京東 (JD) 2016 Q1 法說會逐字稿

Hello, and thank you for standing by for JD.com first quarter 2016 earnings conference call. (Operator Instructions) This 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, Ruiyu Li. Please go ahead.

您好，感謝您出席京東 2016 年第一季度財報電話會議。 （操作員指示）本次會議正在錄製中。如果您有任何異議，您可以此時斷開連接。現在我想將會議交給今天會議的主持人李瑞宇。請繼續。

Thank you, operator. And welcome to our first quarter 2016 earnings conference call. On today's call, Sidney Huang, our CFO, will discuss highlights for the first quarter. Following his prepared remarks, Richard Liu, CEO of JD.com and Haoyu Shen, CEO of JD Mall, will join Sidney for the question and answer portion of the call.

謝謝你，接線員。歡迎參加我們的 2016 年第一季度收益電話會議。在今天的電話會議上，我們的首席財務官 Sidney Huang 將討論第一季度的亮點。在發表準備好的講話後，京東首席執行官劉強東和京東商城首席執行官沈浩宇將與西德尼一起參加電話會議的問答部分。

Before we continue, I refer you to our Safe Harbor statement in the press release, which applies to this call, as we will make forward-looking statements. Also this call includes some discussions of certain non-GAAP financial measures. Please refer to our earnings release which contains a reconciliation of non-GAAP measures to the most directly comparable GAAP measures. Finally, please note that, unless otherwise stated, all the figures mentioned during this conference call are in RMB.

在我們繼續之前，我請您參閱新聞稿中的安全港聲明，該聲明適用於本次電話會議，因為我們將做出前瞻性聲明。此次電話會議還包括對某些非公認會計準則財務措施的一些討論。請參閱我們的收益報告，其中包含非公認會計準則衡量標準與最直接可比的公認會計準則衡量標準的調節表。最後請注意，除非另有說明，本次電話會議中提到的所有數字均以人民幣為單位。

Now I would like to turn the call over to our CFO, Sidney Huang.

現在我想將電話轉給我們的首席財務官 Sidney Huang。

Thank you, Ruiyu, and hello, everyone. We are pleased to report another quarter of solid growth and improving margins on our core business. Our core GMV grew 55% year over year in the first quarter 2016, more than doubling the industry growth rate despite a notable slowdown in national consumption growth.

謝謝瑞宇，大家好。我們很高興地報告我們的核心業務又一個季度實現穩健增長並提高利潤率。 2016年第一季度，儘管國民消費增速明顯放緩，我們的核心GMV同比增長55%，是行業增速的兩倍多。

More importantly, the growth was healthier, and our JD Mall operating margin showed a meaningful improvement. I will discuss both in more detail in a minute.

更重要的是，增長更加健康，京東商城的營業利潤率出現了有意義的改善。我將在一分鐘內更詳細地討論兩者。

From the macro perspective, China's overall consumption growth decelerated in the first quarter to 10.3% from 11.1% in the fourth quarter last year. As we have cautioned since last October -- since last August, a sustained weak economic environment could over time hurt consumption, although we continue to believe such impact may be moderate or delayed due to the secular trend of the off-line/online shift and healthy employment level supported by the government.

從宏觀角度看，中國整體消費增速從去年四季度的11.1%放緩至一季度的10.3%。正如我們自去年 10 月至去年 8 月以來所警告的那樣，持續疲弱的經濟環境可能會隨著時間的推移損害消費，儘管我們仍然認為，由於線下/線上轉移的長期趨勢，這種影響可能是溫和的或延遲的。政府支持的健康就業水平。

During the first quarter, we conducted a detailed review of our business lines in conjunction with our annual budgeting process. We made an important decision to rationalize our core e-commerce business with a more balanced approach to growth and profitability. Business units under JD Mall are being evaluated for their operating profitability for the first time, in addition to their growth metrics.

第一季度，我們結合年度預算流程對業務線進行了詳細審查。我們做出了一項重要決定，以更加平衡的方式實現增長和盈利，從而合理化我們的核心電子商務業務。除了增長指標之外，京東商城旗下業務部門也首次接受運營盈利能力評估。

Concurrent with this balanced focus, we are now sharing with you the operating margins from our core e-commerce business and operating loss from the new businesses, thereby providing more visibility into the financial trends of these different segments.

在平衡重點的同時，我們現在與您分享我們核心電子商務業務的營業利潤率和新業務的營業虧損，從而讓您更清楚地了解這些不同細分市場的財務趨勢。

Now let's first review our growth metrics. The GMV from our marketplace business grew 63% in Q1, and accounted for 41% of our GMV during the period. Some of you may ask why the growth rate has seemingly slowed. So I'll share a few reasons, in addition to the overall slowing consumption growth.

現在讓我們首先回顧一下我們的增長指標。第一季度，我們的電商平台業務 GMV 增長了 63%，占同期 GMV 的 41%。有些人可能會問為什麼增長速度似乎放緩了。因此，除了消費增長總體放緩之外，我還將分享一些原因。

First, our marketplace had experienced exceptional growth in the four quarters following our Tencent partnership, with tremendous traffic support, particularly helpful to our platform business, which began in the third quarter of 2014 and ended in the second quarter of 2015.

首先，我們的市場在與騰訊合作後的四個季度中經歷了非凡的增長，並獲得了巨大的流量支持，這對我們從2014年第三季度開始到2015年第二季度結束的平台業務特別有幫助。

Since the third quarter of last year, when we reached the anniversary of the transaction, the growth rate began to gradually revert to a more normalized pace. That's why you have seen a deceleration of growth rate over the past three quarters, although it is important to note that our marketplace still grew more than double the industry average this quarter.

自去年第三季度交易週年以來，增長率開始逐漸恢復到更加正常的速度。這就是為什麼過去三個季度增長率放緩的原因，但值得注意的是，本季度我們的市場增長率仍然是行業平均水平的兩倍以上。

Second, as part of the business rationalization process mentioned earlier, we identified certain virtual product categories with extremely low take rates, which were not economically sensible to further grow. One example that we had mentioned before was the telecom operatives cutting take rates on cell phone recharge sales, starting January 2016. While such products will continue to be offered for user convenience and traffic generation purposes, we will discontinue promotional incentives for these thin-margin businesses, which will result in a GMV decline in these categories.

其次，作為前面提到的業務合理化流程的一部分，我們確定了某些虛擬產品類別的採用率極低，從經濟角度來看，進一步增長並不明智。我們之前提到的一個例子是，從 2016 年 1 月開始，電信運營商降低了手機充值銷售的費率。雖然出於用戶便利和流量生成的目的將繼續提供此類產品，但我們將停止對這些利潤微薄的促銷激勵措施業務，這將導致這些品類的 GMV 下降。

Third, we have further strengthened and implemented new technologies since January 2016 to identify so-called brushing transactions and penalize the violators with a downgrade mechanism and increased fines. As many of you know, brushing refers to merchants -- merchant-initiated transactions through fake customer accounts. Therefore they are not easily identifiable by the platform.

三是自2016年1月以來，我們進一步強化和運用新技術，識別所謂刷單交易，對違規者進行降級機制、加大罰款力度等處罰。眾所周知，刷單指的是商家——商家通過虛假客戶賬戶發起的交易。因此，平台不容易識別它們。

These activities create misleading product reviews, damage customer experience, and compromise the integrity of the platforms. While brushing has become a common practice on all e-commerce platforms, we are committed to minimizing it at all costs. This anti-brushing campaign marks our second recent major initiative, after we shut down Paipai.com last November to uphold the JD platform as the most trusted e-commerce destination in China. We hope our new anti-brushing technologies will become more and more effective throughout 2016.

這些活動會產生誤導性的產品評論，損害客戶體驗，並損害平台的完整性。雖然刷單已成為所有電商平台上的常見做法，但我們致力於不惜一切代價盡量減少刷單。這次反刷單行動是我們繼去年 11 月關閉拍拍網以維護京東平台作為中國最值得信賴的電子商務目的地之後的第二項重大舉措。我們希望我們的新防刷技術能夠在 2016 年變得越來越有效。

So in summary, our marketplace GMV will continue to outgrow the market, but at a more normalized pace.

總而言之，我們的市場 GMV 將繼續超過市場增長，但速度會更加正常化。

In the first quarter, our GMV from general merchandise categories grew 56%, and accounted for 48% of total GMV during the quarter. Food and beverage was the fastest growing general merchandise category, followed by cosmetics and home furnishing, while power and footwear continued to be the largest general merchandise category with strong growth momentum. GMV from electronics and home appliance products grew 54% during the quarter, led by mobile devices and home appliance categories.

第一季度，百貨品類GMV增長56%，佔當季度總GMV的48%。食品飲料是增長最快的百貨品類，其次是化妝品和家居，電力和鞋類繼續是最大的百貨品類，增長勢頭強勁。本季度電子和家用電器產品的 GMV 增長了 54%，其中移動設備和家用電器類別領先。

Our net revenue grew 47% in Q1, supported by strong momentum in both direct sales and marketplace platforms. Our direct sales revenues grew 45%, led by food and beverage, cosmetics, home appliance, and mobile categories. I would also like to highlight our revenues from services and others, which increased to 91% year over year and demonstrated the strong growth in the underlying GMV and improving monetization of the JD platforms.

在直銷和市場平台強勁勢頭的支持下，我們第一季度的淨收入增長了 47%。我們的直銷收入增長了 45%，其中食品飲料、化妝品、家電和手機品類領先。我還想強調一下我們來自服務和其他方面的收入，同比增長至 91%，這證明了基礎 GMV 的強勁增長以及京東平台貨幣化的改善。

Our non-GAAP gross margin improved to 14%, up from 12.2% a year ago, as the result of higher 1P gross margin and higher GMV contribution from the marketplace. Non-GMV gross margin -- sorry, non-GAAP gross margin on direct sales improved over 80 basis points on a year-over-year basis, mainly due to increased scale economies across all key categories.

由於較高的 1P 毛利率和市場 GMV 貢獻，我們的非 GAAP 毛利率從一年前的 12.2% 提高至 14%。非 GMV 毛利率——抱歉，非 GAAP 直銷毛利率同比提高了 80 個基點以上，這主要是由於所有關鍵類別的規模經濟增加。

Non-GAAP fulfillment expense ratio was 8.2% in Q1 compared to 7.2% in the same quarter last year. The higher fulfillment expense ratio was mainly due to our investments in rural areas and the expansion of the consumable product category, which has lower average order values.

第一季度非 GAAP 履約費用率為 8.2%，而去年同期為 7.2%。履約費用率較高主要是由於我們對農村地區的投資以及平均訂單價值較低的消耗品類別的擴展。

The non-GAAP marketing expense ratio was 3.3% in Q4 -- in Q1 compared to 3% in the same quarter last year. The year-over-year increase was mainly due to lower-tier city marketing activities and the promotion of our new businesses.

第四季度（第一季度）非 GAAP 營銷費用率為 3.3%，而去年同期為 3%。同比增長主要得益於低線城市的營銷活動和新業務的推廣。

Our non-GAAP R&D and G&A expense ratios increased 6 basis points and 11 basis points respectively compared to the same quarter last year, which were entirely attributable to the higher spending by our new businesses, partially offset by the operating leverage from JD Mall.

與去年同期相比，我們的非公認會計原則研發費用率和一般行政費用率分別增加了 6 個基點和 11 個基點，這完全歸因於我們新業務支出的增加，部分被京東商城的運營槓桿所抵消。

Our non-GAAP operating margin was negative 0.5% in the first quarter, which had a 32-basis-point improvement over the same quarter last year. Excluding the new businesses defined as JD Finance, O2O, overseas business and the technology initiatives including smart devices and cloud computing, our core JD Mall business had an operating margin of 0.5% on a non-GAAP basis, with a 60-basis-point improvement over the same quarter last year.

第一季度我們的非 GAAP 營業利潤率為負 0.5%，比去年同期提高了 32 個基點。剔除京東金融、O2O、海外業務以及包括智能設備和雲計算在內的技術舉措等新業務，我們的核心京東商城業務按非公認會計原則計算的營業利潤率為 0.5%，較 60 個基點較去年同期有所改善。

This margin improvement was primarily driven by the higher gross margin, partially offset by the higher procurement and marketing expenses discussed earlier. The new businesses, on the other hand, incurred a non-GAAP operating loss of nearly RMB0.6b during the quarter, mainly from JD Finance and JD Daojia.

利潤率的提高主要是由於毛利率的提高，部分被前面討論的採購和營銷費用的增加所抵消。另一方面，新業務本季度產生了近 0.6 億元人民幣的非 GAAP 運營虧損，主要來自京東金融和京東到家。

Now let's discuss our cash flow. In the first quarter, the free cash flow totaled RMB2.9b excluding the impact from JD Finance loan balances, which had a net cash outflow of RMB 1.6b during the quarter. In the same quarter, JD Finance raised RMB10.6b through the Series A fundraising, securitization and the bank loans. As we stated in our last earnings call, JD Finance is expected to self-fund its growth in 2016 and beyond.

現在我們來討論一下我們的現金流。第一季度，剔除京東金融貸款餘額的影響，自由現金流總計人民幣 2.9 億元，該季度淨現金流出人民幣 1.6 億元。同季度，京東金融通過A輪融資、證券化和銀行貸款籌集人民幣10.6億元。正如我們在上次財報電話會議中所述，京東金融預計將在 2016 年及以後自行為其增長提供資金。

On working capital, inventory turnover for the last 12 months stayed low at 37 days compared to 35 days in the previous LTM. The accounts payable turnover for the last 12 months was 46 days, 4 days longer than the previous LTM. We will be using the loading 12 months turnover data going forward to avoid a misleading quality volatility, and provide a more meaningful trend to investors.

在營運資金方面，過去 12 個月的庫存周轉率保持在 37 天的低水平，而上一個 LTM 為 35 天。過去 12 個月的應付賬款周轉天數為 46 天，比之前的 LTM 長 4 天。我們將使用加載的 12 個月營業額數據來避免誤導性的質量波動，並為投資者提供更有意義的趨勢。

Finally, let's discuss our financial outlook. We expect Q2 net revenue growth to be between 40% and 44% on a year-over-year basis. This guidance will reflect our conservative outlook in light of the slowing consumption growth and our increasing focus on profitable growth in 2016. For the non-GAAP net margin outlook, we maintain our previous guidance for the full year 2016, pending our assessment of the coming impact from the Dada JD Daojia merger.

最後，讓我們討論一下我們的財務前景。我們預計第二季度淨收入同比增長將在 40% 至 44% 之間。鑑於消費增長放緩以及我們對 2016 年盈利增長的日益關注，該指引將反映我們的保守前景。對於非 GAAP 淨利潤率展望，我們維持之前對 2016 年全年的指引，等待我們對未來的評估。受到達達京東到家合併的影響。

This concludes my prepared remarks, and we can now move to the Q&A session.

我準備好的發言到此結束，我們現在可以進入問答環節。

(Operator Instructions) Eddie Leung, Merrill Lynch.

（操作員指令）Eddie Leung，美林證券。

Hi, good evening. Thank you for taking my questions. I noticed that as the GMV per order actually increased materially year on year. So just curious on what's the reason behind it? Did we see the ticket size of electronics or general merchandise going up? Or was it because of customer buying more products per order, and hence we have seen an increase in GMV per order? Thank you.

嗨，晚上好。感謝您回答我的問題。我注意到，每個訂單的 GMV 實際上逐年大幅增長。所以只是好奇這背後的原因是什麼？我們是否看到電子產品或日用商品的單價上漲？或者是因為客戶每筆訂單購買了更多產品，因此我們看到每筆訂單的 GMV 有所增加？謝謝。

Yes, Eddie. This is Sidney. The reason is actually mostly related to the scale-back on the cell phone recharge sales, which had a lower ticket size. So it had to have a quite meaningful impact on our GMV, and which also in turn had a very meaningful impact on the average value per order.

是的，艾迪。這是西德尼。究其原因，其實主要與手機充值銷售規模的縮減有關，手機充值金額較小。因此，它必須對我們的 GMV 產生非常有意義的影響，進而對每個訂單的平均價值產生非常有意義的影響。

Chi Tsang, HSBC.

曾志，匯豐銀行。

Good evening. Thank you very much for taking my question. I wondered if you could just give us a little bit more color regarding your commentary regarding the slowdown in marketplace GMV. You outlined three buckets, Tencent, business rationalization and brushing. I was just wondering if you can just give us some additional color on how you can bucket -- put those into three different buckets, please, in terms of the impact? Thank you.

晚上好。非常感謝您回答我的問題。我想知道您是否可以就您對市場 GMV 放緩的評論提供更多信息。您概括了三個桶，騰訊、業務合理化和刷單。我只是想知道您是否可以給我們一些額外的信息，說明如何將它們分到三個不同的桶中，就影響而言？謝謝。

Right, so on the Tencent transaction impact, you could actually see there was a deceleration over the past three quarters, with average over 20% a quarter. So that was really businesses maximizing -- max out the incremental contribution from the traffic support. And so we have mentioned this over the past three quarters.

對了，那麼騰訊的交易影響，其實你可以看到過去三個季度是有減速的，平均每個季度超過20%。所以這確實是企業最大化——最大化流量支持的增量貢獻。因此，我們在過去三個季度中已經提到過這一點。

So if you want to quantify, you could take the previous two quarters' pace of slowing down around 20% per quarter.

因此，如果你想量化，你可以採用前兩個季度每季度放緩 20% 左右的速度。

And then you have the two other elements. For the virtual product rationalization, we -- if you look at the virtual product category as a whole, we actually saw a meaningful decline during the quarter. If you assume, let's say, so it is actually a magnifying impact on the growth rate. So if you take less, for example, 3% of the marketplace GMV from last year, for example, by eliminating that you would have a negative impact on the growth rate of nearly 6% this year.

然後還有另外兩個元素。對於虛擬產品合理化，如果您將虛擬產品類別視為一個整體，我們實際上會在本季度看到顯著的下降。如果你假設，那麼這實際上是對增長率的放大影響。因此，如果你減少去年市場 GMV 的 3%，那麼通過消除這一點，你將對今年近 6% 的增長率產生負面影響。

So that gives you some idea of why the growth rate would decelerate a little bigger because essentially not only not growing that category, but you're actually decelerate that category.

因此，這讓您了解為什麼增長率會大幅減速，因為本質上不僅沒有使該類別增長，而且實際上使該類別減速。

And for the interpretation is really difficult to quantify. They are -- they couldn't be identified to begin with. So now we are -- we are providing severe penalties, and we also started to implement a number of downgrading mechanisms. So the impact, there will be a ripple effect on the merchants' behavior. And for that part, it's very difficult to quantify.

而對於解釋來說確實很難量化。他們是——他們一開始就無法被識別。所以現在我們——我們正在實施嚴厲的處罰，我們也開始實施一些降級機制。那麼影響，就會對商家的行為產生連鎖反應。對於這一部分來說，很難量化。

Erica Poon Werkun, UBS.

艾麗卡·潘·韋爾昆 (Erica Poon Werkun)，瑞銀集團。

Hi, Sidney, thank you. How should we think about the 1P, 3P mix shift going forward? How do you balance the need to maintain quality and service on the one hand, and on the other the need for scale and profitability? Thank you.

嗨，西德尼，謝謝你。我們應該如何看待未來的 1P、3P 混合轉變？您如何平衡一方面保持質量和服務的需要，另一方面保持規模和盈利能力的需要？謝謝。

Yes, so I think I'll begin first. So we will continue to see stronger growth from 3P businesses. Now on the surface, you may see the 3P growth slowing down a bit more than the underlying business fundamentals, because of the unfavorable comparison to previous year. So I think over the next few quarters, the growth rate, just based on year-over-year numbers, may seem to be a little less than what's the underlying growth momentum. But it should still grow faster. The healthy part of the business should definitely grow faster than the 1P business.

是的，所以我想我先開始吧。因此，我們將繼續看到 3P 業務的強勁增長。現在，從表面上看，由於與去年相比不利，您可能會看到 3P 增長的放緩程度略高於基本業務基本面。因此，我認為在接下來的幾個季度中，僅基於同比數據的增長率可能似乎略低於潛在的增長勢頭。但它應該仍會增長得更快。業務的健康部分肯定會比 1P 業務增長得更快。

Having said that, as you can see, our 1P business has been growing at a very solid pace and will continue to grow in the foreseeable future.

話雖如此，正如您所看到的，我們的 1P 業務一直在以非常穩健的速度增長，並將在可預見的未來繼續增長。

A bit more commentary on what Sidney said. So we are -- the marketplace GMV grew slower. So growth rate decelerated a little bit this quarter. But it's still growing faster than the first party, the B2C direct sales business. Our hypothesis is still going forward, it will still be a differential between the growth rate of marketplace GMV and direct GMV.

對西德尼所說的話進行更多評論。所以我們——市場 GMV 增長放緩。因此，本季度增長率略有放緩。但它的增長速度仍然快於第一方——B2C直銷業務。我們的假設仍在繼續，市場 GMV 和直接 GMV 的增長率仍然存在差異。

(Interpreted). We've maintained our advantage over our industry growth rate, and I think the past few quarters we grew at double the growth rate of the industry rate, and we'll continue to do that.

（解釋）。我們保持了對行業增長率的優勢，我認為過去幾個季度我們的增長率是行業增長率的兩倍，我們將繼續這樣做。

Alan Hellawell, Deutsche Bank.

艾倫·海拉威爾，德意志銀行。

Thank you, management. This is Eileen Deng on behalf of Alan Halliwell. I have a question regarding your electronic products. Could management give some color about the recent trend, especially on the smartphone competition? And what is the outlook for the full year? Thank you.

謝謝你，管理層。我是艾琳·鄧（Eileen Deng），代表艾倫·哈利韋爾（Alan Halliwell）。我對你們的電子產品有疑問。管理層能否對最近的趨勢（尤其是智能手機競爭）給出一些解釋？全年展望如何？謝謝。

Electronics. So for the consumer electronics, the cell phone, the computers, the pads, I think the macro environment is definitely slowing down, as you have seen from other manufacturers. But we continue to be the leading retailer of that category, and I think we are still gaining share from all other retail channels.

電子產品。因此，對於消費電子產品、手機、電腦、平板電腦來說，我認為宏觀環境肯定正在放緩，正如你從其他製造商那裡看到的那樣。但我們仍然是該類別的領先零售商，而且我認為我們仍在從所有其他零售渠道獲得份額。

And in the first quarter we continue to see good growth momentum across all electronics categories, including cell phones and computers and pads and peripherals. So we are already the by far the leading retailer of these categories, and will continue to gain share, in spite of the overall slowdown of industry. But it's definitely impacting our growth rate, but we continue to grow at a much faster rate than industry.

在第一季度，我們繼續看到所有電子產品類別的良好增長勢頭，包括手機、電腦、平板電腦和外圍設備。因此，我們已經是迄今為止這些類別的領先零售商，並且儘管行業整體放緩，但我們的份額仍將繼續增加。但這肯定會影響我們的增長率，但我們的增長速度仍然比行業快得多。

George Meng, Goldman Sachs.

喬治·孟，高盛。

Hi, good evening, management. Thank you very much for taking my question. My question is really related to your new business which generated about RMB0.6b loss this quarter. So I understand this is mainly from JD Finance and Daojia. But you also mentioned this time, I think for the first time, about the -- all these technology initiatives as well as the overseas business. And within the technology, I think you just mentioned cloud computing and smart devices.

嗨，晚上好，管理層。非常感謝您回答我的問題。我的問題確實與你們的新業務有關，該業務本季度產生了約 6 億人民幣的虧損。所以我理解這主要來自京東金融和到家。但你這次也提到了所有這些技術舉措以及海外業務，我想這是第一次。在技​​術方面，我想你剛剛提到了雲計算和智能設備。

So can you maybe quantify how big the investment or loss you are expecting this year? Because I think from last quarter you mentioned the absolute loss of all this new business will be not growing that much on a year-on-year basis in 2016. So just wondering what's the plan in this non-JD Finance and Daojia, but also other technology-related and also overseas business? And can you remind us how big those businesses are, as of today? Thanks.

那麼您能否量化一下您今年預計的投資或損失有多大？因為我認為從上個季度開始，您提到2016年所有這些新業務的絕對虧損同比不會增長那麼多。所以只是想知道這個非京東金融和到家的計劃是什麼，但也其他技術相關以及海外業務？您能否提醒我們，截至今天，這些企業有多大？謝謝。

Richard Liu (Interpreted). Our investments in technology this year will continue to grow. But in terms of percentage of total revenue, it's not a very big number.

理查德·劉（翻譯）。今年我們對技術的投資將繼續增長。但就佔總收入的百分比而言，這並不是一個很大的數字。

Yes, and it will maintain at a similar percentage of revenue this year. So it is actually a very small amount at this point. Same for the overseas business, which we had -- and we mentioned before that at this point we only have one joint venture in Indonesia.

是的，今年它將保持類似的收入百分比。所以目前它實際上是一個非常小的數量。我們的海外業務也是如此——我們之前提到過，目前我們在印度尼西亞只有一家合資企業。

Sean Zhang, 86Research.

張肖恩，86Research。

Thank you. A follow-up on your 3P marketplace strategy. Maybe can management walk us through maybe your thought process here? What's your new strategy for VP category? Because I have seen a lot of brand flagship store openings on JD. Maybe just share some color on your three-piece strategy going forward?

謝謝。 3P 市場策略的後續行動。也許管理層可以向我們介紹一下您的思考過程嗎？你們對於 VP 類別的新策略是什麼？因為我在京東看到很多品牌旗艦店開業。也許只是分享一下你未來的三件套策略？

And also may be touch upon your June 18 anniversary sale. What have you prepared in terms of category? I've seen 3P, of course, which is your strongest category, has done conferences with suppliers. May be give us some color on the preparation to the June 18 anniversary sale? Thank you.

也可能會涉及 6 月 18 日的周年紀念促銷。品類方面你準備了哪些？當然，我見過3P，這是你們最強的類別，已經與供應商進行了會議。可以給我們一些關於 6 月 18 日週年紀念特賣的準備工作嗎？謝謝。

We don't really have a new strategy for marketplace business. Our strategy is always we want to give our customers good selection by having a good variety of merchants on our platforms. You may have noticed that we are just about -- we have about 100,000 merchants on our platform right now. We're not looking to increase that number too much, because we believe that number of merchants already can provide a good selection, and we don't want to have a crowded marketplace. We want all the merchants to be profitable on our platform.

我們實際上並沒有針對市場業務的新戰略。我們的策略始終是希望通過在我們的平台上擁有各種各樣的商家來為客戶提供良好的選擇。您可能已經註意到，我們的平台上目前約有 100,000 家商家。我們不打算增加太多的數量，因為我們相信商家的數量已經可以提供很好的選擇，而且我們不希望市場變得擁擠。我們希望所有的商家都能在我們的平台上盈利。

And we are increasingly offering our logistics services to them, to our merchants, be it last-mile delivery services or warehousing services. So we continue to grow this business and all these, so non-electronic categories -- a lot of the non-electronic categories are driven by third-party merchants.

我們越來越多地向他們、我們的商家提供物流服務，無論是最後一英里的送貨服務還是倉儲服務。因此，我們繼續發展這項業務以及所有這些業務，因此非電子類別——許多非電子類別是由第三方商家推動的。

As for the preparation for our anniversary campaign, we're going to have an event in a few days, and we will -- we have lined up many big brands and merchants to work together with us to have a really rewarding experience for customers. And it's a -- because it's our anniversary sale, we put a lot of resources behind it. And we will be having big campaigns across all categories, be it first party electronics categories or marketplace third-party home and apparel categories.

至於我們週年紀念活動的準備，過幾天我們會舉辦一個活動，我們會——我們已經安排了很多大品牌和商家與我們一起合作，為客戶提供真正有益的體驗。這是一個——因為這是我們的周年紀念促銷，我們投入了大量的資源。我們將在所有類別中開展大型活動，無論是第一方電子產品類別還是市場第三方家居和服裝類別。

And I just want to add one point. One side benefit of the anti-brushing campaign is that we actually noted the large merchants benefiting from these new initiatives. And if you look at March and April, sales at the larger merchants were growing much faster than average. So not that smaller merchants are not benefiting, but it's just one of the side benefits.

我只想補充一點。反刷單活動的一個附帶好處是，我們實際上註意到大型商家從這些新舉措中受益。如果你看看三月和四月，大型商家的銷售額增長速度遠遠快於平均水平。因此，並不是說小商家沒有受益，但這只是附帶好處之一。

Eugene Munster, Piper Jaffray.

尤金·蒙斯特，派珀·賈弗雷。

Good evening. I just want to follow up on just the overall expectations about GMV growth. You talked about the reasons for the slight deceleration, and obviously you talked about the significant market share gains that you had relative to overall e-commerce.

晚上好。我只想跟進 GMV 增長的總體預期。您談到了略有減速的原因，顯然您談到了相對於整體電子商務而言，市場份額的顯著增長。

And my question is, if you're going to think about the next year or so, should we think about a continued slowdown in GMV but still outpacing overall e-commerce? Or any sort of feedback that you can give us how to model this out from a high level? Thank you.

我的問題是，如果你要考慮明年左右的情況，我們是否應該考慮 GMV 持續放緩但仍超過整體電子商務的情況？或者您可以向我們提供如何從高層次進行建模的任何反饋？謝謝。

Yes, I think as Richard mentioned earlier, that we have been growing at more than double the industry average for many years. And that's still our target going forward, given our superior user experience and our improving user engagement. So it is however difficult to model for the next three years, because it's partly also dependent on the overall consumption growth in China, and also the overall e-commerce growth as a sector.

是的，我認為正如理查德之前提到的，多年來我們的增長速度是行業平均水平的兩倍以上。鑑於我們卓越的用戶體驗和不斷提高的用戶參與度，這仍然是我們未來的目標。然而，對未來三年進行建模是很困難的，因為它在一定程度上也依賴於中國的整體消費增長，以及電子商務作為一個行業的整體增長。

Richard Liu (Interpreted). So nevertheless, we are very confident that our growth rate will significantly outpace the overall e-commerce growth rate over the next few years.

理查德·劉（翻譯）。儘管如此，我們仍然非常有信心，未來幾年我們的增長率將大大超過電子商務的整體增長率。

Robert Peck, Sun Trust.

羅伯特·佩克，太陽信託基金。

Yes, thank you so much. I have just two quick questions. One, Sidney, I was wondering if you could update us on just the competition for merchants at large sellers? Has that heated up at all, or subsided?

是的，非常感謝。我只有兩個簡單的問題。第一，Sidney，我想知道您能否向我們介紹一下大型賣家商家競爭的最新情況？是已經升溫了，還是已經消退了？

And then number two, were there any anomalies to callouts during the quarter? Was there any impact from weather, etc.? Thanks so much.

第二，本季度的標註是否有任何異常情況？有沒有受到天氣等因素的影響？非常感謝。

Yes, I'll take (inaudible) and Haoyu can add. We -- the competition has always been very fierce. We have seen competition from off-line major players in the past. And we continue to see very severe competition from our largest e-commerce competitors. So we don't see any material change in terms of competitive dynamics.

是的，我會接受（聽不清），浩宇可以補充。我們——競爭一直非常激烈。過去我們已經看到過來自線下主要參與者的競爭。我們繼續看到來自我們最大的電子商務競爭對手的非常激烈的競爭。因此，我們沒有看到競爭動態發生任何實質性變化。

And for any other reasons in Q1, I think we have tried our best to explain the reasons we think are meaningful. We haven't really -- it's very difficult to quantify other factors like weather.

對於第一季度的任何其他原因，我認為我們已經盡力解釋了我們認為有意義的原因。我們還沒有真正量化天氣等其他因素，這是非常困難的。

Wendy Huang, Macquarie.

溫迪·黃，麥格理。

Thank you. My first question is on your fulfillment. So fulfillment cost as a percentage GMV, and also the fulfi;lment cost per order has gone up this quarter. So what's the reason behind that? Was it more driven by the O2O business? If this is the case, how shall we expect the fulfillment cost to change in the future?

謝謝。我的第一個問題是關於你的成就感。因此，履行成本佔 GMV 的百分比以及每個訂單的履行成本本季度都有所上升。那麼這背後的原因是什麼呢？是否更多受到O2O業務的推動？如果是這樣的話，我們預計未來履行成本會如何變化？

And also, another part of fulfillment is the fulfillment in the rural areas. I think Alibaba mentioned last week that they had Taobao service stations in over 140,000 villages. So what do you think of the competition from Alibaba in the rural areas? And what's your strategy in expanding into the lower-tier cities and also rural areas?

另外，履行的另一部分是在農村的履行。我記得阿里巴巴上週提到他們在超過14萬個村莊設有淘寶服務站。那麼您如何看待阿里巴巴在農村地區的競爭？你們向低線城市和農村地區擴張的策略是什麼？

And the second question is on your operating loss. So you mentioned that you had about RMB0.6b non-GAAP operating losses on two businesses, JD Finance and JD Home. Can you just give more color as to which one is the bigger dragger? And also how should we expect JD Home's standalone losses going forward? Thanks.

第二個問題是關於您的經營損失。您提到，京東金融和京東家居這兩項業務的非 GAAP 運營虧損約為人民幣 0.6 億元。你能給出更多顏色來說明哪一個是更大的拖動者嗎？我們又該如何預期京東之家未來的獨立虧損呢？謝謝。

Yes, I'll explain number one and number three first. And so for the fulfillment expense, as I mentioned earlier, it's really related to investment in the lower-tier cities and rural areas. Similar to some of the competitors that we are also -- we've recruited many village agents. And so there is higher fulfillment expenses associated with that.

是的，我將首先解釋第一點和第三點。因此，對於履約費用，正如我之前提到的，它確實與低線城市和農村地區的投資有關。與我們的一些競爭對手類似——我們招募了很多鄉村代理。因此，與之相關的履行費用更高。

The other very, very important factor is the consumable categories growth, which has lower average basket size. So that has a very, very important impact on the fulfillment expense ratio. And as we mentioned before, we are in the process of evaluating ways to improve that order economics in this particular category.

另一個非常非常重要的因素是消費品類別的增長，其平均購物籃規模較低。因此，這對履行費用率有非常非常重要的影響。正如我們之前提到的，我們正在評估改善這一特定類別訂單經濟效益的方法。

And on the RMB.6b for new businesses, so if you want to -- in terms of magnitude, JD Finance definitely had the largest operating loss at this point, followed by the O2O. And then the remaining new businesses actually had a very, very small impact at this point. For the next quarter, because of the Dada and the Daojia merger, there will be -- the reason we are still in the process of assessing the impact is it is most likely to be deconsolidated.

至於新業務的 6 億人民幣，所以如果你想——就規模而言，京東金融此時的運營虧損肯定是最大的，其次是 O2O。然後剩下的新業務實際上在這一點上產生的影響非常非常小。下個季度，由於達達和到家的合併，將會有——我們仍在評估影響的原因是它最有可能被拆分。

However, because the new company on the ordinary share basis, JD still owns a large majority of the ordinary shares and the Dada shareholders are mostly preferred shareholders, so from a loss-allocation point of view, we will still absorb the majority of the combined entity's losses in the other equity pickup line. So we are -- that's why we need to give the new entity some time to come up with their annual budget. So that we can have a better visibility to share with our investors.

但由於新公司以普通股為基礎，京東仍擁有絕大多數普通股，而達達股東大多為優先股股東，因此從虧損分配的角度來看，我們仍將吸納合併後的大部分股份。實體在其他權益提取線中的損失。所以我們——這就是為什麼我們需要給新實體一些時間來製定年度預算。這樣我們就可以有更好的可見性與我們的投資者分享。

(Interpreted). So internally when we look at fulfillment cost, we don't really look at fulfillment cost as a percent of revenue. We look at per order fulfillment cost. If you look at that number on an apples-to-apples comparison basis in the past few years, we're seeing declining fulfillment cost. And we were able to achieve that despite the fact that we are going to more and more rural areas where the order density is less than the bigger cities.

（解釋）。因此，在我們內部，當我們考慮履行成本時，我們並沒有真正將履行成本視為收入的百分比。我們關注每個訂單的履行成本。如果你在過去幾年中逐一比較這個數字，我們會發現履行成本正在下降。儘管我們要去越來越多的農村地區，那裡的訂單密度低於大城市，但我們還是能夠實現這一目標。

I just want to add to what Richard said. We are very vigilant about basket size because we do know with that we see the percentage of logistics cost, as a percentage of revenues, we are -- as we're selling more and more general merchandise and consumable merchandise, we're seeing basket size has downward pressure. But we are trying different things to maintain basket size. For example, as you may know, we increased our minimum order size for free shipping recently again. And so far -- it's been about a month now and so far we're seeing results that we would like to see. So just to let you know that we are very mindful of basket size.

我只想補充一下理查德所說的內容。我們對購物籃的大小非常警惕，因為我們確實知道，我們看到物流成本佔收入的百分比，隨著我們銷售越來越多的一般商品和消費品，我們看到籃子的大小規模有下行壓力。但我們正在嘗試不同的方法來維持購物籃的規模。例如，您可能知道，我們最近再次提高了免費送貨的最小訂單量。到目前為止，已經過去了大約一個月，到目前為止，我們已經看到了我們希望看到的結果。只是想讓您知道，我們非常注意購物籃的大小。

Oh right, the question about penetration into lower-tier cities, I think our competitor has 14,000 presences in villages. And we're trying a different approach, as we mentioned before. We have representatives working for us to promote JD in villages. So I think the latest count is about 200,000 of them covering 200,000 villages all across China. And we're seeing good contribution to our GMV from these representatives. And we will continue to push ahead.

哦對了，關於滲透到低線城市的問題，我認為我們的競爭對手在鄉村有 14,000 個業務。正如我們之前提到的，我們正在嘗試一種不同的方法。我們有代表為我們工作，在村莊推廣京東。所以我認為最新的統計數字大約是20萬個，覆蓋了中國20萬個村莊。我們看到這些代表對我們的 GMV 做出了巨大貢獻。我們將繼續前進。

Vivian Hao, JPMorgan.

郝薇薇，摩根大通。

Hi, management, thank you for taking my questions. I have two questions here. The first one is about your gross margins. So what are the top-growing categories, for example like food and beverage, in your 1P business as the gross margin profile? And probably just to give us maybe the top three fastest growing categories in your 1P business?

您好，管理層，感謝您回答我的問題。我在這裡有兩個問題。第一個是關於你的毛利率。那麼，在您的 1P 業務中，毛利率概況中增長最快的類別（例如食品和飲料）是什麼？也許只是為了告訴我們您的 1P 業務中增長最快的三個類別？

And the second question is, when you mentioned earlier in the prepared remarks on the anti-brushing efforts on your 3P marketplace, can we get a sense of how we should think about the percentage of GMV impact and the categories that are most affected by brushing? Thank you.

第二個問題是，當您在前面準備好的評論中提到您的3P市場的反刷單努力時，我們是否可以了解我們應該如何考慮GMV影響的百分比以及受刷單影響最大的類別？謝謝。

Okay, so on the gross margin, we actually saw improvement to our first-party business across all key categories. So it probably doesn't help to further order these categories because they may change from quarter to quarter based on their different promotion schedules. But we did see meaningful pickup across all categories as they compared to the previous year quarter.

好的，就毛利率而言，我們實際上看到所有關鍵類別的第一方業務都有所改善。因此，進一步訂購這些類別可能沒有幫助，因為它們可能會根據不同的促銷計劃而逐季度發生變化。但與去年同期相比，我們確實看到所有類別都有顯著的回升。

Robert Lin, Morgan Stanley.

羅伯特·林，摩根士丹利。

Hi. So two questions here. First on the finance business. Could the management provide some of the key metrics from finance business? I know you provided actual disclosure this time about new business but particularly key metrics such as GMV contribution, consumer finance. We also book a cost of sales of interest expenses on the 1P line. Maybe also the revenue received.

你好。所以這裡有兩個問題。首先是金融業務。管理層能否提供一些金融業務的關鍵指標？我知道您這次提供了有關新業務的實際披露，特別是 GMV 貢獻、消費者金融等關鍵指標。我們還在 1P 行上記入利息費用的銷售成本。也許還有收到的收入。

And related to the finance business, obviously some of our biggest competitors are potentially coming onto public market. So what is our timeline on the finance business IPO? If any. So that's first.

與金融業務相關，顯然我們的一些最大競爭對手有可能進入公開市場。那麼我們金融業務IPO的時間表是怎樣的呢？如果有的話。這是第一。

On the fulfillment side, I think one of the things that you talked about is JD, the consumable products. Will we have something like a JD supermarket business that's very similar to T-mall supermarket, that we can do bundle and increase the efficiency of the fulfillment going forward? Thanks.

在履行方面，我認為你談到的一件事是京東，消費品。我們會不會有像京東超市這樣的業務，與天貓超市非常相似，我們可以進行捆綁並提高未來的履行效率？謝謝。

Yes, so I will answer the first one. So for JD Finance, first of all there is no timetable for IPO. It's really too early. We're still developing the infrastructure and the initial business buildup at this point.

是的，所以我就回答第一個。所以對於京東金融來說，首先沒有IPO的時間表。實在是太早了。目前我們仍在開發基礎設施和初始業務建設。

Your question about the consumer financing volume and the impact on our GMV, in Q1, actually we looked at order volume, 55% of the consumer finance business, consumer finance volume was paid within one month during the interest-free period. So they're really like a credit card. So if you then look at the remaining 45% that were on installments, the volume contributed very -- it's in low single digits to the overall GMV. So it's very small impact in terms of impacting the GMV growth.

你問的消費金融量以及對我們GMV的影響，一季度我們實際上看的是訂單量，消費金融業務的55%，消費金融量是在免息期內一個月內支付的。所以它們真的就像一張信用卡。因此，如果你再看一下剩餘 45% 的分期付款，就會發現該交易量對整體 GMV 的貢獻非常低，只有個位數。因此，就影響 GMV 增長而言，影響非常小。

And we mentioned this before, that we run our internet finance business not for the benefit of e-commerce. There is a slight benefit. But that was not the purpose. The purpose is to build a financial technology company, leveraging the big data and also the risk management model so that we can monetize over that technology. We mentioned about the self-funding nature of the business. And we hope to share with you more color on how they would monetize their technology without leveraging the balance sheet at all hopefully in the near future.

我們之前也提到過，我們經營互聯網金融業務不是為了電子商務的利益。有一點小小的好處。但這不是目的。目的是建立一家金融科技公司，利用大數據和風險管理模型，以便我們可以通過該技術貨幣化。我們提到了該業務的自籌資金性質。我們希望與您分享更多關於他們如何在不利用資產負債表的情況下將其技術貨幣化的色彩，希望在不久的將來。

As far as FMCG or consumable category, I think that's a category we're very -- first of all, we have a very sizeable position in that category already. And it's a category that's had a tremendous growth in the past few quarters. And we are -- it's a category, as you know, very suited for a 1P model. And logistics is obviously very, very important to that category. So I've recently talked to many leading FMCG brands and we are increasingly the number one retailer for these leading FMCG brands in China, and we've built great partnerships.

就快速消費品或消費品類別而言，我認為這是我們非常重視的一個類別，首先，我們已經在該類別中佔據了相當大的地位。這一類別在過去幾個季度中出現了巨大的增長。正如您所知，我們是一個非常適合 1P 模型的類別。物流顯然對該類別非常非常重要。因此，我最近與許多領先的快速消費品品牌進行了交談，我們日益成為這些領先的快速消費品品牌在中國的第一零售商，並且我們建立了良好的合作夥伴關係。

And we are also going to try different things to -- in this space. Globally, e-commerce in FMCG is also an area that some parties are trying different things. And you can stay tuned that we are going to try different approaches to win in this space.

我們還將在這個領域嘗試不同的事情。從全球來看，快消品電商也是各方嘗試的領域。您可以繼續關注我們將嘗試不同的方法來贏得這個領域。

And by the way, we do have a JD supermarket brand and we've been promoting that brand since Q4 of last year. So it's a sub-brand, if you will, under JD.

順便說一句，我們確實有一個京東超市品牌，我們從去年第四季度開始就一直在推廣這個品牌。所以如果你願意的話，它是京東旗下的一個子品牌。

Natalie Wu, CICC.

吳娜塔莉，中金公司。

Hi, thanks for taking my question. I notice that your gross profit actually grew at a very rapid pace at 75% this quarter. Just wondering if you are focusing on gross profit growth going forward instead of GMV?

您好，感謝您提出我的問題。我注意到你們本季度的毛利潤實際上增長了 75%，非常快。只是想知道您是否關注未來的毛利潤增長而不是 GMV？

And how should we see the GP margin going forward, for this year as well as for the foreseeable future?

我們應該如何看待今年以及可預見的未來的毛利率？

And also, I have a second question about the non-GAAP operating margin. I recall that you mentioned last quarter that JD Mall has already achieved a profitability for the last several quarters in a row. Just wondering, will this trend be carrying on? Say, shall we expect an improving JD Mall OP margin this year? Thank you.

另外，我還有關於非公認會計原則營業利潤率的第二個問題。我記得上個季度您提到京東商城已經連續幾個季度實現盈利。只是想知道，這種趨勢會持續下去嗎？那麼，我們預計今年京東商城的運營利潤率會有所改善嗎？謝謝。

Right, so I think we mentioned earlier about a balanced approach between growth and profitability. So we are -- we will continue to pursue growth. But we want to pursue profitable growth going forward. Growth is still very important. If you look at the key KPIs to our business unit presidents, there are still -- out of four KPIs, two of them are top-line growth related. We just added a bottom-line metric this year.

是的，所以我認為我們之前提到過增長和盈利之間的平衡方法。因此，我們將繼續追求增長。但我們希望繼續追求盈利增長。成長還是非常重要的。如果您查看我們業務部門總裁的關鍵 KPI，您會發現，在四個 KPI 中，其中兩個與營收增長相關。今年我們剛剛添加了一個底線指標。

So yes, on the JD Mall operating margin, yes, we have repeatedly mentioned in the past few quarters that we do expect our JD Mall operating margin to continue to improve. And we are now quantifying that improvement, starting this quarter.

所以，是的，關於京東商城的營業利潤率，是的，我們在過去幾個季度多次提到，我們確實預計京東商城的營業利潤率將繼續改善。從本季度開始，我們現在正在量化這種改進。

And you should expect continued improvement for the remainder of this year. Although on a quarterly basis, you may still see volatilities, again due to different promotional schedules. But the overall trend will definitely be increasing by a meaningful pace.

您應該期待今年剩餘時間的持續改善。雖然按季度計算，但由於促銷時間表不同，您可能仍然會看到波動。但總體趨勢肯定會以有意義的速度增長。

(Interpreted). We also want to have a good balance between profitability and growth. As you have seen in the media, a lot of categories we are in are not in a good place. Computers and IT products, the overall market is in decline. And cellphone is flat, if not declining. Home appliances, also declining according to major brands and manufacturers. So we think, under this context, this natural situation, if we want to maintain a high growth rate as before, we probably would have to pay a very high price.

（解釋）。我們還希望在盈利能力和增長之間取得良好的平衡。正如您在媒體上看到的，我們所處的很多類別都處於不好的位置。計算機和IT產品的整體市場正在下滑。手機業務即使沒有下降，也持平。根據主要品牌和製造商的說法，家用電器也在下降。所以我們認為，在這樣的背景下，這樣的自然情況下，如果我們想要像以前一樣保持較高的增長速度，我們可能要付出非常高的代價。

Even for apparel, we've heard from some major international brands they are also flat or in decline. Major FMCG companies as well, including P&G.

即使對於服裝，我們也從一些主要國際品牌那裡得知，它們的銷量也持平或下降。主要的快速消費品公司也是如此，包括寶潔公司。

Jialong Shi, Nomura.

石家龍，野村。

Hi, good evening, management, thanks for taking my call. And I have two questions here. For FMCG, just wonder how much of your GMV is contributed by this category? And how do you think of the competition from T-mall supermarket on FMCG?

嗨，晚上好，管理層，感謝您接聽我的電話。我這裡有兩個問題。對於快速消費品，想知道您的 GMV 有多少是由該品類貢獻的？您如何看待天貓超市在快消品領域的競爭？

And second question -- my second question is about the service revenue. Just wonder if management can provide breakdown of this category between marketing and the commission revenue. How do you think of the growth for each? Thank you.

第二個問題——我的第二個問題是關於服務收入。只是想知道管理層是否可以提供營銷和佣金收入之間這一類別的細分。您如何看待每個人的成長？謝謝。

Yes, we don't disclose the percentage for each category. But I can tell you FMCG is the second-largest general merchandise category behind apparel and shoes.

是的，我們不會透露每個類別的百分比。但我可以告訴你，快速消費品是僅次於服裝和鞋子的第二大百貨類別。

And --

和 -

Yes, and it's growing very fast. As far as competition, as I mentioned earlier, this is a category which is very [serious] for first-party model. It's relatively standardized and logistics plays a big role in the success of this business. So we are very determined to win.

是的，而且增長速度非常快。就競爭而言，正如我之前提到的，這是一個對於第一方模型來說非常[嚴重]的類別。它相對標準化，物流在這項業務的成功中發揮著重要作用。所以我們非常有獲勝的決心。

(Spoken in Chinese).

（用中文說）。

Others -- services in others --

其他——為他人提供服務——

Oh right. So for that, we just qualitatively mentioned and the trend continues that the commission revenue still contributes the biggest portion of the service revenue. Followed by advertising revenues. And the third category would be logistic services to the third-party merchants. And then the remaining, we have now a very small portion from the internet finance business, but it's still very tiny at this point.

啊對。因此，我們只是定性地提到，而且趨勢仍在繼續，佣金收入仍然貢獻了服務收入的最大部分。其次是廣告收入。第三類是為第三方商家提供的物流服務。然後剩下的，我們現在有很小一部分來自互聯網金融業務，但目前它仍然很小。

Tian Hou, TH Capital Research.

侯天，泰合資本研究部。

Hi, Sidney, how are you? Two questions. One is related to users. User growth is quite significant at 72%. So -- in the last 12 months. I wonder how many of them are repeated users? And also, on average in each quarter, what is the repeated shopping times? How many times they shop on JD.com? And what is this number before? So I would like to have the views from today and a year ago in terms of how many times they shop. That's the first question.

嗨，西德尼，你好嗎？兩個問題。一是與用戶相關。用戶增長非常顯著，達到 72%。所以——在過去 12 個月裡。我想知道其中有多少是重複用戶？另外，平均每個季度的重複購物次數是多少？他們在京東購物多少次？而這個數字之前是多少？所以我想了解一下今天和一年前他們購物的次數。這是第一個問題。

The second question related to the fact you raised the rate for the minimum ticket rate for the free shopping. So my understanding is this is not the first time you raised such a rate, ticket rate. So I wonder what's the result from last time of such doing? And what's the result you expect to come out this time of this ticket rate raising? That's the two questions, thank you.

第二個問題是你們提高了免費購物的最低票價。所以我的理解是，這不是你第一次提高這樣的價格，門票價格。所以我想知道上次這樣做的結果是什麼？此次票價上漲您預計會帶來什麼結果？這是兩個問題，謝謝。

Right, as for users, we disclose number of active users in the past rolling 12 months and we don't disclose more detail than that in terms of how many are old or existing users, how many are new. But we're happy with what we're seeing. On one hand, we want to have a lot of repeated users to show that we can retain them on our platform. On the other hand, there's still large potential in terms of new user acquisitions. So we are seeing a good balance between existing and new users.

是的，至於用戶，我們披露了過去滾動 12 個月的活躍用戶數量，除了有多少老用戶或現有用戶、有多少新用戶之外，我們沒有透露更多細節。但我們對所看到的感到滿意。一方面，我們希望擁有大量重複用戶，以表明我們可以將他們保留在我們的平台上。另一方面，在新用戶獲取方面仍然存在巨大潛力。因此，我們在現有用戶和新用戶之間看到了良好的平衡。

And if we look at -- and recently we did look at some cohort numbers. If you look at users that we acquired over the years, how well we are able to retain them, how they perform over time, we're seeing a very consistent trend where if they stay with us -- first of all, there's a reasonably high retention rate and if they stay with us, they would buy more merchandise from more categories from us, they will spend more with us.

如果我們看一下——最近我們確實看了一些隊列數字。如果你看看我們多年來獲得的用戶，我們留住他們的能力如何，他們隨著時間的推移表現如何，我們會看到一個非常一致的趨勢，如果他們留在我們身邊——首先，有一個合理的理由高保留率，如果他們留在我們這裡，他們會從我們這裡購買更多類別的更多商品，他們會在我們這里花費更多。

So for example, if you look at 2008 cohorts versus 2009, 2010, 2011, we are seeing pretty consistent trend in terms of their increasing purchase from us.

例如，如果你對比 2008 年的人群和 2009 年、2010 年、2011 年的情況，我們會發現他們從我們這裡購買的商品數量增加的趨勢非常一致。

And the second question about free shipping policy change. So we've been doing that, increasing the free shipping basket size by about, I think RMB220, annually, always in spring time. We've been doing that for several years and every time we did some analysis on how basket size in different [roles] changed, and we think it did help us to offset the otherwise stronger pressure, downward pressure on basket size, as we sell more and more FMCG products.

第二個問題是關於免費送貨政策的變化。所以我們一直在這樣做，每年將免費送貨籃子的大小增加大約 220 元，而且總是在春季。我們已經這樣做了好幾年了，每次我們都會對不同[角色]的籃子大小如何變化進行一些分析，我們認為這確實幫助我們抵消了我們銷售時籃子大小的更大壓力，即籃子大小的下行壓力快消品越來越多。

And on the other hand, I think increasingly customers are willing to pay for service, pay for speedy and consistent and reliable shipping. And we don't disclose those numbers but what I can tell you is shipping fee has increasingly become a meaningful part of our revenue. And with that, that's what we'd like to see going forward.

另一方面，我認為越來越多的客戶願意為服務付費，為快速、一致和可靠的運輸付費。我們不會透露這些數字，但我可以告訴你的是，運費已日益成為我們收入的重要組成部分。這就是我們希望看到的未來​​。

Eric Wen, Blue Lotus.

溫家寶，藍蓮花。

Hi, good evening, thanks very much for taking my questions. I have two housekeeping questions. One is in your calculation of non-GAAP operating profit, you mentioned a line item called a recognition of deferred revenue resulting from equity investees. Can you explain the nature of this line item, please?

你好，晚上好，非常感謝你回答我的問題。我有兩個家政問題。一是在計算非公認會計原則營業利潤時，您提到了一項稱為確認股權投資對象產生的遞延收入的項目。您能解釋一下該訂單項的性質嗎？

And the second, if you can give an update on your CapEx guidance for the year? Very appreciated, thanks.

第二，您是否可以提供今年資本支出指導的最新信息？非常感謝，謝謝。

Yes, so on the first question, it is actually -- it's related to resource-based support that we provide to equity investees. So one example would be our partnership with Bitauto where we provide the auto channel in exchange for its equity. So there is a deferred revenue stream from that partnership.

是的，所以關於第一個問題，它實際上與我們向股權投資對象提供基於資源的支持有關。一個例子就是我們與易車的合作，我們提供汽車渠道以換取其股權。因此，該合作夥伴關係存在遞延收入流。

And in calculating our non-GAAP profitability, we actually exclude that revenue, much like the same way that we exclude the harmonization of BCA from -- business cooperation with Tencent. So this is consistent. So it will actually reduce by -- in the non-GAAP calculation, it will reduce our profit.

在計算我們的非 GAAP 盈利能力時，我們實際上排除了該收入，就像我們將 BCA 的協調排除在與騰訊的業務合作之外一樣。所以這是一致的。因此，在非公認會計準則計算中，它實際上會減少，這會減少我們的利潤。

And the second point on CapEx, we maintain our previous guidance that we will manage our CapEx within our operating cash flow from JD Mall.

關於資本支出的第二點，我們維持之前的指導，即我們將在京東商城的運營現金流範圍內管理我們的資本支出。

John Choi, Daiwa Capital Markets.

約翰·崔，大和資本市場。

Thanks for taking my question. I have a couple of questions here. Can you guys elaborate a bit more on your contribution from mobile? And how the cooperation with Tencent has been going?

感謝您提出我的問題。我在這裡有幾個問題。你們能詳細說明一下你們在移動領域的貢獻嗎？與騰訊的合作進展如何？

And secondly, any updates on the progress of your flash sales or cross-border will be appreciated. Thank you.

其次，我們將不勝感激您的閃購或跨境銷售進展的任何更新。謝謝。

Right, I think we mentioned that 72% of the orders in the past quarter were placed on mobile devices and for us that really means our own app and our entry-point WeChat and Mobile QQ.

是的，我想我們提到上個季度 72% 的訂單是在移動設備上發出的，對我們來說，這實際上意味著我們自己的應用程序以及我們的入口點微信和手機 QQ。

So the GMV contribution and also the order percentage from our partnership with Tencent has been increasing. Although we believe as Sidney alluded to in his prepared remarks, we believe that the steep component of that curve is over. Now it's still increasing as a percentage of our total business but it's growing at a more steady growth rate. It continues to contribute a lot of new user acquisitions for us.

所以我們和騰訊合作的GMV貢獻以及訂單比例一直在增加。儘管我們相信正如西德尼在他準備好的講話中提到的那樣，我們相信該曲線的陡峭部分已經結束。現在它占我們總業務的百分比仍在增加，但增長速度更加穩定。它繼續為我們貢獻大量新用戶獲取。

Billy Leung, Haitong International.

梁比利，海通國際。

Hi, thanks for taking my questions. Just back to the O2O business again. Can we just get an idea of where we are in terms of the market share? Are we seeing competitors? Where we are in terms of investment phase for the O2O business?

您好，感謝您回答我的問題。再次回到O2O業務。我們能否了解一下我們的市場份額？我們看到競爭對手了嗎？我們對O2O業務的投資處於什麼階段？

And lastly, just our strategy on this segment, especially after the stake in Dada, are we going to see more vertical acquisition or is this going to be going into a consolidation phase? Just a bit more color on the O2O business (inaudible). Thank you.

最後，我們在這一領域的戰略，特別是在入股達達之後，我們是否會看到更多的垂直收購，或者這是否會進入整合階段？只是對 O2O 業務多一點色彩（聽不清）。謝謝。

Right, so we have mentioned in the past that our focus for the O2O is on physical goods, in particular fresh products from supermarkets and grocery, neighborhood grocery stores. So in that market, in fact, we are not only the market leader but we are probably the only meaningful player and continue to be that way.

對，所以我們過去也提到過，我們O2O的重點是實體商品，特別是超市和雜貨店、社區雜貨店的生鮮產品。事實上，在這個市場上，我們不僅是市場領導者，而且可能是唯一有意義的參與者，並且將繼續保持這種狀態。

One of our major competitors in that space actually announced that they will exit the physical e-commerce business from its O2O platform. So we are clearly the market leader in this space and we are not eager to branch out to the more crowded competitive space.

我們在該領域的主要競爭對手之一實際上宣布他們將從其 O2O 平台退出實體電子商務業務。因此，我們顯然是這個領域的市場領導者，我們並不急於擴展到更擁擠的競爭領域。

Now having said that, this business has now merged into the Dada combined entity. So it will be up to the new management to determine the strategy going forward.

話雖如此，該業務現已併入達達合併實體。因此，未來的戰略將由新管理層決定。

As far as M&A, we have been quite prudent in our recent deal evaluation process. I think given the market correction in the recent months, we do expect the valuation of private deals will also come down in the next six to nine months.

就併購而言，我們在最近的交易評估過程中一直非常謹慎。我認為考慮到近幾個月的市場調整，我們預計私募交易的估值也會在未來六到九個月內下降。

So we will be patient and not to jump on any deals unless it's extremely strategic to us.

因此，我們將保持耐心，不會輕易參與任何交易，除非這對我們來說極具戰略意義。

We are now approaching the end of the conference call. I will now turn the call over to JD.com's Ruiyu Li for closing remarks.

我們現在電話會議即將結束。現在我將把電話轉給京東的李瑞宇致閉幕詞。

Thank you, operator. Once again, thank you for joining us today. Please feel free to contact us if you have any further questions. Thank you for your continued support and we look forward to talking with you in the coming months.

謝謝你，接線員。再次感謝您今天加入我們。如果您還有任何疑問，請隨時與我們聯繫。感謝您一直以來的支持，我們期待在未來幾個月與您交談。

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

感謝您參加今天的會議。演示到此結束。您現在可以斷開連接。再會。

Portions of this transcript that are marked (interpreted) were spoken by an interpreter present on the live call. The interpreter was provided by the Company sponsoring this Event.

該文字記錄中標記（翻譯）的部分是由現場通話中的口譯員說出的。口譯員由贊助本次活動的公司提供。