she can shop.

Uh huh.

Our continued growth.

Uh huh.

How do you view the solar PV.

That posture.

Sure.

Hi, Shar.

Hello.

And we are certain that even though many enterprises are facing challenges, we do see a brighter future and there is some obvious signs and the economic recovery.

Even though the sign it's very clear, but we are still not very clear about how fast the speed of the recovery from the management perspective, what we want to do is that we stick to our current strategy and we should have a very clear view on the future in terms of which direction and what will be changing in this industry.

In this market and how strong is this momentum there was to make our it resources investment in them and.

In a more clear.

Hey.

So as you know we sold outside of the hardware.

<unk>.

Yes.

So that value.

Okay.

<unk> 200 millimeter cuso charters at half.

Come on some tax withholdings.

To ensure the citizenry of which means that in Denmark.

And in terms of the strategies for JD retail will continue to stick to the Singapore strategies, which are the building of the supply chain capabilities and expansion into the lower tier market and building an open ecosystem and the intra city retail we will stick to the sport.

<unk> is our southern alternate option there.

Thank you.

We do the assembly.

<unk> Shah.

Going into each million dwt.

So you see how much of the Gogo by geography.

Uh huh.

Undue lever, let's say adoption later.

Lena Junior English only.

Okay.

Bondholders in quarter that has gotten a simple even talk all about leadership.

So the Eagle Ford.

Yes.

Without.

I want to dial in the hydro off the book.

Secondary from Asia from shareholders.

Okay.

And in terms of the supermarket business and these are mainly affected by the COVID-19 resurgence in its growth is ongoing in the foundry whoever it is.

And finally, our progress is made in this category, including is helping profitability.

Our ability to manage.

Categories.

It's overall productivity Super users.

For over seven accounts for 50% of the overall TV com platform.

We are confident for the future growth of this category and so we have to make some new experiments in this category for a lot of interest and lower to your market expansion. This quarter. Thank you.

Okay.

Thank you and our next question comes from Thomas Chong of Jefferies. Please go ahead.

One on.

<unk> what are you going to issue why you.

Okay.

Sorry about that.

Can you give us some money.

Funny challenge. It goes so it really is a stoppage of this industry.

Somehow third parties on that.

Yeah.

And you can see.

<unk> Hi E.

Maybe you can guide to what should be J J. Thank you.

Bill.

<unk>.

Occupancy juncture.

When you die.

Thank you Jane.

<unk> made some seats at the end quite choppy.

We'll see how she got the pick <unk> mix.

Thanks management for taking my questions and congratulations on a very solid sweatshop results. My first question is about the logistics disruption due to the pandemic.

Recently, how should we think about impact consumer sentiment.

User experience and how should we think about the short term impact to Gms and revenue momentum and my second question is about.

The latest.

Product category trend across smartphones consumer electronics FMC G in apparel. Thank you.

Okay.

Loan portfolio growth.

Gina Philadelphia easily you can sell in English or an.

Annualized state auto.

So maybe you can guide us.

So our opponents to ethane prices.

These are awesome Guy Lasalle timberland.

<unk>.

The teams are valued in total about you should see but you are saying that.

I think all those.

<unk> Sundar June quarter, Charlie, but I would think about neutrogena.

No the dynamic Vishal I'll take.

Total will ensure that as we kind of hard to predict.

In measured channels on initial.

Dakota.

And indeed as you pointed out that the logistic fulfillment has been severely impacted by our Congress situation actually in the past three years this year and most of half of your boxes I'm going to share with you Andrew to data here that in September to present.

In terms of hover logistic fulfillment.

Seven 2% from our customer home addresses have been affected by this cockpit control measures and this doesn't mean that it is a fact.

The order demand in our sales on JD and <unk>.

This is done once a year in terms of fulfillment.

So really it's all kind of clinical development.

Social video call yourself. Unfortunately.

And I think on the shop so sure.

But what I would also means higher.

Hi, Jake.

Early data how can the high end, it's yellow that's been doing business with you guys.

Without taking agile Sherwood mentioned <unk>, let's say the three that you mentioned once or more mango loco the already low tissue that <unk> sulfate.

As long as I'm here.

I mean, this deterioration in difficult situations that will affect our sales and fulfillment.

So I'm proud to share with you according to China's effort to build up some.

Service recently in terms of the service experiences JD logistics and number one among the industry reached once again validated our efforts made in our supply chain capability building to help us to stand up and gain consumers' trust in this difficult time.

Some are gives us obviously give us some view on what may come other sure.

You may have to come in 2000.

Employee before intended to show the.

<unk> yeah.

Adult.

So again, we're all in.

Whether youre putting that literature.

Yes.

Obviously, it's hard to think of us here.

I'm, assuming that and Nicole in timeshare attributes and coal trading and go over there you go.

<unk> <unk> laser.

Two the insurance exchange ratio go from an impairment with that either.

<unk> Delta compound.

And just also based on all of our data from the single State brand promotion, we do see a higher rate of order kind of.

Cancellations, it's a higher cancellation rates than the past few years because of the fulfillment difficulties I'm no longer waiting times. However, I want to emphasize here that people come to <unk> dot com for more flex shopping. So we believe the cancellation rate for this platform with more impulsive shopping where shopping based on there.

Interest the cancellation rate should be higher.

You might use for me is on the phase <unk> <unk>, 2%.

Yeah.

Whether it changes on a go.

Johanna.

So that's going to go what's yet to come.

As of June <unk>.

<unk> seen from the <unk>.

In contrast imaging had a good holiday.

And another group of people we have.

Attach great importance of our brand partners and merchants and based on J D.

And shopping features with Northland shopping and Premier shopping experiences and these can translate to the better operating costs into profitability for our merchants and brands and make us stand out among all the other e-commerce platforms.

Let me say this.

Please up to latest some clients some devoting element to them.

Unless it's out yet some yet John .

John .

<unk>.

You know South Dakota.

Yes.

And above all machines that made us pretty much Angela.

So it's really subscriptions in that market.

And in terms of the faster growing category.

In Q3, we've seen that home appliances, such group health sports and Pat.

We're doing a good job also including our shelf now serving the interest of the retail and Hong Kong.

Okay.

Besides the store.

Hum.

Police Atlanta.

We make long vessels, so Libya, so there'll be a lot of talk on that.

Kind of a higher dose would you understood <unk> fashion luxury the hardware and virtual edition.

In Chile, we believe again $2.

The hydrogen will go back down.

Darren automobile.

Hum.

We remain in the high school at Altamira sockets housing associations Union shop over long haul dark chocolate oncology.

Got it.

Intermodal corruption level, Neil first of all the easy elect more while maintaining upwardly each yet tons, increasing user level with the public.

So it was all because of.

<unk> total.

Non covered you mentioned Gulf Coast option later, Jim Hong Kong.

Fortunately government, Google that decision, Okay, So which is a key.

So that should make those at <unk>.

And so this last idea performing categories include cosmetics, and the mobile phone and <unk>.

But also we see vaccines September has some new phone models releases. The situation is getting better and this will continue in the lead up to Q4 and for the optical category. It's affected by the limitation shopping scenarios due to Harvey and also our baby and the mother category.

Thanks, a J.

Due to the reduced the newborn.

And.

There are many offers with your category on JD Com and we are regularly.

Using those loss, making categories to make dynamic adjustments to maintain health earnings across all categories and we have seen an improvement on this performance.

Great that's better satisfaction random.

<unk>.

Despite of all the off we see their market share continues to increase.

Oh sure.

Thank you.

This is Andy I can add more color on the short term it can be done with cash.

Hum.

She can just mentioned we are still facing some trucking challenges due to the Colgate control measures.

And also with yields of 20, new Hughes cutting.

We control policies to be very positive and constructive for the recovery of domestic supply chain.

And kind of our comfort zone, but it will take some time to go actually I see that's a positive impact on consumption data.

Given the current situation.

So in the short term, but we recommend analysts took a more conservative in multiple.

Top line performance.

But we are more confident in the long term strategies and across next year.

Specifically for <unk> retail.

Ah, yes, we see that the.

With hurricane of coverage to finish off that small regions in the country at this time.

And also I'm there are disruptions to logistics and fulfillment are resulting in a decrease in the successful procurement at Swiss on transformation.

I think increasingly order pencil all return rate.

Prior year.

So to the consumers also become more conservative on the rationale under the current macro environment.

In fact, the demand was good during the major promotion, but soft her before and after the promotion.

So far in Q4.

You see that in our different.

Different categories performed.

Differently, but in general.

But the essential telematics product performed stronger than that discretionary piece.

Got that.

In particular.

Our apparel and other discretionary products remain as Alex has been stopped.

So we are the management team is paying more attention to operating colleagues taking proactive.

Proactive initiative.

Making some structural adjustments to that you saw sub categories with heavy investments.

We still have some negative impact on a short term top line growth, but we believe it will I feel very good foundation for our long term pipeline.

Top line performance so with all these factors coffee that that trend will continue in Q4, but may slow down moderately from two things.

And then for.

Particular testing.

Hum.

Top line growth will be similar in Q3, Q2, Q3, and the internal revenue, where I can be affected by the decrease of the other stuff.

Yes.

And city logistics external revenue growth well.

I can tell you outpaced that helping tunnel revenue again in the fourth quarter the.

The problem with the consolidated at the end of July and you will come to the mall takes tunnel revenue in Q4.

Hum on the new business segment side.

So the revenue growth of participants there will still be a negative will be attacked for our overall revenue performance and international business typically has also being attacked.

To improve the operating efficiency.

And well our television properties and maintained a relatively high cost momentum.

Thank you.

Yeah.

Thank you your next question.

Our next question comes from Eddy Wang with Morgan Stanley . Please go ahead.

Shoot zone, and it's all Sean Gotcha.

You can see just how hot that even the beat.

What's your density issue when she jaw kitchen.

So that's only a $2 or so I'll take the.

From Honda.

So we will find some T J yourself at the Sup I should say.

Chip, we're treating all.

I wish somebody blew them features on the ground as the current dollar doesn't show up there good each have been to the pump.

Sure Youll have the tradition.

Yeah.

Sure. Thank you so much from home shopping them fairly sharply.

The woman.

Woman touching the shale that you can launch out to a choice here beyond the traditional tenders on Asia withheld.

Two are convinced about cobalt small woman woke up on me off which has been laid out.

It makes forming partnerships with other phobia.

I hope you're Gonna go once you deal with the kind of woman that you grow margin JD retail margin that you can qualify Alicia Chung that's got center.

What's allowed you to Google I mean, yes. It goes okay.

Such a chance you said there was one woman Youll Mayo clinic Mr. Shaw.

Take a margin that's got some cool.

So Jamie and Joshua Prime book.

Sure Jacob cutting them quickly.

So hopefully it will be John mentioned, all with one click away.

So a lot more like what you should do a good job, who don't get a lot of late.

I'll give yourself it puts a woman and build out the door that you got your top line at some time on our side.

Thank you management for taking my question. My question is that we have already witnessed in <unk>.

Positive signals in terms of the Colbert policy relaxation as well as the.

The potential re opening in early next year. So just want to hear your view that.

Uh huh.

Assuming that this opening will gradually start to happen in next year, what kind of preparation or people strategy.

Our strategy change.

Based on our currency strategy in this year.

And the follow up question is that we have seen very strong.

Margin improvement in terms of the JD retail business and the other vendors.

Assuming that there will be a very strong.

Each one of those consumption next year.

Are we able to achieve both.

Strong margin improvement together with the top pie recalibration or it will be a balance between the margin improvement.

And at the top line growth. Thank you.

Yeah.

Well look without being able to go in January .

Right.

Bob.

Oh.

So Richard altogether sure Philip.

The bulk of the Trillium attributable create trigger integrations back for that.

Type of vessels with long term growth.

Automation has required us to Cuba, Cuba portion.

Our entire portfolio.

On behalf of <unk> 2 million.

So you see again two questions just to cleanup at home in terms of trading though.

Sure.

Two key factors.

Legal was actually much Joel.

<unk> in the past.

Can you give a feel for that.

Sure.

The sofa teamwork Richardson Yoshihiko forgot treading water.

Shanda.

Hi, Omar.

You may recall that.

But between the two.

So beyond that.

The Atlanta, Georgia.

<unk> took a look at the number of clinical project fuel solutions.

When do the Cheniere with Honeywell.

Pat.

The Gina <unk>.

So uhm Greensville CAGR.

No.

<unk> <unk> <unk> and that's in the pipeline, but how.

How should come down from here you should not go in if we could draw tissue torture deal at Warner Media in fact, with the Michigan yet clearly.

Sure Liana.

Critical quarter for <unk>.

This isn't a new hard strategically where you will see them even further.

And let me answer the first question the first time user arent major business.

Correction, there are certainties and uncertainty.

70, <unk>. So we do see there's some new signals and we're getting ready for a good thing to come I believe that the worst of time has been part and we do receive some signals in some good information and factors for it.

I'm glad to future. However remains the question is random house DRAM. So these are the uncertainties, we are not quite sure how clients what's.

What's the time to recover overcome so Virginia dot com, we are such a.

Large companies covering the whole country from refers to fifth tier cities and we believe the recovery will come in in different formats and different times different group of people in different regions and this is all based on other communications with our brand partners. They all expressed to us their strategy to forecast.

Profit profit this year and this also coupled with their concerns on the supply chain impact.

Impact made final quickly law, so whether announce next year, they will focus more on profitability and the growth it's really hard to tell at this moment. So we will also make a dynamic.

Devaluation and to make the investment decisions.

And at the right time next year from this answered your question lumen are going to lag.

Mainly related to call it some flavor flavor texture as you move into <unk>.

Oh man you can comment there sure.

<unk>, yes.

Let me repeat the main etame.

Other options later on.

So your view on the revision shoulder season.

<unk> broad appeal.

Dr <unk>.

<unk> tried to get spoiled hung up afterwards.

Three shop.

<unk> Australia.

<unk> Angola, each a number of strategic advantages.

Thank you Natasha <unk> comment was a key special.

We actually have that Jonathan essentiality I'll jump out.

Welcome to you all.

In that neighborhood of Lendingtree.

These are major someone in Jan Feb resume.

New hope element of kind of our tissue portfolio.

Back to Michele.

So I'm glad you got higher Tidewater Sheldon Creed tissue.

Okay.

And on the profit I want to make a further explanations here for JV. It's a growth driver here. There are two main drivers one less so for the Oh, that's dropped her changes with a higher percentage of certain programs product their gross margins will be.

Improved steadily and also.

The increase in revenue from the services, we provide so throughout the years as you can let it didnt hear that all the companies are talking about lower the cost and improve efficiency and particularly to come this year, we forecast more lower the cost.

But to improve the ability for the internal management and I believe in last year and the year.

In the last two years, we will focus more on the improvement of the efficiency I can see there's many areas. We can continue to improve efficiency.

That's what I'm going to ask thank you.

Sandy at one time for test that our long term margin target heightened change.

Which is based on the industry level margin and the operating efficiency, we can generate through technology and the scale of our business operation.

If the consumer confidence is largely recovered.

We will add more investments to drive growth in <unk>.

Users and the market share however at the same time.

We're also gaining additional operating efficiency as Tom just mentioned due to scale benefits due to technology changes to that.

Increased distribution of our service income.

It is the beauty of our retail business.

Although we achieved a very important milestone for net income this quarter.

At the group level packs.

Annual basis, our margin is still below the industry level for almost all business segments.

We always.

So there's still room for us to continue to improve our bottom line performance.

<unk> always pursue sustainable growth.

And we will try to deliver stable margin with that improvement year over year and heal our long term margin targets. It's Mac.

Of course during that journey, we will make dynamic adjustments based on the market situation. Thank you.

Yeah.

Thank you and our next question today comes from Lisa.

Research. Please go ahead.

Can you tell me.

What's your sense of Landrum centrality of course, you can do that you can say for sure that that's how you do that do you guys see a great potential.

Well, it's even when he said when he talked to me so not much anytime soon even traditional child well.

They like country, that's usually because I can't quote you now have I been tripled total and this is also something of a child jokes.

The ERP project.

Well me a bunch of dollar should they thought that that means you got something done to ensure the GT cause she's easy simple Oh, what did you guys of Vinci cobalt pain patch, Jim don't actually the GT, especially to GBP. One question I'll, let you talk.

Well, thank you Sam.

Basically he's out from Este blocks research I'd like to congratulate the management team on the great results and thank you for taking my questions.

My first question is about on demand reach out what is the long term vision, we see an on demand retail market, an afterthought as integration what adjustments have been made and which Phil will be summarized it.

We all see the article by Mr. Shumate, though in People's Daily, which talks about promoting the deep integration of digital and real sectors of economy. My next question is could you. Please introduce jd's measures in these big trends. Thank you.

Okay.

In the search area with our thoughtful way you completely familiar with these antibiotics.

Okay.

Hi, Michael.

So I would say.

Sure.

Including Solange mentioned Jean.

Sure sure.

That's useful.

First of all women, you're assuming to get there.

Those are sort of picking up any sort of color that you.

I don't want liquidity or.

Puncture to be I think a year ago.

These are titled Chicago, Philadelphia measure to reduce phenomena.

132 million.

Israel.

<unk>.

Thank you for your question and I have shared a lot of the interest rate the interest rate ratio before and now I want to give you some update on your thoughts on the optimization. So first I want to say that what J D dot com to enter into the <unk>.

Interest in the retail business.

Purely based on the drive of the users.

Some opportunity business opportunities, we jumped in and it's based on the users' demand and we're looking at this business and our understanding is debate based on the perspective of supply chain I don't want to I think in other people's brain about how they think about inter city retail this is where we start.

Hmm.

The other was a woman can look with our shareholders.

It also provides younger viewers who are medical disorder <unk>.

Paul.

Sure Todd.

In the case of adults and children can lay down machines.

So to say take some coffee and again under the PNC carrier with a current yield of brokerage and T cell <unk> pivotal data that happens.

So, let's assume that Julia surcharge of hydro.

And in terms of the entry points different companies adopt a different dimension, Virginia Dot com, we entered this market.

Baidu, our relations with the big supermarket chains.

And in terms of the categories, we start squeezing of SBC and supermarket category and for other players they might start with some F&B story.

We are entering in different directions.

I gotcha.

Tim page answer or whatnot.

So women with some considerable assemblies for industrial and achieve better Yorkshire, England.

You mentioned that you can say the Yokohama Goldman Sachs Helane.

So down the corridor.

Sure.

They do the.

Bulk of that.

Michigan.

Total shop.

So I'm sure.

Two months ago.

Vehicles in concert with our material mill.

Well first of all the Douglas within a corridor Kimberly harsher your government paid up.

For that when we're getting to know each to Diego.

Thiago share shadow Suncorp, giving guests into loan selling Thunder.

Okay.

And Jim one shift.

And our our resources and our relationship with brand partners is one of the key strengths for us in this interesting.

Business and this has been based on our long time collaboration with over already existed between fee models, we have been collaborating with our brand partners in many many directions in many dimensions on the supply chain cooperation marketing and sales to the release of new products et cetera.

And altogether we are.

Forging Great Party.

Bringing situations among JD brand partners and to the offline supermarkets.

Well the new zebra.

You highlighted.

At GBP four per megawatt hour.

Sure I can answer that Joe.

Session at <unk>.

No.

In 2000, and cohort, that's usually who or how many you would put out there to go.

You guys, what your thoughts sure.

<unk> table.

And do the bubble viator.

Social too unusual.

While not other 40 to assure a woman ingalls should that come cheap.

The initial hurdle to seating so a phone there should the army SEDAR yesterday.

Another planet attitude toward tornado, Michelle neuro a measured pace.

Chavez will look like.

We'll pick it up <unk> Shoji single clinical licensing program to Tivo shown in yellow.

Let me make one example about the interest in <unk> retail cooperation with Apple as you know that in this September Apple released his iPhone 14 and.

A lot of our companies are taking this opportunity to do marketing and according to the data we collected on this market during the same period of time.

Daily Dot com and our interestingly our retailing business.

<unk> topped.

In terms of the sales and we.

We are seven to nine times.

Higher in terms of sales of iPhone <unk> theories as opposed to the second place visit the Renner App on a retailer platform. However, we did not want to brag about it because our starting point to do this collaboration is to provide more convenience for consumers to buy.

The new.

You'll see a ramp of iPhone and we believe the value to collaborate with the official retail on the official brand and to improve efficiency.

So Q4 will be.

Don will then 12% liquidity sustained on the 17th of Houston Lagoon, we're going right to the heart to bear.

Great.

Some cash under accrued yet for that.

Yeah.

You brought back.

Good conversion.

Sure.

Both core RPX.

From there.

No.

<unk>.

So to your margins yet.

Sure.

Hydro a brokerage chemical yes, we said it on the hull converted huh.

According to that Yehuda TNT deal during the quarter for culture trivial ESG Jake in Denver.

Got it.

<unk> symposium converter sequentially, though to quantify it yet.

And that's as opposed to traditional <unk> model based on interest rate ratio. It's a new type of supply chain. We're building there is still a big improvement room for us to improve such as users experience the synergies with one we have a brand partners. The L D assays to services.

And optimize the fulfillment and the transportation power improvement so.

And now we will focus on.

Several indicators for this business, including user experience than they purchase rates improvement.

The number of orders.

Et cetera. So.

Still we focus on the efficiency and experience to develop this business.

Going into $2 Goldman is considered within India, which was either local community history 12, Okay, even though energy in particular that you put in the core area.

Enrolment, putting up our own personal lending.

We're maintaining propulsion IC level.

From what we believe the Python, so food type of impairment.

Next high near Shanghai.

Yeah, the sugar progress against themselves.

But what you cannot.

She had gotten on the product.

And in terms of the integration with the real economy I want to share that.

38.

Building, a responsible supply chain and this does not only provide more stability and reliability of supply chain. We also opened ourself.

With this the capabilities to support our partners upstream and downstream to help in their digital transformation and improved cost and efficiency and to promote our high quality.

Ultimate development.

All of them will go in in a full investment bank top Barbour Josh.

Sure.

When a student demand.

Obviously rolled out yet.

2012.

Sure no attended by the Chiefs.

Good question that last year virtually.

Let's remember fool proving that accordingly to hire people with answers on the Indonesia will be active in Japan going into fall.

So J D.

Supply chain services, we are now serving over 80 million.

Now serving over 8 million active enterprise customers. This includes over 90% of global 500 companies, who operate in China, and nearly 70% of the so called a special license sophisticated Smes.

Also provide some specialized disappointing services to the manufacturing and.

Energy.

Yes.

No matter what.

I didn't get it from what I got.

Some of which we're sure doctoral level nursing home, India, Alicia I'm going to put out as well.

While filling in our reported bottom tick the social or Florida.

If our korlym.

I think you'll see linear you Kevin here, yes.

Our troops.

So you're going to work at the hit crucial.

Again, it could have a data.

From Chaco timber chairman to shop.

And the same time series of supply chain has been connected with our Maryland, south of our small and medium small stores across China and over 300 cities. There are many forms I want to just elaborate and we're not only provided a lots of mile solution on their sales and services, but also helping them on the first.

A mile off the supply chain in upstream this has been a very.

Effective support for them to drive more traffic and lower their cost and improve their business efficiency.

But again, if we don't put it in their history.

The issue is good the peaceful that clearly be with you Josh.

Thanks.

So we don't see that change out of the vehicle results. Yeah. So you don't have the June numbers are taking sort of a woman that.

Conditions.

Women with high inventories finished <unk> and their function.

That concludes <unk>.

But you are not seeing wholesale women's health.

Water quality systems.

Sure Matt.

Looking a bit I agenda, so, let's say if I'm in the economy.

You've heard of them.

Thanks, Scott <unk>, who will shake out in Ontario for the total portfolio.

And here I, just want to add that IDT telecom generating.

We generate to rational our profits and we are running based on a low cost and do we fully understand the difficulties for the Smes They work and they do their business in the offline scenario.

While we are doing in the supply chain support for them, we don't want to eat their profit we want to form our synergies with them and together, we build a rational profit.

It will not make us from other companies who are entering this slow while entering this offline market and generate ultra profits. This is not something I think rational.

Thank you.

It's the one that we're going to go.

I already know hurts your sales into consumer data for <unk> and more than I kind of home title English will tell you the country bundle.

<unk> console.

So.

With you guys when Youre Chevron Angola, each has for sale.

<unk>, maybe I'll use.

South, Florida, Florida with over one for Randy Jackson, you should each year, we're the leader.

So that sort of thing.

Cheers.

C level suite on a single dose of Womens hospital.

<unk> strategic, especially with regards to our collateral sustaining Greta.

Okay.

Lastly, I want to mention that since 2020 city had launched our usual revitalization initiative named.

Hi.

March two rates plan and this plan has driven tens of billions of industrial output.

And so helping middle income performance increase their income and are we are we do have confidence that well.

We set a goal to achieve trillions and run off of industrial output and this program usual areas within three years' time, and we can accomplish this ahead of schedule and so all of these on our understanding as a new type real economy company. However, we know we are not doing enough.

We are still improving ourselves improving our capabilities. However, this is to go with that and we will stick to it. Thank you.

Thank you.

We're approaching the end of the conference call.

I'll turn the call over to J D I'll call him, Sean Zhang for any closing remarks.

Thank you for joining us on our call today and for your questions.

If you have further questions. Please contact me and our team. We appreciate your interest in <unk> pivotal com as always and looking forward to talking to you next time.

Again, thank you.

Thank you for your participation in today's conference. This concludes the presentation you may now disconnect good day.

[music].

Yeah.

[music].

Sure.

Yes.

Okay.

[music].

Sure.

[music].

Hello, and thank you for standing by for JD Com's third quarter 2022 earnings Conference call.

At this time, all participants are in listen only mode.

After managements prepared remarks, there will be.

And the answer session.

Today's conference is being held.

Clearly.

If you have any objections you may disconnect at this time.

I would now like to turn it over to your host for today's conference Sean Zhang. Please go ahead.

Yes.

Thank you Rocco.

Good evening and good day, everyone welcome to <unk> third quarter 2022 earnings Conference call.

For today's call CEO of JD Com, Mr. Li She will kick off with opening remarks.

CFO instant issue will discuss the financial results.

After that we'll open the call to questions from analysts.

I would like to remind you that during this call our comments and responses to your questions reflect manner.

Management's views as of today only and will include forward looking statements.

Please refer to <unk> Safe Harbor statements in earnings press release.

Our web site, which applies to this call.

We will discuss certain non-GAAP financial measures is also refer to the reconciliation.

non-GAAP metrics to the comparable GAAP measures in the earnings press release.

Also please note that unless otherwise stated all figures mentioned in this call.

RMB.

With that I will turn the call over to Mr. Hu, our CEO chip.

Yes.

So it's a little unusual.

Thank you we will give you a duopoly.

Hello, everyone. This is Sheila thank you for joining today's dot com third quarter earnings call.

Andrew Thanks for the two months of Daniel Libeskind anemia.

Well, then that he changed somewhat towards the 501 G pure silvicolous even Brazil.

Fortunately the Cal job they've got to that.

And then the equivalent of a new loan covenants alkylate blends into the cooler and lead a congregation selling most of the Johan <unk> who suffered.

So I'll bundle, what's really changing a tiny drop just continuing the treatment you talked.

It was about 4% year without Jim content.

Oklahoma City this year.

Hello, Yeah, with two luxury outside of traditional T cell <unk>.

Women into the two vehicle types.

<unk> genomics issued to Joel Cahill, Shanghai, Shenzhen, Guangzhou, now bundle, which is going to go without saying Hello.

At that level, you already talked about our strategy here Paul Don Kim.

The details of the triple dose cohorts, you're clearly quite a $14 three dilutive.

Do you have a yellow poacher turned up some furniture easier now.

When you look through that unchanged is it even for Q2 color border chemo doublet in melanoma.

The other one which we can talk with Toyota <unk> Toyota.

So our children, Jon Kondo leader can we get the other woman very light.

Can you talk to that so if you thought that she wanted to transfer to our CFO Tony <unk>.

1022 years, we lost challenges a year, both momentum and extraordinary we have withstood nationwide coverage researching face challenging macro conditions sluggish consumption demand as well as supply chain disruptions facing the complex dynamics JD has been making.

Full use of our supply chain capabilities and a resilient business model, we've built over the years.

We strive to provide best possible service to customers greater operational certainty for real economy participants while at the same time delivering steady business growth of our own money.

Moreover, we are delighted to see substantial improvement in our growth quality this year.

Given the evolving economic and industry environment since the beginning of the year saving made pre empted position to focus on our core businesses.

Well reinforcing quality operations management and.

Attaching great importance to business health.

But that's the way to maintain operating stability in times of external stress and ensure rapid rejuvenation well when the economy recovers.

As a result, along with our steady business growth. We have also experienced a better operating quality.

Stability and profitability.

<unk> validates what we have communicated with investors many times before about the potential for margin improvement in our unique business model. It also gives us a solid foundation for sustainable development.

Through different economic cycles.

Hum.

If you're talking about <unk> or Johan I think closer to a halt because their children.

Sure and Jonathan just routine clatter Audrey each in question.

Cause that money in 2019 defer to them.

I don't know if you had a crusher.

So those are the two maybe on one of our Thailand <unk> mutual performance here on kind of each of the physical network.

Sunoco TV payroll Glen talked offered us some window just helpful for sure.

But she issuing types of video.

Can we get control of it.

Let's hope that element to each of our home possible Johan.

The majority of those in Q4.

So as a currency that's future if they don't have tissue.

It is a new kind of offering a few months.

We welcome and support the governments recent move to further optimize cabos control measures with more science based and are targeted approach. We believe this is important to continue virus threat and maintain the stability of economic and social development.

They're also supportive policies for companies like JD that play an indispensable part in supporting the industrial valves and peoples Midland crude when they're fully cooperate and implement the authority is relevant positions and arrangements. It is true that cover condition will continue to pose challenges to the economy.

And consumption in the near term that said, we remain confident in the continued refinement of the Companys control measures the resilience of the Chinese economy, and the long term prospects of the consumption market here, we also see growth opportunities and make sure all the challenges.

That's the element, we don't hold on Guangzhou auto units are down closer to <unk> 10 accretion.

Yes Thomas.

Hi, Charlie lifeboat testimonial Katachi, though yield in Washington.

But there are material energy shot woman or strategic Saavedra syndrome, commonly I started a tangled achievable.

At some level, where you want them.

With that I'll draw.

Right.

Neutral.

Yes.

Oh, what you send out to London, while materially airpower G box without accounting for almost all of them and then they'll come down.

The group working on the culture, and Linda total yogurt vehicles.

Maintenance yourself.

<unk> plus vehicles Grimoire ghansham.

Jo Malone put up at these facilities.

Favorable other local opinion go options.

So we'll put out what our torture pathway here, partially because of Gulfport to Gulf coast window don't culture.

The actual base if you can tell we're pretty open about it.

Because I was talking about.

So you don't go to stand for something if it would work or sustainable Cola synopsis.

I told you that syndrome.

Tortured relevant agenda comes out.

But we won't go through its excellent judging Canada impact.

<unk> of course, they have and again as <unk> talked about all about noncore non hunting Titan.

Or does that happen.

I'll talk to you again soon.

What kind of in Australia.

Well no.

Gotcha.

<unk> increased tissue, if you don't think so.

So the table of adenoma so efficiently.

Notably the people culture down long term silver as soon as you pay down moving from shoulder sales contraction in Tokyo.

Hey, Brian how are you going to email them down there. So the total werent forget you shouldn't see a lot you can tell Paul.

Unemployment people that you sell in so Paulo.

We can see LNG New York.

Lee.

A woman break it real quick here.

Subway stations do matter function.

Causing them to conduct itself will produce sure if youre going to see if you go with that.

Because of all the high end up yoga.

The <unk> pathway.

As we made proactive adjustments and focus on our operating policies. We all have to go after.

Himself the radio business at the center of our core competencies and business model, namely customer experience cost optimization and operational efficiency.

Roundhouse business philosophy.

We continue to achieve great progress, increasing customer mindshare and supply chain efficiencies in Q3 <unk>.

A user base reached 588 million, mainly driven by the net addition of over 10 million active users from our core insulation business.

Our data.

Also recorded a double digit year on year growth. In addition to user base expansion. We also saw a better use of structure and user quality in particular, both the number of users and cross numbers delivered higher growth rate than other groups of users and made up a larger proportion of total visits.

This helped to drive increases in overall average shopping frequency and output.

For plus members along with the scale expansion. We also saw that each of them on average spend over eight times as much.

<unk> plus member demonstrating their high degree of loyalty engagement and purchasing power.

During the latest Singles' day Grand promotion JD highlighted the drafting of cost effectiveness and value for money, which helped us to onboard an increasing number of high quality merchants and the.

Promotion achieved a solid growth with a meaningful increase in the number of shopping to Houston and a record number of participating merchants in offline stores. In addition, the promotion ultra boost gauge growth, where many agricultural households, Andrew area with nearly 10000 after years of agricultural products.

Over 100000 RMB.

JD is committed to promoting the virtuous cycle of revitalization from direct sourcing of high quality agricultural products to consumption upgrade to interest income performance. During the promotion. We are also proud to see that over 500 million users quick back to Christ.

<unk> program in the App and after sales service that Judy has provided for many years. This reflects JV supply chain capabilities and showcases our commitment to providing the best possible user experience, helping refers to feel reassured at all times when they shop on our platform.

Service has become a hallmark of JD premium user experience and also pushes the boundaries of what's the industry can do to enhance user experience.

<unk> is only available on tissue the total cut off somehow Joshua changed at all for you had had a put your equal now.

Basically is really following the tornado.

Hello.

But the 72 things rolled out.

Because I'm trying to ask you as you Chico Cheetah, which I'll finish on that point, even though she was shocked to Jack.

Why don't you lay that sounds like a portion of it going higher.

Pressure.

Suddenly the ruble and long short value.

I am actually different shocked you're adopting ddos resumption patch EMF, although last year wholesale bookings that will be.

Lenovo shop.

Even though the majority of your total capacity available in the <unk>.

Similar to <unk>.

She won't hopefully at Gaslog without some of the.

Texas, <unk> Arthur or data.

Let me start yes, Shelby that she wont like there should be a good either tim or put on hold.

<unk> shown the Alco Jankovskis team a kibosh on pack.

Finally, I'll move amongst potential that shows you that Johan will often pay hope you halfway through quarter, two was <unk> <unk> for Florida horsemen O'neil.

Yes, Sean the other thing Charlie that two months of trading in our filings very powerful T cell leash on that that I could see that that's what you get some of the other timber shovel alcohol total full year can be linked to India, I should've TV <unk> tissue.

The continuous improvement of operating quality also lays a solid foundation for us to make further progress on our long term strategy, namely our online marketplace ecosystem.

China businesses and supply chain capabilities to empower their economy.

Online marketplace ecosystem make solid progress in Q3.

The number of third party merchants recording over 20% year on year growth.

Nice quarter.

Fashion sport and outdoor category.

The industry locally with the Onboarding of the.

Actual brand strategy that he has got the platform to establish and all of that partnership with <unk>.

Luxury brands enter the LTM age group a collection of session cosmetic and the sportswear brand also joined JV in Q3, such as Christian Louboutin, the Priory and loan amendments.

Our brand thing inhibition of a supermarket business, Jamie Super continuing to rollout of national prevailing program, providing consumers high quality specialty products, notably in addition to the 17 national prevailing is already in a position where they'll come to nearly 20 countries to open diagnostic preventative Santa Rita.

During the light latest Singles' day Grand promotion overall gaming is dedicated to build an online marketplace ecosystem, where merchants can fly with lower entry barriers and operating costs better traffic allocation in the marketplace as well as higher operating efficiencies driven by the fact opportunities.

Supply chain logistics and technical capability.

All these efforts have contributed to a sustainable growth of merchants and F&B in times of uncertainty during the latest promotion mentioned our platform reported stellar performance and higher sales contribution both on a year on year basis, and compared to 6008 Grand promotion.

$2 10, $2 total ankle.

Seven zero parts of our cost profile of the shuttle commit yourself, so yeah or tissue can be so much with them. Okay. You can keep Illinois, Chunghwa bashing, therefore cultural of forgot you'll save you shouldn't rush hour Shashank will follow shortly.

How that changed from now firmed up.

Sure Sheila the synergy the synergy of the parcels will demand that was out there for sure.

The year quarter option work when baxalta useful tubular tissue neutral impact you'll have a peso ginger, especially about who can do social social and iPhone <unk> thoughtful fashion lapse in Washington, the tumor tissue. There was almost a parcel that you provide thoughts once you get <unk>. Therefore total daily so as usual Marc.

Got you.

Those are sort of on jobs from initial human yet Sharon I'll take that chunk of mortgage and what her work each embolic too sure sure. So first of all she won't chunky soft Russell.

It is omnichannel intrastate business maintained strong growth momentum in Q3 in particular shelf now our one hour delivery service recorded a triple digit year on year GNP growth with it services covering the vast majority of the supermarket chains in China shelf Knowhow sports to close collaboration with <unk>.

And offline stores and generated incremental growth through omnichannel for brick and mortar partners. During the latest promotion that's the only on demand radio platform selected by Apple for the pre sales of new iPhone 14 theaters, maybe detail what together with shop now and so hundreds of thousand.

Wins of new iPhone models, making at that point, when new iPhone sales using on demand video model. In addition to the DJ and shop now also partners with over 200000 offline stores during the latest promotion covering a wide range of categories, such as supermarkets mobile phones.

Electronics cosmetics home goods baby and maternal and pets and provided our new delivery services in over 1800 cities and countries.

<unk> had a clean energy.

<unk> shipments that you plan to only.

So I'm sure John Mccain shop, I think of Sidoti.

So Sheila you quite often you got you.

Some say huge social agenda here, though from Nevada cohort cohort so half of that.

The T cell genome.

Thank you Patricia agenda shortly.

Yeah.

So a couple of short shoe box for farmers will go down.

So that would be good to talk to that.

Tissue, but Jen <unk> the changeover later all else equal.

So as you go more cohort robotic that Massimo.

So what you saw with one of our chief researcher from here he is our controller.

We see this as a demo with Hong Kong decidedly Victoza Poggio Gabriele Jamie Wilhelm <unk> will fortinet.

So if you take Australia ensure that jump in Brazil.

Despite the challenging environment JD logistics continued to provide downstream industry partnering with reliable integrated supply chain solution.

Morning, Andrew cause customers to mitigate risks response through rapid external challenges and optimize cost and efficiency in Q3 city are also expanding the depth and breadth of collaborations with a variety of leading players in Assam TT home appliance furniture apparel automotive.

And the fresh produce industry as a result.

<unk> maintained a resilient revenue growth in this quarter, notably both the number of city, our external customers and external revenue delivered double digit year on year growth with a merger with a larger contributing nearly 70% of its total revenues in Q3.

Robert maybe I'll continue to expand its logistics infrastructure around the world as of the end of Q3 video operating.

Operating in over 1500 warehouses with an aggregate gross floor area of over 13 million square meters.

It is also worth highlighting that JD logistic airlines and affiliates of JD logistics commenced operation in Q3 in the future JD logistic airlines with Camden, JV, our integrated supply chain services and help drive lower cost and higher efficiency along the supply chain.

Great.

Jimmy angular viable quite in the Pilbara.

Colonial Charlotte Buffalo Wallow teams here now to Joel Cahill, with Colorado and shuttle a meal with a culture that will come down, but other chunk Honda literally.

All right very light a father.

Sure no.

So that's what I thought.

<unk> shifted right now until when the torch issue in total on a quarter shift.

Even though chip charter on a portion of what may have changed the kind of halfway through the <unk> some of that color.

I'll add to that.

Two quick questions don't capture the full she can give assurance this year, mostly in the late May ship in January now, you'll not only tiny so hot holding approach evolution.

Actually ginger and sure that yourself.

Got it.

I want a second similarly challenging our Kona and Hilo Crusher is one that many of you detailed for the sofa.

One cohort at all from watching the cause for quite a while the chapter but I also do believe that.

Fundamental for sure that you saw so what youre going to take a sample of our Hudson Java and <unk> separately.

To conclude let me say.

<unk> external environment. This year building had a foresight to double down on operating quality and the core business.

This has enabled us to comfortably deliver high quality growth generate healthy margins and cash flow and accumulate strength for long term development standalone.

And the last quarter as we navigate through the cyclical economic adjustment I mean short term challenges.

We see the momentum.

And the tremendous growth opportunities ahead of us.

The company that is rooted in time.

Economy that supports the expansion of the demand side and the structural reform of the supply side in China, helping the real economy to achieve better quality and sustainable growth.

Looking ahead, although well established a supply chain infrastructure technical capabilities and the social responsibility. We are committed to will enable us to play a more important role in China's new development.

We believe that only through unveiling the determination and perseverance candidly about through the town with that I'd like to give the floor to sandy.

Thank you Lee and Hello, everyone.

As many of you confused here on the ground the COVID-19 situation still evolving and may add complexity to consumer sentiment and stay operational environment from time to time. Nevertheless in the third quarter, we recorded a back half improving metrics and encouraging milestone across our finance.

And 15 stoppage operation.

Our solid results in the quarter demonstrated our ability to cope with difficulty kind of dynamics.

Improving our call comprehensive.

Hot amongst sustainable growth trajectory going forward.

In the third quarter, our net revenue grew by 11% year on year.

Hundred and 44 billion RMB.

Turning to our healthy check.

We navigated through a challenging time impacted by college researching and macro uncertainty.

Our annual active user base also returned to growth and reached 588 million in total.

Thank you a net addition of $7 5 million in Kosmos sequentially. Despite a partial tax due to our turnkey business adjustments.

More encouragingly, we saw more customers staying with us for a longer time and average spending per customer has been consistently increasing as well.

All of these improving metrics.

It depends on the engagement and enhance customer top.

Clicking down does that mean you might.

Hook up to revenues were up 6% year on year, a recovery compared to 3% year on year cost in Q2.

Revenues grew by 42% year on year to $46 5 billion RMB.

TV a historic high of 19% of total net revenue.

Logistics and other services revenues grew by 73% down here in Q3, excluding the consolidation in fact up there Paul.

<unk> delivered a year on year.

The growth rate of 36%.

The momentum from Q2.

I will elaborate more on the underlying Tyler later.

We have placed on the marketing revenue grew by 13% year on year up from 9% year on year growth in Q2.

In order to drive recovery.

So merchants, becoming more active again and in basket additional advertising bucket on our platform.

Which helped to accelerate our advertising revenue growth.

Also thanks to our relentless okay, improving eclipsing ecosystem.

We successfully on boarded and increasing number of merchants onto our platform including.

Notable wins in the apparel category.

This brought our merchant base to new Heights.

A solid foundation for our opening ecosystem.

Now, let's turn to our segment performance.

BT retail maintained solid topline growth with a healthier business mix and our continued margin improvement a year on year basis.

BT Retail's revenue reached 212 billion RMB in Q3.

Growing at a solid 7% year on year.

Electronics and home appliance category.

Try an impressive 8% yeah on their calls.

Up from flat growth in Q2.

During the quarter.

Out of our supply chain capability and strong customer mindshare with sweet swiftly match, the demand spike well air conditioners.

Due to the unusual weather pattern.

<unk> double digit revenue growth in the home appliance category.

Well the launch of the mobile phone models in September helped to lift consumer demand.

General merchandise revenue was up 3% younger than in Q3 Covid situation after Michael continue to dampen.

And then in consumer discretionary products.

Such as cosmetics.

Okay, and partially contributed to the South Dakota General merchandise.

Meanwhile, we started to proactively optimize our product mix, particularly in the supermarket tetbury to improve operating efficiency and profitability.

With respect to impacted growth rates, but traditionally carry.

However, we believe it is important for us to stay focused on our core categories and capabilities.

To establish a healthier and more sustainable growth trajectory for a long time.

That's that.

Emerging categories.

Health care home, good pets, and Boston all the outdoor we continue to terrorists double digit topline growth in the quarter.

Demonstrating our pending user mindshare across a wide range of tax rate.

We are seeing the results of our business optimization.

Thank you Vito fulfilled gross margin was up 80 basis points compared to the same quarter last year.

Mainly driven by our optimization efforts and the improving economies of scale.

Also as we continue to expand gross margin almost pedigree and remained disciplined in OPEC.

Retail operating margin was up 115 basis points.

Year over year basis.

252% in Q2 Q3.

About the 30% Mark for the first time since the founding of the company.

City logistics OTT al maintained a solid top line growth in Q3 and has achieved breakeven for two quarters ago.

They do logistics revenue grew by 39% year on year 2016, R&D, partially because <unk> acquired.

I noticed they came to pong, which was consolidated since the end of July .

Excluding the impact from the consolidation of the Palm Beach House revenues were up 16% year on year, mainly driven by the returning to growth in revenue.

No cosmos.

Which also saw acceleration.

<unk> facing.

I suddenly stopped revenue from external customers once again.

Our record high revenue contribution of nearly 70%.

More encouragingly.

We are relentlessly focused on improving customer mix optimizing operations and realizing the economies of scale is operating margin was up 350 basis points from my years ago too.

0.7%, yeah seasonally low quarter.

These results demonstrate our ability to maintain a resilient growth even in a challenging environment well remain well on track of improving its profitability.

That has reported revenue of $2 4 billion RMB.

And its operating loss narrowed sequentially to 300 million RMB.

<unk> continued to work closely with both internal and external partners.

Please.

Super our supermarket business within taking Intel has been collaborating with the barbell to broaden product portfolio, but also an interesting antimonic retail services.

The shop now service to consumers achieved at triple digits and lethal from Q3.

<unk>.

This initiative also contributed positively to the margin of supermarket type thing.

<unk> also established a collaboration with a variety of external brands.

For example.

I know husky expanded instant delivery services to the coffee and the beverage category, which is now available in over 2015 and counties nationwide.

I think you can see with a broader spectrum of use cases, all certified by the <unk> is in a much better position to serve our customers anytime anywhere.

Finally, as I shared in the last quarter, we continued to pursue rational development across our new business segment.

<unk> reported revenue of.

5 billion RMB and operating profit of 218 million RMB with a positive operating margin in the quarter.

This was mainly due to the gain from the first tranche closing a student property third property croissant in Q3 and to the narrowing loss sensitive business.

Steady property has a well proven business model with total tech support.

<unk> 2017 in RMB.

<unk> committed to.

Huntington.

In line with our prudent investment philosophy.

In the face of the complex macro condition, both domestically and internationally.

I was hoping pursuing strategically alignment.

Other non core business.

Such as the sensor business.

Measures resulted in a more moderate revenue growth, but continued to narrow the operating loss sequentially.

After excluding the gain from the property.

Moving to the consolidated bottom line as.

As we proactively adopted measures to focus on our corporate muscle and improve operating efficiency.

Our bottom line reached a new milestone in Q3 now.

non-GAAP net income attributable to ordinary shareholders surpassed the 10 billion RMB Marc for a single quarter for the first time in history now.

non-GAAP net margin was four 1% representing an impressive year on year improvement of 180 basis points and reached a historic high.

Our GAAP net.

Net income attributable to ordinary shareholders also improved to 16 and RMB with GAAP net margin of two 4%.

Our free cash flow for the trailing 12 months. This quarter was $25 8 billion R&D. This was mainly driven by our improving operating cash flow were all partially offset by an increase the capex in our infrastructure and pension that would position us well for the future calls.

At the end of Q3 cash and cash equivalents.

Cash and short term investments added up to a total of 218 billion RMB.

From 217, RMP last quarter.

To close my remark.

Solid Q2 results demonstrated steady business returning in the face of rapidly evolving macro condition.

There may be no better time than now to review the progress across our business initiatives and make pockets of changes where needed.

We believe it's vital.

Hopefully in a time of uncertainty.

We are focused on delivering better operating efficiency lower cost and best in class tenants, which represents the essence of the retail business and the pace of all capacity long term success.

Our focus on building a resilient business means that we are well positioned to help our users such as promised to cope with external challenges and make meaningful contributions to the society.

All of these factors will make sure we are well prepared to benefit the next phase of great growth opportunity.

Which we believe wont be too far ahead.

With that let's open the call to the Q&A. Thank you.

Thank you question and answer session.

This call will start in a moment.

To ask a question. Please press Star then one on your Touchtone phone.

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In order to be fair to all callers, who wish to ask a question. We will take two questions at a time from each caller.

If you have more than two questions. Please rejoin the question queue.

Again after your first question has been addressed.

Today's first question comes from Ronald.

Goldman Sachs. Please go ahead.

Hey, Steve Yes, you laid on Sandy Sean <unk> Sandy locations 17 deliberate not one element.

Cynthia you achieve that.

<unk> <unk> now.

One is home when I.

Quick how did 2000 that she has seen the tundra tour.

Yeah.

Conducting daunting should have been much harsher.

<unk>.

Nah caution lever new tonnage single dual and signed them up here.

<unk>, yes.

The data shows let Jim comment.

Thank you Sandy and Sean and congratulations on the strong third quarter results.

Wanted to ask about the investment phase and mixed growth drivers.

We could see from the third quarter that logistics that are new businesses that no longer dragging.

Earning so where were you thinking on mix investments in growth areas and then within JD logistics, we have seen that the general merchandise supermarket growth at <unk>.

Rated well margin level for JD retail reached a new high so heading into next year.

Thinking about balancing our growth price advantage and stable margin. Thank you.

Okay.

But whatever that revenue essentially is a single sugar, we annualize eater meal.

So we are on a year earlier.

EMEA OPM Jim sugars.

It wasn't that different slow to deal with a national <unk> com.

To the tier with Xiaomi Assortments.

Not yet.

Two of the hall.

It takes it up to <unk>.

Yes.

<unk> had two Ceos.

When we were coming geography was there anything broader theme superhero books.

Books at all.

Tissue, Cindy Mccain managers with glucose redemption shooting there.

And this is Sheila let me answer the question by sharing with you our long term help us drive.

Lots of things to do business. This has been made and can therefore cause.

17, and for the 19 years of JD Com, we've always great.

Great importance to the user's experience and the cost and efficiency no matter, what kind of quotes and new bookings. We do we will speak to this three point and in terms of our two customer businesses.

That's great importance to the quality of our products and prices and good pricing and premium services from many of our investors know this it's very difficult to always speak to this philosophies in concept to a 19 years of JV development.

No.

You guys are key elements that appear patio suite of women.

Seasonal that's underneath the $200 to job.

<unk> and <unk>.

Tuition share Brooklyn Amendment from allocation largely from the tundra.

However, it should be.

Operator charge on an extra 800 T shirt the highlights.

Yeah.

And in terms of for some changes this year I wouldn't say back should we make more of a concentration and focus on our core business and this is based on our analysis already this year and we have made some proactive measures according to other.

Early analysis, which to date, we think it's a very timely adjustments we have made and also taking the lead in action among the industry.

Canada on pre children that sure.

Q1, each year HUD can continue the chassis and the materials software products.

Pre trading this year.

Thats what next.

Somehow impact your full suite of T cells into the tissue with shutting those sure.

The tissue supercritical cloud there is what do you have that international conglomerate.

James Louisiana.

But it kind of expands on that she can shop.

Uh huh.

Our continued growth.

Uh huh.

So Judy for solar PV.

That posture.

Sure.

Hi.

Sure.

And we are certain that even though many enterprises are facing challenges, we do see a brighter future and there are some obvious signs and economic recovery.

Even though the sign is very clear, but we're still not very clear about how fast the speed of the recovery from the management perspective, where we want to do is that we stick to our current strategy and we should have a very clear view on that.

Future in terms of which direction things are what will be changing in this industry in this market and how strong is this momentum for us to make all of our it resources investment in them in.

In a more clear.

Hey.

So as you know we sold outside of the hardware.

Thank you <unk>.

We've got lots of reasons for.

So that side of it.

Okay.

<unk> 200 millimeter Cuso charter hall covenants impactful, including shoal facility of which means I think there are.

And in terms of the strategy for JD retail, we will continue to speak to the big four strategies, which are the building of the supply chain capabilities and expansion into the lower tier market and building an open ecosystem and the intra city retail we will stick to the sport chooses.

So I would imagine that in parallel to that 72.

Let me be broader clinical mobility triggers yourself.

Each meeting.

DWP.

Can you say, how many sort of gogo by geography.

Hum.

But as of July though.

In English.

No idea.

Linda.

I'm holding this quarter that we've gotten a simple even talk all about leadership.

So the Eagle Ford.

Sure Matt.

1000, <unk> to dial in the hydro off the book.

Yes.

On Egypt continued quarters.

And in terms of the supermarket business.

They are mainly affected by the Covid resurgence in its growth is ongoing in the downlink whoever it is.

And finally, our progress is made in this category, including is helping profitability.

Ability to manage cash.

Great.

Overall productivity shippers users has been accounted.

Accounts for over 70, Comscore, 50% upfront overall on TV com platform and.

We are confident for the future growth of this category and so we have to make some are you expanding into this category for a lot of interest and lower to your market expansion. This quarter. Thank you.

Okay.

Thank you and our next question comes from Thomas Chong of Jefferies. Please go ahead.

I'm, sorry, So you said plenty of times.

What are you going to issue.

Okay.

So Paul E train.

So plenty.

Charlie just go so it's certainly something that's an industry high.

Thanks again.

Both parties on that.

Yeah.

And you can see the GMB hi al.

I'll go with that.

<unk>.

<unk>.

Occupancy juncture.

When you die.

So again.

You bet.

Hey.

So keep that in quite choppy.

We'll see how she got a picnic emissions on treatment.

Thanks management for taking my questions and congratulations on a very solid spatchcock results.

First question is about the logistics disruption due to the pandemic we.

We seem to be how should we think about the impact on consumer sentiment.

Yes.

How should we think about the short term impact to GM.

Revenue momentum and my second question is about the.

Latest.

Product category trend across smartphones consumer electronics FMC G. In our payables are thank you.

Okay.

Sure sure.

Florida growth.

Gena, so rather easily you can call investor he changed and annualize it out though.

So there's a clear comparison.

So our opponents to ethane price.

Israel assumes Idaho timberland.

<unk>.

Doug I didn't cover you should keep interest in anyway.

So golar igloo.

Three digital units go single quarter, Charlie, but I would think about neutrogena people that buildup in dynamic Vishal I'll take it.

Several of these so that as we control to predict.

In measured channels on initial unit.

Chicago.

And indeed as you pointed out that the logistic fulfillment has been severely impacted by a harvest situation actually in the past three years. This year. It's been most heavily impacted I want to share with you at year to date on here that in September to present it.

In terms of our logistic fulfillment, a seven 2% from our customer home addresses have been affected by additional cost control measures and this doesn't mean that it is a fact.

The order for miles and a sales on JD.

This is done once a year in terms of fulfillment.

So let me go to China.

And our clinical development.

The work of social video call yourself.

Uh huh.

And I think on the shop so sure.

But what are you doing something to you that Gwen.

Thank you.

Too early whether how can the high end, it's yellow that's implementation of Virginia by the hunting Titan.

<unk>, that's a complete answer mentioned once that will not go no go the higher than normal tissue to linger sulfate zinc equivalent you got take longer than a year.

And indeed, this capitulation difficult situations that will affect our sales and fulfillment, but I also am a proud to share with you. According to China's effort to build out some.

Service recently in terms of the service experience the studio logistics and number one among industry, which once again validated our efforts made in on our supply chain capability building to help us to sign up and gain consumers' tuck in this difficult time.

From a different source either from you or okay.

Sure.

It's come on SEDAR and you say you got it.

Employees for intended to show the TSP Vania quake litho.

You may begin.

Altogether, youre, putting that put us very much.

Definitely.

Sure.

You can assume that on a go walking Kaiser children's and coal trading and go whether you go give us.

Sure.

Elisa.

The issue since ratio go from an impairment at <unk>.

Sure Doug.

We're comfortable.

And just also basically all of our data from the single State brand promotion, we do see a higher rate of order kind of.

Cancellations, it's a higher cancellation rates than the past few years because of the fulfillment difficulties in the <unk>.

Longer waiting times, however, I want to emphasize here that people come to <unk> dot com for more flex shopping. So we believe the cancellation rate for those platforms with more impulsive shopping we're shopping based on their interests the cancellation rate should be higher.

You might give us really is one of my favorite answer sure.

Sure.

Our Shanghai <unk> in order to.

Chickens and the Gold award.

Johanna.

That's going to go what's yet to come.

That added to that.

<unk>.

Some contracts you mentioned had a good holiday.

And another group of people.

Attach great importance of our brand partners and merchants and based on J D.

And shopping features is more pleasant shopping and the premier shopping experiences and this can translate to the better operating cost into profitability for our merchants and brands and make us stand out among all the other e-commerce platforms.

Sure.

Please up to latest some clients some degree an element to the Zohar ups and lesser it's out there somewhere.

Jim in the quarter.

As you know South Dakota yield.

Yield.

Other machines that made us has that changed at all.

So it really took options in that market.

And in terms of the faster growing category.

In Q3, we've seen that the home appliances, such group health sports and Pat.

Good job also including our shelf now services for the interest of the retail and Hong Kong.

Okay.

Scientists toward.

Hum.

We were hoping for.

This Atlanta Emmanuel Macron, Brussels. So he doesn't have any sort of what I would tell them that basically kind of a higher sodium understood <unk> fashion luxury the hardwood I Russell differently.

In Chile, we believe again because you guys are you will go back down.

Darren automobile.

Hello, Joe.

I mean, the highest sort out some of the sockets housing social engineering shop over long holdout sulfate oncology.

And also in our intermodal corruption level meal bundles, all the easy like more while maintaining upwardly each yet tons, increasing user level quick ones here.

So it was all because of some residual 40 years total.

Mobile Commerce, you mentioned Gulf Coast option later can handle over here.

Finally, I'll remind you, though that T cell, okay turnkey that keep it has florida chemical that cheese or should that level.

And so this last idea performing categories include cosmetics, and the mobile phone and.

But also we see that through September at some new model releases, the situations going better and this will continue in the lead up to Q4 and for the optical category. It's affected by the limitation shopping scenarios due to deposit and household a baby and the mother had a great day.

Thanks, a J.

Due to the reduced the newborn.

And.

There are many aspects of your categories on JD com and we are regularly reviewing those loss, making categories to make dynamic adjustments to maintain healthy gains across all categories and we have been an improvement on the performance of home categories better satisfaction.

<unk> despite of all the ops.

See their market share continues to increase.

Got it.

Yes.

This is Andy.

To add more color on the short term can be or government.

Hum.

As Susan just mentioned, we are still facing some short term challenges due to the Covid control measures.

And also we deal with the <unk> accounting.

Starting probably control policies to be very positive and constructive for the recovery of domestic supply chain and cannot comprehend.

It will take some time to go actually I see that's a positive impact on consumption data.

The current situations.

Also in the short term.

We recommend analysts to be more conservative in multiple.

That the topline performance.

But for now we are more confident in the long term strategies and across next year.

Specifically for JD retail.

Yes, we see that the risks.

Hurricane of coverage potential effect more regions in the country at this time.

And also I'm there are disruptions to logistics and fulfillment are resulting in a decrease in the successful procurement at lunch.

And.

That's why I say, increasing the order cancel all return rate compared to prior year.

So to the consumers also become more consumer clinical rationale and Doug.

The current macro environment and in fact, the demand was good during the major promotion spot soft her before and after the promotion.

So far in Q4, we see that different categories performed.

But in general and all that.

Central time, and legacy product performed stronger than the discretionary.

Product.

In particular <unk>.

And other discretionary products remain as Alex has been stopped so.

Our management team is paying more attention to operating colleagues. This year, taking proactive initiative equivalent, making some structural adjustments to that you saw sub categories with heavy investment.

We still have some negative impact on a short term top line growth, but we believe.

It will I feel very good foundation for our long term top.

Top line performance so with all these factors have retired.

<unk> will continue in Q4, but may slow down moderately from two things.

And then for.

Particular testing mm mm.

It's organic top line growth will be similar in Q3, two to three and the Internals Avenue, where I can be affected by the decrease of the auto.

Fitness.

And.

Logistics external revenue growth well.

Significantly outpaced that helping tunnel revenue all came in the fourth quarter.

The problem with the consolidated at the end of July and you will contribute more.

Revenue in Q4.

On the new business segment side.

Uh huh.

So the revenue growth of participants there will still be negative will be attacked for our overall revenue performance.

<unk> International business typically has also being attacked.

And to improve the operating efficiency.

And well our television properties and maintained a relatively high cost momentum.

Thank you.

Yes.

Thank you the next question.

Our next question comes from Eddie Leung with Morgan Stanley . Please go ahead.

Sure Don.

Sean I Gotcha.

Now you can see.

Just how hot that even the beat.

Sure sure when she talks about kitchen.

That's only a $2 or so I'll take the call.

<unk> James.

So T J yourself with the thought that the.

So I should put that ship with Tribune.

Oh I'm sorry on the ground as the current dollar doesn't show up in good each have been to the puzzle.

Sure sure.

Sure.

Yeah. This is rob.

Digital pumps, so much on sharpening Tyler shelter.

Understood.

Woman Kim shale that you can launch out to a choice here.

But you just kind of to understand these are withheld.

And there's a bulk cobalt small woman woke up on me out.

<unk> got mixed forming partnerships, which are the phone bill.

I hope you're Gonna go once you just really with the kind of woman go margin JD retail margin that you can qualify Alicia Chung, let Scott and Jeff.

What's your balance sheet too.

Okay.

Such a chance you said total woman Youll Mayo clinic, Mr. Shaw.

Our margin, but gosh I'm cool shows rules, so Jeremy that Josh.

So with that as you saw particular quote unquote.

So hopefully it will be John mentioned, all women couldn't wait.

So, we like where like al just pace.

Good job, who don't get a lot.

Like I'll give yourself it puts a woman in the board.

Topline for some time now.

Thank you management for taking my question. My question here is that we have already witnessed in <unk>.

Positive signal in terms of the Colbert policy relaxation as well as the.

The potential re opening in early next year. So just want to hear your view that.

What.

Assuming that this opening will gradually to happen in next year, what kind of preparation or strategy.

The strategy change.

Based on our current strategy in this year.

And the follow up question is that we have seen very strong margin improvement in terms of the JD retail business and the other business.

Assuming that there will be a very strong.

Each one of those consumption next year.

To achieve both.

Strong margin improvement together with the top pie.

Celebration or it will be a balance between the margin improvement.

And at the top line growth.

Yeah.

Okay.

Oh, well hook with Opdivo and <unk> together with the <unk> studies that I saw a dip of Qunar.

Oh.

So we certainly get our share of deliberate focus on a treadmill for Trillium Trillium.

Triple integration faster.

The type of vessels will come.

You laid out automation that has required us to Cuba, Cuba portion.

<unk>.

The quarter Butler to menthol nuclear unit two questions just to clean up at home instead of trading them.

Sure.

Two key factors.

Leaving because actually Mr Hall.

<unk> unit has other cooperative seamlessly fit us.

Sure.

Each is a sofa framework, which is single Youll see you Cook.

<unk>, yes.

Oh hi.

You may recall that <unk> put in the future.

So beyond them.

Atlanta, Georgia.

<unk> looked at that number can grow faster vehicle solution, but I don't think <unk>.

Bullish of Libre with hernia.

Gina.

Rover at Notre Dame right.

So uhm Rachel.

Uh huh.

So the pillar <unk>.

The neutrality commentary I mentioned the pipe <unk> has had some drag from that additional coring unequivocal tissue tortured illawarra any impact with the Michigan yet.

It's how you answer liana are critical.

Critical quarter for syndrome code, we were clear.

This is at the heart specifics when you look at omni channel.

Okay.

And let me answer the first question and first time users to make a bit of a correction there are certainties and uncertainty.

The 75 million cats. So we do see there's some new signals, we are getting ready for that and a good thing to come I believe that the worst of time has been part and we do receive some signals in some good information and factors for it.

Apply to future. However, further refine the question is when and how strong. So these are the uncertainties, we are not quite sure how clients what's.

What's the time to recover overcome so Virginia dot com, we arent such.

Large company that covering the whole country from deferred to fifth tier cities and we believe the recovery will come in in different formats and different times different group of people in different regions and this is all based on all the communications with our brand partners. They all expressed to their strategy to forecast.

Profit profit this year and this also coupled with their concerns on the supply chain impact.

Impact made final Brooklyn law so.

Other announced next year, they will focus more on profitability and the growth it's really hard to tell at this moment. So we will also make a dynamic.

Evaluations and to make the investment decisions.

And at the right time next year from this answered your question luminal gain in Jamaica.

Mainly related to kind of wisdom flavor flavor texture as you move into <unk>.

Sure.

<unk>, yes.

Let me repeat the main Etame <unk>.

Other options later on.

I'll review on the solution so seasonal.

<unk> broad appeal.

Dr <unk>.

Jim Malone tragedy of spoiled hung up afterwards.

Vishal.

<unk> sure.

The blended angular element number two continue productively with the government.

This is key in order to be able to go on appeal towards our key spectrum.

It actually is that Johnson <unk> Johnson.

The whole country.

In that neighborhood of Lendingtree.

These are major someone in young otherworldly.

New hope element Panama tissue.

Back to Michele.

Colorado, So I'm glad you got how Tidewater Sheldon Creed tissue.

Okay.

And on the profit I want to make a further explanation of clear <unk> JV EBITDA growth throughout the year. There are two main drivers one less so for the Oh that structure changes with a higher percentage of certain programs product there are gross margins well.

Improved steadily and also the <unk>.

Increase in revenue from the services, we provide throughout the years as you can you can hear that all the companies are talking about lower the cost and improve efficiency and for JD Dot com. This year, we forecast more lower the cost and between improve the ability for the internal.

Management, and I believe in last year and the year.

In the next two years, we will focus more on the improvement of the efficiency I can see there's many areas. We can continue to improve efficiency.

That's what I want to ask thank you.

And this is sandy at one time, so fast that our long term margin packet heightened changed.

This is based on the industry level margins and the operating efficiency, we can generate through technology and the scale of our business operation.

If the consumer confidence is largely recovered.

We will add more investments to drive growth in users and our market share.

At the same time, we will also gain additional operating efficiency as Tom just mentioned due to scale of benefit due to technology changes to that.

Increased contribution of our service income and so this is the beauty of our retail business.

Although we achieved a very important milestone for net income this quarter.

At the group level.

Annual basis, our margin is still below the industry level for almost all business segments.

We always.

There was room for us to continue to improve our bottom line performance.

JB always pursue sustainable growth and we will try to deliver stable margin with that improvement year over year and heal our long term margin targets. It's Mac.

Of course during that journey, we will make dynamic adjustments based on the market situation. Thank you.

Yes.

Thank you and our next question today comes from Lena Zhang with Australia.

Research. Please go ahead.

Can you tell me what's.

What's your sense of Atlanta, and centrality of course, it seemed on things you can say about how you see the trends do you guys see.

What do you know when he said when he talked to me show no chance.

Okay.

I'm going to kind of be like Huntsville, excuse me because I got question, how about being with your call.

She is going to go from being a child jokes.

Thank you chip and fragile.

Tons shipped well acquainted with all that <expletive> I don't think that means you buy something John two issues, it's easier because she's easy simple answer.

What did you guys have been just a couple of paint patch, Jim don't I shouldn't it's easy, especially TGT zone question I'll, let you talk.

Well, thank you Sam.

Basically he's out from Ectoblast research.

Like to congratulate the management team on the great results and thank you for taking my question.

My first question is about on demand reach out what is the long term vision B C and on demand retail market an afterthought, that's integration what adjustments have been made and which Phil will be summarized it.

We all see the article by Mr. She made though in People's daily, which talks about promoting the deep integration of digital and real sectors of economy. My next question is could you. Please introduce jb's measures in these big trends. Thank you.

Okay.

Energy carriers with our per bushel, Glenn you conclude Antonio, which Ms. Angela <unk>.

Morning, Joe.

So I would say.

Sure.

So <unk> huge.

Sure.

Well for the future of <unk>.

Overall women do you ever show me that will answer that.

What we started with economics that are doing well.

Puncture to Mediatek a year ago.

I thought Chicago, Guanfacine without saying anything that should produce for me I know you are.

Given the predominant Israel.

Media.

Thank you for your question and I have shared a lot about the interest rate the interest duty ratio before and now I want to give you. Some updates on my thoughts and observations. So first I want to say that what J D dot com to enter into the.

Interestingly retail business.

Purely based on the need to really drive up the users if not some opportunity business opportunities we jumped in its based on the users' demand and we're looking at this business and our understanding is debate based on the perspective of supply chain I don't want to I think in other people's brain about.

How they think about intra city retail this is where we start from.

The other woman conoco to our shareholder.

We also paid down the road or medical disorder <unk>.

Yes sure.

But in the case of adults and children can lay down machines.

Some states take some coffee and again to the P&C carrier.

Our brokerage and crucial hydro pivotal would you let that happen you'll have to send the giulia surcharge almost with hydro.

And in terms of the entry points different companies adopt a different dimension, Virginia Dot com, we entered this market by <unk>.

Due to our relations with the big supermarket chains, another K eight and in terms of the category, we start squeezing of FCC and supermarket category and for other players they might start with some F&B stores.

Entering in different directions.

Okay.

Sure.

<unk>.

And then there were some considerable has hung in there for international and achieve better Yorkshire.

Looking back on that you can say the Yokohama Goldman Sachs a line fit on SEDAR.

Governor corridor.

From the Gogo Viator.

With that.

Goodness I don't have that.

How many total shop in tier structure.

Two months ago.

<unk> I'm, sorry, if I'm a fuel bill quote unquote resolve that works within the hurdle Cambridgeshire Youll government pay down pay off all the hurdles for that and we're going to each.

Jacob shallow so I'm, hoping to get into long term Thunder.

Yes.

Okay.

Sure.

And our our resources and our relationship with brand partners is one of the key strengths for us in this interest rate a bit.

And this has been based on our long time collaboration with them.

We're already in.

It'd be interesting models, we have been collaborating with our brand partners in many in many directions in many dimensions on the supply chain cooperation marketing and sales to release of new products et cetera, and altogether we are.

<unk> great.

Great Party.

In the situations among JD brand partners and to the offline supermarkets.

Well the new zebra.

He highlighted.

At GBP 12 kilowatt hour.

I got you.

The other tool.

Session afterwards.

In 2000, and cohort dose is going or how many you would put out there to go.

Sure.

Thanks, guys.

Sure David.

Cautions you that bubble viator, a social saw initial.

While not other fuji to assure a woman engagements that come cheap.

The initial hurdle to seating so a phone there should be army that's kudos shebang.

Another woman Slam and average fee pool tornado Michelle Michelle pole.

Sure.

I can pick it up.

<unk> <unk> single quarter from licensing.

<unk> shown the jumbo.

Let me make one example about the interest in <unk> retail cooperation with Apple as you know that in the September Apple released his iPhone 14 and.

You know a lot of our companies are taking this opportunity to do marketing and according to the data we collected on this market during the same period of time.

Daily Dot com and our interestingly our retailing.

Our retailing business.

<unk> topped.

In terms of the sales and we.

We are seven to nine times.

Higher in terms of sales of iPhone 14 theories as opposed to the second place the Renner App.

Data on our platform. However, we did not want to brag about it because our seven points due to do this collaboration is to provide more convenience for consumers to buy the new.

Theories of iPhone, and we believe the value to collaborate with the official retail on the official brand and to improve efficiency for this.

<unk>.

Darren women pursuing quality sustainably 70 that will take a Houston looking now related to the <unk> too bad.

Perhaps with some cash out of the accrued yet for <unk>.

Yeah.

You brought back.

Looking back on the updated pro forma shipments although coming out.

All core Rps proposal four.

Yeah.

So to your margins yet quite uniform tissue.

Hydro brokerage chemical yes, so you said it on the Hull converted huh.

According to that.

She entered deal.

Hello.

Timna.

Got it.

<unk> trend and I think most importantly converted shuttle shelving TMT guardhouse for kind of a year ago.

And that's as opposed to traditional <unk> model. This interest rate ratio, it's a new type of supply chain. We're building there is still a big improvement room for us to improve in.

Such as our users' experience.

<unk> with 100 brand partners, the LP assays to services and optimize the fulfillment and the transportation power improvement so.

And now we will focus on several indicators for this business, including user experience there.

Purchase rate improvement.

The number of orders et cetera. So.

Still we focus on the efficiency and experience to develop this business.

Well you did in <unk>.

Women's contributing to this will be the.

When will it hit your 12, okay, even though.

In particular that you put in the core area.

Enrolment, putting up our own personnel.

We're maintaining propulsion hi, Sheila.

What we don't need a python so food component.

And then in Shanghai.

Sure the sugar progress against themselves.

Bob It's John .

She had a consultant on the product.

And in terms of the integration with the real economy I want to share that.

C H.

Building, a responsible supply chain and this does not only provide more stability and reliability for our supply chain. We also opened ourself.

The depth of capabilities to support our partners upstream and downstream to help in their digital transformation and improve cost and efficiency and to promote our high quality.

Economy development.

I'm a woman without a full investment.

Bubba.

Well each year.

On our Q3 demand.

Obviously old apps yet.

When you shop.

Sure Tony.

But can achieve.

Good question that last year virtually.

Number four.

Accordingly, we are happy with it and we'll get you can get playing those games in the floor.

And for JD, our supply chain services, we are now serving over $80 million. We are now serving over 8 million active enterprise customers. This includes over 90% of global 500 companies, who operates in China and nearly 70% of the so called a special license sophisticated.

And we also provide some specialized in supply chain services to the manufacturing center.

Energy.

<unk>.

A new manager.

I didn't get it from what are some of the exposure to us to help them get laser according to plan as well.

Our preliminary biomarker is a shoulder quarter, particularly point of entry.

If our korlym.

<unk>, yes.

Sure.

So you're going to invest work to hit crucial.

But again that can have a data.

From a short jumper chairman to shop.

And at the same time series of supply chain has been connected with our mainland so for our small and medium small stores across China and over 300 cities. There are many forms I want to elaborate.

We are not only providing lots of mile solution on their sales and services, but also helping them on the first of mild after supply chain in the upstream this has been a very.

Effective support for them to drive more traffic and lower their cost and improve their business efficiency.

Because if we don't do that.

All of our history.

The issue is the peaceful.

In Utah.

So to answer that shifts out of the vehicle results yet.

The June number was a freak on government through the woman that.

Conditions.

Your whole women with high inventory of finished with <unk> and their function.

Start up and can we shift to <unk>.

But there are two horizontal women's health.

The commercial one minute.

Looking a bit I agenda, so, let's say if amendments.

With hydrocodone.

Thanks, Scott <unk>, who will shake out in a partial quarter totaled.

The major portfolio.

And here I, just wanted to add that I get it accounting generating.

Generate to rational our profits and we are running based on a low cost and do we fully understand the difficulties and I think if they work and they do their business in the offline scenario.

While we are doing in the supply chain support for them, we don't want to eat their profits, we want to form our synergies with them and together, we build a rational profit.

This will not come because of some other companies who are entering the slow while entering this offline market and generate outsized profits. This is not something I see.

Think rational.

Thank you.

The ones that are going on there.

Alright.

Sales into the single data point with you hop until July kind of home title English will tell you the country bango well under local laws.

So.

Hello, Matt.

You guys when Youre Chevron Angola, each has for sale, but domino sugar from the 812 Aida.

Bill.

You can't afford a slowdown with other women, who already Jackson you should each year when the <unk>, So thats, what I should say.

She is asking what is the level of fit on a single dose of women's with hydro.

So a year later women ICR strategic measure with regards to open that homes are selling group.

And lastly, I want to mention that since 2020, So we had launched our usual revitalization initiative named.

Hi, Joe.

March two rates plan and this plan has driven tens of billions of industrial output.

So Andrea center, helping middle income for farmers to increase their income and.

We do have confidence that when.

We set a goal to achieve truly I ran a small industrial output under this program usual areas within three years' time, and we can accomplish this ahead of the schedule and so all of these on our understanding as a new type real economy company. However, we know we are not doing enough.

We are still improving ourself, improving our capabilities. However, this is to go with that and we will stick to it. Thank you.

Thank you.

Approaching the end of the conference call.

I'll turn the call over to J D Dotcom, Sean Zhang for any closing remarks.

Thank you for joining us on our call today and for your questions.

If you have further questions. Please contact me and our team. We appreciate your interest in digital come as always and looking forward to talking to you next time.

Again, thank you.

Thank you for your participation in today's conference. This concludes the presentation you may now disconnect good day.