Q4 2025 JD.Com Inc Earnings Call

Operator: Hello, thank you for standing by for JD.com's Q4 and full year 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, Head of Investor Relations. Please go ahead.

Speaker #1: 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.

Speaker #1: I would now like to turn the meeting over to your host for today's conference, Sean Zhang, Head of Investor Relations. Please go ahead.

Sean Zhang: Thank you. Good day, everyone. Welcome to JD.com Q4 and Full Year 2025 Earnings Conference Call. With us today are CEO of JD.com, Ms. Sandy Xu, and CFO, Mr. Ian Shan. Sandy will kick off the call with her opening remarks. Ian will discuss the financial results. We'll open the call to questions from analysts. Please note, unless otherwise stated, all comparison in this call will be against our results from the comparable period of 2024. Before turning the call over to Sandy, let me quickly cover the safe harbor. Please be reminded that during this call, our comments and responses to questions reflect management's view as of today only and will include forward-looking statements. Please refer to our latest safe harbor statement in the earnings press release on the IR website, which applies to this call. We'll discuss certain non-GAAP financial measures.

Speaker #2: Thank you. Good day, everyone. Welcome to JD.com fourth quarter and full year 2025 earnings conference call. With us today are CEO of JD.com, Ms. Sandy Xu, and CFO, Mr. Ian Shan.

Speaker #2: Sandy will kick off the call with her opening remarks, and Ian will discuss the financial results. Then we'll open the call to questions from analysts.

Speaker #2: Please note, unless otherwise stated, all comparisons in this call will be against our results from the comparable period of 2024. Before turning the call over to Sandy, let me quickly cover the safe harbor.

Speaker #2: Please be reminded that during this call, our comments and responses to your questions reflect management's view as of today only, and we will include forward-looking statements.

Speaker #2: Please refer to our latest safe harbor statement in the earnings press release on the IR website, which applies to this call. We'll discuss certain non-GAAP financial measures.

Sean Zhang: Please refer to the reconciliation of non-GAAP measures to the comparable GAAP measure in the earnings press release. Please also note all figures mentioned in this call are in RMB unless otherwise stated. Now, let me turn the call over to our CEO, Sandy.

Speaker #2: Please refer to the reconciliation of non-GAAP measures to the comparable GAAP measure in the earnings press release. Please also note all figures mentioned in this call are in R&B.

Speaker #2: Unless otherwise stated, now let me turn the call over to our CEO, Sandy.

Sandy Xu: Thank you, Sean. Hello, everyone. Thank you for joining our Q4 and full year 2025 Earnings Conference Call. We closed Q4 with results in line with expectations as we navigated short-term challenges while delivering a solid overall full-year performance for 2025. During Q4, despite a high year-on-year comparison base in electronics and home appliances, our top line remains resilient. Thanks to the continued strong momentum in both our general merchandise categories and marketplace and marketing revenues. Our profitability, our core business, JD Retail, achieved a notable gross margin expansion in Q4 as we further leveraged our supply chain advantages. We strategically invested some of these gains into our price competitiveness, particularly in electronics and home appliances categories, as well as in R&D capabilities and talents to secure a long-term edge.

Speaker #3: Thank you, Sean. Hello, everyone. Thank you for joining our fourth quarter and full year 2025 earnings conference call. We closed Q4 with results in line with expectations.

Speaker #3: As we navigated short-term challenges while delivering a solid overall full-year performance for 2025, during Q4, despite a high year-on-year comparison base, in electronics and home appliances, our top line remained resilient.

Speaker #3: Thanks to the continued strong momentum in both our general merchandise categories and marketplace and marketing revenues, our profitability—our core business, JD Retail—achieved a notable gross margin expansion in Q4.

Speaker #3: As we further leveraged our supply chain advantages, we strategically invested some of these gains into our price competitiveness, particularly in the electronics and home appliances categories.

Speaker #3: As well as in R&D capabilities and talents to secure a long-term edge. This slightly tempered retail's margin expansion in the quarter, but the impact was well absorbed by our increasingly diversified profit streams.

Sandy Xu: This slightly tempered Retail's margin expansion in the quarter, but the impact was well absorbed by our increasingly diversified profit streams, including high-margin marketplace and marketing services, and margin improvement in categories such as supermarket and healthcare. Beyond core Retail, our new businesses continued to report steady efficiency gains and a sequential decline in total investments. Beyond the quarterly fluctuation, 2025 remained a year of solid execution where we delivered on our full year expectations. We have made encouraging strides across our key long-term growth drivers. User base and engagement gained significant momentum. Our core Retail segment accelerated back to double-digit top line growth. Currently, we achieved this while expanding JD Retail operating margin for the sixth consecutive year, despite a highly competitive landscape. We are expanding our time with several promising new business initiatives.

Speaker #3: Including high-margin marketplace and marketing services, and margin improvement in categories such as supermarket and healthcare beyond core retail, our new businesses continued to report steady efficiency gains and a sequential decline in total investments.

Speaker #3: Beyond the quarterly fluctuation, 2025 remained a year of solid execution where we delivered on our full-year expectations. We have made encouraging strides across our key long-term growth drivers.

Speaker #3: User base and engagement gained significant momentum, and our core retail segment accelerated back to double-digit top-line growth. Lastly, we achieved this while expanding JD Retail operating margin for the sixth consecutive year.

Speaker #3: Despite a highly competitive landscape, we are expanding our time with several promising new business initiatives. This solid progress is rooted in our deepening supply chain capabilities.

Sandy Xu: This solid progress is rooted in our deepening supply chain capabilities, which remains the engine for delivering superior user experience, optimized cost, and enhanced operating efficiency. This is the backbone of our business model, not only supporting our core retail business, but also fueling our expansion into the new markets, our strategic initiatives. We are confident that these strategic pillars position us for more sustainable and profitable growth. Moving into our operational highlights, I'd like to share three highlights from Q4 and full year 2025, as well as our thoughts for 2026. First, our user base expanded in both scale and depth on 2025. Our monthly active customers grew by 30% year-on-year in Q4, capping a year where we exceeded 700 million annual active customers.

Speaker #3: These remain the engine for delivering superior user experience, optimized cost, and enhanced operating efficiency. This is the backbone of our business model, not only supporting our core retail business but also fueling our expansion into new markets and our strategic initiatives. We are confident that these strategic pillars position us for more sustainable and profitable growth.

Speaker #3: Moving into our operational highlights, I’d like to share three highlights from Q4 and full year 2025, as well as our thoughts for 2026. First, our user base expanded in both scale and depth.

Speaker #3: About 2025, our monthly active customers grew by 30% year-on-year in Q4, capping a year where we exceeded 700 million annual active customers. This growth was powered by the organic user growth of our core retail business.

Sandy Xu: This growth was powered by the organic user growth of our core retail business and further accelerated by new strategic initiatives, including JD Food Delivery and Jingxi. High value users also hit a new milestone. Our active JD member base sustained double-digit, surpassing 40. What's even more encouraging is the quality of user growth. User shopping frequency surged by over 40% year-over-year for the full year, with broad-based gains across all user groups, including new and existing users as well as Plus members. In addition to user acquisition, JD Food Delivery also played an important role in this frequency lift. We view the expansion of user base and engagement as a long-term strategic driver for our business, and expect it will further amplify in 2026 and beyond.

Speaker #3: And further accelerated by new strategic initiatives, including JD Food Delivery and Jinxi. High-value users also hit a new milestone. Our active JD Plus member base sustained double-digit growth, surpassing the 40 million mark by year-end.

Speaker #3: What was even more encouraging is the quality of user growth. User shopping frequency surged by over 40% year-on-year for the full year, with broad-based gains across all user groups.

Speaker #3: Including new and existing users, as well as Plus members. In addition to user acquisition, JD Food Delivery also played an important role in this frequency lift.

Speaker #3: We view the expansion of user base and engagement as a long-term strategic driver for our business, and expect it will further amplify in 2026 and beyond.

Sandy Xu: Second, our core retail business demonstrated remarkable resiliency in Q4, maintaining stable margins in the quarter despite short-term top line headwinds. On a full year basis, JD Retail delivered strong double-digit growth in both revenue and operating with operating margin expanding by 52 basis points to 4.6%. Viewed through a long-term lens, this consistent trajectory of JD Retail's growth and margin expansion over multiple years stands as a powerful testament to the resilience of our supply chain-driven model. While Q4 revenue edged down to 1.7% year-on-year due to softness of electronics and home appliance categories, we have proactively strengthened our supply chain capabilities and deepened user mindshare. These efforts are already paying off with improved momentum year to date in 2026.

Speaker #3: Second, our core retail business demonstrated remarkable resiliency in Q4, maintaining stable margins in the quarter despite short-term top-line headwinds. On a full-year basis, JD Retail delivered strong double-digit growth in both revenue and operating base.

Speaker #3: With operating margin expanding by 52 basis points to 4.6%, viewed through a long-term lens, this consistent trajectory of JD Retail's growth and margin expansion over multiple years stands as a powerful testament to the resilience of our supply chain-driven model.

Speaker #3: While Q4 revenue edged down 1.7% year-on-year due to softness in the electronics and home appliance categories, we have proactively strengthened our supply chain capabilities.

Speaker #3: And deepened user membership. These efforts are already paying off with improved momentum year-to-date in 2026. Furthermore, we expect to be benefiting from the resumed trade-in program this year, which will provide a constructive backdrop for industry growth.

Sandy Xu: Furthermore, we expect to be benefiting from the resumed trade-in program this year, which will provide a constructive backdrop for industry growth. Turning to general merchandise, its performance remains strong, with revenue up 12.1% year-over-year in Q4 and 15.3% for the full year. Supermarket revenue maintained double-digit growth in Q4. For the full year, supermarket growth reached mid-teens, accompanied by steady growth and operating margin expansion. Our fashion categories also achieved significant gains in both top line and user mindshare expansion throughout 2025, with healthy growth across user base, shopping frequency, RPU, and ticket size. These results were driven entirely by the team's execution rather than external tailwinds. We are confident in sustaining the general merchandise momentum as our category mix continues to evolve toward a more diversified structure.

Speaker #3: Turning to general merchandise, its performance remained strong, with revenue up 12.1% year-on-year in Q4 and 15.3% for the full year. Supermarket revenue maintained double-digit growth in Q4.

Speaker #3: For the full year, supermarket growth reached the mid-teens. Accompanied by steady growth and operating margin expansion, our fashion categories also achieved significant gains in both top-line and user membership expansion throughout 2025.

Speaker #3: With healthy growth across the user base, shopping frequency is up, as is ticket size. These results were driven entirely by the team's execution rather than external tailwinds.

Speaker #3: We are confident in sustaining the general merchandise momentum, as our category mix continues to evolve toward a more diversified structure. Another exciting emerging growth driver for JD Retail is advertising revenue.

Sandy Xu: Another exciting emerging growth driver for JD Retail is advertising revenue, which boosted our marketplace and marketing revenues to grow 15% in Q4 and 18.9% year-over-year for the full year. The robust growth was fueled by our optimized traffic allocation, enhanced conversion efficiency, and the rollout of our AI-powered algorithms and agents for our suppliers and merchants. We are also seeing a strategic shift where advertisers are reallocating budgets towards platforms like JD as we are regarded as the most consistent daily sales platform, the premier destination for brand building, and the platform that offers the highest return throughout a product's entire life cycle. Notably, the synergy with JD Food Delivery is starting to bear fruit, contributing an incremental 2% to 3% to ad revenue in Q4. We remain confident in sustaining our advertising revenue momentum in 2026.

Speaker #3: This boosted our marketplace and marketing revenues to grow 15% in Q4 and 18.9% year-on-year for the full year. The robust growth was fueled by our optimized traffic allocation, enhanced conversion efficiency, and the rollout of our AI-powered algorithms and agents for our suppliers and merchants.

Speaker #3: We are also seeing a strategic shift where advertisers are reallocating budgets toward platforms like JD, as we are regarded as the most consistent daily sales platform, the premier destination for brand building, and the platform that offers the highest return throughout a product's entire lifecycle.

Speaker #3: Notably, the synergy with JD Food Delivery is starting to bear fruit, contributing an incremental 2% to 3% to ad revenue in Q4. We remain confident in sustaining our advertising revenue momentum in 2026.

Sandy Xu: The third highlight is the solid progress of our new businesses. Within the segment, JD Food Delivery continued to drive healthy progress in Q4. We maintained steady order momentum while further optimizing our investment, further reducing the total investment scale by nearly 20% quarter-over-quarter. Since its inception, JD Food Delivery has sustained sequential loss reduction every single quarter, a direct result of our relentless focus on improving operating efficiency and an ROI-driven investment framework. In Q4, JD Food Delivery loss rate over GMV narrowed significantly compared to a quarter ago while maintaining the scale momentum. More importantly, the strategic synergies with our core retail business are deepening. Beyond the strong user momentum mentioned earlier, both cohorts, cumulative cross-selling rate and shopping frequency changed upward in Q4.

Speaker #3: The third highlight is the solid progress of our new businesses. Within the segment, JD Food Delivery continued to drive healthy progress in Q4. We maintained steady order momentum while further optimizing our investment.

Speaker #3: Further reducing the total investment scale by nearly 20% year-on-year and quarter-on-quarter, since inception JD Food Delivery has sustained sequential loss reduction every single quarter.

Speaker #3: A direct result of our relentless focus on improving operating efficiency and an ROI-driven investment framework. In Q4, JD Food Delivery's loss ratio over GMV narrowed significantly compared to a quarter ago, while maintaining the scale momentum.

Speaker #3: More importantly, the strategic synergies with our core retail business are deepening. Beyond the strong user momentum mentioned earlier, both cohort cumulative cross-selling reach and shopping frequency trended upward in Q4.

Sandy Xu: Additionally, total active merchants have increased by over 270%, which was also partially contributed by the high-quality restaurants that onboarded our platform. Looking ahead, JD Food Delivery will continue to prioritize healthy volume growth while improving its unit economics at a greater level. We expect investment efficiency in food delivery to improve further this year compared to 2025 levels. Regarding our other new business initiatives, both Jingxi and international business are progressing on track. Jingxi continues to successfully penetrate lower-tier markets, expanding both our user base and user run share. Furthermore, we are excited to announce that Joybuy, our online retail business in Europe, will officially launch this month. We are committed to redefining the local shopping experience by providing same-day and next-day delivery services, a move that opens up greater growth horizons for JD.

Speaker #3: Additionally, total active merchants have increased by over 270%, which was also partially contributed by the high-quality restaurants that onboarded our platform. Looking ahead, JD Food Delivery will continue to prioritize healthy volume growth while improving its unit economics at a greater level.

Speaker #3: We expect investment efficiency in food delivery to improve further this year compared to 2025's levels. Regarding our other new business initiatives, both Jinxi and international business are progressing on track.

Speaker #3: Jinxi continues to successfully penetrate lower-tier markets, expanding both our user base and user membership. Furthermore, we are excited to announce that Joybuy, our online retail business in Europe, will officially launch this month.

Speaker #3: We are committed to redefining the local shopping experience by providing same-day and next-day delivery services, a move that opens up greater growth horizons for JD.

Sandy Xu: We will continue to invest in these high-potential segments in a prudent and controlled manner to fuel our long-term sustained development. While executing our core strategies, we are equally inspired by the transformative potential of AI. By leveraging our deep supply chain capabilities, we are embedding AI across our entire value chain, identifying and stimulating demand, sourcing 1P and 3P supplies, and pioneering autonomous logistics. Let me share a few examples of our AI initiatives. First, proprietary intelligence. Our large language model, Joy AI, now supports over 1,000 real-world applications across customer experience, procurement, merchant services, and operations. In 2025, Joy AI's total token invocations surged nearly 100-fold from 2024, fueling faster, smarter decision-making throughout the company. Second, demand cultivation. We are reshaping the shopping journey and enhancing user experience through AI-driven search and recommendations.

Speaker #3: We will continue to invest in these high-potential segments in a prudent and controlled manner, fueling our long-term sustained development. While executing our core strategies, we are equally inspired by the transformative potential of AI.

Speaker #3: By leveraging our deep supply chain capabilities, we are embedding AI across our entire value chain—identifying and stimulating demand, sourcing 1P and 3P supplies.

Speaker #3: And pioneering autonomous logistics. Let me share a few examples of our AI initiatives. First, proprietary intelligence. Our large language model, JoyAI, now supports over 1,000 real-world applications across customer experience, procurement, merchant services, and operations.

Speaker #3: In 2025, JoyAI's total token invocations surged nearly 100-fold from 2024, fueling faster, smarter decision-making throughout the company. Second, demand cultivation. We are reaping the shopping journey and enhancing user experience through AI-driven search and recommendation.

Sandy Xu: Jingxi, our AI agent, surpassed 150 million annual AAC in 2025, with over 20% user penetration, driven RMB billions in GMV. We expect to double this user base in 2026. Third, logistics automation. Parallel to the digital intelligence is our leadership in autonomous logistics. In 2025, JD Logistics continued to redefine logistics efficiency. As of the year-end, it deployed over 20 flagship LanZhou Tech warehouses across China. We also launched this capacity internationally, launching our first LanZhou Tech facility in the UK to efficiently support a premium 211 same-day and next-day fulfillment experience locally. Fourth, services and innovation. Our multimodal AI customer service handled over 4.2 billion user inquiries during the Double Eleven promotion, achieving higher satisfaction with lower human intervention.

Speaker #3: Jin Yan, our AI agent, surpassed 150 million annual AAC in 2025, with over 20% user penetration. Driven feelings in GMV. We expect to double this user base in 2026.

Speaker #3: Third, logistics automation. Parallel to digital intelligence is our leadership in autonomous logistics. In 2025, JD Logistics continued to redefine logistics efficiency. As of year-end, it deployed over 20 flagship Lanzu tech warehouses across China.

Speaker #3: We also launched this capacity internationally, launching our first Lanzu tech facility in the UK to efficiently support a premium 211 same-day and next-day fulfillment experience locally.

Speaker #3: Furthermore, services and innovation. Our multi-modal AI customer service handled over 4.2 billion user inquiries during the Double 11 promotion, achieving higher satisfaction with lower human intervention.

Sandy Xu: Beyond operations, we are unlocking new consumption potential through Joy Insight, our AI agent for hardware, which has partnered with 40 hardware brands to introduce a range of AI products. Sales of Joy Insight integrated products surged 20-fold during Double Eleven compared to the June Eighteenth promotion. By harnessing AI to redefine our competitive edge, we are further equipped to enhance our user experience, lower costs, and improving operating efficiency. We are well-positioned to capture the opportunities arising from AI to unlock new growth frontiers for 2026 and beyond, ultimately placing us at the forefront of AI commerce. In summary, 2025 was a year of constructive progress and strategic fortitude. Despite navigating short-term macro environment and high base comparisons, we remained steadfast in sharpening our supply chain edge and fortifying our foundation for the future. As we enter 2026, we are already seeing a consistent upward trend.

Speaker #3: Beyond operations, we are unlocking new consumption potential through JoyInsight. Our AI agent for hardware has partnered with 40 hardware brands to introduce a range of AI products.

Speaker #3: Sales of JoyInsight integrated products surged 20-fold during Double 11 compared to the June 18th promotion. By harnessing AI to redefine our competitive edge, we are further equipped to enhance our user experience, lower costs, and improve operating efficiency.

Speaker #3: We are well positioned to capture the opportunities arising from AI to unlock new growth frontiers for 2026 and beyond. Ultimately, placing us at the forefront of AI commerce.

Speaker #3: In summary, 2025 was a year of constructive progress and strategic fortitude. Despite navigating a short-term macro environment and high-base comparisons, we remained steadfast in sharpening our supply chain edge and fortifying our foundation for the future.

Speaker #3: As we enter 2026, we are already seeing a consistent upward trend. Our user momentum remains robust, and the growth trajectory of our general merchandise and the marketplace and marketing services has carried over seamlessly into the new year.

Sandy Xu: Our user momentum remains robust, and the growth trajectory of our general merchandise and the marketplace and marketing services have carried over seamlessly into the new year. In the meantime, we have continued to strengthen our competitiveness advantages across product supply, price competitiveness, and fulfillment experience. This operational strength, combined with our technological advances, has disciplined ROI-focused approach to new businesses, gives us great confidence in our 2026 outlook. We remain fully committed to driving sustainable, profitable growth and creating long-term value for our shareholders. With this, I'll turn the call over to Ian.

Speaker #3: In the meantime, we have continued to strengthen our competitive advantages across product supply, price competitiveness, and fulfillment experience. This operational strength, combined with our technological advances, has disciplined our focused approach to new businesses.

Speaker #3: Gives us great confidence in our 2026 outlook. We remain fully committed to driving sustainable, profitable growth and creating long-term value for our shareholders. With this, I'll turn the call over to Ian.

Ian Shan: Thank you, Sandy. Hello, everyone, thanks for joining the call today. In Q4, our total revenues grew by 2% year-over-year, non-GAAP net profit came in at RMB 1.1 billion. While we face short-term headwinds in electronics and home appliances categories, our overall performance remained resilient. This stability was driven by our strategic focus on diversifying growth drivers and profit streams, alongside disciplined investment in our new business. On a full year basis, we achieved meaningful progress across our core retail segment, new businesses, and user growth and engagement, reinforcing our long-term sustainable development. As we drive business development, we remain firmly committed to delivering shareholder returns. Our board has approved a total annual cash dividend of approximately $1.4 billion for 2025, representing $0.005 per ordinary share or $1 per ADS.

Speaker #2: Thank you, Sandy. Hello, everyone, and thanks for joining the call today. Thank you. Our total revenues grew by 2% year on year, and non-GAAP net profit came in at RMB 1.1 billion.

Speaker #2: While we faced short-term headwinds in the home appliances category, our overall performance remained resilient. This stability was driven by our strategic focus on device-defined growth drivers and profit streams.

Speaker #2: Alongside disciplined investment in our new business, on a full-year basis, we achieved meaningful progress across our core retail segment, new businesses, and user growth and engagement, reinforcing our long-term sustainable development.

Speaker #2: As we drive business development, we remain firmly committed to delivering shareholder returns. Our boss has approved a total annual cash dividend of approximately $1.4 billion for 2025, representing $0.005 per ordinary share.

Speaker #2: Or $1 US dollar per EDF. Furthermore, we remained active in terms of share buybacks. In 2025, we repurchased about 6.3% of our outstanding shares for a total of $3 billion.

Ian Shan: Furthermore, we remained active in terms of share buybacks. In 2025, we repurchased about 6.3% of our outstanding shares for a total of $3 billion. All of the repurchased shares have been canceled. These efforts underscore our confidence in long-term development. Now, let's go through our Q4 and full year 2025 financial performance. Total net revenues for Q4 increased by 2% year-on-year to RMB 352 billion. On the full year basis, total net revenues increased by 13% to RMB 1.3 trillion in 2025. Breaking down the mix, product revenues faced a 3% dip in Q4, mainly due to a high trading base, but grew by 10% for the full year. By category, revenues of electronics and home appliances was down 12% in Q4, but up 7% for the full year.

Speaker #2: All of the repurchased shares have been canceled. This effort underscores our confidence in long-term development. Now, let's go through our Q4 and full-year 2025 financial performance.

Speaker #2: Total net revenues for Q4 increased by 2% year on year to RMB 352 billion. On a full-year basis, total net revenues increased by 13% to RMB 1.3 trillion in 2025.

Speaker #2: Breaking down the mix, product revenues faced a 3% dip in Q4, mainly due to a high trading base, but grew by 10% for the full year.

Speaker #2: By category, revenues of electronics and home appliances were down 12% in Q4, but up 7% for the full year. We have navigated this high-base challenge in close collaboration with our partners, and are encouraged by the improved momentum year to date in 2026.

Ian Shan: We have navigated this high base challenge in close collaboration with our partners and are encouraged by the improved momentum year-to-date in 2026. On the other hand, general merchandise delivered robust results, with revenues up 12% in Q4 and 15% for the full year, led by sustained momentum in our supermarkets, fashion, and healthcare categories throughout 2025. We believe this momentum will continue in 2026 as we further build our strength in these high-potential sectors. Service revenues grow by 20% year-on-year in Q4, and 24% for the full year. Notably, marketplace and marketing revenues were up 15% and 19% for the quarter and full year, respectively. A key driver of this was advertising revenues, which achieved double-digit growth across every quarter of 2025.

Speaker #2: On the other hand, general merchandise delivered robust results, with revenues up 12% in Q4 and 15% for the full year, led by sustained momentum in our supermarket, fashion, and healthcare categories throughout 2025.

Speaker #2: We believe this momentum will continue in 2026, as we further build our strength in this high-potential sector. Service revenues grew by 20% year on year in Q4, and 24% for the full year.

Speaker #2: Notably, marketplace and marketing revenues were up 15% and 19% for the quarter and full year, respectively. A key driver of this was advertising revenues.

Speaker #2: We achieved double-digit growth across every quarter of 2025. We have enhanced advertising efficiency on our platform through leveraging technology, as well as our surging user traffic and engagement.

Ian Shan: We have enhanced advertising efficiency on our platform through leveraging technology as well as our serving user traffic and engagement. Looking into 2026, we expect marketplace and marketing revenues to maintain solid growth momentum, contributing to both top-line growth and profitability. Additionally, logistics and other service revenues grow by 24% year-on-year in Q4 and 27% for the full year, mainly driven by the incremental delivery returns revenues from food delivery business. Now, let's turn to our segment performance. JD Retail revenues down 2% year-on-year in Q4, but up 11% for the full year of 2025. The quarterly decline was primarily due to the high trading base for electronics and home appliances, which was largely mitigated by growth in general merchandise and advertising revenues. It's important to note that JD Retail is no longer a single growth driver business.

Speaker #2: Looking into 2026, we expect marketplace and marketing revenues to maintain solid growth momentum, contributing to both top-line growth and profitability. Additionally, logistics and other service revenues grew by 24% year on year in Q4.

Speaker #2: And 27% for the full year, many driven by the incremental delivery returns and revenues from the full delivery business. Now, let's turn to our segment performance.

Speaker #2: JD Retail revenues were down 2% year-on-year in Q4, but up 11% for the full year of 2025. The quarterly decline was primarily due to the high trading base for electronics and home appliances.

Speaker #2: Which was largely mitigated by growth in general merchandise and advertising revenues. It's important to note that JD Retail is no longer a single growth driver business.

Ian Shan: We have successfully built a diversified growth matrix that provides the business with multiple engines and a strong resilience across different market conditions. Notably, JD Retail's gross margin increased by 1.1 percentage points year-on-year in both Q4 and full year 2025. This consistent improvement has sustained across multiple years despite changes in the competitive landscape, reflecting our enhanced supply chain strength and a favorable mix shift. JD Retail's non-GAAP operating income in Q4 was down 2% year-on-year, with operating margin holding steady at 3.2%. The temporary pause in margin expansion this quarter was a strategic choice. We deployed supplementary subsidies for electronics and home appliances to offer competitive price and maintain market leadership, while increasing OpEx through targeted investment in R&D and employees compensation to fuel future growth.

Speaker #2: We have successfully built diversified growth with multiple engines and strong resilience across different market conditions. Notably, JD Retail's gross margin increased by 1.1 percentage points year over year in both Q4 and the full year 2025.

Speaker #2: This consistent improvement has been sustained across multiple years, despite changes in the competitive landscape, reflecting our enhanced supply chain strength and a favorable mix shift.

Speaker #2: JD Retail's non-GAAP operating income in Q4 was down 2% year on year, with operating margin holding steady at 3.2%. The temporary pause in margin expansion this quarter was a strategic choice, with deployed supplementary subsidies for electronics and home appliances to offer competitive pricing.

Speaker #2: And maintain market leadership, while increasing OPEX through targeted investment in R&D and employees' compensation to fuel future growth. On a full-year basis, JD Retail's non-GAAP operating income in 2025 grew by 25% year-on-year, with operating margin improved by 52 bps.

Ian Shan: On a full year basis, JD Retail's non-GAAP operating income in 2025 grow by 25% year-on-year, with operating margin improved by 52 bps to 4.6%. Taking a long-term view, JD Retail's margin trajectory remains very healthy, climbing consistently from 2.7% in 2019 when we initiated this segment reporting, to 4.6% in 2025. We continue to emphasize hard-margin advertising business and realize efficiency gains in categories such as supermarket, we remain on a steady and successful path toward our long-term margin targets. Moving to JD Logistics, its revenues grow by 22% year-on-year in Q4 and 19% for the full year. With incremental contributions from food delivery. The profitability front, JD Logistics non-GAAP operating income was down 17% year-on-year in 2025, but up 3% in Q4.

Speaker #2: To 4.6%. Taking a long-term view, JD Retail's margin trajectory remains very healthy, climbing consistently from 2.7% in 2019, when we initiated this segment reporting.

Speaker #2: To 4.6% in 2025. As we continue to emphasize hard margin advertising business and real-life efficiency gains in categories such as supermarket, we remain on a steady and successful path toward our long-term margin targets.

Speaker #2: Moving to JD Logistics, its revenues grew by 22% year on year in Q4, and 19% for the full year. With incremental contribution from food delivery, on the profitability front, JD Logistics' non-GAAP operating income was down 17% year on year in 2025, but up 3% in Q4.

Ian Shan: JD Logistics remains committed to investing in elevating customer experience, expanding service capabilities in both domestic and overseas markets, and advancing AI and robotic technologies. We view this as essential investments that pave the way for JDL's long-term sustainable growth in both top and bottom lines. New business revenues searched by 201% year-over-year in Q4, and 157% for the full year, driven by the rapid scaling of Food Delivery, Jingxi, and international business. The segment non-GAAP operating loss narrowed to RMB 14.8 billion in Q4. This sequential improvement was primarily driven by the narrowing loss at JD Food Delivery, which achieved a notable reduction of about 20% in loss compared to the previous quarter, continuing its consistent trend of improvement since launch.

Speaker #2: JD Logistics remains committed to investing in elevating customer experience, expanding service capabilities in both domestic and overseas markets, and advancing AI and robotic technologies.

Speaker #2: We view this as essential investments that pave the way for JDL's long-term, sustainable growth in both top and bottom lines. New business revenues surged by 201% year on year in Q4, and 157% for the full year.

Speaker #2: Driven by the rapid scaling of food delivery, Jinxi, and international business, the segment's non-GAAP operating loss narrowed to RMB 14.8 billion in Q4. This sequential improvement was primarily driven by the narrowing loss at JD Food Delivery.

Speaker #2: Which achieved a notable reduction of about 20% in loss compared to the previous quarter, continuing its consistent trend of improvement since launch. As we enter 2026, our priority for food delivery remains to drive healthy order volume while deepening synergies with our core retail business.

Ian Shan: As we enter 2026, our priority for food delivery remains to drive healthy order volume while deepening synergies with our core retail business. We believe investment in food delivery has peaked in 2025 and will trend downward this year if market competition trends towards becoming more rational. Beyond food delivery, we will continue to explore promising opportunities in Jingxi and international business with financial discipline to ensure long-term value creation. Moving to our consolidated profit performance. Group Apple gross margin expanded by 32 bps year-over-year to 15.6% in Q4, and dropped 18 bps to 16% for the full year. This improvement was primarily driven by the consistent gross margin expansion of JD Retail.

Speaker #2: We believe investment in food delivery has peaked in 2025 and will trend downward this year. If market competition trends towards becoming more rational, beyond food delivery, we will continue to explore promising opportunities in Jinxi and international business.

Speaker #2: With financial discipline to ensure long-term value creation, moving to our consolidated profit performance. Group-level gross margin expanded by 32 basis points year on year to 15.6% in Q4.

Speaker #2: And roughly 18 bps to 16% for the full year. This improvement was primarily driven by the consistent gross margin expansion of JD Retail. Consolidated non-GAAP net income attributable to ordinary shareholders was RMB 1.1 billion in Q4, and RMB 27 billion for the full year.

Ian Shan: Consolidated non-GAAP net income attributable to ordinary shareholders was RMB 1.1 billion in Q4 and RMB 27 billion for the full year, representing a non-GAAP net margin of 0.3% and 2.1% respectively. Our near-term profitability mainly reflects our strategic investments in new business. We believe these initiatives will broaden the group's growth potential, driving both sustainable growth and margin improvement over the long term. Our free cash flow for the full year of 2025 was RMB 6 billion compared to RMB 44 billion last year. This primarily reflects cash outflows associated with the trade-in program alongside fluctuations in operating income.

Speaker #2: Representing a non-GAAP net margin of 0.3% and 2.1%, respectively. Our near-term profitability mainly reflects our strategic investments in new business. We believe this initiative will broaden the group's growth potential, driving both sustainable growth and margin improvement over the long term.

Speaker #2: Our free cash flow for the full year of 2025 was R&D $6 billion. Compared to R&D $44 billion last year, this primarily reflects cash outflows associated with the trading program, alongside fluctuations in operating income.

Ian Shan: Our accounts receivable also recorded a sequential decline for two consecutive quarters, primarily due to the healthy recovery of the trading-related receivables. We conclude the year with a robust liquidity position with cash and cash equivalents, restricted cash, and short-term investments totaling RMB 225 billion as of year-end. In summary, 2025 was the year of solid strategic progress. We achieved strong growth in our user base, accelerated core retail top line with margin expansion fueled by increasingly diversified drivers. Furthermore, our new business are now on a healthy, promising operating track. We have built a more resilient ecosystem where our business segments operated with increasing synergies. Our focus remains clear. We will continue to focus on enhancing user experience, lowering costs, and improving operating efficiency to deliver strong performance across our retail business top line and profitability while advancing our new business initiatives with a long-term perspective.

Speaker #2: Our accounts receivable also recorded a sequential decline for two consecutive quarters, primarily due to the healthy recovery of the trading-related receivables. We conclude the year with a robust liquidity position, with cash and cash equivalents, restricted cash, and short-term investments totaling RMB 225 billion.

Speaker #2: As of year-end, in summary, 2025 was a year of solid strategic progress. We achieved strong growth in our user base, accelerated core retail top line with margin expansion, fueled by increasingly diversified drivers.

Speaker #2: Furthermore, our new businesses are now on a healthy, promising operating track. We have built a more resilient ecosystem, where our business segments operated with increasing synergies.

Speaker #2: Our focus remains clear: we will continue to focus on enhancing user experience, lowering costs, and improving operating efficiency. To deliver strong performance across our retail business top line and profitability, while advancing our new business initiatives with a long-term perspective.

Ian Shan: With that, I'll turn it back to Sean. Thank you.

Speaker #2: With that, I'll turn it back to Sean. Thank you. Thank you, Sandy and Ian, for the Q&A session. Analysts are welcome to ask questions in Chinese or English.

Sean Zhang: Thank you, Sandy and Ian, for the Q&A session. Analysts are welcome to ask questions in Chinese or English. Our management will answer your question in Chinese and will provide English translation for convenience purpose only. In case of any discrepancy, please refer to our management statement in original language. Operator, we can open the call for Q&A session now.

Speaker #2: Our management will answer your questions in Chinese, and we'll provide English translation for convenience purposes only. In case of any discrepancy, please refer to our management statement in the original language.

Speaker #2: Operator, we can open the call for the Q&A session now. 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.

Operator: The question and answer session of this conference call will start in a moment. In order to be fair to all callers who wish to ask questions, we will take two questions at a time from each caller. If you have more than two questions, please request to join the queue again after your first two questions have been addressed. Your first question comes from Ronald Keung with Goldman Sachs.

Speaker #2: If you have more than two questions, please request to join the queue. Again, after your first two questions have been addressed. Your first question comes from Ronald Kung with Goldman Sachs.

Ronald Keung: 谢 谢 Sandy and Sean。 那 咱 们 两 个 问 题 ， 第 一 就 是 这 个 22 年 我 们 对 京 东 零 售 的 一 个 展 望 ， 呃 ， 那 如 果 这 个 电 子 产 品 在 国 补 的 这 个 影 响 下 ， 下 半 年 的 基 数 就 会 回 到 常 态 呢 ？ 那 我 们 超 市 和 日 百 这 些 还 是 ， 呃 ， 非 常 稳 健 ， 那 我 应 该 怎 么 看 这 个 26 年 的 京 东 零 售 的 上 半 年 和 下 半 年 的 这 个 表 现 和 增 长 的 态 势 呢 ？ 呃 ， 然 后 第 二 点 就 想 问 这 个 外 卖 和 即 时 零 售 的 ， 那 U1， 呃 ， 望 你 能 说 一 下 我 们 的 具 体 ， 呃 ， 认 为 这 个 改 善 的 路 径 ， 呃 ， 会 ， 会 是 怎 样 吗 ？ 那 面 对 这 些 其 他 的 竞 争 对 手 ， 那 我 们 是 基 于 应 该 是 供 应 链 驱 动 的 ， 那 我 们 这 个 差 异 化 的 优 势 有 哪 些 ？ 然 后 我 们 怎 么 理 解 ， 呃 ， 公 司 对 这 个 业 务 的 长 期 决 心 ， 呃 ， 和 这 个 因 为 有 这 个 近 期 的 监 管 调 查 ， 这 个 反 垄 断 调 查 呢 ， 减 少 内 卷 ， 然 后 对 我 们 整 个 U1 是 也 是 会 有 什 么 帮 助 。 那 我 翻 译 一 下 。Uh, thank you management taking my question.

Speaker #3: 谢谢 Sandy and Sean. Sean,两个提问。第一就是这个2026年我们对京东零售的一个展望。那我这个电子产品在国补的这个影响下，下半年的基数就会回到常态呢？那我们超市和日白这些还是非常稳健。那我应该怎么看这个2026年的京东零售的上半年和下半年的这个表现和增长的态势呢？然后第二点就想问这个外卖的机械零售的，那UE管理层能说一下我们怎么具体认为这个改善的路径会是怎样吗？那面对这些其他的竞争对手，那我们是基于应该是供应链驱动的，那我们这个差异化的优势有哪些？然后我们怎么理解公司对这个业务的长期局限？和这个因为有这个近期的监管调查，这个反垄断调查呢，减少内卷的话，对我们整个UE是不是也会有帮助？那我翻译一下。Thank you, management. Take my question. First is on JD retail 2026 growth as electronics and appliances. Return to a more normalized base from the second half.

Ronald Keung: First is on JD Retail 2026 growth as electronics appliances return to a more normalized base from the second half. The general merchandise remains very healthy. How should we think the growth rate for JD Retail in 2026 for the first half and second half and the differences given the base? Second is on the on demand and food delivery. How should we think of the path to further unit economics improvement compared with the bigger competitors? How are we differentiating ourselves through supply chain driven business models? How should we think of your determination and commitment to this business? With the regulations and investigations on the food delivery industry, will that also contribute to unit economics improvement? Thank you.

Speaker #3: The general merchandise remains very healthy. So how should we think of growth rates for JD Retail in 2026? For the first half and second half, and the differences given the base?

Speaker #3: Second is on the on-demand and for delivery. How should we think of the path to further unit economics improvement compared with the bigger competitors?

Speaker #3: How are we differentiating ourselves through supply chain, supply chain-driven business models? And how should we think of your determination and commitment to this business?

Speaker #3: And with the regulations and investigations on the delivery industry, would that also contribute to the unit economics improvement? Thank you.

Sandy Xu: 啊 ， 谢 谢 Ronald 的 问 题 。 啊 ， 那 首 先 呢 ， 呃 ， 日 百 品 类 的 健 康 增 长 趋 势 将 会 持 续 。 那 么 25 年 全 年 呢 ， 从 品 类 上 来 看 ， 那 即 使 在 有 国 补 的 前 提 下 ， 我 们 的 日 百 品 类 也 取 得 了 更 快 的 增 长 ， 那 也 带 动 了 我 们 零 售 大 盘 的 增 长 。 那 大 家 也 可 以 看 到 ， 就 是 商 超 、 时 尚 还 有 健 康 等 全 品 类 都 取 得 很 好 的 增 长 。 那 在 2026 年 呢 ， 我 们 对 日 百 品 类 还 会 持 续 保 持 健 康 增 长 非 常 有 信 心 。 那 商 超 业 务 也 在 用 户 的 渗 透 和 细 分 品 类 的 拓 展 上 仍 然 还 有 很 广 阔 的 提 升 空 间 。 那 时 尚 业 务 在 2025 年 也 已 经 完 成 了 ， 呃 ， 这 个 商 ， 招 商 的 布 局 ， 啊 ， 有 更 多 更 丰 富 的 商 家 和 品 牌 加 入 啊 ， 京 东 平 台 。 然 后 另 外 呢 ， 今 年 也 会 将 进 一 步 地 释 放 我 们 的 增 长 潜 力 。 那 健 康 品 类 也 继 续 保 持 行 业 领 先 的 地 位 和 用 户 心 智 。 那 对 于 家 电 品 类 来 说 ， 啊 ， 在 短 期 看 呢 ， 的 确 有 高 基 数 ， 还 有 原 材 料 成 本 上 涨 的 影 响 。 那 2026 年 政 府 的 以 旧 换 新 的 项 目 还 会 继 续 ， 啊 ， 但 是 呢 ， 这 个 25 年 因 为 它 的 确 从 以 旧 换 新 的 资 金 消 耗 上 来 看 ， 啊 ， 上 半 年 的 消 耗 是 比 较 多 的 ， 那 下 半 年 资 金 消 耗 相 对 比 较 少 ， 但 是 26 年 政 府 各 地 政 府 在 发 放 以 旧 换 新 补 贴 的 ， 啊 ， 这 个 资 金 和 资 质 方 面 相 对 对 节 奏 会 控 制 得 更 加 平 稳 一 些 。 所 以 从 我 们 的 角 度 看 ， 上 半 年 家 电 品 类 ， 包 括 家 电 、 手 机 、 电 脑 、 数 码 这 些 产 品 依 然 会 受 到 比 较 高 基 数 的 影 响 ， 会 阶 段 性 地 承 压 ， 但 是 会 比 四 季 度 25 年 的 四 季 度 的 增 幅啊 有 明 显 的 改 善 那 么 下 半 年 呢 将 进 一 步 恢 复 增 速 那 我 们 的 市 场 份 额 依 旧 是 稳 健 的 那 此 外 呢 最 近 大 家 可 能 也 看 到 就 是 因 为 存 储 芯 片 的 成 本 持 续 上 涨 所 以 对 手 机 数 码 等 电 子 产 品 的 这 个 价 格 会 有 一 定 的 影 响 那 这 个 会 价 格 的 上 涨 会 在 一 定 程 度 上 抑 制 消 费 的 抑 制 销 量 然 后 呃 但 是 客 单 价 的 提 升 呢 可 能 也 会 抵 消 部 分 销 量 下 滑 的 影 响 啊 那 我 们 也 将 持 续 地 强 化 我 们 的 供 应 链 能 力 啊 积 极 地 做 线 下 布 局 并 且 进 一 步 加 强 服 务 体 验 然 后 继 续 啊 加 强 我 们 的 用 户 心 智 来 拉 动 销 售 那 同 时 呢 我 们 也 看 到 AI 和 新 技 术 其 实 带 来 了 很 多 创 新 的 机 会 和 新 品 类 的 机 会 那 这 也 更 加 体 现 我 们 的 供 应 链 能 力 虽 然 短 期 内 啊 这 些 创 新 的 产 品 对 我 们 现 有 的 零 售 规 模 啊 相 对 贡 献 是 啊 还 没 有 那 么 明 显 但 是 我 们 也 看 到 了 很 多 的 机 会 和 变 化 那 我 们 也 将 和 品 牌 商 供 应 商 一 起 去 快 速 地 反 应 开 发 新 的 产 品 啊 通 过 快 速 应 用 新 技 术 来 满 - 满 足 用 户 不 断 变 化 的 消 费 需 求 那 展 望 2026 年 呢 我 们 的 增 长 驱 动 力 会 更 加 多 元 日 百 品 类 也 会 保 持 健 康 增 长 那 广 告 这 些 服 务 业 务 也 会 保 持 快 速 健 康 的 增 长 态 势 那 呃 另 外 第 二 点 就 是 呃 预 计 家 电 手 机 这 些 品 类 上 半 年 仍 然 受 到 高 基 数 的 影 响 下 半 年 的 增 速 会 好 于 上 半 年 那 整 体 上 我 们 在 保 持 市 场 份 额 和 用 户 心 智 的 同 时 会 不 断 地 应 用 技 术 创 新 去 推 动 行 业 的 发 展 那 第 三 呢 就 是 叠 加 京 东 平 台 现 有 的 平 台 流 量 用 户 和 频 次 这 些 表 现 的 持 续 提 升 那 我 们 有 信 心 今 年 全 年 实 现 健 - 实 现 健 康 的 高 质 量 增 长 那 么 第 二 个 外 卖 的 问 题 是 我 来 Oh sorry

Speaker #2: 谢谢Ronald的问题。那首先呢，日白品类的健康增长趋势将会持续。那么25年全年呢，从品类上来看，那即使在有国补的前提下，我们的日白品类也取得了更快的增长。那也带动了我们零售大盘的增长。那大家也可以看到，就是商超、时尚，还有健康等全品类都取得很好的增长。那在2026年呢，我们对日白品类还会持续保持健康增长，非常有信心。那商超业务也在用户的渗透和细分品类的拓展上，仍然还有很广阔的提升空间。那时尚业务在2025年也已经完成了这个招商的布局，有更多更丰富的商家和品牌加入京东平台。然后另外呢，今年也会将进一步的释放我们的增长潜力。那健康品类也继续保持行业领先的地位和用户心智。那对于在店品类来说，啊，在短期看呢，的确有高基数，还有原材料成本上涨的影响。那2026年政府的以旧换新的项目还会继续，啊，但是呢，这个25年因为它的确从以旧换新的资金消耗上来看，啊，上半年的消耗是比较多的。那下半年资金消耗相对比较少。但是26年政府各地政府在发放以旧换新补贴的，啊，这个资金和资质方面，相对对节奏会控制得更加平稳一些。所以从我们的角度看，上半年在店品类，包括家电、手机、电脑、数码，这些产品依然会受到比较高基数的影响，会阶段性的承压。但是会比四季度25年的四季度的增速，啊，有明显的改善。那么下半年呢，将进一步恢复增速。那我们的市场份额依旧是稳健的。那此外呢，最近大家可能也看到，就是因为存储芯片的成本持续上涨，所以对手机、数码等电子产品的这个价格会有一定的影响。那这个会价格的上涨会在一定程度上抑制消费的，抑制销量，然后，但是客单价的提升呢，可能也会抵消部分销量下滑的影响。那我们也将持续的强化我们的供应链能力，啊，积极的做线下的布局，并且进一步加强服务体验，然后继续，啊，加强我们的用户心智来拉动销售。那同时呢，我们也看到AI和新技术其实带来了很多创新的机会和新品类的机会。那这也更加体现我们的供应链能力。虽然短期内，啊，这些创新的产品对我们现有的零售规模，啊，相对贡献是，啊，还没有那么明显，但是我们也看到了很多的机会和变化。那我们也将和品牌商、供应商一起去快速的反应，开发新的产品，啊，通过快速应用新技术来满足用户不断变化的消费需求。那展望2026年呢，我们的增长驱动力会更加多元。日白品类也会保持健康增长。那广告这些服务业务也会保持快速健康的增长态势。那另外第二点就是，啊，预计家电手机这些品类上半年仍然受到高基数的影响，下半年的增速会好于上半年。那整体上，我们在保持市场份额和用户心智的同时，会不断的应用技术创新去推动行业的发展。那第三呢，就是叠加京东平台现有的平台流量，用户和频次这些表现的持续提升。那我们也有信心今年全年实现健康的高质量增长。那么第二个外卖的问题也是我来。哦，sorry。

Sean Zhang: Okay thank you Ronald. For your first question, our general merchandise category continues a very healthy, robust growth trajectory. Looking back at 2025, the category achieved a growth faster even factoring the impact of trade-in program on the other category. General merchandise category serves as a primary growth engine for JD Retail. You know, categories such as subcategories such as supermarket, fashion, and healthcare all achieved a very strong result. Looking into 2026, we remain very confident in sustaining this healthy momentum. Supermarket categories still have significant potential in terms of user penetration and expansion of the subcategory. Fashion category, we have completed many infrastructural work such as merchant recruitment last year and we'll further build growth momentum on this very strong foundation. Healthcare category, we expect to continue to maintain its industry leading position and user mindshare. Regarding electronics and home appliance category, it continues to face high base effect in the short term in 2026. The government trade-in program will continue, we have to bear in mind that the government backed cash subsidy were consumed much faster and more in H1 2025 compared to H2 2025. For our electronic home appliance categories including home appliance, cell phone, computers, and digital products, will remain affected by a high base in H1 this year. However, we anticipate a sequential improvement in growth compared to the last quarter, Q4 2025, with more robust recovery expected in H2 2026, and our market share remains very resilient. Furthermore, we have to bear in mind that memory chip costs keep rising. Prices of mobile phone digital products are expected to increase across the board. This may dampen consumption and affect sales volume. At the same time, the rise of AOV will partially offset the impact of lower sales to a certain extent. We'll continue to strengthen our user mindshare and drive sales by further reinforcing our supply chain capability, expanding our proactive offline presence, and enhancing overall service experience. Meanwhile, AI and emerging technologies are creating numerous opportunity for innovation and new product categories, further demonstrating our strength of supply chain. While initial data contributions from this new AI related products remain modest related to the current scale of this category, we see significant opportunities and shifts. We will work closely with brands owners and suppliers to respond rapidly and develop new products and needs involving user needs through this swift application of new technology. Looking ahead to 2026, first our growth driver are becoming more diversified.

Speaker #3: Okay, thank you, Ronald. So for your first question, first, our general merchandise category continues a very healthy, robust growth trajectory. Looking back at 2025, the category achieved growth faster, even factoring in the impact of the treating program on the other category.

Speaker #3: So general merchant category serve as a primary growth engine for JD Retail. Categories such as subcategories such as supermarket, fashion, and healthcare all achieved very strong results.

Speaker #3: Looking into 2026, we remain very confident in sustaining this healthy momentum. The supermarket category still has significant untapped potential in terms of user penetration and expansion of the subcategory.

Speaker #3: The fashion category will have completed many infrastructural works, such as merchant recruitment last year, and will further build the growth momentum on this very strong foundation.

Speaker #3: The healthcare category, we expect to continue to maintain its industry-leading position and user mindshare. Regarding the electronics and home appliance category, it continues to face a high-base effect in the short term.

Speaker #3: In 2026, the government treating program will continue. But we have to bear in mind that the government-backed cash subsidy will be consumed much faster and more in the first half of 2025 compared to the second half of 2025.

Speaker #3: So for our electronic home appliance category, including home appliances, cell phones, computers, and digital products, it will remain affected by a high base in the first half of this year.

Speaker #3: However, we anticipate a sequential improvement in growth compared to the last quarter, the fourth quarter of 2025, with more robust recovery expected in the second half of 2026.

Speaker #3: And our market share remains very resilient. Furthermore, we have to bear in mind that memory chip costs keep rising. So, prices of mobile phones and digital products are expected to increase across the board.

Speaker #3: This may dampen consumption and affect sales volume. But at the same time, the rise of AOB will partially offset the impact of lower sales to a certain extent.

Speaker #3: We'll continue to strengthen our user mindshare and drive sales by further reinforcing our supply chain capability, expanding our proactive offline presence, and enhancing overall service experience.

Speaker #3: Meanwhile, AI and emerging technologies are creating numerous opportunities for innovation and new product categories, further demonstrating our strength of supply chain. While initial data contributions from this new AI-related product remain modest relative to our current scale of this category, we see significant opportunities and shifts, and we will work with suppliers to respond rapidly and develop new products to meet evolving user need through the swift application of new technology.

Speaker #3: Looking ahead to 2026, first, our growth drivers are becoming more diversified. The general merchandise category maintains a healthy growth trend, while service revenue, including advertising, will also sustain rapid growth momentum.

Sean Zhang: General merchandise category maintains a healthy growth trend, while service revenue, including advertising, will also sustain rapid growth momentum. Second, we expect electronic home appliance category to remain impacted by a high base in the first half this year, with growth in the second half to accelerate and better than the first half. Overall, we will maintain our market share and user mindshare. At the same time, we'll continuously leverage technological innovation to drive industry progress. Third, supported by the steady improvement in JD's traffic, user base, and shopping frequency, we are confident in achieving healthy and high-quality growth for the full year 2026.

Speaker #3: Second, we expect electronic home appliance category to remain impacted by a high-based in the first half this year. And with growth in the second half to accelerate and better than the first half.

Speaker #3: Overall, we will maintain our market share and user mindshare. At the same time, we'll continuously leverage technological innovation to drive industry progress. Third, supported by the steady improvement in JD's traffic, user base, and shopping frequency, we are confident in achieving healthy and high-quality growth for the full year 2026.

Sandy Xu: 好 的 ， 那 关 于 第 二 个 外 卖 的 问 题 ， 呃 ， 那 二 五 年 呢 ， 外 卖 业 务 刚 刚 起 步 ， 我 们 不 仅 在 运 营 上 ， 还 在 研 发 上 都 做 了 大 量 的 投 入 。 那 二 六 年 继 续 加 强 能 力 建 设 ， 呃 ， 同 时 增 加 优 质 商 家 和 产 品 供 给 ， 提 升 用 户 体 验 ， 呃 ， 同 时 呢 ， 也 会 通 过 给 商 家 提 供 服 务 的 时 候 开 始 会 陆 续 产 生 收 入 ， 那 实 现 业 务 有 序 的 货 币 化 。 当 然 我 们 也 会 保 持 一 个 合 理 的 货 币 化 率 ， 啊 ， 我 们 的 目 标 呢 ， 是 在 规 模 保 持 健 康 发 展 的 同 时 ， 取 得 经 营 效 率 的 持 续 改 善 ， 也 就 是 优 异 的 改 善 。 那 预 计 二 六 年 外 卖 的 总 投 入 将 会 比 二 五 年 有 所 降 低 ， 当 然 这 个 也 会 取 决 于 市 场 竞 争 的 态 势 。 那 首 先 呢 ， 关 于 京 东 外 卖 的 差 异 化 优 势 ， 那 我 还 是 ， 呃 ， 第 一 个 我 们 会 坚 持 品 质 外 卖 的 定 位 。 那 第 二 呢 ， 是 我 们 全 职 骑 手 的 服 务 质 量 ， 呃 ， 给 用 户 带 来 更 好 的 体 验 。 那 第 三 呢 ， 是 生 态 系 统 的 协 同 联 动 ， 呃 ， 体 现 我 们 整 个 京 东 ， 呃 ， 平 台 的 ， 呃 ， 供 应 链 优 势 。 那 么 对 于 优 异 的 提 升 也 有 明 确 的 抓 手 。 那 第 一 个 是 更 加 多 元 的 收 入 来 源 。 那 第 二 呢 ， 是 提 升 ， 持 续 提 升 补 贴 效 率 ， 包 括 针 对 不 同 用 户 地 域 的 精 细 化 的 补 贴 。 那 第 三 是 配 送 效 率 会 随 着 单 量 的 规 模 健 康 增 长 ， 也 会 持 续 提 升 。 那 值 得 关 注 的 是 我 们 的 即 鲜 小 厨 业 务 ， 呃 ， 这 是 一 个 非 常 创 新 和 差 异 化 的 业 务 模 式 ， 因 为 它 与 我 们 京 东 的 供 应 链 能 力 会 深 度 整 合 ， 也 是 我 们 的 即 时 零 售 -- 也 与 我 们 的 即 时 零 售 业 务 有 很 强 的 synergy。 那 截 止 到 二 月 底 ， 我 们 已 经 有 超 过 五 十 家 即 鲜 小 厨 营 业 ， 那 也 欢 迎 各 位 ， 呃 ， 投 资 人 和 分 析 师 有 机 会 可 以 体 验 一 下 。 那 长 期 定 位 上 来 看 ， 外 卖 和 即 时 零 售 是 京 东 重 要 的 长 期 战 略 方 向 ， 那 我 们 会 以 长 期 的 视 角 来 推 动 业 务 的 健 康 发 展 ， 那 持 续 提 升 运 营 效 率 ， 带 动 盈 利 能 力 的 改 善 ， 同 时 也 会 持 续 地 释 放 外 卖 和 核 心 零 售 业 务 的 协 同 潜 力 ， 为 公 司 的 长 期 健 康 增 长 提 供 动 力 。 那 二 五 年 我 们 已 经 看 到 外 卖 为 京 东 带 来 了 新 用 户 ， 和 对 当 前 的 用 户 购 频 ， 呃 ， 能 够 有 大 幅 的 提 升 。 那 二 六 年 我 们 也 将 继 续 看 到 交 叉 销 售 以 及 广 告 收 入 增 量 贡 献 这 些 协 同 效 应 的 持 续 释 放 。 那 么 刚 刚 还 有 一 个 问 题 是 关 于 外 卖 监 管 。 那 首 先 我 们 支 持 并 且 欢 迎 监 管 来 维 护 市 场 的 公 平 竞 争 秩 序 ， 呃 ， 这 有 利 于 行 业 的 健 康 发 展 。 那 第 二 呢 ， 是 我 们 会 ， 呃 ， 坚 定 不 移 地 抵 制 行 业 内 的 内 卷 式 恶 性 竞 争 ， 那 我 们 也 将 通 过 供 应 链 的 模 式 去 做 创 新 ， 来 推 动 品 质 外 卖 的 高 质 量 发 展 。

Speaker #2: 好的，那关于第二个外卖的问题，那25年外卖业务刚刚起步，我们不仅在运营上，还在研发上都做了大量的投入。那26年继续加强能力建设，同时增加优质商家和产品的供给，提升用户体验。同时也会通过给商家提供服务的时候，开始会陆续产生收入。那实现业务有序的货币化。当然我们也会保持一个合理的货币化率。我们的目标是在规模保持健康发展的同时取得经营效率的持续改善，也就是优异的改善。那预计26年外卖的总投入将会比25年有所降低。当然这个也会取决于市场竞争的态势。那首先关于京东外卖的差异化优势，那还是第一个我们会坚持品质外卖的定位。那第二是我们全职骑手的服务质量，给用户带来更好的体验。那第三是生态系统的协同联动，体现我们整个京东平台的供应链优势。那么对于优异的提升也有明确的抓手。那第一个是更加多元的收入来源。那第二是提升持续提升补贴效率，包括针对不同用户地域的精细化的补贴。那第三是配送效率会随着单量的规模、健康增长，也会持续提升。那值得关注的是我们的七星小厨业务，这是一个非常创新和差异化的业务模式。因为它与我们京东的供应链能力会深度整合，也是我们的即时零售，也与我们的即时零售业务有很强的synergy。那截止到2月底，我们已经有超过50家七星小厨营业，那也欢迎各位投资人和分析师有机会可以体验一下。那长期定位上来看，外卖和即时零售是京东重要的长期战略方向。那我们会以长期的视角来推动业务的健康发展。那持续提升运营效率，带动盈利能力的改善，同时也会持续的释放外卖和核心零售业务的协同潜力，为公司的长期健康增长提供动力。那25年我们已经看到外卖为京东带来了新用户和对当前的用户购品能够有大幅的提升。那26年我们也将继续看到交叉销售以及广告收入增量贡献这些协同效应的持续释放。那么刚刚还有一个问题是关于外卖监管，那首先我们支持并且欢迎监管来维护市场的公平竞争秩序。这有利于行业的健康发展。那第二是我们会坚定不移的抵制行业内的内卷式恶性竞争。那我们也将通过供应链的模式去做创新，来推动品质外卖的高质量发展。

Sean Zhang: Regarding your second question. While food delivery business, our food delivery business remain in its early stage in 2025, we actively invested in both operation and R&D. Looking at this year 2026, we'll continue to strengthen our capabilities and onboard more quality merchants and product and enhance user experience. At the same time, we'll begin generating revenue through offering merchant services, achieving an orderly and rational monetization. Our goal is to sustain healthy scaling of this business while continuously improving operation efficiency. We expect total investment in food delivery to decrease in 2026 compared to 2025. While that also of course depends on the market competition dynamics. How we do this? First, JD Food Delivery differentiating advantage includes our commitment to our positioning in high quality food delivery.

Speaker #3: Regarding your second question, so while our food delivery business remains in its early stage in 2025, we actively invested in both operations and R&D.

Speaker #3: Looking at this year, 2026, we'll continue to strengthen our capabilities and onboard more quality merchants and products, and enhance user experience. At the same time, we'll begin generating revenue through offering merchant services, achieving an orderly and rational monetization.

Speaker #3: So our goal is to sustain healthy scaling of this business while continuously improving operation efficiency. We expect total investment in food delivery to decrease in 2026 compared to 2025.

Speaker #3: While that also, of course, depends on the market competition dynamics. How do we do this? First, JD food delivery's differentiating advantage includes our commitment to our positioning in high-quality food delivery.

Sean Zhang: Second, the superior service quality driven by full-time riders. Third, the synergetic integration across JD ecosystem, leveraging on our strong supply chain advantage. In terms of improving UE, we have clear drivers. First, more diversified revenue streams. Second, continuous optimization of subsidy efficiency, including targeted subsidy tailored to different users and regions. Third, enhance delivery efficiency driven by economic scale that accompany healthy order volume growth. It's also worth noting that our Fresh Kitchen, which is a highly innovative and differentiated business model, is progressing well, is deeply integrated with JD supply chain capability leverage, strong synergy with our on-demand retail retail business. As of the end of February, 7FRESH Kitchen operational footprint has expanded to over 50 kitchen locations.

Speaker #3: Second, superior service quality driven by full-time riders. Third, the synergy that a synergetic integration across JD ecosystem leveraging on our strong supply chain advantage.

Speaker #3: And in terms of improving UE, we have clear drivers. First, more diversified revenue streams. Second, continuous optimization of subsidy efficiency, including targeted subsidies tailored to different users and regions.

Speaker #3: Third, enhanced delivery efficiency, driven by healthy order volume growth. It's also worth noting that our Selling Fresh Kitchen, which is a highly innovative and differentiated business model, is progressing well.

Speaker #3: It’s deeply integrated with JD supply chain capability, leveraging strong synergy with our on-demand retail business. As of the end of February, Selling Fresh Kitchen’s operational footprint has expanded to over 50 kitchen locations, and we welcome analysts and investors to try it out.

Sean Zhang: We welcome analysts and investors to try out. Regarding the long-term positioning, food delivery and on-demand retail is a long-term strategy for JD, will drive our strategic progress with a long-term perspective, continuously enhancing operational efficiency to drive profitability improvement. At the same time, we'll continue to unlock potential synergy between food delivery and our core retail business, fueling the company's long-term healthy growth. In 2025 our food delivery provided proved to be a strategic engine for user growth, effectively acquiring new users and significantly boosting purchase frequency across our platform. In 2026, we expect to see a further unlocking of synergies driven by robust cross-selling and incremental growth in advertising revenue. Lastly, regarding the food delivery regulation.

Speaker #3: Regarding the long-term positioning, food delivery and on-demand retail is a long-term strategy for JD. We'll drive our strategic progress with a long-term perspective, continuously enhancing operation efficiency to drive profitability improvement.

Speaker #3: At the same time, we'll continue to unlock potential synergy between food delivery and our core retail business, fueling the company's long-term healthy growth. In 2025, our food delivery proved to be a strategic engine for user growth, effectively acquiring new users and significantly boosting purchase frequency across our platform.

Speaker #3: In 2026, we expect to see a further unlocking of synergies driven by robust cross-selling and incremental growth in advertising revenue. Lastly, regarding the food delivery regulation, first, we support and welcome regulatory oversight that maintains a fair and competitive market environment.

Sean Zhang: First, we support and welcome regulatory oversight that maintains a fair and competitive market environment as they foster a healthy development of the industry. Second, we remain steadfast in our opposition in evolutionary competition within the sector. Third, we are committed to driving high quality evolution of high quality food delivery through continuous innovation in our supply chain model. Thank you. Next question, please.

Speaker #3: As it fosters healthy development of the industry. Second, we remain steadfast in our opposition to evolutionary competition within the sector. Third, we are committed to driving high-quality evolution of quality food delivery.

Speaker #3: High-quality food delivery through continuous innovation in our supply chain model. Thank you. Next question, please.

Operator: Your next question comes from Kenneth Fung with UBS.

Speaker #2: Your next question comes from Kenneth Fong with UBS.

Kenneth Fong: Hi, Sandy, Ian, and Sean.

Speaker #4: Hi, Sandy, Ian, Sean, 晚上好。今天谢谢接受我的提问。我有两个问题。第一个是关于集团的利润以及新业务的投入。现在国内的宏观环境还是不确定，集团同时又在加速推进海外以及近期的新业务发展。我想请问一下管理层如何平衡集团的增长以及利润率呢？预计2026年新业务的投入的规模会在什么水平？还有这些投入对于集团的利润会产生什么影响呢？我第二个问题是关于海外的。管理层可以介绍一下Seaconomy收购的最新进展以及时间规划会是怎么样吗？以及业务在并表以后对于集团财务的具体影响，我们应该怎么思考？在战略布局的角度，公司如何定位Joybike？预计将和京东Retail、京东Logistics以及整个集团供应体系、供应链体系里面有什么具体的协同效应？谢谢。我自己翻译一下。Thank you, management, for taking my question. My first question is about the profitability and investment in new business. Under the backdrop of macro uncertainties, and yet the accelerated investment in overseas and recent business, how should management balance the growth as well as the profitability?

Kenneth Fong: 晚 上 好， 谢 谢 接 受， 谢 谢 接 受 我 的 提 问。 我 有 两 个 问 题。 第 一 个 是 关 于 集 团 的 利 润 以 及 新 业 务 的 投 入。 在 现 在 国 内 的 宏 观 环 境 还 是 不 确 定， 集 团 同 时 又 在 加 速 推 进 海 外 以 及 Jingxi 的 业 务 发 展。 我 想 请 问 一 下 管 理 层 如 何 平 衡 集 团 的 增 长 以 及 利 润 率 呢？ 那 预 计 2026 年 新 业 务 的 投 入 的 规 模 会 在 什 么 水 平？ 还 有 这 个 投 入 对 于 集 团 的 利 润 会 产 生 什 么 影 响 呢？ 我 第 二 个 问 题 是 关 于 海 外 的。 管 理 层 可 以 介 绍 一 下， 这 个 CECONOMY 的 收 购 的 新 的 进 展， 以 及 时 间 的 规 划 会 是 怎 么 样， 以及 这 个 业 务 在 并 表 以 后， 对 于 集 团 的 财 务 的 具 体 的 影 响， 我 们 应 该 怎 么 思 考？ 在 这 个 战 略 布 局 的 角 度， 公 司 如 何 定 位 这 个 灾 败， 预 计 将 和 这 个 JD Retail、 JD Logistics， 以 及 整 个 集 团 的 供应链体系 里 面 有 什 么 具 体 的 协 同 的 效 应？ 谢 谢。 好， 我 自 己 翻 译 一 下。 Thank you management for taking my question.

Kenneth Fong: My first question is about the profitability and investment in new business. Under the backdrop of macro uncertainties, yet the accelerate investment in overseas and Jingxi business, how should management balance the growth as well as the profitability? What level of investment should we expect for 2026 for this new business, and how should it affect the group earnings? My second question is about overseas business. Can management share some updates on the CECONOMY acquisition progress, timeline, and the impact on financials post consolidation? From the strategic angle, how would Joybuy position and what kind of benefit or synergy should we expect from the group level, i.e., JD Retail, Logistics, and the whole supply chain point of view? Thank you.

Speaker #4: What level of investment should we expect for 2026 for this new business? And how should it affect the group earnings? And my second question is about the overseas business.

Speaker #4: Can management share some updates on the Seaconomy acquisition progress, timeline, and the impact on financials post-consolidation from the strategic angle? How would Joybike position?

Speaker #4: And what kind of benefit or synergy should we expect from the group level? I.e., Jinxi retail, logistics, and the whole supply chain point of view.

Speaker #4: Thank you.

Ian Shan: 好 ， 多 谢 Kenneth。 呃 ， 关 于 投 入 和 利 润 ， 那 从 长 期 的 视 角 ， 我 们 对 中 国 市 场 的 前 景 和 我 们 自 身 的 业 务 发 展 很 有 信 心 。 那 基 于 对 商 业 机 遇 的 洞 察 ， 我 们 坚 持 做 一 些 长 期 的 业 务 布 局 ， 那 包 括 国 际 业 务 、 下 沉 市 场 以 及 零 售 -- 以 及 零 售 。 那 我 们 也 坚 定 地 在 技 术 研 发 上 做 ， 不 断 地 完 善 技 术 能 力 ， 呃 ， 拓 宽 服 务 边 界 ， 持 续 打 开 新 的 增 长 空 间 ， 那 也 将 为 集 团 长 期 提 升 的 新 的 增 长 动 力 。 那 京 东 的 长 期 高 个 位 数 的 利 润 率 的 目 标 是 不 会 改 变 的 。 呃 ， 对 于 核 心 零 售 利 润 ， 二 六 年 ， 呃 ， 核 心 的 零 售 利 润 可 以 实 现 健 康 的 增 长 ， 那 长 期 零 售 高 位 数 的 利 润 率 目 标 不 变 ， 那 这 个 驱 动 包 括 自 营 能 力 带 动 商 品 毛 利 率 的 提 升 ， 广 告 等 利 润 率 较 高 的 收 入 保 持 强 劲 的 增 长 ， 那 以 及 商 超 等 品 类 的 利 润 率 持 续 改 善 ， 零 售 的 规 模 效 应 会 持 续 释 放 ， 经 营 效 率 随 着 技 术 的 应 用 还 会 有 进 一 步 的 提 升 空 间 。那 在 新 业 务 投 入 上 ， 啊 外 卖 业 务 在 刚 过 去 的 Q4 亏 损 环 比 收 窄 接 近 百 分 之 二 十 。 那 我 们 也 在 保 持 规 模 健 康 增 长 的 同 时 ， 随 着 经 营 效 率 的 改 善 和 收 入 的 增 长 ， 整 体 的 亏 损 率 也 在 大 幅 的 收 窄 。 那 展 望 2026 年 ， 我 们 将 继 续 推 动 外 卖 规 模 的 健 康 增 长 ， 同 时 释 放 与 核 心 零 售 的 协 同 价 值 。 那 如 果 行 业 的 竞 争 趋 于 理 性 ， 理 性 ， 我 们 今 年 外 卖 的 投 入 的 目 标 是 比 2025 年 下 降 。 那 国 际 业 务 会 按 节 奏 逐 步 增 加 投 入 ， 那 规 模 可 控 ， 我 们 会 保 持 严 格 的 投 入 的 纪 律 性 。 惊 喜 业 务 在 深 耕 下 沉 市 场 ， 聚 焦 白 牌 供 给 ， 特 别 在 六 线 以 下 城 市 加 大 渗 透 率 的 效 果 显 著 ， 那 拓 宽 了 京 东 的 用 户 的 增 量 的 边 界 ， 呃 在 供 给 也 实 现 了 和 主 站 的 差 异 化 协 同 。 啊 今 年 的 投 入 会 持 续 小 幅 增 加 ， 那 优 益 也 会 持 续 提 升 ， 实 现 业 务 健 康 可 持 续 的 增 长 。

Speaker #3: 多谢Kenny。关于投入和利润，从长期的视角，我们对中国市场的前景和我们自身的业务发展很有信心。基于对商业机遇的洞察，我们坚持做一些长期的业务布局，包括国际业务。下沉市场以及零售，继续零售。我们也坚定地在技术研发上做投入，不断地完善基础能力。拓宽服务边界，持续打开新的增长空间，也将为集团长期提升带来新的增长动力。京东的长期高个位数的利润率的目标是不会改变的。对核心零售利润，26年核心的零售利润可以实现健康的增长。长期零售高个位数的利润率目标不变。这个驱动包括自营能力带动商品毛利率的提升，广告等利润率较高的收入保持强劲的增长。以及商超等品类的利润率持续改善，零售的规模效应会持续释放，经营效率随着技术的应用还会有进一步的提升空间。在新业务投入上，外卖业务在刚过去的Q4亏损环比收窄接近20%。我们也在保持规模健康增长的同时，随着经营效率的改善和收入的增长，整体的亏损率也在大幅的收窄。展望2026年，我们将继续推动外卖规模的健康增长，同时释放与核心零售的协同价值。如果行业的竞争趋于理性，我们今年外卖的投入的目标是比2025年下降。国际业务会按节奏逐步增加投入。规模可控，我们会保持严格的投入的纪律性。京喜业务在深耕下沉市场聚焦白台供给，特别在六线以下城市加大渗透率的效果显著。拓宽了京东的用户的增量的边界，再供给也实现了和主站的差异化协同。今年的投入会持续小幅增加，优异也会持续提升，实现业务健康可持续的增长。

Sandy Xu: Regarding our thoughts on investment and profitability. From a long-term perspective, we are confident in the prospects of the China market and our own business development. Based on our views of the market opportunities, we have made long-term strategic investments, including in our international business, lower-tier markets, and on-demand retail. At the same time, we have been committed to investing in R&D and the technologies by enhancing our foundational capabilities and expanding our service scope. We believe we will continue to unlock new growth opportunities, which will also drive our long-term profitability. JD's high single-digit long-term margin target remains unchanged. In terms of JD Retail, we expect to see healthy growth of retail profits in 2026 and our long-term target for JD Retail, which is high single-digit profit margin, also remains unchanged.

Speaker #2: Thank you, Kenny. Regarding our thoughts on investment and profitability, from a long-term perspective, we are confident in the prospects of the China market and our own business development.

Speaker #2: Based on our views of the market opportunities, we have made long-term strategic investments, including in our international business, lower-tier markets, and on-demand retail. At the same time, we have been committed to investing in R&D and technologies.

Speaker #2: By enhancing our foundational capabilities and expanding our service scope, we believe we will continue to unlock new growth opportunities, which will also drive our long-term profitability.

Speaker #2: JD's high single-digit long-term margin target remains unchanged. In terms of JD Retail, we expect to see healthy growth of retail's profit in 2026. And our long-term target for JD Retail, which is a high single-digit profit margin, also remains unchanged.

Sandy Xu: Key growth drivers of this including improvement in product sales gross margin brought by our enhancing supply chain capabilities. Robust growth in high margin business such as advertising as well as continuous margin improvement in categories including supermarket. JD Retail still benefit will also continue to play out, and its operational efficiency will have further room to improve as we increasingly adopt AI technology. In terms of our investments in new businesses, for JD Food Delivery is loss narrowed by nearly 20% quarter-on-quarter in Q4. We continue to maintain its healthy scale expansion while narrowing its loss ratio with improved operating efficiency and revenue growth during the quarter. Looking at 2026, we will continue to drive healthy scale growth of the food delivery business and further unlock its synergies with core JD Retail.

Speaker #2: Key growth drivers of this include improvement in product sales gross margin, brought by our enhancing supply chain capabilities. Robust growth in high-margin business such as advertising, as well as continuous margin improvement in categories including supermarket.

Speaker #2: JD Retail's scale benefit will also continue to play out, and its operation efficiency will have further room to improve as we increasingly adopt AI technology.

Speaker #2: In terms of our investment in new businesses, for JD Food Delivery, it's more narrowed by nearly 20% quarter-on-quarter in Q4. We continue to maintain its healthy scale expansion while narrowing its loss ratio with improved operating efficiency and revenue growth during the quarter.

Speaker #2: Looking ahead to 2026, we will continue to drive healthy scale growth of the food delivery business and further unlock its synergies with core JD Retail.

Sandy Xu: If the industry competition trends towards more rationality, we expect our investment in JD Food Delivery in 2026 to decline from the 2020's 5 level. For international business we will gradually increase our investment on a controlled scale. We will maintain financial discipline in the investment. For Jingxi, it has focused on lower tier markets and the non-branded product supply. It has made meaningful penetration improvement, particularly in tier 6 and lower cities. This has helped expand our user growth boundaries as it offers differentiated product offerings from our main app. We expect to increase our investment in Jingxi a little bit, but we believe its UE to continue to improve in 2026. Delivering healthy and sustainable business growth.

Speaker #2: If the industry competition trends towards more rationality, we expect our investment in JD Food Delivery in 2026 to decline from the 2025 level. For international business, we will gradually increase our investment on a controlled scale.

Speaker #2: We will maintain financial discipline in the investment. For Jinxi, it has focused on lower-tier markets and non-branded product supply. It has made meaningful penetration improvement, particularly in Tier 6 and lower cities.

Speaker #2: This has helped expand our user growth boundaries. As it offers differentiated product offerings from our main app, we expect to increase our investment in Jinxi a little bit, but we believe its UE will continue to improve in 2026.

Speaker #2: Delivering healthy and sustainable business growth.

Ian Shan: 关 于 海 外 业 务 ， 那 Economy 的 交 易 目 前 还 在 监 管 的 审 批 过 程 当 中 ， 呃 我 们 会 及 时 和 大 家 同 步 最 新 的 交 易 进 展 。 那 Joybuy 是 京 东 在 欧 洲 的 全 品 类 电 商 零 售 平 台 ， 那 将 于 三 月 正 式 上 线 。 海 外 整 体 的 供 应 链 能 力 的 建 设 是 个 长 期 过 程 ， 那 仍 然 需 要 时 间 和 投 入 。 啊 从 我 们 的 试 运 营 来 看 ，Joybuy 的 用 户 体 验 反 馈 很 好 ， 尤 其 是 在 履 约 侧 ， 那 物 流 体 验 会 是 Joybuy 的 一 个 重 要 差 异 化 优 势 。 我 们 在 欧 洲 自 建 物 流 履 约 网 络 ， 那 Joy Express 也 已 经 上 线 ， 啊 在 英 国 、 德 国 、 法 国 、 荷 兰 等 国 家 的 主 要 城 市 实 现 当 日 达 、 次 日 达 的 极 致 体 验 ， 那 还 可 以 提 供 送 货 上 门 等 服 务 ， 呃 欢 迎 大 家 来 尝 试 。 那 协 同 上 ， 在 供 应 链 能 力 的 建 设 上 ， 我 们 在 助 力 中 国 品 牌 出 海 的 同 时 ， 也 希 望 能 将 更 多 优 质 的 欧 洲 品 牌 直 接 引 入 中 国 市 场 ， 进 一 步 提 升 我 们 的 全 球 供 应 链 能 力 。 那 在 物 流 伴 随 Joybuy 在 欧 洲 展 业 ， 零 售 和 物 流 在 海 外 业 务 的 协 同 能 力 将 进 一 步 提 升 ， 那 Joybuy 的 竞 争 壁 垒 将 更 加 的 突 出 。啊 在 技 术 上 呢 ， 京 东 会 长 期 在 技 术 系 统 的 积 累 可 以 进 一 步 赋 能 我 们 的 海 外 业 务 。

Speaker #3: 关于海外业务，Seaconomy的交易目前还在监管的审批过程当中。我们会及时和大家同步最新的交易进展。DriveBuy是京东在欧洲的全品类电商零售平台。将于3月正式上线，海外整体的供应链能力的建设是个长期过程，仍然需要时间和投入。从我们的试运营来看，DriveBuy的用户体验反馈很好，尤其是在履约侧。物流体验会是DriveBuy的一个重要差异化优势。我们在欧洲自建物流履约网络，Joy Express也已经上线。在英国、德国、法国、荷兰等国家的主要城市实现当日达、次日达的极致体验。还可以提供送货上门等服务。欢迎大家来尝试。协同上，在供应链能力的建设上，我们在助力中国品牌出海的同时，也希望能将更多优质的欧洲品牌直接引入中国市场，进一步提升我们的全球供应链能力。在物流伴随DriveBuy在欧洲展业零售和物流在海外业务的协同能力将进一步提升。DriveBuy的竞争壁垒将更加突出。 在技术上，京东会长期在技术系统的积累，可以进一步赋能我们的海外业务。

Sandy Xu: As your question about this Economy deal. At current stage, it is under regulatory review. We will update the market in due course. Joybuy is our full category online retail platform in Europe. It is scheduled to officially launch in March. Building overseas supply chain capabilities is a long-term initiative that takes time and continued efforts. Based on its trial operations, Joybuy has received a very positive user feedback, especially on the performance side. Logistics experience will be a key differentiator for Joybuy. We are building our own delivery network in Europe. JoyExpress has been launched recently. It provides same and next-day delivery in major cities across the UK, Germany, France, and the Netherlands, along with services such as door-to-door delivery. We welcome all analysts and investors to try out our services. As for synergies.

Speaker #2: As to your question about the Seaconomy deal, at the current stage, it is under regulatory review. We will update the market in due course. Joy Buy is our full-category online retail platform in Europe.

Speaker #2: It is scheduled to officially launch in March. Building overseas supply chain capabilities is a long-term initiative that takes time and continued efforts. Based on its trial operations, Joy Buy has received very positive user feedback.

Speaker #2: Especially on the fulfillment side, logistics experience will be a key differentiator for Joy Buy. We are building our own delivery network in Europe, and Joy Express has been launched recently.

Speaker #2: It provides same and next-day delivery in major cities across the UK, Germany, France, and the Netherlands. Along with services such as door-to-door delivery. We welcome all analysts and investors to try out our synergies, first, on supply chain capabilities, while helping Chinese brands expand globally, we also aim to bring more high-quality grouping brands into the Chinese market.

Sandy Xu: First, on supply chain capabilities, while helping Chinese brands expand globally, we also aim to bring more high-quality European brands into the Chinese market, further strengthening our global supply chain capabilities. Second, on logistics. As Joybuy expands in Europe, the synergy between retail and logistics in our overseas business will be further strengthened, reinforcing Joybuy's competitive edge. Third, on the technology front, JD's long-standing expertise and robust infrastructure will continue to empower our international business.

Speaker #2: Further strengthening our global supply chain capabilities. Second, on logistics, as Joy Buy expands in Europe, the synergy between retail and logistics in our overseas business will be further strengthened, reinforcing Joy Buy's competitive edge.

Speaker #2: Third, on the technology front, JD's long-standing expertise and robust infrastructure will continue to empower our international business.

Ian Shan: Next question please, operator.

Speaker #3: Next question, please, operator.

Operator: Your next question comes from Alicia Yap with Citigroup.

Speaker #4: Your next question comes from Alicia Yap with Citigroup.

Alicia Yap: Hello! Thank you. Good evening. 管理层晚上好，谢谢接受我的提问。有两个问题。第一个问题是，关于这个零售的，就考虑到今年其实零售的增长前景可能会放缓，请问管理层对京东这个日百品类的 GMV 和收入的增长有何预期？在竞争加剧消费放缓的这个背景下，京东将如何实现这个品类更快的增长呢？还有哪些具体的这个差异化的优势能够支撑这个品类的销售持续的增长？ 第二个问题是，请管理层能够分享，就是京东将如何规划和定位，以应对并把握智能代理电商即将带来的这个挑战和机遇。我翻译一下。 In light of the potential slower retail sales growth outlook this year, what is the growth rate management have in mind for your general merchandise GMV and revenue growth? How can JD continue to grow faster in this category amid the competition and also slower consumption? What are the specific differentiated areas are JD able to drive sales in this segment? Second question is that can management share your thoughts on how JD might prepare and position to embrace the upcoming threats and opportunity from the agentic commerce?

Speaker #5: Hello. Thank you. Good evening. 关于晚上好，谢谢接受我的提问。有两个问题。第一个问题是关于零售的，就考虑到今年其实零售的增长前景可能会放缓。然后请问管理层对京东这个日白品类的GMV和收入的增长有何预期？然后在竞争加剧、消费放缓的背景下，京东将如何实现品类更快的增长呢？然后还有哪些具体的差异化的优势能够支撑品类的销售持续的增长？第二个问题是请管理层能够分享京东将如何规划和定位，以应对并把握智能代理电商即将带来的挑战和机遇。我自己翻译一下。 So in light of the potential slower retail sales growth out of this year, what is the growth rate management have in mind for your general merchandise GMV and revenue growth?

Speaker #5: How can JD continue to grow faster in this category amid the competition and also slower consumption? And what are the specific differentiated areas JD is able to drive sales in this segment?

Speaker #5: And second question is that can management share your thoughts on how JD might prepare and position to embrace the upcoming threats and opportunity from the agenda commerce?

Sandy Xu: 首 先 是 关 于 日 百 品 类 的 问 题 。 刚 刚 我 也 提 到 ， 就 是 我 们 在 2026 年 依 然 预 计 日 百 品 类 保 持 健 康 的 增 长 。 我 们 往 回 看 的 话 ， 日 百 品 类 已 经 连 续 5 个 季 度 保 持 双 位 数 增 长 。 这 个 表 现 呢 明 显 好 于 行 业 的 大 盘 ， 这 也 得 益 于 我 们 持 续 建 设 的 供 应 链 能 力 和 团 队 运 营 能 力 的 显 著 提 升 。 我 们 也 为 我 们 后 续 的 持 续 增 长 奠 定 了 坚 实 的 基 础 。 2026 年 呢 ， 我 们 是 很 有 信 心 的 。 这 个 持 续 增 长 的 驱 动 力 主 要 来 自 于 几 点 。 第 一 个 呢 ， 就 是 市 场 潜 力 还 是 很 大 。 这 个 整 个 市 场 规 模 ， 商 超 、 时 尚 、 健 康 规 模 都 很 大 ， 所 以 我 们 也 有 很 大 的 增 长 空 间 。 第 二 点 呢 ， 就 是 用 户 增 长 。 我 们 在 JD Waimai 还 有 Jingxi 这 些 业 务 带 来 了 新 的 流 量 、 用 户 和 购 频 的 增 长 。 同 时 我 们 也 在 加 快 内 部 的 协 同 ， 尤 其 在 商 超 这 些 品 类 上 ， 可 以 看 到 和 JD Waimai 用 户 很 好 的 交 叉 购 买 。 第 三 个 呢 ， 就 是 在 持 续 加 强 的 供 应 链 能 力 和 用 户 心 智 。 从 品 类 维 度 看 ， 商 超 品 类 凭 借 我 们 JD.com 独 特 的 1P 模 式 ， 可 以 有 更 好 的 用 户 体 验 和 这 个 竞 争 力 更 强 的 价 格 。 时 尚 品 类 呢 ， 在 2025 年 ， 我 们 也 在 能 力 ， 包 括 搜 索 、 推 荐 、 数 据 产 品 上 面 有 明 显 的 提 升 ， 所 以 有 越 来 越 多 的 时 尚 品 牌 愿 意 和 JD.com 加 大 合 作 。 同 时 我 们 也 在 应 用 AI technology ， 在 搜 索 推 荐 上 面 实 现 更 精 准 的 个 性 化 匹 配 。 差 异 化 的 优 势 ， 首 先 还 是 JD.com 1P 模 式 的 核 心 壁 垒 ， 包 括 更 多 元 的 商 品 SKU 和 严 格 把 控 的 品 质 保 障 。 另 外 JD Logistics 也 是 我 们 的 核 心 能 力 ， 可 以 有 更 好 的 优 质 的 履 约 体 验 。 从 品 牌 的 角 度 ， 作 为 全 国 最 稳 定 的 日 销 平 台 ， 最 好 的 品 牌 建 设 品 全 生 命 周 期 ROI 最 高 的 平 台 ， 我 们 也 为 品 牌 商 带 来 稳 定 高 效 的 销 售 。

Speaker #2: 那首先是关于日白品类的问题。刚刚我也提到我们在26年依然预计日白品类保持健康的增长。我们往回看的话，日白品类已经连续五个季度保持双位数增长。这个表现明显好于行业的大盘。这也得益于我们持续建设的供应链能力和团队运营能力的显著提升。我们也为我们后续的持续增长奠定了坚实的基础。26年我们是很有信心的。这个持续增长的驱动力主要来自于几点。第一个就是市场潜力还是很大。这个整个市场规模、商超、时尚、健康规模都很大，所以我们也有很大的增长空间。然后第二点就是用户增长。我们在外卖还有惊喜这些业务带来了新的流量，用户和购品的增长。同时我们也在加快内部的协同，尤其在商超这些品类上可以看到和外卖用户很好的交叉购买。第三个就是在持续加强的供应链能力和用户心智。从品类维度看，商超品类凭借我们京东独特的自营模式，可以有更好的用户体验和竞争力更强的价格。而时尚品类在25年我们也在强能力，包括搜索推荐、数据产品上面有明显的提升。所以有越来越多的时尚品牌愿意和京东加大合作，同时我们也在应用AI技术在搜索推荐上面实现更精准的个性化匹配。差异化的优势，首先还是京东自营模式的核心壁垒。包括更多元的商品覆盖和严格把控的品质保障。另外，京东的物流也是我们的核心能力，可以有更好的优质的履约体验。然后从品牌的角度，作为全国最稳定的日销平台，最好的品牌建设在全生命周期回报率最高的平台，我们也为品牌商带来稳定高效的销售。

Sean Zhang: Thank you Alicia. For your first question on the general merchandise category, we shared in the opening remark that the category is maintaining healthy momentum. Looking back at our track record, the general merchandise category has maintained double-digit growth for the past five consecutive quarters, and notably outperforming the industry. This is driven by our evolving supply chain capability and a remarkable improvement in operation efficiency expertise. This lays a solid foundation for continued growth in this category. We remain very confident in the healthy momentum of general merchant category in 2026. The sustained growth driver includes first, huge market potential with ample room for growth in categories such as supermarket, fashion, and healthcare. Second, user growth. New business, including food delivery, 京喜, has brought growth in traffic, user, and shopping frequency on JD platform. We are also accelerating internal synergy. We have observed healthy cross-selling trend in category like supermarket. Third, continuously strengthen supply chain capability and user mind share. From a category perspective, our supermarket category leverages JD unique 1P model to deliver an excellent user experience and at the same time, competitive pricing. Meanwhile, our fashion category has seen notable improvement in building underlying capability, including search and recommendation in 2025, as well as attracting more high-quality brands to deepen their collaboration with us. We are also applying AI to achieve more precise and personalized matching in search and recommendation. In Q4 2025, we recorded double-digit year-on-year growth in both sports and outdoor apparel revenues. In terms of our differentiated advantage in this category, first and foremost, the core mode of JD 1P model is the key. This includes more diverse product selection, more competitive pricing, and more rigorous quality control. Second, leveraging on the core capability of JD Logistics, we offer high-quality fulfillment experience of faster, more accurate, and door-to-door delivery service. Third, from the brand standpoint, JD is the most consistent daily sales platform. JD is the premier destination for brand building and the platform that offers the highest returns throughout a product's entire lifecycle. We provide brands with stable and efficient sales performance.

Speaker #3: Thank you, Alicia. For your first question on the general merchandise category, we shared in the open remark that the categories maintaining healthy momentum。So looking back at our track record, the general merchandise category have maintained double-digit growth for the past five consecutive quarters.

Speaker #3: And notably, outperforming the industry. This is driven by our evolving supply chain capability and a remarkable improvement in operational efficiency expertise. This lays a solid foundation for continued growth in this category.

Speaker #3: So we are we remain very confident in the healthy momentum of general merchandise category in 2026. The sustained growth driver includes, first, huge market potential with ample room for growth in categories such as supermarket, fashion, and healthcare.

Speaker #3: Second, user growth. So new business, including food delivery and Jinxi, have brought growth in traffic, users, and shopping frequency on the JD platform. So we are also accelerating internal synergy.

Speaker #3: And we have observed healthy cross-selling trend in categories like supermarket. Third, continuously strengthen supply chain capability and user mindshare. So from a category perspective, our supermarket category leverages JD's unique 1P model to deliver an excellent user experience.

Speaker #3: And at the same time, competitive pricing. Meanwhile, our fashion category has seen notable improvement in building underlying capability, including search and recommendation in 2025, as well as attracting more high-quality brands to deepen their collaboration with us.

Speaker #3: We are also applying AI to achieve more precise and personalized matching in search and recommendation. In Q4 25, we recorded double-digit growth, year-on-year growth in both sports and outdoor apparel revenues.

Speaker #3: In terms of our differentiated advantage in these categories, first and foremost, the core moat of JD 1P model is the key in this includes more diverse product selection, more competitive pricing, and more rigorous quality control.

Speaker #3: Second, leveraging on the core capability of JD Logistics, we offer high-quality fulfillment experience. Foster, more accurate, and door-to-door delivery service. From the brand standpoint, third, from the brand standpoint, JD is the most consistent daily sales platform.

Speaker #3: JD is the premier destination for brand building and the platform that offers the highest returns throughout a product's entire lifecycle. So we provide brands with stable and efficient sales performance.

Sandy Xu: 接 下 来 关 于 这 个 agent e-commerce 的 问 题 ， 我 们 相 信 AI 和 具 体 的 和 这 个 新 的 技 术 给 我 们 带 来 的 变 革 的 机 会 远 大 于 挑 战 。 首 先 呢 ， agent e-commerce 主 要 产 生 对 前 端 流 量 入 口 的 影 响 ， 目 前 还 处 于 早 期 ， 我 们 认 为 不 论 是 前 端 流 量 如 何 变 化 ， 其 实 零 售 业 务 的 核 心 依 旧 还 是 用 户 体 验 、 成 本 和 效 率 ， 我 们 持 续 聚 焦 在 提 升 零 售 业 务 的 产 品 价 格 和 服 务 ， 因 此 JD.com 与 以 供 应 链 为 核 心 的 零 售 业 务 的 优 势 会 被 放 大 ， 这 个 护 城 河 也 会 更 深 。 同 时 呢 ， 我 们 也 在 加 大 技 术 上 的 投 入 ， 在 推 动 大 模 型 应 用 的 同 时 ， 保 持 开 放 的 态 度 ， 与 大 量 的 领 先 的 外 部 的 大 模 型 厂 商 都 在 合 作 和 测 试 。 这 第 三 点 呢 ， 是 我 们 正 在 逐 步 打 造 成 为 从 供 应 链 到 消 费 者 和 消 费 者 端 到 端 的 领 先 的 AI commerce 公 司 。 因 为 我 们 有 自 己 的 业 务 ， 同 时 我 们 也 有 物 流 和 履 约 ， JD.com 其 实 是 这 个 AI 技 术 和 最 新 的 这 些 机 器 人 robotics 技 术 应 用 场 景 最 多 的 公 司 。 这 个 远 不 是 一 个 平 台 型 的 电 商 公 司 可 以 比 的 ， 也 就 意 味 着 我 们 的 业 务 有 更 多 的 环 节 和 流 程 是 可 以 被 通 过 AI 的 应 用 来 提 升 的 。 具 体 其 实 刚 才 在 opening remarks 其 实 讲 过 一 部 分 ， 我 就 非 常 简 单 地 再 提 一 下 。 在 需 求 端 呢 ， 有 AI 的 驱 动 的 搜 索 与 推 荐 ， 可 以 重 构 重 塑 购 物 的 链 路 。 在 供 给 端 呢 ， 我 们 也 可 以 通 过 AI 来 帮 助 我 们 的 采 购 在 寻 源 、 定 价 和 库 存 管 理 上 面 持 续 地 去 提 高 ， 可 以 大 量 地 替 代 人 工 的 工 作 。 在 物 理 世 界 的 应 用 ， 比 如 说 履 约 的 自 动 化 ， 其 实 想 象 的 空 间 就 更 大 。 当 然 它 也 需 要 更 长 一 点 的 时 间 来 被 广 泛 地 应 用 。 在 售 后 服 务 像 客 服 这 些 也 已 经 广 泛 地 应 用 了 AI 技 术 。 最 后 呢 ， 就 是 通 过 运 营 的 持 续 发 力 ， 我 们 还 这 个 可 以 推 出 来 更 多 的 创 新 产 品 ， 比 如 说 在 Double 11 期 间 搭 载 我 们 叫 Yanxi 的 生 态 产 品 ， 包 括 AI 玩 具 、 机 器 人 、 硬 件 等 产 品 。

Speaker #2: 那接下来关于这个agentic commerce的问题，那我们相信AI和具体的和这个新的技术给我们带来的变革的机会远大于挑战。那首先呢，agentic commerce主要产生对前端流量入口的影响。那目前还处于早期。那我们认为不论是前端流量如何变化，其实零售业务的核心依旧还是用户体验、成本和效率。所以我们持续聚焦在提升零售业务的产品价格和服务。因此京东与以供应链为核心的零售业务的优势会被放大，这个护城河也会更深。那么同时呢，我们也在加大技术上的投入，在推动大模型应用的同时，保持开放的态度与大量的领先的外部的大模型厂商都在合作和测试。那么第三点呢，是我们正在逐步打造成为从供应链到消费者和消费者端到端的领先的AI commerce公司。那因为我们有自营的业务，同时我们也有物流和履约，所以京东其实是这个AI技术和最新的这些机器人robotics技术应用场景最多的公司。那这个远不是一个平台型的电商公司可以比的。那也就意味着我们的业务有更多的环节和流程是可以被通过AI的应用来提升的。那具体其实刚才在opening remarks其实讲过一部分，所以我就非常简单的再提一下。那么在需求端呢，有AI的驱动的搜索与推荐，可以重构重塑购物的链路。那么在供给端呢，我们也可以通过AI来帮助我们的采销在寻源、定价和库存管理上面持续的去提效。可以大量的替代人工的工作。然后在物理世界的应用，比如说履约的自动化，其实想象的空间就更大。当然它也需要更长一点的时间来被广泛的应用。那么在售后服务向客服这些也已经广泛的应用了AI技术。那最后呢，就是通过运营的持续发力，我们还这个可以推出来更多的创新产品，比如说在双十一期间搭载我们兆亿Insight的生态产品，包括AI玩具、机器人、硬件等产品。它的销量比618期间增长了超过20倍。所以我们正在通过AI来重塑京东整体的竞争优势来持续的优化用户体验。那展望未来呢，我们也已经做好了充分的准备。来通过精准把握AI的战略机遇，确立在AI电商领域的领先地位。

Ian Shan: 它 的 销 量 比 六 幺 八 期 间 增 长 了 超 过 二 十 倍 。 所 以 我 们 正 在 通 过 AI 来 重 塑 ， 呃 ， 京 东 整 体 的 竞 争 优 势 ， 来 持 续 地 优 化 用 户 体 验 。 那 展 望 未 来 呢 ， 我 们 也 已 经 做 好 了 充 分 的 准 备 ， 呃 ， 来 通 过 精 准 把 握 AI 的 战 略 机 遇 ， 确 立 在 AI 电 商 领 域 的 领 先 地 位 。

Sean Zhang: For the second question, we see AI agentic commerce as a greater opportunity for JD evolution than a challenge. First, agentic commerce is still in early stage and mainly affects the front-end user traffic. Our view is that no matter how traffic patterns change, the core retail business remain as user experience, cost, and efficiency. As we stay focused on optimizing product price and service, JD supply chain strengths will yield even greater synergy, further widening our competitive moat in the agentic era. At the same time, we are accelerating our technology investment while driving the adoption of our in-house large language model. We remain committed to an open ecosystem, actively collaborating with industry-leading external AI LLM providers. We are evolving into a leading technology commerce company, we spending entire spectrum from supply chain to customer. As JD run a one key business model with in-house fulfillment, logistics, service, capability, the technology and AI application scenario is abundant. This really differentiate us from platform business model. I'll give, I'll briefly give some example. On the demand side, we are reshaping the shopping journey and enhancing user experience through AI-driven search and recommendation. On the supply side, we leverage AI to continuously enhance operational efficiency in AI areas such as sourcing, pricing, inventory management, replacing manual labor. On the, we are also expanding our application in the physical world in terms of fulfillment, automation, and after sales services. Beyond operation, we are unlocking new consumption potential as well through applying AI such as Joy Insight, our AI agent for hardware. As I mentioned before, the sales of Joy Insight integrated product searched 20-fold during Double 11 compared to the June 18 promotion. You can see we are very proactively leveraging AI to reshape our competitive advantage and continue to optimize our user experience at the same time drive cost efficiency. Looking ahead, we are very confident and believe we are well positioned to capture the strategic AI opportunity to solidify our leadership in AI-driven e-commerce. Next question, please.

Speaker #3: 呃，for the second question we see AI energetic commerce as a greater opportunity for JD evolution than a challenge. First, agentic commerce is still in early stage and mainly affects the front-end user traffic.

Speaker #3: Our view is that no matter how traffic pattern change, the core retail business remain as user experience, cost, and efficiency. So as we stay focused on optimizing product price and service, JD supply chain strength will yield even greater synergy further widening our competitive mold in the agentic era.

Speaker #3: At the same time, we are accelerating our technology investment while driving the adoption of our in-house large language model we remain committed to a to an open ecosystem, actively collaborating with industry leading external AI LLM providers.

Speaker #3: We are evolving into a leading technology commerce company. We span the entire spectrum from supply chain to customer, as JD runs a 1P business model with in-house fulfillment logistics service capability. The technology and AI application scenario is abundant.

Speaker #3: So this really differentiates us from platform business models. I'll briefly give some examples. On the demand side, we are reshaping the shopping journey and enhancing user experience through AI-driven search and recommendation.

Speaker #3: On the supply side, we leverage AI to continuously enhance operational efficiency in AI in areas such as sourcing, pricing, imagery management, replacing manual labor.

Speaker #3: On the we are also expanding our application in the physical world physical world in terms of fulfillment automation and after-sale services. Beyond operation, we are unlocking new consumption potential as well through applying AI.

Speaker #3: Such as Joy Insight, our AI agent for hardware. As I mentioned before, the sales of Joy Insight integrated product search 24 during W11 compared to the June 18 promotion.

Speaker #3: So, you can see we are very proactively leveraging AI to reshape our competitive advantage, and continue to optimize our user experience, while at the same time driving cost efficiency.

Speaker #3: Looking ahead, we are we are very confident and and believe we are well positioned to capture the strategic AI opportunity to solidify our leadership in AI-driven e-commerce.

Speaker #3: Next question please.

Sandy Xu: Your next question comes from Thomas Chong with Jefferies.

Speaker #2: Your next question comes from Thomas Chang with Jeffreys.

Thomas Chong: 晚上好，谢谢管理层介绍我的提问。我有两个问题。第一个问题是，管理层可以分享一下我们回归股东最新的情况。第二个问题是想请教管理层关于互联网平台公司的监管环境是否出现变化，然后我们应该怎么去解读？Good evening. Thanks management for taking my question. I have two questions. First, can management share about the latest developments on shareholders return? Second, can management talk about any changes to the regulatory environment for Internet platform companies, and how should we think about it? Thank you.

Speaker #4: 晚上好，谢谢管理层接受我的提问。我有两个问题。第一个问题是管理层可以分享一下我们回归股东最新的情况。第二个问题是想请教管理层关于互联网平台公司的监管环境是否出现变化，然后我们应该怎么去解读。Good evening, thanks management for taking my question. I have two questions. First, can management share about the latest developments on shareholders' return? And second, can management talk about any changes to the regulatory environment for internet platform companies and how should we think about it?

Speaker #4: Thank you.

Ian Shan: 好 ， 谢 谢 。 呃 ， 尽 管 去 年 集 团 做 了 重 要 且 积 极 的 长 期 战 略 投 入 ， 呃 ， 我 们 仍 坚 定 地 通 过 分 红 和 回 购 合 计 回 馈 股 东 ， 呃 ， 包 括 我 们 宣 布 二 零 二 五 年 度 的 实 习 分 红 ， 每 ADS 现 金 股 利 一 美 金 ， 那 维 持 分 红 金 额 总 现 金 总 额 约 为 十 四 亿 美 金 。 呃 ， 这 个 显 示 了 我 们 基 于 长 期 盈 利 和 现 金 流 的 能 力 ， 那 为 股 东 提 供 稳 定 的 现 金 回 报 的 长 期 承 诺 。 那 同 时 我 们 在 二 零 二 五 年 回 购 的 总 金 额 为 三 十 亿 ， 相 当 于 二 零 二 四 十 二 月 三 十 日 六 点 三 ， 而 且 已 经 把 这 些 回 购 的 股 票 全 部 注 销 。 那 我 们 会 继 续 坚 定 地 通 过 公 司 业 务 的 健 康 发 展 、 分 红 以 及 回 购 回 馈 股 东 。 那 同 时 我 们 也 会 持 续 关 注 ， 呃 ， 业 务 规 模 、 利 润 和 现 金 流 的 健 康 的 增 长 趋 势 ， 呃 ， 为 股 东 创 造 价 值 ， 分 享 京 东 长 期 的 成 功 。

Speaker #3: Well, thank you. 尽管去年集团做了重要且积极的长期战略投入，我们仍坚定地通过分红和回购合计回馈股东。包括我们宣布2025年度的持续分红给ADI现金股利一美金，维持分红金额同比总现金股总额约为14亿美金。这个显示了我们基于长期盈利和现金流的能力。那为股东提供稳定的现金回报的长期承诺。那同时我们在2025年回购的总金额为30亿，相当于2024年12月30日6.3。而且已经把这些的股票全部注销。那我们会继续坚定地通过公司业务的健康发展，分红以及回购回馈股东。那同时我们也会持续关注业务规模、利润和现金流的健康的增长趋势。为股东创造价值，分享京东长期的成功。

Sandy Xu: Thank you, Thomas. Despite the long-term strategic investment we made in 2025, we remain committed to shareholder returns through both dividends and share buybacks. We declared the 2025 annual cash dividend of $1 per ADS, stable compared to last year. The total dividend amount is $1.4 billion. This underscores our commitment to delivering consistent cash returns to shareholders based on our sustainable profitability and cash flow in the long term.

Speaker #2: Thank you, Thomas. Despite the long-term strategic investment we made in 2025, we remain committed to shareholder return through both dividends and share buybacks. We declared the 2025 annual cash dividend of one US dollar per ADS.

Speaker #2: Stable compared to last year. The total dividend amount is $1.4 billion. This underscores our commitment to delivering consistent cash returns to shareholders based on our sustainable profitability and cash flow in the long term.

Sean Zhang: In addition, we repurchased $3 billion worth of shares in 2025, representing 6.3% of total outstanding shares as of the end of 2024. All the repurchase shares have been canceled. We remain firmly committed to shareholder returns through healthy business development, dividends, and share buybacks. At the same time, we will remain focused on the healthy growth of our business scale, profitability, and cash flow and make strategic investments for the long term, creating value and sharing JD's long-term success with our shareholders.

Speaker #2: In addition, we repurchased $3 billion worth of shares in 2025, representing 6.3% of total outstanding shares as of the end of 2024.

Speaker #2: All the repurchased shares have been canceled. We remain firmly committed to shareholder returns. Through healthy business development, dividends, and share buybacks, at the same time we will remain focused on the healthy growth of our business scale, profitability, and cash flow, and make strategic investments for the long term.

Speaker #2: Reaching value and sharing JD's long-term success with our shareholders.

Sandy Xu: 那 我 来 回 答 监 管 这 个 问 题. 那, 首 先 监 管 层 持 续 推 进 平 台 经 济 规 范 化 发 展, 是 有 利 于 行 业 健 康 发 展 的, 那 我 们 也 非 常 欢 迎. 政 府 支 持 企 业 合 规 发 展 这 个 态 度 没 有 变 化, 那 严 格 的 监 管 也 不 是 约 束, 而 是 推 动 行 业 高 质 量 发 展 的 契 机. 那, 京 东 也 始 终 将 合 规 经 营 作 为 企 业 发 展 的 前 提, 无 论 是 反 垄 断, 税 务 规 范 还 是 避 免 行 业 内 卷, 这 都 跟 我 们 长 期 以 来 的 合 规 经 营 理 念 是 高 度 契 合 的. 在 这 个 监 管 常 态 化 的 环 境 下, 驱 逐 两 地 合 规 的 企 业 会 得 到 更 加 公 平 的 发 展 机 会. 因 此 长 期 看, 我 们 合 规 可 持 续 的 经 营 模 式 的 优 势 将 逐 步 放 大.

Speaker #3: 那我来回答尽管这个问题。那首先尽管从持续推进平台经济规范化发展是有利于行业健康发展的。那我们也非常欢迎。那么政府支持企业合规发展这个态度没有变化，那严格的监管也不是约束，而是推动行业高质量发展的契机。那京东也始终将合规经营作为企业发展的前提，无论是反垄断、税务规范还是避免行业内卷，这都跟我们长期以来的合规经营理念是高度契合的。所以在这个监管常态化的环境下，使利弊驱逐良弊，合规的企业会得到更加公平的发展机会。因此长期看，我们合规可持续的经营模式的优势将逐步放大。

Sean Zhang: I'll take the last question. Regulators continuously promote the standardized development, the healthy development of the platform economy, ensuring sector's long-term sustainability. We welcome regulatory guidance. The government's commitment is to support compliant corporate development rather than remain unchanged. We believe rigorous oversight is not a constraint, but rather a catalyst for driving healthy, high-quality industry growth. JD has always prioritized compliant operation as the cornerstone of our business, whether it is anti-monopoly measures, tax standardization, or prevention of evolutionary competition. This effort aligns perfectly with JD's long-standing philosophy of compliance. Under a normalized regulatory environment, fair growth opportunity are created as we prevent bad money drives out good.

Speaker #4: I'll take the last question. Regulators continuously promote the standardized development. The healthy development of the platform economy ensuring sectors' long-term sustainability. So we welcome regulatory guidance.

Speaker #4: The government's commitment is to support compliant corporate development rather than remain unchanged. We believe rigorous oversight is not a constraint. But rather a catalyst for driving healthy high-quality industry growth.

Speaker #4: So JD has always prioritized compliant operation as the cornerstone of our business. Whether it is anti-monopoly measures, tax standardization, or preservation of involutionary competition, prevention of involutionary competition, this effort aligns perfectly with JD's long-standing philosophy of compliance.

Speaker #4: So under a normalized regulatory environment, fair growth opportunity is created as we prevent bad money from driving out good. So as a result, over the long term, the advantage of JD's compliant and sustainable business model will become increasingly prominent.

Sean Zhang: As a result, over the long term, the advantage of JD complying a sustainable business model will become increasingly prominent. Thank you.

Speaker #4: Thank you.

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

Speaker #2: We are now approaching the end of the conference call. I will turn the call over to JD.com Sean Zhang for closing remarks.

Sean Zhang: Thank you for joining us on the call today, and thanks for all your questions. If you have further questions, please contact me and our team. We appreciate your interest in JD.com and look forward to talking with you again next quarter. Thank you.

Speaker #4: Thank you for joining us on the call today. And thanks for all your questions. If you have further questions, please contact me and our team.

Speaker #4: We appreciate your interest in 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.