Q2 2025 JD.Com Inc Earnings Call

Penn sorry in listen only mode. After.

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

Today's conference is being recorded.

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

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

Thank you operator, good day, everyone welcome to <unk> second quarter 2025 earnings conference call with US today are CEO of TD Dot com sand issue and our CFO, Mr. Shang Sandy will kick off the call with opening remarks, and <unk> will discuss the financial results.

After that we'll open the call to questions from analysts before turning the call over to Cindy Let me quickly cover the safe Harbor. Please be reminded that during this call our comments and responses to your questions reflect management's view as of today is only and will include forward looking statements. Please refer to our latest safe Harbor statement.

In the earnings press release on IR website, which apply to this call will discuss certain non-GAAP financial measure. Please also refer to the reconciliation of non-GAAP measures to the comparable GAAP measures in the earnings press release. Please also note all figure mentioned today in this call are in RMB unless.

Otherwise stated with that let me turn the call over to our CEO Sandy.

Thank you Michelle Hello, everyone. Thank you for joining our second quarter 2025 earnings conference call.

In the second quarter, we stay focused on providing the best user experience lowering costs and improving efficiency to drive healthy sustainable growth.

At the same time, we took some early steps to further advance our long term development.

Looking at the overall performance.

We're pleased to report a solid topline growth of 22% year on year in the second quarter with total revenue, reaching 357 billion RMB in the quarter.

Speaker #2: Hello, and thank you for standing by for JD.com's second quarter and interim 2025 earnings conference call. At this time, all participants are in listen-only mode.

Sean Zhang: Hello, and thank you for standing by for JD.com's second quarter and interim 2025 earnings conference call. At this time, all participants are in listen-only mode. After management's prepared remarks, there will be a question and answer session. Today's conference is being recorded. If you have any objections, you may disconnect at this time. I would now like to turn the meeting over to your host for today's conference, Sean Zhang, Director of Investor Relations. Please go ahead.

This strong momentum was driven by encouraging acceleration across most of our business lines include.

Speaker #2: After management's prepared remarks, there will be a question-and-answer session. Today's conference is being recorded. If you have any objections, you may disconnect at this time.

Including electronics and home appliances general merchandise categories as well.

Well as service revenues.

Speaker #2: I would now like to turn the meeting over to your host for today's conference, Sean Zhang, Director of Investor Relations. Please go ahead.

Our non-GAAP net income attributable to ordinary shareholders in the quarter was seven 4 billion RMB compared to 14 five.

Speaker #3: Thank you, operator. Good day, everyone. Welcome to JD.com's second quarter and interim 2025 earnings conference call. With us today are the CEO of JD.com, Ms. Sandy Xu, and our CFO, Ms. Ian Shan.

Operator: Thank you, operator. Good day, everyone. Welcome to JD.com's second quarter and interim 2025 earnings conference call. With us today are CEO of JD.com, Sandy Xu, and our CFO, Ian Shan. Sandy will kick off the call with her open remarks, and Ian will discuss the financial results. After that, we will open the call to questions from analysts. Before turning the call over to Sandy, let me quickly cover the stakeholder. Please be reminded that during this call, our comments and responses to your questions reflect management's view as of today only, and will include forward-looking statements. Please refer to our latest stakeholder statement in the earnings press release on our website, which applies to this call. We will discuss certain non-GAAP financial measures. Please also refer to the reconciliation of non-GAAP measures to the comparable GAAP measures in the earnings press release.

Billing RMB in the same period last year as a result of the investment and the rapid growth in our new businesses, including our food delivery business.

Speaker #3: Sandy will kick off the call with her opening remarks, and Ian Shan will discuss the financial results. After that, we'll open the call to questions from analysts.

That said, our core business steady retail continued to see healthy profitability improvement.

Speaker #3: Before turning the call over to Sandy, let me quickly cover the stakeholders. Please be reminded that during this call, our comments and responses to your questions reflect management's view as of today only, and will include forward-looking statements.

JD Retail's non-GAAP operating profit increased by 38% year on year to $13 9 billion RMB in the second quarter with an operating margin of four 5% up from three 9% in the same period last year.

Speaker #3: Please refer to our latest stakeholder statement in the earnings press release on our website, which applies to this call. We'll discuss certain non-GAAP financial measures.

Overall, we are confident in our core retail business.

Speaker #3: Please also refer to the reconciliation of non-GAAP measures to the comparable GAAP measures in the earnings press release. Please also note all figures mentioned today in this call are in R&B, unless otherwise stated.

Our new businesses, including JD foot delivery are progressing well as planned.

Operator: Please also note all figures mentioned today in this call are in RMB, unless otherwise stated. With that, let me turn the call over to our CEO, Sandy.

Mining seamlessly with our strategic roadmap to drive long term sustainable growth.

Speaker #3: With that, let me turn the call over to our CEO, Sandy.

Behind these results and particularly encouraged by the high morale and collaborative spirit across all the business teams at J D.

Speaker #4: Thank you, Sean. Hello, everyone. Thank you for joining our second quarter 2025 earnings conference call. In the second quarter, we stay focused on providing the best user experience lowering costs and improving efficiency, to drive healthy, sustainable growth.

Ian Shan: Thank you, Sean. Hello, everyone. Thank you for joining our Q2 2025 earnings conference call. In the second quarter, we stayed focused on providing the best user experience, lowering costs, and improving efficiency to drive healthy, sustainable growth. At the same time, we took some early exciting steps to further advance our long-term development. Looking at the overall performance, we are pleased to report a solid top-line growth of 22% year-on-year in the second quarter, with total revenues reaching 357 billion R&D in the quarter. This strong momentum was driven by encouraging acceleration across most of our business lines, including electronics and home appliances, general merchandise categories, as well as service revenues.

Their collective efforts forms a solid foundation that will continue to propel our upward momentum and the effective execution of our strategic goals.

Speaker #4: At the same time, we took some early, exciting steps to further advance our long-term development. Looking at the overall performance, we are pleased to report a solid top-line growth of 22% year-on-year in the second quarter.

I want to highlight three key progress we achieved that underpinned our strong performance in the quarter and will sustain our healthy growth going forward.

First.

Speaker #4: With total revenues reaching $397 billion R&B in the quarter, this strong momentum was driven by encouraging acceleration across most of our business lines. Including electronics and home appliances, general merchandise categories, as well as service revenues.

User growth and engagement stand out as a key achievement for us in Q2, as we continue to center on users and spare no effort in delivering the best possible user experience.

Growth of our quarterly active customers all of the QA see accelerated notably to over 40% year on year in Q2.

Speaker #4: Our non-GAAP net income attributable to ordinary shareholders in the quarter was $7.4 billion R&B, compared to $14.5 billion R&B in the same period last year, as a result of the investment and rapid growth in our new businesses.

Ian Shan: Our non-GAAP net income attributable to ordinary shareholders in the quarter was 7.4 billion R&D, compared to 14.5 billion R&D in the same period last year as a result of the investment and rapid growth in our new businesses, including our JD Food Delivery business. That said, our core business, JD Retail, continued to see healthy profitability improvement. JD Retail's non-GAAP operating profit increased by 38% year-on-year to 13.9 billion R&D in the second quarter, with an operating margin of 4.5%, up from 3.9% in the same period last year. Overall, we are confident in our core retail business, while our new businesses, including JD Food Delivery, are progressing well as planned, aligning seamlessly with our strategic roadmap to drive long-term sustainable growth. Behind these results, I am particularly encouraged by the high morale and collaborative spirit across all the business teams at JD.

And total QA C base reached a new milestone.

The strong user momentum in the quarter was driven by both the accelerated growth of JD retail's organic user base as well as incremental contributions from JD foot delivery and CMC business.

Speaker #4: Including our food delivery business, that said, our core business, JD Retail, continued to see healthy profitability improvement. JD Retail's non-GAAP operating profit increased by 38% year-on-year to $13.9 billion R&B in the second quarter, with an operating margin of 4.5%.

In addition to user growth, we're also seeing stronger user engagement.

In particular user shopping frequency on Jd's platform.

By over 40% year on year in the second quarter.

Notable improvement from previous quarters.

So J D plus members their shopping frequency grew by an even faster pace of over 50% year on year in Q2.

Speaker #4: Up from $3.9% in the same period last year. Overall, we are confident in our core retail business. While our new businesses including JD Food Delivery are progressing well as planned, aligning seamlessly with our strategic roadmap to drive long-term sustainable growth.

This is clear proof that our food delivery offerings resonate strongly with our highest quality user group.

We also achieved record breaking results on the user fronts. During the June 18th Grand promotion. This year with the total number of purchasing users more than doubled year on year.

Speaker #4: Behind these results, I'm particularly encouraged by the high morale and collaborative spirit across all the business teams at JD. Their collective effort forms a solid foundation that will continue to propel our upward momentum and effective execution of our strategic goals.

And total order volume surpassed $2 2 billion orders.

The positive momentum in user growth and the shopping behavior.

Ian Shan: Their collective effort forms a solid foundation that will continue to propel our upward momentum and the effective execution of our strategic goals. I want to highlight three key progress we achieved that underpinned our strong performance in the quarter and will sustain our healthy growth going forward. First, user growth and engagement stand out as a key achievement for us in Q2 as we continue to center on users and spare no effort in delivering the best possible user experience. Growth of our quarterly active customers, or QAC, accelerated notably to over 40% year-on-year in Q2, and total QAC base reached a new milestone. The strong user momentum in the quarter was driven by both the accelerated growth of JD Retail's organic user base, as well as incremental contributions from JD Food Delivery and Juicy business. In addition to user growth, we also see stronger user engagement.

<unk> as a powerful testament to the synergies between our new business initiatives and core retail business.

Speaker #4: I want to highlight three key progress achievements that underpinned our strong performance in the quarter and will sustain our healthy growth going forward.

We will continue to deepen the synergies and unlock the greater value, which we expect will strengthen overall user stickiness to our platform and drive higher lifetime value across the JD ecosystem.

Speaker #4: First, user growth and engagement stand out as a key achievement for us in Q2. As we continue to center on users and spare no effort in delivering the best possible user experience, growth of our quarterly active customers over the QAC accelerated notably to over 40% year-on-year in Q2.

Separately.

Core business steady retail continued to gain steady traction on the back of our further strengthened supply chain capabilities.

In Q2, JD retail achieved robust momentum on both top and bottom lines.

By category Electronics, and home appliances maintained a strong momentum in the quarter with revenues up 23% year on year.

Speaker #4: And total QAC base reached a new milestone. The strong user momentum in the quarter was driven by both the accelerated growth of JD Retail's organic user base as well as incremental contributions from JD Food Delivery and Jinxi Business.

This reflects our ever evolving supply chain strength.

Which enables us to further enhance procurement capabilities and offer users extensive product selections.

<unk> price and superior services.

Speaker #4: In addition to user growth, we also see stronger user engagement. In particular, user shopping frequency on JD's platform rose by over 40% year-on-year in the second quarter.

This trend has positioned us as a leader in the industry.

Ian Shan: In particular, user shopping frequency on JD.com's platform rose by over 40% year-on-year in the second quarter, a notable improvement from previous quarters. For JD Plus members, their shopping frequency grew by an even faster pace of over 50% year-on-year in Q2. This is clear proof that our JD Food Delivery offerings resonate strongly with our highest quality user group. We also achieved record-breaking results on the user fronts during the June 18th grand promotion this year, with the total number of purchasing users more than doubled year-on-year, and total order volume surpassed 2.2 billion orders. The positive momentum in user growth and shopping behavior stands as a powerful testament to the synergies between our new business initiatives and core retail business.

During periods of trade in programs and throughout the day to day development.

Our general merchandise business also delivered a strong performance in the second quarter with revenues up 16% year on year.

Speaker #4: A notable improvement from previous quarters. For JD Plus members, their shopping frequency grew by an even faster pace of over 50% year-on-year in Q2.

In particular, driven by our supply chain strengths, our supermarket category further extended its check streak of double digit revenue growth to six consecutive quarters.

Speaker #4: This is clear proof that our food delivery offerings resonate strongly with our highest quality user group. We also achieved record-breaking results on the user front during the June 18th grand promotion this year.

Meanwhile, our fashion business continued to maintain double digit year on year growth in revenues in Q2.

Speaker #4: With the total number of purchasing users more than doubled year-on-year, and total order volume surpassed $2.2 billion orders. The positive momentum in user growth and shopping behavior stands as a powerful testament to the synergies between our new business initiatives and core retail business.

The strong top line growth of JD retail was coupled with an even stronger operating profit growth and margin expansion in the quarter progressing well towards its long term target.

The continued improvement in JD Retail's profitability is primarily driven by our stronger supply chain capabilities, which ultimately translate to better user experience.

Speaker #4: We will continue to deepen the synergies and unlock the greater value which we expect will strengthen overall user stickiness to our platform. And drive higher lifetime value across the JD ecosystem.

Ian Shan: We will continue to deepen the synergies and unlock the greater value, which we expect will strengthen overall user stickiness to our platform and drive higher lifetime value across the JD.com ecosystem. Secondly, our core business, JD Retail, continued to gain steady traction on the back of our further strengthened supply chain capabilities. In Q2, JD Retail achieved robust momentum on both top and bottom lines. By category, electronics and home appliances maintained a strong momentum in the quarter, with revenues up 23% year-on-year. This reflects our ever-evolving supply chain strength, which enables us to further enhance procurement capabilities and offer users extensive product selections, competitive price, and superior services. These strengths have positioned us as a leader in the industry, both during periods of trade-in programs and throughout the day-to-day development. Our general merchandise business also delivered strong performance in the second quarter, with revenues up 16% year-on-year.

Your cost and greater operating efficiency.

Thirdly, we are also encouraged by the healthy development of our new business initiatives.

TD food delivery business has experienced rapid growth since its launch with daily order volume increasingly exponentially in Q2 and several key milestones successfully achieved.

Speaker #4: Secondly, our core business, JD Retail, continued to gain steady traction on the back of our further strengthened supply chain capabilities. In Q2, JD Retail achieved robust momentum on both top and bottom lines.

We've made significant progress in Onboarding high quality merchants.

Speaker #4: Back category, electronics and home appliances maintained a strong momentum in the quarter, with revenues up 23% year-on-year. This reflects our ever-evolving supply chain strength, which enables us to further enhance procurement capabilities.

And the number of full time delivery drivers has increased rapidly.

More importantly, JD foot delivery has started to generate clear synergies with our core retail business.

Beyond the user related insights I just shared.

Speaker #4: And offer users extensive product selections. Competitive price and superior services. This strengths have positioned us as a leader in the industry. Both during periods of trade-in programs and throughout the day-to-day development.

We are also proactively capitalizing on the cross selling opportunities.

Both by food delivery business.

We are pleased to see the progress so far, particularly the increasing cross sell ratio of new users brought in by food delivery.

Speaker #4: Our general merchandise business also delivered strong performance in the second quarter. With revenues up 16% year-on-year. In particular, driven by our supply chain strengths, our supermarket category further extended its track streak of double-digit revenue growth to six consecutive quarters.

Supermarket categories.

Life style services and electronic accessories has benefited the most from this trend.

Ian Shan: In particular, driven by our supply chain strengths, our supermarket category further extended its streak of double-digit revenue growth to six consecutive quarters. Meanwhile, our fashion business continued to maintain double-digit year-on-year growth in revenues in Q2. The strong top-line growth of JD Retail was coupled with an even stronger operating profit growth and margin expansion in the quarter, progressing well toward its long-term target. The continued improvement in JD Retail's profitability is primarily driven by our stronger supply chain capabilities, which ultimately translate to better user experience, lower cost, and greater operating efficiency. Thirdly, we are also encouraged by the healthy development of our new business initiatives.

Additionally, as our food delivery business scales. We believe it will further enrich our local supply of merchants and drive user traffic and engagement to our all of all of our <unk> merchants, helping establish a more dynamic.

Speaker #4: Meanwhile, our fashion business continued to maintain double-digit year-on-year growth in revenues in Q2. The strong top-line growth of JD Retail was coupled with an even stronger operating profit growth and margin expansion in the quarter.

And comprehensive <unk> ecosystem on our platform.

So J D. The current priority for our food delivery business is to enhance core system capabilities from optimizing order dispatching algorithms to refining route planning technologies, all to strengthen JD foot deliveries.

Speaker #4: Progressing well toward its long-term target. The continued improvement in JD Retail's profitability is primarily driven by our stronger supply chain capabilities. Which ultimately translates to better user experience and lower cost and greater operating efficiency.

To better serve users and drive traffic on the user growth to merchants on our platform.

Speaker #4: Thirdly, we are also encouraged by the healthy development of our new business initiatives. JD Food Delivery has experienced rapid growth since its launch.

Driven by these efforts.

We are encouraged to see that despite industry dynamics JD foot delivery has maintained a healthy order volume growth, especially for new orders in Q3 quarter to date.

Ian Shan: JD Food Delivery business has experienced rapid growth since its launch, with daily order volume increasing exponentially in Q2 and several key milestones successfully achieved. We have made significant progress in onboarding high-quality merchants, and the number of full-time delivery riders has increased rapidly. More importantly, JD Food Delivery has started to generate clear synergies with our core retail business. Beyond the user-related insights I just shared, we are also proactively capitalizing on the cross-selling opportunities brought by the food delivery business. We are pleased to see the progress so far, particularly the increasing cross-sale ratio of new users brought in by food delivery. Supermarket categories, lifestyle services, and electronic accessories have benefited the most from this trend.

Speaker #4: With daily order volume increasingly exponentially in Q2, and several key milestones successfully achieved. We've made significant progress in onboarding high-quality merchants. And the number of full-time delivery riders has increased rapidly.

I want to reiterate that we do not view our foot delivery as a standalone business.

It's deeply integrated with jd's broader ecosystem.

We aim to further unlock synergies not only between JD foot delivery and JD retail, but also with JD logistics and other businesses across our ecosystem.

Speaker #4: More importantly, JD Food Delivery has started to generate clear synergies with our core retail business. Beyond the user-related insights I just shared, we are also proactively capitalizing on the cross-selling opportunities brought by food delivery business.

This is where our strategic focus lies.

Going forward, we will stay focused on our strategic priorities and invest with high efficiency at appropriate pace.

Speaker #4: We are pleased to see the progress so far, particularly the increasing cross-sale ratio of new users brought in by food delivery. Supermarket categories, lifestyle services, and electronics accessories have benefited the most from this trend.

To meet the evolving dynamics in the food delivery market.

In addition to our robust operations and the rising market position in the domestic market.

We've also been proactively looking at opportunities to grow globally and taking some early exciting steps.

Speaker #4: Additionally, as our food delivery business scales, we believe it will further enrich our local supply of merchants and drive user traffic and engagement to our all of our three P merchants.

Ian Shan: Additionally, as our food delivery business scales, we believe it will further enrich our local supply of merchants and drive user traffic and engagement to all of our 3P merchants, helping establish a more dynamic and comprehensive 3P ecosystem on our platform. For JD.com, the current priority for our food delivery business is to enhance core system capabilities, from optimizing order dispatching algorithms to refining route planning technologies, all to strengthen JD Food Delivery's ability to better serve users and drive traffic and user growth to merchants on our platform. Driven by these efforts, we are encouraged to see that despite industry dynamics, JD Food Delivery has maintained a healthy order volume growth, especially for new orders in Q3 quarter to date. I want to reiterate that we do not view our food delivery as a standalone business, as it is deeply integrated with JD.com's broader ecosystem.

<unk> Global is a long term vision and host strategic value for <unk> as we aim to leverage <unk> unique advantages of supply chain Knowhow and technology.

In recent years JD retail TD logistics MTV property, all has taken steps to test and build out over six retail formats warehouse networks transportation infrastructure and local operational capabilities, especially in.

Speaker #4: Helping establish a more dynamic and comprehensive three P ecosystem on our platform. For JD, the current priority for our food delivery business is to enhance core system capabilities from optimizing order dispatching algorithms to refining route planning technologies.

Europe and the Middle East.

We will share more color of our international development as we progress.

Speaker #4: All to strengthen JD Food Delivery's ability to better serve users and drive traffic and user growth to merchants on our platform. Driven by these efforts, we are encouraged to see that despite industry dynamics, JD Food Delivery has maintained a healthy order volume growth.

To conclude Q2 was a very productive quarter.

We delivered both short term results and strengthened our long term strategic positioning.

Our core retail business.

<unk> accelerated topline growth.

Long side solid profit expansion.

Underscoring the resilience of our supply chain based retail business model.

Speaker #4: Especially for meal orders, in Q3 quarter to date, I want to reiterate that we do not view our food delivery as a stand-alone business.

Q2 also marked an important milestone in our long term development.

As some of the key initiatives, both domestically and globally steadily moved forward and started to show early tangible results.

Speaker #4: As it's deeply integrated with JD's broader ecosystem, we aim to further unlock synergies. Not only between JD Food Delivery and JD Retail, but also with JD Logistics and other businesses across our ecosystem.

Ian Shan: We aim to further unlock synergies not only between JD Food Delivery and JD Retail, but also with JD Logistics and other businesses across our ecosystem. This is where our strategic focus lies. Going forward, we will stay focused on our strategic priorities and invest with high efficiency at a proper rate pace amid the evolving dynamics in the food delivery market. In addition to our robust operations and rising market position in the domestic market, we have also been proactively looking at opportunities to grow globally and taking some early exciting steps. Going global is a long-term vision and holds strategic value for JD.com, as we aim to leverage JD.com's unique advantages of supply chain know-how and technology.

Now of this happened overnight.

These are the results.

Use of dedicated effort to strengthen our core supply chain capabilities combined with extensive preparation to support our strategic expansion.

Speaker #4: This is where our strategic focus lies. Going forward, we will stay focused on our strategic priorities and invest with high efficiency at an appropriate pace.

We always have a clear vision.

The thing we do is centered on supply chain with our commitment to putting users first and elevating user experience.

Speaker #4: Amidst the evolving dynamics in the food delivery market, in addition to our robust operations and rising market position in the domestic market, we've also been proactively looking at opportunities to grow globally and taking some early exciting steps.

This will continue to drive every step of our long term development and value creation for our users.

<unk> partners and shareholders today, and tomorrow in China and across the globe.

With that now let me turn the call over to our CFO Ian.

Speaker #4: Going global is a long-term vision and holds strategic value for JD. As we aim to leverage JD's unique advantages of supply chain know-how and technology, in recent years, JD Retail, JD Logistics, and JD Property all have taken steps to test and build out overseas retail formats.

Thank you Sandy and Hello, everyone.

In Q2, we delivered strong topline growth and robust margin improvement in call recapping our.

Ian Shan: In recent years, JD Retail, JD Logistics, and JD Property all have taken steps to test and build out overseas retail formats, warehouse networks, transportation infrastructure, and local operational capabilities, especially in Europe and the Middle East. We will share more color of our international development as we progress. To conclude, Q2 was a very productive quarter. We delivered both short-term results and strengthened our long-term strategic positioning. Our core retail business achieved accelerated top-line growth alongside solid profit expansion, underscoring the resilience of our supply chain-based retail business model. Q2 also marked an important milestone in our long-term development, as some of the key initiatives, both domestically and globally, steadily moved forward and started to show early tangible results. None of this happened overnight. These are the results of years of dedicated effort to strengthen our core supply chain capabilities, combined with extensive preparation to support our strategic expansion.

Our total revenues growth for the second quarter was 22%.

Further accelerating from last quarter significantly outpacing the growth of China's total retail sales.

Speaker #4: Warehouse networks, transportation infrastructure, and local operational capabilities especially in Europe and the Middle East. We will share more color of our international development as we progress.

We saw double digit growth across our major business lines, including electronics and home appliances.

Merchandise.

Service revenues.

All showing a salaried momentum compared to previous quarters.

Speaker #4: To conclude, Q2 was a very productive quarter. We delivered both short-term results and strengthened our long-term strategic positioning. Our core retail business achieved accelerated top-line growth, alongside solid profit expansion.

Regarding profitability, our gross margin reached 15, 9%.

In Q2.

Marking the 13th consecutive quarter of gross margin expansion on a year on year basis.

Speaker #4: Underscoring the resilience of our supply chain base and retail business model, Q2 also marked an important milestone in our long-term development. As some of the key initiatives, both domestically and globally, steadily moved forward and started to show early tangible results, none of these happened overnight.

Primarily driven by our core retail business.

Our non-GAAP net profit margin was down to two 1%.

Mainly due to our investments in food delivery.

Although near term profitability is impacted by strategic investments.

We remain confident that those efforts will position the company for sustained growth and long term value creation.

Now.

Let's go through our financial results in Q2.

Speaker #4: These are the results of years of dedicated effort to strengthen our core supply chain capabilities, combined with extensive preparation to support our strategic expansion.

Our topline growth maintain a strong momentum in the quarter.

Total net revenues increased by 22% year on year to RMB 357 billion in Q2.

Speaker #4: We always have a clear vision; everything we do is centered on supply chain. With our commitment to putting users first and elevating user experience, this will continue to drive every step of our long-term development and value creation for our users.

Ian Shan: We always have a clear vision. Everything we do is centered on supply chain, with our commitment to putting users first and elevating user experience. This will continue to drive every step of our long-term development and value creation for our users, business partners, and shareholders today and tomorrow in China and across the globe. With that, now let me turn the call over to our CFO, Ian Shan.

Breaking down the mix.

<unk> revenues were up 21% with electronics and home appliances revenue up 23% year on year and general merchandise revenues, increasing by 16% year on year in the second quarter.

<unk>, showing further acceleration compared to previous quarters.

Speaker #4: Business partners and shareholders, today and tomorrow, in China and across the globe. With that, now let me turn the call over to our CFO, Ian Shan.

For electronics and home appliances.

With government's ongoing stimulus policies and the revitalization of domestic consumption JV is well positioned to fulfill the demands of consumers and provide best in class user experience.

Speaker #3: Thank you, Sandy, and hello everyone. In Q2, we delivered strong top-line growth and robust margin improvement in our core retail business. Our total revenue growth for the second quarter was 22%.

Kenneth Fong: Thank you, Sandy, and hello, everyone. In Q2, we delivered strong top-line growth and robust margin improvement in core retail business. Our total revenues growth for the second quarter was 22%, further accelerating from last quarter and significantly outpacing the growth of China's total retail sales. We saw double-digit growth across our major business lines, including electronics and home appliances, general merchandise, and service revenues, all showing accelerated momentum compared to previous quarters. Regarding profitability, our gross margin reached 15.9% in Q2, marking the 13th consecutive quarter of gross margin expansion on a year-on-year basis, primarily driven by our core retail business. Our non-GAAP net profit margin was down to 2.1%, mainly due to our investments in JD Food Delivery. Although near-term profitability is impacted by strategic investments, we remain confident that those efforts will position the company for sustained growth and long-term value creation.

As JD has core competitive advantages in those categories, including strong user marsha robust product supply capability.

Well as superior execution capabilities to effectively support local governments trading programs.

Speaker #3: Further accelerating from last quarter and significantly outpacing the growth of China's total retail sales, we saw double-digit growth across our major business lines, including electronics and home appliances, general merchandise, and service revenues.

For general merchandise.

Major categories such as supermarket.

Fashion <unk> home growth in health.

Achieved double digit revenue growth in Q2, we continued to see substantial untapped potential in our supermarket category.

Speaker #3: All showing accelerated momentum compared to previous quarters. Regarding profitability, our gross margin reached 15.9% in Q2, marking the 13th consecutive quarter of gross margin expansion on a year-on-year basis.

And we're confident in our ability to provide greater user experience with the best combination of product price and service in this category.

While maintaining healthy growth momentum.

Service revenues saw a significant acceleration rising 29%.

Speaker #3: Primarily driven by our core retail business, our non-GAAP net profit margin was down to 2.1%. Mainly due to our investments in food delivery. Although near-term profitability is impacted by strategic investments, we remain confident that those efforts will position the company for sustained growth and long-term value creation.

Year on year in the second quarter, notably the growth rates of marketplace and marketing revenues was 22%, which has accelerated for six consecutive quarters.

Commission and other advertising revenues maintained double digit growth momentum in the second quarter.

Key operating metrics of our platform ecosystem also showed meaningful progress in terms of both merchant base and user engagement.

Speaker #3: Now, let's go through our financial results in Q2. Our top-line growth maintained a strong momentum in the quarter. Total net revenues increased by 22% year-on-year to R&B's $397 billion in Q2.

Kenneth Fong: Now, let's go through our financial results in Q2. Our top-line growth maintained a strong momentum in the quarter. Total net revenues increased by 22% year-on-year to RMB 357 billion in Q2. Breaking down the mix, product revenues were up 21%, with electronics and home appliances revenue up 23% year-on-year, and general merchandise revenues increasing by 16% year-on-year in the second quarter, both showing further acceleration compared to previous quarters. For electronics and home appliances, with government's ongoing stimulus policy and the revitalization of domestic consumption, JD.com is well positioned to fulfill the demands of consumers and provide best-in-class user experience, as JD.com has core competitive advantages in those categories, including strong user mindset, robust product supply capabilities, as well as superior execution capabilities to effectively support local government trading programs.

Logistics and other services revenues were up 34%.

The growth rates of logistics and other service marks the eighth quarter high in Q2, primarily driven by our expanding food delivery business, which generated additional delivery revenue.

Speaker #3: Breaking down the mix, product revenues were up 21%, with electronics and home appliances revenue up 23% year-on-year, and general merchandise revenues increasing by 16% year-on-year in the second quarter.

Now, let's turn to our segment performance.

JD retail revenues were up 21% year on year in Q2, driven by solid performance across many of our key categories.

Speaker #3: Both are showing further acceleration compared to previous quarters. For electronics and home appliances, we've seen ongoing stimulus policies and revitalization of domestic consumption. JD is well positioned to fulfill the demands of consumers and provide best-in-class user experience.

In addition.

JD retail continue to achieve year on year gross margin expansion a trend sustained for 13 consecutive quarters.

It also marks the highest level for any comparable quarter since inception.

Speaker #3: As JD has core competitive advantages in those categories, including a strong user mindset, robust product supply capabilities, and superior execution capabilities, to effectively support local government's trading programs.

This strong track record has been primarily driven by the continued improvement of our supply chain capabilities.

In terms of operating income in the second quarter JD retail non-GAAP operating income was up 38% year on year to RMB 13, 9 billion and operating margin was up 56 bips to four 5%.

Speaker #3: For general merchandise, major categories such as supermarkets, fashion, home goods, and health all achieved double-digit revenue growth in Q2. We continue to see substantial untapped potential in our supermarket categories.

Kenneth Fong: For general merchandise, major categories such as supermarkets, fashion products, home goods, and health all achieved double-digit revenue growth in Q2. We continue to see substantial untapped potential in our supermarket categories, and we're confident in our ability to provide greater user experience with the best combination of product, price, and service in this category while maintaining healthy growth momentum. Service revenues saw a significant acceleration, rising 29% year-on-year in the second quarter. Notably, the growth rate of marketplace and marketing revenues was 22%, which has accelerated for six consecutive quarters. Both commission and advertising revenues maintained double-digit growth momentum in the second quarter. Key operating metrics of our platform ecosystem also showed meaningful progress in terms of both merchant base and user engagement. Logistics and other service revenues were up 34%.

Maintaining a steady upward trend.

We remain confident to further consolidate our market leading position and drive steady profit improvement moving forward.

Speaker #3: And we're confident in our ability to provide a greater user experience with the best combination of product price and service in this category. While maintaining healthy growth momentum, service revenues saw a significant acceleration, rising 29%.

Moving to JD logistics.

JD logistics revenues were up 17% year on year for Q2, with both internal and external revenues sustaining double digit growth momentum at <unk>.

JD logistics continue to invest in user experience.

Speaker #3: Year-on-year in the second quarter, notably the growth rate of marketplace and marketing revenues was 22%. Which has accelerated for six consecutive quarters. Both cognition and advertising revenues maintained double-digit growth momentum in the second quarter.

non-GAAP operating income in the quarter declined by 10, 3% to RMB 2 billion.

JD logistics is prioritizing.

So capacity building initiatives in last mile pickup and delivery as well as route optimization.

Speaker #3: Key operating metrics of our platform ecosystem also showed meaningful progress. In terms of both merchant base and user engagement, logistics and other service revenues were up 34%.

These targeted investments are expected to lay the foundation for efficiency gains.

And the margin expansion in the long term.

Turning to new business in Q2, new business revenues tripled year on year at the same time is non-GAAP operating loss widened to RMB 14, 8 billion, primarily driven by the rapid expansion of food delivery and <unk> business.

Speaker #3: The growth rate of logistics and other services marked an eight-quarter high in Q2, primarily driven by our expanding food delivery business, which generated additional delivery revenue.

Kenneth Fong: The growth rate of logistics and other service marked an eight-quarter high in Q2, primarily driven by our expanding JD Food Delivery business, which generated additional delivery revenue. Now, let's turn to our segment performance. JD Retail revenues were up 21% year-on-year in Q2, driven by solid performance across many of our key categories. In addition, JD Retail continued to achieve year-on-year margin expansion, a trend sustained for 13 consecutive quarters. It also marked the highest level for any comparable quarter since inception. This strong track record has been primarily driven by the continued improvement of our supply chain capabilities. In terms of operating income, in the second quarter, JD Retail's non-GAAP operating income was up 38% year-on-year to RMB 13.9 billion, and operating margin was up 56 bps to 4.5%, maintaining a steady upward trend.

Speaker #3: Now, let's turn to our segment performance. JD retail revenues were up 21% year-on-year in Q2. Driven by solid performance across many of our key categories.

Despite near term financial impact.

With food delivery business has driven meaningful traffic and user growth and significantly boost the user shopping frequency.

We have also observed a visible uplift in conversion and cross selling with our core retail business.

Speaker #3: In addition, JD Retail continued to achieve year-on-year growth margin expansion, a trend sustained for 13 consecutive quarters. It also marked the highest level for any comparable quarter since inception.

Moving forward, we will continue to focus on merchant supplier delivery efficiency and user experience for food delivery business.

Speaker #3: This strong track record has been primarily driven by the continued improvement of our supply chain capabilities. In terms of operating income, in the second quarter, JD retail's non-GAAP operating income was up 38% year-on-year to R&B's $13.9 billion and operating margin was up 56 pips.

Additionally, our teams discipline is also saw significant growth in the second quarter.

We further penetrated into lower tier markets with expanded offerings of value for money products.

For our consolidated profit performance in the second quarter, our gross profit was up 23% year on year to RMB 56 6 billion.

Speaker #3: To $4.5%. Maintaining a steady upward trend. We remain confident to further consolidate our market-leading position and drive steady profit improvement moving forward. Moving to JD Logistics, JD Logistics revenues were up 17% year-on-year for Q2, with both internal and external revenues sustaining double-digit growth momentum.

We have delivered 13 straight quarters of gross margin expansion year on year, reaching 15, 9% in the second quarter.

Kenneth Fong: We remain confident to further consolidate our market-leading position and drive steady profit improvement moving forward. Moving to JD Logistics, JD Logistics' revenues were up 17% year-on-year for Q2, with both internal and external revenues sustaining double-digit growth momentum. As JD Logistics continued to invest in user experience, its non-GAAP operating income in the quarter declined by 10.3% to RMB 2 billion. That said, JD Logistics is prioritizing capacity-building initiatives in last-mile pickup and delivery, as well as route optimization. These targeted investments are expected to lay the foundation for efficiency gains and margin expansion in the long term. Turning to new business, in Q2, new business revenues tripled year-on-year. At the same time, its non-GAAP operating loss widened to RMB 14.8 billion, primarily driven by the rapid expansion of JD Food Delivery and Juicy business.

It was primarily driven by JD Retail's gross margin improvement highlighting the high quality development of our core business.

non-GAAP net income attributable to ordinary shareholders was RMB seven 4 billion in Q2 down 49% year on year and non-GAAP net margin declined to two 1%.

Speaker #3: As JD Logistics continued to invest in user experience, its non-GAAP operating income in the quarter declined by 10.3% to R&B's $2 billion. That said, JD Logistics is prioritizing capacity-building initiatives in last-mile pickup and delivery, as well as route optimization.

This near term margin headwinds, mainly reflect our strategic investment in food delivery.

Our last 12 months free cash flow as of the end of the second quarter was RMB 10 billion compared to RMB 56 billion in the same period last year.

Speaker #3: These targeted investments are expected to lay the foundation for efficiency gains and margin expansion in the long term. Turning to new business, in Q2, new business revenues tripled year-on-year.

This was primarily due to cash outflows associated with the trading program and the decline in operating income.

By the end of Q2, our cash and cash equivalents restricted cash and.

Speaker #3: At the same time, its non-GAAP operating loss widened to R&B's $14.8 billion, primarily driven by the rapid expansion of food delivery and the Jinxi Business.

Short term investments.

Total RMB 223 billion.

In summary, our second quarter performance was highlighted by robust topline growth and healthy margin expansion of our core retail segment.

Speaker #3: Despite the near-term financial impact, the food delivery business has driven meaningful traffic and user growth and significantly boosted user shopping frequency. We have also observed a visible uplift in conversion and cross-selling with our core retail business.

Kenneth Fong: Despite near-term financial impact, the JD Food Delivery business has driven meaningful traffic and user growth and significantly boosted user shopping frequency. We have also observed a visible uplift in conversion and cross-selling with our core retail business. Moving forward, we will continue to focus on merchant supply, delivery efficiency, and user experience for food delivery business. Additionally, our Juicy business also saw significant growth in the second quarter as we further penetrated into lower-tier markets with expanded offerings of value-for-money products. For our consolidated profit performance in the second quarter, our gross profit was up 23% year-on-year to RMB 56.6 billion. We have delivered 13 straight quarters of gross margin expansion year-on-year, reaching 15.9% in the second quarter. It was primarily driven by JD Retail's gross margin improvement, highlighting the high-quality development of our core business.

Reflecting our strong execution capabilities.

And improving operational efficiency.

NAMIC market environment.

Looking ahead, we're excited about our new business initiatives and.

Speaker #3: Moving forward, we will continue to focus on merchant supply, delivery efficiency, and user experience for our food delivery business. Additionally, our Jinxi business also saw significant growth in the second quarter.

And expected it will further accelerated growth in users and shopping frequencies, while creating great potential for generating synergies.

With the continued momentum in our core business and well executed new initiatives, we're confident in our long term healthy growth.

Speaker #3: As we further penetrated into lower-tier markets with expanded offerings of value-for-money products, our consolidated profit performance in the second quarter showed that our gross profit was up 23% year-on-year to R&B 56.6 billion.

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

Yeah.

Thank you Ian for the Q&A session. You are welcome to ask the question in Chinese where English and your and our management will answer your question in the language you asked will provide English translation for convenience purpose only in the case of empty discrepancy piece.

Speaker #3: We have delivered 13 straight quarters of gross margin expansion year-on-year. Reaching 15.9% in the second quarter. It was primarily driven by JD Retail's gross margin improvement.

Please refer to the management statement in Orange General language.

Operator, we can open the call for Q&A session.

Speaker #3: Highlighting the high-quality development of our core business, non-GAAP net income attributable to ordinary shareholders was $7.4 billion in Q2. This represents a 49% year-on-year decrease.

Thank you.

<unk> and answer session of this conference call will start in a moment.

Kenneth Fong: Non-GAAP net income attributable to ordinary shareholders was RMB 7.4 billion in Q2, down 49% year-on-year, and the non-GAAP net margin declined to 2.1%. This near-term margin headwind mainly reflects our strategic investment in food delivery. Our last 12-month free cash flow as of the end of the second quarter was RMB 10 billion, compared to RMB 56 billion in the same period last year. This was primarily due to cash outflows associated with the trading program and the decline in operating income. By the end of Q2, our cash and cash equivalents, restricted cash, and short-term investments totaled RMB 223 billion. In summary, our second quarter performance was highlighted by robust top-line growth and healthy margin expansion of our core retail segment, reflecting our strong execution capabilities and improving operational efficiency in a dynamic market environment.

Order should 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 join the question queue again after your questions have been addressed.

Speaker #3: And non-GAAP net margin declined to 2.1%. This near-term margin headwind mainly reflects our strategic investment in food delivery. Our last 12-month free cash flow, as of the end of the second quarter, was R&B's $10 billion.

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

If you wish to cancel your request please press star two.

Youre on a speaker phone please pick up the handset to ask your question.

Speaker #3: Compared to R&B's $56 billion in the same period last year, this was primarily due to cash outflows associated with the trading program and the decline in operating income.

Your first question today comes from Ronald Keung with Goldman Sachs. Please go ahead.

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Speaker #3: By the end of Q2, our cash and cash equivalents, restricted cash, and short-term investments totaled R&B's $223 billion. In summary, our second quarter performance was highlighted by robust top-line growth and healthy margin expansion of our core retail segment.

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Speaker #3: Reflecting our strong execution capabilities, and improving operational efficiency. In a dynamic market environment, looking ahead, we're excited about our new business initiatives. And expect that it will further accelerate growth in users and shopping frequency.

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Kenneth Fong: Looking ahead, we are excited about our new business initiatives and expect it will further accelerate growth in users and shopping frequency while creating great potential for generating synergies. With the continued momentum in our core business and well-executed new initiatives, we are confident in our long-term healthy growth. With that, I will turn it back to Sean. Thank you.

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Speaker #3: While creating great potential for generating synergies, with the continued momentum in our core business and well-executed new initiatives, we're confident in our long-term healthy growth.

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Speaker #3: With that, I will turn it back to Sean. Thank you. Thank you, Ian. For the Q&A session, you're welcome to ask questions in Chinese or English, and our management will answer questions in the language you ask.

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Operator: Thank you, Ian Shan, for the Q&A session. You are welcome to ask questions in Chinese or English. We will answer questions in the language you ask. We will provide English translation for convenience purposes only. In the case of any discrepancy, please refer to the management statement in the original language. Operator, we can open the call for a Q&A session.

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Speaker #3: We'll provide English translation for convenience purpose only. In the case of any discrepancy, please refer to the management statement in the original language. Operator, we can open the call for Q&A session.

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Thank you management for taking my questions. The first is on trade in program that we've seen some temporary suspension of training program during June 18th.

Speaker #2: Thank you. 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.

Sean Zhang: Thank you. 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 join the question queue again after your questions have been addressed. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you are on a speakerphone, please pick up the handset to ask your question. Your first question today comes from Ronald Kung with Goldman Sachs. Please go ahead.

Given some uncertainty about the magnitude.

Kind of extension of the program next year and some increased competition with other platforms as well just wanted to hear what is all electronics and appliance strategy for the second half.

Speaker #2: If you have more than two questions, please join the question queue again after your questions have been addressed. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced.

Given the very very strong first half growth and next year's strategy.

Growth and market.

As your targets second as entre delivery.

Speaker #2: If you wish to cancel your request, please press *2. If you're on a speakerphone, please pick up the handset to ask your question.

This is our intense competition on the replay is a more.

As always these contest context between kind of persistent execution differentiation. So how should we think about jd's long term commitment on this.

Speaker #2: Your first question today comes from Ronald Kung with Goldman Sachs. Please go ahead.

Speaker #5: Thank you, Sandy, Ian, and Sean. Now, your Liang, good. 提问第一, 想问一下我们这个宇宙幻星, 那在618期间呢, 我们看到有一些省份就暂停了短暂的暂停了国补。那看着明年也有一些国补的一些不确定性, 呃, 还有这个其他平台也竞争也加剧了。那我们也看到这个二季度我们这个表现非常非常良利的。那想请请问管理层对这个今年下半年和明年这个带电品类的这个呃策略和觉得怎么提升这个市场份额。呃, 第二个就想问关于外卖的, 那其实现在这个三家呃还有更多的这个公司参与这个竞争的的话, 那其实呃要拼的是什么? 耐力执行力还有差异化。那呃考虑到第一现在呃第一名的其实规模最大, 那第二名呢就呃有非常呃雄厚的资金呃背景。那呃在我们来讲, 我们应该怎么思考京东的这个投入和长期的决心呢? 那作为目前第三名的话, 我们这个未来应该要持续投入一段时间, 也可能产生亏损。那我们应该怎么评估这个作为流量户口的一个获客和和cross-sell交叉的这个呃销售, 还有这个呃怎么改善这个优异。那让我翻译一下, 呃, thank you manager for taking my questions.

Ronald Kung: Thank you, Sandy, Ian, and Sean. Now, 我有两个提问。第一, 想问一下我们这个宇宙换线, 那在618期间呢, 我们看到有一些省份就暂停了, 短暂的暂停了国补。那看着明年也有一些国补的一些不确定性, 还有这个其他平台也竞争也加剧了。那我们也看到这个二季度我们这个表现非常非常亮丽的。那想请请问管理层对这个今年下半年和明年这个代电品类的这个策略和觉得怎么提升这个市场份额。第二个就想问关于外卖的。那其实现在这个三家还有更多的这个公司参与这个竞争的的话, 那其实要拼的是什么, 耐力、执行力还有差异化。那考虑到第一, 现在第一名的其实规模最大, 那第二名呢有非常雄厚的资金背景。那在我们来讲, 我们应该怎么思考京东的这个投入和长期的决心呢？那作为目前第三名的话, 我们这个未来应该要持续投入一段时间, 也可能产生亏损。那我们应该怎么评估这个作为流量入口的一个获客和 cross-sell 交叉的这个销售, 还有这个怎么改善这个 UE。那让我翻译一下。 Thank you, management, for taking my questions. First is on the trading program, that we've seen some temporary suspension of the trading program during June 18th, and given some uncertainty about the magnitude or kind of extension of the program next year and some increased competition with other platforms as well, I just want to hear what is our electronics and appliance strategy for the second half, given the very strong first half growth and next year's strategy of growth and market share targets. Second is on food delivery. This is an intense competition of three players or more. Always these contests is a contest between kind of persistence, execution, and differentiation.

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Number two with very deep pockets being a third player at this point could mean, some foreseeable loss.

Pete foreseeable period, so how do we assess the customer acquisition cross sell and the eventual path to improving economics. Thank you.

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Speaker #5: First is on trading program, that we've seen some temporary suspension of trading program during June 18th. and given some uncertainty about the magnitude or kind of extension of the program next year, and some increased competition with other platforms as well, I just want to hear what is our electronics and appliance strategy for the second half, given the very strong first half growth and next year's strategy of growth and market share targets?

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Thank you for your question rental for your first question.

During the implementation period of the Trillium program JD has demonstrated a consistently solid performance and responsiveness.

During this period during the Trillium program period.

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<unk> has made significant progress in boosting consumption and driving industry upgrades. This year. The government has also reiterated that the trillium subsidy will be continue and with central funding being distributed in batches.

Speaker #5: Second is on food delivery. This is an intense competition among three players or more. Always, these contests are a contest between kind of persistent execution and differentiation.

Speaker #5: So how should we think about JD's long-term commitment on this, and particularly competing with the number one, which has the largest scale, and number two with very deep pockets?

Ronald Kung: So how should we think about JD.com's long-term commitment on this, and particularly competing with number one, which has the largest scale, and number two with very deep pockets? Being a third player at this point could mean some foreseeable loss for a foreseeable period. So how do we assess the customer acquisition, cross-sell, and the eventual path to improving economics? Thank you.

During this period, Judy has consistently taking a proactive approach to the national policies accurately.

Speaker #5: being a third player at this point, could mean some foreseeable loss for for for foreseeable periods. So how do we assess the customer acquisition, cross-sell, and the eventual path to improving economics?

Supporting the trade in program and contributing to the effective implementation our capabilities that in April.

To achieve this improved one number one our robust supply chain capability, which ensure a stable supply of products, along with reliable fulfillment and delivery services number two our system and offline operational capabilities.

Speaker #5: Thank you.

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Speaker 7: 那中央的资金也将分批的下达。那在这个过程中呢, JD.com 也是持续响应国家的政策, 在推动政策高效落地和这个以旧换新项目中发挥了积极的作用。那这背后的驱动力包括第一个就是我们本身都有很强的供应链能力, 可以保证稳定充足的货源以及很好的履约交付的能力。另外第二个呢, 就是系统的能力和线下的运营能力, 也使得 JD.com 能够快速的跟政府去做对接, 来助力各地快速的落地以旧换新的政策。那同时呢, 我们的确也看到在 JD.com 的平台上消费者很旺盛的需求。那么 Q2 大家也看到我们带动品类的收入增速整体超过 20%。

Capabilities, which enable us to quickly coordinate with the local government and facilitate directly in the implementation of the treaty initiative across regions. Meanwhile, we have observed robust consumer demand onto the platform in Q2.

Revenue growth of our electronics and home home appliance categories.

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Speaker #3: Thank you for your question, Ronald. For your first question, during the implementation period of the trading program, JD has demonstrated a consistently solid performance and responsiveness.

Operator: Thank you for your question, Ronald. For your first question, during the implementation period of the trading program, JD.com has demonstrated a consistently solid performance and responsiveness. During this period, during the trading program period, the program itself has made significant progress in boosting consumption and driving industry upgrade this year. The government has also reiterated that the trading subsidy will be continued, and with central funding being distributed in batches. During this period, JD.com has consistently taken a proactive approach to the national policies, actively supporting the trading program and contributing to the effective implementation. Our capabilities that enable us to achieve this include one, number one, our robust supply chain capability, which ensures a stable supply of products along with reliable fulfillment and delivery services.

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Speaker #3: During this period, during the trading program period, the program itself has made significant progress in boosting consumption. And driving industry upgrade this year. The government has also reiterated that the trading subsidy will will be continued and with central funding being distributed in batches.

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Speaker #3: During this period, JD has consistently taken a proactive approach to the national policies actively supporting the trading program and contributing to the effective implementation.

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Secondly, I want to highlight that the Trillium policy itself is opportunity another competitive advantage of J D.

Speaker #3: Our capabilities that enable us to achieve this include one, number one, our robust supply chain capability which ensure a stable supplies of products along with reliable fulfillment and delivery services.

But we have a clear strategy to strengthen our market share, we focus on product price and service and leverage our supply chain capabilities.

Gail and Omnichannel expertise, we have sustained market share expression throughout Q2 and Q3 to date.

Speaker #3: Number two, our system and offline operational capabilities which enable us to quickly coordinate with the local government and facilitate the rapid implementation of the trading initiative across regions.

Operator: Number two, our system and offline operational capabilities, which enable us to quickly coordinate with the local government and facilitate the rapid implementation of the trading initiative across regions. Meanwhile, we have observed robust consumer demand on JD.com platform. In Q2, the rapid growth of our electronics and home appliance categories surpassed 20% year-on-year.

First in terms of product structure optimization, leveraging the national strategy JV partnered up with brands to accelerate product development innovation.

Speaker #3: Meanwhile, we have observed robust consumer demand on JD platform in Q2 the revenue growth of our electronics and home appliance categories surpassed 20% year-on-year.

To launch new products, such as smart home appliances and customer customized product. These efforts.

Have helped better.

Satisfied users demand and quality replacement and advances industry upgrades.

Speaker #4: 对, 但第二点呢, 我也想说就是国补它是个政策性的机遇, 但是呢, 它从来都不是我们京东的差异化竞争优势。那我们自己本来对于所有的带电品类也有明确的市占提升的策略。那我们也是围绕产品价格服务来发挥我们的供应链能力。呃, 规模优势以及全渠道的优势。那么呃, 二季度和三季度到目前为止, 我们也持续的都取得行业市占率的不断提升。那么在产品结构优化方面, 那京东我们也联合品牌方开发了一系列的智能化的呃家电家居的新品, 来推动产品升级, 做更多产品的定制化, 来更好的满足用户品质换新的需求。同时推动产业的升级。那么另外在价格的优势方面, 我们也通过规模化的采购和定制这些供应链的专业能力, 来降低采购成本, 始终致力于为用户带来更低价格和更好性价比的商品。那第三个在服务能力方面, 我们也在不断的推进送装、一体以及甚至以旧换新的这个回收的一体。那么在行业里面呢, 也提供了以旧换新最极致的服务体验。

Speaker 7: even integrated recycling for trade-ins. In the industry, we also provide the ultimate service experience for trade-ins.

In terms of price advantage, we continue to expand our price advantage by leveraging our expertise in bulk purchasing product customization and we always strive to reduce procurement costs and lowered the price for our users in terms of service capability enhancement.

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We continue to advance our integrated delivery and installation services offering the industry best trading experience.

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Speaker #3: Secondly, I want to highlight that the trading policy itself is an opportunity, not a competitive advantage of JD, but we have a clear strategy to strengthen our market share.

Operator: Secondly, I want to highlight that the trading policy itself is an opportunity, not a competitive advantage of JD.com, but we have a clear strategy to strengthen our market share. We focus on product price and service and leverage our supply chain capabilities, scale, and omnichannel expertise. We have sustained market share expansion throughout Q2 and Q3 to date. First, in terms of product structure optimization, leveraging the national subsidy, JD.com partners up with brands to accelerate product development, innovation, to launch new products such as smart home appliances and customized products. These efforts have helped better satisfy users' demand and quality replacement and advances industry upgrades. In terms of price advantage, we continue to expand our price advantage by leveraging our expertise in bulk purchasing, product customization, and we always strive to reduce procurement costs and lower the price for our users.

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Speaker #3: We focus on product price and service and leverage our supply chain capabilities. Scale and omnichannel expertise. We have sustained market share expansion throughout Q2 and Q3 to date.

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Speaker #3: First, in terms of product structure, optimization, leveraging the national subsidy, JD partners up with brands to accelerate product development, innovation, to launch new products such as smart home appliances, and customized products.

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On your second question regarding food delivery.

Speaker #3: These efforts have helped better satisfy users' demand and quality replacement. And advances industry upgrades. In terms of price advantage, we continue to expand our price advantage by leveraging our expertise in bulk purchasing, product customization, and we always strive to reduce procurement costs and lower the price for our users.

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Sure some of the highlights so again food delivery and on demand retail is a key long term strategic direction for JV with our commitment to improve on the user experience cost and efficiency, we continue to establish and enhance the operational and system capability related.

Speaker #3: In terms of service capability enhancement, we continue to advance our integrated delivery and installation services. Offering the industry best trading experience.

Operator: In terms of service capability enhancement, we continue to advance our integrated delivery and installation services, offering the industry-best trading experience.

Online retail fitness and optimize user experience.

As a shared before we have identified unmet needs across the industry.

Speaker #4: 在我长期来看呢, 京东的带电品类会持续发挥我们的供应链优势。近期推动行业升级, 进一步加强用户的心智, 我们也非常有信心可以持续保持增速好于行业。继续夯实和获得市场份额。

Speaker 7: 在我长期来看呢, JD.com的代电品类会持续发挥我们的供应链优势, 继续推动行业升级, 进一步加强用户的心智。我们也非常有信心可以持续保持增速, 好于行业, 继续夯实和获得市场份额。

Our merchant riders and users and we are effectively addressing these needs through our quality food delivery model.

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Speaker #3: So So lastly, in the long term, JD will leverage its supply chain advantages in electronics and home appliances to actively drive industry upgrade. And strengthen our user mind share.

Operator: Lastly, in the long term, JD.com will leverage its supply chain advantages in electronics and home appliances to actively drive industry upgrade and strengthen our user mindshare. We are confident in sustaining growth that is outpacing the industry, thereby solidifying and expanding our market share.

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Speaker #3: We are confident in sustaining growth that is outpacing the industry, thereby solidifying and expanding our market share.

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Speaker #4: Now,关于第二个外卖的问题呢, 这的确最近大家关注度非常高。其实我们也在不同的场合做了很多的分享。那我可能再挑几个要点讲一下。那一个呢, 这个外卖和即时零售是京东很重要的长期战略方向。那我们会始终聚焦在体验成本效率这几个方面, 去持续建设和完善所有跟即时零售, 包括外卖相关的运营和系统能力, 去不断优化我们的用户体验。那之前也分享过, 就是我们看到这个行业无论是在商家端、骑手端、用户端, 都存在呃很多痛点。那我们也正在通过我们的品质外卖的模式去更好的满足这些用户的需求。

Speaker 7: 那关于第二个外卖的问题呢,这的确最近大家关注度非常高。其实我们也在不同的场合做了很多的分享。那我可能再挑几个要点讲一下。那一个呢,这个外卖和计时零售是JD.com很重要的长期战略方向。那我们会始终聚焦在体验、成本、效率这几个方面去持续建设和完善所有跟计时零售包括外卖相关的运营和系统能力,去不断优化我们的用户体验。那之前也分享过,就是我们看到这个行业无论是在商家端、骑手端、用户端都存在很多痛点。那我们也正在通过我们的品质外卖的模式去更好地满足这些用户的需求。

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Speaker #3: On On your second question regarding food delivery, which is a heated topic that attracted a lot of attention lately, and we have shared recently some of our thoughts.

Operator: On your second question regarding JD Food Delivery, which is a heated topic that attracts a lot of attention lately, we have shared recently some of our thoughts. Here, I just want to share some of the highlights. Food delivery and on-demand retail is the key long-term strategic direction for JD.com with our commitment to improve on user experience, cost, and efficiency. We continue to establish and enhance the operational and system capability related to the on-demand retail business and optimize user experience. As I shared before, we have identified and met needs across the industry among merchants, riders, and users, and we are effectively addressing these needs through our quality food delivery models.

On JD have exceeded 150000.

Speaker #3: Here I just want to highlight share some of the highlights. So again, food delivery and on-demand retail is a key long-term strategic direction for JD, with our commitment to improve on user experience, cost, and efficiency.

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With our quarter Punctuality, and our service quality are steadily improving.

Speaker #3: We continue to establish and enhance the operational and system capability related to the on-demand retail business. And optimize user experience. As shared before, we have identified and met needs across the industry among merchants, riders, and users.

On the supply side, we focused on quality food delivery, which is.

CT and differentiation of JD delivery, we on boarded over $1 5 million high quality restaurant.

In the second quarter. Moreover, the proportion of orders from Mills continued to rise and we are helping quality restaurant achieved higher sales. We are also constantly innovating at a sort of supply chain launching a new innovative bill.

Speaker #3: And we are effectively addressing these needs through our quality food delivery model.

Speaker #4: 从二季度具体的进展来看呢, 那在骑手端我们在二季度末京东外卖的全市骑手规模已经突破了15万人。那这些的确也让全市骑手的工作更加有尊严有保障, 增加了他们的幸福感。同时也保障了我们的给用户的配送体验。以及订单准时率和服务的体验。那么在供给端方面呢, 我们更加专注品质外卖。那这个是一个比较差异化的点。那么在二季度末我们入驻的品质商家已经超过了150万家。而且品质正餐的订单占比在持续的上升。那我们也在帮助这些做好品质的餐厅获得更多的销量。那当然我们也不断的在供应链的源头上在做创新。那么最近我们也推出了七星小厨的新模式, 来帮助消费者能够这个吃到有品质又便宜的菜品。那么在系统能力上面呢, 我们的外卖研发和运营团队也在快速迭代我们的系统能力。那包括菜单系统的效率、算法提升、补贴效率、广告系统能力等等。这样这个希望能够为用户、商家和骑手提供更好的体验。

Speaker 7: 从二季度具体的进展来看呢，在骑手端，我们在二季度末JD Food Delivery的全职骑手规模已经突破了15万人。这些的确也让全职骑手的工作更加有尊严，有保障，增加了他们的幸福感，同时也保障了我们给用户的配送体验以及订单准时率和服务的体验。那么在供给端方面呢，我们更加专注品质外卖，这个是一个比较差异化的点。那么在二季度末，我们入驻的品质商家已经超过了150万家，而且品质正餐的订单占比在持续的上升，我们也在帮助这些做好品质的餐厅获得更多的销量。当然我们也不断的在供应链的源头上在做创新。那么最近我们也推出了七鲜小厨的新模式，来帮助消费者能够吃到有品质又便宜的菜品。那么在系统能力上面呢，我们的外卖研发和运营团队也在快速迭代我们的系统能力，包括派单系统的效率算法提升、补贴效率、advertising系统能力等等，希望能够为用户、商家和骑手提供更好的体验。

This model called several fresh kitchen model to help consumer enjoy quality and affordable meal in terms of system capabilities.

Our food delivery R&D and operation teams are rapidly.

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Speaker #3: Looking at some of the specific progress we made in Q2, on the rider side, at the end of Q2, the number of full-time food delivery riders on JD has exceeded 150,000. JD's full-time employment system ensures that riders can work with dignity and security.

Operator: Looking at some of the specific progress we made in Q2, on the rider side, at the end of Q2, the number of full-time food delivery riders on JD.com had exceeded 150,000. JD.com's full-time employment system ensures that riders can work with dignity and security, which in turn also enhances our delivery experience. Both our order punctuality and service quality are steadily improving. On the supply side, we focus on quality food delivery, which is an important differentiation of JD Food Delivery. We onboarded over 1.5 million high-quality restaurants in the second quarter. Moreover, the proportion of orders from meals continued to rise, and we are helping quality restaurants achieve higher sales. We are also constantly innovating at the source of supply chain, launching a new innovative business model called Seven Fresh Kitchen model to help consumers enjoy quality and affordable meals.

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Speaker #3: which in turn also enhances our delivery experience. Both our order punctuality and service quality are steadily improving. On the supply side, we focus on quality food delivery, which is an important differentiation of JD food delivery.

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Speaker #3: We onboarded over 1.5 million high-quality restaurant in the second quarter. Moreover, the proportion of orders from meals continued to rise. And we are helping quality restaurants achieve higher sales.

Okay in terms of synergy I want to emphasize that GDP theory is deeply integrated into JD overall ecosystem after more than a quarter of operation GB food delivery start to generate synergies value.

Speaker #3: We are also constantly innovating at the source of supply chain, launching a new innovative business model called Seven Fresh Kitchen model, to help consumer enjoy quality and affordable meals.

Synergistic value with our core business.

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Within our initial expectation.

Speaker #3: In terms of system capabilities, our food delivery R&D and operation teams are rapidly iterating to enhance system functionality, including order dispatching efficiency, algorithm improvement, subsidy efficiency, and the advertising system.

Operator: In terms of system capabilities, our food delivery R&D and operation teams are rapidly iterating to enhance system functionality, including order dispatching efficiency, algorithm improvement, subsidy efficiency, and the advertising system to provide a better experience for users, merchants, and riders.

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Speaker #3: To improve and provide a better experience for users, merchants, and riders.

These include new food delivery user cross buying e-commerce product and the improvement in shopping frequency among existing users.

Speaker #4: 对, 然后关于协同效应的问题呢, 我想再次强调, 这是我们的外卖业务还是深植于京东整体的业务生态。那么经过一个多季度的运营, 正在与我们的核心电商业务产生协同价值。而这也符合我们最初的预期。那么首先我们也看到这个外卖也为京东带来了明显的流量和用户增长。那么在二季度用户的活跃度、用户数、购物频次等, 都出现了大幅提升。那么第二个呢, 就是外卖用户购买我们的核心电商品类的转化率也在持续提升。那么这个尤其是在商超等品类, 就很自然的看到大量的交叉购买。而我们的业务团队呢, 也在更大力度的来推动内部的协同。那么在二季度我们也建设了一些算法方面的系统方面的交叉推动交叉购买的能力。那么在三季度呢, 这些工具也会陆续的上线。那第三呢, 就是在外卖的这个和零售, 我们在整体的市场投放和营销费用上也有很大的协同空间。那我们团队也会整体来权衡各个不同渠道的投放的ROI, 来提升我们整体的营销效率。

Speaker 7: and retail. Our team will collectively weigh the ROI of different channels to improve our overall marketing efficiency.

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Speaker #3: Okay, in terms of synergy, I want to emphasize that JD food delivery is deeply integrated into JD overall ecosystem. After more than a quarter of operation, JD food delivery starts to generate synergies synergistic value with our core business.

Operator: Okay. In terms of synergy, I want to emphasize that JD Food Delivery is deeply integrated into JD overall ecosystem. After more than a quarter of operation, JD Food Delivery starts to generate synergistic value with our core business. This is within our initial expectation. First, JD Food Delivery is driving notable traffic and user growth in Q2. DAU of JD app and QAC, as well as user engagement, all have improved significantly, as well as shopping frequency. The conversion rate of food delivery user purchasing B2C e-commerce products is steadily increasing. This includes new food delivery user cross-buying e-commerce products and the improvement in shopping frequency among existing users. We have observed strong cross-selling that is taking place. We aim to enhance this synergy as we develop several capacities in Q2, which will be launched in the third quarter.

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Speaker #3: This is within our initial expectation. First, JD food delivery is driving notable traffic and user growth in Q2. DAU of JD app and QAC, as well as user engagement, all have improved significantly with as well as shopping frequency.

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Speaker #3: The conversion rate of food delivery user purchasing B2C e-commerce product is steadily increasing. This includes new food delivery user cross-buying e-commerce products and the improvement in shopping frequency among existing users.

Regarding the long term unit economic improvement we have noticed.

The competition start to intensify.

Since July.

But we are focusing we're currently focusing on improving the.

Speaker #3: So we have observed strong cross-selling that is taking place. We aim to enhance this synergy as we develop several capacity in Q2, which will be launched in the third quarter.

Plus loan system enhancing experience of user merchants and riders.

The yield to delivery of JD is gradually improving.

Moving forward.

We don't believe the low quality competition create any value to the industry. So we'll be focusing on more refined subsidy strategy tailored to different regions and user group and.

Speaker #3: Furthermore, there is also synergy potential between food delivery and retail business in terms of marketing spending. Our team will evaluate the ROI across different marketing channels and boost overall marketing efficiency.

Operator: Furthermore, there is also synergy potential between food delivery and the retail business in terms of marketing spending. Our team will evaluate the ROI across different marketing channels and boost overall marketing efficiency.

To improve the fulfillment efficiencies fueled by economic scale enhanced system capability.

Speaker 7: 对, 还有一个关于。长期优异改善的问题啊,

Collectively to improve the profitability of our food delivery business in the long term, we don't we view this business.

Sandy Xu: 大家的确也看到，7月以来行业的竞争在加剧。从 JD.com 的角度，我们觉得这些过度竞争的行为并没有产生模式的创新，也不给行业产生增量的价值，反而在一定程度上会扰乱行业的价格体系，也给商家带来了很多困扰。因此它是不可持续的。现阶段，我们更多的精力还是在完善我们的平台系统，提升我们用户、商家和骑手的体验。我们也看到我们自己外卖业务的盈利正在逐步改善。接下来，包括针对不同地域和用户群体更加精细的促销策略，规模效率所带动履约效率的提升，还有系统能力的提升，都将带动外卖业务自身的盈利能力的提升。长期来看，我们做外卖业务之前也讲过，我们追求的不是一个月、两个月的成绩，而是我们希望能够长期做下去，5年、10年、20年。所以我们追求的是可持续发展的商业模式。外卖也会逐渐释放规模效应来改善效率。同时我们也会持续释放外卖和我们核心零售业务之间的巨大的协同潜力，为整个集团长期健康的增长来提供动力。

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Thank you Ronald candidate and take the next question.

Thank you. Your next question comes from Kenneth Fong with UBS. Please go ahead.

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Sean Zhang: Regarding the long-term unit economic improvement, we have noticed the competition starts to intensify since July. We are currently focusing on improving the platform system and enhancing the experience of users, merchants, and riders. The UE of JD Food Delivery is gradually improving. Moving forward, we do not believe the low-quality competition creates any value to the industry. We are focusing on a more refined subsidy strategy tailored to different regions and user groups to improve the fulfillment efficiency fueled by economic scale and enhanced system capability collectively to improve the profitability of our food delivery business. In the long term, we view this business as a long-term business initiative on JD.com. This is a 5, 10, even 20-year initiative. This is not a one-month, one-quarter, or two-quarter kind of business model.

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Thank you management Board forgive my question.

My first question is about the investment in new business management mentioned that we have a series of new business initiatives to invest in.

Can management share the ultra direction and strategy for this new personal investment.

From a financial perspective.

How would this affect your revenue growth in our public targets and how should we think about the impact if any to the shareholder return policy, including dividends and then share repurchase and my second question is about the shrunk drove up behind the general merchandise categories. We noticed that these categories have shown a.

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And basically share the drivers behind is a sustainability going forward. Thank you.

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Sean Zhang: The food delivery business will gradually leverage economic scale to boost efficiency, and we will continue to unlock the huge synergetic potential between food delivery and the core retail business to support the company's long-term healthy growth. Thank you, Ronald. We can take the next question.

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Operator: Thank you. Your next question comes from Kenneth Fong with UBS. Please go ahead.

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Sean Zhang: 嗨, 呃, 我是李东, 呃, 是我晚上好, 谢谢接受我的提问。啊, 我有两个问题。啊, 呃, 第一个是关于这个新业务的投入的, 呃, 管理层也提及将来会有一系列的创新业务的投入, 呃, 可否透露一下这些新业务的投入的方向以及策略呢? 呃, 从财务方面集团如何平衡啊增长以及利润的目标? 这些投入会否影响公司对股东的回馈的目标, 包括派息啊回购计划等等? 啊, 第二个是关于日白的, 呃, 我们日白品类已经连续好几个季度保持一个非常强劲的增长, 呃, 管理层可否也分享一下背后核心的驱动因素, 呃, 以及将来的可持续性呢? 谢谢, 我继续翻译一下. Thank you, management, for taking my question. My first question is about the investment in new business. Management mentioned that we have a series of new business initiatives to invest in. Can management share about the direction and strategy for this new business investment? From a financial perspective, how would this affect the revenue growth and our profit targets? How should we think about the impact, if any, to the shareholder return policy, including dividend and then a share repurchase? My second question is about the strong growth behind the general merchandise categories. We noticed that these categories have shown a few consecutive quarters of very robust growth. Can management share the drivers behind and its sustainability going forward? Thank you.

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Uh thank you management for taking my question. Uh, my first question is about the investment in new business, uh, management mentioned that we have a series of new business initiatives to invest in um Can management. Share the thought of Direction and strategy for this new business investment. Uh, from a financial perspective, how would this affect the revenue growth and our profit targets and, um, how should we think about the impact? If any to the shareholder return policy, uh, including dividends, and

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The share repurchase, and my second question is about the strong growth behind the general merchandise categories. We noticed that these categories have shown a few consecutive quarters of very robust growth. Could management share the drivers behind this and the sustainability going forward? Thank you.

Sandy Xu: 谢谢 Kenny 的提问。我先来回答关于新业务的问题。我们内部在讨论创新业务的时候，其实它有两类。一类是商业模式的创新。另外一类创新是利用新的或者说创新的技术来改善现有的业务模式。所以目前我们的投入比较大的新业务模式其实就是大家看到的，外卖业务，还有 Jingxi 国际业务等等。这些是新的业务模式。第二种是在我们现有业务中去应用所有的新技术。其实现在也是一个非常重要的时代和机遇。我们其实这一类型的创新在集团内部是非常非常多的，几乎在每一个业务板块里面都有数不清的创新的项目在推进。这也包括比如说我们 AI 技术在我们零售业务当中的应用，物流的自动化，无人设备仓库自动化程度的进一步的提升等等。从集团的角度，我们也鼓励每一个岗位的同事都要有创新精神，必须要去拥抱创新。另外第二个是我们的内部创新整体都是围绕着供应链来展开的。这些新业务的探索也都是通过我们的差异化的供应链优势和能力，以提升用户体验为核心。其实都是我们核心业务的自然延伸。当然除了国内的市场之外，国际化也一直都是 JD.com 的重要战略，我在开头也讲过。我们也希望能够构建起覆盖全球的更高效的零售与物流履约网络，来为全球的消费者带来极致的购物体验，成为全球领先的零售商。当然这是一个长期的目标。我们相信所有这些无论是新业务也好，新业务模式也好，还是新的技术应用的探索和投入，都会进一步加强 JD.com 的供应链优势和提升用户的体验，来啊实现长期的健康增长。过往我们的 Check Record 其实已经证明过很多次，我们也会关注投入效率和可持续的增长。所以对于一些新的业务模式，我们也会本着小步快跑的模式去探索和去驱动创新业务的发展。

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Thank you for your question, let me first address your question regarding the strategy the <unk> strategy of for new business initiatives within <unk>.

We look at new business in terms of innovation of business model adoption of new technology.

So as you have observed.

JD continue to explore and innovate.

In new directions, with synergetic potential with our current core business.

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At the same time, we are boosting innovation.

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This exploration are a natural extension of <unk> core business.

Both domestically and internationally, we are committed to deepen our presence in.

The retail market by continuously enhance our existing business capability, while exploring on demand retail and <unk>.

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Time, as China largest retailer international expansion has always been a key strategy for JD and we aim to build a more efficient global retail network to provide.

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Sean Zhang: Thank you for your question, Kenny. Let me first address your question regarding the strategy, JD.com's strategy for new business initiatives. Within JD.com, we look at new business in terms of innovation of business model, adoption of new technology. As you have observed, JD.com continues to explore and innovate in new directions with synergetic potential with our current core business. In terms of new business model, I can name JD Food Delivery, JD International, and Jingxi Business are the innovation of business model. At the same time, we are boosting innovation by new technology and increasing in various business scenarios, such as, for example, the adoption of AI across various business scenarios. The example is logistics automation equipment and warehouse automation. We believe we are in the great era of technological development, so JD.com must fully embrace innovation.

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And exceptional shopping experience for consumers worldwide and become a leading global retailer. This is a long term goal.

We believe that this new business.

Exploration and investment will further strengthen <unk> supply chain advantage and enhanced user experience driving continued growth in our user base and user engagement. This gave us the confidence in achieving a sustainable positive cycle of scale growth efficiency improvement and.

thank you for your question. Can you let me first address your question regarding the strategy, JD strategy of, uh, for new business initiative? So within JD, uh, we look at, uh, new business. In terms of innovation, of business model, adoption of new technology. Um, so as you have observed, um,

JD continue to explore and innovate uh, in New Directions, with the synergetic potential with our current Core Business.

Um,

Prop increase steady progressing towards our long term profitability goals to do track record has repeatedly demonstrated that our commitment to invest.

In efficiency.

Two investment in efficiencies and this will remain unchanged.

We always adopt a small step quick progress kind of approach to explore and drive development of innovative business.

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Sean Zhang: We have numerous internal innovation projects, and we are encouraging every team of JD.com to embody a spirit of innovation. JD.com's internal innovation are also centered around supply chain, leveraging our unique supply chain advantage and capability to enhance user experience is always our core focus. These explorations are a natural extension of JD.com's core business, both domestically and internationally. We are committed to deepen our presence in the retail market by continuously enhancing our existing business capability while exploring on-demand retail and expanding into low-tier markets. At the same time, as China's largest retailer, international expansion has always been a key strategy for JD.com, and we aim to build a more efficient global retail network to provide an exceptional shopping experience for consumers worldwide and become a leading global retailer. This is a long-term goal.

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So in terms of new business model, uh I can name JD food delivery, JD International and uh, international business and jingi business are the innovation of, uh, business model. Um, at the same time, we are boosting Innovation. Uh, by new technology increasing. Uh, uh, uh, in various business scenarios such as, uh, for example, the adoption of AI across various business scenarios. Um, the example is nman logistic equipment and Warehouse automation, uh, we believe, we are in the Great era of technological development. So GD, Mark, fully embraced Innovation. We have numerous internal, uh, Innovation projects and we are encouraged. We are encouraging every team of JD uh to embody a spirit of innovation.

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Leveraging our unique supply chain advantage and capability to enhance user experience is always our core focus.

Um,

this exploration are a network extension of JD's Core Business.

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While we actively explore new business opportunities, we will continue to create value and return to our shareholders.

First in the first half of this year.

Our total share repurchase valued add compared to 1.5 billion USD and there are recurring to 5 billion share repurchase program and the remaining amount was three points or 5 billion USD as they take over this announcement.

A leading Global retailer. This is a long-term goal.

Sean Zhang: We believe that this new business exploration and investment will further strengthen JD.com's supply chain advantage and enhance user experience, driving continued growth in our user base and user engagement. This gives us the confidence in achieving a sustainable positive cycle of scale growth, efficiency improvement, and profit increase, steadily progressing towards our long-term profitability goals. JD.com's track record has repeatedly demonstrated that our commitment to investment efficiencies, and this will remain unchanged. We always adopt a small step, quick progress kind of approach to explore and drive the development of innovative business.

Um,

Secondly, we have a paid out in cash dividends to our shareholders for four consecutive years.

we believe that this new business,

April we completed the payment of a balance of one point to four 4 billion USD annual cash dividend for the year of 'twenty 'twenty four and we will continue to do so going forward.

We will return to our shareholders through growth dividends and share buybacks going forward.

Lastly, we will also strengthen our execution on our core vision.

And to proactively take on new growth opportunities, we aim to build a successful.

Exploration and, uh, investment will further strengthen GD, supply chain advantage and enhance user experience driving, uh, continued growth in our user base and user engagement. This gave us the confidence in achieving. A sustainable positive cycle of scale. Growth, efficiency Improvement and profit increase steady progressing towards our long-term profitability goals. Did you track record has repeatedly demonstrated that our commitment to invest?

Business model for the long term driving steady sustainable growth in revenues and profits along the way and sharing our business success with all of our shareholders.

Uh, in terms of efficiency, uh, to investment efficiencies, this will remain unchanged. We always adopt a small step, quick progress kind of approach to explore and drive the development of innovative business.

Ian Shan: $5 billion的回购计划剩余 $3.5 billion的额度。第二, JD.com已经连续四年分红。今年 April完成了 2024年度的现金股利派发, 约 $1.44 billion。接下来也会持续进行年度分红。未来我们会继续通过增长、分红和回馈股东。最后, 我们将持续深耕核心业务, 积极投入开拓新的增长曲线, 构建长期可持续增长的商业模式, 推动公司实现收入和利润的长期稳健增长, 并持续和股东共享 JD.com在业务发展的成功。

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Regarding the second question about our general merchandise category.

Uh, know it's easy.

Have notice in Q2.

For.

General merchandise revenue growth.

Has recorded four consecutive quarter of steady acceleration.

The major categories supermarket category.

Which is the largest contributor to the GM revenue has maintained a double digit growth for six consecutive quarter. This is primarily due to our team's continuous effort to enhance operational capability over the past two years. We believe this will continue to drive the steady growth of our supermarket.

Sandy Xu: Okay. While we actively explore new business opportunities, we will continue to create value and return to our shareholders. First, in the first half of this year, our total share repurchase valued at about $1.5 billion. Under our current $5 billion share repurchase program, the remaining amount was $3.5 billion as of the date of this announcement. Secondly, we have paid out cash dividends to our shareholders for four consecutive years. This April, we completed the payment of about $1.44 billion annual cash dividend for the year of 2024, and we will continue to do so going forward. We will return to our shareholders through growth, dividends, and share buybacks going forward. Lastly, we will also strengthen our execution of core business and proactively take on new growth opportunities.

Okay.

No, we actively explore new business opportunities. We will continue to create value and return to our shareholders.

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In the first half of this year, our total share repurchases valued at about $1.5 billion, and our current $5 billion share repurchase program has a remaining amount of $3.5 billion as of the date of this announcement.

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Secondly, we have a paid out cash. Dividends to our shareholders for 4 consecutive years. This April, we completed the payment of about 1.44 billion USD annual cash dividend for the year of 2024 and we will continue to do so going forward.

We will return to our shareholders through growth dividends and share, BuyBacks going forward.

No.

Sandy Xu: We aim to build a success, a business model for the long term, driving steady, sustainable growth in revenues and profits along the way, and sharing our business success with our shareholders. 那关于第二个问题是日白品类, 那大家也看到我们日白品类收入已经连续四个季度在稳健加速, 那其中贡献最大的商超品类已经连续六个季度实现了双位数增长。那这里面主要的驱动因素还是我们采销团队这两年在不断强化自己的经营能力, 而我们也坚信这将持续推动我们商超品类的稳健增长。

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Lastly, we will also strengthen our execution of core businesses and proactively take on new growth opportunities. We aim to build a success, a business model for the long term driving steady, sustainable growth in revenues and profits along the way. And sharing our business success with our shareholders.

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Sean Zhang: Regarding your second question about our general merchandise category, as you have noticed, in Q2, the general merchandise revenue growth has recorded four consecutive quarters of steady acceleration. The major category, supermarket, which is the largest contributor to the GM revenue, has maintained a double-digit growth for six consecutive quarters. This is primarily due to our team's continuous effort to enhance operational capability over the past two years. We believe this will continue to drive the steady growth of our supermarket business.

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Uh, regarding the second question about our general merchandise category, as you have noticed in Q2, general merchandise revenue growth.

Yes.

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So.

Moving forward JD supermarket will continue to enhance in the following areas.

The first one is the <unk> model, which represents our unique business model and distinctive.

Capability, we can further reduce procurement cost improve supply chain efficiency and offer a better product and lower price to our user second.

Sandy Xu: JD.com 特有的业务模式和差异化的能力。那我们也可以通过这个模式不断降低采购成本, 提升供应链效率, 为用户带来更好的商品和更低的价格。那么第二点呢, 是提升用户的转化。那目前我们也初步看到外卖的用户在 supermarket 品类的跨品类购买。那么面对外卖给我们带来的巨大流量, 那 JD.com 的 supermarket 品类也将优化自己的运营, 更好的来承接这些外卖用户的需求。那么这里我也想再补充讲一讲计时零售。那么我们对整个 JD.com supermarket 品类的运营优势很有信心, 也将抓住这个机遇。那么计时零售我们认为是各类消费场景的一种补充。那它可以满足用户对于应急性商品的需求, 但是在产品丰富度的性价比上呢, 那核心电商的原来我们的这种传统的核心电商业务还是有更大的优势。所以在整个的零售大盘中呢, 我们认为计时零售是以是核心电商或者说整个零售业务一个比较好的补充。那么 JD.com 的我们的 supermarket 品类或者说 supermarket 团队也将积极的布局, 其实零售进一步丰富用户多场景的需求, 但同时在核心电商业务之间我们持续的去提高和加强我们的经营能力。那么长期看我们对日白品类的持续的增长充满信心。那这些品类呢在今年的增长大家可以看到, 这是在没有国补的影响下做出来的业绩。那它的核心得益于还是我们团队的经营能力的提升, 那这将成为我们长期的增长驱动力。

Uh, has recorded four consecutive quarters of steady acceleration. Um, the major category Supermarket, uh, which is the largest contributor to the GM Revenue, has maintained a double-digit growth for six consecutive quarters. Uh, this is primarily due to our team's continuous effort to enhance operational capability over the past two years. We believe this will continue to drive the static growth of our Supermarket business.

We aim to improve user conversion, we have observed initial cross sell by food delivery user in supermarket category.

To embrace the massive traffic generated by food delivery service.

TD supermarket team will implement refine operational strategy, including optimized product recommendation and marketing campaign to better meet these user needs.

I also want to share some view in term to address the on demand retail opportunity, we maintain strong confidence in JD supermarket operational strengths and we will.

For.

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We will also aim to seize the opportunity of on demand and retail.

We recognized on demand retail.

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Channel addressing specific urgent needs.

<unk> currently has the mutation in product variety and cost effectiveness compared to the traditional PTC e-commerce in the broader retail market into retail remain a relatively small segment.

These supermarket will strategically expand into on demand retail to fulfill diverse come consumption use case.

Particularly for the time sensitive categories, but we'll always focus on building the core e-commerce operational capabilities.

We remain confident in the sustained robust growth of our general merchandise category. This year. The growth of this category has been achieved without the impact of Trillium subsidy and is primarily driven by the enhanced capability of our team.

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Sean Zhang: Moving forward, JD Supermarket will continue to enhance in the following areas. The first one is the 1P model, which represents our unique business model and distinctive capability. We can further reduce procurement costs, improve supply chain efficiency, and offer better products at a lower price to our users. Second, we aim to improve user conversion. We have observed initial cross-sell by food delivery users in the supermarket category. To embrace the massive traffic generated by food delivery, JD Supermarket team will implement refined operational strategies, including optimized product recommendations and marketing campaigns to better meet these user needs. I also want to share some view to address the on-demand retail opportunity. We maintain strong confidence in JD Supermarket operational strengths, and we will also aim to seize the opportunity of on-demand retail. We recognize on-demand retail serves as a complementary channel addressing specific urgent needs.

Competition in this category as a key growth driver for our business going forward.

Okay. Thank.

Thank you we can take the next question.

Thank you. Your next question comes from Joyce Ju with Bank of America. Please go ahead.

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The, uh, so moving forward, JD Supermarket will continue to enhance in the following areas. Uh, the first 1 is the 1 P model, which represents our unique business model and distinctive. Uh, capability. We can further reduce procurement costs improve supply, chain efficiency, and offer better products at lower price to our user second. Uh, we aim to improve user conversion, we have observed initial cross, sell buy food, delivery user, in Supermarket category, uh, to embrace the massive, uh, traffic generated by food delivery. Uh, DD Supermarket team will Implement refined operational strategy, including optimized product recommendation and marketing campaign to better meet these user uh needs

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I will translate my question. My first question is on user and traffic trends.

Company source of potential user and traffic growth in the second quarter could management share more colors on user profiles behaviors at retention and also user growth strategies and targets to your route.

I also want to share some view uh, in terms uh to address the on demand retail, uh, opportunity. We maintain strong confident in JD Supermarket operation strength and we, uh, we will also aim to see if the opportunity of on demand retail. Um, we recognize on demand retail. Uh, serve as a comp um uh complimentary um, Channel.

Sean Zhang: It currently has limitations in product variety and cost effectiveness compared to the traditional B2C e-commerce. In the broader retail market, instant retail remains a relatively small segment. JD Supermarket will strategically expand into on-demand retail to fulfill diverse consumption use cases, particularly for the time-sensitive categories, but will always focus on building the core e-commerce operational capabilities. We remain confident in the sustained robust growth of our general merchandise category. This year, the growth of this category has been achieved without the impact of trade-in subsidies, and it is primarily driven by the enhanced capability of our team, positioning this category as a key growth driver for our business going forward. Thank you. We can take the next question.

My second question is on bottom line.

How does management budget investments for growth opportunities and how shall we expect margin and profits for the next couple of years and even like the company's.

Company's profitability trend over the longer time, thank you very much.

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Addressing specific urgent needs is currently has limitation in product variety and cost, Effectiveness compared to the traditional b2c. E-commerce in the broader retail Market. Instant retail remain, a relatively small segment, JD Supermarket will strategically expand into OnDemand, retail to fulfill diverse, uh, consumption use case, uh, particularly for the time sensitive categories, but we will always focus on building the core e-commerce operational capabilities

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Uh, we remain confident in the sustained. Robust growth of our general merchandise category this year, the growth of this category has been achieved without the impact of treating, subsidy and is primarily driven by the enhanced capability of our team. Um, positioning this category as a key growth driver for our business going forward.

Okay. Um, thank you, we can take the next question.

Operator: Thank you. Your next question comes from Joyce Zhu with Bank of America. Please go ahead.

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Thank you. Your next question comes from Joyce Stew with Bank of America. Please, go ahead.

Sandy Xu: 哎, 呃, Sandy Xu, Ian Shan, 晚上好。祝贺公司本季度增长持续加速, 也感谢接受我的提问。我的第一个问题是关于用户趋势的。受益于我们不断提升的服务, 包括外卖啊, 国补, 我们看到 JD.com 这个平台这个季度的活跃用户和流量都取得了非常亮眼的成长。想麻烦管理层就用户增长趋势, 还有新用户的画像, 行为习惯, 包括留存, 给我们做一些分享, 以及公司下一步的用户增长策略和长期目标是什么样的。然后我的第二个问题呢, 是想了解一下在讨论增长战略的同时, 管理层是怎么看我们公司未来几年的盈利水平, 还有利润率的。我们应该怎么样去理解这个预期, 包括长期趋势。非常感谢。 I will translate my questions. My first question is on user and traffic trends. JD.com saw substantial user and traffic growth in the second quarter. Could management share more colors on user profiles, behaviors, and retentions, and also user growth strategies and targets down to the road? My second question is on bottom line outlook. How does management budget investment for growth opportunities, and how should we expect margin and profit for the next couple of years, and even like in the company's profitability trend over the longer term? Thank you very much.

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For your first question in Q2, we saw strong user growth with core.

<unk> active customers and shopping frequency both up over 40% year on year. This marks the most robust user momentum we've seen in recent years.

Our core retail business has seen improvement in user acquisition and the retention, primarily driven by our low price strategy and platform based on development over the past two years. These efforts haven't really reached a report back to supply and enhance the user experience.

Moreover, improvement user conversion efficiency, coupled with our efforts to create more engaging content.

And other operational refinements have further support attract.

Uh, I will translate my questions. My first question is on user and traffic Trends, um, company Source, substantial user and traffic growth. In the second quarter, uh, could management share more colors on user profiles, behaviors and retentions, and also user growth strategies and targets down to the road. Um, my second question is on bottom line Outlook. Uh, how does management uh, budget investment for growth opportunities? And how should we expect margin and profit, uh, for the next couple years and even like, you know, the con uh, company's profitability Trend over the longer term. Thank you very much.

Sean Zhang: Food Delivery 上线不到半年的时间快速起量，已经对 JD.com 整体的流量、用户还有频次带来新的增长的驱动力。JD Food Delivery 也给我们带来了更多的年轻用户，并且对 Plus 的会员的拉动更加明显，Q2 Plus 会员的购评同比增长超过 50%。我们会加快 JD Food Delivery 向即时零售和 B2C 电商的交叉销售，包括针对老用户的促活和新用户的电商的转化，带动 JD.com 整体购物用户数和购评的快速增长。

Attraction and retention.

Helpful.

On the other hand, JD food delivery has achieved a rapid growth within less than six months of its launch providing new growth and momentum for user traffic activity users and user shopping frequency on Jd's platform food delivery business has brought to an increasing number of.

Young users.

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Over 50% year on year in Q2.

We will continue to accelerate cross selling from food delivery to on demand retail on a b to C e-commerce, including efforts to enhance engagement existing users and convert new users to our e-commerce offerings, thereby driving rapid growth in <unk> or.

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Sandy Xu: For your first question, in Q2, we saw strong user growth with quarterly active customers and user shopping frequency, both up over 40% year on year. This marks the most robust user momentum we've seen in recent years. On one hand, our core retail business has seen improvements in user acquisition and retention, primarily driven by our low-price strategy and the platform system development over the past two years. These efforts have enriched our product supplies and enhanced the user experience. Moreover, improvements in user conversion efficiency, coupled with our efforts to create more engaging content and other operational refinements, have further supported user attraction and retention. On the other hand, JD Food Delivery has achieved rapid growth within less than six months of its launch, providing new growth momentum for user traffic, active users, and user shopping frequency on JD.com's platform.

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As we continue to focus on enhancing user experience lowering cost and driving greater efficiency, we see great potential for improvement in areas such as user scale diversify the survey scenarios, a wider range of product and service offerings and our ability to offer higher quality.

Uh, for your first question, in Q2, we saw strong user growth with quarterly active customers and you shopping frequency both up over 40% year on year. These marks the most robust user momentum. We've seen in recent years

Services travel users.

They have been making strategic investments in these areas to deliver long term sustainable growth.

Our user base and user value.

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On 1 hand. Our core retail business has been improvements in user acquisition and retention primarily driven by our low price strategy and the platform system development over the past 2 years, these efforts have enriched our product supplies and enhance the user experience. Moreover improvements in user conversion efficiency, coupled, with our efforts to create more engaging content and other operational refinements have further supported either attraction and retention on our platform.

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For your question about the profitability.

Sandy Xu: Food delivery business has brought in an increasing number of young users and significantly boosted JD Plus members' shopping frequency by over 50% year on year in Q2. We will continue to accelerate cross-selling from food delivery to on-demand retail and B2C e-commerce, including efforts to enhance engagement with existing users and convert new users to our e-commerce offerings, thereby driving rapid growth in JD.com's overall user base and user shopping frequency.

On the other hand, JD food delivery has achieved rapid growth within less than 6 months of its launch providing new growth momentum for user traffic. Active users and user shopping frequency on JD's platform.

<unk> profit margin may fluctuate with industry dynamics, and our investment pace in the short term. However, our long term goal to achieve high single digit profit margin remains unchanged, especially the profit margin of our core retail business has been very healthy chunk.

Food delivery business has brought in an increasing number of young users and significantly boosted JD Plus members shopping frequency by over 50% year-on-year in Q2.

We will continue to accelerate quality from food, delivery to OnDemand, retail and b2c e-commerce.

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Sean Zhang: 长期来看, JD.com的目标始终是为全中国10亿的电商用户提供更优质的购物体验, 并在供应链里实现更低的成本和更高的效率。因此我们看到在用户数、规模、服务用户的多样化场景、商品和服务类目以及服务用户的能力上面都还有很大的提升的空间。我们也在持续做相关的投入, 驱动JD.com的用户规模和用户价值的长期可持续的增长。

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The drivers of our core retailers. The profit expansion include first increased supply chain efficiency, which has been reducing costs and improving efficiency for both upstream and downstream players along the supply chain and as at the same time driving improvements in our own profits.

Sandy Xu: Looking at the long term, JD.com's goal is to serve the 1 billion e-commerce users in China. As we continue to focus on enhancing user experience, lowering costs, and driving greater efficiency, we see great potential for improvement in areas such as user scale, diversified service scenarios, a wider range of product and service offerings, and our ability to offer higher quality services to our users. We have been making strategic investments in these areas to deliver long-term sustainable growth in our user base and user value.

Including efforts to enhance engagement with existing users and convert new users to our e-commerce offerings. Thereby driving rapid growth in JD's overall user base and user shopping frequency.

Including higher growth and margin of our product sales as well as logistics cost reductions and efficiency gains.

That's our profitability across categories. For example, our supermarket category still has a lot of room to improve its margin performance and our well established categories, such as electronics and home appliances also have a potential for margin improvement third development of Ara.

Surveys to our users.

We have been making strategic investments in these areas to deliver long-term sustainable growth in our user base and user value.

Sean Zhang: 关于盈利的问题，JD.com短期的利润率可能会随着行业竞争，以及自身业务的投入节奏出现波动。但我们的长期利润率达到高个位数的这个目标是坚定不变的，特别是核心JD Retail业务的利润率趋势非常健康。

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Sandy Xu: For your question about profitability, JD.com's profit margin may fluctuate with industry dynamics and our investment pace in the short term. However, our long-term goal to achieve high single-digit profit margin remains unchanged. Especially the profit margin of our core retail business has been on a very healthy trend.

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For your question about profitability, DD's profit margin may fluctuate with industry dynamics, and our investment pays off in the short term. However, our long-term goal to achieve a high single-digit profit margin remains unchanged. Especially the profit margin of our core retail business has been on a very healthy trend.

Sean Zhang: term, commission and advertising revenue will also maintain rapid growth, bringing continuous improvement in profit margins.

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Regarding our thoughts on new business environment, we aim to unlock greater greater growth potential with the new opportunities. We are confident this will drive long term growth in users ANV and profits. The early stage investment will impact JD group gross margin.

The short term, but in the long term the new businesses will gradually evolving into new growth drivers, creating greater synergies with our core business and ultimately enhancing our profitability in the <unk>.

Sandy Xu: Our drivers of our core JD Retail's profit expansion include first, increased supply chain efficiency, which has been reducing cost and improving efficiency for both upstream and downstream players along the supply chain, and at the same time, driving improvements in our own profits, including higher growth margin over product sales, as well as logistics cost reductions and efficiency gains. Second, better profitability across categories. For example, our supermarket category still has a lot of room to improve its margin performance, and our well-established categories, such as electronics and home appliances, also have potential for margin improvement. Third, development of our 3P ecosystem. As the proportion of our 3P business goes up over time, marketplace and marketing revenue will also have rapid growth, which will benefit our margin performance.

For.

Process, where we're also focused on our strategies and that's a really disciplined and focused on ROI, we will maintain flexibility to balance our efforts and inputs based on actual results.

Thank you Joyce.

Take the last question please.

Thank you your last question come from Thomas Chong with Jefferies. Please go ahead.

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Uh, the drivers of our core retails profit expansion include first increased supply chain efficiency, which has been reducing cost and improving efficiency for both upstream and downstream players along the supply chain. And at the same time, driving improvements in our own profits, including higher growth margin of a product sales as well as Logistics cost, reductions and efficiency gains second better profitability across categories. For example, our Supermarket category still has a lot of room to improve its margin performance and our well-established categories such as electronics and Home, Appliances also have a potentials for margin Improvement.

Third, development of our 3p ecosystem as the proportion of our 3p. Business goes up over time Marketplace and marketing, Revenue will also have rapid growth, which will benefit our margin performance.

So it's a much different here.

Sean Zhang: 在新业务的投入上，我们的思考是，核心是为了 JD.com 进一步突破增长的天花板，打开更大的增长空间。我们相信会带来用户 GMV 和利润的长期增长。那前期投入布局的周期会短期影响集团的利润率。长期来看，新业务会逐步转化成新的增长的驱动力，产生于核心业务更大的协同价值，最终产生更大的利润空间。那在投入的过程当中，我们会持续关注投入的策略，保持投入的纪律性，关注回报率 ROI，然后根据效果动态平衡。

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Sandy Xu: Regarding our thoughts on new business investment, we aim to unlock greater growth potentials within new opportunities. We are confident this will drive long-term growth in users, GMV, and profits. The early-stage investment will impact JD Group's margin in the short term, but in the long term, the new businesses will gradually evolve into new growth drivers, creating greater synergies with our core business and ultimately enhancing our profitability. In the process, we will also focus on our strategies, invest with discipline, and focus on ROI. We will maintain flexibility to balance our efforts and inputs based on actual results.

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Regarding our response on new business investment. We aim to unlock greater uh greater growth, potentials within New Opportunities. We are confident. This will drive long-term growth in users jmv and profits. The early stage investment will impact GD, growth margin in the short term. But in the long term, the new businesses will gradually involve into New Growth drivers, creating greater synergies with our Core Business and ultimately enhancing our profitability, uh, in the process. We will also focus on our strategies invest with discipline and focus on Roi. We will maintain flexibility to balance our efforts and

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Sean Zhang: Thank you, Joyce. Let's take the last question, please.

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Thank you, Joyce. Let's take the last question, please.

Operator: Thank you. Your last question comes from Thomas Chung with JFreeze. Please go ahead.

We plan our team for the consumer, but that's as a potent.

Thank you, your last question.

Wrong with Jeffrey. Please go ahead.

Ian Shan: 晚上好, 谢谢管理层接受我的提问。我的问题是关于JD.com在海外业务扩张未来几年的战略。管理层可不可以分享一下我们收购Ceconomy的逻辑? Thanks management for taking my question. My question is about our overseas expansion. Can management share our thoughts about the next few years' strategies as well as the recent deal with Ceconomy? What is the logic behind? Thank you.

Thank you Thomas for your question is I have <unk>.

Mentioned.

As the largest retailer in China International expansion has always been a key strategy for J D.

Internationally.

Especially strategy differ notably from other cross border E Commerce model.

Our international business focus on supply chain capability.

On one hand, we aim to seize the opportunity of Chinese premium brand going are going global.

About our thoughts about the next few years strategies um as well as the recent uh deal with US economy. Uh what's the logic uh behind? Thank you.

Sandy Xu: 在 Europe 其实已经耕耘了几年时间。自 2022 年以来，我们也在创新和试点我们在 Europe 本地的创新零售业务。在今年晚些时候呢，我们也会升级成为 JoyBuy 的品牌，到时候也会跟大家分享更多的进展。关于收购 Ceconomy，我们认为在 Europe 市场以及 Ceconomy 在 Europe 本地市场所建立的品牌力和供应链能力和市场地位对 JD.com 具有很大的价值。我们的线上电商运营和技术能力也能够和他们的能力进行相互的互补。但目前交易还是需要监管审批，如果有后续同样有进一步的更新也会和大家再沟通。

Helping them.

Efficiently expand into international markets, while providing overseas consumers with cost effective products on the other hand JD is also committed to localization meaning.

Meaning developing local retail and e-commerce business, establishing local teams and workforce.

Contact local procurement and local fulfillment.

So.

A long term mutual beneficial relationship with participants in local market. Moreover, TD will emphasize on selling branded high quality product.

um,

TV has been operating in Europe for three years steadily building our retail e-commerce.

Pretty and logistic warehouse infrastructure.

Accumulating extensive experience.

So.

22, we have been piloting innovative retail model in Europe, and we plan to officially launch our retail E Commerce platform called Joy by later this year and we will share more updates.

Later on.

economy.

Regarding the proposed acquisition of the economy, we believe the European market.

As well as.

Economists brand strength supply chain capabilities and market position in the European market holds significant.

A significant value for J D.

Both party can achieve similar adjusted.

Economies.

Results and TV on the <unk>.

Sean Zhang: Thank you, Thomas, for your question. Yes, as I have mentioned, as the largest retailer in China, international expansion has always been a key strategy for JD.com. Our international expansion strategy differs notably from other cross-border e-commerce models. Our international business focuses on supply chain capability. On one hand, we aim to seize the opportunity of a Chinese premium brand going global, helping them efficiently expand into international markets while providing overseas consumers with cost-effective products. On the other hand, JD.com is also committed to localization, meaning developing local retail and e-commerce businesses, establishing local teams and workforce, conducting local procurement, and local fulfillment to build a long-term mutually beneficial relationship with participants in local markets. Moreover, JD.com will emphasize selling branded high-quality products. JD.com has been operating in Europe for three years, steadily building our retail e-commerce property and logistics warehouse infrastructure while accumulating extensive experience.

If you can provide.

Online operation expertise and technology know hall.

The transaction is subject to regulatory approval currently and we will provide further update as appropriate.

Thank you.

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So that that's the last question.

Thank you we are now approaching the end of the conference call I will now turn the call over to Sean Zhang for closing remarks.

Thank you.

You all for joining our call today. If you have further questions. Please contact me and our team. We appreciate your interest in <unk> Com and look forward to talking with you again next quarter. Thank you.

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

Um, thank you so much for your question. Yes, I have. Uh, as I have mentioned, um, as the largest retailer in China, international expansion has always been a key strategy for JD, uh, but our International, uh, expansion strategy, differ notably from other crossborder e-commerce model, um, our international business, focus on supply chain capability. So, on 1 hand, we aim to seize the opportunity of Chinese premium brand going on going global, uh, helping them, uh, efficiently expand into International markets while, providing overseas consumers with cost effective products. On the other hand, JD is also committed to localization. Uh, meaning developing local retail and e-commerce, business establishing local teams and Workforce, um, conduct local, procurement and local.

Fulfillment.

Uh so um to build a long-term Mutual beneficial relationship with uh participant in local market. Moreover uh JD will emphasize on selling branded high quality product.

Sean Zhang: Since 2022, we have been piloting innovative retail models in Europe, and we plan to officially launch our retail e-commerce platform called JoyBuy later this year, and we will share more updates later on. Regarding the proposed acquisition of Ceconomy, we believe the European market, as well as Ceconomy's brand strength, supply chain capabilities, and market position in European markets, hold significant value for JD.com, and both parties can achieve synergistic results. JD.com can provide online operation expertise and technology know-how. The transaction is subject to regulatory approval. Currently, we will provide further updates as appropriate. Thank you. That is the last question.

Um, uh, JD has been operating in Europe for 3 years. Steadily building, our uh, retail e-commerce, uh, property and logistic Warehouse different structure. Uh, well, accumulating extensive experience.

Uh, so uh, since 2022, we have been piloting Innovative retail model in Europe and we plan to officially launch our retail, e-commerce platform called Joy by later this year and we will share more updates uh later on.

Uh, regarding the proposed acquisition of the economy, we believe the European market, as well as uh, The Economist brand strength supply chain capabilities and Market position in your in European market. Hold significant value for JD, uh, and both party can achieve synergistic uh uh, results and JD can on the other hand, JD can provide uh, online operation expertise, and technology know-how. So the transaction is subject to regulatory approval.

Currently and we will provide further update as appropriate.

Thank you. Um,

Operator: Thank you. We are now approaching the end of the conference call. I will now turn the call over to Sean Zhang for closing remarks.

so that uh, that's the last question.

Thank you. We are now approaching the end of the conference call. I will now turn the call over to Shaun Zhang for closing remarks.

Sean Zhang: Thank you. Thank you all for joining the call today. 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 again next quarter. Thank you.

And look forward to talking with you again next quarter. Thank you.

Operator: Thank you for your participation in today's conference. This concludes the presentation. You may now disconnect. Good day.

Thank you for your participation. In today's conference, this concludes the presentation.

you may now disconnect

good day.