Q1 2026 JD.Com Inc Earnings Call

May 12, 2026

Operator 2: Hello, and thank you for standing by for JD.com's Q1 2026 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.

Operator: Hello, and thank you for standing by for JD.com's Q1 2026 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.

Speaker #2: Thank you. Hey, everyone. Welcome to JD.com’s first quarter 2026 earnings conference call. With us today are CEO of JD.com, Ms. Sandy Xu, and CFO, Mr. Ian Shan.

Sean Zhang: Thank you. Good day, everyone. Welcome to JD.com's Q1 2026 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, and 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 for the comparable period of 2025. Before turning the call over to Sandy, let me quickly cover the safe harbor. Please be reminded, during this call, our comments and responses to your questions reflect management's view as of today only and will include forward-looking statements. Please refer to our latest 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: 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 or comparison in this call will be against our results for the comparable period of 2025. Before turning the call over to Sandy, let me quickly cover the safe harbor.

Speaker #2: Please see reminded during this call our comments and responses to your questions reflect management's view as of today only, and 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-gap financial measures, and also please refer to the reconciliation of non-gap measures to the comparable gap measures in the earnings press release.

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

Speaker #2: Please also note all figures mentioned in this call are in R&D, unless otherwise stated. Now let me turn the call over to our CEO, Sandy.

Speaker #3: Thank you, Sean. Hello, everyone. Thank you for joining our first quarter 2026 earnings conference call. We kicked off 2026 on firm ground. In Q1, our total revenues grew by 4.9% year-on-year, marking a sequentially accelerated pace.

Sandy Xu: Thank you, Sean. Hello, everyone. Thank you for joining our Q1 2026 earnings conference call. We kicked off 2026 on firm ground. In Q1, our total revenues grew by 4.9% year on year, marking a sequentially accelerated pace as key growth drivers stayed firmly on track. We saw a sequential rebound in electronics and home appliances categories, while our general merchandise, marketplace, and marketing revenues maintained double-digit growth trajectory in the quarter. Our profitability continued to see steady growth. JD Retail's operating margin expanded by 0.7 percentage point year on year to 5.6% in the quarter, nearing historical highs. This expansion achieved against a high comparison base for margin underscores our operational resilience and healthy mix shift.

Speaker #3: As key growth drivers state firmly on track, we saw a sequential rebound in electronics and home appliances categories. While our general merchandise, marketplace, and marketing revenues maintained double-digit growth trajectory in the quarter, moreover, our profitability continued to see steady growth.

Speaker #3: JD Retail's operating margin expanded points year-on-year to 5.6% in the quarter, nearing historical highs. This, against a high comparison base for margin, underscores our operational resilience and healthy mix shift.

Speaker #3: Our new business segment also delivered a meaningful sequential loss reduction in the quarter, led by improved efficiency at JD Food Delivery, while Jinxi and International Business maintained prudent investment discipline.

Sandy Xu: Our new businesses segment also delivered a meaningful sequential loss reduction in the quarter, led by improved efficiency at JD Food Delivery, while Jingxi and international business maintained prudent investment discipline. Overall, we are pleased with this strong start to the year, with our emerging growth drivers taking solid shape, while our profitability across all segments steadily trending upward. Moving to our operational highlights, I would like to share 3 areas of robust progress we made during Q1. First, we maintained robust momentum in both user base expansion and engagement. In Q1, both our quarterly active customer and annual active customer space grew by over 20% year-on-year, with AAC hitting a new record. This growth was powered by both healthy organic user growth in core JD Retail and strategic contributions from our new businesses, including food delivery and Jingxi.

Speaker #3: Overall, we are pleased with this strong start to the year. With our emerging growth drivers taking solid shape, while our profitability across all segments steadily trending upward, moving to our operational highlights.

Speaker #3: I would like to share three areas of robust progress we made during the first quarter. First, we maintained robust momentum in both user-based expansion and engagement.

Speaker #3: In Q1, both our quarterly active customers and annual active customers base grew by over 20% year-on-year, with AAC hitting a new record. This growth was powered by both healthy organic user growth in core JD Retail and strategic contributions from our new businesses, including food delivery and Jinxi.

Speaker #3: Notably, JD Plus members are our most loyal and high-value user group, delivered another quarter of double-digit year-on-year growth in membership scale. Beyond scale, the quality of our user engagement is reaching new heights.

Sandy Xu: Notably, JD+ members, our most loyal and high-value user group, delivered another quarter of double-digit year-on-year growth in membership scale. Beyond scale, the quality of our user engagement is reaching new heights. Our quarterly customer shopping frequency rose by a notable 37% year-on-year in Q1, a powerful testament to the synergies we are successfully unlocking across our core retail engine and new businesses initiatives. This dual momentum in both scale and frequency provides a solid foundation for us to further optimize the overall value of our user ecosystem. As our user base continues its rapid growth over multiple consecutive quarters, our strategic focus is clear. Fostering deeper loyalty and driving the upward migration of user quality are the key next steps towards advancing our long-term growth roadmap. Second, our core retail business demonstrated strong resilience in Q1.

Speaker #3: Our quarterly customer shopping frequency rose by a notable 37% year-on-year in Q1. A powerful testament to the synergies we are successfully unlocking across our core retail engine and new business initiatives.

Speaker #3: This dual momentum in both scale and frequency provides a solid foundation for us to further optimize the overall value of our user ecosystem. As our user base continues its rapid growth, over multiple consecutive quarters, our strategic focus is clear: fostering deeper loyalty and driving the upward migration of user quality are the key next steps towards advancing our long-term growth roadmap.

Speaker #3: Second, our core retail business demonstrated strong resilience in Q1. We delivered revenue growth in line with expectations, while driving operating margin toward historical peaks.

Sandy Xu: We delivered revenues growth in line with expectations while driving operating margin toward historical peaks despite notable near-term headwinds, including the high trading base and rising product prices for electronics. This performance underscores the enduring strength of our supply chain-driven model, which consistently enables us to navigate market cycles while delivering a steady upward trending performance. Q1 JD Retail's revenues grew by 1.8% year-on-year, with broad-based sequential acceleration across all revenue streams. Looking at category performance in Q1, where our revenues of electronics and home appliances were down 8.4% year-on-year, this still represents a sequential improvement. Moving ahead, while we navigate ongoing external headwinds in Q2, we remain confident in a stronger performance in electronics and home appliances in H2.

Speaker #3: Despite notable near-term headwinds, including the high trade-in base and rising product prices for electronics, this performance underscores the enduring strength of our supply chain-driven model.

Speaker #3: Which consistently enables us to navigate market cycles, while delivering a steady upward trending performance. Q1 JD Retail's revenues grew by 1.8% year-on-year, with broad-based sequential acceleration across all revenue streams.

Speaker #3: Looking at category performance in Q1, while revenues of electronics and home appliances were down 8.4% year-on-year, this still represents a sequential improvement. Moving ahead, while we navigate ongoing external headwinds in Q2, we remain confident in a stronger performance in electronics and home appliances in the second half of the year.

Speaker #3: Our confidence is rooted in our continuous efforts to strengthen our supply chain capabilities. Prioritize superior user experience and drive systemic cost optimization and efficiency gains.

Sandy Xu: Our confidence is rooted in our continuous efforts to strengthen our supply chain capabilities, prioritize superior user experience, and drive systemic cost optimization and efficiency gains. Our general merchandise category remains a standout, with revenue growth accelerating sequentially to 14.9% year on year in Q1, led by supermarket, healthcare, home goods, apparel, among others. Following 6 consecutive quarters of strong double-digit growth, general merchandise has contributed over half of our total GMV, solidifying its position as an increasingly important growth driver. We maintain a positive outlook for this momentum to continue throughout 2026 as we leverage our supply chain advantages and increasing scale benefits to continue to provide our users with diversified, reliable product offerings, competitive pricing, and premium services. With a vast total addressable market and deepening user mindshare, we are well-positioned to capture the significant market opportunities ahead.

Speaker #3: Our general merchandise category remains a standout. With revenue growth accelerating sequentially to 14.9% year-on-year in Q1, led by supermarket, healthcare, home goods, apparel, among others.

Speaker #3: Following six consecutive quarters of strong double-digit growth, general merchandise has contributed over half of our total GMV, solidifying its position as an increasingly important growth driver.

Speaker #3: We maintain a positive outlook for this momentum to continue throughout 2026, as we leverage our supply chain advantages and increasing scale benefits to continue to provide our users with diversified, reliable product offerings.

Speaker #3: Competitive pricing and premium services with a vast total addressable market and deepening user man share, we are well positioned to capture the significant market opportunities ahead.

Sandy Xu: JD Retail's advertising and commission revenues have become a powerful engine for high-quality growth. We are pleased to report another quarter of strong double-digit growth in retail advertising and commission revenues for Q1. This performance served as a primary catalyst for the 18.8% year-on-year growth in our total marketplace and marketing revenues at the group level. As a high-margin business, advertising and commission continues to structurally optimize our revenue mix, providing a resilient foundation for margin expansion. We expect advertising and commission revenues to remain an important growth driver for JD Retail throughout 2026, fueled by the following factors: our supply chain strengths, expanding user base, enhanced 3P ecosystem and traffic allocation efficiency, optimized AI-powered advertising conversion, and deepening synergies across our businesses.

Speaker #3: JD Retail's advertising and commission revenues have become a powerful engine for high-quality growth. We are pleased to report another quarter of strong double-digit growth in retail advertising and commission revenues for Q1.

Speaker #3: This performance served as a primary catalyst for the 18.8% year-on-year growth in our total marketplace and marketing revenues at the group level. As a high-margin business, advertising and commission continues to structurally optimize our revenue mix, providing a resilient foundation for margin expansion.

Speaker #3: We expect advertising and commission revenues to remain an important growth driver for JD Retail throughout 2026, fueled by the following factors: our supply chain strength, expanding user base, enhanced 3P ecosystem and traffic allocation efficiency, optimized AI-powered advertising conversion, and deepening synergies across our businesses.

Speaker #3: Notably, JD food delivery business is already proving its strategic value, contributing an incremental 3% to advertising revenues in Q1. By effectively expanding our user touchpoints, food delivery is creating high-frequency monetization opportunities that complement our core retail operations.

Sandy Xu: Notably, JD Food Delivery business is already proving its strategic value, contributing an incremental 3% to advertising revenues in Q1. By effectively expanding our user touch points, Food delivery is creating high-frequency monetization opportunities that complement our core retail operations. In addition to top-line resilience, another compelling highlight this quarter is the encouraging expansion of JD Retail's profitability. Operating profit surged by 16.5% year-on-year to RMB 15 billion, reaching a record high for quarterly profit and driving operating margin to 5.6% against the challenging external complexities we outlined earlier. This is fundamentally anchored in our supply chain strengths, which continue to yield expanding economies of scale and optimized procurement efficiencies.

Speaker #3: In addition to top-line resilience, another compelling highlight this quarter is the encouraging expansion of JD Retail's profitability. Operating profit surged by 16.5% year-on-year to $15 billion R&D, reaching a record high for quarterly profit and driving operating margin to 5.6%, against the challenging external complexities we outlined earlier.

Speaker #3: This is fundamentally answered in our supply chain strengths, which continue to yield expanding economies of scale and optimized procurement efficiencies. This strength, fueled a broad-based growth margin expansion, across our categories, lifting retail's growth margin to a remarkable 18.6% in the quarter, up 1.8 percentage points year-on-year.

Sandy Xu: This strengths fueled a broad-based gross margin expansion across our categories, lifting JD Retail's gross margin to a remarkable 18.6% in the quarter, up 1.8 percentage point year on year. This margin uplift was further amplified by a favorable revenue mix shift, particularly the increased contribution from high-margin streams such as advertising and commission. We believe JD Retail's margin profile is a clear reflection of our evolving structural efficiencies, which we expect to provide further headroom for optimization going forward. Moving on to our new businesses segment. We are beginning to see the fruits of our efficiency-oriented strategy, marked by a significant sequential narrowing of losses and deepening synergies with our core retail businesses. In Q1, JD Food Delivery achieved the steepest sequential reduction in loss to date.

Speaker #3: This margin uplift was further amplified by a favorable revenue mix shift, particularly the increased contribution from high-margin streams such as advertising and commission. We believe JD Retail's margin profile is a clear reflection of our evolving structural efficiencies.

Speaker #3: Which we expect to provide further headroom for optimization going forward. Moving on to our new business segment, we are beginning to see the fruits of our efficiency-oriented strategy marked by a significant sequential narrowing of losses and deepening synergies with our core retail businesses.

Speaker #3: In Q1, JD food delivery achieved the steepest sequential reduction in loss to date, while volumes food delivery continued to improve its operating efficiency. And diversify revenue streams, resulting in material improvement in unit economics.

Sandy Xu: While sustaining healthy order volumes, JD Food Delivery continued to improve its operating efficiency and diversify revenue streams, resulting in material improvement in unit economics. This progress underscores our commitment to a rational, healthy development of the business and reinforces our clear stance against involution within the sector. We fully embrace the regulatory guidance and will continue to align our business strategy with full compliance, prioritizing operational efficiency and high quality growth as we move forward. For Jingxi and Joybuy, both initiatives advanced steadily in line with their strategic roadmap, while adhering to prudent investment discipline. Jingxi continued to deepen its penetration in lower-tier markets, particularly tier 6 and rural townships, successfully tapping into new user growth opportunities for our platform. Joybuy has seen solid momentum since its official launch in March, with order volume and user retention trending healthily.

Speaker #3: This to rational, healthy development of the business, and reinforces our clear sense against involution within the sector. We fully embrace the regulatory guidance and will continue to align our business strategy with full compliance, prioritizing operational efficiency, and high-quality growth as we move forward.

Speaker #3: For Jinxi and Joybuy, both initiatives advanced steadily in line with their strategic roadmap, while adhering to prudent investment discipline Jinxi. Continue to deepen its penetration in lower-tier markets, particularly Tier 6 and rural townships.

Speaker #3: Successfully tapping into new user growth opportunities for our platform. Joybuy has seen solid momentum since its official launch in March, with order volume and user retention trending healthily.

Speaker #3: By the end of Q1, its same and next-day delivery service spanned over 30 major European cities. Serving a population of over 40 million. Collectively, the total investment in our new businesses segment narrowed by over 30% sequentially.

Sandy Xu: By the end of Q1, its same and next day delivery service spanned over 30 major European cities, serving a population of over 40 million. Collectively, the total investment in our new businesses segment narrowed by over 30% sequentially. This was driven by our rational expansion strategy and an efficiency-first operating philosophy. Building on this solid execution in Q1, we now have clearer visibility to further deliver on our efficiency-oriented investment goals for the new business segment throughout the full year. We also continue to integrate AI across our entire value chain, from demand identification and stimulation, 1P and 3P supply sourcing, to autonomous logistics and premium customer services. In particular, we made further headway in logistics automation. In Q1, JD Logistics launched its next-generation Langzu Tech Taker robotic arm.

Speaker #3: This was driven by our rational expansion strategy, and an efficiency-first operating philosophy. Building on this solid execution in Q1, we now have clearer visibility to further deliver on our efficiency-oriented investment goals for the new business segment throughout the full year.

Speaker #3: We also continue to integrate AI across our entire value chain, from demand identification and stimulation, 1P and 3P supply sourcing, to autonomous logistics and premium customer services.

Speaker #3: In particular, we made further headway in logistics automation. In Q1, JD Logistics launched its next-generation Lanzu tacker robotic arm. This proprietary technology is optimized for handling packages of diverse sizes and shapes, as well as automated cage loading.

Sandy Xu: This proprietary technology is optimized for handling packages of diverse sizes and shapes, as well as automated cage loading. This milestone marks the successful transition of this technology from the lab to real-world operations and enables us to significantly boost our sorting efficiency and competitive edge. Additionally, our AI-powered digital human, JoyStreamer, has transitioned from a functional tool to an intelligent AI agent with the number of merchants and live streaming sessions that utilize this technology surging 10-fold year on year in Q1. Our goal is simple: to translate AI innovations into tangible retail experiences and sustainable value. We are well-positioned to lead at the forefront of AI commerce and capture the vast opportunities ahead. In summary, Q1 has been defined by strong execution and strategic consistency. Our performance across all segments has validated our roadmap, contributing to both resilient top line growth and robust profitability.

Speaker #3: This milestone marks the successful transition of this technology from the lab to real-world operations, and enables us to significantly boost our sorting efficiency and competitive edge.

Speaker #3: Additionally, our AI-powered digital human Joystreamer has transitioned from a functional tool to an intelligent AI agent, with a number of merchants and live-streaming sessions that utilize this technology surging tenfold year-on-year in Q1.

Speaker #3: Our goal is simple: to translate AI innovations into tangible retail experiences value. We are well-positioned to lead at the forefront of AI commerce and capture the vast opportunities ahead.

Speaker #3: In summary, Q1 has been defined by strong execution, and strategic consistency, our performance across all segments, has validated our roadmap, contributing to both resilient top-line growth and robust profitability.

Sandy Xu: With this solid foundation, we are confident in our full year trajectory and long-term prospects. We will maintain the operational agility necessary to proactively navigate Q2 fluctuations, including a high trading base and rising product prices for electronics, while fully leveraging our supply chain-driven model. Our commitment remains unwavering to scale our business by delivering a premium user experience with continuous cost optimization and efficiency gains. With that, let me turn the call over to Ian Shan.

Speaker #3: With this solid foundation, we are confident in our full-year trajectory and a long-term prospect we will maintain the operational agility necessary to proactively navigate Q2 fluctuations including a high trading base and rising product prices for electronics.

Speaker #3: While fully leveraging our supply chain-driven model, our commitment remains unwavering to scale our business by delivering a premium user experience with continuous cost-optimization and efficiency gains.

Speaker #3: With that, let me turn the call over to Ian.

Ian Shan: Thank you, Sandy. Hello, everyone, and thanks for joining the call today. In Q1, our strategic execution remained firmly on track as we delivered a resilient overall financial performance. Total revenues grew by 5% year-on-year, while non-GAAP net profit attributable to ordinary shareholders came in at RMB 7.4 billion, reflecting a strengthened sequential momentum across both our top and bottom lines. Notably, our JD Retail segment returned to growth this quarter while delivering healthy year-on-year profit expansion. We also recorded a significant sequential loss narrowing in our new business segment, led by consecutive loss reductions in JD Food Delivery. Alongside our resilient financial results, we remain fully committed to shareholder return.

Speaker #2: Thank you, Sandy. Hello, everyone, and thanks for joining the call today. In the first quarter, our strategic execution remained firmly on track. As we delivered a resilient overall financial performance, total revenues grew by 5% year-on-year.

Speaker #2: While non-GAAP net profit attributable to ordinary shareholders came in at RMB 7.4 billion, reflecting a strengthened sequential momentum across both our top and bottom lines.

Speaker #2: Notably, our core retail segment returned to growth. This quarter, while delivering healthy year-on-year profit expansion, we also recorded a significant sequential loss narrowing in our new business segment, led by consecutive loss reductions in full delivery.

Speaker #2: Alongside our resilient financial results, we remained fully committed to shareholder return. During the first quarter, we repurchased a total of approximately 44.5 million Class A ordinary shares, equivalent to 22.3 million ADS.

Ian Shan: During Q1, we repurchased a total of approximately 44.5 million Class A ordinary shares, equivalent to 22.3 million ADS, for a total of $631 million. This represents around 1.6% of our total ordinary shares outstanding as of 31 December 2025. In addition, we complete our annual cash dividend payment in April, totaling approximately $1.4 billion, or $1 per ADS. Our continuous execution of our shareholder return plan underscores our strong conviction in JD's long-term value creation. Now, let's go through our Q1 financial performance. Our total net revenues were up 5% year on year to RMB 316 billion in Q1.

Speaker #2: For a total of $631 million. This represents around 1.6% of our total ordinary shares outstanding as of December 31, 2025. In addition, we completed our annual cash dividend payment in April, totaling approximately $1.4 billion, or $1 per ADS.

Speaker #2: Our continuous execution of our shareholder return plan underscores our strong conviction in JD's long-term value creation, now let's go through our Q1 financial performance.

Speaker #2: Our total net revenues were up 5% year-on-year to R&B 316 billion in Q1. Breaking down the mix, product revenues were up 1% year-on-year. Driven by a 15% surge in general merchandise.

Ian Shan: Breaking down the mix, product revenues were up 1% year-on-year, driven by a 15% surge in general merchandise, which effectively cushioned the temporary decline in electronics and home appliances against a high trading base. Both categories saw sequential growth acceleration. Notably, general merchandise has extended its double-digit growth streak to 6 consecutive quarters. Within this, Supermarket outperformed by sustaining its double-digit growth momentum, which further accelerated in Q1 compared to the previous quarter. As we move ahead, we expect the impact of the high trading base and rising product price for electronics to persist in Q2, which will temper the growth trajectory of electronics and home appliances. We remain confident in a stronger performance in the H2 of the year. Service revenues grew by 21% year-on-year in Q1. Within this, marketplace and marketing revenues rose 19%.

Speaker #2: Which effectively cushioned the temporary decline in electronics and home appliances against a high trading base. Both categories saw sequential growth acceleration, notably general merchandise has extended its double-digit growth streak, to six consecutive quarters.

Speaker #2: Within this, supermarket outperformed by sustaining its double-digit growth momentum, which further accelerated in Q1. Compared to the previous quarter, as we move ahead, we expect the impact of the high trading base and rising product price for electronics to persist in Q2, which will temper the growth trajectory of electronics and home appliances, but we remain confident in a stronger performance in the second half of the year.

Speaker #2: Service revenues grew by 21% year-on-year in Q1. Within this, marketplace and marketing revenues rose, 19%. Advertising revenues remained a key driver, posting its sixth consecutive quarter of double-digit growth.

Ian Shan: Advertising revenues remained a key driver, hosting its sixth consecutive quarter of double-digit growth. By optimizing traffic allocation and conversion, we have effectively translated robust user engagement into superior ROI for our brands and merchants, a trend we expect to sustain throughout the year. Logistics and other service revenues were up 22% year on year. This growth was driven by both incremental delivery revenues from our JD Food Delivery business and the robust performance across JD Logistics' diverse service offerings. Now, let's turn to our segment performance. JD Retail revenues were up 2% year on year in Q1. While we continue to navigate near-term headwinds in electronics and home appliances, we remain confident in a H2 rebound in those categories. Meanwhile, our emerging growth drivers, including general merchandise and marketplace and marketing services, are expected to sustain their robust momentum.

Speaker #2: By optimizing traffic allocation and conversion, we have effectively translated robust user engagement into superior ROI for our brands and merchants. A trend we expect to sustain throughout the year.

Speaker #2: Logistics and other service revenues were up 22% year-on-year. This growth was driven by both incremental delivery revenues from our full delivery business and the robust performance across JD Logistics' diverse service offerings.

Speaker #2: Now, let's turn to our segment performance. JD Retail revenues were up 2% year-on-year in Q1. While we continue to navigate near-term headwinds in electronics and home appliances, we remain confident in a second half rebound in those categories.

Speaker #2: Meanwhile, our emerging growth drivers, including general merchandise and marketplace and marketing services, are expected to sustain their robust momentum. JD Retail's gross margin expanded by 1.8 percentage points year-on-year, to an impressive 18.6% in the quarter.

Ian Shan: JD Retail's gross margin expanded by 1.8 percentage points year on year to an impressive 18.6% in the quarter. This expansion was attributable to our enhanced supply chain capabilities, which led to gross margin appreciation across all major categories. In addition, it also reflected a favorable mix shift as our high-margin general merchandise and marketplace and marketing revenues outpaced the overall growth. Consequently, JD Retail's non-GAAP operating income increased by 16% year on year to RMB 15 billion in Q1, reaching the highest quarterly level for JD Retail, with operating margin rising 70 bps to 5.6%. This was achieved through a strategic balance of gross margin expansion, marketing efficiency, and increasing investment in R&D for long-term growth.

Speaker #2: This expansion was attributable to our enhanced supply chain capabilities, which led to gross margin appreciation across all major categories. In addition, it also reflected a favorable mix shift, as our high-margin general merchandise and marketplace and marketing revenues outpaced the overall growth.

Speaker #2: Consequently, JD Retail's non-GAAP operating income increased by 16% year-on-year, to R&B 15 billion. In Q1, reaching the highest quarterly level for JD Retail. With operating margin rising 70 bps to 5.6%.

Speaker #2: This was achieved through a strategic balance of gross margin expansion, marketing efficiency, and increasing investment in R&D for long-term growth. Notably, JD Retail's marketing expense ratio has declined year-on-year, for three consecutive quarters.

Ian Shan: Notably, JD Retail's marketing expense ratio has declined year on year for 3 consecutive quarters, a strong testament to the deepening synergies with our new business initiatives. Moving to JD Logistics. Its revenues grow by 29% year on year in Q1, driven by incremental contribution from food delivery. On the profitability front, JD Logistics non-GAAP operating income surged by 600% year on year in Q1. This exponential growth was driven by technological leverage from our AI and robotics initiatives, alongside broader operational optimization. In our new business, revenues came in at RMB 6.3 billion, reflecting a moderated pace due to the re-segmentation of our on-demand delivery revenues from new business to JD Logistics.

Speaker #2: A strong testament to the deepening synergies with our new business initiatives. Moving to JD Logistics, its revenues grow by 29% year-on-year in Q1. Driven by incremental contribution from full delivery.

Speaker #2: On the profitability front, JD Logistics' non-GAAP operating income surged by 600% year-on-year in Q1. This exponential growth was driven by technological leverage, from our AI and robotics initiatives, alongside broader operational optimization.

Speaker #2: In our new business, revenues came in at R&D 6.3 billion, reflecting a moderated pace due to the resegmentation of our on-demand delivery revenues from new business to JD Logistics.

Ian Shan: Non-GAAP operating loss in new business narrowed significantly on a sequential basis to CNY 10.4 billion, led by JD Food Delivery, while Jingxi and international business remained disciplined in their investments. In particular, JD Food Delivery delivered its most significant sequential loss reduction since inception, driven by its improved unit economics as we continue to boost operating efficiency and diversify revenue streams, combined with a disciplined, rational response to market dynamics. Turning to our consolidated profit performance. Group level gross margin expanded by 90 bps year-on-year to 16.8% in Q1. This expansion was primarily driven by the strong performance of JD Retail, serving as a clear validation of the structural progress as we have made in broadening and strengthening our margin drivers.

Speaker #2: Non-GAAP operating loss in new business narrowed significantly on a sequential basis, to R&B 10.4 billion. Led by JD full delivery, while Jinxi and international business remained disciplined in their investments.

Speaker #2: In particular, JD full delivery delivered its most significant sequential loss reduction since inception, driven by its improved unique economics, as we continue to boost operating efficiency.

Speaker #2: And diversified revenue streams, combined with a disciplined, rational response to market dynamics. Turning to our consolidated profit performance, group-level gross margin expanded by 90 bps year-on-year to 16.8% in Q1.

Speaker #2: This expansion was primarily driven by the strong performance of JD Retail. Serving as a clear validation of the structural progress, as we have made in broadening and strengthening our margin drivers.

Ian Shan: In terms of OPEX, total operating expense as a percentage of revenues increased year on year in the quarter, primarily reflecting increased marketing spending in JD Food Delivery and higher R&D investment to fuel our long-term growth and efficiency improvement. Consolidated non-GAAP net income attributable to ordinary shareholders was RMB 7.4 billion in Q1, representing a non-GAAP net margin of 2.3%. Regarding our liquidity, last 12 month free cash flow as of the end of Q1 stood at RMB 22 billion compared to RMB 38 billion in the prior year. This primarily reflects cash outflows associated with the trading program alongside fluctuations in operating income. By the end of Q1, our cash and cash equivalents, restricted cash and short-term investments totaled RMB 216 billion.

Speaker #2: In terms of OPEX, total operating expense as a percentage of revenues increased year-on-year, in the quarter. Primarily reflecting increased marketing spending in JD full delivery.

Speaker #2: And higher R&D investment, to fuel our long-term growth and efficiency improvement. Consolidated non-GAAP net income, attributable to ordinary shareholders, was R&B 7.4 billion in Q1.

Speaker #2: Representing a non-GAAP net margin of 2.3%. Regarding our liquidity, last 12 months free cash flow, as of the end of Q1, stood at R&B 22 billion.

Speaker #2: Compared to R&B 38 billion in the prior year. This primarily reflects cash outflows, associated with the trading program, alongside fluctuations in operating income. By the end of Q1, our cash and cash equivalents, restricted cash, and short-term investments, totaled R&B 216 billion.

Speaker #2: In summary, Q1 was another quarter that underscored the resilience and adaptability of our supply chain-driven model. We achieved a sequential acceleration in top-line growth, while successfully navigating a complex external environment.

Ian Shan: In summary, Q1 was another quarter that underscored the resilience and adaptability of our supply chain driven model. We achieved a sequential acceleration in top-line growth while successfully navigating a complex external environment. Both JD Retail and new business delivered robust profitability improvements and steadily moved along their strategic road maps. Our scalable AI applications are increasingly transforming our core assets into a distinct competitive mode in the era of AI commerce. With this solid foundation, we are firmly committed to unlocking long-term value for our shareholders. This commitment is underpinned by our proven track record of growth, a clear trend of margin expansion, and our solid shareholder returns. With that, I will turn it back to Sean. Thank you.

Speaker #2: Both JD Retail and new business delivered robust profitability improvements, and steadily moved along the strategic roadmaps. Our scalable AI applications are increasingly transforming our core assets.

Speaker #2: Into a distinct competitive mode in the era of AI commerce. With this solid foundation, we are firmly committed to unlocking long-term value for our shareholders.

Speaker #2: This commitment is underpinned by our proven track record of growth. A clear trend of margin expansion, and our solid shareholder returns. With that, our turn it back to Sean.

Speaker #2: Thank you.

Speaker #1: Thank you, Sandy and Ian, for the Q&A session. You are welcome to ask questions in English or Chinese. Our management will answer the questions in Chinese and will provide English translation for convenience purposes only.

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

Speaker #1: In any case, discrepancies, please refer to our management statement in the original language. Operator, we can open the call for Q&A now.

Speaker #3: Thank you. The question and answer session of this conference call will start in a moment. In order to be fair to all callers who wish to ask questions, we will take two questions at a time from each caller.

Operator 2: Thank you. The question and answer session of this conference call will start in a moment. In order to be fair to all callers who wish to ask questions, we will take two questions at a time from each caller. If you have more than two questions, please request to join the question queue again after your first two questions have been addressed. Your first question today comes from Kenneth Fong with UBS. Please go ahead. Hey, Sandy Xu, Ian, Sean.

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

Speaker #3: If you have more than two questions, please request to join the question queue again. After your first two questions have been addressed. Your first question today comes from Kenneth Fong with UBS.

Speaker #3: Please go ahead.

Speaker #4: Hey, Sandy Zhong, Ian, Sean,常见的业绩。我有两个问题。第一个是关于增长的。我们看到一季度尽管高技术的压力，JD Retail营业实现超预期的增长，且在3月份大盘增长放缓的背景以下，我们还是保持稳健的表现。管理层可否观察到一些消费者行为的一些变化呢？尤其是在大件品类提价的环境下，后续几个季度的增长趋势，我们应该如何展望？我第二个问题是关于利润率的。在宏观环境不确定的情况下，行业竞争加剧，以及平台的补贴增加，当然大件品类的也是在提价的背景以下，应该如何展望JD Retail的利润率的趋势呢？谢谢。我继续翻译一下。 Thank you, management, for taking my questions and congrats on the strong quarter. My first question is on the growth.

Kenneth Fong: Hey, Sandy Xu, Ian, Sean. [Foreign language]. Thank you management for taking my question and congrats on the strong quarter. My first question is on the growth that despite facing a high base in Q1, JD Retail still deliver better than expected growth and maintain solid performance even as overall market decelerate in March. Has management observed any shifts in consumer behavior, particularly in the context of price increase in electronic categories? How should we think about the growth trend over the next few quarters? My second question is about the margin. Against the backdrop of macro uncertainty, intensify industry competition and increased platform subsidies alongside with rising ASP in electronic products, how should we assess JDR margin trajectory going forward? Thank you.

Sean Zhang: 管理层可否观察到一些消费者行为的变化呢？尤其是在带电品类提价的环境以下，后续几个季度的增长趋势我们应该如何展望？我第二个问题是关于利润率的，在这个宏观环境不确定的情况以下，行业竞争加剧以及平台的补贴增加，但带电品类也是在提价的背景以下，应该如何展望JD Retail的利润率的趋势呢？谢谢。我这边翻译一下。Thank you management for taking my question and congrats on the strong quarter.

Sean Zhang: My first question is on the growth that despite facing a high base in Q1, JD Retail still deliver better than expected growth and maintain solid performance even as overall market decelerate in March. Has management observed any shifts in consumer behavior, particularly in the context of price increase in electronic categories? How should we think about the growth trend over the next few quarters? My second question is about the margin. Against the backdrop of macro uncertainty, intensify industry competition and increased platform subsidies alongside with rising ASP in electronic products, how should we assess JDR margin trajectory going forward? Thank you.

Speaker #4: Despite facing a high base in the first quarter, JD Retail still delivered better than expected growth and maintained solid performance even as overall market decelerated in March.

Speaker #4: Has management observed any shift in consumer behavior? Particularly in the context of price increase in electronic categories. How should we think about the growth trend over the next few quarters?

Speaker #4: And my second question is about the margin. Against the backdrop of macro uncertainty, intensified industry competition, and increased platform subsidies, alongside rising ASP in electronic products, how should we assess JD's margin trajectory going forward?

Speaker #4: Thank you.

Sandy Xu: 谢谢Kenny的问题，那我先回答第一个关于增长的问题。在刚刚过去的一季度，大家也看到就是我们零售的表现还是很稳健的，收入的增速也在环比改善。那么带电品类虽然增速受到国补高基数的影响，但是我们也通过我们的供应链能力和平台的性质，进一步赢得用户的信任，巩固了市场地位。那么日百品类收入增速非常强劲，保持了双位数并加速到15%，尤其是商超品类，持续九个季度双位数增长，也展现了京东在日百品类不断加强的用户心智。

Sandy Xu: [Foreign language]

Speaker #2: Cynthia, tell me the问题. 那我先回答第一个关于增长的问题。在刚刚过去的一季度，大家也看到我们零售的表现还是很稳健的，收入的增速也在环比改善。那么带电品类虽然增速受到国补高基数的影响，但是我们也通过我们的供应链能力和平台的心智进一步赢得用户的信任，巩固了市场地位。那么日白品类收入增速非常强劲，保持了双位数，并加速到15%。尤其是商超品类，持续九个季度双位数增长，也展现了京东在日白品类不断加强的用户心智。

Speaker #1: Thank you, Kenny. Let me answer your first question regarding growth. In Q1, JD Retail delivered a solid performance with revenue growth accelerating Q on Q.

Sean Zhang: Thank you, Kenny. Let me answer your first question regarding growth. In Q1, JD Retail deliver a solid performance with revenue growth accelerating quarter-on-quarter for electronics and home appliance, while our growth was impacted by the high base from trade-in subsidies last year. We leverage our supply chain capabilities and strong user mindshare to win even greater trust from user, which helped us further consolidate our market leadership. For general merchandise category revenue growth maintain a double-digit pace and further accelerated to 15% year-on-year. Notably, our Supermarket category reported double-digit growth for the ninth consecutive quarter. This clearly shows that our growing user mindshare in the general merchandise category.

Ian Shan: Thank you, Kenny. Let me answer your first question regarding growth. In Q1, JD Retail deliver a solid performance with revenue growth accelerating quarter-on-quarter for electronics and home appliance, while our growth was impacted by the high base from trade-in subsidies last year. We leverage our supply chain capabilities and strong user mindshare to win even greater trust from user, which helped us further consolidate our market leadership. For general merchandise category revenue growth maintain a double-digit pace and further accelerated to 15% year-on-year. Notably, our Supermarket category reported double-digit growth for the ninth consecutive quarter. This clearly shows that our growing user mindshare in the general merchandise category.

Speaker #1: For electronics and home appliance, while our growth was impacted by the high base from trading subsidies last year, we leveraged our supply chain capabilities and strong user mindshare to win even greater trust from users.

Speaker #1: Which helped us further consolidate our market leadership. For general merchandise category, revenue growth maintained a double-digit pace and further accelerated to 15% year on year.

Speaker #1: Notably, our supermarket category recorded double-digit growth for nine consecutive quarters. This clearly shows that our growing user mindshare in the general merchandise category.

Speaker #2: 那么关于3C和家电行业的产品价格的影响，首先受到全球存储成本上涨的影响。我们也看到从3月起，手机和电脑品类都出现了行业性的大幅涨价。此轮涨价的幅度大，覆盖面广，短期内确实会在一定程度上抑制部分的消费需求。同时销售结构加速向中高端的机型和头部品牌集中。越是在不确定的周期，京东的特殊价值就会越发凸显。我们也将发挥自营供应链的效率优势给用户带来价格和服务上面更好的体验。同时也给品牌带来更高效、更有确定性的销售。另外就是京东的确我们是对于相对高端和品牌类的商品，我们的优势也会更加明显。我们也有信心我们的市场地位会进一步提升。

Sandy Xu: 关于3C和家电行业的产品价格的影响，首先受到全球存储成本上涨的影响。我们也看到，从三月起，手机和电脑品类都出现了行业性的大幅涨价。此轮涨价的幅度大、覆盖面广，短期内确实会在一定程度上抑制部分的消费需求。同时，销售结构加速向中高端进行和头部品牌集中。越是在不确定的周期，京东的特殊价值就会越发凸显。我们也将发挥自营供应链的效率优势，给用户带来价格和服务上面更好的体验，同时也给品牌带来更高效、更有确定性的销售。另外，京东确实对于相对高端和品牌类的商品，我们的优势也会更加明显，我们也有信心我们的市场地位会进一步提升。

Sandy Xu: [Foreign language]

Speaker #1: Regarding the impact of price hikes in the 3C and home appliance industries, so yes, due to the rising memory cost, we have seen industry-wide price hikes for smartphones and PCs since March.

Sean Zhang: Regarding the impact of price hikes in the 3C and home appliance industries. Yes, due to the rising memory cost, we have seen industry wide price tags for smartphones and PCs since March. This round of price increases is sharp and widespread. In short term, it indeed dampens consumer demand to some extent. At the same time, we are seeing consumer purchase are shifting toward high, mid to high end models and top tier brands. In a challenging time, JD's unique proposition becomes even more clear. We will leverage our efficiency of our supply chain to bring user a better experience in both price and service. At the same time, we'll help brands achieve more efficient sales with greater certainty.

Ian Shan: Regarding the impact of price hikes in the 3C and home appliance industries. Yes, due to the rising memory cost, we have seen industry wide price tags for smartphones and PCs since March. This round of price increases is sharp and widespread. In short term, it indeed dampens consumer demand to some extent. At the same time, we are seeing consumer purchase are shifting toward high, mid to high end models and top tier brands. In a challenging time, JD's unique proposition becomes even more clear. We will leverage our efficiency of our supply chain to bring user a better experience in both price and service. At the same time, we'll help brands achieve more efficient sales with greater certainty.

Speaker #1: This round of price increases is sharp and widespread. So in short term, it indeed dampens consumer demand to some extent. At the same time, we are seeing consumer purchase are shifting toward high mid to high-end models and top-tier brands.

Speaker #1: So in the challenging time, JD's unique proposition becomes even more clear. We will leverage our efficiency of our supply chain to bring user a better experience in both price and service.

Speaker #1: At the same time, we'll help brand achieve more efficient sales with greater certainty. Our unique competitive edge is even more pronounced for the high-end mid to high-end models and top-tier brands.

Sean Zhang: Our unique competitive edge is even more pronounced for the high end, mid to high end models, and top tier brands. Overall, as a result, we believe our market position will further solidify.

Ian Shan: Our unique competitive edge is even more pronounced for the high end, mid to high end models, and top tier brands. Overall, as a result, we believe our market position will further solidify.

Speaker #1: So overall, as a result, we believe our market position will further solidify.

Speaker #2: 对，那展望今年后面几个季度，那在二季度的确我们会面对国补更高基数的影响。那么叠加涨价对于手机、电脑品类的消费情绪的影响，那么带电品类的销售预计还会阶段性的承压。我们也将持续强化我们的用户心智，同时帮助品牌提供更确定性的销售。那么进入到下半年，我们对增速的回升会更有信心，尤其是家电品类随着技术回归常态化，加之我们在全渠道销售网络的建设也会进一步释放销售潜力。同时我们对日白品类和广告收入的增长充满信心。京东的增长驱动力正在变得更加多元化，我们也有信心在波动中实现全年的稳健增长。

Sandy Xu: 对，那展望今年后面几个季度，那在二季度呢，的确我们会面对国补更高基数的影响，那么叠加涨价对于手机、电脑品类的消费情绪的影响，那么带电品类的销售预计还会阶段性地承压，那我们也将持续强化我们的用户心智，同时帮助品牌提供更确定性的销售。那么进入到下半年，我们对增速的回升会更有信心，尤其是家电品类，随着基数回归常态化，加之我们在全渠道销售网络的建设也会进一步释放销售潜力。那同时呢，我们对日百品类和广告收入的增长充满信心，那京东的增长驱动力正在变得更加多元化，我们也有信心在波动中实现全年的稳健增长。

Sandy Xu: [Foreign language]

Sean Zhang: Looking at the full year, the rest of the year. In Q2, sales of electronics and home appliance are expected to continue to face temporary pressure. This is due to the even higher base from trading program last year, combined with the impact of price hikes on smartphones and PCs, impacting consumer sentiment. We will continue to strengthen our mindshare while helping brands achieve more certain sales. Moving into H2 of this year, we have stronger confidence in a growth acceleration, especially for home appliance category as the comparison base returns to normal and the continuous expansion of our omni-channel sales network further create greater sales potential for home appliance category. At the same time, we are confident in the healthy growth for both general merchandise and advertising and commission revenues.

Ian Shan: Looking at the full year, the rest of the year. In Q2, sales of electronics and home appliance are expected to continue to face temporary pressure. This is due to the even higher base from trading program last year, combined with the impact of price hikes on smartphones and PCs, impacting consumer sentiment. We will continue to strengthen our mindshare while helping brands achieve more certain sales. Moving into H2 of this year, we have stronger confidence in a growth acceleration, especially for home appliance category as the comparison base returns to normal and the continuous expansion of our omni-channel sales network further create greater sales potential for home appliance category. At the same time, we are confident in the healthy growth for both general merchandise and advertising and commission revenues.

Speaker #1: year, the rest of the year, in the second quarter, sales and sales of electronics and home appliance are expected to continue to face temporary pressure.

Speaker #1: This is due to the even higher base from trading program last year, combined with the impact of price hikes on smartphones and PCs impacting consumer sentiment.

Speaker #1: We will continue to strengthen our mindshare while helping brands achieve more certain sales. Moving into the second half of this year, we have stronger confidence in a growth acceleration.

Speaker #1: Especially for home appliance category, as the comparison base returns to normal and the continuous expansion of our omnichannel sales network further create greater sales potential for home appliance category.

Speaker #1: At the same time, we are confident in the healthy growth for both general merchandise and advertising and commission revenues. JD's growth engines are becoming more diversified.

Sean Zhang: JD's growth engines are becoming more diversified. This gives us confidence to deliver healthy growth for the full year, even in a volatile year.

Ian Shan: JD's growth engines are becoming more diversified. This gives us confidence to deliver healthy growth for the full year, even in a volatile year.

Speaker #1: This gives us confidence to deliver healthy growth for the full year, even in a volatile year.

Ian Shan: 在一季度，京东零售的经营利润取得了双位数的增长，利润率也稳健地改善，达到了5.6%。这主要得益于，第一是毛利率的改善，无论成熟的3C品类，还是快速增长的日百品类，我们通过供链能力带动行业效率的提升，为品牌带来溢价的同时，也实现了自身盈利能力的改善，毛利率均实现了同比的提升。同时，营销效率也在提升，零售的市场费和费率已经连续三个季度同比优化。随着外卖、京喜等新业务有效带动整体的平台流量，我们也在更精准、更高效地配置营销资源，提升整体投入的效率。最后，我们也非常重视研发的投入，在我们毛利率和营销效率提高的同时，我们也高度重视研发的投入，尤其是在AI方面，一季度的研发费用继续明显上涨，预计在未来一段时间内，研发费用将保持持续增长的态势。我们认为这些投入将逐步转化为运营红利，实现AI驱动的效率提升，并带动整体费用结构的改善。

Kenneth Fong: [Foreign language]

Speaker #3: 在一季度，京东零售的净利润取得了双位数的增长，利润率也稳健的改善。达到了5.6%。这主要得益于第一是毛利率的改善，无论成熟的带电品类还是快速增长的日白品类，我们通过供应链能力带动行业效率的提升，为品牌带来一加的同时也实现了自身盈利能力的改善。毛利率均实现了同比的提升。同时营销效率也在提升，零售的市场费和费率已经连续三个季度同比优化。随着外卖惊喜等新业务有效带动整体的平台流量，我们也在更精准、更高效的配置营销资源，提升整体的投入的效率。最后我们也非常重视研发的投入。在我们毛利率和营销效率提高的同时，我们也高度重视研发的投入，尤其是在AI方面。一季度的研发费用继续明显上涨，预计在未来一段时间内研发费用将保持持续增长的态势。我们认为这些投入将逐步转化为运营红利，实现AI驱动的效率提升，并带动整体费用结构的改善。

Sean Zhang: In the first quarter, JD Retail achieved double-digit growth in operating profit. Its operating margin also expanded steadily to 5.6%. This was primarily driven by first growth margin expansion. For both our mature electronics and home appliances and fast-growing general merchandise categories, we have leveraged our supply chain capabilities to drive industry efficiency. While creating value for brands, we have also enhanced our own profitability, achieving year-on-year expansion in gross margins across categories. In the meantime, marketing efficiency improvement. JD Retail's marketing expense and expense ratio have seen year-on-year optimization for 3 consecutive quarters. As new businesses, including JD Food Delivery and Jingxi, effectively drive traffic growth for our platform, we are allocating marketing resources with greater precision and efficiency, thereby enhancing the overall return on our marketing expenses.

Speaker #2: In the first quarter, JD retail achieved double-digit growth in operating profit. Its operating margin also expanded steadily to 5.6%. This was primarily driven by first growth margin expansion.

Sandy Xu: In the first quarter, JD Retail achieved double-digit growth in operating profit. Its operating margin also expanded steadily to 5.6%. This was primarily driven by first growth margin expansion. For both our mature electronics and home appliances and fast-growing general merchandise categories, we have leveraged our supply chain capabilities to drive industry efficiency. While creating value for brands, we have also enhanced our own profitability, achieving year-on-year expansion in gross margins across categories. In the meantime, marketing efficiency improvement. JD Retail's marketing expense and expense ratio have seen year-on-year optimization for 3 consecutive quarters. As new businesses, including JD Food Delivery and Jingxi, effectively drive traffic growth for our platform, we are allocating marketing resources with greater precision and efficiency, thereby enhancing the overall return on our marketing expenses.

Speaker #2: For both our mature electronics and home appliances, and fast growing general merchandise categories, we have leveraged our supply chain capabilities to drive industry efficiency.

Speaker #2: While creating value for brands, we have also enhanced our own profitability. Achieving year-on-year expansion in growth margins across categories. In the meantime, marketing efficiency improvement.

Speaker #2: JD Retail's marketing expense and expense ratio have seen year-on-year optimization for three consecutive quarters. As new businesses, including JD Food Delivery and Jinxi, effectively drive traffic growth for our platform, we are allocating marketing resources with greater precision and efficiency.

Speaker #2: Thereby enhancing the overall return on our marketing expenses. Lastly, while improving our growth margin and marketing efficiency, we remain deeply committed to R&D development, particularly in AI.

Sean Zhang: Lastly, while improving our gross margin and marketing efficiency, we remain deeply committed to R&D development, particularly in AI. In Q1, our R&D expense continued to meaningfully increase and is expected to maintain an upward trend for some time ahead. We believe such investment will gradually translate to operational benefits, driving AI-powered efficiency gains and further optimizing our overall cost structure.

Sandy Xu: Lastly, while improving our gross margin and marketing efficiency, we remain deeply committed to R&D development, particularly in AI. In Q1, our R&D expense continued to meaningfully increase and is expected to maintain an upward trend for some time ahead. We believe such investment will gradually translate to operational benefits, driving AI-powered efficiency gains and further optimizing our overall cost structure.

Speaker #2: In Q1, our R&D expense continued to meaningfully increase, and it's expected to maintain an upward trend for some time ahead. We believe such investment will gradually translate to operational benefits, driving AI-powered efficiency gains, and further optimizing our overall cost structure.

Speaker #3: 未来的呢，一季度的表现会进一步验证了零售业务利润率长期稳步提升的能力。我们高个位数的长期利润率目标是坚定不变的。Again，长期的利润驱动力包括自营能力。我们会不断的加强自营供应链能力，发挥业务的规模优势，带动商品毛利率的持续稳步提升。截止Q1，零售毛利率已经连续16个季度同比提升，且仍有提升的空间。第二是品类的提升。我们能看到包括商超等品类的利润率仍有较大的提升空间。此外，带电品类随着商品结构的优化，长期来看也有利润率提升的空间。第三，平台生态。我们会持续推进平台生态的健康发展，佣金和广告等高利润率的收入快速增长，带动利润率提升。我们在变现率上仍处于行业较低水平，还有很大的提升空间。长期看，京东作为以供应链为核心的中国最大的零售企业，我们有最丰富的AI和自动化技术的应用场景。具有广大的巨大的空间可以持续提升体验，降低成本，提高效率。

Ian Shan: 未来的一季度的表现会进一步验证了零售业务利润率长期稳步提升的能力。我们高个位数的长期利润率目标是坚定不变的。again，长期的利润驱动力包括自营能力，我们会不断地加强自营供应链能力，发挥业务的规模优势，带动商品毛利率的持续稳步提升。截止Q1，零售毛利率已经连续十六个季度同比提升，且仍有提升的空间。第二，是品类的提升，我们能看到包括商超等品类的利润率仍有较大的提升空间。此外，代电品类随着商品结构的优化，长期来看也有利润率提升的空间。第三，平台生态。我们会持续推进平台生态的健康发展，佣金和广告等高利润率的收入快速增长，带动利润率提升。我们在变现率上仍处于行业较低水平，还有很大的提升空间。长期看，京东作为以供应链为核心的中国最大的零售企业，我们有最丰富的AI和自动化技术的应用场景，具有广大的巨大的空间，可以持续提升体验，降低成本，提高效率。

Kenneth Fong: [Foreign language]

Speaker #2: Looking ahead, our Q1 performance already further validates JD retail's ability to deliver steady margin expansion over time. So we remain firmly committed to our long-term high single-digit margin target.

Sean Zhang: Looking ahead, our Q1 performance already further validates JD Retail's ability to deliver steady margin expansion over time. We remain firmly committed to our long-term high-single-digit margin target. The key drivers of this include, first, our 1P capabilities will continue to enhance our 1P supply chain strength and leverage scale benefits to drive consistent product sales gross margin expansion. JD Retail's gross margin has delivered year-on-year improvement for 16 consecutive quarters, and we believe there is still upside potential. Second, category improvement. We see meaningful margin upside in categories including JD Supermarket. Additionally, as we continue to optimize the product mix within our electronics and home appliances categories, we expect further margin expansion over the long-term. Third, platform ecosystem. We will be driving the healthy development of our platform ecosystem.

Sandy Xu: Looking ahead, our Q1 performance already further validates JD Retail's ability to deliver steady margin expansion over time. We remain firmly committed to our long-term high-single-digit margin target. The key drivers of this include, first, our 1P capabilities will continue to enhance our 1P supply chain strength and leverage scale benefits to drive consistent product sales gross margin expansion. JD Retail's gross margin has delivered year-on-year improvement for 16 consecutive quarters, and we believe there is still upside potential. Second, category improvement. We see meaningful margin upside in categories including JD Supermarket. Additionally, as we continue to optimize the product mix within our electronics and home appliances categories, we expect further margin expansion over the long-term. Third, platform ecosystem. We will be driving the healthy development of our platform ecosystem.

Speaker #2: The key drivers of this include first, our 1P capabilities. We'll continue to enhance our 1P supply chain strength, and leverage skill benefits to drive consistent product sales growth margin expansion.

Speaker #2: JD retail's growth margin has delivered year-on-year improvement for 16 consecutive quarters, and we believe there is still upside potential. Second, category improvement. We see meaningful margin upside in categories including supermarket.

Speaker #2: Additionally, as we continue to optimize the product mix, within our electronics and home appliances categories, we expect further margin expansion over the long term.

Speaker #2: Third, platform ecosystem. We will be driving the healthy development of our platform ecosystem. This will support our high margin service revenues, such as commission and advertising, to grow at a robust pace.

Sean Zhang: This will support our high margin service revenues such as commission and advertising to grow at a robust pace, contributing to our overall margin expansion. That said, we are still at a lower category level compared to the industry, and we believe there is substantial potential for improvement for us. In the long term, as China's largest retailer with supply chain at its core, JD has the industry's most diverse application scenarios for AI and automation. This presents significant potential for us to continuously enhance user experience, reduce costs, and drive greater efficiencies.

Sandy Xu: This will support our high margin service revenues such as commission and advertising to grow at a robust pace, contributing to our overall margin expansion. That said, we are still at a lower category level compared to the industry, and we believe there is substantial potential for improvement for us. In the long term, as China's largest retailer with supply chain at its core, JD has the industry's most diverse application scenarios for AI and automation. This presents significant potential for us to continuously enhance user experience, reduce costs, and drive greater efficiencies.

Speaker #2: Contributing to our overall margin expansion. That said, we are still at a lower ticker level compared to the industry, and we believe there is substantial potential for improvement for us.

Speaker #2: In the long term, as China's largest retailer, with supply chain at its core, JD has the industry's most diverse application scenarios, for AI and automation.

Speaker #2: This presents significant potential for us to continuously enhance user experience, reduce cost, and drive greater efficiencies.

Speaker #3: Okay. Thank you, Kenny. We can go to the next analyst.

Sean Zhang: Okay. Thank you, Kenny. We can go to the next analyst.

Speaker #4: Your next question comes from Ronald Kang with Goldman Sachs. Please go ahead.

Operator 2: Your next question comes from Ronald Keung with Goldman Sachs. Please go ahead.

Operator: Your next question comes from Ronald Keung with Goldman Sachs. Please go ahead.

Ronald Keung: Hey.

Ronald Keung: Hey. Sandy and Haichuan. [Foreign language]

Speaker #5: Thank you, Sandy Ian Hachon. 可能两个提问，一个是国际业务，第二就想问一下AI agent这边。这个国际这边随着我们周拜现在在欧洲六个国家落地了，想看我们如何应该去如何判断这个短期内投入的力度，然后来实现一个单量的一个目标或者单量一个体量。如果从一个未来三年去想的一个中长期来讲，周拜的投入对我们新业务的这块的整体亏损会有什么影响？然后预期的这个ROI应该怎么去想？第二就想问这个AI agent现在有不同的这些AI assistant来驱动消费者的这个搜索和购买的这个决策。京东如何发挥这个作为中国最大的这个自营电商的这个零售商的这个过程，特殊的这个过程和优势？面对未来现在有agent to agent这种的交互方式和潜在的一些合作，京东在这个方面的进攻和防御的策略是有哪些？我翻译一下，thank you management for taking my question. First is about international, since that you've launched JoyBuy across six countries in Europe.

Ronald Keung: Sandy and Haichuan.

Sean Zhang: Thank you, Ronald, for your question. First on Joybuy. Joybuy was officially launched on 16 March. It leveraged JD.com's supply chain capabilities and localized operation. Now Joybuy partners with top global brands to offer European user a full category of products at competitive pricing. Backed by our self-built logistic network in Europe, Joybuy is bringing JD.com's signature same and next day delivery speed that we offer in China to European consumers. Currently, Joybuy maintains an encouragingly high user rating on Trustpilot, a leading consumer review platform. Our high quality products and excellent delivery experience are helping us winning trust of local customers.

Speaker #5: How should we frame the near-term investment intensity to drive a critical order volume scale and how do you think about the longer-term impact on a kind of next few year basis on new business loss and the ROI from this investment?

Speaker #5: Second is on AI agents, which are increasingly driving consumer search and purchasing. So how will JD leverage the unique moat as China's largest retailer in this?

Speaker #5: And what are your defensive or offensive strategies in light of agent to agent interactions and on partnerships? Thank you.

Speaker #2: 谢谢Ronald的问题。首先关于JoyBuy，JoyBuy是在3月16日正式上线。那么依托我们的供应链优势和本地化运营，目前我们与全球的优质品牌合作，向欧洲用户提供具有价格竞争力的全品类的商品供给。同时依托我们在欧洲自建的物流网络，我们也将211的物流的配送时效引入了欧洲。JoyBuy在权威用户评价网站Trustpilot上面也保持着极高的用户评分。优质的商品与卓越的履约体验已经初步赢得当地消费者的信任。

Speaker #3: Thank you, Ronald, for your question. First, on JoyBuy, JoyBuy was officially launched on March 16. So it leveraged JD supply chain capabilities and localized operation.

Speaker #3: Now JoyBuy partners with top global brands to offer European users a full category of products at competitive pricing. At the same time, backed by our self-built logistic network in Europe, JoyBuy is bringing JD's signature same and next-day delivery speed to that we offer in China to European consumers.

Speaker #3: Currently, JoyBuy maintains an encouragingly high user rating on Trustpilot, a leading consumer review platform. Our high-quality products and excellent delivery experience are helping us win trust of local customers.

Speaker #2: 那么从投入上来看，我们会按照既定的战略去推进。随着业务规模的增长，整体的投入可能会随之逐步上涨，但同时随着单量的增长，我们运营的规模效应也会逐步的显现。单军的损益也会持续的改善。所以整体我们在国际业务的投入还是有纪律性的。

Sandy Xu: 从投资角度来看，我们将按照既定策略推进。随着业务规模的增长，整体的投入可能会随之逐步上涨，但同时，随着单量的增长，我们运营的规模效应也会逐步地显现，单均的损益也会持续地改善。所以整体我们在国际业务的投入还是有纪律性的。

Sandy Xu: [Foreign language]

Sean Zhang: In terms of investment, in Q1, investment of our international business remains stable Q on Q as we keep improving operating efficiency. Over the next few quarters, we will execute our established strategy. As our business grows healthily, the overall investment may gradually increase as well. That said, as order volume grows, the economy of scale will kick in and continuously improve our unit economics. Overall, we believe our international business investment is highly manageable and remains in line with our initial expectations.

Speaker #3: In terms of investment in Q1, investment of our international business remains stable on Q2 as we keep improving operating efficiency. Over the next few quarters, we are we will execute our established strategy as our business grows healthily; the overall investment may gradually increase as well.

Speaker #3: That said, as older volume grows, the economic upscale will kick in and continuously improve our unit economics. So overall, we believe our international business investment is highly manageable and remains in line with our initial expectations.

Speaker #2: 那么展望未来的话，国际业务是京东坚定不移的长期战略。我们也会逐步的推进业务的布局和能力建设，也会在业务扩展的过程中继续遵守财务纪律，同时关注投入产出的效率，实现业务健康可持续的增长。那么在能力建设上，我们也会围绕着包括商品供应链、物流履约和技术系统这些供应链能力上去投入。那么为欧洲的消费者提供更多有竞争力的商品供给和更好的体验。那么进一步确立我们JoyBuy在欧洲的差异化优势。那么从长期来看，这些投入也将转化为用户长期留存的确定性。那么伴随规模效应逐步释放，将会提升我们长期的ROI。我们也相信凭借着京东最核心的供应链壁垒，包括高效的自营模式、叠加我们物流履约的能力，京东在全球范围内同样具有重构行业效率和用户体验的潜力。

Sandy Xu: 展望未来的话，国际业务是京东坚定不移的长期战略，我们也会逐步地推进业务的布局和能力建设，也会在业务扩展的过程中，继续遵守财务纪律，同时关注投入产出的效率，实现业务健康可持续的增长。那么在能力建设上，我们也会围绕着包括商品供应链、物流履约和技术系统这些供应链能力上去投入，为欧洲的消费者提供更多有竞争力的商品供给和更好的体验。进一步确立我们Joybuy在欧洲的差异化优势。从长期来看，这些投入也将转化为用户长期留存的确定性。伴随规模效应逐步释放，将会提升我们长期的ROI。我们也相信，凭借着京东最核心的供应链壁垒，包括高效的自营模式，叠加我们物流履约的能力，京东在全球范围内同样具有重构行业效率和用户体验的潜力。

Sandy Xu: [Foreign language]

Sean Zhang: Looking ahead, international expansion is a long-term strategy for JD. We will steadily expand our footprint and build our capabilities. In the meantime, we will strictly maintain our financial discipline and focus on ROI to drive healthy sustainable growth. In terms of capability building, we'll focus our investment on key supply chain areas, including product fulfillment, technology systems, et cetera. This will allow us to bring a more competitive price, product offering to European user, improve delivery experience, and further differentiate the Joybuy experience. Over the long run, this investment will translate into better user retention, unlock economic scale, and drive long-term ROI. We are confident that JD's core supply chain mode, especially our highly efficient 1P model combined with strong logistic capabilities, give us the potential to redefine industry efficiency and user experience on a global scale.

Speaker #3: Looking ahead, international expression is a long-term strategy for JD. We will steadily expand our footprint and build our capabilities. In the meantime, we will strictly maintain our financial discipline and focus on ROI to drive healthy sustainable growth.

Speaker #3: In terms of capability building, we'll focus on focus our investment on key supply chain areas including product fulfillment, technology systems, and etc. This will allow us to bring a more competitive price product offering to European users and improve delivery experience and further differentiate the JoyBuy experience.

Speaker #3: Over the long run, this investment will translate into better user retention and unlock economic scale and drive long-term ROI. We are confident that JD’s core supply chain moat, especially our highly efficient 1P model combined with strong logistic capabilities, gives us the potential to redefine industry efficiency and user experience on a global scale.

Speaker #2: 那么关于第二个AI的问题，我们认为首先不论技术如何演变，无论是agents来协助用户完成购买动作，还是用户自己完成，那其实零售行业的底层逻辑并不会改变。那它始终还是一体验成本效率为核心，去满足用户对产品价格服务的不断追求。这个也是京东在过去20多年深耕供应链所构筑的核心护城河。我们会利用AI、robotics、自动化这些新技术去持续的提升用户的体验，同时降低我们自己的运营成本和提升效率。这里我会举几个例子。

Sandy Xu: 关于第二个AI的问题，我们认为首先不论技术如何演变，无论是agents来协助用户完成购买动作，还是用户自己完成，其实零售行业的底层逻辑并不会改变，它始终还是以体验成本效率为核心，去满足用户对产品价格服务的不断追求。这个也是京东在过去二十多年深耕供应链所构筑的核心护城河。我们会利用AI、robotics、自动化这些新技术去持续地提升用户的体验，同时降低我们自己的运营成本和提升效率。这里我会举几个例子。

Sandy Xu: [Foreign language]

Sean Zhang: Regarding the second question on AI, we believe no matter how technology evolves, whether AI assisted shopping or the essence of retail remains unchanged. It has since always centered on delivering better user experience, lower cost, and higher efficiency, to meet users' continuous pursuit of better product, price, and service. This is also the core mode of JD that we have been building over the past 2 decades of deep investment in supply chain. Today, we are leveraging new technologies, including AI and robotics, to further enhance the user experience while reducing cost, and improving efficiency. Let me walk you through a few examples.

Speaker #3: Regarding the second question on AI, we believe no matter how technology evolves, whether AI-assisted shopping or the essence of retail remains unchanged. It has always centered on delivering better user experience, lower cost, and higher efficiency.

Speaker #3: To meet users' continuous pursuit of better product price and service, this is also the core moat of JD that we have been building over the past two decades.

Speaker #3: If investment in supply chain, today we are leveraging new technologies including AI and robotics to further enhance the user experience while reducing cost and improving efficiency.

Speaker #3: Let me walk you through a few examples.

Speaker #2: 那么在用户端或者说需求端，我们正在全面升级我们自研的AI agent精研，帮助我们更加精准的识别激发和匹配用户的需求。那么在京东的APP里面可以为用户提供更加高效便捷的购物体验。

Sandy Xu: 那么在用户端或者说需求端，我们正在全面升级我们自研的AI agent京言，帮助我们更加精准地识别、激发和匹配用户的需求。那么在京东的App里面可以为用户提供更加高效便捷的购物体验。

Sandy Xu: [Foreign language]

Speaker #3: On the demand side, we are making a comprehensive upgrade with our self-developed AI agent called Jin Yan, to help us more precisely identify, stimulate, and match consumer demands.

Sean Zhang: On the demand side, we are making a comprehensive upgrade with our self-developed AI agent called Jingyan to help us more precisely identify, stimulate, and match consumer demands. Jingyan has provide a more efficient and convenient shopping experience within the JD app.

Speaker #3: Jin Yan has provided a more efficient and convenient shopping experience within the JD app.

Speaker #2: 那么我们看到在一季度，精研的季度活跃用户数同比增长超过了200%，而用户的使用次数同比增长超过了300%。

Sandy Xu: 那么我们看到在一季度，京言的季度活跃用户数同比增长超过了200%，而用户的使用次数同比增长超过了300%。

Sandy Xu: [Foreign language]

Speaker #3: In Q1, we have seen Jin Yan demonstrate strong growth momentum with its quarterly active user growing by over 200% year on year. While the growth of user engagement was even more robust, increasing by over 300% year on year.

Sean Zhang: In Q1, we have seen Jingyan demonstrate strong growth momentum with its quarterly active user growing by over 200% year-on-year, while the growth of in user engagement was even more robust, increasing by over 300% year-on-year.

Speaker #2: 那么在内部的工作流或者说平台能力上，我们的彩票agent可以协助我们的彩票分析前端市场的需求，洞察商机，继而寻找更加合适的商家和商品，以及完成日常商家和商品的管理。库存管理、营销活动等经营动作，帮助彩票可以更加高效的运营和决策。与此同时，我们也搭建了一系列的AI工具来帮助我们平台上面的第三方商家提升他们的运营效率，包括营销素材的生成、数字人、Joy Streamer直播，还有AI客服等等。

Sandy Xu: 那么在内部的工作流或者说平台能力上，我们的采销agent可以协助我们的采销分析前端市场的需求，洞察商机，进而寻找更加合适的商家和商品，以及完成日常商家和商品的管理、库存管理、营销活动等经营动作，帮助采销可以更加高效地运营和决策。与此同时，我们也搭建了一系列的AI工具来帮助我们平台上面的第三方商家提升他们的运营效率，包括营销素材的生成、数字人JoyStreamer直播，还有AI客服等等。

Sandy Xu: [Foreign language]

Sean Zhang: On internal workflow, our procurement and sales agent can analyze front-end market demand to uncover new business opportunities and then source more suitable merchants and products. Our procurement and sales agent can also automate routine operational tasks such as merchant and product management, inventory management, and marketing activities, enabling our procurement team to operate and make decisions with greater efficiency. At the same time, we have developed a suite of AI tools to help merchants enhance their operational efficiency, including marketing, content generation, JoyStreamer, our digital human live streaming solution, and AI-powered customer service.

Speaker #3: Our procurement and sales agent can analyze front-end market demand to uncover new business opportunities, and then source more suitable merchants and products.

Speaker #3: Our procurement and sales agent can also automate routine operational tasks such as merchant and product management, inventory management, and marketing activities. Enabling our procurement team to operate and make decisions with greater efficiency.

Speaker #3: At the same time, we have developed a suite of AI tools to help merchants enhance their operational efficiency, including marketing content generation, Joy Streamer—our digital human live streaming solution—and AI-powered customer service.

Speaker #2: 那么在物流的履约端，我们也正在广泛的应用AI和机器人技术来持续提升机器人和自动化的覆盖率。目前京东狼族系列的机器人已经覆盖物流的全链路，并且在全球范围内逐步的规模化应用，逐步产生降本增效的效果。

Sandy Xu: 那么在物流的履约端到端，我们也正在广泛地应用AI和机器人技术来持续提升机器人和自动化的覆盖率。目前京东狼族系列的机器人已经覆盖物流的全链路，并且在全球范围内逐步地规模化应用，逐步产生降本增效的效果。

Sandy Xu: [Foreign language]

Sean Zhang: On the procurement side, we are broadly deploying AI and robotic technology to continuously drive up our automation and robotics coverage. Currently, JD's LangzuTech series of robots is able to cover the entire logistics chain and has been deployed at a global scale, gradually delivering cost reduction and efficiency gains.

Speaker #3: And on the fulfillment side, we are broadly deploying AI and robotic technology to continuously drive up our automation and robotics coverage. Currently, JD's Lanzu Tech series of robots is able to cover the entire logistic chain and has been deployed at a scale at a global scale.

Speaker #3: Gradually delivering cost reduction and efficiency gain.

Speaker #2: 那么可以看到我们正在通过agents的应用来打通和升级我们一个又一个的工作环节。最终将逐步串联起来整个workflow。其实也就是实现了agent to agent的形式。那么通过agents取代了很多低效的中间环节，最终实现运营效率的提升。

Sandy Xu: 那么可以看到，我们正在通过agents的应用来打通和升级我们一个又一个的工作环节，那最终将逐步串联起来整个workflow，其实也就是实现了agent to agent的形式。那么通过agents取代了很多低效的中间环节，最终实现运营效率的提升。

Sandy Xu: [Foreign language]

Speaker #3: So therefore you can see by deploying this agent, we are connecting and upgrading individual process into a seamless end-to-end workflow which essentially building an agent to agent framework.

Sean Zhang: Therefore, you can see by deploying this agent, we are connecting and upgrading individual process into a seamless end-to-end workflow, which essentially, building an agent-to-agent framework. By replacing inefficient intermediary layers, we are positioned to realize a step change in the overall efficiency. Thank you, Ronald. We can go to the next analyst.

Speaker #3: By replacing inefficient intermediary layers, we are positioned to realize step change in the overall efficiency. Thank you, Rano. We can go to the next analyst.

Operator 2: Your next question comes from Alicia Yap with Citigroup. Please go ahead.

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

Speaker #2: comes from Alicia Yap with Citigroup. Please go ahead.

Alicia Yap: 晚上好，王禹成，谢谢接受我的提问，恭喜那个强劲的业绩。两个问题。第一个问题是，随着外卖行业竞争格局的逐步改善，然后京东仍至于在这个领域持续地投入，以驱动新用户获取和业务的交叉销售。请教管理层，就是京东外卖的业务的目标，是否含实现盈利？然后此外呢，京东是否计划和友商同步地实现盈亏平衡？还是说我们会将外卖的业务视为一项长期的这个战略投资，并打算在可能较长的时间内维持小幅的这个亏损，或者是接近盈利平衡的这个状态。然后第二个问题是，管理层如何看待这个商超行业未来的这个竞争格局？因为有大型的这个连锁超市、电商，还有这个即时零售之间，请问就是未来市场份额将如何分配？然后在这些模式中，京东更倾向于布局哪种模式呢？还有哪种模式的这个压力前景会更好？此外就是说，行业的竞争格局的演变，请教管理层有哪些见解和思考。Uh, as the food delivery landscape gradually improves.

Alicia Yap: [Foreign language] As the food delivery landscape gradually improves, we understand that JD remains committed to investing in this area to drive new user acquisition and also cross-selling. Can management share whether the goal is to operate the business profitably? Or furthermore, does JD actually aim to break even at the same time as the competitors? Or does management view food delivery as a long-term strategic investment that will continue to operate at a slight loss or maybe just near a break-even point? Second question is that, what is management view on the future FMCG and also the fresh category landscape? What could be the share split between the large supermarket chain-

Speaker #4: Hello. 晚上好，管理层。谢谢接受我的提问。恭喜强劲的业绩。两个问题。第一个问题是随着外卖行业竞争格局的逐步改善，然后京东能致力于在这个领域持续的投入，以驱动新用户获取和业务的交叉销售。请教管理层，就是京东外卖的业务的目标是否还实现盈利，然后此外京东是否计划和友商同步的实现盈亏平衡，还是说我们会将外卖的业务视为一项长期的战略投资，并打算在可能较长的时间内维持小幅的亏损或者是接近盈利平衡的状态。然后第二个问题是管理层如何看待商超行业未来的竞争格局。因为有大型的连锁超市、电商，还有即时零售之间，请问未来市场份额将如何分配，然后在这些模式中，京东跟倾向于布局哪种模式呢？还有哪种模式的压力前景会更好？此外就是说行业的竞争格局的演变，请教管理层有哪些见解和思考，我自己翻译一下。As the food delivery landscape gradually improves, we understand that JD remains committed to investing in this area to drive new user acquisition and also cross-selling.

Alicia Yap: We understand that JD remains committed to investing in this area to drive new user acquisition and also cross-selling. Can management share whether the goal is to operate the business profitably? Or furthermore, does JD actually aim to break even at the same time as the competitors? Or does management view food delivery as a long-term strategic investment that will continue to operate at a slight loss or maybe just near a break-even point? Second question is that, what is management view on the future FMCG and also the fresh category landscape? What could be the share split between the large supermarket chain-

Speaker #4: So can management share whether the goal is to operate the business profitably or furthermore does JD actually aim to break even at the same time as the competitors or does management view food delivery as a long-term strategic investment that will continue to operate at a slight loss or maybe just near a break-even point?

Speaker #4: And then second question is that what is management view on the future FMCG and also the fresh category landscape? So what could be the shared split between the large supermarket chain?

Speaker #4: The online, the on-demand, the quick commerce? What will be the preferred models that JD want and which model will be more profitable? And then any views and thoughts on the competition's landscape evolving.

Sean Zhang: The online, the on demand, the quick commerce, what will be the preferred models that JD one, and which model will be more profitable? Any views and thoughts on the competition landscape evolving. Thank you.

Alicia Yap: The online, the on demand, the quick commerce, what will be the preferred models that JD one, and which model will be more profitable? Any views and thoughts on the competition landscape evolving. Thank you.

Speaker #4: Thank you.

Ian Shan: 那首先呢，就是一季度京东外卖在保持规模健康的同时，也实现了自成立以来幅度最大的环比减亏。外卖的优异模型在明显改善。那外卖收入上，随着经营改善以及广告系统的完善，那一季度外卖所产生的佣金和广告收入环比增长接近两倍。那同时面对行业的补贴竞争，我们也始终保持理性，那根据不同的用户群体，不同的地域，不断地提升精细化运营和营销的效率，并且通过供应链模式创新推进外卖的发展。那我们也在全面落实行业的监管要求，始终坚持合规经营。

Ian Shan: [Foreign language]

Speaker #3: 谢谢。那首先就是一季度京东外卖在保持规模健康的同时也实现了自己成立以来幅度最大的环比减亏。外卖的优异模型在明显改善。那外卖收入上随着经营改善以及广告系统的完善，那一季度外卖所产生的佣金和广告收入环比增长接近两倍。那同时面对行业的补贴竞争，我们也始终保持理性。那根据不同的用户群体、不同的地域，不断的提升精细化运营和营销的效率，并且通过供应链模式创新推进外卖的发展。那我们也在全面落实行业的监管要求，始终坚持合规经营。

Sean Zhang: First, in Q1 while keeping healthy order volume, JD Food Delivery achieved biggest sequential loss reduction to date with solid progress in UE improvement on food delivery's revenues as we continue to optimize operations and upgrade advertising system. Total revenues of commission and advertising surged nearly two times quarter-on-quarter in Q1. At the same time, we maintain a rational approach amidst industry-wide subsidy competition. We continue to refine our operations and marketing efficiency across different user groups and regions. Furthermore, through supply chain innovation, we are advancing the growth of this business. We also fully implement regulatory requirements and remain committed to compliant operations.

Sandy Xu: First, in Q1 while keeping healthy order volume, JD Food Delivery achieved biggest sequential loss reduction to date with solid progress in UE improvement on food delivery's revenues as we continue to optimize operations and upgrade advertising system. Total revenues of commission and advertising surged nearly two times quarter-on-quarter in Q1. At the same time, we maintain a rational approach amidst industry-wide subsidy competition. We continue to refine our operations and marketing efficiency across different user groups and regions. Furthermore, through supply chain innovation, we are advancing the growth of this business. We also fully implement regulatory requirements and remain committed to compliant operations.

Speaker #2: First, in Q1, while keeping healthy order volume, JD food delivery achieved biggest sequential loss reduction to date. With solid progress in UE improvement. On food delivery's revenues, as we continue to optimize operations and upgrade advertising system, total revenues of commission and advertising surged nearly two times on a quarter-on-quarter basis in Q1.

Speaker #2: At the same time, we maintain a rational approach amidst industry-wide subsidy competition. We continue to refine our operations and marketing efficiency across different user groups and regions.

Speaker #2: Furthermore, through supply chain innovation, we are advancing the growth of this business. We also fully implement regulatory requirements and remain committed to compliant operations.

Speaker #3: 那同时外卖业务最终一定会实现盈利的。那但是我想提醒一下京东外卖不是一个独立的业务。那我们在持续加快释放外卖的协同价值。那在用户上我们先看规模。那外卖持续的带动京东整体的流量和用户的健康增长，那Q1京东DAU和季度购买用户数同比增长均超过20%。那年活用户规模达到历史的新高。那这也促进了我们整体广告收入的增长。那看活跃度，外卖业务更好的满足了京东现有的高质量的用户的需求。带动了京东整体购品同比增长37%。那在交叉上面，外卖用户的跨品类购买行为在加强，尤其是在商超等日白品类以及京东秒送业务上。

Ian Shan: 同时，外卖这个业务最终一定会实现盈利的。但是呢，我想提醒一下，京东外卖不是一个独立的业务，那我们在持续加快释放外卖的协同价值。那在用户上，那我们先看规模，那外卖持续地带动京东整体的流量和用户的健康增长。那Q1京东DAU和季度购买用户数同比增长均超过20%，那年活用户规模达到历史的新高，那这也促进了我们整体广告收入的增长。那看活跃度呢，外卖业务更好地满足了京东现有的高质量的用户的需求，带动了京东整体购频同比增长37%。那在交叉上面，那外卖用户的跨品类购买行为在加强，尤其是在商超等日百品类以及京东秒送业务上。

Ian Shan: [Foreign language]

Speaker #2: We believe our food delivery business will eventually achieve profitability. However, JD food delivery is not a stand-alone business. We've been unlocking its synergetic value within our business ecosystem.

Sean Zhang: Believe our food delivery business will eventually achieve profitability. JD Food Delivery is not a standalone business. We will be unlocking its synergetic value within our business ecosystem. On users front, first user skill, JD Food Delivery has been driving healthy growth in traffic and user base for our platform. In Q1, both our DAU and quarterly active customers increased by over 20% year-on-year, and the number of our annual active customers reached a record high. This also contributed to our advertising revenue growth. Second, user engagement as food delivery effectively fulfills the demands of our existing high-quality users. It helps us to drive a 37% year-on-year increase in user shopping frequency on our platform. Third, cross sales. We have also seen stronger cross-category purchases among food delivery users, particularly in Supermarket categories and our on-demand retail offerings.

Sandy Xu: Believe our food delivery business will eventually achieve profitability. JD Food Delivery is not a standalone business. We will be unlocking its synergetic value within our business ecosystem. On users front, first user skill, JD Food Delivery has been driving healthy growth in traffic and user base for our platform. In Q1, both our DAU and quarterly active customers increased by over 20% year-on-year, and the number of our annual active customers reached a record high. This also contributed to our advertising revenue growth. Second, user engagement as food delivery effectively fulfills the demands of our existing high-quality users. It helps us to drive a 37% year-on-year increase in user shopping frequency on our platform. Third, cross sales. We have also seen stronger cross-category purchases among food delivery users, particularly in Supermarket categories and our on-demand retail offerings.

Speaker #2: On users' front, first, user skill, JD food delivery has been driving healthy growth in traffic and user base for our platform. In Q1, both our DAU and quarterly active customers increased by over 20% year-on-year.

Speaker #2: And the number of our annual active customers reached a record high. This also contributed to our advertising revenue growth. Second, user engagement. As food delivery effectively fulfills the demands of our existing high-quality users, it helped to drive a 37% year-on-year increase in user shopping frequency on our platform.

Speaker #2: Third, cross-sales. We've also seen stronger cross-category purchases among food delivery users, particularly in supermarket categories and our on-demand retail offerings.

Ian Shan: 在供给上，外卖丰富了京东上面基于地理位置，包括餐饮、商超、日百等多品类商品和商家的供给，也可以更好地加强我们和品牌的合作关系。在履约上，我们正在打通和测试外卖履约和物流的协同效应，打造高效的最后一公里的配送的基础设施，提升京东即时配送的能力和效率，并且促进物流运营和管理的进一步协同和提升。

Ian Shan: [Foreign language]

Speaker #3: 在供给上，外卖丰富了京东上面其余地理位置，包括餐饮、商超、日白等多品类商品和商家的供给。那也可以更好的加强我们和品牌的合作关系。那在履约上，我们正在打通和测试外卖履约和物流的协同效应，打造高效的最后一公里的配送的基础设施，提升京东即时配送的能力和效率。那并且促进物流运营和管理的进一步协同和提升。

Speaker #2: On the supply side, food delivery also enriches the location-based supply. On our platform, spending categories from dining and supermarket to general merchandise. This also enables us to deepen partnerships with merchants and brands.

Sean Zhang: On the supply side, food delivery also enriches the location-based supply on our platform, spanning categories from dining and supermarket to general merchandise. This also enables us to deepen partnerships with merchants and brands. On the fulfillment side, we will be unlocking and testing synergies between food delivery and logistics fulfillment to develop a robust last-mile infrastructure. This not only enhances our on-demand delivery capacity, but accelerates the coordination and optimization of our overall logistics operations and management.

Sandy Xu: On the supply side, food delivery also enriches the location-based supply on our platform, spanning categories from dining and supermarket to general merchandise. This also enables us to deepen partnerships with merchants and brands. On the fulfillment side, we will be unlocking and testing synergies between food delivery and logistics fulfillment to develop a robust last-mile infrastructure. This not only enhances our on-demand delivery capacity, but accelerates the coordination and optimization of our overall logistics operations and management.

Speaker #2: On the fulfillment side, we've been unlocking and testing synergies between food delivery and logistics fulfillment to develop a robust last-mile infrastructure. This not only enhances our on-demand delivery capacity, but accelerates the coordination and optimization of our overall logistics operations and management.

Speaker #3: 那外卖和即时零售是京东重要的长期战略方向。我们会以长期的视角推动业务的健康发展。

Ian Shan: 外卖和即时零售是京东重要的长期战略方向，我们会长期的视角推动业务的健康发展。

Ian Shan: [Foreign language]

Speaker #2: Food delivery and on-demand retail are long-term strategies for JD. We will drive healthy development of the businesses through a long-term perspective. 我想回答Alisha关于FM商超的问题。那首先，中国的商超业态具有巨大的市场规模，体量近10万亿元的级别。但是目前市场格局还是呈现高度分散的特征，这也就意味着在效率和成本上面还有很大的优化空间。那这也让我们看到这个行业的线上渗透率也有广阔的提升空间。那既有以京东超市为代表，深更确定性体验的自营电商模式也有偏重丰富度的平台电商模式，同时这两年即时零售也在快速的发展。那这些模式并非简单的此消彼长，而是通过在效率、时效、丰富度的不同侧重，在更多维度上满足了用户在不同场景下的商超消费需求。

Sean Zhang: Full delivery and on-demand retail are long term strategies for JD. We will drive healthy development of the businesses through a long term perspective.

Sandy Xu: Full delivery and on-demand retail are long term strategies for JD. We will drive healthy development of the businesses through a long term perspective.

Sandy Xu: 好，我来回答Alicia关于FMCG商超的问题。首先，中国的商超业态具有巨大的市场规模，体量近十万亿元的级别，但是目前市场格局还是呈现高度分散的特征，这也就意味着，在效率和成本上面还有很大的优化空间。这也让我们看到，这个行业的线上渗透率也有广阔的提升空间。既有以京东超市为代表、深耕确定性体验的自营电商模式，也有偏重丰富度的平台电商模式。同时这两年即时零售也在快速的发展。这些模式并非简单的此消彼长，而是通过在效率、时效、丰富度的不同侧重，在更多维度上满足了用户在不同场景下的商超消费需求。

Sandy Xu: [Foreign language]

Speaker #3: 那Let me answer Alisha's second question on supermarket. So first, China supermarket sector has a massive market size, nearing 10 trillion RMB in scale, yet it remains highly fragmented.

Sean Zhang: Let me answer Alicia's second question on supermarket. First, China supermarket sector has a massive market size nearing RMB 10 trillion in scale yet it remains highly fragmented. This indicates significant room for potential cost optimization and efficiency gain as well as for the growth in online penetration. Within the supermarket category, we operate multiple models, including one key model which focus on delivering a reliable consumer experience. Three key platform model which offers selection and diversity, and additionally the on-demand retail model which has been growing rapidly on JD in recent years. These models are not simply replacing one another. Instead, they address diverse consumer demands across different shopping scenario by emphasizing distinct advantage in efficiency, timelessness, and selection.

Speaker #3: So this indicates significant room for potential cost optimization and efficiency gain as well as for the growth in online penetration. Within the supermarket category, we operate multiple models, including 1P model, which focuses on delivering a reliable consumer experience; 3P platform model, which offers selection and diversity; and additionally, the on-demand retail model, which has been growing rapidly on JD in recent years.

Speaker #3: So these models are not simply replacing one another. Instead, they address diverse consumer demands across different shopping scenarios by emphasizing distinct advantages in efficiency, timelessness, and selection.

Speaker #2: 那么京东超市作为深耕供应链的B2C零售商，在商品的选择、供应链及仓储管理、成本价格的优势以及用户体验上有巨大的优势。那尽管行业的竞争激烈，作为中国规模最大的超市，京东超市也展现出了极强的增长韧性。已经连续实现9个季度的收入双位数的稳健增长。那关于盈利能力，我们也通过发挥规模的优势和供应链能力在持续提升超市的盈利能力。那么展望未来，京东超市在毛利率、履约费用率等方面都还有很大的提升空间。那我们也将继续保持稳健增长的同时，逐步提升我们的盈利能力。那我们也很有信心，我们的规模优势会进一步释放出它的效果。那我们相信最终商超行业的竞争也会回归到体验成本效率的本质。那么京东超市凭借不断提升的自营供应链能力，可以为用户提供更好的商品、更低的价格，同时也能够帮助品牌持续带来确定性的增量销售。那我们对京东超市长期健康增长充满信心，它也会成为我们未来几年重要的增长驱动力。

Sandy Xu: 那么京东超市作为深耕供应链的B2C零售商，在商品的选择、供应链及仓储管理、成本价格的优势以及用户体验上有巨大的优势。那尽管行业的竞争激烈，作为中国规模最大的超市，那京东超市也展现出了极强的增长韧性，已经连续实现九个季度的收入双位数的稳健增长。那关于盈利能力，我们也通过发挥规模的优势和供应链能力，在持续提升超市的盈利能力。那么展望未来，京东超市在毛利率、履约费用率等方面都还有很大的提升空间，那我们也将继续保持稳健增长的同时，逐步提升我们的盈利能力。那我们也很有信心，我们的规模优势会进一步释放出它的效果。那我们相信最终商超行业的竞争也会回归到体验成本效率的本质。那么京东超市凭借不断提升的经营供应链能力，可以为用户提供更好的商品、更低的价格，同时呢，也能够帮助品牌持续带来确定性的增量销售。那我们对京东超市长期健康增长充满信心，它也会成为我们未来几年重要的增长驱动力。

Sandy Xu: [Foreign language]

Speaker #3: As a B2C retailer with deep supply chain expertise, JD supermarket holds significant competitive advantage across product selections, supply chain, and warehouse management. Cost and price competitiveness and user experience despite intense market competition, as the largest supermarket in China, JD supermarket has demonstrated remarkable growth resilience, achieving double-digit revenue growth for nine consecutive quarters.

Sean Zhang: As a B2C retailer with deep supply chain expertise, JD Supermarket holds significant competitive advantage across product selections, supply chain and warehouse management, cost and price competitiveness and user experience. Despite intense market competition as the largest supermarket in China, JD Supermarket has demonstrated remarkable growth resilience, achieving double-digit revenue growth for nine consecutive quarter. On profitability, we continue to enhance the profitability of Supermarket category by leveraging our scale advantage and supply chain capabilities. Looking ahead, we still see substantial runway for improvement in both gross margin, our fulfillment expense ratio, allowing us to unleash results from our scale and sustain steady growth while gradually expanding our profitability. We believe that competition in Supermarket sector will ultimately return to the focus on user experience, cost and efficiency by leveraging our continuously improving self-operated supply chain capability.

Speaker #3: On profitability, we continue to enhance the profitability of supermarket category by leveraging our scale advantage and supply chain capabilities. Looking ahead, we still see substantial runway for improvement in both gross margin and our fulfillment expense ratio, allowing us to unleash results from our scale and sustain steady growth while gradually expanding our profitability.

Speaker #3: We believe that competition in supermarket sector will ultimately return to the focus on user experience, cost, and efficiency. By leveraging our continuously improving self-operated supply chain capability, JD supermarket delivers better product at lower price to customer, while helping brands achieve consistent and incremental sales.

Sean Zhang: JD Supermarket delivers better product at lower price to customer while helping brands achieve consistent and incremental sales. We are highly confident that in the long term healthy growth of supermarket, which is becoming a key growth engine for us in the coming years. Thank you, Alicia. Let's go to the next analyst, please.

Speaker #3: We are highly confident that in the long term, healthy growth in the long term, healthy growth of supermarket, which is becoming a key growth engine for us in the coming years.

Speaker #3: Thank you, Alisha. Let's go to the next analyst, please.

Speaker #2: Your next question comes from Thomas Chong with Jeffreys. Please go ahead. Thomas Chong, your line is now live. Please proceed with your question.

Operator 2: Your next question comes from Thomas Chong with Jefferies. Please go ahead.

Operator: Your next question comes from Thomas Chong with Jefferies. Please go ahead.

Speaker #4: 晚上好，谢谢管理层接受我的提问。为了两个问题，第一个是管理层可以分享一下公司在平台生态的进展，包括我们3P商家在数量、占比，还有未来几个季度的预期。第二个问题是管理层可以分享一下我们回馈股东最新的情况。Hi, good evening. Thanks, management, for taking my questions. I have two questions. My first question is about the latest updates about our ecosystem strategies, including number of 3P merchants, contribution, as well as the outlook over the next few quarters.

Thomas Chong: 晚上好，谢谢管理层接受我的提问。问有两个问题，第一个是管理层可以分享一下公司在平台生态的进展

Thomas Chong: [Foreign language]

Sean Zhang: 包括我们3P商家的数量占比，还有未来几个季度的预期。第二个问题是，帮你可以分享一下我们回归股东最新的情况。Hi, good evening, thanks management for taking my questions. I have 2 questions. My first question is about the latest updates about our ecosystem strategies, including number of 3P merchants, contribution as well as the outlook over the next few quarters. My second question is about capital return. Can management share the latest updates about the return to shareholders? Thank you.

Thomas Chong: Hi, good evening, thanks management for taking my questions. I have 2 questions. My first question is about the latest updates about our ecosystem strategies, including number of 3P merchants, contribution as well as the outlook over the next few quarters. My second question is about capital return. Can management share the latest updates about the return to shareholders? Thank you.

Speaker #4: And my second question is about capital return. Can management share the latest updates about the return-to-shareholders? Thank you.

Speaker #3: Okay. 京东的平台生态的核心始终是围绕体验成本和效率的。那通过不同的模式为用户提供最优的产品价格和服务的组合，满足多样化的体验需求。我们的生态建设取得了不错的进展，那和大家分享一季度各项指标保持快速的增长势头。那一季度京东活跃商家数保持同比三位数的增速，我们引入了更多的优质品牌和产业代商家，为用户提供更丰富的商品供给。那同时外卖业务也给我们带来了大量的品质的餐饮的商家，进一步扩宽了我们的服务领域。我们也看到了用户的积极反馈。那京东3P购买的用户数的增速持续的跑赢大盘。那这也带动了3P订单量的快速增长。那一季度3P的单量占比超过50%。

Ian Shan: 京东的平台生态的核心始终是围绕体验、成本和效率的，通过不同的模式为用户提供最优的产品价格和服务的组合，满足多样化的体验需求。我们的生态建设取得了不错的进展，和大家分享一季度各项指标保持快速的增长势头。一季度京东活跃商家数保持同比三位数的增速，我们引入了更多的优质品牌和产业带商家，为用户提供更丰富的商品供给。同时外卖业务也给我们带来了大量的品质的餐饮的商家，进一步扩宽了我们的服务领域。我们也看到了用户的积极反馈，京东3P购买的用户数的增速持续地跑赢大盘，这也带动了3P订单量的快速增长。一季度3P的单量占比超过50%。

Ian Shan: [Foreign language]

Sean Zhang: Our platform ecosystem always centers on user experience, lower cost, and enhanced efficiency. By leveraging different business models, we provide the best combination of products, price, and services to meet diverse consumer needs. We have made solid progress in our platform ecosystem development. Let me share a few key indicators that maintain rapid growth in Q1. First, our active merchant base. It maintained a triple-digit year-on-year growth rate in Q1. We've onboarded more high-quality brands and industrial merchant providing users with a more diverse product supply. Meanwhile, our food delivery business has also brought in a large number of quality restaurant merchants, further expanding our service scope. Second, users. We have seen positive feedback from users. The number of users who shop 3 key offerings on our platform grow at a fast pace, outpacing the growth of our total users.

Speaker #2: Our platform ecosystem always centers on user experience, lower cost, and enhanced efficiency. By leveraging different business models, we provide the best combination of products, price, and services, to meet diverse consumer needs.

Sandy Xu: Our platform ecosystem always centers on user experience, lower cost, and enhanced efficiency. By leveraging different business models, we provide the best combination of products, price, and services to meet diverse consumer needs. We have made solid progress in our platform ecosystem development. Let me share a few key indicators that maintain rapid growth in Q1. First, our active merchant base. It maintained a triple-digit year-on-year growth rate in Q1. We've onboarded more high-quality brands and industrial merchant providing users with a more diverse product supply. Meanwhile, our food delivery business has also brought in a large number of quality restaurant merchants, further expanding our service scope. Second, users. We have seen positive feedback from users. The number of users who shop 3 key offerings on our platform grow at a fast pace, outpacing the growth of our total users.

Speaker #2: We've made solid progress in our platform ecosystem development. Let me share a few key indicators that maintain rapid growth in Q1. First, our active merchant base.

Speaker #2: It maintained a triple-digit year-on-year growth rate in Q1, with onboarded more high-quality brands and industrial-belt merchants. Providing users with a more diverse product supply.

Speaker #2: Meanwhile, our food delivery business has also brought in a large number of quality restaurant merchants. Further expanding our service scope. Second, users. We've seen positive feedback from users.

Speaker #2: The number of users who shopped 3P offerings on our platform rose at a fast pace. Outpacing the growth of our total users. This also supported the fast growth of 3P order volume.

Sean Zhang: This also supported the fast growth of three key order volume, which accounted for over 50% of our total orders in Q1.

Sandy Xu: This also supported the fast growth of three key order volume, which accounted for over 50% of our total orders in Q1.

Speaker #2: Which accounted for over 50% of our total orders in Q1.

Speaker #3: 那从财务结果看，那Q1 3P的GMV增速快于大盘。那更重要的是我们的佣金及广告收入已经连续六个季度实现了双位数的增长。那这种高利润率的收入占比的持续提升，正带动京东整体盈利能力的改善。长期来看，我们相信3P的GMV占比将会超过自营。那平台生态也将成为支撑京东收入增长和利润扩张的重要驱动力。

Ian Shan: 从财务结果看，Q1 3P的GMV增速快于大盘。更重要的是，我们的佣金及广告收入已经连续六个季度实现了双位数的增长。这种高利润率的收入占比的持续提升，正带动京东整体盈利能力的改善。长期来看，我们相信3P的GMV占比将会超过自营，平台生态也将成为支撑京东收入增长和利润扩张的重要驱动力。

Ian Shan: [Foreign language]

Speaker #2: From a financial perspective, in Q1, our 3P GMV grew faster than 1P and total GMV. More importantly, our marketplace and marketing revenues have delivered double-digit growth for six consecutive quarters.

Sean Zhang: From a financial perspective, in Q1, our 3PGMV grow faster than 1P and total GMV. More importantly, our marketplace and marketing revenues have delivered double-digit growth for six consecutive quarters. The increasing contribution from these high-margin revenue streams continues to drive our overall profitability. Over the long term, we believe 3PGMV contribution will surpass 1P. Our platform ecosystem will become a key driver for both our revenue growth and margin expansion.

Sandy Xu: From a financial perspective, in Q1, our 3PGMV grow faster than 1P and total GMV. More importantly, our marketplace and marketing revenues have delivered double-digit growth for six consecutive quarters. The increasing contribution from these high-margin revenue streams continues to drive our overall profitability. Over the long term, we believe 3PGMV contribution will surpass 1P. Our platform ecosystem will become a key driver for both our revenue growth and margin expansion.

Speaker #2: The increase in contribution from these high-margin revenue streams continues to drive our overall profitability. Over the long term, we believe 3P GMV contribution will surpass 1P.

Speaker #2: Our platform ecosystem will become a key driver for both our revenue growth and margin expansion.

Speaker #3: 那关于回馈股东，那今年一季度公司回购了约4,450万的普通股，差不多2,230万的ADRs。那回购总额是6.3亿美金。那相当于截止2025年12月31日流通股数的1.6%。那还剩余接近14亿美金。明年8月到期，预期我们会按照节奏进行。那同时公司也在3月宣布了2025年的年度的现金股利已经按照计划在4月完成派发。那和每ADRs派息1美金。那展望未来，我们将继续坚定地通过分红和回购回购股东。那与此同时，我们也会持续关注业务规模、利润和现金流的长期健康的增长趋势。那通过不同的方式和股东分享京东业务的成功。

Ian Shan: 关于回馈股东，今年一季度公司回购了约4,450万的普通股，差不多2,230万的ADS，回购总额是6.3亿美金，相当于截止2025年12月31日流通股数的1.6%。还剩余接近14亿美金，明年八月到期。预期我们会按照节奏进行。同时，公司也在三月宣布了2025年的年度的现金股利，已经按照计划在四月完成派发，每ADS派息1美金。展望未来，我们将继续坚定地通过分红和回购回馈股东。与此同时，我们也会持续关注业务规模、利润和现金流的长期健康的增长趋势，通过不同的方式和股东分享京东业务的成功。

Ian Shan: [Foreign language]

Speaker #2: Regarding shareholder return, in the first quarter, we repurchased a total of around 44.5 million ordinary shares. Equivalent to 22.3 million ADRs. For a total of US$631 million.

Sean Zhang: Regarding shareholder return. In the first quarter, we repurchased a total of around 44.5 million ordinary shares, equivalent to 22.3 million ADS for a total of $631 million, representing 1.6% of our total ordinary shares outstanding as of the end of 2025. The remaining amount of our ongoing repurchase program is $1.4 billion, and the expiry date will be in August next year. We expect to continue to execute our share buyback at planned pace. In addition, we announced the annual cash dividend of $1 per ADS for the year of 2025 in March and completed payment in April as planned. Going forward, we remain committed to returning value to our shareholders through dividends and share buybacks.

Sandy Xu: Regarding shareholder return. In the first quarter, we repurchased a total of around 44.5 million ordinary shares, equivalent to 22.3 million ADS for a total of $631 million, representing 1.6% of our total ordinary shares outstanding as of the end of 2025. The remaining amount of our ongoing repurchase program is $1.4 billion, and the expiry date will be in August next year. We expect to continue to execute our share buyback at planned pace. In addition, we announced the annual cash dividend of $1 per ADS for the year of 2025 in March and completed payment in April as planned. Going forward, we remain committed to returning value to our shareholders through dividends and share buybacks.

Speaker #2: Representing 1.6% of our total ordinary shares outstanding as of the end of 2025. The remaining amount of our ongoing repurchase program is US$1.4 billion.

Speaker #2: And the expiry date will be in August next year. We expect to continue to execute our share buyback as planned pace. In addition, we announced the annual cash dividend of $1 per ADRs for the year of 2025 in March.

Speaker #2: And completed payment in April as planned. Going forward, we remain committed to returning value to our shareholders through dividends and share buybacks. At the same time, we will maintain focus on achieving healthy, long-term growth in business scale, profitability, and cash flows.

Sean Zhang: At the same time, we will maintain focus on achieving healthy long-term growth in business scale, profitability, and cash flows. We aim to share JD's success with our shareholders in multiple ways.

Sandy Xu: At the same time, we will maintain focus on achieving healthy long-term growth in business scale, profitability, and cash flows. We aim to share JD's success with our shareholders in multiple ways.

Speaker #2: We aim to share JD's success with our shareholders in multiple ways.

Speaker #3: Thank you. That's all the questions we can take. Today. So let me just wrap up. Since we are running over time, thank you for joining us on the call today.

Sean Zhang: Thank you. That's all the questions we can take today. Let me just wrap up since we are running over time. Thank you for joining us on the call today, and thanks for your questions. If you have further questions, please contact me and our team. We appreciate your interest in JD.com. Look forward to talking with you again next Q. Thank you.

Speaker #3: And thanks for your questions. If you have further questions, please contact me and our team. We appreciate your interest in JD.com and look forward to talking with you again next quarter.

Speaker #3: Thank you.

Operator 2: Thank you for your participation in today's conference. This concludes the presentation. You may now disconnect. Good day.

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