Q3 2023 JD.Com Inc Earnings Call

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

Today's conference is being recorded.

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

I would now like to turn the meeting over to your host for today's conference.

Sean Zhang Director of Investor Relations. Please go ahead.

Thank you operator, good day, everyone and welcome to JD Com third quarter 2023 earnings conference call for today's call CEO of JD Dot Com Ms. Sandy issue will starwood for opening remarks.

Our CFO Ian Sean.

Sean will discuss the financial results.

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

Let me quickly cover the safe Harbor, please be reminded that during this call our comments and responses to your questions reflect management's view as of today only and will include forward looking statements.

Hello, and thank you for standing by for JD Dot Com third quarter 2023 earnings conference call.

Please refer to our latest safe Harbor statement in earnings press release on our IR website, which applies to this call will discuss certain non-GAAP financial measures. Please also refer to the reconciliation of non-GAAP measures to comparable GAAP measures in the earnings press release.

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

After management's prepared remarks, there'll be a question and answer session.

Today's conference is being recorded.

Have any objection you may disconnect at this time.

So please note all figures mentioned in this call are in RMB.

I would now like to turn the meeting over to your host for today's conference Sean Zhang Director of Investor Relations. Please go ahead.

As otherwise stated now let me turn the call over to our CEO Sandy.

Thanks, Joe Hello, everyone and thanks for joining us today to discuss our Q3 results.

Thank you operator, good day, everyone and welcome to JD Com third quarter 2023 earnings conference call for today's call CEO of JD Com is an issue with Starwood for opening remarks, and our CFO, Mr. Sean will discuss the financial results after that.

Continued.

Development across many of our operating and financial metrics and we saw a robust performance for our single state Glenn promotion with a double digit order growth and menu innovation.

Ed will open the call to questions from analysts let.

Successful promotion further amplified our efforts to bring lower cost higher efficiency and superior customer experience to our customers and business partners.

Let me quickly cover the safe Harbor, please be reminded that during this call our comments and responses to your questions reflect management's view as of today only and will include forward looking statements.

This is jd's operating philosophy, which we have been committed to since day one.

Please refer to our latest safe Harbor statement in the earnings press release.

I'm, sorry, which applies to this call well discuss certain non-GAAP financial measures. Please also refer to the reconciliation of non-GAAP measures to comparable GAAP measures in the earnings press release.

User experience is at the center of our operating philosophy, and we have gotten extra mile to further improve our user experience.

Let me share some recent highlights.

So please note all figures mentioned in this call are RMB unless otherwise stated now let me turn the call over to our CEO Sandeep.

In Q3, we expanded free shipping coverage for our users by leveraging our improved logistics capabilities.

Thanks, Joe Hello, everyone and thanks for joining us today to discuss our Q3 results.

We lowered the minimum order value for free shipping services from 19, RMB 259, RMB for all users.

We continue to see.

Development across many of our operating and financial metrics and we saw a robust performance for our singles day Grand promotion with a double digit order growth and menu innovation.

And also to JD plus members unlimited free shipping for one P products.

As always TV dot com customers will continue to enjoy our premium so call. It 211.

The successful promotion further amplified our efforts to bring lower cost higher efficiency and superior customer experience to our customers and business partners.

Same and next day delivery services.

<unk> live streaming session hosted by our own category managers proved very popular with users in France during our singles day promotion.

This is J D 's operating philosophy, which we have been committed to since day one.

What's unique about <unk> is that not only are the category managers to experts for the products they bring to the show.

User experience is at the center of our operating philosophy.

And we have got extra mile to further improve our user experience.

Also empowered itt's supply chain capabilities.

Let me share some recent highlights.

And they don't charge any additional commission fees.

In Q3, we expanded free shipping coverage for our users by leveraging our improved logistics capabilities.

This means that they can bring a great selection of products to our users at excellent prices.

We lowered the minimum order value for free shipping services from 19 on RMB 259, RMB for all users.

Customers and brands have embraced this new live streaming format.

They benefit from the streamlined cost structure and superior value.

And also to <unk> plus members unlimited free shipping for one P product.

As a result.

As always TV dot com customers will continue to enjoy our premium so call. It 211 are yoyo same and next day delivery services.

Our live streaming sessions hosted by category managers attracted over 380 million viewers.

During the promotion period.

<unk> live streaming session hosted by our own category managers proved very popular with users in France during our singles day promotion.

We also stepped up our after sale customer service by increasing the coverage of our industry, leading instant refund and one click for best price guaranteed services Shenzhen <unk>, both of which are increasingly resonating with our users.

What's unique about <unk> is that not only are the category managers the experts for the products they bring to the show.

All these efforts to improve our customer service quality and user experience has been reflected in higher user engagement.

They are also in Paul at ITT supply chain capabilities.

And if they don't charge any additional commission fees.

This means that they can bring a great selection of product to our users at excellent prices.

As we saw accelerated growth of user order frequency in Q3 compared to the past six quarters.

Kosmos and Brad have embraced this new live streaming format as they benefit from the streamlined cost structure and superior value.

Beyond the recent efforts to improve user experience.

We are very focused this year on in.

Investing in long term key capabilities to drive sustainable growth, namely our strategy to build a differentiated platform ecosystem and improve everyday low price or LP mind share.

As a result, our live streaming sessions hosted our category managers attracted over 380 meeting be away.

Total during the promotion period.

To spend some time to share with you our thinking on why this is the right direction for JD and on the progress we have made.

We also stepped up our after sale customer service by increasing the coverage of our industry, leading instance, refund and one click for best price guarantee services.

Let me start with our platform ecosystem.

<unk> class 18th Apple both of which are increasingly resonating with our users.

Providing the best in class user experience is at the heart of everything we do.

All of these efforts to improve our customer service quality and user experience has been reflected in higher user engagement as we saw accelerated growth of user order frequency in Q3 compared to the past six quarters.

Our platform ecosystem allows us allows our <unk> and third party business to grow in a complementary and sustainable manner and together serve our customer better.

Ensuring both <unk> sellers, followed the same operating philosophy and can compete and thrive.

Beyond the recent efforts to improve user experience.

Handset platform ecosystem.

We are very focused this year on investing in long term key capabilities.

<unk> is best able to provide consumers with a superior user experience.

Capabilities to drive sustainable growth, namely our strategy to build a differentiated platform ecosystem and improve everyday low price or E. L. P. Mindshare.

As such we never drive one business model at the cost of the other.

On the <unk> side Cds, leading supply chain capabilities and scale advantages provide users high quality products.

I'd like to spend some time to share with you our thinking on why this is the right direction for J D and on the progress we have made.

At competitive prices and greater customer experience.

This will always be a key offering and differentiator for JD.

Let me start with our platform ecosystem.

Our threep marketplace gives us the flexibility to expand into new product categories.

Providing the best in class user experience is at the heart of everything we do.

Our platform ecosystem allows us allows our <unk> and third party business to grow our complementary and sustainable manner.

It is difficult to achieve the same level of efficiencies, we have under our <unk> model.

So in the face of consumers' rapidly evolving demand and increased price sensitivity our therapy marketplace allows us to efficiently serve customers with a diverse selection.

And together serve our customer better.

By ensuring both when tier three peat sellers followed the same operating philosophy and can compete and thrive in a comprehensive platform ecosystem J.

What is our approach.

<unk> is best able to provide consumers with a superior user experience.

The sense of what we're doing to build our platform ecosystem can be summarized in the following key steps.

As such we never drive one business model at the cost of the other.

The addition to our one key suppliers is equally important to encourage our threep merchants to embrace and adhere to the same operating philosophy that we have been committed to over the last 20 years.

On the lumpy side Tvs, leading supply chain capabilities and scale advantages provides users high quality products.

At competitive prices and greater customer experience.

To do this we are investing tremendous efforts to improve our platform ecosystem, including traffic allocation algorithm operating tools and infrastructure to encourage and empower the <unk> merchants, we're all setting clear rules and stepping up our platform governance.

This will always be a key offering and differentiator for J D.

And our three P marketplace gives us the flexibility to expand into new product categories, where it is difficult to achieve the same level of efficiencies we have under our <unk> model.

Efforts to enhance risk management.

So in the face of consumers' rapidly evolving demand and increased price sensitivity, our threep marketplace allows us to efficiently serve customers with a diverse selection.

How about this.

We're working to ensure that positive behaviors of Threep merchants are rewarded the main goal is to incentivize <unk> merchants to follow our operating philosophy and align their performance with our commitment to improving user experience.

What is our approach there.

But your sense of what we are doing to build our platform ecosystem can be summarized in the following key steps.

For example, we have established a scoring system based on the key elements underpinning our operating philosophy.

Yeah addition to our one key suppliers is equally important to encourage our threep merchants to embrace and adhere to the same operating philosophy that we have been committed to over the last 20 years.

Including price competitiveness.

And service quality as well as store rating.

Score system applies to both our <unk> merchants.

To do this we are investing tremendous efforts to improve our platform ecosystem, including traffic allocation algorithm operating tools and infrastructure to encourage and empower the three P merchants, well setting clear rules and stepping up our platform governance.

Fair and transparent way and merchants are able to review and check their scores across different aspects.

When they embedded.

We then impact these scores in our traffic distribution algorithms to create a virtuous cycle.

To enhance risk management.

We continue to strengthen our <unk> business model in the areas, where it generates higher efficiency and deliver better user experience.

Top of this we are working to ensure that positive behaviors of Threep merchants are rewarded the main goal is to incentivize sleepy merchants to follow our operating philosophy and align their performance with our commitment to improving user experience.

At the end of the day. It is the choice of our users to pick either <unk> or <unk>.

I want to reiterate that we will now to drive repeat development after the cost of our MP business.

For example, we have established a scoring system based on the key elements underpinning our operating philosophy.

What we do is to create a platform ecosystem that enables both <unk> three P to compete a firewall grant and better serve our customers.

<unk> price competitiveness.

10, and service quality as well as store rating.

Looking to how we track and measure our progress.

Core system applies to both our M P or three P. Merchants, you know fire and transparently and the merchants are able to review and check their sports across different aspects.

To evaluate the long term success of our platform ecosystem, we look at a set of key operating metrics.

We were encouraged by the continued rapid growth of active therapy merchants and growth of Threep orders and active users who purchased from our <unk> merchants in Q3.

When they embedded.

What we then impact these scores in our traffic distribution algorithm to create a virtuous cycle.

We continue to strengthen our one <unk> business model in the area.

Even though <unk> monetization is not our priority in the near term we have been delighted to see continuous double digit growth in <unk> advertising revenue.

Each generates higher efficiency and deliver better user experience.

At the end of the day. It is the choice of our users to pick either one P or three P.

Especially driven by the improving engagement of new merchants onto this platform.

I want to reiterate that we will announce drive three P development after the cost of a lumpy business.

On one side, we were happy to see improved user experience as evidenced by increased users MTS.

What we do is to create a platform ecosystem that enables both one P or three P to compete a firewall grant and the purchase of our customers.

Built into this unique platform ecosystem is a long term commitment and we are still at the early stage of realizing its potential.

Looking to how we track and measure our progress.

We believe the set of operating metrics are moving in the right direction.

To evaluate the long term success of our platform ecosystem when look at a set of key operating metrics.

We are determined to continue our efforts to strengthen our capabilities and build our unique platform ecosystem.

We were encouraged by the continued rapid growth of active therapy merchants and growth of Threep orders and active users who purchased from our three P merchants in Q3.

Now let me continue to elaborate on the thinking behind our efforts this year to improve our <unk> mind share.

First what is low pricing in this case.

Even though <unk> monetization is not our priority in the near term.

At TD low price means improving our price competitiveness across different product categories.

<unk> been delighted to see continuous double digit growth in <unk> advertising revenue.

Particularly the branded product and expanding selection for white label products to cover a wider and wider price range in order to shore up what we lacked in the past.

Actually driven by the improving engagement of new merchants onto this platform.

On one side we.

We're happy to see improved user experience as evidenced by increased users N P. S.

I want to clarify some of the market misunderstanding here TD is now shifting our focus away from our core competency in branded products or serving the top tier market.

Built into this unique platform ecosystem is a long term commitment and we are still at the early stage of realizing its potential.

On the contrary, we are further enhancing this trend by improving our price competitiveness.

We believe the set of operating metrics are moving in the right direction.

We are determined to continue our efforts to strengthen our capabilities and build our unique platform ecosystem.

Also we will never alone any bad quality or counterfeit product onto this platform well, we provide low price.

Now let me continue to elaborate on the thinking behind our efforts this year to improve our E. T. L. P mindshare.

Our low price commitment, that's not meaning to pursue absolute slow prices at the expense of other aspect of user experience such as product quality and service.

First what does low pricing in this case.

At G D no price moves improving our price competitiveness across different product categories.

While we need to improve our price competitiveness.

Price competitiveness is the most important value proposition for our retail business.

Particularly the branded product and expanding selection for white label products to cover a wider and wider price range in order to shore up what we lacked in the past.

And one of the most important pillars update these customer centric philosophy.

Our focus on price competitiveness drives us to continually strengthen our one supply chain capabilities improve the efficiency and sharpen our abilities to foster.

I want to clarify some of the market misunderstanding here TV is now shifting our focus away from our core competency in branded products or serving the top tier market.

Cross platform ecosystem.

On the contrary, we are further enhancing this trend by improving our price competitiveness.

We're healthy competition among merchants and suppliers are encouraged.

All these drive better user experience, which is key to our long term success.

Also we will never alone any bad quality or counterfeit product on Jd's platform, well, we provide low price.

Both our <unk> marketplace play a critical role in this.

Our low price commitment that's not me to pursue absolute slow prices. After the expense of other aspect of user experience such as product quality and service.

In our <unk> retail business, we are relentlessly driving down costs in <unk>.

Proving operating efficiency, along our supply chain through technology and scale and passing on the efficiency gains to our customers.

Why do we need to improve our price competitiveness.

This is a sustainable way to ensure price competitiveness and enable us to fulfill our commitment of offering easy LP for our great products and service.

Price competitiveness is the most important value proposition for our retail business.

And one of the most important pillars of Jd's customer centric philosophy.

A key part of our low price strategy is focused on one key retail business, especially on branded products.

Our focus on price competitiveness drives us to continually strengthen our one P supply chain capabilities improve the efficiency and sharpen our abilities to foster a prosperous platform ecosystem.

To supplement this on the <unk> side, we aim to onboard merchants that offer diverse product selections covering a wider price range.

We are healthy competition, among merchants and suppliers are encouraged.

Merchants are rewarded for offering low prices, great selections and good services to our customers based on the positive traffic feedback mechanism that we are building.

All these drive better user experience, which is key to our long term success.

Both are one tier three P marketplace played critical role in this.

Since the beginning of this year, we have launched a series of new initiatives to enhance our value creation for customers.

Our <unk> retail business, we are relentlessly driving down costs.

Moving operating efficiency, along our supply chain through technology and scale and the passing of the efficiency gains to our customers.

Our category manager that life streaming during the singles day promotion was a good example.

Another example is that we continue to enrich the value for menu selection of Threep products within our 10 billion discount program and we saw <unk> contribution to the total of this program increased to over 50% increase.

This is a sustainable way to ensure price competitiveness and enable us to fulfill our commitment of offering easy L. P for our great products and service.

A key part of our low price strategy is focused on one key retail business, especially on branded products.

And lastly, how to track and measure our progress on low price or <unk> building.

To supplement this on the CP side, we aim to onboard merchants that offers diverse product selections covering a wider price range.

We check the trend of key customer metrics, including customer NPS and engagement.

Well the structural change change.

Merchants are rewarded for offering low prices, great selections and good services to our customers based on the positive traffic feedback mechanism that we are building.

<unk> may take longer time to shape.

We are seeing strong early progress in user engagement as evidenced by the double digit growth of order volume on a pool of users.

Since the beginning of this year, we have launched a series of new initiatives to enhance our value creation for customers.

Longer term markets.

You'll also note that growth.

<unk> orders accelerated and outpaced the total order growth in Q3.

Our category manager life life streaming during the singles day promotion was a good example.

All these are strong testaments to our early progress in <unk> mind share building.

Another example is that we continue to enrich the value for menu selection of three products.

We look forward to sharing more we view on the progress of our key initiatives in coming quarters, and we look ahead to the future. We will continue adhere to our operating philosophy and execute our strategy to provide the best customer experience.

We do our 10 billion discount program and we saw <unk> contribution to the total of this program increased to over 60% increase.

And lastly, how to track and measure our progress on low price or E. T. L. P mentioned building.

We believe it will guide us to achieve a high quality sustainable growth and win win value creation for our users business partners shareholders and the society at large.

We check the trend of key customer metrics, including customer NPS and engagement.

Well the structural change change in MTS may take longer time to shape.

We are seeing strong early progress and user engagement as evidenced by the double digit growth.

With that I will turn it over to Ian for our financial highlights. Thank you.

Of order volume on a pool of users.

Thank you Sandeep and Hello, everyone.

Longer term market.

In the third quarter, we delivered a stable top line performance.

You'll also note that growth.

<unk> orders accelerated and outpaced the total order growth in Q3.

Using a mix of gradual macro recovery seasonality and a hybrid.

All these are strong testaments to our early progress in <unk> mind share building.

While we continued our proactive strategic refocus.

Our bottomline maintained healthy momentum with non-GAAP net margin.

We look forward to sharing more with you on the progress of our key initiatives in coming quarters, and we look ahead to the future. We will continue to adhere to our operating philosophy and execute our strategy to provide the best customer experience.

An all time high.

Which enabled us to invest in user experience.

In a way.

As Andy mentioned, we saw improvement across many of our operating metrics.

And we are on the right path to strengthen our core capabilities.

We believe it will guide us to achieve a high quality sustainable growth and win win value creation for our users business partners shareholders and the society at large.

Enhanced product competitiveness and build a platform that allows both <unk> and <unk> to better serve our users even though these efforts may not be fully reflected in the short term financial results.

With that I will turn it over to Ian for our financial highlights. Thank you.

That let me turn to our Q3 financial performance.

Our net revenues grew by 2% year on year to RMB 248 billion in Q3.

Thank you Sandeep and Hello, everyone.

In the third quarter, we delivered a stable top line performance.

Using a mix of gradual macro recovery seasonality and a high base.

Downward revenue mix product revenues were down by 9% year on year.

While we continued our proactive strategic refocus.

Calgary Electronics and home appliances revenue was flat year on year, primarily due to seasonality and a high base from last year does that this category continued to outpace the industry in Q3 and in the first nine months this year.

Our bottom line maintained healthy momentum with non-GAAP net margin.

All time high.

Which enabled us to invest in user experience and sustainable way.

As Andy mentioned, we saw in combined across many of our operating metrics.

Once again it shows our strong user mindshare and robust supply chain with industry, leading service capabilities.

And we are on the right path to strengthen our core capabilities.

General merchandise revenues were down 2% year on year in Q3 as the supermarket category is still recovering.

Enhanced product competitiveness and build a platform that allows both one P. M. Three P to better serve our users even though these efforts may not be fully reflected in the short term financial results.

The decline continued to narrow compared to the first two quarters this year.

We started to see positive signs.

That let me turn to our Q3 financial performance.

Supermarket and fashion related categories.

Such as increased order volume.

Our net revenues grew by 2% year on year to RMB 248 billion in Q3.

Hugo shopping frequency and healthier product mix.

Service revenue grew by 13% year on year in Q3 accounted for 21% of Jd's total revenues.

Breaking down the revenue mix product revenues were down by <unk>, 9% year on year.

By category Electronics, and home appliance revenue was flat year on year, primarily due to seasonality and the high base from last year.

Within service revenue marketplace, and marketing revenues were up 3% in particular therapy advertising revenues. Once again recorded double digit growth for the quarter, which was partially offset by the decline of Threep Commission revenues.

This category continues to outpace the industry in Q3 and in the first nine months this year.

Once again it shows our strong user mindshare and robust supply chain with industry, leading service capabilities.

This is expected short term outcome and is in line with our platform strategy under which we have rolled out a number of cost.

General merchandise revenues were down 2% year on year in Q3 as the supermarket category is still recovering.

Cost reduction measures and operating costs to support routine merchant Onboarding and operation.

The decline continued to narrow compared to the first two quarters this year.

This strategy has produced early result, as we have saw a substantial expansion of active stripping merchant base in the quarter.

And we started to see positive signs from supermarket and fashion related categories.

Such as increased order volume higher user shopping frequency and a healthier product mix.

At the same time, we are also deploying a more effective traffic allocation mechanics for both <unk> and <unk> to ensure better user experience and know how.

Service revenue grew by searching for Canada year on year in Q3 accounted for 21% of Jd's total revenues.

Assay development of our platform.

Turning back to our service revenues.

It just takes and other service revenues grew by 19% year on year in Q3.

Within service revenue marketplace, and marketing revenues were up 3% in particular three P. Advertising revenues once again recorded double digit growth for the quarter, which was partially offset by the decline of three P Commission revenues.

No.

Turning to our segment performance J.

JD retail revenues increased by 1% year on year in the quarter as we continue to see had wings, our short term financial results from our strategic refocus.

This is our expected short term outcome and is in line with our platform strategy under which we have rolled out a number of cost.

We know that our Companys growth has maintained a healthy momentum as evidenced by the continued expansion of JD retail profitability.

Cost reduction measures and the operating cost to support stripping merchant Onboarding and operation.

Gross margin on the fulfilled gross margin increased to record highs in Q3, despite our investment in low prices and user experience such as expanded free shipping.

This strategy has produced early result, as we have sought a substantial expansion of active stripping merchant base in the quarter.

At the same time we.

We're also deploying a more effective traffic allocation mechanics for both one P. M Street P to ensure better user experience and is a healthy development of our platform.

This shows that our low price offerings enabled by our supply chain capabilities and healthy development of our platform instead of only by subsidiary.

Turning back to our service revenues.

JD Retail's non-GAAP operating margin came in at five 2% largely flat year on year as we continue to invest in improving user experience to encourage its stronger user engagement and this will help our long term sustainable growth. We also saw.

It just takes and other service revenues grew by 19% year on year in Q3.

No.

Turning to our segment performance J.

JD retail revenues increased by 1% year on year in the quarter as we continue to see Hot wings, our short term financial results from our strategic focus.

Encouraging trends in user shopping behavior in the quarter.

J D plus member maintained a double digit growth in the group continue to show higher loyalty and <unk>.

We know that our Companys growth has maintained a healthy momentum as evidenced by the continued expansion of JD retail profitability.

<unk> spending power.

Our annual <unk> was eight times of that of non plasma numbers in Q3.

Gross margin on the fulfilled gross margin increased to record highs in Q3, despite our investment in low prices and user experience such as extended free shipping sorry.

JD logistics for a 16% revenue growth year on year in Q3, driven by the acceleration of both internal and external revenue.

This shows that our low price offerings enabled by our supply chain capabilities and healthy development of our platform instead of only by subsidies.

External revenues accounted for 72% of revenues in Q3.

In terms of profitability J D. Power's non-GAAP operating margin was 7% in the quarter same as last year.

JD Retail's non-GAAP operating margin came in at five 2% largely flat year on year as we continue to invest in improving user experience to encourage a stronger user engagement and this will help our long term sustainable growth. We also saw.

Yeah.

Our reported revenues of RMB, two 9 billion up 20% year on year, and our non-GAAP operating loss.

Of 52 million for the quarter.

Substantial narrow down of 83% compared to last year.

Encouraging trends in user shopping behavior in the quarter.

This was driven by better operating efficiency and economies of scale.

J D class members maintained a double digit growth and as a group continue to show high loyalty and <unk>.

The on demand retail is still an important pillar for J D.

Quarter, the number of offline stores, that's cooperated with stop and shop now.

<unk> spending power.

The annual our pool of eighth time of that often plus members in Q3.

Pandit from around 300000 to over 400000, providing more than 2000 cities in context.

JD logistics, a 16% revenue growth year on year in Q3, driven by the acceleration of both internal and external revenue.

Demand retail services.

Covering a wide range of categories.

External revenues accounted for 72% of revenues in Q3.

Lastly, revenues from New business Awards RMB, three 8 billion in Q3 down 24% year on year due to the scale back of our international business.

In terms of profitability J D. Power's non-GAAP operating Margaret we're calling 7% in the quarter same as last year.

<unk> operating loss was RMB 139 million in the quarter. Notable now down of 85% from a operating loss of 953 million a year ago.

Todd I reported revenues of RMB, two 9 billion up 20% year on year, and our non-GAAP operating loss.

Of 32 million for the quarter.

Substantial narrow down of 83% compared to last year.

Coding the gain on disposal of JD properties assets in Q3 last year.

This was driven by better operating efficiency and economies of scale.

Moving to the consolidated bottom line, we recorded RMB 10, 6 billion non-GAAP net income attributable to ordinary shareholders in Q3 up 6%, even after a high base in the same quarter last year.

The on demand retail is still an important pillar for J D.

Quarter, the number of offline stores, that's cooperated with stop and shop now.

<unk> from around 300000 to over 400000, providing more than 2000 cities in context with on demand retail services.

non-GAAP net margin increased by 17 six year on year to a new record of four 3%.

Finally, our LTM free cash flow.

Covering a wide range of categories.

End of September was RMB 39 billion, an increase of 18% from 33 billion as of the end of June and 52% from 26 billion at the end of September last year.

Lastly, revenues from new business was RMB, three 8 billion in Q3 down 24% year on year due to the scale back of our international business.

<unk> operating loss was RMB 139 million in the quarter notable narrow down of 85% from a operating loss of 953 million a year ago.

This was driven by our improved profitability and further optimize cash conversion cycle.

But at the end of Q3, our total cash balance, including cash and cash equivalents.

Coding the game on this.

Also of J D properties assets in Q3 last year.

Restricted cash.

Short term investments.

It's up to a total of RMB 250 billion.

Moving to the consolidated bottom line, we recorded RMB 10, 6 billion non-GAAP net income attributable to ordinary shareholders in Q3 up 6%, even after a high base in the same quarter last year non-GAAP net margin increased by 17 six yeah.

Excluding interest bearing debt and accounts payable our net cash balance was RMB 15, 8 billion by the quarter end.

To conclude.

We have seen a set of encouraging trends during the quarter and well continue to firmly execute our strategy on low prices and powerful ecosystem to provide better user experience.

On year to a new record of four 3%.

Finally, our LTM free cash flow as of end of September. It was RMB 39 billion, an increase of 18% from 33 billion as of the end of June and 52% from 26 billion at the end of September last year.

This will position us for long term sustainable growth.

With that I will turn it over to Sean Thank you.

Thank you Ian.

For the Q&A session. You are welcome to ask questions in Chinese or English and our manager will answer your question in the language you ask will provide English translation with necessary for covenant purpose only.

This was driven by our improved profitability and further optimize cash conversion cycle.

But at the end of Q3, our total cash balance, including cash and cash equivalents.

In the case of any discrepancy please refer to our management statement and the origin of language operator, we can open the call for Q&A session.

Restricted cash and short term investments added up to a total of RMB 215 billion.

Thank you.

Excluding interest bearing debt and accounts payable our net cash balance was RMB 50 billion by the quarter end.

A question and answer session of this conference call will start in a moment.

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

To conclude we.

We have seen a SaaS.

If you have more than one question. Please request to join the queue again. After your first question has been addressed.

Encouraging trends during the quarter and the world will continue to firmly execute our strategy on low prices and powerful ecosystem to provide better user experience.

If you wish to ask a question. Please press Star then one on your telephone and wait for your name to be announced.

This will position us for long term sustainable growth.

If you're on a speakerphone please pick up your handset to ask your question.

With that I will turn it over to Sean Thank you.

The first question today comes from Thomas Chong with Jefferies.

Thank you Ian.

Please go ahead.

For the Q&A session. You are welcome to ask questions in Chinese or English and elementary will answer your question in the language you asked will provide English translation with necessary for covenant purpose only.

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In the case of any discrepancy please refer to our management statement and the origin of language operator, we can open the call for Q&A session.

Woman, so very light.

Three P.

<unk> the JMP.

Pension.

Thank you Shannon.

Thank you.

If your quality issues.

A question and answer session of this conference call will start in a moment.

Does it do to kind of consider cone Santa John Hurley Jr.

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

JD retail dosage and don't show the CEO just quickly getting back to your franchise.

If you have more than one question. Please request to join the queue again. After your first question has been addressed.

Behold.

That's it.

Okay.

If you wish to ask a question. Please press Star then one on your telephone and wait for your name to be announced.

As he said how much the T cell.

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If you're on a speakerphone please pick up your handset to ask your question.

The first question today comes from Thomas Chong with Jefferies.

Please go ahead.

Okay. So what it does.

<unk> shared Guangxi woman three-peat agenda, one is frankly, you're finishing each of them.

Jumping on attaching to John Doherty vintage <unk> season, three P. Shanghai auto negotiation that <unk> seen in personnel with me at Pepperdine Nash element competitive.

So does that assume a higher peak made it sounds like you guys are nib.

A woman to be like a three peat.

<unk> of JMP.

Yeah, Simeon cooler cheek to Peter jumped out that compassion and go to $1 <unk> trillion continued I think Joan who control Novato. So you don't have a 2 million quote I like them.

Pension.

Well then.

Commodity issues.

So what does it do to kind of consider cone Santa <unk>.

Yes.

Thanks, Thomas our adjustments of the question as I mentioned earlier.

A junior.

JD retail Joseph Michelle if you could create a franchise shops.

The platform ecosystem has always been one of <unk> key strategic programs, both from the corporate level and also to the retail level.

How do you.

Appreciate it.

Yeah.

Yeah.

And we are continuously refining Judy <unk> platform ecosystem ecosystem. This aims to realize this value proposition and establish a unified business philosophy, followed by both <unk> and Threep merchants.

But that as you said how much he so lastly that take a killer argument you don't know what I forgot about Nashville, San Antonio work Untie, some powder two ships Shanghai, TCE Cheetos shoreline casino willing teatime, chlamydia harshly and she'll come in.

And we consistently and housing platform infrastructure and tools to ensure that those <unk> merchants on JD has ample resources.

Julian who they tell me it's on sale now a woman that tissue banks Shang our mentioned on Casa adapting passion has seen shows canceled on attaching to John Dorothy <unk> season, three patients out on a call attrition that <unk> seen in personnel with me at Pepperdine lunch element competitive.

Competition in the shared growth opportunity ultimately delivering an enhanced user experience for all of our customers.

That's in Atlanta with me and she took MCM Paula <unk> casual to the new tone <unk> syndrome, CIO tissue transactions out of which <unk> <unk>.

G C Yung who'll take us through Peter jumped out that compassion and go to $1 <unk> trillion continued I think Joe or quint when they find out. So you don't have to put out like we don't show that yet.

<unk> completing in going to semi test in adult I don't like talking with us and don't impassioned applications out shortly hopefully a Shanghai showdown totaling 72 that all of this about CCAR shipping pneumoniae counsel Kendall.

Thanks, Thomas our adjustment of your questions as I mentioned earlier.

The platform ecosystem.

Always been one of <unk> key strategic programs, both from the corporate level and also duty retail level.

<unk> to the total that sounds actually on a tissue boxes finished with its also youll tissue Bank Shantou Xiaomi Tcl Dunkin' later, Papa John's Ash would be a platform for some time I feel for you the transactional items for some time.

And we are continuously refining Judy <unk> platform ecosystem ecosystem. This aim to realize this value proposition and establish a unified business.

That's a fee followed by both <unk> and Threep merchants.

<unk> had to put a dollar figure kind.

And we consistently and housing platform infrastructure and tools to ensure that those 1000 merchants on JD has ample resources.

<unk> seen that goes how the team functions is I put on the turns out I'll jump out.

And throughout this year, we have streamlined the merchant onboarding processes.

Competition in the shared growth opportunity ultimately delivering an enhanced user experience for all of our customers.

The support for the new merchants, especially small and medium sized sellers and establish clear.

That's in Atlanta with me and she took MCM Paula casual to them at home.

Provided more personal tools and witnessed a historic high in both total.

I'll, let Dave syndrome, CIO tissue don't touch on kind of what share do you think comes out to Cedar Creek.

We are pleased to see that the number of customers.

All are competing and going to semi test and I don't I don't like talking without syndrome can touch on that as he has jumped out shortly hopefully near Shanghai surely anthracite sensitive without all of these should see Kashi team pneumonia constant Kendall pick a candidate.

Maintaining a triple digit growth rates, notably significantly.

Our merchants in a category of supermarket fashion and home goods.

Additionally, the number of active merchants.

Oh that sounds actually on a tissue boxes hamish with its own so youll tissue Bank Shantou Xiaomi Tcl Dunkin' later, Papa John's Ashworth effect won't be down for some time I feel for you that shrunk actually I think that's what comes out.

It's accelerating with an increasing number of new merchants gradually finding effective operating strategies to.

Upgrade and J D and empower their sales growth.

You do that sometimes as I can go on some hard to put a dollar figure commentary you've seen that you always have that.

Somehow let's say to me it hit our two single women since I think jumped out of China.

Kidney function.

That turned out I'll jump out.

Total debt at what you cannot see the <unk> pumps and has sometimes been senior procurement antenatal sure. Thank.

And throughout this year, we have a streamlined the merchant onboarding processes and increase the support for the new merchants, especially small and medium sized sellers and establish clear.

Sure.

Ill repeat a controversial tissue tissue that functionality should somehow magically.

On the <unk> comment that 'twenty two type of alternative call as I just mentioned in my script.

Provided more attritional tools and witnessed a historic high in both total.

Our ongoing investment in support does not prioritize short term therapy monetization.

Yeah.

We are pleased to see that the number of.

Turning a triple digit growth rate notice you can notice.

Have also observed continued.

Double digit growth in our three key advertising revenue.

I'd like to go to merchants in the category of supermarket fashion and home goods.

Thanks to our increasing engagement of new merchants.

So when you put it out on our EMEA kind of a tissue. That's a great number of women took a chunk out and sell that.

Additionally, the number of active merchants.

Accelerating with an increasing number of new merchants gradually finding effective operating strategies to upgrade and J P and empower their sales growth.

She told me that you see that competition.

<unk> got some that <unk>, let him comment a bit on time and from the users use the best performance. We've received positive feedback on the <unk>.

So somehow was saying to me it hit our two XI single women since that I think comes out of China.

Penetration rates of users shopping from three P. Merchants continue to increase year on year and BP order volume also achieved healthy year on year growth.

Total debt at what you cannot see the data sometimes can have some kind of bim SR procurement on tomato sure.

The potential panel show among Kochi to allow so many lidar transit at Hoyle pond cell number according to them to try the compassion high <unk>.

That's what we are kind of three pillars, cacau show, who tissue tissue that functionality should it turns out not to get greedy I found out of synch on the outcome and that's how you do that we're trying to kick off as you just mentioned in my script, while our ongoing investment in support cause not prioritize short term therapy monetization.

SEDAR SEDAR SEDAR.

Going into the phone sandbox P&L Wolfgang Sauer collateral now to other countries, who are women that <unk> don't have to go through.

Thanks to the quality of how quickly or how has that acquisition closing number to the T cell that want me away tissue touches upon country chicken to achieve normalization down at two turns out to see that turned out routine core competency in Shanghai Shanghai to treat aren't seeing her potthoff take a shot at a conference.

We have also observed a continued tough.

<unk> digit growth in our three key advertising revenue.

Two hour increasing engagement of new merchants.

So when you put it out on our EMEA kind of let's see that's a great number of women took a chunk out and filter you should or shouldn't told me that she sees that competition.

Yes.

The platform ecosystem.

In the past two to three years in our long.

Some of that in the language it I'll, let him comment a bit on time and from the users use the best performance. We've received positive feedback on the penetration rate of users shopping from three P. Merchants continue to increase your own weird and could be order volume to achieve healthy year on year growth.

Long term investment direction and.

Our unique.

Aspire attributing a unique JV style ecosystem. This is an ongoing project.

And still we are in the early stage.

And there's plenty of room to continually improve our governments and toured our platform ecosystem.

The potential kind of swollen Kochi to allow so many lidar transit at her phone cell.

We are also making all of our movement to create a clearer growth path and a fair business environment for merchants promoting the mutual prosperity and the development of both <unk> and Threep businesses.

Coating too long to tell the compassion high when it comes to SEDAR SEDAR SEDAR, a shingle and digital phone come back months P&L, Wolfgang Sauer collateral and to other countries who are women that is you don't have.

Nonetheless <unk>.

So you should see that come to your house, Chile, Chris are you how has that acquisition closing.

Take a chunk of allied uncertainty the chicken coop fashion. So that's equal now pass at a woman compassion to prevent chance 20 kind of what we achieved repeat are in bankruptcy and beta two <unk> see them starting to go ahead sorry.

To the T cell that wouldnt be adequate tissue tactical one country chicken. So as you know we normally shut down at two turns out to see that turned out routine core competency in Shanghai, Shanghai typically don't see a pop I'll take a shot at a conference I don't project.

And regarding our people want to shop for one P or three this will be a natural outcome of our choices from other users and as we see be glad you mature however.

The platform ecosystem has in the past two to three years in our long term investment direction and.

Our unique we are aspiring to be a unique J D style ecosystem. This is an ongoing project.

Our platform ecosystem I think in the long run the share of <unk> <unk> and <unk> will eventually surpass that of lumpy, but of course this will be an ongoing process.

And still we are in the early stage golf and country wants to continually improve our governance and the tools our platform ecosystem and we are also making all of our commitment to create a clearer growth path and a fair business environment for merchants.

Women, though of course, it will be all should homecourt for attempting currency that might put you on that we don't have CTO photo and kick out yet to its onshore maintenance tissue Cleveland situation that can be out you don't need to eat so our core objective is to meet the diverse needs of different users to a REIT.

Promoting the mutual prosperity and the development of both <unk> and Threep businesses.

Now my <unk>.

Each product supply continuously enhancing our user experience.

Sean satellite homes reality, the chicken coop fashion. So that's equal now my pass at a woman compassion to prevent churn 20 kind of what we see as <unk> car T and b the <unk> telco, let's see I'm going to go ahead sorry.

It would be one of our essential drivers for sustained growth of our long term revenue our revenues and profits.

So you're right I mean that you are currently not thinking our Medici telephone call now Sudan, I tell me kind of interim CEO the tool it sounds like the tornadoes hit harder than me.

And regarding our people want to shop for one P or three this will be a natural outcome of her choices from other users and as we see the Grad you mature on our platform ecosystem I think in the long run the share of Greek yogurt and TMZ will eventually.

Those who are getting into is noncash pension pseudonym show. The CEO. Eli Yes, you guys are trying to achieve <unk> hernia, Doug Guzman shutdown for proton beam Park. Some of your title and Showtime Bridge to Sidney who will talk about that.

Power and they don't want new procedures does it we don't like to ensure that you would've seen some projects now let me ask you Tom Cat <unk> syndrome, Tecogen at me and they tune into your franchise also to the consortium now it sounds you and pass them back on steps that got laser tissue pathway.

Surpass that of one P. But of course this will be an ongoing process.

Well, there's no question, we'll be all shipping from food attempting currency that mine. So that we don't have CTO quota and kick out they don't yet see it onshore maintenance tissue Cleveland situations are to me are two don't meet G. So all our core objective is to meet the diverse needs of different users who are reached.

Yeah, and then to answer the second part of your question.

Now today that Mr. <unk> will leave the role of CEO of JD retail for another appointment by the company.

Product supply continuously enhancing our user experience this will be one of our essential drivers for that.

<unk> assumed the role of CEO of JD retail in September 2021 important department of external environment and industry. He has led the team to successfully expand collaborations with business partners and the slumping user mindshare, making significant.

And growth of our long term revenue our revenues and profits.

So you know I mean that the occupancy that's in our legacy telephone call now Sudan I tell me timing show see older tool. It sounds like the tornadoes hit harder than me Sudan are arguing into isn't cached attention to ensure the CEO. Eli I guess you guys are trying to achieve the Viper punchy in California, Doug Guzman shutdown for proton.

<unk> to the business.

We truly appreciate Mr seems dedication and I believe.

Two to play a vital role as other positions ITV dot com.

Uh huh.

And Showtime did Sheila you could talk about that.

Savings Yoga wear now Assortments will answer your questions.

On a 10th album and they don't want young for Ctrip does it read I'm not.

<unk>, Yeah shifting don't hit hard to argue with the tool now.

The telecom projects now let me ask you Tom Clancy a syndrome.

T cell in a way it down tissue will be treating the initial <unk> for sundar terminate a loyalty member to treat only in challenging times.

Could you allow me and they tune into year without transfer protocols now it sounds you and pass them back and stuff to talk about later on tissue factor, which went out this morning.

Quite a C at home.

Yeah, and then to answer the second part of your question, we've announced today that Mr. Sami.

And to the group here is obviously, the very core business of JV and contributes to the highest proportion of our total revenue. It is also the cornerstone for us one exploring our diverse businesses.

I will leave the role of CEO of JD retail for another appointment by the company.

These are interesting assumed the role of CEO of JD retail in September 2021 important appointment of external environment and industry. He has led the team to successfully expand collaborations with business partners and the slumping user mindshare, making significant.

So I will continue to drive the execution of our retail strategy and strengthen synergies across business units.

They ensure the 10 million of cutaneous, though Shlomo he tried to ICC, Tony <unk> contributing that working.

Our pension Tcf, we tend to try out the Chinese on the 20th worthy.

Fusion to the business are.

The contour. So you term healing switch on his iPhone kind of Chapel Hill.

We truly appreciate Mr seems dedication and I believe them.

JD retail strategies and set up by our strategy execution community does he adds a SEC and I'm personally involved in the discussions and implementation of these strategies. So there will be no change to <unk> retail strategy.

<unk> to play a vital role as other positions RTD dot com.

Savings Yoga wear now Assortments, you don't see a consensual rich and difficulty of war, yeah shifting don't hit hard to hang out with us.

Now my T cell I know it sounds as she will be treating them show you saw AT&T for Sundar terminate a loyalty member to treat only shown me how youre quite a stay at home.

Sure.

Thank you Thomas operator can we have the next question.

The next question comes from Robert Jones with Goldman Sachs. Please go ahead.

And really group here with obviously, the very core business of JV and contributes to the highest proportion of our total revenue and it's also the cornerstone for US one exploring our diverse businesses and this though I will continue to drive the execution of our retail.

Yes.

Sandy Sean.

I've seen plenty of time, Jay <unk> of Chardan.

So <unk> core GMB, Joe to kind of beat with CJ quite a core GMB Esher Ching Kwan Martina Cheung Kong Clubwoman some key.

Strategies and strengthen synergies across business units.

They ensure the 10 million of cutaneous and I'm sure many times, the ICC, Tony and tie back when considering that our.

You guys have heard from Paul.

<unk> got our seniors.

<unk> Teng 20 out of the Chinese on the TCM.

Paul mentioned to Bryan shelf.

Okay. So you don't healing Showtime is I phone kind of chapel Hill.

Under each of deepened Josh elements actually Joshua Cheung Kong shop will not sure.

JD retail strategies and startup of our strategy execution, our community because he acts as D C and a.

Hey, John.

Boucher settlement in January.

Sure.

Currently involved in the discussions and implementation of these strategies. So there will be no change to <unk> retail strategy.

And looking on two <unk> levered.

Okay, Let me briefly translate the question.

Sure.

Thank you Thomas operator can we have the next question.

Ronald wants to ask in terms of.

The next question comes from Robert Jones with Goldman Sachs. Please go ahead.

Strategy adjustment.

K PAA adjustment and team restructuring after this adjustment what you have seen in terms of core JV growth trend and how is your <unk> business been trending and the second question was what's your basic assumption for accrual and consumption.

Yes, Sandy Sean.

You don't seem to have plenty of time Sanjay <unk> Nomura.

So Peter would you like to call Cora GMB, Joe to kind of beat with CJ <unk>.

Next year.

<unk> Ching Kwan Martina Cheung Kong Clubwoman some key.

And based on that what is your strategy to maintain.

Did you guys have heard from Paul.

Each of you your woman to Egypt.

Your core business or categories market share and how.

Ah well.

Well mentioned to Bryan shelf.

You said, Steven Joshua elements actually Joshua Cheung Kong shop will not sure.

How do you balance between growth and profitability.

Emmanuel so much Andrea.

Okay.

Boucher settlement agenda.

Hum.

Sure.

Jeremy will choose to negotiate or the trends or the foregone Shirley.

Okay great.

Great.

Sure.

So on the cogeneration Porsche Volvo and call you surely Josh rulings overall Dod.

Okay, Let me briefly translate the question.

Ronald wants to ask in terms of.

Goldcorp sung Jong.

And based on that although the possible partners.

Strategy adjustment.

PPI adjustment and team restructuring.

The rate of our corn GMB has been significantly higher than the total retail sales of consumer goods and in this quarter, our corn GMB achieved single digit high single digit growth, which was higher than total retail sales and the online retail sales of physical goods.

After this adjustment what you have seen in terms of core JV gross trend and house you RSVP business been trending and the second question was what's your basic assumption for accrual and consumption for next year.

No Sandy womens Shanghai to do things on the food Hall, Shanghai, So the throughput.

And based on that.

What is your strategy to maintain.

<unk> Shanghai food of course, with Punjab or trigger people to throw some gasoline cargoes in Ghana, one caution I'm, sorry, Q also kyocera Congo for Shanghai food.

Your core business or categories, our market share and how.

How do you balance between growth and profitability.

Yeah sure Josh No culture, not only why gaucher goldmine pulp.

Okay.

Go to Ronald call, Jeremy the coaches political upheaval the sensor adult thoughtful guy here shortly.

Who should go to longer term.

So <unk> got another $10 or so in the last quarter.

So on the call Jeremy culture at Dover and call you shortly.

Sure. It's the rapid growth of the Onboarding merchants and we also witnessed accelerated expansion of active merchant in Q2 and Q3 at the same time user shopping from three P. Merchants grew faster than total users in the past two quarters.

So no doubt.

Goldcorp sung Jong.

And based on that although the possible Cortes.

The rate of our corn GMB has been significantly higher than the total retail sales of consumer goods and in this quarter. Other corn GMB achieved single digit high single digit growth, which was higher than total with yourselves and the online retail sales of physical goods.

And also if you're seeing a corresponding high those things I'm sure for all of them are you teed off.

Kind of going broader Shanghai for open door, the popular <unk> Hall, a whole function of GA trial highways bumpy thing done.

Well Sandy women's our Shanghai to go offerings online food scores Shang Jostled toothbrush, Shanghai food of course, with some job, but oh trigger people to Shanghai for years for Chrysler.

E Sun T G I read a garden swoosh is Xiang agenda.

We believe the current progress of the platform ecosystem is in line with our expectations.

While non caution I'm, sorry, Q also killed sangria kind of cool, Yeah, Shanghai show that.

We're seeing more active use of active merchants as more users.

Yeah sure Josh No culture, not only why gaucher goldmine popped, a Google Yahoo short core Chilean let's see yeah adult all these data and the change of control.

It takes time to convert them to <unk> and the GMB growth.

The whole Hypersound Tangshan in South, Georgia woman diluted homegrown path, you're going to be a woman who can go those trends.

In the last quarter, we shared the rapid growth of the Onboarding merchants and we also witnessed accelerated expansion of active merchant in Q2 and Q3 at the same time user shopping from three P. Merchants grew faster than total users in the past two quarters.

Okay.

<unk> the notional target because he said how far does not <unk> like.

Like your <unk>, yet so I feel under stress that we're committed to providing our users with more choices and cheaper prices through <unk>, we are pursuing a sustainable and healthy ecosystem, allowing our one P. M. Three P. Together to provide users with a better.

Sure.

Well, maybe I'll weigh in on social Stern drive cars wanting those things I'm sure for you teed off.

Condor Condor the Shanghai for Oakland.

Popular chenzhou a whole a whole sanction on GA trial hallways bumpy thing done E Sun T. G I read a gallstones foolish as she our shoes you end up.

Shopping experience.

Okay.

Okay.

Lastly, guys on other gathering spot.

We believe the current progress of the platform ecosystem is in line with our expectations, we're seeing more active use of active merchants and more users.

Nashville, C&I tell them in kind of light.

<unk> since it turns out she transient shoe accretion somehow attached to that channel.

<unk>.

Got it.

Together with immune <unk> tied in now so it does seem that goes on to purchase <unk>.

Takes time to convert them to I think the orders and the GMB growth.

The whole hypersound homogeneous abstergent woman diluted homegrown path, you're going to be a woman who can go to those trends.

<unk> not quite sure hopefully for quite argument and sulfate into year.

Totally immune to see if I can jump out.

Okay. The Doctor a woman for each of those sure somehow.

Total tissue architecture, how can they use.

Somehow that because he said how fragile the EPA for something.

Soon <unk> turns out that she said two important wound up. So you were mainly seen in Turkey is healthy actually pulp shipment pool accretion that has ship Vincent naturally tweet on Katanga.

Like your four key Guangzhou Hangzhou 40, yet so I do want to stress that we're committed to providing our users with more choices and cheaper prices. So it was three P. We are pursuing a sustainable and healthy ecosystem, allowing a one P. M. Three P. Together to provide users with a better.

Well I think it turns out that you don't need a cheeky.

And for the second part of your question.

With the recovery of China.

Shopping experience.

Growth, though the speed is a slower than we anticipated at the beginning of the year.

Okay.

Yeah.

Lastly, guys on other gathering spot.

So and also at the same time driven by a series of effective policies supporting assumption employment private enterprises and the property sector, we anticipate that our cause.

I'm not sure I tell them I kind of like pension gratuity turns out <expletive> transient shoe accretion somehow attached to that.

<unk>.

Shinnecock creeping into your cheetos, probably tied in now so it does seem that course downtown purchase central cellphone now both quota share hopefully for quite a woman and sulfate into year.

Consumer spending will continue to steadily recover next year.

Consumption will continue to become a major driver of.

Economic growth.

<unk> had a jump at E. Z go don't tissue Sunday times should how can they use soon GCC took her loyalty to hone our EMEA kind of junk OTT turns out that's all along she decides to put on top of that so you were mainly seen in Turkey is healthy high sugar pulp shipment pool accretion that has ship things here.

David I wanted you.

Now National Cn's element is I should have be very soundly beat I'll hop back into Asia.

It also sounds like IBM that identity Asia.

Bringing you women choosing until its allies are clearly in that Youll ship Haywood maintain a chance at that time, but I don't put a ctrip genco Samsung facility in Shandong <unk> passion, not my opinion cancer therapy to an hour my ship off Sheila to acquire higher that's also.

Actually we don't go.

Well I think it turns out that she don't need cheeky.

And to put a second part of your question.

With the recovery of China.

Growth, though the speed, it's a slower that we anticipate at the beginning of the year.

Tissue, which you should have.

It didn't pan shifts at home that Cuda normally use at home should not senior with me I think GTO casino Nissan that pollute ensure that said I will mention my sincere and many increase tissue that you should have all of them.

So and also at the same time driven by a series of effective policies supporting assumption employment private enterprises and the property sector. We anticipate that the consumer spending will continue to steadily recover next year and.

So from the perspective of a category for some categories that JD has the advantage, we will have a bigger market share such as home appliances and electronics categories.

Consumption will continue to become a major driver of economic growth.

Our supply chain strengths.

And and enhanced user mindshare has enabled us to maintain growth rates, surpassing the inventory levels in the first three quarters of the year and we continue to gain on these archives.

To aid our tissue types and they may do national since elementary school should have be very soundly beat all the tight integration with their trust.

It also sounds like IBM Asia, bringing new women choosing in Chile is highlight though clearly in the Youll ship Haywood maintain a chance at that time that you don't put a ctrip genco Xinjiang facility in Shandong shouldn't hold EDA passion not my opinion change sounds like they do not want my ship off Sheila.

Categories, we continue to gain market share.

At the same time, our focused investment in our capabilities this year.

Our confidence in continuing to acquire market share next year.

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Sure <unk> salary that portion of the economy and they could have gone centurion attempting Yoshida chakra.

Confirmed for the floor Natasha <unk> Shang teeth. She <unk> her two ships later that's all.

So from the perspective of a category for some categories that JD has the advantage, we will have a bigger market share such as home appliances and electronics category.

Switching cell fate <unk> hundred our tissue.

In the mobile phone and <unk> and electronics categories.

Our supply chain strengths and enhance the user mindshare has enabled us to maintain growth rates, surpassing the inventory level in the first three quarters of the year and we continuously gain on these archives.

Elaborate our supply chain advantages to continuously optimize cost efficiency and providing users with diverse range of products and competitive prices and better services. So we also lead the trend of these categories our industry.

Categories, we continue to gain market share.

At the same time, our focused investment in our pawn capabilities this year.

By strengthening our offerings of new and 20 product.

The confidence in continuing to acquire market share next year.

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Confirmed for the floor Natasha Yeah, Hey.

Our solution and our <unk> Johansson.

Josh I wanted to touch on <unk>. Her two ships later, that's all a lie switching selfie Indian sensational.

Catherine Tony Clark to CFO lesions equal to Cook <unk>.

Since issuing our hunger that tissue.

That is helping CTO.

In the mobile phone and <unk> and electronics categories.

And in the home appliances categories, which is the category heavily rely on our services. So we will further enhance our retail and our service capabilities.

We leverage our supply chain advantages to continuously optimize cost efficiency and providing users with diverse range of products and competitive prices and better services. So we also lead the trend of these categories are industries.

Online and offline. So while we are promoting higher end and emerging products. We are also enhancing usage my share of high cost effectiveness of this category. Additionally.

We are also making breakthroughs in our service capabilities in the home appliances category, such as trade ins and one stop assembly delivery and installation services.

By strengthening our offerings of new and 20 product.

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Turning to further elevate the user's experience and stimulate consumer.

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Consumer demand.

The Yahoo, Amanda tuned on that front, how can they know T&D shares two wheeler somebody buys it a year without an 90 CFO comment a good option. They go Wow tomo being girl.

Tessa I'm talking to clock to CFO, Lisa and team to Cook <unk> child on a well that is helping CTO.

<unk> D C without a charter that it is harder than it does our tupelo a deep.

Matteo will meet and $10 <unk>.

And in the home appliances category, which is the category heavily rely on our services. So we will further enhance our retail and our service capabilities, both online and offline. So while we are promoting higher end and emerging products. We are also enhancing usage my share of high cost.

So somebody and she also shadow number mean that sounds without conducting combat Sundar Shadow Shadow Chancellor account maintenance and showed how can they don't and shifting towards it rather something that you don't need that much finer detail helped with Trinity tissue machines, helping lately that chini him to eating at home fashion show EBITDA body.

Effectiveness of this category. Additionally, we.

So it has something to issue capital other tissue.

We are also making breakthroughs in our service capabilities in the home appliances category, such as trade ins and a lifestyle assembly delivery and installation services.

So for our supermarket category.

After our proactive efforts this year and the initiatives, we have a series of initiatives.

Oh aiming to further elevate the user's experience and stimulate consumer.

The category are plenty warehouse network transformation and refined operations et cetera, and all of these initiatives has been making steady progress and this category has oh, we have seen a better momentum compared to the first half of the year and we believe.

Consumer demand.

So the Yahoo, Amanda tuned on that front, how can they know TMT ships two Wheeler Sunday by you see the year without zone 90, simple core mental got ups and they go Wow tomo being cool.

Supermarket category and will return to a healthier growth trajectory next year.

Cynthia Hi Union D C without a charter that it is harder than that those are tupelo a deep.

We'll also reaffirm our belief that the supermarket category will remain to be Jd's. Most important growth driver in the long term and this category I would also want to.

Matteo will meet and Ken doll shouldn't helps and it is also be somebody and she also got Shanda number mean that sounds without contacting conduct sundar shithole shark tank.

Sounds good I call it maintenance and showed how can they don't and shifting towards it but sometimes you don't need that much detailed health between two tissue machines, hoping late features that you need him to eating at home fashion show EBITDA that is apparently so it has something to ensure that we talk all the tissue.

I remind you that <unk> has benefited from.

From last year's pandemic peer ranch, which I gave it a very high base a year ahead.

Yeah.

And he actually meant that long to kind of know what normally we see <unk> still go to Daniel totaling so quickly and you know my personal history does seem to be a consolidator.

So for our supermarket category and after our proactive efforts this year and the initiatives we have a series of initiatives.

The category are plenty warehouse network transformation and refined operations et cetera, and all of these initiatives has been making steady progress and this category has seen we have seen a better momentum compared to the first half of the year and we believe.

Consolidated wasteful.

<unk> sciences, or Tony H&R Cal.

Total government.

As shown by of course, Youll claw number of women typically only meets each with the potential shifts Jones, who joined us through the pathway to that ICT LNG ships out on that Tony.

Supermarket category and will return to a healthier growth trajectory next year. So this will also reaffirm our belief that the supermarket category will remain to be Jd's. Most important growth driver in the long term and on this category I would also want to.

Tony and I can tell you who partnership entre that I see it.

<unk> the data and shopping has shown how they tell me I don't see what maybe see millions of patients in culture down there with them.

For 2024, we expect the impact of our pro access business optimizations and adjustments will become less so with the gradual recovery of the economy and the consumption and also the release of Odessa in factor for duties the algorithms and all the other measures.

I remind you that has benefited from last year's pandemic peer ranch, which I'll give it to very high base a year ahead.

Yeah.

So you know I actually meant that long to kind of know what Mel maybe see <unk> still go to don't don't have totally and so Christian you know my personal history does <unk> sulfate a triple play for them.

Based on our supply chain will continue to play out.

Localized mindshare and also our platform ecosystem strategy will also gradually take root.

We anticipate achieving a higher a high quality business growth next year.

You're sitting here with me you see the advantages of Tony H&R.

Couch all of them and this is shown by cholesteatoma Youll claw number of women typically only keytruda material shifts Jones, who joined a digger south which like I said to you and let you should count on that Tony and I can tell you who put on a ship onto that I can't take a bulk of that is adding jobs and higher sometimes they tell me they don't all see.

Thanks, Tim Gokey, and Tony Annuity Dakota until now when we equip some tons out of Hollywood.

In a country like our Malaysian Acacia actualized, three cleanly and cellular tissue reputational headed to venture now women can see plenty of them full kitchens, even need to move the all female fashion will be a pop.

Maybe see a minion she patient couch it down the year, we termed out.

So two of the strategic implement implementation process.

So for 2024, we expect the impact of our pro access business optimizations and adjustments will become less so with the gradual recovery of the economy and the consumption and also the release of Odessa in factor for Judy the algorithms and all the other measures.

Strike a balance between growth and profitability.

In the long term our profit improvement will come from the enhancement of our supply chain efficiency and the gradual improvement of the platform ecosystem. So our long term goal of steadily increasing profit margins.

Based on all of our supply chain will continue to play out.

Main unchanged.

Thank you.

Thank you were ready for the next analyst.

Localized mindshare and also our platform ecosystem strategy will also gradually take root, we anticipate achieving a higher a high quality business growth next year.

The next question comes from Charlene moved with HSBC. Please go ahead.

Okay.

Thank you fish aren't going to take on any tank at our trigger Q&A you quit yeah of course, it goes without Irish call you'd see that for Japan.

So that's it.

Thanks, Tim go teach in China, and North Dakota until now when we equip circle, how it turns out for me right now.

In a country like her our Malaysian there Kai Hsiao actualized, three cleanly and tell me that he's shown reputational headed to Mindshare, Noah mentioned T bills have been pool, he shouldn't even need to move the all female fashion will be a pop.

And she D C Atlanta, Georgia, Ohio, Nicola Tang will make $10 you're.

Sure and as you can.

Got you.

I'm sure Jojo, there you'd see our our senior there just general thoughts you pay somebody on the street.

So two of the strategic Internet implementation process.

If you go through.

The General Oh Trust me on that.

Strike a balance between growth and profitability.

So Jim Kishi that drinking francais, Jon Jaffe for sure shot for Xiaomi has chauffeur drive all are going to need that you're gonna Lena.

In the long term our profit improvement will come from the enhancement of our supply chain efficiency and the gradual improvement of the platform ecosystem. So our long term goal of steadily increasing profit margins.

Thiago when she's not you're sure call. It all that ore shoot Jacqueline Shea Xiaomi in the shower door Shanghai, it's aging in E&P Whitehall now Simeon I'd say you can see in the future, but I need you to go through there. So you show in China.

Main unchanged.

Thank you.

Thank you were ready for the next analyst.

John and I <unk> sure sure sure.

The next question comes from Charlene moved with HSBC. Please go ahead.

Hum sort of flatten out or did you kind of hope right.

Yeah.

Thank you fish aren't going to take on any tank at our trigger Q&A you quit yeah of course, you go sit Irish call you'd see though for Japan, you'll go into a bigger sure you'll find here, John Hi, Oh, God, you wouldn't Utah, well my $10, you're sure secondly, you're going to shake out Utah.

The first question is about competition. So competition intensified in 2023 can you. Please kindly shed light on how you expect the competitive landscape to change in 2024, and how this will shape J D strategy going forward I will G. M. P M market sure.

Sure sure George are there you'd see our our senior there just general thoughts you pay somebody on the B L.

<unk> be the continued focus over profitability second.

Second part to my question is given most structural adjustments are expected to complete by end 2023 on acute green base next year, how much growth can we expect for the overall company retailed and more specifically for F. M. C. G in 2024, and what could drive the results to.

If you go to you Jim.

The General Oh Trust me on it you can shop Jindal quake Kishi back launching francais drops you have you flush out for Xiaomi has chauffeur drive all our Guangzhou you need what you're gonna Lena Tiago and cannot you're sure Khalid al that or should I go see our xiaomi and their children Shanghai side.

Surprised on the up or downside and why thank you.

N D. Whitehall now Simeon I'd say, you can see in the future shock, but I need you to go through there. So you show on China and outdoor shopping journey.

Yeah.

Positioning now alive with Opdivo in key national.

<unk> seen a tick up.

<unk> got a dishwasher competition.

<unk> Sheng, so sure quite sure sure.

And absent more.

Hum sort of fine where do they have kind of Hawkeye G E.

Sure no problem with shield.

Tissue may dabble.

So that will be on the ocean.

On the first question is about competition. So competition intensified in 2023 can you. Please kindly shed light on how you expect the competitive landscape to change in 2024, and how this will shape jd's strategy going forward I will G. M. P M market share be the.

So I think selling I'll answer your first question. So currently China's e-commerce market features various platforms and business models.

For each platform.

It has its distinct.

I think the characteristics.

The sale of Canadian Sugar coffee outlets Ottawa has this outsized candela is now $2 80 line of women, though since <unk> more shift nuomi to dose a readout of Colombia.

You'd focus over profitability.

Parts of my question is given most structural adjustments are expected to complete by end 2023 on acute green base next year, how much growth can we expect for the overall company retailed and more specifically for F. M. C. G M in 2024, and what could drive the results to potentially.

And to put on that element of casino knee number of government support.

That is that all due to these other countries.

And two P. Pay of course, you didn't call that you could constitute a COVID-19.

Surprised on the up or downside and why thank you sure.

$19 billion would assume that see well, maybe I may just sneak up Cleveland itself into Shanghai.

Positioning now what I am quite that easily.

National seen a tick up.

Tanya for Chaco.

This shortly transact how T gotcha principal accounting the Gilmore ship I won't meant that building as she goes.

<unk> got a tangential competition.

And absent more.

Well, Sheila I'll put on what she opened.

We are proposing Sidoti.

Tissue, maybe I don't know.

So that would be on the ocean.

Sequentially some time in Washington.

So I think selling I'll answer your first question. So currently China's e-commerce market features various platforms and business models.

So I might repeat myself many times, so here I don't want to share that but gd dotcom, we constantly adhere to them.

And for each platform.

<unk> based and consumer centric business model building.

It has its distinct.

I think the characteristics.

Our competitive capabilities around the supply chain and user experience, we collaborate with our partners to create a supply just to create a supply of high quality and affordable goods.

The sale of Canadian Sugar, Hookup, yellow Tallahatchie, South head count out, Utah now at $2 80 line of women, though since <unk>.

No more ships now on each of those areas.

Okay Yeah.

Precisely matched suits for users and provide ultimate shopping experience and earn users' trust. So this business model has created value and foster ruling outcome for consumers business partners and the society at large.

And she put on that element of casino knee number of government support that.

Is that all due to these other jumping on to your.

Children shoes pay of course, you didn't call that you could you can see to the COVID-19.

<unk> C well mega majors, he called Cleveland, helping to Shanghai.

And it's designed to be the most resilient and sustainable business model capable of navigating different economic cycles.

Shanghai for Chaco.

This surely turns out how T gotcha, principally the Gilmore ship I want meant that building as she goes.

So any mega whore going to until now T shares well consider tissue well, mainly the higher balances and to a higher like shorts and no longer has shown that will transact on severe.

Since it will see a.

Sequentially see sometime in Washington.

I might repeat myself many times, so here I still want to share that but JD dotcom, we constantly adhere to them.

Comparability it a shot.

She got lots and lots of it to shift from door to combat that that those that don't Shaquille O'neal and easier for me in that that definitely those IPR Dci, which is short term shipping since you have union hook to see if I can tell you to go quite honestly.

Our supply chain base and consumer centric business model.

Building core competitive capabilities around the supply chain and the user experience, we collaborate with our partners to create a supply.

It seems <unk> specialties or the eventual shall actual highest enjoying the reaction that you have put transaction until she ought to Samsung done in Chicago.

To create a supply of high quality and affordable goods.

Precisely matched suitable users and provides ultimate shopping experience and users' trust.

So.

In terms of the competition of the retail market. The competition in this industry has always been here actually there's a lot of thinking about it as like a more fears or less fear just always the competition here so for our retailers.

This business model has creates value and supposed to win win outcomes for consumers business partners and the society at large and it's designed to be the most resilient and sustainable business model capable of navigating different economic cycles.

We've all observed that for this industry for many players. This year has been focused on in household users experience and also refining our personnel and our sustainable.

Hopefully you've seen till now a T shirt.

Well, if we say that tissue.

The higher balances and a higher like shorts and no longer has shrunk, but what's in fact come severe comparability at a shop my mom. She got lucky once again to show her door to the cone combat that I thought that she changzhou cookie and easier for me in that that definitely those IPR PCI.

Development strategies, so, yes, so always fierce competition and this year you might feel this is intensified.

Doing a bunch of women tissue female condom to show them in the mail.

They seem to have a dialogue of women, so shouldn't even be immune central about himself.

Sure Josh.

I wanted to ask is you can take a cut that down the annuity to simplify ashish I M ore shoot suncor not reasonable actual woman tissue with high concentrations have tuition now.

When you look to see if I can probably take I'll quit on ship hold you at all.

<unk> told you we have specialties are the eventual shall actual highest enjoying yet that you hope will transaction until shower to Samsung done in Chicago.

Many many things.

So you had a question what how the.

So.

Camden has shoe company selling hot he intracellular so no women since it moved beyond that to ship.

In terms of the competition of the retail market. The competition in this industry has always been here actually it is not as saying about it it's like a more fears or less spirits. It's always the competition here so for our retailers.

See that hunger tissue Grimoire T T cell woman golf, Accordingly himself like sandy to them, but not a whole lot to consolidation. So that I don't know that I live in Quincy and cheerful historical bank to Yakov himself, you'll need to be the leader in doing we shouldn't you shouldn't see.

We've all observed that for this industry for many players. This year has been focused on how can we use this experience and also refining our personnel and our sustainable.

We're <unk> in addition to shipping pushes anytime Hong Kong, how do you even need to hook with only the Ctrip China.

Development strategies. So, yes, so always there so comfy competition and this year you might feel this is intensified.

So Amit this competition you can see that.

Pizza platforms there.

Doing a bunch of women tissue female condom to show women female.

Profit margins have not been.

Significantly impacted with Louise this is mainly attributed to the way for each platform to implement their business strategy and business models. So Fortunately dot com, we don't stare at others. We continue to believe that our core strategy is to improve our supply chain efficiency.

Since you are Tyler women, so shouldn't even be immune central about himself.

People wanted us to actually take a course Italian annuity two solar farms sheetz, she's showing M ore shoot somewhat not reasonable actual women tissue, but heck Huntington regional Petro Shanghai now with me today are these yo Yo.

So it had.

Through technology and.

Our company.

Her shoe company selling hot he intracellular so no. One instance, it moved beyond that to ship chassis that homecare tissue Grimoire T T cell woman's off accordingly in Saudi like Sandy at home, but not a whole lot to consolidation. So that I don't know that they're living in Quincy and cheerful historical thank you Yosef himself you'll need.

We have scale.

And we would like to use these capabilities to the <unk>.

To share the extra profit.

Raj by efficiency improvements to our partners and the users which include improving user experience doing that.

Other work the user experience improvement is not viewed and sacrificing our a reasonable profit margins and shareholder interests.

I think on the legal I don't you shouldn't you shouldn't.

C or mental Yoki NFC shown tissue being pushy CME dietitian goes to the heart is he going to do the whole could only the ctrip China.

So it's all of them are kind of like Kashi cartoons, unless you want to sit down and you could hear how the shahar anyway seen controllable.

So I mean these are competitions you can see that.

Welcome to the Atlantic or Theyre.

Pizza platforms there.

Now turning to retention compared our social you should catch up going to the mall, we have either no might creep up this year pick a syndrome that live in Nashville, <unk> tissue to teach a woman they don't put yet.

Profit margins have not been.

Significantly impacted with at least this is mainly attributed to the way for each platform to implement their business strategy and business models. So Fortunately telecom, we don't just stare at others. We continue to believe that all of our core strategy is to improve our supply chain efficiency.

So we believe this just be a virtuous business cycle with a better user experience and drive more traffic and more traffic theres more sales opportunities and generate more profit margins and with the margins. We can further reading back into improve.

Through technology, and the economy of scales and.

Improve our user experience.

And we would like to use these capabilities to be able to share the extra profit routes by efficiency improvements to our partners and the users which include improving our user experience. So in another words.

Two women squeeze tissue to ensure them that Huntington dig a hole film insertion will should continue to see centrally asking what's your plan for.

The user experience improvement, if not speeds and sacrificing our a reasonable profit margins and shareholder interests.

Sure so in Russia to Sundar.

We will continue to adhere to our long term strategy and we have confidence in our business model.

So you tell them I kind of like Kashi cartoons on assume fun to sit down with Nokia how vishal.

Stably maintained a virtuous cycle and gain market share.

So it's nice to see the P. P. I felt when I kind of know what may actually since we have begun the king Kong number tissue you put on that portfolio.

We see controllable.

Welcome to the Sandy will be out there telling them how to create fashion computer social use attention can do the Maldives, leaving no part D. C. A T. A syndrome that lever naturally your pool thin tissue to teach a woman they don't put yet.

Elements I take some time for leaving it at Centennial shops had a change of unclear is your Chinese Ventura County kind of women should we chose to conduct purchases on top.

So we believe this should be a virtuous business cycle with a better user experience and drive more traffic and more traffic, there's more sales opportunities in channels with more profit margins and with the margins, we can put a rig back into improve.

So.

In terms of our Kpis. So we have a different business segments exhibiting a distinct characteristics and being at different stages of development in terms of the <unk> and the profits and the cash flows. So for other ways of these three indicators my battery and the long term we believe in achieving.

Improve our user experience.

Two women screen tissue to ensure them that hospitality got whole film insertion loss, you attempted to see central outflows from client Photoshop English, Ohio to Sundar.

The balance across the street.

Indicators.

Okay, or I forgot the other ones.

Part of it goes into the total notice for example, using torchmark inkjet cartridges and rock the boat for Targa is here with us in Hangzhou, Shanghai 40 year car T. W. E T.

We will continue to adhere to our long term strategy and we have confidence in our business model.

Stably maintained a virtuous cycle and gain market share.

Alison Park, the homebuilder in zones, where the trend all things I've seen in the shorter dongle.

So he told me to see the P. P. I felt when I kind of know what may actually since we took it out of him home now more tissue you put on that portfolio.

For the second part of your question, our major structural adjustments have been made and implemented this year, including the business health healthiness adjustment enhancing user experience.

A woman sorry tickets in town, so, leaving it at Centennial shops had to change one clearly you see Chinese essentially county kind of women should we chose to conduct purchases on top.

So in terms of our Kpis. So we have a different business segments exhibiting a distinct characteristics and being at different stages of development in terms of the <unk> and the profits and the cash flows. So for other ways of these three indicators may vary in a long time with it.

Price and platform ecosystem strategies, the full impact of business adjustments will be reflected in this year's numbers.

<unk> you.

Strong from citizens automobiles for milk out there now or moving to Singleton our.

Samsung will transform does so well.

As you know achieving a healthy balance across India.

If anything to the quality assurance program.

Indicators.

Anyway, it's going as you know some don't bother to young woman.

Yeah.

Okay, or I forgot the other ones.

Well if you go home grandfathering, so some go to somewhat not what minimal brochure.

Father's day it goes in the charter notice firsthand, all using software things like Hershey dressing well, no bulk or charges and deal with us in Hangzhou Shanghai Yeah.

<unk> got up and down.

For the Ultrashape power.

So our growth targets for next year and the longer term remains unchanged.

These are you keeping Hudson part.

With the homebuilder in zone, where the trend all things I've seen in the downhole and for the second part of your question.

We anticipate that Jamie overall and retail business in 2024, we have returned to normal growth rates.

Our major structure.

We're confident in achieving our growth faster than the national total retail sales of consumer goods.

Adjustments have been made and implemented this year, including the business healthy housing as adjustments enhancing user experience.

And given jd's substantial our scale our growth is highly correlated with the country's macroeconomic conditions and the retail market.

Price and platform ecosystem strategies, the impact of business adjustments that will be reflected in this years numbers.

Aspire to outperform industry growth and continue to gain market share.

Orlando I mean, its own town SEDAR com will be all for my own gut, they're not want you to think long term.

And he like hub for answering their short haul move.

Yeah with Targa using digital horses, others, obviously for you to tune in the dog food until John No woman suffering from go a year without doing the self workers, who booths at the show.

Oh awesome hands on cars, we will transform the central new.

Same thing to the acquirer you surely in dog food in the dining room and go as you know some don't bother to young woman does bring value to go home.

Charter of course, all guns in Congress and Josh, It's John Chancellor kind of woman sensing shrunk halting Lake.

Goldman somewhat not what minimal brochure Bihar <unk>.

God, they're conducting a hardship for the ultra Chaco so our growth target for next year and the longer term remains unchanged, we anticipate that Jamie overall and retail business in 2024, we have returned to normal growth rates.

Sure.

Sure.

She'd only.

So overall, despite a for the supermarket category. Despite the challenges faced by these categories due to our business adjustments and the post the pandemic recovery in the offline consumption and a high base from the previous year.

We're confident in achieving our growth faster than the national total retail sales of consumer goods.

The effects of documents will gradually materialize.

And given jd's substantial scale, our growth is highly correlated with the country's macroeconomic conditions and the retail market.

And the categories returning to a healthier growth trajectory.

In the long term, we remain confident that it will continue to be jd's, most important growth driver.

We aspire to outperform industry growth and continue to gain market share.

He like her career answering here sometime in the.

And starting from next year, we expect the Super spec rigs.

Charger using digital houghton's, others, obviously for your children the dog food until dry no woman Jonathan can go a year without them the self walkway to boost feature.

To gradually recover growth rates faster than the overall retail market.

Okay. Thank you operator can we have the last question maybe.

Charter of course, all guns in Congress, and Josh Sean Chancellor kind of woman sensing shrunk talking late.

The next question comes from Kenneth Fong with UBS.

Go ahead.

Hi, She said why do you feel that.

Sure.

Okay.

She works, where they'll go into a bigger sequential quarter shy.

She'd only true.

So overall, despite a for the supermarket category. Despite the challenges faced by these categories due to our business adjustments and the post the pandemic recovery in the offline consumption and a high base from the previous year, we believe the effects of stock.

Thank you very much.

Truly this yakubov real challenge this year, you'll put US you would it be in Egypt.

<unk>, Ohio, Joshua Mcgee familiar so much evolution of IBM.

If you ever want to use your sure John I will Miss him has shrunk to the Tung Chung can be on the pimco.

Women's will gradually materialize.

No matter, what whether its usual zhejiang.

And the categories returning to a healthier growth trajectory.

If you go through it with you.

Now that one gene usually a shelf life on it.

In the long term, we remain confident that it will continue to be jd's, most important growth driver.

Got you.

That will continue and familiar to the NDA should be it would be.

Cooper refrigerated juices terms for each E G.

And starting from next year, we expect the supermarket.

Hopefully too.

<unk> when you go to MS. Shang Hsiao sugar, so root cause of the European Court when Windows, JD retail, which you don't need a multiannual joked Emma Watson.

To gradually recover gross rates faster than the overall retail market.

Thank you operator can we have the last question maybe.

For Asia. Thank you management for taking my question. My first question is about our future.

Yes.

The next question comes from Kenneth Fong with UBS. Please go ahead.

Strategy.

Under the current.

Uh huh.

And she said why are you changing in order to work where they'll go when she did go through quite usual quarter try to go in Q.

Certain macro can management share with us some of that behavior changer for user and how is the performance split among different categories and any change in our operation strategy in light of the current macro challenges.

Beauty is jacobo franchisee chassis share Youll put us you would it be a quote.

People don't believe that the Ocean, Ohio, Joshua Mcgee familiar.

Second is about how we balance margin and growth.

Sure look I P M D.

We continue to emphasize on the low price strategy user subsidies. Although competition is also intensifying.

Thiago once you go through China Women's Atlas chunk chunk chunk of ligand of Pimco.

No matter, what whether its usual zhejiang.

We have been very disciplined able to maintain.

Which you know hotel on gene Yoshi shelf from Egypt.

Stable margin conversion ratio because the investment during double 11 and beyond.

Got you.

Well, Mr continue and familiar to the NDA should be it wouldn't be a coupon.

Should we think about the balance between growth and investment and any sort of an update on the JD retail long term margin targets. Thank you very much.

Coopervision recharge wishes terms for each E G.

Retooled our whole shoe them when you go to Michele shook out just so we can view the pin codes when does JD retail June should even be the material jump Emma Watson.

Well that city attorney and catheter hobbling here now.

<unk> seen a tick assortments of <unk> does that all women can't also featured a stoppage at trough, she Kentucky Sundar commentary chakra Hudson it around the country, we can call a C T. As a whole not just you were meant to do.

What cheaper in Asia I think you mentioned for taking my question. My first question is about our user and strategy.

Under the current uncertain macro can management share with us some of the behavioral changer for user.

If anyone should have a T.

So Orlando community and sell me like John Deere woman, that's HEICO for income, but the whole formula.

And how is the performance split among different categories and any change in our operation strategy in light of the current macro challenges.

As shown women to computational had a hope to I.

Got home take a piece of women that have been attempted it seemed to me your question had to do.

Second is about how we balance.

Margin and growth on one hand, we continue to emphasize on the low pressure that you used to subsidies. Although competition is also intensifying.

Like two months, when we don't put our CTO, he's showing up with it yet.

Thank you its very good question. So for JD platform, we've seen that consumers are making more rational purchasing decisions with the rising focus on price and quality. So we continue to enhance our supply chain efficiency to lower procurement and operational costs and enrich the platform.

We have been very disciplined in April to maintain.

A stable margin can management share with us the investment during double 11 and beyond how should we think about the balance between growth and investment and any sort of an update on the JD retail long term margin targets. Thank you very much.

Ecosystem on.

The price competitive competitiveness and a diversity of product offerings to meet consumers' diversified demand in their shopping experience.

But that's just the accounting of NTIC top tier a natural.

<unk> seen a tick assortment discipline. He does that all women can't also featured a stoppage at trough chickens have you seen that commentary soccer, which is around the country. We can call a sea change a whole lot to show we're meant to do.

The tolerance issues you can come along very often found to shorten the current downlink showed a young cord tissue.

Tissue for Chico's is somehow isolated social actually quite E. A kudos on job.

If anyone should have a.

So as we shared.

T show Orlando community and tell me like John Deere woman, that's HEICO for in Tampa and Hollywood.

And statistics the J D.

Users purchasing frequency continued to grow and with the growth rates surpassing that of Apple.

So women took reputation I had hoped to do.

I hope to take a piece of a woman that's having a chocolate assume Tony a question for Frank.

How do you like to share a woman.

Do like two months, when we don't put our CTO, he's showing up with it yet.

Doherty functions that include a whole teach pizza and attempting to do and how long might that seem to be in a sample of mangled amount.

Thank you its very good question, so I'll for JD platform, we've seen that consumers are making more rational.

<unk> put into that and then that's it.

Purchasing positions with the rising focus on price and quality. So we continue to enhance our supply chain efficiency to lower procurement and operational costs and enrich the platform ecosystem and the price competitive.

Does that answer that I assume you can talk about on he found out that essentially.

So, notably as we increased product diversity from merchants and lowered the free shipping threshold, we witnessed accelerated growth in a number of orders and with a low average order value. So with the significant the orders of low average order value of Cigna.

That is a place and a diversity of product offerings to meet consumers' diversified demand in their shopping experience.

The tolerance issues, you can conquer yields and sound tissue on the Kindle being sure that you don't quote a colon cancer tissue power cheaper because somehow I see it you've got some celestial crazy are put us on job.

Secondly, outpaced the overall order volume growth.

Torches elementary.

Yeah sure casino for the cell therapy.

Hi, Shuang Shanghai now me it cannot do CFO to roundup.

So as we shared.

And statistics, so J D.

We ensure that box she's only issued Punjab ours Hitachi are included in the afternoon surfacing.

Users purchasing frequency continued to grow and where the growth rates surpassing that of Apple.

Uh huh.

So the spending power of our users from the first and second tier cities remain robust and J D plus continue to experience double digit growth in the number of users which has a <unk>.

How do you mind to share several women, particularly younger Dorothy Thompson on that hotel piece on attempting to do and how long might that seem to be in a sample of mango.

On the ETF kind of Sunday deep content out of that and then that's all she'd like to ask you about I assume you can talk about on the essential.

So a very strong stickiness of this membership.

The revised usually at home from Tony Good to show, what Macondo tissue totally for the onshore email it sounds the sanity check on the impact so as yourself widget has showed the Dci Judy sure Joe Chunky jewellery tackled the tissue itself into hydro shops yoga option to her food that you turned out so.

Notably as we increase product diversity from merchants and lowered the free shipping threshold, we witnessed accelerated growth in a number of orders and with a low average order value. So with the significant the orders of low average order value is picking up.

Chico what company it hit our tissue woman tissue senior Hershey to wash hosting Yokohama City nation.

Secondly, outpaced the overall order volume growth.

Torches element.

In Saudi Dahaneh Digger to Johan Tycho, John Best of luck to your phone for some patients. So that's a capital shift that whole Shaw media type elements from gunshots without Florida maintain she can't answer how volcker TCR and draw health, which is a show host and don't just before <unk> without ctrip.

Ethan yeah tissue shelf casino for the cell therapy.

Hi, Shimon Shanda now me it kind of just your thoughts around that classically onshore U box you suddenly issue soon John I.

Is hitachi inquisitive in the Ostomy itself. It seemed like you know in sugar.

So the spending power of our users from the first and second tier cities remain robust and J D. Plus continue to experience double digit growth in the number of users, which has a nice show a very strong stickiness of this membership.

So yeah I also want to share a viewpoint that we all just got users does not really want to compromise all the services.

Although pursuing low prices they are seeking low price doesn't.

It means that they will sacrifice the quality of our products and services.

It seems like just the way it sounds from 20 <unk> to show, what Macondo tissue young who talk to us for the old Shopian Mail Sandy Sandy Sakhalin got so as yourself, Egypt has showed the Dci Judy sure Joe shopping two or three separate the two sheets all feature high shouldn't shock to her food that you turned out so.

For ourselves this year, we have been continuously improving efficiency.

<unk>, our procurement costs and expanding product choices and do everything we can to and two are better or even made.

The ultimate efforts to improve our services such as the installation services and after sales services to ensure we still offer our services at no compromise.

Chico what company it dollar to show them in tissues, and you have to wash hosting Yokohama City nation.

In Saudi Dahaneh Tigger T O Hot tackled Tom Best of luck to your phone for some patients or that capital shift that whole Shaw media type elements. So I'm cautious about Florida maintain she can also help aqua TCR and draw held to the show homes don't aren't just before <unk>.

So you can see that kind of a hassle for extending Doc <unk> chosen to do that yeah language is something that we're thinking through new ships. So for the long term, we'll continue to pursue the services at our core competitiveness.

This market in the fierce competition.

So as a whole claims in the darker than Keytruda is sure somehow so leaving the pinhole nature once you get it up to.

So yes, I also want to share our viewpoint that we all just got users does not really want to compromise all the services.

So tier two times he like contributed to the sharp should push up the attrition you are sure to answer until you malinda somehow because I saw your lead when it comes out the holiday somehow a cash pay sometimes that sometimes <unk> vantage has had so somebody 20 branches you can actually see our chips in our social marketing in China.

Although pursuing low prices they are seeking low price doesn't.

It means that they will sacrifice the quality of our products and services. So for ourselves. This year, we have been continuously improving efficiency and optimizing our procurement costs and expanding product choices and do everything we can to and two are better or even making the ultimate.

Y'all shall read what whole, Louisiana shipyard, who take a <unk> that was Hershey potential China central sometimes he like Howard mentioned on Tradeshow.

Efforts to improve our services such as the installation services and after sales services to ensure we are still offer all of our services at no compromise.

Even in the Leland will could even do that sometimes I think I'm gonna be honest emails I shouldn't be hot.

Kathy I count myself attending Doc <unk> chosen to do that yeah that makes you think enough, but in conjunction with a long term, we'll continue to pursue the services at our core competitiveness in this market and the fierce competition.

And just a second question on the balance between the revenues and margins and profitability I think in the long run it shouldn't be a problem or a question. It will eventually form a virtuous cycle with a growing revenues there will be a.

The whole thing in the darker than Keytruda is sure to talk because he ran the personal nature. Once you get it up to Sofia two times. He like countries should push ups attrition Neal Shah sent out there until you malinda somehow because I, sorry, I forgot Leland.

Growing profits, whereas in the short term I think it's more of a tactical issue that whether we should invest more on marketing on the user's acquisition et cetera. So overall in the long term for <unk> Dot com, we continue to pursue a steady and sustainable growth and development. So our steady pursuit proceed.

Volatile is somehow a cash pay sometimes they sometimes you won that you choose that so someday.

Our profitability increase remains unchanged.

As you can actually see all chips.

Has that between two shifting dollar tissue.

Or should we see the same market in Chile.

Patrice your coke out of beans in the quarter human tissue amongst each other has she got the living social philida literally without two fleets active accounts in mobile.

I shall read auto, Louisiana shipyard, who take a child total media that was at the time. She has she potential kind of sensible sometimes he like Howard mentioned on trade show season.

Finally, I would like to stress that preceded dotcom, we don't pursue the short term very high monetization and profitability as a retailer we've always pursued a reasonable profit for our industry.

These accounts, even in the Cleveland well could even do that sometimes I think I'm gonna be honest emails I shouldn't be Ohio.

And just a second question on the balance between the revenues and margins and profitability I think in the long run it shouldn't be a problem or a question. It will eventually form a virtuous cycle leads are growing our revenues there will be a.

The strength. So this is.

As always thank you.

Thank you very much.

Thank you Kevin for the question I think operator.

Growing profits, whereas in the short term I think it's more of a tactical issue that whether we should invest more on marketing on the user's acquisition et cetera. So overall in the long term for duty dotcom, we continue to pursue a steady and sustainable growth and development. So our steady pursuit proceed.

Tommy's runs up.

That's all for today's Q&A session.

Yeah.

I will now turn the call over to J D Dotcom, Sean Zhang for closing remarks.

Yes. Thank you for joining us today on the call and for your questions. If you have further questions.

Profitability increase remains unchanged.

As always please contact me and our team. We appreciate your interest in Jabil Com, we're looking forward to talking to you again next quarter. Thank you.

Or has that between two shifting donor tissue.

Sure.

Sandy even due to shipments each other has she holds a leading soc I'll call. It literally without it so you talked about how T mobile.

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

Finally, I would like to stress that preceded dotcom, we don't pursue the short term very high monetization and profitability as a retailer will always pursue the reasonable profit.

For our industry. So this is.

As always thank you.

Thank you very much.

Thank you Kenny for the question I think operator.

Thomas runs up.

That's all for today's Q&A session.

Yeah.

I will now turn the call over to J D Dot com, Sean Zhang for closing remarks.

Yes. Thank you for joining us today on the call and for your questions. If you have further questions.

As always please contact me and our team. We appreciate your interest in Jabil Com are looking forward to talking to you again next quarter. Thank you.

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

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