Q1 2025 JD.com Inc Earnings Call
Today's conference is being recorded if you have any objections you may disconnect at this time.
Speaker Change: Now I'd like to turn the meeting over to your host for today's conference Sean Zhang Director of Investor Relations. Please go ahead.
Thanks for watching!
Speaker Change: Thank you good day, everyone welcome to ticket Dot Com Q1, 2025 earnings conference call.
Speaker Change: With us today.
Speaker Change: <unk> updated our call.
Speaker Change: Sandeep.
Sandeep: Sure I'll kick off the call with her opening remarks, and our CFO, Mr. Ian Sean what discuss the financial results.
Ian Shan: This was a result collectively driven by many improving trends on our platform, including the increasing user traffic and engagement, our improving traffic allocation efficiency, as well as our expanding 3P merchant base and product offering.
Sean Zhang: For today's conference, Sean Zhang Director of Investor Relations. Please go ahead.
Speaker Change: Then we will open the call to questions from analysts.
Sean Zhang: Thank you good day, everyone welcome to figure that come Q1, 2025 earnings conference call.
Speaker Change: Before turning the call over to Cindy Let me quickly cover the safe Harbor.
Speaker Change: Please be reminded that during this call our comments and responses to questions reflect management's view as of today only and will include forward looking statements.
Sean Zhang: With us today.
Ian Shan: Now, let's turn to our segment performance. JD Retail achieved robust growth in both top line and profitability. Its revenues were up 16% year-on-year in Q1, driven by a solid performance across all major categories. In addition, in Q1, JD Retail's gross margin continued to improve for the 12th consecutive quarter. As we continue to boost our procurement capabilities, and Accelerate School of our High Margin Revenue Stream. In terms of operating income in Q1, JD Retail's non-GAAP operating income was up 38% year-on-year to RMB13 billion, and the operating margin was We are well on track to continue to drive healthy top line and profit trajectory for JD retail as we move forward.
Or do you get a call.
Sal: Sal issue she will kick off the call with her opening remarks, our CFO.
Speaker Change: So please refer to our latest safe Harbor statement in the earnings press release.
Sean Zhang: Sean will discuss the financial results.
Speaker Change: Our web site, which applies to this call.
Sal: Then we'll open the call to questions finally.
Well discuss certain non-GAAP financial measures.
Speaker Change: Before turning the call over to Cindy Let me quickly cover the safe Harbor.
Speaker Change: So please refer to the reconciliation of non-GAAP measures to the comparable GAAP measure in the earnings press release.
Speaker Change: I remind you that during this call our comments and responses to questions reflect managements view as up to date only.
Speaker Change: Please also note all figures mentioned in this call are in RMB, unless otherwise stated so now let me turn the call over to our CEO <unk> <unk>.
Speaker Change: And will include forward looking statements.
Speaker Change: So please refer to our latest safe Harbor statement in the earnings press release on our website, which applies to this call.
Speaker Change: Can you. Please thank you Sean Hello, everyone. Thank you for joining our earnings conference call today.
Speaker Change: Well discuss certain non-GAAP financial measures.
Speaker Change: So please refer to the Reconsolidation of non-GAAP metrics to the comparable GAAP measure in the earnings press release.
Speaker Change: Our business maintain scope as momentum in the last quarter of 2024 and kicked off 2025 fleets and even stronger set of results in Q1.
Speaker Change: Also note all figures mentioned in this call are in RMB, unless otherwise stated.
Speaker Change: Our total revenues were up 16% year on year, a further acceleration from the prior quarter with healthy growth across the board.
Speaker Change: Now, let me turn the call over to our CEO.
Speaker Change: Can you. Please thank you shop Hello, everyone. Thank you for joining our conference call today.
Ian Shan: Next, JD.Logistics. JD Logistics' revenues grow by 11% year-on-year in Q1, with both internal and external revenues sustaining double-digit growth momentum. Its soft performance in terms of non-gap operating income in the quarter was in line with our expectations, as it's proactively invested to upgrade fulfillment capacity and user experience. In addition, JD.Lotus has been working on increasing automation levels across this work. such as warehousing, sorting. Class Now Delivered. This enables JD Logistics to improve its frontline employee productivity and safety. as well as to further optimize its operational efficiency.
Speaker Change: Our business maintain scope as momentum in the lock hotels 2024.
Speaker Change: We meaningfully outpaced total retail sales and online retail sales of physical goods in the same quarter.
Speaker Change: And kicked off 2025 leads and even stronger set of results in Q1.
Speaker Change: We continued to enhance our supply chain capabilities and solidified market leadership in our electronics and home appliances category.
Speaker Change: Our total revenues were up 16% year on year.
Speaker Change: The acceleration.
Speaker Change: The prior quarter with healthy growth across the board.
Speaker Change: Further tapping into the <unk> market potential in the general merchandise category and building up our user men's sure.
Speaker Change: We meaningfully outpaced total retail sales and online retail sales physical goods in the same quarter.
Speaker Change: Our business also continued to see healthy profit growth during the quarter.
We continued to enhance our supply chain capabilities and solidify our market leadership in our electronics and home appliances category.
Speaker Change: Our non-GAAP net profit was up 43% year on year to 12 eight.
Speaker Change: Well further tapping into the bond market potential in the general merchandise category and the beauty of our user mindshare.
Speaker Change: Leading RMB with net margin expanding by 82 weeks.
Speaker Change: 242%.
Speaker Change: This was primarily driven by year over year improvement in our gross margin trend that we've sustained for 12 quarters and year ago as our team continues to focus on driving best in class user experience lower cost and higher efficiency.
Ian Shan: Moving to new business. In Q1, revenues of new business turned around to a positive growth of 18% year-on-year. At the same time, the non-gap operating loss widened to RMB 1.3 billion. Both were mainly driven by the fast growth of our Jinxi business in Q1, a key pillar for us to penetrate into low-tier markets with a broad assortment of valuable money products. to better serve user demands and expand our user base there. JD food delivery by segment is also recorded on the new business. As it just started to scale at the end of Q1, the financial impact was not meaningful in the quarter.
Speaker Change: Our business also continued to see healthy profit growth during the quarter.
Speaker Change: Our non-GAAP net profit was up 43% year on year to 12 eight.
Speaker Change: B the RMB.
Speaker Change: <unk> margin expanding by 82 feet.
Speaker Change: To a full 0.2%.
Speaker Change: Let's first look at our category performance.
Speaker Change: This was primarily driven by year over year improvement in our gross margin a challenge that we've sustained for 12 quarters seen I go.
Speaker Change: We saw continued healthy demand for electronics and home appliances on our platform in Q1.
Speaker Change: Leading to a further acceleration in revenue growth to 17% year over year.
Speaker Change: Our team continues to focus on driving best in class user experience lower cost and higher efficiency.
Speaker Change: The healthy demand in this category demonstrates the underlying strength and potential of domestic consumption as well as state. These unparalleled strengths in supply chain and the user men's share.
Speaker Change: Let's first look at our category performance.
Speaker Change: So continued healthy demand for heat up tonics and home appliances on our platform in Q1.
Ian Shan: We are making very fast progress and gaining traction with consumers. merchants and writers with our differentiated business philosophy and model. In particular, We have good ROI for user acquisition. Closer to date in Q2, we've seen more tangible results from JD food delivery's user traffic, retention, as well as the great potential to synergize with our retail business and the entire ecosystem.
Speaker Change: Leading talks with the acceleration in revenue growth to 17% year over year.
Speaker Change: Td's business model enables us to see structural opportunities in the industry.
Speaker Change: The healthy demand in this category that means cheap.
Speaker Change: Driven by the government's consumption stimulus policies.
Speaker Change: The underlying trends and bus potential domestic consumption.
Speaker Change: The innovation of technologies and continuous rollout of new product models.
Speaker Change: As well as state these unparalleled strengths in supply chain and the user mindshare.
Speaker Change: We are confident.
Speaker Change: <unk> January to move the vitality and resilience in our long term growth in electronics and home more time phase.
Speaker Change: Did these business model enables us to see structural opportunities in the industry.
Ian Shan: Next, let's turn to our consolidated profit performance. In Q1, at the group level, our gross profit was up 20% year-on-year for RMB48 billion. Gross margin was up 60 bips up to 15.9%. It's primarily driven by JD Retail's gross margin improvement, highlighting the high quality development of our company. non-GAAP net income attributable to ordinary shareholders at the group level increased by 43% year-on-year to RMB13 billion in Q1, with non-GAAP net margin up 82% to 4.2%. Our last 12-month free cash flow as of the end of Q1 was RMB38 billion, compared to RMB61 billion in the same period last year.
Speaker Change: Driven by the government's consumption stimulus policies, but you know Lee shelf technologies and continuous fill out of new product models.
Speaker Change: Moving on to general merchandise.
Speaker Change: In Q1 revenue growth here also accelerated sequentially to 15% year on year to break this down supermarket category revenue growth hit double digits for the fifth consecutive quarter.
Speaker Change: We are confident to generate more vitality and receiving you know our long term growth in electronics and home appliances.
Speaker Change: In particular, it had a robust promotion season during the Chinese lunar new year with revenues and users both.
Speaker Change: Moving on to general merchandise in Q1 revenue growth here also accelerated sequentially to a 15% year on year to break this down supermarket category revenue growth.
Speaker Change: Solid growth trajectory.
Speaker Change: The momentum of supermarket category is expected to carry on throughout 2025.
Speaker Change: Double digits for the fifth consecutive quarter.
Speaker Change: This performance is the result of continued refinements across every stage of our retail supply chain.
Speaker Change: In particular, it had a robust promotional season during the Chinese lunar new year with revenues and users both a solid growth trajectory.
Speaker Change: <unk> enhanced procurement capabilities and improved fulfillment efficiency towards stronger user experience and increase the user mindshare.
Speaker Change: The momentum of the supermarket category is expected to carry on throughout 2025.
Ian Shan: This was primarily due to cash outflows associated with the trading program and our efforts to secure product supply. to meet robust consumer demand. and this partially offset by our profit extension.
Speaker Change: Supermarket offer massive market scale with fragmented players and relatively low online penetration.
Speaker Change: This performance is the result of continued refinement.
Speaker Change: Across every stage of our retail supply chain.
Speaker Change: So we see a lot of headroom to step up our growth and profit improvement in this key category.
Speaker Change: For me has the procurement capability and improved fulfillment efficiency towards stronger user experience and increase the user mindshare.
Ian Shan: By the end of Q1, our cash and cash equivalent Total RMB203 billion In summary, the strong performance in Q1 once again validates the effectiveness of our long-term strategic roadmap. and Our Strong Execution. Particularly, we're confident for JD Retail to steadily unleash its potential in both scale and operational efficiency improvement. At the same time, we are proactively making exciting headway into new business to build powerful synergies across the JD ecosystem and explore long-term optimism. It takes tremendous efforts, but eventually will generate greater value for our customers, shareholders, and the society at large.
Speaker Change: Our fashion category further accelerated revenue growth in Q1, driven by a continually enhanced assortment of brands and merchants.
Speaker Change: Supermarket offer massive market scale with fragmented players and has relatively low online penetration.
Speaker Change: Along with growing user recognition.
Speaker Change: So we see a lot of pet room to step up our growth and profit improvement in this key category.
Speaker Change: Supported by our differentiated roadmap to scale, our fashion business scale and strengthen user men share.
Speaker Change: Our fashion category further accelerated revenue growth in Q1.
Speaker Change: Anticipate strong operational tailwind throughout the year.
Speaker Change: Driven by a continually enhanced assortment of brands and merchants.
Speaker Change: We expect supermarket fashion and other high potential growth categories within general merchandise.
Speaker Change: Along with growing user recognition.
Speaker Change: Supported by our differentiated Pittsfield map two <unk>.
Speaker Change: Which we are only beginning to unlock to further propel our long term growth trajectory.
Speaker Change: Scale, our fashion business scale and strengthen user mindshare, we anticipate strong operational headwinds throughout the year.
Speaker Change: Moving on to user growth and engagement another bright spot in Q1.
Speaker Change: Expect supermarket depression, and other high potential growth categories within general merchandise, which we are only beginning to allow us to further propel our long term growth trajectory.
Speaker Change: During the quarter, our quarterly active customer number was up double digits year on year with increased average user shopping frequency and notable acceleration.
Sean Zhang: With that, I will turn it back to Sean. Thank you.
Sean Zhang: Thank you, Sandy and Ian for the Q&A session. You're welcome to ask questions in Chinese or English. And our management will answer your questions in the language you ask. We'll provide English translation for convenience purpose only.
Speaker Change: <unk> reported double digit year on year growth in both shopping frequency and a pull in Q1.
Speaker Change: Moving on to user growth and engagement another bright spot in Q1.
Speaker Change: Overall, we are pleased with the robust user transaction user traction.
Operator: In case of any discrepancy, please refer to our management statement in the original language.
Speaker Change: During the quarter our coach the active customer number was up double digits year on year with increased average user shopping frequency and notable acceleration.
Speaker Change: We have attained.
Operator: Operator, we can open the call for a Q&A session. Thank you. The question and answer session of this conference call will start in a moment. two questions at a time from each caller if you have more than two questions. Please press to join the question queue again after your first question has been addressed.
Speaker Change: It's a reflection of the strong momentum of our core retail business.
Speaker Change: And our average enhancing user experience.
Speaker Change: J D sauce recorded double digit year on year ago impulse shopping frequency on a pool in Q1.
We constantly review and always strive to improve our user experience.
Speaker Change: Overall, we are pleased with the robust user transects user traction we have obtained.
Speaker Change: Particularly in Q1, our team tackled a number of speaking points to further streamline our after sales services and the continued to increase AI adoption to improve efficiency and the personalization of search and recommendation.
Operator: If you wish to ask a question, please press star 1 on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star 2. If you're on a speakerphone, please pick up the handset to ask your question.
Speaker Change: It's a reflection of the strong momentum of our core retail business and our ever you're kind of seeing user experience.
Speaker Change: We constantly review and always try to improve our user experience.
Ronald Keung: Our first question is from Ronald Keung from Goldman Sachs. Please go ahead. Thank you, Sandy, Ian and Sean. I have two questions. The first one is about take-out. After our investment of one or two quarters in the future, what are the mid-term goals of the company in the take-out business? What do you think about the industry pattern? What are your expectations?
Speaker Change: Aam's shopping guide consultation as well as delivery and after sales services.
Speaker Change: Particularly in Q1.
Speaker Change: Our team tackled a number of sticky points to further streamline our after sales services and the continued to increase adoption to improve efficiency and the personalization of search and recommendation they.
Speaker Change: Among others.
Speaker Change: We believe our user momentum will get stronger as we continue to optimize user experience and the work on user synergies across our businesses.
Speaker Change: We've also made steady progress in executing our low price strategy and building out our <unk> ecosystem.
Speaker Change: They are shopping cart consultation as well as delivery and after sales services among others would.
Ronald Keung: The second question is for JD.com. As we see the growth of our products, the profit margin is also increasing. We just talked about the growth of clothing and day-to-day life. What strategies have we taken to drive this acceleration? In addition to this, what strategies does our company have to maintain a healthy growth trend in the second half of the year? Let me translate. Thank you, Sandy, Sean and Ian. Two questions from me.
Speaker Change: We believe our user momentum will get stronger as we continue to optimize user experience and the work on the user synergies across our businesses.
Speaker Change: In Q1, our net promoter score the NPS on price competitiveness improved both year on year and sequentially.
Speaker Change: <unk> treating that our low price efforts are brighter resonating with our users.
Speaker Change: We've also made steady progress in executing our low price strategy and building out our three P ecosystem.
Speaker Change: Growth of order volume and user base in lower tier markets also.
Speaker Change: <unk> also continued to outpace that of higher tier markets.
Speaker Change: In Q1, our net promoter score the N P. S on price competitiveness improve both year on year and sequentially demonstrating that our low price efforts are resonating with our users.
Speaker Change: Our platform.
Speaker Change: On the three P ecosystems side.
Ronald Keung: One is on our food delivery. What do we see as the medium-term result for the food delivery initiative beyond maybe three to six months from the two quarters of pretty intense investments? How do we see the food delivery industry landscape in the medium term?
Speaker Change: As we further expanded merchant base.
Speaker Change: And product offering.
Speaker Change: Both our <unk> order volume and three P buyers.
Speaker Change: Gross order volume and user base in lower tier markets.
Speaker Change: Kris to strongly year on year.
Speaker Change: This momentum also contributed to the robust growth of our marketplace and the marketing revenues, which were up 16% year on year in Q1.
Speaker Change: Also continued to outpace that of higher tier market.
Ronald Keung: The second question is on JD Retail. With the acceleration that you've commented on across categories, also the margin expansion that we've seen, what have we done in driving particularly apparel and general merchandise strength? And what is our strategy in sustaining just overall healthy momentum beyond the training program into the second half? Thank you. Thank you, Ronald.
Speaker Change: Our platform.
Speaker Change: On the three P ecosystems side.
Speaker Change: As we further expanded merchant base and the product offering.
Speaker Change: A meaningful pickup compared to preceding quarters.
Speaker Change: Also our three P order volume and three P buyers.
Speaker Change: Over the years, we've built a very robust and scaled retail business.
Chris: Chris to strongly year on year.
This momentum also contributed to the robust growth of our marketplace and the marketing revenues, which were up 16% year on year in Q1 I.
Speaker Change: With strong supply chain capabilities and best in class user experience.
Sandy Xu: First, I would like to answer the question about take-out business, which everyone is very concerned about. In fact, when I gave my opening speech, I also briefly shared the latest progress of our real-time retail and take-out business. Let me elaborate in more detail. First of all, from our point of view, the real-time retail and take-out business, in fact, all start from our core retail business in terms of strategy. Then it will naturally extend to the real-time retail. The purpose is to see that users do have such shopping needs. As a retail platform, we also need to provide users with a more diversified shopping scene and experience.
Speaker Change: Retail remains the cornerstone of JD and serves as the foundation from which we will continue to pursue more exciting growth opportunities.
Chris: A meaningful pickup compared to preceding quarters.
Chris: Over the years, we've built a very robust and a scaled retail business with.
Speaker Change: One recent notable opportunity is our rapid growing food delivery business.
Chris: With strong supply chain capabilities.
Chris: And best in class user experience.
Speaker Change: Starting from core retail JV is expanding into on demand retail meeting users' diverse needs in different shipping scenarios shopping scenarios.
Chris: Retail remains the cornerstone of J D and it serves as the foundation from which we will continue to pursue more exciting growth opportunities.
Speaker Change: Food delivery has the highest shopping frequency and contributes the majority of orders within on demand retail.
Chris: One recent notable opportunity is our rapid growing food delivery business.
Sandy Xu: Take-out is also the highest unit ratio and highest quality business in real-time retail. Therefore, we believe that the business of JD take-out is still deeply rooted in our overall business ecology, rather than a very fragmented and independent business. We believe that in real-time retail, including take-out, in the future, users can have a huge co-profit value with our existing business in supply and reserve. Thank you, Ronald.
Chris: Starting from core retail J D is expanding into own demand to retail.
Speaker Change: Moreover, food delivery is a vast market with abundant and tapped demands and opportunities.
Chris: Users' diverse needs in.
Speaker Change: And the JD has the right culture strengths, including the established systems fulfillment network talents as well as business model to effectively address this demand.
Chris: Different shipping scenario shopping scenario.
Chris: Well just delivery has the highest shopping frequency and contributes the majority off older we'd be on demand retail.
Chris: Moreover, food delivery is a vast market with abundant untapped demand and opportunities.
Sandy Xu: Let me first take the question on on-demand retail and food deliveries that people really focus on. So I share my thoughts regarding on-demand retail and food delivery business in the opening remarks. Let me elaborate further here. First, from a strategic perspective, on-demand retail and food delivery business is a natural extension from JD's core retail business. So with the goal to provide users with a more diverse shopping experience and scenario. Food delivery has the highest order volume mix and frequency within on-demand retail. Therefore, JD food delivery business is deeply rooted in JD overall business ecosystem. It is not a standalone business.
Speaker Change: It's important to note that at the JV, we do not see food delivery as a stand alone business is deeply rooted and well integrated into jd's robust retail infrastructure and ecosystem.
Chris: And as J D has the right culture stress, including the established system fulfillment network talent as well as business model to effectively address these demos.
Speaker Change: Pivotal differentiator.
Speaker Change: Very brief time BB food delivery has made remarkable headway in the aspects of order volume on boarded merchants and Ralph.
Chris: It's important to note that at the J D. We do not see food delivery as a stand alone business is deeply rooted and well integrated into jd's robust retail infrastructure and ecosystem.
Speaker Change: In particular, as we speak Gd food delivery order volume today is reaching close to 20 million orders.
Chris: <unk> toll differentiator.
Speaker Change: Another important milestone that we expect to surpass very soon.
Chris: Yeah, very brief time G. D food delivery has made remarkable hardly in the aspects of order volume on boarded merchants and Iran.
Sandy Xu: We believe on-demand retail, including food delivery, will create great synergy with JD existing business in terms of users, supply chain, and fulfillment going forward. First of all, the Chinese food delivery market is very large and can accommodate multiple platforms. Secondly, we see that there are still a lot of needs that have not been met in the users, merchants, and start-ups. This includes the needs of users for food safety and quality take-out, the needs of merchants for reasonable commission, and the needs of start-ups for better guarantee. In our opinion, these needs of the industry are very in line with the current capabilities of JD, our culture, and the advantages of the business we have built for many years.
Speaker Change: This demonstrates our safety.
Speaker Change: Strategies.
Speaker Change: Strong execution at the right time.
Chris: In particular, as we speak Gd food delivery order volume today is reaching close to 20, meaning orders.
Speaker Change: And demand retail with food delivery included will generate powerful synergies with our core retail and other businesses, such as JD health and drive overall growth and efficiency.
Chris: Another important milestone that tweaks packed with surplus very soon.
Chris: This demonstrates our in situ.
Speaker Change: Efficiency gains across the entire JV ecosystem in the years to come.
Chris: Strategies and strong execution at the right time.
Speaker Change: In addition to food delivery, we are excited to work on a number of other initiatives. For example in April we launched a 200 billion RMB export to domestic sales program to work with export manufacturers to expand domestic <unk>.
Chris: And demand retail with food delivery included.
Chris: Generate powerful synergies with our core retail and other businesses, such as JD health and to drive overall growth and efficiency.
Chris: Efficiency gains across the entire G D ecosystem in the years to come.
Speaker Change: <unk> presence.
Sandy Xu: This includes the good and cheap brand mentality of JD, the three-headed theory of JD, the reasonable profit level of JD, and the operation and management ability of the entire logistics industry. 用户和行业的这些需求 Yeah, so food delivery is a massive market with significant demand waiting to be fulfilled. So first, food delivery market in China is still growing rapidly with ample room for multiple platforms to thrive. Currently, there are demands from users, merchants, and riders waiting to be fulfilled, including user demand for food safety and quality, merchants' demand for reasonable commissions, and riders' demand for better protection. JD has the right strengths, culture, advantage to address such demands, including JD's better and cheaper brand awareness, the 35 cents principle that insists on taking only reasonable profits, and its strong logistic operation and management capabilities.
Speaker Change: It will also enrich product suppliers on our platform, particularly those featuring great quality and the low price.
Chris: In addition to a foot delivery we are excited to work on a number of other initiatives. For example in April we launched a 200 billion RMB export to domestic sales program to work with export manufacturers to expand domestic.
Speaker Change: In addition, we've also been driving the application of AI and automation technologies across the demand.
Speaker Change: Slide and fulfillment aspect of our entire ecosystem.
Chris: Market presence.
Chris: We'll also enrich product suppliers on our platform.
Speaker Change: Such as better connecting user demand with our product offerings.
Chris: Clearly those featuring Great College, he and the low price.
Speaker Change: Delivery options.
Speaker Change: Proving efficiency, our warehousing and fulfillment operations.
Chris: Yeah addition, we've also been driving the application for AI and automation technologies across the demand.
Speaker Change: And developing AI enabled tools to create better cost effective for our <unk> merchants.
Chris: Flight and fulfillment aspects of our entire ecosystem.
Speaker Change: We are excited as AI is transforming the retail industry as.
Chris: That's just better connecting user demand with our product offering.
Speaker Change: As the largest retailer in China, we see abundant adoption scenario.
Chris: Delivery options.
Chris: Improving efficiency.
Chris: Our housing and our fulfillment operations.
Speaker Change: In summary.
Chris: And developing AI enabled tools to create better cost effective well our threep merchants.
Speaker Change: Q1 was very productive and exciting our.
Speaker Change: Our core retail business progressed favorably with robust growth on both top line profit.
Chris: We are excited.
Chris: I used to transforming the retail industry.
Speaker Change: And we are more excited as we are tap into a set of great growth opportunities.
Sandy Xu: So JD is both capable and willing to address these demands. I would like to expand a little bit on the good and cheap brand mentality. Now we have about 600 million active users, and we have established a very profound good and cheap brand mentality. These can help our take-out business to quickly establish trust among users, and also meet the needs of users for food safety and quality take-out. Of course, we have also pioneered the strictest entry-level audit standards and management systems to further establish trust among users. So let me elaborate a little bit further here.
Chris: As the largest retailer in China, we see amounted to adoption scenarios.
Speaker Change: To expand our future path.
Speaker Change: Beyond our solid core business. We believe it is important for companies to hold a long term perspective.
Chris: In summary.
Chris: Q1 was very productive and exciting our.
Chris: Our core retail business progressed favorably with a robust growth on both topline coffee.
Speaker Change: We remain steadfastly focused on its strategic priorities.
Chris: And we are more excited as we are tap into a set of great growth opportunities to expand our children.
Speaker Change: While maintaining flexibility to adapt to industry dynamics will.
Speaker Change: We believe TD today is an ever more solid footing and we are making the necessary investments to support our sustainable long term growth and bring value to society at large.
Chris: Uh huh.
Young a solid core business. We believe it is important for companies to hold a long term perspective.
Chris: We remain steadfastly focused on its strategic priorities, while maintaining flexibility to adapt to industry dynamics.
Speaker Change: This concludes my remarks, now let me pass it over to Ian.
Sandy Xu: JD brand image of better and cheaper. JD has already built the mindshare of better and cheaper among our nearly 600 million annual active customers, which will help our food business quickly build user trust and meet user demand for safe and quality meals. Of course, as you know, JD also established the industry's strictest merchant onboarding review standards and management system, which will further enhance user mindshare and trust for JD. Yes, and about the 3-5-5 theory, this is also a business concept that our founder proposed at the beginning of his business. It not only maintains a stable and reasonable profit level, but also gives our partners a very reasonable space for profit growth, and at the same time gives employees good rights.
Ian Sean: Thank you, Andy and Hello, everyone.
Chris: We believe C. D. Today is I have a more solid footing and we are making the necessary investments to support our sustainable long term growth and bring value to society at large.
Ian Sean: Having a robust part of the year, Amit the steady rebound in China's macro economy and consumption.
Ian Sean: In Q1, our total revenue growth accelerated to 16% year on year.
Chris: This concludes my remarks, now let me pass it over to Ian.
Ian Sean: We recorded a double digit growth.
Ian Sean: Celebration across our major revenue stream.
Ian: Thank you Sandy and Hello, everyone.
Ian Sean: Including electronics and home appliances general merchandise and service revenue.
Speaker Change: We had a robust start of the year, Amit the steady rebound in China's micro economy and consumption.
Ian Sean: Particularly marketplace and marketing.
Speaker Change: In Q1, our total revenue growth accelerated to 16% year on year.
Ian Sean: This performance stands as a strong proof.
Ian Sean: Of our ever enhancing supply chain capabilities and user experience.
Speaker Change: We recorded double digit growth and a celebration across our major revenue stream.
Ian Sean: In terms of profitability.
Speaker Change: Including electronics and home appliances general merchandise and service revenue.
Ian Sean: Our gross margin expanded by 60 bps.
Sandy Xu: So, for us, in terms of take-out business, it may also continue to provide better credit policy and better flow for high-quality business owners, so that business owners can focus more on the quality of products, and ultimately form a positive cycle. As you can see, we did have a policy that business owners who entered JD take-out before May this year can get a full year free credit policy. Regarding 35 cents principle, it is a principle that our founder insisted on and JD adheres to since day one of our operation, which is maintaining healthy, yet only reasonable profit margins.
Ian Sean: A 15, 9% in Q1.
Speaker Change: Particularly market place in marketing.
Ian Sean: Timing of 12 quarter streak of year on year improvement.
Speaker Change: This performance stands as a strong proof.
Speaker Change: Of our ever enhancing supply chain capabilities and user experience.
Ian Sean: non-GAAP net income attributable to ordinary shareholders was up 43%.
In terms of profitability.
Ian Sean: So RMB 13 billion.
Speaker Change: Our gross margin expanded by 60 bps.
Ian Sean: With non-GAAP net margin expanding by 82.
Speaker Change: Oh 15, 9% in Q1.
Ian Sean: 242%.
Speaker Change: Sustaining a 12 quarter streak of.
Ian Sean: Alongside our strong financial results.
Speaker Change: Year on year improvement.
Ian Sean: We remain dedicated to delivering shareholder returns.
Speaker Change: non-GAAP net income attributable to ordinary shareholders was up 43%.
Ian Sean: Paul.
Ian Sean: We completed annual cash dividend payout.
Speaker Change: So RMB 13 billion.
Ian Sean: Of U S dollar $1 44 billion.
Speaker Change: With non-GAAP net margin expanding by 82.
Sandy Xu: By lowering commission rates and providing better traffic support to quality merchants, we can enable merchants to focus on food quality. This is a positive cycle. So, for example, merchants joining JD food delivery platform before May 2025 will enjoy zero commission for the year. In terms of logistics operations and management capabilities, JD.com's network and system has been built for many years. In addition, our B2C logistics operations and management also have a deep experience of sinking and accumulation. The management experience of these full-time employees can also be applied to take-out scenarios. So, for full-time takers of take-out, we provide accident insurance and health insurance for part-time takers to improve their stability and satisfaction.
Ian Sean: Our $1.
Speaker Change: 242%.
Ian Sean: In terms of share buybacks year to date in 2025.
Speaker Change: Alongside our strong financial results we can.
Ian Sean: We repurchased a total of 87 million class a ordinary shares.
Speaker Change: We remain dedicated to delivering shareholder returns.
Speaker Change: In April we completed annual cash dividend payouts.
Ian Sean: The equivalent to $40 4 million PBS.
Speaker Change: U S dollar one point 44 billion.
Ian Sean: Which accounted for two 8%.
Speaker Change: All one.
Ian Sean: Of our ordinary shares outstanding as of December 31, 2024.
Speaker Change: Uh huh.
Speaker Change: In terms of share buybacks year to date in 2025.
The progress demonstrated our dedication to creating value for our shareholders.
Speaker Change: We repurchased a total of 80.7 million class a ordinary shares.
Ian Sean: Our strong conviction and Jd's long term growth and financial performance.
Speaker Change: Equivalent to faulty point 4 million Etfs.
Speaker Change: Which accounted for two 8%.
Ian Sean: Now, let's turn to our Q1 financial performance.
Speaker Change: Of our ordinary shares outstanding as of December 31st Tennessee plentiful.
Ian Sean: Our net revenues grew by 16% year on year to RMB 301 billion in Q1.
The progress demonstrated our dedication to creating value for our shareholders and our strong conviction.
Ian Sean: Breaking down the mix product revenues grew by 16% year on year of which electronics and home appliances revenues were up 17% and general merchandise revenues were up 15%.
Sandy Xu: In the end, we can provide better services to our users and achieve a better experience. In logistic operation and management capability, so JD's existing on-demand retail delivery network and system, as well as our rich experience in B2C e-commerce logistic operation management, can be directly applied to food delivery. By providing food social insurance, including the five insurance and one housing fund in China for the full-time delivery riders, and offering accident insurance and health insurance for part-time riders, JD can improve rider retention and satisfaction, therefore providing our user with better service.
Speaker Change: <unk> long term growth and financial performance.
Speaker Change: Now, let's turn to our Q1 financial performance.
Speaker Change: Our net revenues grew by 16% year on year to RMB 301 billion in Q1.
Ian Sean: Both at a faster pace.
Ian Sean: <unk> to the prior quarter.
Ian Sean: For electronics and home appliances, we saw sustained strong consumption momentum in China as the government continues to implement stimulus policies.
Speaker Change: When it came down to mix product revenues grew by 16% year on year.
Speaker Change: Which electronics and home appliances revenues were up 17% and general merchandise revenues were up 15%.
Ian Sean: J D is well positioned with our supply chain advantages to fulfill consumer demands.
Speaker Change: Both at a faster pace compared to the prior quarter.
Ian Sean: Provide best in class trading experience and further enhance our market position and user mindshare.
Speaker Change: For electronics and home appliances, we saw sustained strong consumption momentum in China as the government continues to implement the tumulus policies.
Sandy Xu: Regarding the specific business goals and plans, at this stage, we are actually more concerned about the user and business experience. Of course, we are also concerned about the scale of business and the ROI invested. Take-out business can have a huge co-operative value with our current core business, and our goal is to further improve the co-operative effect and operating ability of JD's overall ecosystem in the medium and long term, and to provide motivation for long-term growth. Regarding specific business objectives, our current focus for Food Delivery is one, on user and merchant experience, number two, on business scale, number three, on investment ROI.
Ian Sean: Within general merchandise.
Our supermarket and fashion categories recorded double digit revenue growth in Q1.
Speaker Change: J D is well positioned with our supply chain advantages to fulfill consumer demands.
Ian Sean: Further acceleration from a quarter ago.
Ian Sean: General merchandise remains an important engine for our long term sustainable growth.
Speaker Change: Provide best in class trading experience and further enhance our market position and use of mindshare.
Ian Sean: It represents huge market potential.
Speaker Change: Within general merchandise.
Ian Sean: We will consistently strive to improve our operations and user experience in this category.
Speaker Change: Both our supermarket and the fashion categories recorded double digit revenue growth in Q1.
Ian Sean: Yes.
Ian Sean: Service revenue growth also accelerated to 14% year on year.
Speaker Change: Or is the acceleration from a quarter ago.
Speaker Change: General merchandise remains important engine for our long term sustainable growth as it represents huge market potential.
Ian Sean: Q1 within services.
Ian Sean: Marketplace and marketing revenues were up 16%.
Ian Sean: And logistics and other service revenues were up 13%.
Speaker Change: We will consistently strive to improve our operations and user experience in this category.
Sandy Xu: Food delivery business can generate great synergies with JD's existing business. Our mid- to long-term goal is to further strengthen the synergy effect and operational capability across JD ecosystem, providing sustainable growth driver in the long term. Yes, what I want to say is that there is still a lot of room for improvement in our system and operation today. After all, we have only entered this industry for a relatively short time, so our current efforts are still focused on improving our system, users and business experience. So as of today, our system and operational capabilities still have a long way to go.
Ian Sean: For marketplace and marketing this growth pace continue to accelerate sequentially and cure.
Speaker Change: Service revenues grew also a salary to 214% year on year in Q1 within services.
Ian Sean: And both commission and advertising revenues maintained double digit growth momentum.
Speaker Change: Marketplace and marketing revenues were up 16%.
Ian Sean: This was a result collectively driven by many improving trends on our platform, including the increasing user traffic and engagement.
Speaker Change: And logistics and other services revenues were up 13%.
Speaker Change: But market place and marketing its growth pace continues to accelerate sequentially in Q1.
Ian Sean: Our improving traffic allocation efficiency as.
Ian Sean: As well as our expanding <unk> merchant base and product offerings.
Speaker Change: And both commission and advertising revenues maintained double digit growth momentum.
Ian Sean: Now, let's turn to our segment performance.
Ian Sean: JD retail achieved robust growth in both topline and profitability.
Speaker Change: Once the results collectively driven by many improving trends on our platform, including the increasing user traffic and engagement.
Ian Sean: Revenues were up 16% year on year in Q1.
Sandy Xu: We still have a lot of homework to do. Our focus right now is to improve operational efficiency on our system. In India, we have achieved a steady rise in the overall performance, and the double-digit growth trend has continued in the Japanese and white categories. Among them, the double-digit increase in business and fashion revenue has been achieved, and it has accelerated further. In the past two years, the business team has continuously improved its business ability and user experience, and has helped the Japanese and white categories to gradually release growth trends.
Speaker Change: Our improving traffic allocation efficiency as.
Ian Sean: Driven by a solid performance across all major categories.
Speaker Change: As well as our expanding <unk> merchant base and product offerings.
Ian Sean: In addition in Q1 JD Retail's gross margin continued to improve from the tariffs the pass active quarter as we continue to boost our procurement capabilities.
Speaker Change: No.
Speaker Change: Let's turn to our segment performance.
Speaker Change: JD retail achieved robust growth in both topline and profitability.
Ian Sean: And a salary scope of our high margin revenue streams.
Speaker Change: Revenues were up 16% year on year in Q1.
In terms of operating income in Q1, JD retail non-GAAP operating income was up 38% year on year to RMB 13 billion and operating margin.
Speaker Change: Driven by a solid performance across all major categories.
Speaker Change: In addition in Q1 JD Retail's gross margin continued to improve from the house to politics to quarter as we continue to boost our procurement capabilities.
Sandy Xu: Ronald, for your second question, in the first quarter, we achieved a broad-based growth. General merchandise category also maintained its momentum of double-digit revenue growth year-on-year, with both supermarket and fashion categories hitting double-digit growth and further accelerating on a sequential basis. Over the past two years, our team has been relentlessly enhancing operational capabilities and user experience, which is generating results and helping to unlock the growth potential of the general merchandise category. To take a closer look, for fashion category, including apparel, over the past year, we made a lot of efforts in building user mindshare, attracting more users to use JD as their choice for apparel needs.
Ian Sean: Thanks.
Ian Sean: Four 9%.
Ian Sean: We are well on track to continue to drive healthy top line and profit trajectory for JD retail as we move forward.
Speaker Change: And Ah salaried school of our high margin revenue streams.
Speaker Change: In terms of operating income in Q1, JD retail non-GAAP operating income was up 38% year on year to RMB 13 billion.
Ian Sean: Next JD logistics.
Ian Sean: JD logistics revenue grew by 11% year on year in Q1, with both internal and external revenues sustaining double digit growth momentum.
Speaker Change: And the operating margin.
Speaker Change: What 0.9%.
Speaker Change: We are well on track to continue to drive healthy top line and profit trajectory for JD retail as we move forward.
Its soft performance in terms of non-GAAP operating income in the quarter was in line with our expectations as is proactively invested to upgrade fulfillment capacity and user experience.
Speaker Change: Next JD logistics.
Speaker Change: JD logistics revenue grew by 11% year on year in Q1, with both internal and external revenues sustaining double digit growth momentum.
Ian Sean: In addition, JD losses.
Ian Sean: <unk> been working on increasing automation levels across these work streams.
Ian Sean: Warehousing faulting.
Speaker Change: Its soft performance in terms of non-GAAP operating income in the quarter was in line with expectations as is proactively invested to upgrade fulfillment capacity and you'll say experience.
Speaker Change: And last mile delivery.
Speaker Change: This enables JD logistics to improve his frontline employee productivity and safety.
Speaker Change: As well as to further optimize its operational efficiency.
Speaker Change: In addition.
Speaker Change: <unk>.
Speaker Change: Okay.
Speaker Change: That's been working on increasing automation levels across these work streams such as warehousing stocking.
Speaker Change: Moving to new business in Q1 revenues of new business turned around to a positive growth of 18% year on year.
Speaker Change: Okay.
Speaker Change: Last mile delivery.
Speaker Change: At the same time is non-GAAP operating loss widened to RMB, one 3 billion.
Speaker Change: This enables JD logistics to employees from light employee productivity and safety.
Speaker Change: As well as to further optimize its operational efficiency.
Paul: Paul what mainly driven by the fast growth of our KFC business in Q1, a key pillar for us to penetrate into low tier market with.
Speaker Change: Okay.
Sandy Xu: This year, we will further expand our brand selection and merchant base. We will also leverage our supply chain advantages to reinforce our differentiated user mindshare, such as value for money and professionalism for core fashion categories. Additionally, we will provide users with more new releases and best-selling SKUs. This will also empower brands and merchants to achieve higher quality growth on our platform. 商超团队在过往两年也持续提升经营能力,已经连续五个季度取得收入的双位数增长,市能还在不断地加强。 The market size of the Chinese supermarkets is huge. JD.com can continue to play a high-efficiency self-supporting model and supply chain advantages, and further develop and release the co-efficient effect of take-out and instant retail, satisfying users' need for diversification in different shopping scenarios.
Speaker Change: Moving to new business.
Speaker Change: Q1 revenues off new business turned around to a positive growth of 18% year on year.
Speaker Change: A broad assortment of value for money products.
Speaker Change: To better serve user demand and expand our user base there.
Speaker Change: At the same time isn't non-GAAP operating loss widened to RMB, one 3 billion.
Speaker Change: J D food delivery by segment is also recorded on the new business.
Speaker Change: Oh, well, mainly driven by the fast growth of our chassis business in Q1, a computer for us to penetrate into low tier market with a broad assortment of value for money products.
Speaker Change: It just started to scale at the end of Q1, the financial impact was not meaningful in the quarter.
Speaker Change: We are making very fast progress and gaining traction with consumers.
Speaker Change: To better serve user demands and extend our user base that.
Speaker Change: Merchants and providers with our differentiated business philosophy and model in particular.
Speaker Change: J D food delivery by segment is also recorded on the new business.
Speaker Change: We have good ROI for user acquisition.
Speaker Change: It's just started to scale after the end of Q1, the financial impact was not meaningful in the quarter.
Speaker Change: Quarter to date in Q2, we are seeing more tangible results from JD foot deliveries user traffic.
Speaker Change: We're making very fast progress and gaining traction with consumers.
Speaker Change: Retention.
Speaker Change: As well as a great potential to synergize with our retail business and as the entire ecosystem.
Speaker Change: Merchants and providers with our differentiated business philosophy and model.
Speaker Change: Good luck.
Speaker Change: Next let's turn to our consolidated profit performance.
Speaker Change: We have good ROI for user acquisition.
Sandy Xu: The supermarket category team has been continuously enhancing its operational capabilities over the past two years, achieving double-digit revenue growth for five consecutive quarters, with the momentum continuing to pick up. The total addressable market of the Chinese supermarket industry is massive. JD can leverage its efficient 1P business model and supply chain advantages, while further unlocking the synergies brought by food delivery and on-demand retail to meet users' diverse needs across different shopping scenarios. We will focus on improving the user experience and improving the ecosystem of the platform while continuing to drive growth in the white-and-yellow category. 求一的增速进一步加速到20% We hope that this experience will be an effective driving force for our income growth.
Speaker Change: Quarter to date in Q2, we've seen more tangible results from J D food deliveries user traffic.
Speaker Change: In Q1 at the group level, our gross profit was up 20% year on year to RMB 48 billion.
Speaker Change: Tension.
Speaker Change: Gross margin was up 60 bps up to 15, 9% was primarily driven by JD Retail's gross margin improvement.
Speaker Change: As well as the great potential we will synergize with our retail business and does the entire ecosystem.
Speaker Change: Next let's turn to our consolidated profit performance.
Speaker Change: Highlighting the high quality development of our club minutes.
Speaker Change: non-GAAP net income attributable to ordinary shareholders at the group level increased by 43% year on year.
Speaker Change: <unk> at the group level, our gross profit was up 10, 2% year on year RMB 48 billion.
Speaker Change: Okay.
Speaker Change: RMB 13 billion in Q1.
Speaker Change: Gross margin was up 60 bps up to 15.9% is primarily driven by J D retail squash margin improvement highlighting the high quality development of our called minutes.
Speaker Change: With non-GAAP net margin up 82 bps to four 2%.
Speaker Change: Our last 12 month free cash flow as of the end of Q1 was RMB 38 billion compared to RMB $61 billion in the same period last year.
Speaker Change: non-GAAP net income attributable to ordinary shareholders that there's a group level increased by 43% year on year.
Speaker Change: This was primarily due to cash outflows associated with the trading program and our efforts to secure product suppliers too.
Speaker Change: These 13 billion and cool.
Speaker Change: With non-GAAP net margin up 82 bps to four 2%.
Speaker Change: To meet robust consumer demand.
Speaker Change: Our last 12 months' free cash flow as of the end of Q1 was RMB 38 billion compared to RMB 61 billion in the same period last year.
Speaker Change: And this partially offset by our profit expansion.
Sandy Xu: Next, we will enhance the user-centrifuge operation, provide users with a high-quality shopping experience in multiple scenarios, including core retail, instant retail, and take-out, and drive the number of users and the activity to maintain a healthy growth trend this year. While we see the growth momentum of general merchandise, we will continue to focus on user growth and user experience, as well as ecosystem development to drive sustainable revenue growth this year and beyond. In terms of user growth and user experience, our quarterly active customers have maintained double-digit growth for six consecutive quarters, with Q1 accelerating to over 20% year-on-year, an effective driver for our revenue growth.
Speaker Change: By the end of Q1, our cash and cash equivalents.
Speaker Change: This was primarily due to cash outflows associated with the trading program and our efforts to secure product suppliers too.
Speaker Change: <unk> cash and short term investments.
Speaker Change: Totaled RMB $203 billion.
Speaker Change: In summary, the.
Speaker Change: To meet robust consumer demand.
Speaker Change: Strong performance in Q1, once again validates the effectiveness of our long term strategic roadmap.
Speaker Change: And this partially offset by our profit expansion.
Speaker Change: And our strong execution.
Speaker Change: By the end of Q1, our cash and cash equivalents.
Speaker Change: Particularly we're confident for JD retail.
Speaker Change: It's strictly a cash and short term investments.
Speaker Change: <unk> steadily unleash his potential in both scale and operational efficiency improvement.
Speaker Change: Totaled RMB 200 and sweep in it.
Speaker Change: In summary.
Speaker Change: At the same time.
Speaker Change: The strong performance in Q1, once they've gotten bad days.
Speaker Change: We are proactively making exciting halfway into new business to build powerful synergies across the JD ecosystem.
Speaker Change: Activities of our long term strategic roadmap.
Speaker Change: And our strong execution.
Speaker Change: Particularly what coffee then for JD retail to steadily unleashed potential in both scale and operational efficiency improvement.
Speaker Change: And explore long term opportunities.
Sandy Xu: Going forward, we will further refine our user operation capabilities and provide high-quality shopping experience across core retail, on-demand retail, and food delivery business, sustaining healthy growth in both user base and engagement throughout the year. We see that the user experience of 3P business is also constantly improving, which drives the number of 3P users and the number of orders to be presented. With the improvement of the platform ecosystem and users' recognition of JD.com's 3P business and the constant improvement of the quality of the platform, in the long run, the 3P business will gradually release its true potential.
Speaker Change: This takes tremendous efforts, but eventually will generate greater value for our customers.
Speaker Change: Holder and the society at large.
Speaker Change: At the same time.
Speaker Change: We're proactively making exciting halfway into new business to build powerful synergies across the JD ecosystem.
Sean Zhang: With that our turns back to Sean Thank you. Thank.
Speaker Change: Thank you Sandy and yen for the Q&A session. You are welcome to ask questions in Chinese or English and our management will answer your question in the language you asked.
Speaker Change: And Paul long term opportunities.
Speaker Change: It takes tremendous at first but eventually will generate greater value for our customers.
Speaker Change: We will provide English translation for convenience purpose only in case of any discrepancy. Please refer to our state management statement in Orange in a language.
Speaker Change: Holder and the society at large.
Sean Zhang: With that I will turn it back to Sean. Thank you. Thank.
Speaker Change: Operator, we can open the call for a Q&A session. Thank you.
Speaker Change: Thank you Sandy and yen for the Q&A session. You are welcome to ask questions being Chinese or English.
Speaker Change: Thank you for the 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 questions. We will take two questions at a time from each caller. If you have more than two questions. Please request to join the question queue again. After your first question has been addressed.
Speaker Change: <unk> mentioned many will answer your question in the language you asked.
Sandy Xu: In terms of platform ecosystem, as 3P user experience continued to improve on our platform, we saw rapid growth in our 3P user base and order volume, which outpaced the overall growth of JD Retail. With a more established 3P ecosystem and a stronger user mindshare towards our 3P offerings, we expect 3P to gradually unlock growth potential in the mid to long term.
Speaker Change: Will provide English translation for convenience purpose only in case of any discrepancy. Please refer to our state menu misstatements in the Orange in the language.
Speaker Change: Operator, we can open the call for a Q&A session. Thank you.
Speaker Change: If you wish to ask a question. Please press star one on your telephone.
Speaker Change: Thank you for the question and answer session of this conference call.
Speaker Change: To be announced if you wish to cancel your request. Please press star two.
Speaker Change: In order to be fair to all callers, who wish to ask questions well take two questions at a time from each caller. If you have more than two questions. Please request to join the question queue again.
Speaker Change: If you're on a speaker please pick up the handset to ask your question.
Ronald Keung: Your first question is from Ronald Keung from Goldman Sachs. Please go ahead.
Speaker Change: After your first question.
Operator: Thank you.
Ronald Keung: Yes, Andy Ian Hi, Shawn.
Kenneth Fong: Let's go to the second question, please. Good evening, Kenneth. Thank you for accepting my question. I have two questions. The first one is about take-out. We see that JD.com's take-out has also achieved very good results. In a few months, it has been close to 20 million orders. In terms of data, you can also share some user history, some data on cross-sales, short-term and medium-to-long-term unit economic model, U1. In terms of increasing user activity, we also see that the data has significantly improved.
Speaker Change: Yes, if you wish to ask a question. Please press star one on your telephone.
Ronald Keung: Good day to assure a why might that require 19 Goldman <unk> cool.
Speaker Change: <unk>.
Speaker Change: If you wish to cancel your request. Please press star two if you're on a speaker phone. Please pick up the handset to ask your question.
Ronald Keung: Good <unk>.
Speaker Change: Oh, Hey.
Ronald Keung: Welcome to the <unk> food group.
Ronald Keung: One are you will you be unusual madrone Cheetah mobile.
Speaker Change: The first question is from Ronald Keung from Goldman Sachs. Please go ahead.
Ronald Keung: From a contract.
Speaker Change: Sure Mark.
Speaker Change: Yeah, Sandy and Sean Na well no longer he went D E to assure a why might that require a notching Goldman when I drew cool yeah. Good Ddos Sanofi on Calder toll Holtman Judah uncles food to cool why not you would eat Daniel Schmidt Jones, she doesn't move out.
Ronald Keung: Pete.
Ronald Keung: <unk> not only ensure drip and Joe Joseph Ullman Juku later, then John Josh.
Ronald Keung: Sure.
Ronald Keung: Now we can take a photo trucco withdrawn by Japan, that's undrawn.
Ronald Keung: We'll make sure that.
John: John I don't recall.
Speaker Change: From a country hung yeh good cheap.
John: Artful electrical you Johannes <unk> from <unk>.
Speaker Change: Thank you Qi <unk>.
Kenneth Fong: Next, how should we think about financial investment and strategies?
Speaker Change: The waitress shopping electrical.
They are at and I don't want to go didn't only in Chaudry band dual Joselito woman to call up you Nathan Jones.
No way for you to Jim calendar <unk> Goldman Sachs.
Kenneth Fong: The second question is about AI. We can see that different e-commerce platforms are also improving the investment efficiency of advertising through AI. With the gradual improvement of JD.com's 3P ecosystem, the management team can also tell us about the advertising system, some algorithms, and some updates in the investment of AI. In addition to advertising applications, how does AI respond to other business aspects? Thank you. I will translate it for you. Other than advertising, how is AI being applied to our other business segments too? Thank you. Thank you for your question. Let me answer the takeaway question first.
Speaker Change: So how do you and do you get there.
Speaker Change: Thank you Sandy Sean Ian two questions from me one is on a food delivery.
Speaker Change: Oh, no downtown Philadelphia golf withdrawn caused by drip in the sunbelt.
Speaker Change: What do we see as the medium term.
Speaker Change: Well until the night she had a you said John Yeah, I don't recall, Josh So hopefully not too cool you Johanna machine Gee why what my uncle, So you have to do it that way.
For the food delivery initiative beyond maybe three to six months on the two quarters of pretty intense investments and how do we see as the food delivery industry landscape.
Speaker Change: Hey, Trish opinion, that'd be cool no way truth of Jim Congo, Xinjiang should hope not on the face.
Speaker Change: Medium term.
Speaker Change: Second question is on JD retail with the acceleration that you've.
Speaker Change: Thank you Sandy Shawn M E N. Two questions from me one is on a food delivery.
Speaker Change: Commented on across categories also the margin expansion that we've seen or whatever.
Speaker Change: What do we see as the medium term our results for the food delivery initiative beyond maybe three to six months, one to two quarters of pretty intense investments and how do we see as the food delivery industry landscape.
Speaker Change: What have we done in driving particularly apparel and general merchandise strength.
Speaker Change: And what is our strategy and sustaining just overall healthy momentum beyond the training program into the second half. Thank you.
Speaker Change: Medium term.
Speaker Change: Second question is on JD retail with the acceleration that you've.
Speaker Change: Cities are now da Vinci, our solar fleet that Peter.
Speaker Change: Commented on the cross categories also the margin expansion that we've seen or what have we done in driving particularly apparel and general merchandise strength and what is our strategy and sustaining just overall healthy momentum beyond the training program into the second half. Thank you.
Speaker Change: <unk> aren't going to tissue that cutoff high initial years enhancing.
Speaker Change: Our main tissue to ensure that <unk> and <unk>.
Speaker Change: <unk> potentially sure no short term.
Speaker Change: Tom that Apple can tissue in shock of Miu pathogen is anticipated those ships on a question that until you lap Truvada Manhattan, anchovy and shutdown tissue ensure none within our tissue has should conduct <unk> John <unk> CTO.
Speaker Change: Hi, this is on the other.
Speaker Change: And here I was still athlete that Chico.
Speaker Change: How does he should those they don't go into a T shirt that cut off all your initial Houston. That's exactly you saw a woman fishing show. So that May you will see from the Ginger Oh, no what they southeast occasionally Shaw Michelle's cannot tell him that applecart fishing show cause that may you touched on the transition those ships for them no question that until you lap.
Speaker Change: Women now legal and shorten our Mi sharpie neon quality clinical exactly on par the golar tundra.
Speaker Change: Our <unk> position in total now jumping takeout consistent all the year.
Speaker Change: Our <unk> momentum.
Speaker Change: Father, not Hudson Julien Donkey shouldn't show now moving on to Shanghai, Chicago, You don't put D. C O G on the call sheets show not a woman now see that's illegal in children, how well me shocking electric vehicles, that's where you'll find the coal tons. Yeah. Yeah. I mean, my mother, she shouldnt children's downtown Tempe culture consistent.
Rajeev: Hi, Rajeev <unk> to lead a year.
Sandy Xu: Our team has been looking at the data. We expect that if we can't exceed 20 million orders today, the milestone will be broken very soon. This is also very important for our business. Our team is very excited. We have gradually seen that takeout has a positive impact on the traffic of JD's platform and new users. At the same time, it has also improved the overall traffic conversion rate. At present, we also see that the re-purchase rate of takeout users is healthy. And we are using the same app to do this business. We have also seen the purchase behavior of takeout users across categories.
Rajeev: Our EMEA may tissue ensure bulk of MSR ne.
Rajeev: Cool.
You can see how the year, please don't Miss sales.
Speaker Change: Sean status with wind catcher.
Speaker Change: Thank you Ronald let me first take the question on on demand retail and <unk>.
Speaker Change: You walk into our Miami pseudo my mother year, why shouldn't you you want mentor, he Shanghai Wuxi thought see Tom <unk> to lead a you know.
Speaker Change: Food delivery that people really focus on.
Speaker Change: So I'll share my thoughts are regarding on demand, which our <unk> business in the opening remarks, let me elaborate further here.
Speaker Change: Well me and makes you shouldn't even show vocal that might sound a little less so.
Speaker Change: Cool.
Speaker Change: I Couldnt see healthy yeah. Please don't want me, saying, yeah, we'll changsha and seek out it's just conjecture.
Speaker Change: First from a strategic perspective on demand retail and food delivery business is a natural extension from Jd's core retail business.
Speaker Change: Thank you Ronald let me first take the question on on demand retail and footed read that people really focus on.
Speaker Change: So with the goal to provide users with a more diverse shopping experience and scenarios.
Sandy Xu: At this stage, we may... 生活服务类的品类 Thank you, Kenny, for your question. Yes, our team is paying close attention to this data right now. If we don't achieve $20 million today, it will happen very soon in the near future. This is an important milestone, and we feel very encouraged by this progress. In a very brief time of three months after launch of JD Food Delivery, we have seen groundbreaking progress and very positive results. On the user side, food delivery daily order volume are growing very rapidly. We have gradually observed food delivery positive impact on traffic and user acquisition, as well as boosting overall traffic conversion rate.
Speaker Change: So I shared my thoughts are regarding all demand, which I'll ask what delivery business in the opening remarks, let me elaborate further here.
Speaker Change: Food delivery has the highest order volume mix and frequency within on demand retail therefore, JD food delivery business is deeply rooted in gd overall business ecosystem.
Speaker Change: First from a strategic perspective on demand retail and food delivery business is a natural extension from J D. S core retail business.
Speaker Change: It is not a stand alone business, we believe on demand retail, including food delivery will create great synergy with <unk> existing business in terms of users supply chain and fulfillment going forward.
Speaker Change: So with the goal to provide user with a more diverse shopping experience and scenarios.
Speaker Change: Food delivery has the highest order volume mix and frequency within on demand retail therefore, Judy food delivery business is deeply rooted in G. D. Overall business ecosystem. It is not a stand alone business, we believe on demand retail, including food delivery will create great synergy with <unk>.
Dana show CNN Timberland message Harlequin will die.
One change on this are talking high normal seasonal or cancer or Shanghai, Hello tissue brain.
Speaker Change: <unk> was down on a CTO.
Speaker Change: 18 months now bulk Oreo holidays, shifting angiography and Jerome out of CTO shutout the Arlington, the CTO tissue data help autonomous should show.
Speaker Change: Existing business in terms of users supply chain and fulfillment going forward.
Sandy Xu: Currently, repeat rates among food delivery users are very healthy. Since food delivery business is integrated in JD app, we are also seeing initial cross-selling trend emerging on JD's platform, primarily in supermarket and lifestyle service categories. On the merchant side, we also see that the supply of take-out merchants has been achieved from nothing to something in a very short period of time, and the number of stores we have registered has exceeded 1 million. The demand for merchants to open stores is still very high, and many stores are also in the process of registering in the system, which has also caused a lot of pressure for our team to register merchants.
Speaker Change: They know shows here now to go to them.
Speaker Change: China grew more than that.
Speaker Change: Number higher the GCC Cho cell Mccullough tissue feature fulfillment and Don Mckiernan, Lee <unk> pension, Tony lie Coty and the yield up.
Speaker Change: Lunch angle and that's how I took up some high number two so not all of them and can say, you'll cool sounds Yahoo, Chipotle sure Hay with that on the sheets show them. Some 18 months not bulk who you don't put those shipping Unshell pizza I imagine CTO shuts out the Arlington, the CTO easy short take on how about Thomas.
Speaker Change: <unk> Yoshi two months, but.
Speaker Change: No matter, what you do in bulk with <unk>, while <unk> Hale maintain quality leadership team.
Speaker Change: Sure No mahonia Theyre just as she chose tell him because he's just he's also mentioned Don what's fundamentally I don't definitely possible and then pension Tony life co C&I yield off.
Julio: <unk> Julio <unk> now remaining.
Speaker Change: Sure.
Speaker Change: In EMEA.
Speaker Change: Yeah that was a CTO.
Speaker Change: Suzanne.
Speaker Change: So two months, but.
Speaker Change: Yes, so I would put there is a massive market with significant demand waiting to be fulfilled. So first putting the market in China is still growing rapidly with ample room for multiple platforms to thrive.
Speaker Change: Now much of it you don't vote click and don't you'll have you changed up some high since you well may you see LIFO some over the hill.
Sandy Xu: Because the demand is indeed very high, this also helps us to quickly and richly establish business communication based on geographical location. On the merchant side, we expanded from 0 to over 1 million onboarded stores in a short period of time. And merchants' onboarding demand remained exceptionally strong, and we feel the pressure, for sure, with a lot of stores that are currently under the system connecting process. This also enabled us to rapidly expand our location-based product offerings. Yes, it's the same on the rider side, the feedback is also very positive. We also see a lot of riders who have strongly joined the will.
Speaker Change: And telco leader leadership seamless E Z Hulu, the telco, Louisiana, Oklahoma.
Speaker Change: Currently there are demands for users merchants and riders waiting to be fulfilled including user demand for food safety and quality merchants demand for reasonable commissions and wider demand for better protection JD has the right strength culture advantage to address.
Speaker Change: Now were men.
Speaker Change: E G.
Speaker Change: Oh man.
Speaker Change: Yeah, Yeah, that's just issued shortly.
Speaker Change: Yeah. So it's putting reason matson mark a market with significant demand are waiting to be fulfilled. So first split the remark in China is still growing rapidly with ample room for multiple path for them to fly.
Speaker Change: Such demand, including JD is better and cheaper brand awareness the 35.
Speaker Change: Currently there are demands phone users merchants and riders waiting to be fulfilled including user demand for food safety and quality merchants demand for reasonable commissions and why theres demand for better protection.
Speaker Change: Principal that insist on taking only reasonable profit.
Speaker Change: Strong logistics operation and management capabilities.
Speaker Change: So JD is both capable and willing to address this demand.
Speaker Change: He has the right strength culture advantage to address such demand, including J D is a better and cheaper brand awareness. The 35 cents a principle that insist on taking only reasonable profit and its strong logistic operation and Matt.
Sandy Xu: Our platform riders are also in a serious shortage, we are also rushing to work. These also reflect that the potential of the industry is huge. It also proves that the needs of users, merchants and riders are also very strong. At the same time, our team execution ability is also very strong, but we are also gradually building up our own ability. On the rider side, we see the same momentum. So the responses from riders are very positive, with many riders showing great enthusiasm. We even don't have sufficient uniforms for new signed up JD riders. So definitely seeing very strong interest from a large number of riders eager to join JD platform.
Speaker Change: Essentially it casually cannot Johan <unk>, Canada, <unk> now since our meal south ambulatory other new volume.
Speaker Change: <unk> and <unk>.
Speaker Change: CME Lafitte Hudson could you.
Speaker Change: We obtained <unk> <unk> since with CME.
Speaker Change: And capabilities.
Speaker Change: So G D is both capable and willing to address this demand.
Speaker Change: <unk>, new holiday shipping Unshell corruption, Joanne <unk> CTO, Dan our <unk> channel <unk> shunt annual tradition for bill to have plenty to do 19, Butcher holzschuh women, particularly on the senior.
Speaker Change: Well its actually its on casually.
Speaker Change: Okay ended up some passenger now now it seems that what meal, south and go eat Toyota Neal.
Speaker Change: Now you can see in the last few tungsten carbide no.
Speaker Change: So let me elaborate a little bit further here J D Brent image of better and cheaper.
Speaker Change: No Kinder pubescent true not just enough to keep onto them and if I may here was just with Tami.
Speaker Change: <unk> has already built the mind share of better and cheaper among all of our nearly 600 million annual active customers, which will help our food delivery business quickly build user trust and meet user demand for safe and quality meals.
Speaker Change: Nine months, so we don't put a subpoena unshell ups in July might've Shitshow don't know what May you show Charla Honeywell to younger adult shunts agile tradition, but Belgium hooked plenty to do 19 puts you hunt shoot women, particularly you don't put us in that.
Sandy Xu: All this demonstrated the immense potential of the industry. We are seeing very strong demand from all three parties. While this also validating our precise understanding of user demand and our strong execution capability, our team, we have to say we are still in the stage of building our fundamental capability. Yes, but in fact, our business is only a matter of a few decades of rapid development. So, in fact, many of our operations and system capabilities are still in the process of being built and continuing to be optimized, including some of these cross-products, such as the function of pulling, etc.
Jason Brent: So let me elaborate a little bit further here, Jason Brent image or better and cheaper.
Speaker Change: Of course as you know TD also establish the industry's trickiest merchant Onboarding, we view standards and management system.
Do you think that's already viewed the mindshare of veterans shipper, among all of our nearly 600 million annual active customers, which will help our food delivery business quickly build user trust and meet user demand for safe and quality meals.
Speaker Change: Which will further enhance user mind share and trust with Jamie.
Speaker Change: Hopefully some only <unk> newmont has C G.
Jason Brent: Of course as you know did he also establish the industry's trickiest merchant Onboarding, we do use tenders and management system.
While shipments of Stephens.
Amanda: <unk>. Thank you Amanda.
CJ: Thanks, CJ <unk> now Unfortunately, the young Chinese Namath Tinder <unk> National Korea, shortly to see that the neutral zone in symptom silicone hydrogel now.
Jason Brent: Which will further enhance user mindshare and trust with Jamie.
Jason Brent: They are hopefully some only bearing to the issue of mental shouldn't. They tell you just how would you teach full I, though you could see in Dundee Yeah. My mom has C G.
Sandy Xu: So, in a short time, we can share more information with you, including benefits. At this stage, perhaps our focus is still on providing users with a better experience to improve our own operating capabilities and our system functions, and then to create a healthier ecosystem for the business, and of course, to provide more secure work for our take-out customers. The specific investment is actually built around the needs of these three partners. We also fully realized that JDA is still in a very early stage with rapid development. We have to note that JDA full database is only launched within a few dozen days.
CJ: Donlin gold conducting two new champion a chiller <unk>, sometimes the transformation plan now that I cannot detail <unk> fill in Shanghai.
Speaker Change: Oh sure Mr Stevens.
Jason Brent: And pushing that yes, we see a woman that's all done.
Jason Brent: Frito funny that leaving celadon clusium, not unfortunately to young Chinese my mom didn't if I might you like on that deal in Nashville Korea shortly to see that the yoga songs alcohol syndrome.
CJ: <unk> tangible book and don't buy Madder, Shanghai clean the adult <unk> no question.
Speaker Change: Regarding 35 principle. It is a principle that our founder insisted on and J D shares to us.
Jason Brent: Oh, yeah, yeah, sometimes I'm going to come back onto the champion is too low.
Jason Brent: Sometimes it doesn't sound issue right now that's how you cannot you can't won't mean T shirts filling pressure die.
CJ: Since day, one of our <unk>.
CJ: Operation, which is maintaining healthy yet only reasonable profit margin by lowering commission rates and providing better traffic support to quality merchant.
Jason Brent: Yes, and just handle it goes into my mother, she comes out clean the adults Union meeting no questions Huh.
Jason Brent: Regarding 35 cents principle, it just a principle that all ponder insist it all and J D. The shears to since day, one of our operation, which is maintaining healthy yes, only reasonable profit margin by lowering commission rates and providing.
CJ: We can enable merchants to forecast food quality. This is a positive cycle.
Sandy Xu: So some of the operational initiatives are still being implemented, and the system optimization is still ongoing.
CJ: So for example merchant joining J D. A food delivery platform before May 2025 will enjoy a zero commission for the year.
Sandy Xu: I think we're able to share more details, including UE and cross-category synergies at a later stage. Our current focus is to work on enhancing user experience, upgrading operational capabilities, building a healthier ecosystem for merchants, and providing secure employment for riders. Our investment will be centered around better meeting the needs of these three parties, namely user, merchants, and riders. Yes, we do think that the food chain is a long-term and sustainable business for JD. Of course, there will be some investment in the short term. At the same time, we also believe that as the scale increases, the business itself will gradually release its scale effect and improve efficiency.
CJ: Jose.
CJ: <unk> now momentum during the additional insured peso number lower proceed tissue and Patheon Daniela now marching elements element to loader.
Jason Brent: Better traffic support to quality in merchant.
Jason Brent: We can enable merchants to folks on food quality. This is a policy of cycle.
Jason Brent: So for example merchant joining J D. A food delivery platform before May 2025, well enjoyed zero commission for the year.
CJ: <unk> Horta <unk> deal.
CJ: No material changes in Ghana, <unk>, CEB <unk> changes tissue analyses to.
Jason Brent: And as I hope that she's a hook.
Jason Brent: For calling on me for me enough now where mental donor tissue and she'll peaceful number Noah, let's see fishy breaths, yeah Daniela.
They tend to the tissue <unk> device sales I think <unk> seen that Chico tissue <unk> now <unk> key go hop out the woman that Johan <unk> <unk>, yes.
Jason Brent: Now women men to Louisville.
Jason Brent: Oh Dong just wouldn't be to see what that means for funny somebody yoshi hold that.
Jason Brent: <unk> yeah.
Speaker Change: No Matt you said trenches in Ghana Glenny, Yeah, you create a framework that might at times, you see me, but my God changes T shirt or something else. He can maintain traditional chicken wing Eli I. Thank all of you last year that she thought she showed them and things you know coming into now two 2 million key go hop out the woman who likes it.
CJ: The largest operation and management capability for <unk> existing on demand retail delivery network and system as well as our rich experience in B to C. E Commerce logistics operation management can be directly apply to food delivery by providing food social insurance, including the five ensuring from one house.
Sandy Xu: And more importantly, as I mentioned earlier, this business will grow in our entire ecosystem. In the future, our core e-commerce retail business, as well as our logistics business, may have great co-operative value. In terms of user traffic, shopping ratings, and cross-product shopping, they can all contribute to us. At the same time, in terms of delivery capacity, technical data, and other aspects, it can also bring about an efficiency boost and a reduction in costs.
Jason Brent: Golf, Washington College, Yeah.
<unk> funding, China for the full time delivery riders and offering exited in insurance and health insurance for parkland riders CV will <unk> improve.
Jason Brent: The largest operation and management capability, so judy existing on demand retail delivery network and system as well as our rich experience in B to C. E Commerce logistic operation management can be directly apply to food delivery by providing food social insurance, including the five ensuring sound one.
CJ: Improved rider retention and satisfaction, therefore, providing our user with better services.
CJ: Okay.
CJ: Cheetah mobile <unk> networks and data in a tissue among contact going to the high share.
Jason Brent: Housing fund in China, where the food time delivery riders and offering accident insurance and health insurance for parkland writers J D will improve.
CJ: Quick question on that yet.
Sandy Xu: So therefore, we made a strategic decision to enter the food delivery business. with the focus on building a sustainable long-term business rather than achieving short-term financial targets for any particular quarter of the year. We're confident that as the business grows, it will gradually realize economic scale and operational efficiency improvements. More importantly, being deeply rooted within JD's overall ecosystem, the food delivery business holds significant synergetic potential with our on-demand retail and our core retail operations going forward, including driving incremental growth in user traffic, purchase frequency, and cross-selling, while enhancing efficiency and reducing costs through optimized delivery network utilization and data-driven technology enhancement.
CJ: <unk>, Peru the ROI.
Jason Brent: Improved rider retention and satisfaction, therefore, providing our users with better services.
CJ: Now that May you may see on the casino will touch on SEDAR the statement that year, our minimal beyond the year 2015 petition Kingdom issued hydro season, selling choline and Lee may consider zinc content.
Jason Brent: Okay, great to Cheetah mobile hook Lila nothing since they're doing that to show up and then come back onto the high should Oh gosh I'm sorry, Yeah, No no. Let me according to your way more but Peru, Oh I am now that May you may see on the foreseeable chinchillas.
CJ: Lee.
CJ: Regarding specific business objectives, our current focus for put there is.
CJ: One on usage user and merchant experience number two on business scale number three all investment ROI for the <unk>.
Jason Brent: G by the savings that you owe them and then we'll be on the year. She said don't have TCE, but she has shown him don't tell him he shouldn't hydro Sakhalin and selling them clean me many times he doesn't come from jobs, you're going to meet.
CJ: Our business can generate great synergies with <unk> existing business.
CJ: Our mid to long term goal is to further strengthen the synergy effect and operational capability Cross JD ecosystem.
Jason Brent: Regarding our specific business objectives. All current focus will put the there is one on usage user and merchant experience number two on business scale number three all investing in ROI food delivery business can generate great synergies with your existing business.
CJ: Providing sustainable growth.
CJ: Driver for in the long term.
Sandy Xu: The second question is about advertising. Let me answer this one. We are very active in embracing the great opportunities of AI and automation. We believe that AI and automation can deeply rejuvenate the retail industry. Not only can it improve operating efficiency and reduce costs, but it can also greatly improve user experience and bring innovation. At present, we are also widely testing and applying AI technology in a wide range of sales scenarios and supply chain chains. Let me share my thoughts on your second question on AI Adoption in Advertising. We are actively embracing the tremendous opportunity presented by AI and automation.
Speaker Change: I'm sure that she and I will just add Simpson tissue Amanda.
Speaker Change: Sit home <unk>, Xiaomi and Tricia <unk> sit on that acquisition closing you may begin enrollments had to take a hernia someday should empty hardware same with gen. One <unk> actually found that actually element as at home.
Jason Brent: Our mid to long term goal is to further strengthen the synergy effect and operational capability Cross JD ecosystem.
Jason Brent: Providing sustainable growth are a driver for us in the long term.
Speaker Change: <unk> in Shanghai.
Speaker Change: So as of today, our system and operational capabilities to have a long way to go we still have lots of homework to do our focus is doing right.
Jason Brent: Hey, what's I'm sure that she noticed that Simpson tissue woman them, Oh Hell women that are huge I mean Fisher Halo three turns out excision Cynthia you maybe see a woman has generally just a hernia someday she didnt pick up that same with San Juan and I can do that to me has just gone down and I'm kind of woman does sito or you don't.
Speaker Change: Right now is to improve operational efficiency are all system.
Speaker Change: Well known.
Speaker Change: Argentina, yes at our Shanghai, Youre backing way sooner followers with a harsher.
Jason Brent: You found out that he actually I'm here.
Jason Brent: So as of today, our system Oh personally coopervision, you still have a long way to go we still have a lot of homework to do a full because these students are right now is to improve operational efficiency are all system.
Speaker Change: <unk> shown Charles push on the show forging Dod are struggling through.
Speaker Change: <unk> for Gaslog.
Speaker Change: Yes <unk>.
Sandy Xu: We firmly believe these technologies will profoundly transfer the retail industry, not only by enhancing operational efficiency and reducing costs, but also by significantly improving user experience and innovating business models. Currently, we are testing and applying AI technologies across numerous retail scenarios and the entire supply chain network. At the demand side, we are improving the high-efficiency and accurate connection between demand and supply through better recognition and incentive demands of AI. For example, we are optimizing our search engine system through AI. At the same time, we are actively exploring more new AI applications, including more efficient AI purchasing.
Speaker Change: Two the Dubai accumulated through grocery pharmacy with Santander.
Jason Brent: Yeah.
Speaker Change: Ronald for your second question in the first quarter, we achieved broad based growth general merchandise category also maintained its momentum of double digit revenue growth year on year with both supermarket and fashion categories <unk> double digit growth and further accelerating on a sequential basis.
Speaker Change: People woman who's here.
Jason Brent: Yes, you know ones, yes, Sean Yeah, you're backing away yeah, Yeah sure followers with a syndrome Pasha.
Speaker Change: So you don't want Sean Charles Busch, Susana, So there's little James Dodd All Summer school.
Why do you think will jostle Ah Yeah, we'll try and do is I called out without Houston thing I'll leave you with that.
Speaker Change: Over the past two years, our team has been relentlessly enhancing operational capabilities and user experience, which is generating results and helping to unlock the growth potential of the general merchandise category.
Speaker Change: Good to be true core shoebox with them talking about safety.
Speaker Change: Ronald for your second question in the first quarter, we achieved a broad based overall general merchandise category also maintained its momentum with double digit revenue growth year on year with both supermarket kind of fashion category teaching a double digit growth and further accelerating on a sequential basis.
Speaker Change: <unk>.
Sean Zhang: Sean can lag I hope bulk of draw.
Sandy Xu: At the supply side, we are also continually updating a series of tools based on AI to help the merchants reduce the cost. At the same time, we will also improve the efficiency of search engine selection, pricing, etc. through AI. Based on JD's unique supply chain advantages and accumulation, we will also develop AI smart objects to help reduce the cost and improve human efficiency. So on the demand side, we are leveraging AI to better identify and stimulate user demand, enhancing the precise matching between demand and supply. For example, we are using AI to reform the search recommendation system.
Speaker Change: Our quarterly now on months, ending <unk> portfolio <unk> will draw ship Berthing north withdraw.
Speaker Change: Over the past two years, our team has been relentlessly in housing operational capabilities and user experience, which is generating results and helping to unlock the growth potential of the general general merchandise category, Oh, excuse me like hard to use your shopping leg I hope I'll call from Tal.
Speaker Change: <unk> <unk> other.
Speaker Change: Moshe <unk> Cowen <unk> <unk> laser therapy.
Speaker Change: Ill try to tie us into being where you want to take longer and broader thinking about truly king pine Shanghai team hotshot quarter culture.
Speaker Change: Countries now a woman named who seem to cause all youll. All else is involved will draw <expletive>, losing north will draw no senior woman I haven't seen you bought T jumping high school it sounds as though.
Speaker Change: I want to take a closer look for fashion category, including apparel over the past year, we made a lot of efforts in building user mindshare, attracting more users to use <unk> as their choice for apparel needs.
Sandy Xu: In the meantime, we are actively exploring innovative AI application, including more efficient AI-powered shopping assistant. On the supply side, we are consistently upgrading a series of AI-powered tools for merchants to reduce cost and improve efficiency. Concurrently, we are enhancing the productivity of JD 1P procurement and sales operations through AI, optimizing efficiency during sourcing, product selection, and pricing. Leveraging JD's unique supply chain advantage and experience, we are developing AI agents to significantly boost productivity for our sales and procurement personnel. Of course, there is more room to imagine not only AI, but also unmanned technology at the logistics end.
Speaker Change: What's your phosphate Cornelia Yoshi jobs, that's awesome Sampson later sure Jackie Oh dry year to tie your boss injured.
Speaker Change: We will further expand our brand as elections and merchant base.
Speaker Change: Well you won't hold people, who can do the same thing Paul P. Julie Kim powerful Shanghai.
Speaker Change: Also leverage our supply chain advantages to reinforce our differentiated user mindshare, such as value for money and professionalism for core fashion categories.
Speaker Change: Shall I pick a voucher.
Speaker Change: I want to take a closer look well fashion category.
Speaker Change: Including apparel over the past year, we made a lot of actors in building user mindshare, attracting more users to use J D. As their choice for apparel needs. This year, we will further expand our brand this election and emerging space well will also leverage our.
Speaker Change: Additionally, we will provide users with more new releases and a faster selling skus. This will also empower brands and merchants to achieve higher quality growth on our platform.
Speaker Change: Sean 1200, Zajac all along.
Speaker Change: By channel, our da Vinci, Jade to reinforce our differentiated a user mindshare such.
Speaker Change: <unk> leasing <unk> showed the strongest with Sandra.
Speaker Change: It has value for money and professionalism.
Speaker Change: Shimon hydrocodone downtown.
Speaker Change: <unk> Shanghai, Hong is Sean gave more choose our nursing home trial should play shoe filed which will cost us even more share.
Speaker Change: Core fashion categories.
Speaker Change: Additionally, we will providing users with more new releases and the fastest Sterling S. K U.
Sandy Xu: In the long run, it can certainly promote the improvement of warehouse work efficiency and the reduction of operating costs. Of course, on the fulfillment side, not only AI, but also automation holds a lot of potential for efficiency gain.
Speaker Change: <unk> pool.
Speaker Change: Well also empower brands and merchants to achieve higher quality wells on our platform.
Speaker Change: Your final Wimax. Additionally shows that Idose is on Saudi.
Speaker Change: And to your quarter proton coal challenging each other guar future.
Sean: Sean telephone, there's a cool yeah, yeah sure T renting leasing yeah, sure seafood cheese lush over their strongest with Xinjiang.
Speaker Change: The supermarket category team has been continuously in housing is operational capabilities over the past two years, achieving double digit revenue growth for five consecutive quarters with the momentum continuing to pickup.
Sandy Xu: We're implementing robotics automation technology across standardized warehouse process to enhance operational efficiency at every stage, reduce employment workload and drive productivity and reduce operational costs through our warehouse operation.
Speaker Change: Oh <expletive> ER hydrocodone gotcha.
Dromgoole: Dromgoole, Shanghai, Hong Yeah, there, Sean gave more truth that no single trial should clean she foggage walk ourselves that's even more true.
Speaker Change: The total addressable market for the Chinese supermarket industry is massive JD collaborate is efficient <unk> business model and the supply chain advantages, while further unlocking the synergies brought by food delivery and on demand retail to meet users' diverse needs across differing to shop.
Dromgoole: The Queen and you'll shoot Big Gene pool had Bob sure why my so that's usually shows that those skus on shelf.
Sandy Xu: First, let's talk about the application of AI in advertising business. The advertising team is currently improving the algorithm of advertising through AI models. Improving the effect of recommendation leads to an increase in conversion rate. Of course, it will ultimately promote the accelerated growth of advertising revenue. At the same time, we are also exploring and landing in the field of advertising placement, the AI agent. Businesses can use simple instructions to allow AI to perform complex advertising placement operations. Especially in the past two years, more than 1 million new businesses have joined JD.com. We also believe that this type of AI agent can help these businesses significantly improve the efficiency and effect of their advertising placement to reduce the cost and difficulty of their business.
Dromgoole: So we'll put that put on cold tells me, it's either go out Washington.
Dromgoole: The supermarket category team has been continuously and housing is operational capabilities over the past two years, achieving double digit revenue growth for five consecutive quarters with the momentum continuing to pick up.
Speaker Change: Scenario.
Speaker Change: <unk> shoot that all rounder kosher four months down to gel saw important job.
Dromgoole: The total addressable market of Chinese supermarket industry is massive J D. Collaborate is efficient one P business model and its supply chain advantages. While further allo team has seen a jeep brought by food delivery and on demand retail to meet users' diverse needs across differing to shop.
Speaker Change: TN future sampling.
Speaker Change: Sampling passion has chosen.
Speaker Change: Thank you.
Speaker Change: Sure John.
Speaker Change: Foods in Darfur TVN shop for Windows to go module onshore eating lunch.
Speaker Change: Thanks, John.
Sandy Xu: At present, you can see that our advertising revenue has also achieved a double-digit increase and is accelerating. I believe that there is still a lot of room for advertising placement in the future. Through AI models, we can also improve efficiency to drive longer-term sustainable growth. In terms of AI application for advertising business, our advertising R&D team is leveraging AI large language model to enhance ad algorithm and recommendation effectiveness. driving higher ad conversion rate and accelerating the ad revenue growth. We are actively developing and implementing ad power advertising agents that can execute complex ad campaigns through simple commands from merchants.
Speaker Change: So either sensible thing you bought SaaS with our patterns are actually Sean George.
Speaker Change: Not really.
Speaker Change: Oh, sorry, piping shoot that don't sit down but of course your four months yeah huge also how important jobs well it'll hold T N T shirt.
Speaker Change: Marshall <unk>, our chief only.
Speaker Change: Thanks ally woman down Centennial for the things you are doing.
Speaker Change: <unk>, who is in the initial tissue in April one item, both challenging charter culture around the cohort yet.
Speaker Change: One champion passion had seen in children.
Speaker Change: Thank you.
Speaker Change: Oh sure.
Speaker Change: Yeah.
Speaker Change: For quarter, two that Union, Berkshire Gen content on nutrition.
Speaker Change: Oh food, then Jock with T N shop woman does seem to call, Matt Youll hold true each England shooting.
Speaker Change: While we see the growth momentum of general merchandise, we will continue to focus on user growth and user experience as well as ecosystem development to drive sustainable revenue growth this year and beyond.
Speaker Change: Oh.
Speaker Change: Yeah.
Speaker Change: So either sensible thing, Bob Joslin pop up and you actually can shop when they want.
Speaker Change: Sure John do you sell it you don't be shy.
Speaker Change: Woman Johnson County, all the things you Hot Union.
Speaker Change: In terms of user growth and user experience our quarterly active customers haven't maintained double digit growth for six consecutive quarters.
Speaker Change: You don't have to go on bulk pool seem to ensure tissue actual well why might then bought challenging times, our culture around the go to yet.
Sandy Xu: With particular focus on serving the over 1 million merchants who have joined JD platform in the past two years, we believe AI agents can help merchants enhance ad efficiency and campaign effectiveness while significantly reducing operational costs and complexity for business. Currently, our advertising revenue has continuously achieved double digit growth with accelerating momentum. We firmly believe there is significant potential for monetization, particularly through AI large language model-driven efficiency gains that will fuel sustainable long-term growth. Of course, I forgot to say that the production of advertising and marketing materials is also a basic application of AI. With the popularization and application of video large models, I believe that this will have a more obvious effect in the future.
Speaker Change: Ooh Ooh Ooh Ooh Ooh that junior box should cause us not to.
Speaker Change: Q1 accelerated accelerating to over 20% year on year.
Speaker Change: Sure.
Speaker Change: While we see the growth momentum of general merchandise, where we'll continue to focus on the user growth and user experience as well as ecosystem development to drive sustainable revenue growth this year and beyond.
Speaker Change: Active driver for our revenue growth going forward, we will further refine our user operation capabilities and provide high quality shopping experience across core retail on demand in retail and food delivery business.
Speaker Change: In terms of unit growth and the user experience.
Speaker Change: Rotary axiom customers haven't maintained a double digit growth for six consecutive quarters at least Q1 actually accelerating to over 20% year on year.
Speaker Change: Any healthy growth in both the user base and engagement throughout the year.
Speaker Change: Woman cant Sam PEO <unk>.
Speaker Change: Yes.
Speaker Change: Sure.
Speaker Change: Actually the driver for our revenue growth going forward well, we'll further refine our user operation capabilities and provide high quality shopping experience across core retail all demand in retail and the food delivery business sustaining healthy growth in both user base and engagement.
Speaker Change: <unk> June trends in food.
Speaker Change: Sure sure.
Speaker Change: Functional are yielding short antidote.
Speaker Change: So as European passion, either one China into Europe.
Speaker Change: In both <unk> future.
Speaker Change: Tonnes silicone <unk> will turn to Wuxi Boston downtown.
Speaker Change: So I would say a year.
Speaker Change: In terms of platform ecosystem as <unk> user experience continue to improve on our platform. We saw rapid growth in our three key user base and order volume, which outpaced the overall growth of JD retail with a more established three P ecosystem and a stronger user mindshare.
Speaker Change: Woman Condor San P T.
Sandy Xu: So, in general, we think that JD has a lot of scenes of our own supply chain. So, this naturally provides a very suitable soil for the wide application of AI in retail and supply chains. It also provides us with the opportunity to infiltrate the application of AI into every aspect of our business to help us drive long-term growth in income and profits. Of course, I forgot to mention there's a great potential for AI adoption in advertising content generation. So in summary, we believe JD differentiated capability and extensive scenario across the entire supply chain provide the most fertile ground for widespread AI adoption in retail and supply chain operation, presenting us with unique opportunity to deeply integrate AI into every retail scenarios, ultimately enhancing operational efficiency, enhancing user experience and unlocking long term revenue and profit growth potential.
Speaker Change: Yeah Yeah.
Speaker Change: T shirt.
Speaker Change: Some people, who think that allowance June trends in food.
Speaker Change: Sure.
Speaker Change: Chip auction are you like co tenancy does pencil.
Speaker Change: So you're jumping I shouldn't hydro one Chinese young who they seem to authenticate where they're getting close to St. Jude up without T shirt.
Speaker Change: There towards our three key offerings, we expect tier three to gradually analog growth potential in our made to long term.
Speaker Change: Tons here that kind of vampire with John to Wuxi Boston downtown.
Speaker Change: In terms of platform ecosystem.
Speaker Change: Thank you, let's go to the second question. Please.
Speaker Change: Felipe you user experience continued to improve on our platform. We saw rapid growth in our three P user base in order volume, which alger pace than the overall growth of JD retail with a more established a three P equal system and a stronger user mindshare towards our Threep XI offering.
Speaker Change: Thank you. The next question is from Ken Paul.
Speaker Change: Please go ahead.
Speaker Change: Hey, good morning Cc <unk>.
Speaker Change: <unk>.
Speaker Change: Macondo Ding-dong why my quarter fiscal Yoshida towards it.
Speaker Change: After three P to gradually analog growth potential in a major to long term.
Doug: Doug <unk> you June one Doug.
Doug: So what you're telling me you're quantifying your franchise you always hear you Peter.
Speaker Change: Thank you, let's go to the second question. Please.
Speaker Change: Turning now Joseph householder Soo cheol.
Speaker Change: Thanks.
Doug: <unk> totally cheetah downward motion.
Speaker Change: Okay.
Operator: Thank you.
Speaker Change: Please go ahead.
Doug: No woman tie a lot of <unk> for me it will be a condo <unk> Chico Jayson when you go to Mercury cell will.
Speaker Change: Oh, Oh, Oh excuse me when he says he is or what are you. What are we going to see why you why might Oh, well Macondo you can do with the way my yeah Cordell freestyle Yoshi would've told you.
Doug: Finally at the top.
Doug: I'll do it now.
Alicis Yap: Hello, thank you, and Sandy, Ian, Sean, good evening. Congratulations on your strong performance. Two questions. The first question is that JD 628 is actually starting tonight. Can you please share with us the overall strategy of JD 628 this year and what is the company's expectation of the sales of 628 this time?
Thiago: Thiago once you sequence you took our AI for Amanda.
Speaker Change: That you could go to the C. J U G. T. You June she wanted done.
Doug: But kind of to help with all that is helping guy.
Speaker Change: So what you're telling me a creek when they suddenly have Sunshine I, usually I don't put a load right now you should see outside of social to switch you Oh boy cheap you totally cheetah downgrade TT mushy, you eat not woman tie a lot of what you do for me it wouldn't be a condo fujioka. She had two looks you called a geo satellite, but you've got to Mercury's show.
Doug: To go to the AI like go to the telephone Shelby.
Doug: J J D. The pre Peter some tie my mom was.
Doug: One is on <unk>.
Speaker Change: Good how are you.
Doug: When you got gas at all.
Speaker Change: <unk> total you hope.
Alicis Yap: The second question is that our company is actually making some very long-term investments. Do these investments hope to keep the company's double-digit growth momentum? Will the company's long-term goal of high-digit net margin change? Thank you. Thank you Alicia. Let me answer the 618 question. In fact, 618, our overall... The consumers' minds are still doing it around good and cheap. In fact, it is consistent with the previous year. So this year, our 618, the real 618 big vinegar, will still follow the previous year's routine, starting at 8 p.m. on May 31. But before that, we will use the new animal shopping season to meet the consumer's demand for pre-consumption.
Speaker Change: I will find it does tell you just how do I know.
Sure Tycho.
Speaker Change: The email from your AI <unk>.
Speaker Change: Thiago once you see while you took a E Amanda.
Speaker Change: You will find an email.
Speaker Change: Well the kind of help with one of the things, hoping Ty you tell you to go to the E. I like to eat out yourself walk out to tell folks how old you are used.
Speaker Change: What do you define E G.
Speaker Change: <unk> has achieved a remarkable result in the food delivery business with daily volume already close to $20 million.
Speaker Change: C J J D. The P. P. There's some type of my mind was not well why did you come to your key Oh, My God, how each oh.
Speaker Change: Jake can management share with us some of the key metrics like user retention.
Speaker Change: Can you walk us he told Oh, you take the survey cycle machines I E T.
Speaker Change: Selling opportunity with the retail business.
Speaker Change: You Hope touch Wood I took walk out or you can go from being a I will call. It tight. She taught you will from an truth email.
Speaker Change: Short term medium term and long term unit economic targets.
Speaker Change: After our investment in food delivery business, we have witnessed a very strong user growth.
Speaker Change: Tcf, what you'd be probably eshop.
Engagement level, so how should we think about the financial impact for these new investment and the strategy.
Speaker Change: J D has achieved a remarkable result, and the food delivery business with daily volume already close to 20, Lillian that Jake can management share with us some of the key metrics like you said retention cross selling opportunities with the retail piece of it is.
Speaker Change: And my second question is related to AI.
Speaker Change: Thank you for an e-commerce platform use AI to improve advertising our I S.
Speaker Change: <unk> ecosystem continued to improve can management share with us.
Sandy Xu: Of course, it will also bring you continuous shopping surprises. The new animal shopping season officially starts at 8 p.m. tonight. We also welcome investors and analysts to experience and promote consumption in advance. In terms of marketing activities, we will have a richer shopping scene and marketing activities this year. This year, of course, is also a year to revive state subsidies and our first delivery of JD food to JD618. So we will also have additional benefits of supplementing and supplementing to bring users a full range of extreme preferential experience. Then at the merchant's end, we will also provide multiple subsidies and incentive policies to merchants.
Speaker Change: Short term medium term and long term goodness economic targets.
AI has help enhance JD advertising system at Edwards.
Speaker Change: I felt investment in food delivery business, we have witnessed a very strong user growth and engagement level. So how should we think about the financial impact for these new investment and the strategy.
Speaker Change: Other than advertising.
Speaker Change: AI being applied to our other business segments too.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: Does it tend to range in <unk>.
Speaker Change: And my second question is related to AI.
For an e-commerce platform, that's used AI to improve advertising O I S.
Speaker Change: <unk> now, Romania, ETE, Cynthia will have total apparent than <unk>, two products <unk> and Julien.
Speaker Change: S. J D C. P equal system can do to improve conventionally share with us how AI has helped and hence J D advertising system at Edwards Jim.
Speaker Change: Other than advertising.
Speaker Change: Okay.
Speaker Change: Now on <unk> hundred <unk>, you don't think Jensen.
Speaker Change: AI being applied to our other business segments too. Thank you.
Speaker Change: EMEA due to the <unk> the new momentum.
Sandy Xu: So the focus is on the content. 方方面来发力助力商家提实现销售的爆发和长效经营来取得更具确定性的增长 Thank you, Alicia.
Speaker Change: Okay.
Speaker Change: Uh huh.
Speaker Change: Does it kind of interesting that he sure does that matter to go into your huh. They didn't hear women tend to eat that got to see how you did that kind of showed you know in Romania, you see what Cynthia will have totaled about 10 months and that GW somebody it should stay at home quite it's okay to put the majority of women through the year would I tell you she can julien.
Speaker Change: <unk> put a lot of that ocean at any additional maintenance at under <unk> nine with channel EMEA <unk> crude are frequently seen com IPO women should <unk>.
Sandy Xu: I'll answer your question regarding 6.18. So first of all, this year's JD 6.18 campaign is centered around better and cheaper, aiming to enhance consumer mindshare by offering a wider range of products and use cases, as well as a bunch of straightforward discounts. So in terms of schedule, following our tradition, this year's JD 618 campaign starts at 8 p.m. on May 31st. Before this, we'll launch a so-called heartbeat shopping festival to meet consumer demand, bringing constant shopping surprises to users. This year, the heartbeat shopping festival has officially started 8 p.m. tonight, China time. And we welcome all investor analysts to jump in and experience it firsthand and help support consumption in China.
Speaker Change: Quarter caption later Comex Julie.
Speaker Change: <unk>.
Speaker Change: And now with Mint underpinned sure you don't have a well may 18th two can't handle that might be you mentioned I think on that.
Speaker Change: Hey, Sean.
Speaker Change: Shanghai Auto show both related to bank.
Kenny: Thank you Kenny for you question, Yes, our team is playing close attention to this data right now.
Speaker Change: Somehow I don't even know how soon will put a lot of them. So you know.
Speaker Change: That's also not paying yet you saw a woman chunky until now in their jobs have you now.
Kenny: If we don't achieve 20 million today, it will be it will happen very soon in the near future. This is an important milestone and we feel very encouraged by this progress.
Speaker Change: I'm with channel them, yet kind of when they don't.
Speaker Change: What are frequently seen cone IPO women you should that you tweak the appetite. So it took a year we had trouble kind all that may even put a crapshoot later gourmet suddenly Oh Cindy.
Kenny: Sure.
Kenny: In the very brief time of three months after launch opportunity for delivery, we have seen rhombic groundbreaking progress I'm very positive result on the user side put iterate daily order volume are growing very rapidly we have gradually observed with a very positive impact on traffic and user.
Speaker Change: Since you have done cannot.
Speaker Change: Gosh I wish them, both will eat up some bank.
Kenny: Thank you Kenny for your question Yeah. So our team is playing close attention to this data right now.
Kenny: If we don't want cheap 20 million today, it'll be a it will happen very soon in the near future. This is a important milestone and we feel very encouraged by this progress.
Kenny: Acquisition.
Kenny: Well as boosting overall traffic conversion rates currently.
Kenny: Ah repeat rate among <unk> users are very healthy things food delivery business is integrated in JD. App. We are also seeing initial cross selling trends emerging on Jd's platform, primarily in supermarket and lifestyle service categories.
Speaker Change: Hum in the very brief time of three months after launch opportunity put it or we will have seen Ron became a groundbreaking progress I'm very positive result on the user side put theory daily order volume are growing very rapidly we have gradually absorb who did really positive impact on traffic and user.
Sandy Xu: In terms of marketing campaigns, this year, there are more shopping scenarios and promotional activities. This year also marks the debut of the national trading subsidy and JD food delivery debut on JD 618 campaign, offering users an ultimate value for money experience with extra subsidies. In terms of merchant support, this year, JD 618 will provide multiple subsidy and traffic incentives for brands and merchants, focusing on content ecosystem and advertising to help merchants achieve explosive sales, a sustainable operation, resulting in more predictable growth. 今年以来在政府的一系列提振消费的政策的推动下,我们的确看到消费的整体状况是在持续改善的。 京东凭借极致的用户体验也实现了用户规模和销售阶级的健康增长。 随着消费市场持续升温叠加628大促, 我们对628大促的用户增长和销售表现还是很有信心的, 也会为消费者带来又好又便宜的购物经济。 Since the beginning of this year, driven by a series of policies to boost consumption, the overall consumption trend has continued to improve, which will also promote the ongoing economic growth.
Kenny: The answer is shown that for now EMEA.
Speaker Change: <unk> acquisition as well as boosting overall traffic conversion rate.
Kenny: As I mentioned there are currency issues.
Kenny: Extending shifting into <unk>.
Speaker Change: Currently our repeat repeat rate among put them to use a very healthy.
Speaker Change: Since our May go to the <unk> telco Batman Ashanti as Sundar cutting our CTO has feet on the Russia <unk> year to date due to the.
Speaker Change: Things food delivery business is integrated in J D. App. We are also seeing initial cross selling trends emerging on jd's powerful primarily supermarket and lifestyle services categories.
Speaker Change: Third quarter, Joel <unk> hundred thousand <unk> shown dilution for the IV.
Speaker Change: You mean nutrition, CTO pita longshore, Ngati <unk> <unk> for T&D utility related shopping conceit.
Speaker Change: Yeah that sounds after now EMEA $10 do you know that nice ones out of Quincy, Yeah. She Sarah I'm not understanding shifting downhill dozens out when they go to them and that we will talk about that now my sons. He has found a cut in the CTO. He should see China, Russia, now Martin Daum, Indiana Jones day due to the C D Theater, Portugal.
Speaker Change: On the merchant side, we expanded from zero to over $1 million on board at the stores in a short period of time.
Speaker Change: And merchant Onboarding demand remains exceptionally strong and we feel the pressure for sure with a lot of stores that are currently under the system collecting process.
Speaker Change: Now you're doing 100000 alerts and bad though to the Shanghai Auto show, but the Yodlee.
Speaker Change: You mean, he tricia stitzel fit how long shot now to your phone to them until you cancel fruitful C. N E. T V D rates you die shops in Quincy.
Speaker Change: This also enabled us to rapidly expand our location based product offering.
Speaker Change: Current year should have beyond the Geofence Aes <unk>.
Speaker Change: On the merchant side, we expanded from zero to over 1 million onboard at the stores and in a short period of time.
Speaker Change: Hello.
Speaker Change: EMEA, Canada, <unk>, Canada total year, now, we'll maintain hygiene and tissue <unk> issued today and on the chart on how EMEA got SEDAR com.
Speaker Change: And merchant Onboarding demand remain.
Speaker Change: Strong and we feel the pressure for sure with a lot of stores that are currently under the system collecting process.
Speaker Change: <unk> hundred 10 in Chicago, No you tell me where mentally.
Speaker Change: This also enable us to rapidly expand our location based product offering.
Speaker Change: Could a CTO returning Johan CTO, Shanghai, Hangzhou, the CTO reassurance carrier number two shortly.
Sandy Xu: Leveraging the ultimate user experience, JD has achieved healthy growth in both user base and scale, with the consumer market heating up and all preparation that we have done for the JD-618 campaign, we are more confident about the user growth and sales this year during the JD-618 campaign, and bringing consumers with better and cheaper shopping experience. To answer your question about the company's long-term growth and profit margin goals, first of all, we have to go back to the business model of JD's supply chain as the basis and user experience as the core. Our long-term investment will be firmly surrounded by increasing user experience and increasing user growth, and strengthening the competitive advantage of self-employment and logistics.
Speaker Change: So Tito Italia should help me on that general sense on your feet on C C.
Speaker Change: <unk>.
Speaker Change: Yeah Oh.
<unk> challenged our EMEA.
Speaker Change: And she told me a kind of a dynamic shall you'll tell me. The total either no one mentioned hygiene and tissue on the whole Swedish E true, though truth I don't the choice on how what me and say that's kind of cool.
Speaker Change: To put a battery on women 30 nanometer Cotabato.
Speaker Change: On the <unk> side, we see same momentum so the responses upon weather are very positive.
Speaker Change: You know you don't sell a hernia to champion Chicago now you tell me where mentally.
Speaker Change: Many writers showing great enthusiasm.
We even don't have sufficient uniforms or new signed up daily riders. So definitely seeing very strong interest from a large number of the rider eager to join the platform. All of this demonstrated the immense potential of the industry.
Speaker Change: You don't put does show when you told me you don't put a CTO Shanghai Hilton shoulder she truly at Cheyenne.
Speaker Change: Number two show with me as I like to put a.
Speaker Change: There's a ton of interest in only a few times sounds on with me as I.
With that I see a woman in 15 and now need a courtroom film.
Speaker Change: On the right side, we see same momentum so the responses point, where there are very positive with many writer showing great enthusiasm are.
Speaker Change: We are seeing very strong demand from all three parties.
Speaker Change: This also validating our precise understanding of user demand and our strong execution capability of our team.
Sandy Xu: Alicia, regarding your question about JD's long-term growth and then merger part First, JD's business model is built on supply chain capabilities and centered around the user experience. Our long-term investment will focus on enhancing user experience, driving user growth, and strengthening our advantages in 1P business model and the logistics service. The specific direction of investment includes, first of all, on the user experience and growth, we constantly provide a rich supply of high-quality products and improve the ability of the user to meet more needs of the user, such as cleaning business and instant retail and take-out. It has brought a rapid increase in users and high-quality orders.
Speaker Change: We even don't have sufficient uniforms or new signed up J D of lighters.
Speaker Change: We have to say we are still in the stage of building our fundamental capabilities.
Speaker Change: Definitely seeing very strong interest from a large number of provider eager to join JD platform. All of these demonstrated the immense potential of the industry.
Speaker Change: So we don't detail will enter the year with tissue <unk> Kinder classified as a tissue <unk> tissue Amanda controlling in terms of.
Speaker Change: We are seeing very strong demand from all three parties well. There's also validating our precise understanding of user demand and our strong execution capability of our team.
Speaker Change: So you'll see it will need to see in sugar cotton Joel.
Speaker Change: That shows you that Youll hydrocortisone Barclays <unk> tissue Hopkin leader.
Speaker Change: <unk> done that now.
We have to say we are still in the stage of building our fundamental capabilities.
Speaker Change: <unk> shut in agile can't conduct asking some controllable costs.
Speaker Change: Deficiency, NASA Mckenzie and kind of women.
Speaker Change: So it doesn't feature a woman to the U T shirts aren't doing it too. She says she cannot quite so far to exit you should finish it yeah. So your tissue Amanda dwelling or so you'll see it on the elite, though I think seeing shut a courtroom Joel.
Speaker Change: <unk>.
Speaker Change: Video protocol cohorts yen that each element since it immuno knee women does hit the holiday shutdowns that are.
Sandy Xu: It has also helped us to improve the user data of JD Ecology. It has created a cross-sales opportunity and a shared value in new business. Specifically, first, in terms of user experience and user growth, we have been continuously enriching the supply of quality products on our platform and our ability to serve users, meeting their diverse demands. For example, our efforts in Jingxi business, on-demand retail, and food delivery have helped to accelerate user growth. The high-frequency, high-volume orders have also supplemented user data for the entire JD ecosystem, generating cross-selling opportunities and synergies with our core business.
Speaker Change: Converting commercial hi.
Speaker Change: Yes, I actually see that youll kind of quarter until Oh call you see additional tissue cracking laid uh huh.
Jason: <unk> comments ill turn the call to <unk> tissue <unk> laid out Jason founder.
Speaker Change: There's a lot of Oh, no not on the number of quota and should be in a joke that you can talk about some controllable costs, you'll yeah, just efficiency now that mckinsey you're doing in canola minda joint Yeah, I should teach L. A they don't put qigong garlic's, yeah that you shouldnt see any you'll need women does see Oakland on the holiday.
Speaker Change: And as <unk>.
Speaker Change: We also fully realized by <unk> during the very early stage with rapid development.
Speaker Change: We have to note that JV equity really is only launch within a few thousand days so.
Speaker Change: Shanghai, So congrats in commercial type toshi.
Speaker Change: Solve the operational initiatives are still being implemented and the system optimization is still ongoing.
Speaker Change: Women don't buy myself commenced.
Speaker Change: Well, that's easy that's how little tissue, you don't ship, but he's allogeneic T cell phone, oh and shoreline that tender.
Speaker Change: Two I think we're able to share more details including <unk>.
Sandy Xu: In terms of self-management, we will continue to invest in improving management capabilities in the range of e-commerce and super-fashion, including improving the management capacity of sales and the ability to plan products. 通过定制、包销等能力打造差异化的商品供给优势,通过定制、包销等能力打造差异化的商品供给优势, 同时不断夯实我们行业领先的供应链企业。同时不断夯实我们行业领先的供应链企业。 通过自营供应链规模优势带动采购成本的下降和效率,通过自营供应链规模优势带动采购成本的下降和效率, In terms of our one key capabilities, we have been improving our operations in categories such as electronics and home appliances and general merchandise, including supermarket and fashion categories. For example, we've been strengthening the operational capabilities, including category planning capabilities of our procurement and sales team. We aim to create a differentiated product supply advantage through capabilities like customization and exclusive sales. At the same time, we are constantly strengthening our industry-leading supply chain system, leveraging the scale benefits to drive down procurement costs and improve efficiency.
Speaker Change: And cross category synergies.
Speaker Change: We also put he realized that GTT to be a student in the very early stage with rapid development will have to know what that JV equity really it's only launch within a few dozen days. So solve the operational initiatives are still being implemented and the system optimization.
Speaker Change: At a later stage our current focus is to work on enhancing user experience upgrading operation operational capabilities building, a healthier ecosystem for merchants and providing secure employment for riders our investment will be centered around.
Speaker Change: It's still ongoing where April.
Speaker Change: April two are I think we're able to share more details including U E.
Speaker Change: Two.
Speaker Change: Centered around better meeting the needs of these three party, namely user merchants and riders.
Speaker Change: And cross category synergies.
Speaker Change: Although these later stage our current focus is to work on enhancing user experience.
Speaker Change: The women.
CVR <unk> my mind, you the Dol, so hitting dong quarter sure.
Speaker Change: Grading operation operational capabilities building, a healthier ecosystem for merchant and providing secure employment for gliders, our investment will be centered around a two.
<unk>.
Speaker Change: Shiga, Tom T purchasing pattern.
Tony Isaac: <unk> done two Wheeler Ethernet Hooroo functional EMEA <unk> Santo Antonio mentioned that <unk> was selling constitute a chance Tony Isaac <unk> silicon highest quarter due to the new.
Centered around better meeting the needs of these three party, namely user merchants and writers.
Speaker Change: Thanks.
Speaker Change: The woman Shiga dishes in the in my mind as I say it all so he can do them quicker sure mm mm Shiga, Tom T conscious you find out Oh, sorry.
Speaker Change: Shanghai Guangzhou <unk> edition in show Womens this EBITDA Kristina attention until you <unk>, Canada 2000 seat contact you know Marseille, you won't put anything beyond <unk> pardon me until clean element that I don't know Nicole.
Speaker Change: That does two clearly you cannot ooh Ooh Chanel EMEA Celsius, so you'll see more of that sometime after that you'll think shouldn't pay it sounds from seeing she found how to whom we're selling them a torture, telling me I take them Quincy and that should not silicon how you kept for it just to the U S.
Sandy Xu: In terms of logistics capability, we will continue to upgrade and strengthen JD's existing end-of-the-line network and capabilities. We are also gradually realizing the smartization of logistics and application scenarios through the application of automated AI technology, and pushing for a long-term price increase. In terms of our logistics capabilities, we will make efforts to further upgrade our last mile fulfillment network and capabilities. In addition, we will be leveraging automation and AI technologies to progressively implement intelligent solutions across all logistics operations with the aim to drive sustainable cost reduction and efficiency gain. We believe that these long-term investments will further enhance JD's supply chain advantages and continuously improve user experience and user mentality within product and price services, bringing continuous improvement in user scale and activity.
Speaker Change: Is that based on the unique tissue didn't tell me you create that I started a tradition of Tom Bene Sanjay.
Speaker Change: So therefore, we enter we made a strategic decision to enter the food delivery business.
Speaker Change:
Speaker Change: Sure Hi, Townsville, nobody like E T shirt and show our women's is a question that is how long until you have a sense of women don't want or you cannot do it with 2006. When we got you know my say you won't put anything down okay. So how can they go find me until clean element that I don't know, Nick Holmes, yeah, well shows that patients who need.
Speaker Change: With a focus on building a sustainable long term business other than achieving short term financial targets for.
Speaker Change: For any particular quarter.
Speaker Change: A year, we're confident that as the business grows.
Speaker Change: Gradually realized economies of scale and operational efficiency improvements more importantly, being deeply rooted within JD overall ecosystem. The food delivery business holds significant synergetic potential with our on demand retail and our core retail operations going forward, including <unk>.
Speaker Change: He should tell me you create that and it sounds like artificial I told Ben it sounds yeah.
Speaker Change: So therefore, we enter a we made a strategic decision to enter the food delivery business.
Speaker Change: With a focus on building a sustainable long term business other than achieving short term financial target or.
Speaker Change: Driving incremental growth in user traffic purchase frequency and cross selling while enhancing efficiency and reducing costs through optimized delivery networks citation and data driven technology enhancements.
Speaker Change: Or any particular quarter.
Speaker Change: Yeah, we're confident that as the business grows it will.
Speaker Change: Gradually realized economies of scale and operational efficiency improvements more importantly, being deeply rooted within J D. Overall ecosystem. The food delivery business holds significant synergetic potential with our on demand retail and our core retail operations going forward, including driving.
Sandy Xu: We are confident in achieving faster growth. In the long term, our profit margin will continue to improve as business scale expands and operation efficiency increases. We have not changed our goal of achieving a long-term profit margin in JD. We are confident that these efforts will further strengthen JD's supply chain advantages and continue to enhance user experience and mindshare on our enriched products, price competitiveness, and service quality. This will drive better user growth and engagement and position us for accelerated growth going forward. In the long run, our profit margins will continue to improve with the expansion of our business scale and increase the operational efficiency.
Speaker Change: Thiago <unk>.
Speaker Change: <unk> number.
Speaker Change: Newmont <unk> lastly, Gaba now remain agile CNC turned up tick.
Speaker Change: <unk> AI hosted on <unk>.
Speaker Change: Now, mainly AI hurts Doha accretion quarter to Insulins Johan year numbers in bulk, which is showing in Saudi with antithrombotic hyclate bound for the patients with <unk> data.
Speaker Change: The incremental growth in user traffic purchase frequency and cross selling well enhancing efficiency and reducing costs through optimized delivery networks citation and data driven technology enhancement.
Speaker Change: More shifts.
Speaker Change: Louisiana EMEA tons ICL tissue confined SCS <unk> in shoulder to new enhancing convenience channel loading.
Speaker Change: Oh, Yeah, Glenn historically, Oh gosh, a number to go with your last laid out by now and remain so C&C Honda take a tissue that they don't fall yeah, well, if they don't how does E G. No mcginley.
Let me share my thoughts on your second question on AI adoption advertise advertising.
Sandy Xu: JD's long-term goal of achieving high single-digit net margin remains unchanged.
Speaker Change: We are actively embracing the tremendous opportunity presented by.
Speaker Change: Yeah, well, that's still hockey shouldn't cut out two unsold and she'll hernia now puts info quickly show means Saudi hooked on each one but high creep out for the patients don't want to yeah.
Speaker Change: AI and automation, we firmly believe these technologies will profoundly transfer the retail industry, not only by enhancing operational efficiency and reducing costs, while also by significantly improving user experience and innovating business models currently.
Operator: FlexFunction3 Bye-bye.
Thomas Chong: Bye. Good evening. Thank you for accepting my question. I have two questions.
Speaker Change: No more shifts my mom.
Speaker Change: Louisiana with me it sometimes don't yeah tissue confine that she yeah. So younger ones are being so door to door transit accordingly in the Champions League.
Thomas Chong: The first one is about the impact of global warming on our power consumption, especially when we look at the trend of cell phones and home appliances for the next period of time. The second one is that you can share with us the latest situation of our shareholder report. Thanks, management, for taking my question. My first question is about the trading program and subsidies to electronic categories. How should we think about the trend for smartphones and home appliances over the next few quarters?
Speaker Change: We are testing and applying AI technologies across numerous retail scenarios and the entire supply chain network.
Speaker Change: Let me share my thoughts on your second question on AI adoption, you advertise or advertising.
Speaker Change: We are actively embracing the tremendous opportunity presented by.
Speaker Change: Okay, CTO dime element that clinical AI.
Speaker Change: Should be.
Speaker Change: <unk> CTO <unk> CTO <unk> <unk> syndrome in tier.
Speaker Change: AI and automation, we firmly believe these technologies will profoundly transform the retail industry not only by enhancing operational efficiency and reducing costs, but also by significantly improving user experience and innovating business models.
Speaker Change: As usual a mental that will.
Youll power industrial TTC.
Sandy Xu: And my second question is about capital return. Can management comment about the latest updates on shareholders' return like buyback? Thank you. Thank you, Thomas. We can see that since last year, a series of stimulus policies launched by the country have already achieved positive results. The exchange of new projects has clearly driven consumer demand. At the same time as driving home appliances and mobile sales, it has also promoted the high-end and intelligent development direction of the industry. We can also see that China's consumer potential is indeed very large. Thank you so much. Since last year, a series of stimulus policies introduced by the government have already shown positive results.
Speaker Change: <unk> has accomplished in the AD immune bulk core can go sell the AI Darko.
Speaker Change: None of that can be done our EMEA <unk> patients at AUC leader.
Speaker Change: Currently we are testing and applying AI technologies across numerous retail scenarios and the entire supply chain network.
Speaker Change: The currency led down to Shanghai, Jonathan <unk> personnel.
Speaker Change: AI Dieticians in Tysons, as Sheila and champion in CASM quantities of cells.
She says she Showtime element that yeah that should be a cause he found sheets show like Keystone CTO. Her Quincy go sell children into your people show a mental that well Eli you'll have a woman that's O P. T C tuition or yes, ctrip has all come to listen to add in your own Volkswagen golf felt that AI.
Speaker Change: <unk> heard accordingly don't show a delay that ksi AIG on onshore.
Speaker Change: Andrew <unk> issuing himself.
Speaker Change: So.
Speaker Change: On the demand side, we are leveraging AI to better identify stimulate user demand.
Speaker Change: Oh.
Speaker Change: As in the.
Speaker Change: No matter what can be done now with me and she does dosing patients out there you see me adopt E or the country that foundry Shanghai jumping don't sell who should know them well.
Speaker Change: Precise matching between demand and supply for example, we're using AI to reform the surge of recommendation system. In the meantime, we are actively exploring innovative application, including more efficient AD power shopping assistant on the supply side, we're consistently upgrading a serious AI.
Sandy Xu: The trading program not only boosted consumer demand and driven sales of home appliances and mobile phones, but also promoted the industry's shift towards offering more high-end and intelligent product selections. We are seeing significant potential in the Chinese consumer market. We also expect that the second quarter of the mobile phone battery-based products will continue the trend of healthy sales growth. We also expect to see very strong momentum of the electronic category, including mobile phone and home appliance categories in the second quarter. We will continue to improve our supply chain and service capabilities to ensure that while sales are growing, we can provide better consumer and service experiences for our users, and at the same time transform the user's potential demand into sales and continue to improve our market share in e-commerce.
Speaker Change: Yeah that he's shown since I felt that Sheila and champion inside them plenty themselves.
Speaker Change: With me it sounds easy to cut Accordingly don't show a delay that case I actually I'm sure Andrew Hi, So you're showing himself.
Power tools for merchants to reduce cost and improve efficiency.
Speaker Change: So.
Speaker Change: Concurrently we are enhancing the productivity of AI, one of JD, <unk> procurement and sales operations through AI optimizing efficiency during sourcing.
Speaker Change: On the demand side, we are leveraging AI to better identify and stimulate user men.
Speaker Change: Enhancing the.
Speaker Change: Precise men a matching between demand and supply for example, we're using AI to reform the surge of recommendation system. In the meantime, we are actively exploring innovative application, including more efficient and power shopping assistant on the supply side, we are consistently upgrading a serious AI.
Speaker Change: Product selection and pricing leveraging a JD unique.
Speaker Change: Chain advantage and experience, we are developing agents to significantly boost productivity for our sales and human personnel.
Speaker Change: Power tools for merchants to reduce cost and corporate efficiency.
Speaker Change: Darren will elaborate on ULE only putting into AI local rent issue downtown DC tissue sample contains silicon dollar not <unk> patients in tremendous detail.
Speaker Change: Currently we are enhancing the productivity of AI, one of J D. One P procurement and self operation through AI optimizing efficiency during sourcing a.
Sandy Xu: We'll continue to enhance our supply chain and service capabilities to provide users with better shopping experience, converting potential demand into sales, increasing our market share in the electronics categories.
Speaker Change: Of course on the fulfillment side not only AI.
Speaker Change: Product selection and pricing leveraging our JD unique for us.
Speaker Change: But also automation holds a lot of.
Speaker Change: The change of the vantage and experience, we are developing agents to significantly boost productivity for ourselves and human personnel.
Speaker Change: Potential for efficiency gain while implementing robotics automation technology across standardized warehouse process to enhance operational efficiencies at every stage, reducing employment workload and drive productivity and reduce operational cost through our warehouse operations.
Ian Shan: Let me update you on the latest progress of our shareholding returns so far. The company has repurchased about 80.7 million shares of ordinary stocks, which is equivalent to 40.4 million ADRs. 回購總額約束 相当于截至2024年12月31日流通股股数的2% 平均回購的均價在37.18元 同时,公司在三月宣布了2024年年度的现金股利,按照计划在四月完成派发,和美ADS派息。 Now let me update the latest progress of our shareholder returns. Year-to-date, in 2025, we have repurchased a total of around 80.7 million ordinary shares, equivalent to 40.4 million APS, for a total of about 1.5 billion U.S. dollars. This represented about 2.8% of our ordinary shares outstanding as of December 31st, 2024. Our average share buyback price was $37.18 per ADS. In addition, in March, we announced annual cash dividends for the year of 2024 and completed the dividend payment in this totaling 1.44 billion U.S.
Speaker Change: And so we would only do it and when they want it.
Speaker Change: I am putting dish yeah, Okay. We didn't issue downtown she says she somehow questions you'll come Donna townsell.
Gianluca: With ADT Gianluca.
Speaker Change: Like how can you create who don't tend to see yourself either positions I mean tremendous ECL.
Speaker Change: <unk> was on the new Johan.
Gianluca: Susan Dino Hunter.
Gianluca: 100, <unk> insight will add materialization cognizant of that.
Speaker Change: Oh of course on the fulfillment side, not only AI Ho Hum, but also automation holds the lotto.
Gianluca: <unk> and southwest that onto highly departure.
Speaker Change: Potential for efficiency gain while implementing robotics automation technology across standardized warehouse process to enhance operational efficiencies at every stage, reducing employment workload and drive productivity and reduce operational cost through our warehouse operations.
Gianluca: And is it only a retreat in conjunction with <unk> now promotional with me at that hands of authority concurrent funding either AI agent National <unk>, Inc. <unk> for Datacom total found that helpful.
Gianluca: Tissue colon, Danielle <unk> syndrome diluted Pi now EMEA sales in two years later <unk> bound to utilization.
Speaker Change: He says he sounds telling you that yes, I can call you were sending them you'll have not chosen to Oklahoma Huntington's.
Speaker Change: Museum patients Hammer, Hong Kong telephone the Saudi with the telco like Kathy Pam Unfortunately, the Tampa Orlando.
Speaker Change: Well, yeah, I'm with you on that occasion waqar that somehow a.
Speaker Change: A personal opinion and so forth I don't have handy the peso euro.
Gianluca: <unk> and our conventional reagent <unk> continued success.
Speaker Change: Alright, and how does this only because I don't think I'll show the south that's with some job not promotional with me at that time, So I'll do it or you can call. It falls on me either AI agent now sounds out Pete Watson.
Speaker Change: For some time now with us here.
Consulting Sandra annual Comdata Quintin number two will add a more familiar clinic patient savvy, she don't come down transit purchase at Atlanta.
Speaker Change: Yeah, and it just seems with adequate cattle found that helpful.
Speaker Change:
Speaker Change: You'll see as you called out yeah, well mentor Atlanta syndrome casual taking on some high now me something to you later, yeah Eaton creep onshore gestation yeah.
Speaker Change: In in terms of application for advertising business, our advertising R&D team is leveraging and large language model to enhance at algorithm and recommendation effectiveness.
Speaker Change: Museum Keyshawn Hammer telephone the southeast that's helpful. Lastly, I'll keep how many still showing you that sometimes the NAND to minimum Mccann back I had kind of a more commercially interesting shall each with its own town does he think that for some time now where south here are they like phone calls being sent around you'll have adequate yeah, no matter, what and I'm less familiar creeps, you shouldn't tell me that he don't come down.
Speaker Change: Driving higher at conversion rates and accelerating at revenue growth, we are actively developing and implementing airpower advertising agents that can execute complex AD campaign through simple comment for merchant with particular focus on serving the.
Ian Shan: dollars, or 1 U.S. dollar per ADS. Next, we will continue to focus on the long-term growth trend of business scale, profit, and cash flow through dividends and repurchase feedback to shareholders, and we will also continue to pay attention to the long-term growth trend of business scale, profit, and cash flow, and share the success of financial business with shareholders in different ways. Going forward, we remain committed to give back to our shareholders through dividends and share buybacks. At the same time, we will keep focused on achieving long-term healthy growth in business scale, profitability, and cash flow.
Speaker Change: <unk> got some jobs.
Speaker Change:
Speaker Change: Over 1 million merchants, who have joined JD platform in the past two years.
Speaker Change: Well in in terms of application for advertising business.
Speaker Change: We believe AI agent can help merchants enhance at efficiency.
Speaker Change: <unk> R&D team is leveraging a large language model to enhance at algorithm and recommendation effectiveness are driving higher at conversion rates and our salaried teams at revenue growth, we are actively developing and implementing airpower advertising agents that can exit.
Speaker Change: Our campaign effectiveness, while significantly reducing operational cost and complex complexity for business.
Speaker Change: Currently our advertising revenue has continuously achieved double digit growth with accelerating momentum. We firmly believe there is significant potential for monetization particular through AI larger language model driven efficiency gains that we.
Ian Shan: We aim to share our success with shareholders through various ways.
Speaker Change: Cute complex AD campaign through simple commands for merchant with particular focus on serving.
Operator: Okay, thank you so much. Thank you all for joining us on the call today, and thanks for your questions. If you have further questions, please contact me and our team. We appreciate your interest in JD.com, and look forward to talking with you next quarter.
Speaker Change: Over 1 million merchants, who have joined JD possible in the past two years.
Speaker Change: We believe AI agent can help merchant and has.
Speaker Change: We'll feel.
Speaker Change: Sustainable long term growth.
Speaker Change: At efficiency as a campaign effectiveness, while significantly reducing operational costs.
Speaker Change: Diane can have on the issuance of shares <unk> added strategic deal now switchers shipping downloads cumulative policyholders with us into the host Julie <unk>.
Speaker Change: Complex complexity for business.
Speaker Change: Currently our advertising revenue has continuously achieved double digit growth with accelerating momentum. We firmly believe there is significant potential for monetization particular through AI large language model driven efficiency gains that we.
Speaker Change: <unk> <unk> is our minimally tyndall women since it accordingly.
Operator: Thank you.
Speaker Change: <unk> hundred <unk> may AISI linked <unk> Sirona congratulate Ralph.
Speaker Change: Now EMEA <unk> total <unk> lab onshore Lang peanut Cheetos <unk> capital.
Speaker Change: We'll feel sustainable long term growth.
Speaker Change: How long is the issuance of shares call cleans houses that shouldn't they shouldn't do you see a I think we can go now she does shipping family Humira Jacob Please see herculean without saying to yourself, what's usually the country does he died a combination of sound cool. So it's only a shallow meaning they can those women since it accordingly and thought through the town.
Speaker Change: Of course.
Speaker Change: I forgot to mention there is a great potential.
Speaker Change: Potential for adoption in advertising content generation.
Speaker Change: So in summary, we believe <unk> differentiated capabilities and extensive scenario across the entire supply chain provides the most fertile ground for widespread AI adoption.
Speaker Change: She feeds her daughter C. Not joking I you may I say lean show her Queens and Brooklyn, So you can get on that particular accomplish it.
Speaker Change: In retail our supply chain operation presenting us with unique opportunity to deeply integrate AI into every retail scenarios ultimately enhancing operational efficiency enhancing user experience and unlocking long term revenue and profit growth potential. Thank you.
Speaker Change: With me yet if it will make people want to see it creep up yeah. They shouldn't hold on what May you would admit you go onto your lap onshore Atlanta, She don't show who have even a topical JAK.
Speaker Change: Of course, I, Oh, I forgot to mention there's a great potential.
Speaker Change: Potential for adoption in advertising content generation.
Speaker Change: So in summary, we believe J D differentiated capabilities and extensive scenario across the entire supply chain provides the most fertile ground for widespread adoption.
Speaker Change: Tissue.
Speaker Change: Okay.
Speaker Change: The next question is from Alicia.
Speaker Change: Please go ahead.
Speaker Change: Hello, Thank you.
Speaker Change: In retail our supply chain operation presenting us with unique opportunity to deeply integrate AI into every we tell us scenarios ultimately enhancing operational efficiency enhancing user experience and unlocking long term revenue and profit growth potential. Thank you.
Speaker Change: <unk> Shanghai Shanghai.
Speaker Change: Chanting that Nikki <unk>.
Speaker Change: Eagle in Asia.
Speaker Change: Challenging shooting only all Bajaj, Cai Hi, Sheila.
Speaker Change: Paul Cheng Cheng Cheng <unk>, Nanjing, only our bond attention Charlie that if you're constantly.
Speaker Change: Nevada shall show <unk> Shima.
Speaker Change: Tissue.
Speaker Change: Yeah.
Speaker Change: <unk> sure.
Speaker Change: Consistent.
Speaker Change: The next question is from.
Speaker Change: She says that <unk> is a total.
Speaker Change: Go ahead.
Speaker Change: Solutia Youll see one does the total solution Shimon are now concerns about sugar.
Speaker Change: Hello, and thank you.
Sandy: Sandy Yeah in Shanghai, Shanghai, Goldstein charging that Yankee younger when T V go and he she she didn't watch on T shirt, Jean the only all bought Y'all Cai Hi, Sheila no default are seen by nature Sunshine that Jinan Qingdao only I'll bother 10. She told me that if you go simply say true new Armada.
Speaker Change: Some ways showed agenda that don't meet a whole negotiation shikoku issue that you'll go net margin mobile quite got bema just yet.
Speaker Change: This is alicia well acidize handler battling jana tissue off our mental heat up.
Speaker Change: Shall show Oh somebody Cima.
Speaker Change: <unk>.
Speaker Change: T cell salvage a singer has really made out of Johan <unk>.
Speaker Change: They're going to ship all of them go through C&I. She says that's why you see a hunch, Chile, you said total na na solutia, you'll she want does it totally she wishes she along or not concern about sure. Some waste should agenda that don't meet our whole woman goldfish, how she got walkaway should actually go up.
Speaker Change: Tissue can annualize our ships are key to adopt <unk>.
Speaker Change: Tien Tsin are lower bypass, who how should reduce human inequality at home, you're essentially how much of that in cash.
Speaker Change: I did just handle women.
Speaker Change: See landman through <unk>, the CTO Nathaniel later that that actually ship with Anadarko with you no matter, how bad in terms of cash and assessing the ankle booties and EMEA claim great Jose and competition in Gulf <unk> sulfate.
Speaker Change: Marching them mobile quite got Vietnam, just yet.
Speaker Change: He says Hey, Alicia Oh, well what else. It is how do I bother, Indiana, She should do off our mental Utah.
Speaker Change:
Speaker Change: See yourself, South Asia Central how should we made out of Johan Okay, and he says to him. He said come on year lighthouse ship Archie Tradeoffs now my opinion nowhere menu I bought.
<unk> for the <unk>.
<unk>.
Speaker Change: Can you and I assure you took with <unk> with Apple here, if you want <unk>. So now samsung's new apps, so youll EMEA, which ends up without the staff with Li <unk> Fung later teacher that youll quite yet.
Speaker Change: Tien tsin are lower by about two how should we just came on in the call me at home, especially U haul that Bobby.
Speaker Change: But sometimes you just can't know what men.
Speaker Change: Oh C lemons cool temperature T O P. J, it's healthy the CTO not dying they thought that that actually should put on the call with you see no matter how about in terms of cash it actually seemed to go see some of you claim go they told their physician and golf lifestyle him, including cell phone number.
Speaker Change: Session Kathryn our EMEA, a transaction is going to trend upward here for TV Dot com number two on the <unk>.
Speaker Change: Okay.
Speaker Change: Mueller savvy to lesion that is shifting and social profile for 2018 that sugar constituting Samantha.
Speaker Change: No my say himself, but don't find me in senior women, Ohio comes out from for the co tenancy, that's yourself, but don't know mom.
Alicia Well: Thank you Alicia.
Speaker Change: To me and I assure you to Quinn's question cause I put here. If you want me to do that nationally. So now it sounds simple new Ah ha. So you Emilio sounds Abu Dhabi itself will be they won't put ally chance only the teacher that you'll quickly yeah, nama, especially outdoor now with me awake patients actually go into which went up with here.
Alicia Well: Answer your question regarding <unk>.
Alicia Well: 618, so first of all this year is steady.
Alicia Well: <unk> campaign is centered around better and cheaper.
Aiming to enhance consumer mind share by offering a while wider range of product and use case.
Speaker Change: Uh Huh I'm attuned to it and that's just that Megan.
As was up.
Speaker Change: Oh Formula savvy to the Shanghai piece, just in social with a profile that's not something that should come to you shouldn't assume that sometime.
Alicia Well: A bunch of straightforward discounts.
Alicia Well: So in terms of.
Alicia Well: Schedule.
Alicia Well: Following our tradition this year's J D 618 campaign start at APN on May 31, before this will launch a so called Heartbeat shopping festival to meet consumer demand, bringing cost in shopping surprises to user.
Alicia: Thank you Alicia.
Alicia: I'll answer your question regarding.
Alicia: 618.
Alicia: So first of all this year as did the our 618 campaign centered around better and cheaper aiming to enhance consumer mindshare by offering a wow wider range of product and use case.
The heart of the Heartbeat shopping festival.
Alicia Well: Has officially started APM Tonight, China time, and we welcome all investors analysts to jump in and experiences firsthand and help support consumption.
Alicia: That's why it's up a bunch of a straightforward discounts.
Alicia: So in terms of Oh schedule. Following our tradition. This year's J D 618 campaign start at eight P. M. On may 31st before this will launch a so called Heartbeat shopping festival to meet consumer.
Alicia Well: China.
Alicia Well: In terms of marketing campaigns. This year, there are more shopping scenarios and promotional activities. This year also marks the build of the national Trillionths subsidy subsidy and JD food delivery.
Alicia: Demand, bringing costa shopping surprises to user the heart the Heartbeat shopping festival.
Alicia Well: On J D.
Alicia Well: 618 campaign, offering user and ultimate value for money experience with extra subsidies.
Alicia: Has officially started a T N Tonight trying to time and we welcome all investors and analysts to jump in and experiences firsthand and help support our consumption.
Alicia Well: In terms of merchant support this sure David <unk> will provide multiple subsidy and traffic incentives for brands and merchants focusing on content ecosystem and advertising to help merchants achieved explosive sells a sustainable operation.
Alicia: China.
Alicia: In terms of marketing campaigns. This year, they are more shopping scenarios and promotional activities. This year also marks the build of the national Trillionths subsidy subsidy and JD food delivery.
Alicia Well: <unk> in more predictable growth.
Alicia Well: <unk> talked about we don't.
J D. Our 618 campaign offering user and ultimate value for money spirits with extra subsidies.
Our <unk> cost reductions you can shanda.
Alicia Well: And <unk> <unk> Sandler <unk> quickly more social GSE doesn't come from John <unk>.
Alicia: In terms of merchant support this sure J D 618 will provide multiple subsidy and traffic incentive for brands and merchants focusing on content ecosystem.
Alicia Well: So it is self insured on transitional loans DTI I'll do a buyback to elementary new about that.
Alicia: We're tightening to help merchants achieved explosive sells a sustainable operation.
Alicia Well: Yes.
Don Quixote, social dossier Hydro analysis, clearly separated hurricane Nicole.
Alicia: And more predictable growth.
Alicia: There's too many like adjunct for Dow you cilia T cells and cell free the til.
Alicia Well: Since the beginning of this year driven by a series of policy to boost consumption. The overall consumption trend has continued to improve which will also promote the ongoing economic growth leveraging the ultimate user experience JD has achieved healthy growth in <unk>.
Alicia: So that we don't sell our Medici conductivity that don't get drunk wash it out since you got shanda not.
Alicia: You can see a teacher they don't put yeah, yeah. She still you'll hopefully more of a social GSE doesn't come from Jong Nam see yourself, they should hunter fisherman Dci I'll do a bypass who know a mentor he knew about that score.
Alicia Well: <unk> user base and scale with the consumer market.
Alicia: Yeah.
Alicia Well: Going up and all preparation that we have done for the JD 618 campaign, we are more confident about the use of growth in sales. This year doing TD, 618 campaign, and bringing consumer with better and cheaper shopping experiences.
Alicia: So for some time and social dossier hydro.
Alicia: Yeah, clearly south Asia.
Alicia: Can you just go to you.
Speaker Change: Since the beginning of this year driven by a series of policy to boost consumption.
Speaker Change: Overall consumption trend has continued to improve which will also promote the ongoing economic growth leveraging the ultimate user experience JD has achieved healthy growth in both user base and scale.
Alicia Well: Quote unquote conclude tungsten early really mobile shorthand hydrogel without Zingale <unk> closing the Cheyenne Moshe.
Speaker Change: The consumer markets are heating up and all preparation that we have done for the J D. 618 campaign, we are more confident about the use of growth and self this year doing J D 618 campaign, and bringing consumer with better and cheaper shopping experience.
Alicia Well: <unk> Roger.
Alicia Well: <unk>.
Alicia Well: <unk>.
Alicia Well: Alicia regarding your question about <unk> long term growth and net margin target.
Alicia Well: Burnt Td's business model is built on supply chain capabilities and is centered around the user experience.
Speaker Change: Yes.
Speaker Change: Hum, but I'm quite confident Tom's Houston Dallas early really moved at all no sure Yeah, Howdy I'll wait at Zynga only going in wage neutral don't Fool T anyway. So I think the Cheyenne Moshe Walnut trunk, she told rule, which anyway. It all Joe.
Alicia Well: Long term investment will focus on enhancing user experience driving user growth and strengthening our advantages in one key business model and our logistics and services.
Alicia Well: <unk> shortens could Jacobsen Tangshan woman, who turn the phone for your ultra shopping accountancy teacher in for Holden Amit.
Speaker Change: <unk> T N T shirt, so you don't lose their jobs.
Speaker Change: Town clocks seeing so what are the things or the ocean.
Speaker Change: Alicia regarding your question about <unk> long term growth and net margin target.
Alicia Well: So we are Hawker notice future.
Cynthia Walker <unk> co wire mesh.
Speaker Change: J D.
Speaker Change: So it's on supply chain.
Alicia Well: Liam could adjust within the job gulping higher around the thing down bond normalize unloads emotion.
Speaker Change: And is centered around the user experience of a long term investment well focus on enhancing user experience driving user growth and strengthening our advantages in one key business model and then logistics and services.
Speaker Change: <unk> <unk> <unk> <unk> CEO transition charge.
Speaker Change: Thank you.
Speaker Change: In terms of user experience and user growth, we have been continuously in reaching the supply of quality products on our platform and our ability to serve users and their diverse demands for example, our efforts in TMC business on demand in retail and food delivery.
Speaker Change: Judy the toll roof on sell in bulk or short term don't quote unquote, sometimes frontwoman boot on the phone for your ultra shopping they're going to teach them for your own who don't know me odd months, we all hope in the future.
Alright.
Speaker Change: Yeah, well for tissue ankle for Wimax.
Speaker Change: Tyler you want put.
Speaker Change: Just within the job gulping hard around the things that you are bound to all my wife downloads in Boston had the Fuji catch in La Jolla try social that to what we'll see here what kind of furniture home Josh.
Speaker Change: Have helped to accelerate user growth.
Speaker Change: High frequency high volume orders have also simply maintaining user data for the entire gd ecosystem generating cross selling opportunities and the synergies with our core business.
Speaker Change:
Speaker Change: First in terms of user experience and user growth, we have been continuously in reaching the supply of quality products on our platform and our ability to serve users and their diverse demands for example, our efforts in sushi business on demand in retail and it's working.
Speaker Change: <unk> seen in leisure Goldman DNP.
Speaker Change: BNP bulk.
Speaker Change: <unk>.
Speaker Change: <unk>.
Speaker Change: Which is your total wine chanting elite.
Speaker Change: <unk> has other team Molly.
Speaker Change: Fiber Molly.
Speaker Change: Congo things your bonds out the long lead times out how your father shopping currency Osha <unk>.
Speaker Change: Labor rates have helped to accelerate user growth and high frequency high volume orders have also supplemented a user data well the entire JD ecosystem generating cross selling opportunities and the synergies with our core business.
Speaker Change: Ownership with our Hangzhou hung in agenda going in tissue.
Speaker Change: One good thing going there and growing module should that tango tremendous agile solid future.
Speaker Change: In terms of our <unk> capabilities, we have been improving our operations in categories, such as electronics and home appliances, and general merchandise, including supermarkets and fashion categories. For example, we have been strengthening the operator.
Speaker Change: <unk> seen a leash on a woman at the MTA.
Speaker Change: So about four songs house, you're showing that your vaccine like <unk>, which.
Speaker Change: Which is your total wine chanting the leap.
Speaker Change: Paul quotations highs, how the team leave quantify them.
Speaker Change: Abilities, including Paraguay planning capabilities of our procurement and his sales team, we aim to create a differentiated product to supply advantage through capabilities like customization and exclusive sales.
Speaker Change: Tango things your boss out the long lead times on how your father, Shanghai concert Yoshi kosher.
Speaker Change: Ownership without hung Shaw hung in an agenda going in to see.
Speaker Change: Onboard thing going and getting more youll ship, that's still tangled tremendous agile salary teacher.
Speaker Change: At the same time, we are constantly strengthening our industry, leading supply chain system, leveraging the scale benefits to drive down procurement costs and improve efficiency.
Speaker Change: In terms of our <unk> capabilities, we have been improving our operations in categories, such as electronics and home appliances, and your general merchandise, including supermarkets and fashion categories. For example, maybe being strengthening the operational capabilities, including kind of a great plan.
Speaker Change: Paul.
To ensure all Macquarie institutions is her watching north Hanover mall.
His law not one year transact <unk> Suzhou pushes wheelchair Hans here in New York transaction.
Speaker Change: And capabilities of our procurement and Michelle's team, we aim to create a differentiated product to supply or to maintain their own capabilities like customization and exclusive itself.
Speaker Change: Prelaunch shoot the chance to jump in.
Speaker Change: In terms of our logistics capabilities, we will made efforts to further upgrade our last mile fulfillment network and our capabilities. In addition, there will be elaborating automation and AI technologies to progressively implement intelligent solutions across all logistics operations.
Speaker Change: At the same time, we are constantly strengthening our industry, leading supply chain system, leveraging the scale benefits to drive down procurement costs and improve efficiency.
Speaker Change: Oh, sorry.
Speaker Change: Tangible shotwell mcquade institutions is how often you don't say all of the mall.
Speaker Change: With the aim to drive sustainable.
It takes a lot longer for them.
Speaker Change: Not woman yet from that point going on for the Ohio, AI, that's usual pushes him Hello Chao onto your old counting their channel while they don't shoot the trunk C. The javelin things up.
Cost reduction and efficiency gains <unk>.
Speaker Change: <unk> counting on going that Youll ship is important Houston Bank core champion Joshua.
Speaker Change: In terms of our logistics capabilities, we have made efforts to further upgrade our last mile fulfillment network and the capabilities innovation that will be elaborating automation and AI technologies to progressively implement intelligent solutions across all logistics operations.
Speaker Change: The <unk> chip.
Speaker Change: Okay more fuel oil to the strategic women Youre seeing things Suzanne <unk> syndrome trial.
Sheila Forman: Sheila Forman literally with CJ <unk>.
Speaker Change: For the quarter.
Sheila Forman: <unk> mutation.
Speaker Change: With the aim to drive sustainable.
Sheila Forman: In downtown Chicago virtual delivery, Montreal Mayo Garcia.
Speaker Change: Cost reduction and efficiency women it sounds interesting chances total talent without counting on the corner.
Speaker Change: We are confident that these efforts will further strengthen <unk> supply chain advantages and are continuing to enhance user experience and mind share on our enriched product price competitiveness and the service quality.
Speaker Change: That youll ship.
Speaker Change: People don't you shouldn't Banquo champions Chaco food that Nader your quote Yahoo sing chip.
Speaker Change: We'll go ahead and walk through that she T shirt.
Speaker Change: This will drive better user growth and engagement and are positioning us for accelerated growth going forward in the long run our profit margins will continue to improve with the expansion of our business scale and increased operational efficiency.
Speaker Change: And then you'll see things Shazam go acquire the syndrome.
Speaker Change: Chunks like woman done literally ways C. J, you way more than caught out Saudi that you call Arch Street Houston.
Speaker Change: Its in downtown Chicago, where she'll deliver these won't be all male gotcha.
Speaker Change: We are confident that these efforts will further strengthen J D supply chain advantages and continue to enhance user experience and mind share on our enrich the paradox price competitiveness and the service quality.
Speaker Change: These long term goal of achieving high single digit net margin remains unchanged.
Speaker Change: Yes.
Speaker Change: Next question please.
Speaker Change: Thank you the next question.
Speaker Change: Yes.
Speaker Change: Yes.
Speaker Change: We'll drive better user growth and engagement and a position of asphalt accelerated growth going forward in the long run our profit margins will continue to improve with the expansion of our business scale and increased operational efficiency Jd's long term goal of achieving.
Speaker Change: But somehow you said 100 days.
Speaker Change: <unk>.
Speaker Change: Finally, <unk> Johansson fogleman by BNP <unk> largest cable <unk> attrition.
Speaker Change: One 800, <unk> don't worry about the syndicates in pumps.
Speaker Change: Thanks management for taking my questions. My first question is about the trade in program and subsidies to electronic categories.
Speaker Change: High single digit net margin remains unchanged.
Speaker Change: Next question please.
Speaker Change: Should we think about the trend for smartphones and home appliances over the next few quarters and my second question is about capital return can management comment about the latest update on shareholders require buyback. Thank you.
Speaker Change: Thank you the next question.
Speaker Change: Yeah.
Speaker Change: Alright.
Speaker Change: But somehow she said when they tell them. Okay. So that's the U N.
Speaker Change: And I can go back to you to us.
Speaker Change: Thank you Joe Fantasy football meant by BNP made it means that they'll just say about when kind of choppy and we like coupons and Dandy Patricia.
Speaker Change: So is it how much no.
Speaker Change: EMEA kind of our tissue <unk> had <unk> strategic.
Speaker Change: Sure let me it's okay. It sounds like you saw them don't worry about it seemed like Oh. Thanks management for taking my question. My first question is about the trade in program and it's not like they used to get at on the category.
Speaker Change: So you can see <unk>, namely <unk> <unk>, CTO, Nonetheless, lateral and savvy and official T cells that function of tissue <unk> Goto marciano product pattern.
Speaker Change: How should we think about the trend for smart phones and home appliances over the next few quarters and my second question is about somebody told me can management comment about the latest updates on shareholders because like my back. Thank you.
Speaker Change: Now, let me kind of toward a self AT&T titration feature on that.
Speaker Change: Thank you Thomas since last year, a series of stimulus policy introduced by the government have already shown positive result, the Trillium program not only boosted consumer demand driven sales of home appliances, and mobile phones, but also promoted the industry's shift towards offering more high end.
Speaker Change: Or is it too much.
Speaker Change: EMEA kind of our tissue punching location, but that's what how do you see it since he jumped huh.
Speaker Change: So you can see though let's say to yourself well now you're doing some with each hit I don't know he said I don't know something CTO now not a lot on Saturday and official T cell show that function as you see it we don't let that go down what you know what those patents now.
Speaker Change: Intelligent product selections.
Speaker Change: We are seeing significant potential in Chinese consumer market.
Speaker Change: <unk>.
Speaker Change: Sure <unk> got the entity that imprimatur RT two down <unk>.
Speaker Change: Now, let me come back to where they felt they can't meet the changes that you're talking about.
Speaker Change: <unk> social Santana tissue.
Speaker Change: Thank you it's almost since last year a series of stimulus policy introduced by the government have already shown positive result, the Trillium program not only boosted consumer demand driven.
Speaker Change: <unk>.
Speaker Change: We also expect to see very strong momentum of.
Speaker Change: The electronics category, including mobile phones and home appliance categories in the second quarter.
Speaker Change: Driven sales of home appliances, and mobile phones, but also promoting the industry's shift towards offering more high end intelligent product selections. We are we are seeing significant potential in Chinese consumer market.
Speaker Change: Well my account tissue tissue on local eleonore her formerly chip outside central toned down attention Angola Congo.
Speaker Change: <unk> <unk>.
Speaker Change: <unk> Jaco CEO to have a social <unk> said that in Canada should have similar.
Speaker Change: E C shows he's out in D. C that imprimatur RT two down yes, she can combat social sometime attrition.
Speaker Change: We will continue to enhance our supply chain and service capabilities to provide users with better shopping experience <unk> potential demand into cells and increasing our market share in the electronics categories.
Speaker Change:
Speaker Change: We also expect to see very strong momentum of our data.
Speaker Change: Iconic category, including mobile phones and home appliance categories in the second quarter.
Speaker Change: Well me it sounds this is kishore Luckily in only her phone only chip I'll say, social sometimes with ocean uncle He couldn't go how about <unk> 40, and tuition about Kansas City.
Speaker Change: Okay.
Speaker Change: While accounting now WOMAC woodall with all the things you can John.
Speaker Change: Sure Deane.
Speaker Change: Once these inquiry calls partially sichuan quarter approval.
Speaker Change: Should you have any social Tricia T cell woman does say that Ian Pinedo should have similar.
Speaker Change: Samsung is handling Sichuan the ABS.
Speaker Change: We will continue to enhance our supply chain and service capabilities to provide users with better shopping spirits culbertson potential demand into cells and increasing our market share in the electronics categories.
Speaker Change: When it goes on well, yes sure.
Schoenbaum UCH Army <unk> essentially year low tanker for the passenger.
Speaker Change: In June we go the genes.
Sanford: Sanford supplier in Melbourne.
<unk> gone through that <unk> sensing can be.
Speaker Change: What kinds of things that WOMAC would also with all the fishing season.
Sanford: And Youll see required.
Speaker Change: Yes sure thing.
Speaker Change: So you didn't quite go yet bought him in Sichuan cool pool groups, Shandong Fujian in Sichuan the yes.
Speaker Change: Chip Hi Fi.
Gourmet Acs policy limits.
Speaker Change: Now, let me update on the latest progress of our shareholder return year to date in 2025, we have repurchased a total of around $80 7 million ordinary shares equivalent to $244 million.
Speaker Change: When it goes on well yeah sure.
Speaker Change: Sound Downbeat teach your army Arsenio short essentially year little turnkey food that passenger.
Speaker Change: In June we go to Jim Goss.
Speaker Change: While our total of about one 5 billion U S.
Speaker Change: Sascha, it's quiet in ballpark.
Speaker Change: Oh I'm sure. It goes without saying you ashamed poorer aren't in Austin and then do the same thing can be.
Speaker Change: This represented about two 8% of our ordinary shares outstanding as of December 31st 2024 hour average of share buyback price was $37 and <unk> 10 require avs.
Speaker Change: E C.
Speaker Change: While it's actually a one chip Perry Kuo.
Speaker Change: Cool.
Speaker Change: Hi C E G.
Speaker Change: Now, let me update to the latest progress of all of our shareholder return.
Speaker Change: To date in front of you talking five we have repurchased a total of around <unk> 80.7 million ordinary shares equivalent to 242 for me as well.
Speaker Change: <unk> in March we announced annual cash flow.
Speaker Change: For the year of 2024, and the company paid the dividend payment in this April totaling one point 44 billion U S dollars.
Speaker Change: A total of about 1.25 billion.
Speaker Change: U S dollar.
Speaker Change: Yes.
Speaker Change: Basically we presented about full point to 8% of our ordinary shares outstanding as of December 31st 2024 hour average of share buyback price was $37 and eight genes that statement.
Speaker Change: Macquarie tissue attending the Congo from home for a goal with Google now, Tom Shaw media, which you're going to gain more legroom ascending order Chung <unk> tissue.
Speaker Change: <unk> year reduction.
Speaker Change: Yes.
Speaker Change: In addition in March we announced annual cash flow.
Speaker Change: Going forward, we remain committed to gave back to our shareholders through dividends and share buybacks. After the same time, we will keep focused on achieving long term healthy growth in business scale profitability and the cash flow.
Speaker Change: For the year, <unk> and completed the babies into payments.
Speaker Change: Totaling one point 44 billion U S dollars, all while U S. A.
Speaker Change: Yes.
Speaker Change: Yeah, I won't mcquade tissue testing the tongue or from home. So what are your goals like Google now talk shortly which since you've gone through your way more legroom, who is attending the chances gencon. The zynga. She should Congress put on the phone I'm sure you don't think sounds single year reduction.
Speaker Change: Aimed to share our success with shareholders through various ways.
Speaker Change: Okay. Thank you Thomas.
Speaker Change: Thank you.
Speaker Change: I will now turn the call over to Jay.
Speaker Change: Going forward, we remain committed to gave back to our shareholders through dividends and share buybacks. After the same time, we will keep focused on achieving our long term healthy growth in business scale profitability and the cash flow, we aim to share our success with shareholders.
Speaker Change: Sure.
Speaker Change: Yeah.
Speaker Change: Thank you all for joining us on the call today and thanks for your questions. If you have further questions.
Contact me and our team. We appreciate your interest in JD Com and look forward to talking with you next quarter. Thank you.
Speaker Change: Thanks for your participation.
Speaker Change: There are various ways.
Speaker Change: Please.
Speaker Change: You may now.
Speaker Change: Okay. Thank you Tomas.
Speaker Change: Thank you.
Speaker Change: The conference call.
Speaker Change: On the call over to Jay.
Speaker Change: Sure.
Speaker Change: Yeah.
Speaker Change: Thank you all for joining us on the call today and thanks for your questions. If you have further questions. Please contact me and our team. We appreciate your interest in JD Com and look forward to talking with you next quarter. Thank you.
Speaker Change: Your participation.
Speaker Change: Right.
Speaker Change: Yeah.
Speaker Change: Okay.
Speaker Change: [music].