京東 (JD) 2019 Q1 法說會逐字稿

Thank you, operator, and welcome to our First Quarter 2019 Earnings Conference Call.

謝謝運營商，歡迎參加我們的 2019 年第一季度收益電話會議。

Joining me today on the call are JD.com Group CEO, Richard Liu; Mr. Xu Lei, CEO of JD Retail; Mr. Wang Zhenhui, CEO of JD Logistics; Sidney Huang, our CFO; and Jon Liao, our CSO.

今天與我一起參加電話會議的還有京東集團首席執行官劉強東 (Richard Liu)；徐雷先生，京東零售首席執行官；京東物流首席執行官王振輝先生；西德尼·黃，我們的首席財務官；以及我們的 CSO Jon Liao。

For today's agenda, Mr. Huang will give the business highlights for the first quarter of 2019.

在今天的議程中，黃先生將介紹2019年第一季度的業務亮點。

Other management will join the call later.

其他管理層稍後將加入會議。

Before we continue, I'll refer you to our Safe Harbor Statement in the earnings press release, which apply to this call, as we will make forward-looking statements.

在我們繼續之前，我將向您推薦我們在收益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。

Also, this call includes discussions of certain non-GAAP financial measures.

此外，本次電話會議還討論了某些非公認會計準則財務措施。

Please refer to our earnings release, which contains a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures.

請參閱我們的收益報告，其中包含非公認會計原則財務指標與最直接可比的公認會計原則財務指標的調節表。

Finally, please note that, unless otherwise stated, other figures mentioned during this conference call are in RMB.

最後請注意，除非另有說明，本次電話會議中提到的其他數字均以人民幣為單位。

Now I'd like to turn the call over to our CFO, Sidney.

現在我想將電話轉給我們的首席財務官西德尼。

Thank you, Ruiyu, and welcome, everyone.

謝謝瑞宇，歡迎大家。

Thank you for joining us today.

感謝您今天加入我們。

We are pleased to report a strong set of financial results for the first quarter of 2019.

我們很高興地報告 2019 年第一季度強勁的財務業績。

We delivered solid revenue growth in a seasonally low quarter and set new records across all major earnings metrics.

我們在季節性低迷的季度實現了穩健的收入增長，並在所有主要盈利指標上創下了新紀錄。

During the first quarter of 2019, our net revenues grew 20.9%, more than double the Chinese national retail sales growth.

2019年第一季度，我們的淨收入增長20.9%，是中國全國零售額增長的兩倍多。

Net service revenues grew by 44% year-over-year, driven by solid momentum from our marketplace and advertising service revenues, our logistics and other service revenues grew over 91%.

在市場和廣告服務收入強勁勢頭的推動下，淨服務收入同比增長 44%，物流和其他服務收入增長超過 91%。

Gross margin in the first quarter was 15%, up from 14.1% in the same period last year, consistent with our prior commitment to the continued margin improvement of JD Retail, formerly known as JD Mall, and JD Logistics' third-party business.

第一季度毛利率為 15%，高於去年同期的 14.1%，這與我們之前對京東零售（前身為京東商城）和京東物流第三方業務利潤率持續改善的承諾一致。

JD Retail gross margin increased 36 basis points mainly driven by economies of scale from the 1P business as well as technology-driven advertising revenue growth.

京東零售毛利率增長 36 個基點，主要得益於 1P 業務的規模經濟以及技術驅動的廣告收入增長。

In fact, this marks the 20th consecutive quarter of JD Retail gross margin expansion on a year-over-year basis.

事實上，這標誌著京東零售毛利率連續第 20 個季度同比增長。

It demonstrates the long-term trajectory of retail scale economies, a concept that we have articulated persistently since our IPO 5 years ago.

它展示了零售規模經濟的長期軌跡，這是我們自五年前首次公開募股以來一直堅持闡述的概念。

At times, this powerful underlying trend was overshadowed by the short-term accounting losses from the various new innovation efforts to expand our business model in order to drive our next growth curve.

有時，這種強大的潛在趨勢被各種新的創新努力所帶來的短期會計損失所掩蓋，這些創新努力擴展了我們的業務模式，以推動我們的下一個增長曲線。

But every time, when some of these short-term losses were reduced or eliminated through natural progression to success or even failure, the underlying economic trend of our core business will suddenly become too obvious even though we did disclose such underlying trend of JD Retail at every quarter.

但每次，當這些短期損失中的一些通過自然進展而減少或消除，走向成功甚至失敗時，我們核心業務的基本經濟趨勢就會突然變得過於明顯，儘管我們確實披露了京東零售的這種基本趨勢。每個季度。

Well, this is one of these quarters as JD Logistics' third-party business achieved a significant gross margin improvement through better scale and capacity utilization that we promised a year ago, which explains the remainder of the group level gross margin expansion, and restored our normal margin trend.

嗯，這是其中一個季度，因為京東物流的第三方業務通過我們一年前承諾的更好的規模和產能利用率實現了毛利率的顯著改善，這解釋了集團層面毛利率擴張的剩餘部分，並恢復了我們的業績。正常的保證金趨勢。

By the same token, our fulfillment expense ratio in the first quarter also improved 2.5% to 6.7%, down from 7.2% in the same quarter last year, driven by better utilization of our logistics infrastructure and the improved unit economics as a result of the third-party logistics service business.

同樣，我們第一季度的履行費用率也從去年同期的 7.2% 下降了 2.5% 至 6.7%，這得益於我們的物流基礎設施的更好利用以及單位經濟效益的改善。第三方物流服務業務。

These improvements happened before the recently announced wage and benefit changes in our delivery unit in April.

這些改進發生在我們的交付部門最近宣布的四月份工資和福利變化之前。

As we communicated internally and publicly, the new changes are designed to better incentivize our delivery staff in light of our expanding business lines and industry best practices.

正如我們內部和公開溝通的那樣，新的變化旨在根據我們不斷擴大的業務線和行業最佳實踐更好地激勵我們的交付人員。

In fact, a majority of our delivery staff are affected by the new incentive scheme for their monthly income increase in April, while their productivity also improved.

事實上，我們大部分的外賣員都受到了新激勵計劃的影響，4月份的月收入增加了，同時他們的生產力也得到了提高。

As such, we do not expect to realize any meaningful cost savings from these new changes.

因此，我們預計這些新變化不會帶來任何有意義的成本節約。

Any further fulfillment efficiency improvement will continue to come from better productivity of our staff and a better utilization of our infrastructure through scale and technological innovation.

履行效率的進一步提高將繼續來自於我們員工生產力的提高以及通過規模和技術創新更好地利用我們的基礎設施。

Consistent with our ongoing focus on technology innovation, during the first quarter, our R&D spending was the only major expense line that increased faster than revenue growth, up 54% from the same quarter last year.

與我們對技術創新的持續關注相一致，第一季度，我們的研發支出是唯一增長快於收入增長的主要支出項目，比去年同期增長了 54%。

Our R&D expense ratio was 3.1% up from 2.4% in the same period last year.

我們的研發費用率為3.1%，高於去年同期的2.4%。

As we mentioned in the last quarter, however, following a period of significant investment to strengthen our R&D team, we expect our R&D expenses to stabilize in the remaining quarters of this year.

然而，正如我們在上個季度提到的，經過一段時間的大量投資來加強我們的研發團隊，我們預計我們的研發費用將在今年剩餘的季度保持穩定。

Our marketing expense ratio was 3.3% in the first quarter, down from 3.5% in the same quarter last year as we fine-tune our marketing strategies in light of the competitive dynamics.

我們根據競爭動態調整營銷策略，第一季度營銷費用率為 3.3%，低於去年同期的 3.5%。

Our G&A expense ratio remained stable at 1.1% in the first quarter.

第一季度我們的 G&A 費用率穩定在 1.1%。

Now you can see why our non-GAAP operating income reached a record high of nearly RMB 2 billion during the first quarter this year.

現在你就明白為什麼我們的非美國通用會計準則營業收入在今年第一季度創下近20億元人民幣的歷史新高了。

It has nothing to do with our annual reorganization that was apparently overinterpreted by certain media outlets.

這與我們的年度重組無關，而我們的年度重組顯然被某些媒體過度解讀了。

There is no massive layoff.

沒有大規模裁員。

In fact, our total headcount increased during a seasonally slow quarter from 178,000 at last year-end to 179,000 as of March 31.

事實上，我們的總員工人數在季節性淡季期間從去年年底的 178,000 人增加到截至 3 月 31 日的 179,000 人。

In a nutshell, the record earnings is a natural result of ongoing JD Retail margin expansion and the JD Logistics margin recovery, driven by technology innovation, economies of scale and a better capacity utilization.

簡而言之，創紀錄的盈利是在技術創新、規模經濟和更好的產能利用率的推動下，京東零售利潤率持續擴張和京東物流利潤率復甦的自然結果。

Our non-GAAP operating margin was 1.6%, up from 0.8% in the same quarter last year.

我們的非 GAAP 營業利潤率為 1.6%，高於去年同期的 0.8%。

If you ask me how sustainable this margin trend will be, I will reiterate that the improving retail -- JD Retail margin trend is sustainable on an annual basis, as we have demonstrated over the past 3 years and will continue for many years ahead of us.

如果你問我這種利潤率趨勢的可持續性如何，我會重申零售業的改善——京東零售的利潤率趨勢每年都是可持續的，正如我們在過去三年中所證明的那樣，並將在我們未來的許多年裡持續下去。

It is driven by JD Retail's significantly lower operating expense ratio as compared to the offline retail format which, in turn, will enable us to provide every day low prices and superior services to our consumers and drive sustained growth above the market.

與線下零售業態相比，京東零售的運營費用率顯著降低，這反過來又將使我們能夠為消費者提供日常低價和優質服務，並推動高於市場的持續增長。

This is the simplest yet most powerful retail economics that has supported essentially all of the most valuable retailers around the world.

這是最簡單但最強大的零售經濟學，基本上支持了全球所有最有價值的零售商。

Our non-GAAP net income attributable to ordinary shareholders in the first quarter 2019 also reached a record RMB 3.2 billion with a record non-GAAP net margin of over 2.7%, up from 1% in the same quarter a year ago.

2019年第一季度，我們的非美國通用會計準則歸屬於普通股股東的淨利潤也達到創紀錄的32億元人民幣，非美國通用會計準則淨利潤率創歷史新高，超過2.7%，高於去年同期的1%。

Our GAAP net income also set a new record at RMB 7.3 billion in the first quarter, mainly attributable to the fair value change of investments during the quarter.

第一季度我們的 GAAP 淨利潤也創下人民幣 73 億元的新紀錄，主要歸因於本季度投資的公允價值變化。

Our free cash flow during the first quarter turned positive to RMB 1.3 billion, driven by positive operating cash flow and a disposal of proceeds from the available-for-sale projects, partially offset by reduced maintenance capital expenditures.

第一季度，我們的自由現金流轉為正數，達到人民幣 13 億元，這主要得益於正的運營現金流和處置可供出售項目的收益，但部分被維護資本支出的減少所抵消。

On the Q2 financial outlook, we expect net revenue growth to be between 19% and 23% on a year-over-year basis based on recent economic indicators and our April growth momentum.

在第二季度財務前景方面，根據近期經濟指標和 4 月份的增長勢頭，我們預計淨收入同比增長將在 19% 至 23% 之間。

Lastly, I'm pleased to share 2 exciting developments.

最後，我很高興與大家分享兩個令人興奮的進展。

We are delighted to expand our strategic partnership agreement with Tencent covering a broad spectrum of strategic and business collaboration initiatives.

我們很高興擴大與騰訊的戰略合作夥伴關係，涵蓋廣泛的戰略和業務合作計劃。

We continue to expect a winning relationship with mutual benefits to both corporations in the future.

我們繼續期望兩家公司在未來建立互惠互利的雙贏關係。

I'm also pleased to highlight the funding of Series A financing for our JD Health business group led by a group of well-respected financial and strategic investors.

我還很高興地強調由一群備受尊敬的財務和戰略投資者領導的京東健康業務集團的 A 輪融資。

The deal values our health care business at a post-money valuation of approximately USD 7 billion.

該交易對我們的醫療保健業務的投後估值約為 70 億美元。

JD Health operates the largest online retail pharmacy in China with a fast-growing online health care services platform.

京東健康運營著中國最大的在線零售藥店，擁有快速增長的在線醫療保健服務平台。

This concludes my prepared remarks.

我準備好的發言到此結束。

Now I will turn the call to Richard for a few words.

現在我把電話轉給理查德說幾句話。

Hi, everyone.

大家好。

This is Richard Liu.

這是理查德·劉。

I just want to share with you -- as you knew, this quarter our net profit is a little bit high.

我只是想與大家分享——正如你們所知，本季度我們的淨利潤有點高。

But I'm going to say we would never ever stop investing for our long-term future.

但我想說的是，我們永遠不會停止為我們的長期未來進行投資。

And we'll never stop for 4 fields.

我們永遠不會在 4 個場地停下來。

First, we would never ever stop investing for our customer experience.

首先，我們永遠不會停止對客戶體驗的投資。

Second, we will never ever stop for investing for our new business.

其次，我們永遠不會停止對新業務的投資。

As you knew, we have our JD Digital business, JD Logistics, JD Health, and we will invest more for a new business model.

大家知道，我們有京東數字業務、京東物流、京東健康，我們會加大投入，打造新的商業模式。

And the third, we will keep investing for our technology because we're quite sure only the technology can improve our efficiency, reduce our cost and our customer experience.

第三，我們將繼續投資我們的技術，因為我們確信只有技術才能提高我們的效率、降低我們的成本和我們的客戶體驗。

And then last one, this is the most investment, that is talent investment.

然後最後一項，這是最多的投資，就是人才投資。

Actually, I'm sure the talent pool is only base of our every advantage.

事實上，我確信人才庫只是我們一切優勢的基礎。

So we will continue to improve our employees' net income.

因此我們將繼續提高員工的淨利潤。

Actually, in the past 6 years, every year, our average employee net income improved.

事實上，在過去的6年裡，我們員工的平均純收入每年都在提高。

And we will keep to invest and make sure every position in my company is strongly attractive, make sure we have the best talent.

我們將繼續投資，確保公司的每個職位都具有很強的吸引力，確保我們擁有最優秀的人才。

Thank you.

謝謝。

Operator, let's move to the Q&A section.

接線員，我們進入問答部分。

(Operator Instructions) your first question comes from the line of Mr. Ronald Keung from Goldman Sachs.

（操作員指令）您的第一個問題來自高盛的Ronald Keung先生。

Thank you and congratulation on the strong results.

感謝您並祝賀我們取得了優異的成績。

Thank you Richard, Xu zong, Wang zong, Sidney, Liao zong and Ruiyu.

謝謝Richard、徐總、王總、Sidney、廖總和瑞宇。

Very solid guidance as well.

也非常紮實的指導。

So my question is on logistics, and we see a significant reduction in logistics drag and over 90% growth in the line of logistics and others of this revenue.

所以我的問題是關於物流的，我們看到物流阻力顯著減少，物流和其他收入增長了 90% 以上。

Could you share with us some of the key initiatives and maybe KPIs for the JD Logistics?

您能否與我們分享一些京東物流的關鍵舉措以及 KPI？

And given that gross margins did improve, as, Sidney, you mentioned significantly in the first quarter, how should we think about that gross margin trajectory for the 3PL business and potentially the fulfillment cost metric as well over this year and in the outlook?

鑑於毛利率確實有所改善，正如 Sidney 您在第一季度提到的那樣，我們應該如何考慮今年和前景中 3PL 業務的毛利率軌跡以及潛在的履行成本指標？

(foreign language)

（外語）

[Interpreted] I'm Wang Zhenhui, the CEO of JD Logistics.

【解讀】我是京東物流CEO王振輝。

(foreign language)

（外語）

[Interpreted] Thank you very much for paying attention to our logistics business.

【解讀】非常感謝您對我們物流業務的關注。

(foreign language)

（外語）

[Interpreted] Our key core KPIs are still centered around the experience and efficiency.

【解讀】我們的關鍵核心KPI仍然以體驗和效率為中心。

(foreign language)

（外語）

[Interpreted] As pointed out by Chairman, Richard Liu, just now, we will pay a lot of attention to have our customers comment on the experience.

【解讀】剛才劉強東董事長也指出，我們會非常重視客戶對體驗的評價。

(foreign language)

（外語）

[Interpreted] And also, we are paying attention to how fast -- how well we send our products to -- goods to our customers.

[解釋]此外，我們還關注將產品發送給客戶的速度和質量。

(foreign language)

（外語）

[Interpreted] In the past quarter, we have been making efforts on these key aspects.

【解讀】過去一個季度，我們一直在這幾個關鍵方面做出努力。

(foreign language)

（外語）

[Interpreted] One driver is technology.

【解讀】技術是驅動力之一。

We have a lot of very good strong supply chain and logistics technology.

我們有很多非常好的強大的供應鍊和物流技術。

(foreign language)

（外語）

[Interpreted] Through better customer experience, so we can now secure more orders from our customers.

[解讀]通過更好的客戶體驗，我們現在可以從客戶那裡獲得更多訂單。

(foreign language)

（外語）

[Interpreted] Although, first quarter actually, is coming from off-peak season for us yet we've made a quite good performance.

【解讀】雖然第一季度對我們來說實際上是淡季，但我們的表現還是不錯的。

(foreign language)

（外語）

[Interpreted] And also, our profit margin from 3P orders of business has been on the improvement during the past 2 quarters.

[解讀]而且，我們的3P訂單業務的利潤率在過去兩個季度一直在改善。

(foreign language)

（外語）

[Interpreted] we see this trend will continue in the future.

【解讀】我們認為這種趨勢未來仍將持續。

(foreign language)

（外語）

[Interpreted] And we will not sacrifice our customer experience for that.

[解讀]我們不會為此犧牲我們的客戶體驗。

Thank you.

謝謝。

Your next question comes from the line of Jin Yoon from New Street Research.

您的下一個問題來自 New Street Research 的 Jin Yoon。

Hi, good evening, thank you for taking my question.

你好，晚上好，謝謝你回答我的問題。

Sidney, very strong win for the net margin line compared to what you kind of guided for full year.

西德尼，與您全年的指導相比，淨利潤率取得了非常強勁的勝利。

How should we look at that?

我們該如何看待呢？

How should we look at the operating margin leverage as well as gross margin leverage as we kind of head into weaker seasonality from margins in 2Q and 4Q?

當我們進入第二季度和第四季度利潤率的季節性疲軟時，我們應該如何看待營業利潤率槓桿和毛利率槓桿？

And how should we see the cadence for margin expectations for the rest of the year?

我們應該如何看待今年剩餘時間的利潤預期節奏？

And is there a -- and do you still maintain the same margin guidance?

你們是否仍維持相同的利潤指引？

Or do you expect that to kind of trend upwards going forward?

或者您預計這種趨勢未來會呈上升趨勢嗎？

Any kind of color on that, that'd be great.

任何顏色都可以，那就太好了。

Thanks.

謝謝。

Sure.

當然。

So we are obviously very encouraged by very strong results in Q1, but it is still only Q1.

因此，我們顯然對第一季度的強勁業績感到非常鼓舞，但這仍然只是第一季度。

As Richard mentioned, we'll continue to invest in our customer experience.

正如理查德提到的，我們將繼續投資於我們的客戶體驗。

We'll invest in new businesses.

我們將投資新業務。

And also, as you can see in China, the competitive dynamic changes very quickly and has always been very, very fierce, head of the department.

而且，正如你在中國看到的那樣，競爭動態變化得非常快，而且一直非常非常激烈，部門主管。

So it is because only after the first quarter, we have not adjusted the margin guidance.

所以這是因為只有第一季度之後，我們才調整了利潤指引。

We will revisit the margin guidance next quarter, for sure.

當然，我們將在下個季度重新審視利潤率指引。

Now with a very strong Q1, we are also prepared to reinvest part of that gain back to our consumers through our second quarter promotion season, very similar to what we did in 2017.

現在，隨著第一季度的強勁表現，我們還準備通過第二季度促銷季將部分收益重新投資給消費者，這與我們 2017 年的做法非常相似。

But again, I think we -- it's a great quarter that we, again, demonstrated the underlying earnings power of our business.

但我再次認為，這是一個偉大的季度，我們再次展示了我們業務的潛在盈利能力。

And we will not -- clearly, we'll continue to deliver a steadily improving margin on an annual basis, making sure that we will generate solid shareholder returns.

顯然，我們將繼續每年穩步提高利潤率，確保為股東帶來豐厚的回報。

But at the same time, only when we continue to reinvest, we can expect sustained growth for our business in a very long-term basis.

但與此同時，只有當我們繼續進行再投資時，我們才能期望我們的業務長期持續增長。

Your next question comes from the line of Alex Yao from JPMorgan.

您的下一個問題來自摩根大通的 Alex Yao。

I just want to dig into the logistic improving gross margin trend a little bit.

我只是想深入探討一下物流毛利率改善的趨勢。

So you guys mentioned the gross margin for the third-party logistics continue to improve in the past 2 quarters.

你們提到過去兩個季度第三方物流的毛利率持續改善。

Is it because you increased the pricing for your product or you optimized the cost structure, such that the fixed portion of the allocation can be more scaled down by improving order volume?

是因為你提高了產品的定價還是優化了成本結構，通過提高訂單量來進一步縮小分配的固定部分？

Can you just help us understand what exactly is driving the logistic margin improvement and how sustainable these drivers are?

您能否幫助我們了解到底是什麼推動了物流利潤率的提高以及這些驅動因素的可持續性如何？

Yes, so let me take that.

是的，所以讓我接受。

If you'll recall in Q1 last year and probably Q2 last year, we mentioned, when we first started expanding the external business for logistics, we were -- we didn't -- it's very difficult to predict how fast we can grow, especially -- the effort has started in Double Eleven promotion season in 2017.

如果你還記得去年第一季度和去年第二季度，我們提到，當我們第一次開始擴大物流外部業務時，我們——我們沒有——很難預測我們能增長多快，尤其是從2017年雙十一促銷季開始。

So we essentially built out very large capacity ahead of time to ensure the new customers can enjoy the best experience.

因此，我們基本上提前建立了非常大的容量，以確保新客戶能夠享受到最好的體驗。

And also, in conjunction with that new business expansion, we were also providing business customers with trial period preferential rates.

此外，結合新業務的拓展，我們還為企業客戶提供試用期優惠費率。

So it was basically a capacity issue.

所以這基本上是一個容量問題。

Plus, a discounted rate both affected the gross margin of our external business and also because the capacity is shared by both internal and external businesses.

另外，折扣率既影響了我們外部業務的毛利率，也因為產能是由內部和外部業務共享的。

So our internal JD Retail fulfillment expense was also affected -- because we spread out the cost between internal and external, right?

因此，我們內部的京東零售履行費用也受到了影響——因為我們在內部和外部之間分攤了成本，對嗎？

So Q1 last year was negatively affected by those 2 factors.

因此，去年第一季度受到這兩個因素的負面影響。

And essentially, those 2 factors were removed by the last 2 quarters.

本質上，這兩個因素在過去兩個季度已被消除。

We mentioned the initial discounted period gradually phased out in the second half of last year.

我們提到去年下半年開始的折扣期逐漸取消。

And then our capacity utilization has continuously improved throughout the year last year.

然後去年全年我們的產能利用率不斷提高。

So by now, we are in a very good shape in terms of capacity utilization, and we are back to a more normalized rates that are paid by our happy customers.

因此，到目前為止，我們在產能利用率方面處於非常好的狀態，並且我們回到了由滿意的客戶支付的更加正常化的費率。

I don't know if that answers your question.

我不知道這是否回答了你的問題。

Your next question comes from the line of Eddie Leung from Bank of America Merrill Lynch.

您的下一個問題來自美銀美林的 Eddie Leung。

Good evening, thank you for taking my questions.

晚上好，謝謝您回答我的問題。

I have 2 questions related to the revenue mix.

我有兩個與收入組合相關的問題。

We have seen electronics and home appliance growth slowing down.

我們看到電子和家用電器增長放緩。

So I just wonder, will that affect our 1P gross margin improvement in the future, given perhaps a slower improvement in the economic scale to the suppliers.

所以我只是想知道，考慮到供應商的經濟規模改善可能會放緩，這是否會影響我們未來 1P 毛利率的改善。

And then separately also about the revenue mix going to general merchandise.

然後還分別介紹了一般商品的收入組合。

As general merchandise is growing faster, could you talk about the trend of your basket size producer?

隨著百貨業的增長越來越快，您能談談你們的籃子規模生產商的趨勢嗎？

And how would that affect the efficiency of your fulfillment pieces going forward, especially given the potential lower order size could demand a pretty -- a similar utilization of your logistic resources as well?

這將如何影響您未來履行工作的效率，特別是考慮到潛在的較小訂單規模可能需要對您的物流資源進行類似的利用？

Okay.

好的。

So I'll take the first one.

所以我會選擇第一個。

Our electronics and home appliance business has actually seen healthy growth in light of the overall macro slowdown.

事實上，在整體宏觀經濟放緩的背景下，我們的電子及家電業務實現了健康增長。

And we're definitely growing well above the industry.

我們的增長速度肯定遠遠高於行業。

And so the growth rate, even though it's below the historical level, but we are continuing expanding at double-digit rates and taking market share at a very fast pace.

因此，儘管增長率低於歷史水平，但我們正在繼續以兩位數的速度擴張，並以非常快的速度佔據市場份額。

So as we take market share, we continue to be able to work with your suppliers and brands to come up with more innovative products and offerings to our consumers.

因此，隨著我們佔領市場份額，我們將繼續與您的供應商和品牌合作，為我們的消費者提供更多創新產品和服務。

We mentioned in the past, for certain categories where we're already #1, we may come up with more customized models, where we can drive further customer value, meaning lower price without disrupting the offline pricing systems.

我們過去提到過，對於我們已經排名第一的某些類別，我們可能會提出更多定制模型，我們可以進一步推動客戶價值，這意味著在不破壞線下定價系統的情況下降低價格。

And then for some other categories, where we are not #1 yet, the simple growth in scale by itself will automatically generate additional gross margin by better procurement prices.

然後，對於其他一些類別，我們還不是第一，簡單的規模增長本身就會通過更好的採購價格自動產生額外的毛利率。

And Xu Lei can answer the second question.

徐雷可以回答第二個問題。

(foreign language)

（外語）

[Interpreted] Hi.

[解釋] 你好。

This is Mr.Xu Lei from -- CEO of JD Retail.

我是京東零售首席執行官徐雷先生。

Let me take the second question about the -- particularly the size of general merchandise.

讓我回答第二個問題，特別是百貨商品的規模。

(foreign language)

（外語）

[Interpreted] The relationship you have mentioned about the size of the ticket price and fulfillment expenses, I think it's mainly about our direct sales business.

【解讀】你提到的票價大小和履行費用的關係，我認為主要是和我們的直銷業務有關。

(foreign language)

（外語）

[Interpreted] Actually, the per ticket price of our direct sales business in general merchandise is on a steady rise.

【解讀】實際上，我們百貨直銷業務的單價是在穩步上升的。

(foreign language)

（外語）

[Interpreted] This was mainly due to the sector trial.

【解讀】這主要是部門試點所致。

We've we made some efforts in the second category segment tier and third tier categories in marketing.

我們在第二品類細分市場和第三品類的營銷上做了一些努力。

As a result, we'll see an improved the ticket connection commission rate.

因此，我們將看到機票連接佣金率的提高。

(foreign language)

（外語）

[Interpreted] And also, we tried once last year.

[解釋]而且，我們去年也嘗試過一次。

We increased the delivery fee from a lower price to RMB 99.

我們將運費從較低的價格提高到人民幣99元。

(foreign language)

（外語）

[Interpreted] As a result, actually [from voucher] this measure didn't affect the stickiness of our users or customers in general merchandise.

【解讀】所以，其實這個措施並沒有影響到我們用戶或者顧客對百貨的粘性。

And it helps us to control our fulfillment expenditure.

它可以幫助我們控制履行支出。

(foreign language)

（外語）

[Interpreted] And also, starting in end of March and also the beginning of April, we've been trying or experimenting with a new measure where first-time buyers can enjoy free freight service.

[解讀]還有，從3月底、4月初開始，我們一直在嘗試新的措施，首次購房者可以享受免費貨運服務。

And we've found actually it's very effective in acquiring new users.

我們發現實際上它在獲取新用戶方面非常有效。

(foreign language)

（外語）

[Interpreted] This test will go on for a while and then we will roll this out, the free freight expenditure will be counted as a new user acquisition costs.

【解讀】這個測試會持續一段時間，然後再推出，免運費的支出會算作新用戶獲取成本。

Your next question comes from the line of Alicia Yap from Citigroup.

您的下一個問題來自花旗集團的 Alicia Yap。

Good evening management, and thank you for taking my question.

晚上好，管理層，感謝您提出我的問題。

Also congrats on the strong set of results.

也祝賀我們取得瞭如此強勁的成績。

I have a question, Sidney, on the second quarter guidance.

西德尼，我有一個關於第二季度指導的問題。

Can you elaborate the drivers that contribute to the reaccelerated growth for the second quarter net revenue guidance that you provide?

您能否詳細說明導致您提供的第二季度淨收入指導重新加速增長的驅動因素？

Has that guidance baked into any potential uncertainty on this ongoing trade war impact or are you not expecting an issue from this overhang?

該指導意見是否已考慮到當前貿易戰影響的任何潛在不確定性，或者您是否預計這種懸而未決會出現問題？

And should we also think about this reacceleration potentially is driven by, given Richard mentioned to reinvest the strong 1Q margin?

鑑於理查德提到要對強勁的第一季度利潤進行再投資，我們是否還應該考慮這種重新加速可能是由什麼驅動的？

Is that such a thing that you're going to reinvest into very aggressive sales and marketing promotions to drive your June '18 sales that baked into your guidance as well?

您是否會重新投資於非常積極的銷售和營銷促銷活動，以推動 18 年 6 月的銷售，這也納入您的指導？

Yes.

是的。

It's really driven by a combination of factors.

它確實是由多種因素共同驅動的。

One is that we actually have a pretty strong April sales result.

一是我們四月份的銷售業績實際上相當強勁。

So that was very encouraging.

所以這是非常令人鼓舞的。

We believe it's driven by our customer experience and also better technologies.

我們相信這是由我們的客戶體驗和更好的技術推動的。

In particular, our user interface through the personalized technologies that we believe are generating better convergence.

特別是，我們通過個性化技術實現的用戶界面，我們相信這些技術正在產生更好的融合。

And also on a year-over-year basis, if you recall, June '18 last year was a long holiday weekend.

如果您還記得，去年 6 月 18 日是一個長假週末，與去年同期相比也是如此。

And there was also World Cup around the same time.

大約在同一時間還有世界杯。

So there's also some difference in terms of sales seasonality or sales season timeframe.

因此，銷售季節性或銷售季節時間範圍也存在一些差異。

And then also, the third factor or given that we do have a strong Q1, we do have better resources to reinvest.

然後，第三個因素或考慮到我們確實有強勁的第一季度，我們確實有更好的資源進行再投資。

Now having said that, any investment will be also very measured.

話雖如此，任何投資都會非常謹慎。

We will make sure that any investment will generate good ROI, and also improve our customer experience.

我們將確保任何投資都會產生良好的投資回報率，並改善我們的客戶體驗。

So the reinvestment is not just simple -- just a simple promotion.

所以再投資不僅僅是簡單的——只是簡單的促銷。

There will be various innovative marketing campaign that are being planned.

將會有各種創新的營銷活動正在策劃中。

But yes, clearly the price benefit will also be part of it.

但是，是的，顯然價格優勢也是其中的一部分。

That's how we return to our consumers.

這就是我們回報消費者的方式。

Your next question comes from the line of Jerry Liu from UBS.

您的下一個問題來自瑞銀集團的 Jerry Liu。

Richard, my question goes back to your comment earlier about reinvesting.

理查德，我的問題回到了您之前關於再投資的評論。

Certainly I understand given the very strong results in the first quarter, we should expect some of that to be reinvested.

當然，我理解，鑑於第一季度非常強勁的業績，我們應該預期其中一些將被再投資。

But want to understand maybe your longer-term view.

但想了解您的長期觀點。

When you look at the last few years, JD net margins have had some years of increase and some years of decrease.

從過去幾年來看，京東的淨利潤率有幾年增長，也有幾年下降。

Given the bigger scale of the business now, do you think we could enter a period where margins steadily increase year by year?

現在業務規模越來越大，您認為我們能進入利潤率逐年穩定增長的時期嗎？

Yes, so Richard just stepped away, so let me try to answer this question.

是的，理查德剛剛走開，所以讓我嘗試回答這個問題。

So we have an internal discussion on this.

所以我們對此進行了內部討論。

As we communicated in the past, we have been committing to steadily improving margins year-over-year.

正如我們過去所傳達的那樣，我們一直致力於逐年穩步提高利潤率。

Now last year was the exception, where we invested heavily in technologies and also a few new initiatives such as JD Logistics.

去年是個例外，我們在技術和京東物流等一些新舉措上投入了大量資金。

And we tried to made clear that, one, JD Retail will continue to improve in margins, as we did.

我們試圖明確表示，第一，京東零售將像我們一樣繼續提高利潤率。

And two is that we accelerated our monetization effort on the logistics properties business so that we can in some way make up the profit shortfall last year which also has been materialized as we mentioned in the Q1 earnings release through our first core fund established with GIC.

二是我們加快了物流地產業務的貨幣化工作，以便我們能夠以某種方式彌補去年的利潤缺口，正如我們在第一季度財報中提到的，通過我們與 GIC 建立的第一隻核心基金，這一點已經實現。

So we are taking the revenue trend very seriously, and we have also guided on our intention this year.

所以我們非常重視收入趨勢，並且我們也對今年的意圖進行了指導。

Clearly, the intention from Richard is to ensure that margin will steadily improve while we'll reinvest at the same time.

顯然，理查德的意圖是確保利潤率穩步提高，同時我們將進行再投資。

So it is really a balance and we hope we will master better this balance going forward.

所以這確實是一種平衡，我們希望未來能更好地掌握這種平衡。

Your next question comes from the line of Natalie Wu from CIV.

您的下一個問題來自 CIV 的 Natalie Wu。

Congratulations on very robust results.

祝賀您取得了非常強勁的結果。

My question is regarding the new ad interface.

我的問題是關於新的廣告界面。

I noticed that you launched AV testing for a new ad interface that emphasize on the recommendation feed and personalization.

我注意到你們為新的廣告界面啟動了 AV 測試，該界面強調推薦源和個性化。

I'm just wondering can we get some color on the effect of this new app interface on your CR conversion rate based on the recent AV testing?

我只是想知道我們能否根據最近的 AV 測試了解這個新應用程序界面對 CR 轉化率的影響？

And how should we think about the growth for your advertising business this year?

我們應該如何看待你們今年廣告業務的增長？

(foreign language)

（外語）

[Interpreted] This is Mr. Lei Xu, CEO of the JD Retail.

【解讀】我是京東零售首席執行官徐雷先生。

He will take this question.

他會回答這個問題。

(foreign language)

（外語）

[Interpreted] We've already rolled out the new version of our app, version 8.0.

[解釋]我們已經推出了新版本的應用程序，版本 8.0。

And by the end of this month we will roll it out to all users.

到本月底，我們將向所有用戶推出它。

Of course, Our users will have to download a new version of the 8.0, so it may take some people longer time, so as time goes on our coverage will increase.

當然，我們的用戶將不得不下載新版本的8.0，因此可能需要一些人更長的時間，因此隨著時間的推移我們的覆蓋範圍將會增加。

(foreign language)

（外語）

[Interpreted] As you know, our platform has been performing very well in terms of providing the right products to the right people at a faster speed and also very precise, so to speak save time for our customers.

[解讀]如您所知，我們的平台在以更快的速度向合適的人提供合適的產品方面表現得非常好，而且非常精確，可以說為我們的客戶節省了時間。

So we've been doing very well in this aspect.

所以我們在這方面做得非常好。

But at the same time, we also see a trend especially among younger users, they might not necessarily want to save time by shopping.

但與此同時，我們也看到了一種趨勢，尤其是在年輕用戶中，他們可能不一定想通過購物來節省時間。

They want to kill time by shopping online.

他們想通過網上購物來消磨時間。

We started on this project last year August or September last year.

我們去年八月或九月開始這個項目。

(foreign language)

（外語）

[Interpreted] So this new version will be more catered -- this new version is more catered to the tastes -- preferences of young people.

【解讀】所以這個新版本會更迎合——這個新版本更迎合年輕人的口味——喜好。

It's more sections.

就是章節比較多。

And also there would be more interactive opportunities.

而且還會有更多的互動機會。

For us, the metrics we use to evaluate our new version is again customer experience and also the conversion rate as you mentioned; and also the efficiency in traffic distribution on the home page and also on product detail page.

對於我們來說，我們用來評估新版本的指標又是客戶體驗以及您提到的轉化率；還有首頁和產品詳情頁的流量分配效率。

So far, it has been doing very well in terms of [PV/ UV] increase.

到目前為止，它在[PV/UV]增加方面做得非常好。

(foreign language)

（外語）

[Interpreted] So far, we find that this new version has improved our customers stickiness and also return rate.

【解讀】目前來看，我們發現這個新版本提高了我們的客戶粘性和回頭率。

And as you know, this new model new of the news feed has already been used by some of our investor peers.

如您所知，這種新的新聞源模式已經被我們的一些投資者同行使用。

And the result is that their research -- their search rate actually has been hurt.

結果是他們的研究——他們的搜索率實際上受到了損害。

However, this hasn't happened in our story.

然而，這在我們的故事中並沒有發生。

UV from search as a percentage of total UV has remained constant.

搜索紫外線佔總紫外線的百分比保持不變。

That means we've maintained our competitive edge.

這意味著我們保持了競爭優勢。

At the same time we have improved the kill time part of the story.

同時我們還改進了故事的擊殺時間部分。

(foreign language)

（外語）

[Interpreted] The improvement in PV and UV on the product detail page, we found that this new version has also helped us in attracting more PV and UV in the stores and also the content page.

【解讀】商品詳情頁PV和UV的提升，我們發現新版本也幫助我們在店鋪和內容頁吸引了更多的PV和UV。

(foreign language)

（外語）

[Interpreted] At the same time, the personalized user interface and user feed has helped us to increase our advertising inventory and of course the results will be reflected in the following quarters.

【解讀】同時，個性化的用戶界面和用戶信息流幫助我們增加了廣告庫存，當然結果將在接下來的幾個季度得到體現。

(foreign language)

（外語）

[Interpreted] And lastly, I want to emphasize one point.

[解讀]最後我想強調一點。

This new user interface is a long-term effort, it's a long-term endeavor.

這個新的用戶界面是一個長期的努力，一個長期的努力。

It means we have to make a continuous effort to optimize our algorithm, so plenty of improvement to make.

這意味著我們必須不斷努力優化我們的算法，因此需要進行大量改進。

Thank you.

謝謝。

Your next question comes from the line of John Choi from Daewoo Securities.

您的下一個問題來自大宇證券的 John Choi。

Good evening and good morning, thank you for taking my question.

晚上好，早上好，謝謝您提出我的問題。

I had a question -- couple questions here.

我有一個問題——這裡有幾個問題。

First, on collaboration with Tencent, has there been any further discussion about in the e-commerce space with Tencent and how you guys will further collaborate and cooperate with Tencent?

第一，關於與騰訊的合作，是否與騰訊在電商領域有進一步的討論，你們將如何與騰訊進一步合作和合作？

And secondly, if you look at your active customer account, it has been pretty much flattish for the past few quarters.

其次，如果你看看你的活躍客戶賬戶，你會發現過去幾個季度的活躍客戶賬戶幾乎持平。

So going forward, what kind of user acquisition strategy the management has to further accelerate the user growth?

那麼未來管理層有什麼樣的用戶獲取策略來進一步加速用戶增長呢？

This is Jon Liao.

這是廖喬恩。

Let me answer those first questions.

讓我回答第一個問題。

Of course the past 5 years JD's has a very strong relation with Tencent and the relation has been extremely successful.

當然，過去5年京東與騰訊有著非常密切的關係，而且這種關係非常成功。

Yes, an extension of our relationship with Tencent for the next 3 years that obviously will continue, and will deepen our relationships in 3 major areas.

是的，未來 3 年我們與騰訊的關係顯然會繼續下去，並將加深我們在 3 個主要領域的關係。

One is level 1 and level 2 gateway access.

一是一級、二級網關接入。

Number two, in terms of advertisement.

第二，在廣告方面。

Number three, in terms of our membership in Tencent Video and QQ Music.

第三，我們的騰訊視頻和QQ音樂會員資格。

Now in terms of user acquisition, I will turn over to Mr. Xu Lei to provide more explanations.

現在關於用戶獲取方面，我請徐雷老師做更多的解釋。

(foreign language)

（外語）

[Interpreted] I am Lei Xu, CEO of JD Retail.

【解讀】我是京東零售CEO徐雷。

Let me add onto the first question.

讓我補充一下第一個問題。

(foreign language)

（外語）

[Interpreted] So in the past 5 years, the cooperation with Tencent, we have built a strong client base and also brand awareness and also our business side in the WeChat market.

[解讀]所以在過去的5年裡，通過與騰訊的合作，我們在微信市場上建立了強大的客戶群和品牌知名度以及業務方面。

(foreign language)

（外語）

[Interpreted] At the same time, we see a trend in the past 5 years, WeChat has been involving a lot in terms of the number of users and also what they do in WeChat, especially in the area of retail or e-commerce has been becoming more interactive.

【解讀】同時我們看到一個趨勢，過去5年，微信無論是在用戶數量上，還是在微信上做的事情，特別是在零售或者電商領域，都有了很大的涉及。變得更具互動性。

(foreign language)

（外語）

[Interpreted] For example, our partnership with Tencent provides us with many resources, one of them being privileged access points [to JD from WeChat] which we have enjoyed for the last five years.

[解讀]例如，我們與騰訊的合作為我們提供了很多資源，其中之一就是我們在過去五年中享有的特權接入點（微信到京東）。

But still we found that more than 50% of the visits are new visitors.

但我們仍然發現超過 50% 的訪問量是新訪客。

(foreign language)

（外語）

[Interpreted] That means there is still ample room for growth, so we determine that this cooperation with Tencent will do more innovation and will also differentiated measures in terms of leveraging this partnership.

【解讀】這意味著還有很大的增長空間，所以我們確定這次和騰訊的合作會做更多的創新，也會在利用這次合作方面採取差異化的舉措。

(foreign language)

（外語）

[Interpreted] Then I'll answer your second question.

[解讀]那我來回答你的第二個問題。

Let me say something about users in other aspects.

我再說一下其他方面的用戶。

(foreign language)

（外語）

[Interpreted] As I said last time, we've been making a lot of effort in terms of acquiring new customers.

【解讀】正如我上次所說，我們在獲取新客戶方面做了很多努力。

In terms of organization, we've put together overly a unified resource.

在組織方面，我們把資源過於統一了。

We've set up a specialized team in charge of new user acquisition.

我們成立了專門的團隊來負責新用戶的獲取。

As a result, our new users have been increasing tremendously without incurring a lot of cost.

結果，我們的新用戶在沒有花費太多成本的情況下大幅增加。

(foreign language)

（外語）

[Interpreted] Also we've been doing 2 pilot projects in terms of creating new scenarios -- new engagement scenarios to acquire new customers.

[解釋]此外，我們一直在創建新場景方面開展兩個試點項目——新的參與場景來獲取新客戶。

The second quarter will step up efforts in this aspect.

二季度將加大這方面的力度。

(foreign language)

（外語）

[Interpreted] Another thing is, in the past quarter, is that we've made efforts in awakening or reactivating customers who haven't bought anything from us in the past 12 months.

[解讀]另一件事是，在過去的一個季度，我們努力喚醒或重新激活過去12個月沒有從我們這裡購買過任何東西的客戶。

(foreign language)

（外語）

[Interpreted] As we all know, the current active client base is composed of 2 parts, one is new user acquisition; and the other one is awakening of our existing users that haven't been activate in a certain period of time.

【解讀】眾所周知，當前的活躍客戶群由兩部分組成，一是新用戶獲取；二是新用戶獲取。另外一個就是我們現有用戶在一定時間內沒有激活的喚醒。

(foreign language)

（外語）

[Interpreted] In the first quarter, we put more resources in this aspect, and also we've utilized the new technologies and some innovative operation.

【解讀】一季度我們在這方面投入了更多的資源，也運用了新技術和一些創新的操作。

As a result, the so-called awakened or reactivated user base has been very promising.

因此，所謂的覺醒或重新激活的用戶群非常有希望。

Your next question comes from the line of Grace Chen from Morgan Stanley.

您的下一個問題來自摩根士丹利的 Grace Chen。

Hi thank you.

嗨，謝謝你。

Congratulations on the strong results in the first quarter.

祝賀第一季度取得的強勁業績。

My question is about the operating margin.

我的問題是關於營業利潤率。

So we see the JD Retail, JD Mall operating margin has been increasing on a year-over-year basis.

因此，我們看到京東零售、京東商城的營業利潤率一直在同比增長。

Last year was 1.6% and we also see encouraging improvements in the first quarter.

去年為 1.6%，我們在第一季度也看到了令人鼓舞的改善。

So it will be great if the management can share with us the long-term margin target for JD Retail.

因此，如果管理層能夠與我們分享京東零售的長期利潤目標，那就太好了。

And given that scale is the key driver of the margin expansion, so I'm wondering what kind of JD target can we achieve this key margin target.

鑑於規模是利潤擴張的關鍵驅動因素，所以我想知道我們可以實現什麼樣的京東目標來實現這個關鍵利潤目標。

Sure, yes.

當然，是的。

So Grace, we have discussed in the past in China that the retail market is almost as large as the U.S. market, while the top retailers still contribute a small fraction of the overall retail pie, while the top, for example top 20 retailers in the U.S. already contributed 50% of the overall retail volume.

Grace，我們過去曾討論過，中國的零售市場幾乎與美國市場一樣大，而頂級零售商仍然只佔整個零售市場的一小部分，而頂級零售商，例如美國前 20 名零售商，美國已經貢獻了總零售量的50%。

So in China, even though JD is the largest retailer, we are still quite small comparing to very large market place.

因此，在中國，儘管京東是最大的零售商，但與非常大的市場相比，我們仍然很小。

So the growth outlook, and in terms of when we can get to the right scale, if you just think about -- take Walmart of U.S. as an example.

因此，如果你想一下，增長前景，以及我們何時能夠達到合適的規模，以美國沃爾瑪為例。

By 2018 revenues, even with just U.S. revenue size of Walmart, we are still only about 1/6 of its size.

到2018年的收入，即使只有沃爾瑪在美國的收入規模，我們也只有其規模的1/6左右。

So the growth potential is tremendous.

所以增長潛力是巨大的。

And that is why we're willing to reinvest a part of the profitability back to the business to drive growth, because as you continue to grow, your scale economy will naturally kick in.

這就是為什麼我們願意將部分盈利能力再投資回業務以推動增長，因為隨著你的不斷增長，你的規模經濟自然會啟動。

So -- and the faster we grow, the earlier we can get there.

因此，我們成長得越快，就能越早實現這一目標。

So in terms of long-term margin trajectory, we had mentioned in the past, even at IPO, our first party business longer term, because we have a much better operating structure, our expense ratio when comparing to the top 5 offline retailers, for example, our JD Retail expense ratio was 5 percentage points lower.

因此，就長期利潤率軌跡而言，我們過去曾提到，即使是在首次公開募股時，我們的第一方業務也是長期的，因為我們擁有更好的運營結構，與前五名線下零售商相比，我們的費用率，例如，我們的京東零售費用率降低了 5 個百分點。

And that is tremendous advantage for us to reinvest part of the gross margin, and we can afford to invest the gross margin to drive growth.

這對於我們將部分毛利率進行再投資來說是巨大的優勢，我們有能力投資毛利率來推動增長。

But longer term, when we get to the steady-state, this better operating margin or expense ratio will enable us to actually earn a higher margin than off-line retailers.

但從長遠來看，當我們達到穩定狀態時，這種更好的營業利潤率或費用率將使我們實際上比線下零售商獲得更高的利潤。

We have maintained that we should be able to earn 2 to 3 percentage points higher margin than offline retailer just for our 1P business.

我們堅持認為，僅就我們的 1P 業務而言，我們應該能夠比線下零售商賺取高 2 至 3 個百分點的利潤。

And then the 3P business has a much higher accounting margin.

然後3P業務的會計利潤率要高得多。

So if you layer that on top of the 1P business, it will give you somewhere in high single-digit, at least for our long-term JD Retail margin profiles.

因此，如果你把它放在 1P 業務之上，它會給你帶來高個位數的利潤，至少對於我們的長期京東零售利潤狀況來說是這樣。

Your next question comes from the line of Tian Hou from TH Capital.

您的下一個問題來自泰合資本的天后。

Congratulations on the good results.

恭喜取得好成績。

My question is much more broad and related to the China underlying e-commerce development.

我的問題更廣泛，與中國電子商務發展的基礎有關。

Recently, we saw so many e-commerce company IPOed.

最近，我們看到很多電子商務公司IPO。

So if we categorize those e-commerce, we can say you guys and your peers are much more centralized.

因此，如果我們對這些電子商務進行分類，我們可以說你們和你們的同行更加集中。

The leaders in e-commerce front.

電子商務前沿的領導者。

But the other guys like Yunqi, Youzan, Ruhnn are much more decentralized e-commerce.

但云棲、有贊、如涵等其他公司都是更加去中心化的電子商務。

And for those kind of decentralized e-commerce vendors, we can actually see millions of them, big and small.

對於那些去中心化的電子商務供應商，我們實際上可以看到數百萬個，無論大小。

Do you see any future impact from those mushroom type of growth of those decentralized e-com vendors?

您認為這些去中心化電子商務供應商的蘑菇式增長會對未來產生什麼影響嗎？

Are they going to eat into your market shares in your major categories?

他們會蠶食你在主要品類中的市場份額嗎？

And how are you going to prevent them from getting into your space?

您將如何防止他們進入您的空間？

That's my question.

這就是我的問題。

Thank you.

謝謝。

Yes, this is Jon Liao.

是的，這是廖喬恩。

I'll answer this question briefly.

我簡單回答一下這個問題。

So last year, we talked about our strategy for Retail-as-a-Service which means that JD is a retailer, but more importantly, we are a leader in infrastructure service provider.

所以去年我們談到了零售即服務的戰略，這意味著京東是一家零售商，但更重要的是，我們是基礎設施服務提供商的領導者。

You're absolutely right.

你是絕對正確的。

I think the retail space will become more fragmented and more decentralized than in concentration.

我認為零售空間將變得更加分散和分散，而不是集中化。

So which means we'll continue to observe an increased number of players moving from social space, content, so on and so forth.

因此，這意味著我們將繼續觀察到越來越多的玩家從社交空間、內容等方面轉移。

But the trend will continue.

但這種趨勢將繼續下去。

At the same time, it is inconceivable, no single retailers won't be able to build those sophisticated network-based retail structure.

同時，令人難以置信的是，沒有任何一家零售商無法建立如此復雜的基於網絡的零售結構。

So in this case, that's a reason why JD is moving away from a vertically integrated model to become an older model, so in this case, we opened up a retail infrastructure to connect, to enable and empower more region innovation.

因此，在這種情況下，這就是京東從垂直整合模式轉變為舊模式的原因，因此在這種情況下，我們開放了零售基礎設施來連接、啟用和賦能更多區域創新。

So in other words, on one hand, JD will show we will continue to participate in those retail innovations, but at the same time, we will become a retail service provider to the overall retail ecosystem.

所以換句話來說，一方面，京東將表明我們將繼續參與這些零售創新，但同時，我們將成為整個零售生態系統的零售服務提供商。

So those retail innovations will utilize our retail infrastructure like logistics and the other service as well.

因此，這些零售創新將利用我們的零售基礎設施，例如物流和其他服務。

So yes, as Jon has brought up this very interesting value proposition that we started mentioning last year, Retail-as-a-Service, which is really part of our second growth curve, which we have seen very good progress so far.

所以，是的，正如喬恩提出的這個非常有趣的價值主張一樣，我們去年開始提到零售即服務，這實際上是我們第二條增長曲線的一部分，到目前為止我們已經看到了非常好的進展。

But I just also want to just come back to the basics, what you mentioned on the various decentralized retail formats.

但我也想回到基礎知識，即你提到的各種去中心化零售業態。

You can also draw comparison to the various innovative boutique shops in the off-line world.

您還可以與線下世界的各種創新精品店進行比較。

I think in every -- at different times, you always have different new innovative retail formats.

我認為在每個不同的時期，總會有不同的創新零售業態。

But in the end, the retail economies of scale driven by large procurement and also operating efficiency will remain intact.

但最終，由大規模採購和運營效率驅動的零售規模經濟將保持不變。

I think even with all these new online or e-commerce formats, JD remains the only and clearly the largest and only 1P retailer with (inaudible) while others are mainly operating on a platform basis.

我認為，即使有了所有這些新的在線或電子商務形式，京東仍然是唯一且顯然是最大且唯一擁有（聽不清）的 1P 零售商，而其他零售商主要在平台上運營。

So I think on that particular unique advantage, that most investors and analysts have somewhat overlooked.

因此，我認為大多數投資者和分析師都忽略了這一獨特的優勢。

And this is a long-term gain, but when you build such a scale, it is actually very difficult to be disrupted.

而且這是一個長期的收益，但是當你建立這樣的規模時，實際上很難被顛覆。

I just want to mention this point again.

我只想再次提及這一點。

Thank you.

謝謝。

Your next question comes from Diying Ji of China Renaissance.

你的下一個問題來自華興資本的季帝英。

Thank you for taking my questions, and congratulations on your strong results.

感謝您回答我的問題，並祝賀您取得了優異的成績。

I just have a quick question regarding the investment cycle of JD Logistics.

我只是想問一下京東物流的投資週期。

I understand that you're now achieving a higher utilization rate of your facilities.

據我所知，您現在的設施利用率正在提高。

Could you share with us what's the utilization level for now?

您能否與我們分享一下目前的利用率水平是多少？

And how long or when do you think it's time for you to start with the next round of investments as you continue to expand your business?

當您繼續擴展業務時，您認為需要多長時間或何時開始下一輪投資？

(foreign language)

（外語）

[Interpreted] So this is Mr. Wang Zhenhui, CEO of JD Logistics.

【解讀】這位是京東物流首席執行官王振輝先生。

(foreign language)

（外語）

[Interpreted] In terms of the logistics infrastructure, since last year, we've seen making very significant strategic investment into warehousing and transportation and terminals technology.

【解讀】在物流基礎設施方面，從去年開始，我們看到在倉儲運輸、碼頭技術方面進行了非常重大的戰略投資。

(foreign language)

（外語）

[Interpreted] As we have mentioned, we are looking for improvements in infrastructure utilization.

[解讀] 正如我們所提到的，我們正在尋求基礎設施利用率的改進。

(foreign language)

（外語）

[Interpreted] We can benefit by economies of scale and also we can benefit by improving our technology.

[解讀]我們可以從規模經濟中受益，也可以從改進技術中受益。

(foreign language)

（外語）

[Interpreted] This year, and also years into the future, we will continue to make more investments.

【解讀】今年，乃至未來幾年，我們都會繼續加大投入。

(foreign language)

（外語）

[Interpreted] Of course our terminals where we are very strong, we continue to be an area to receive our investment.

[解讀]當然，我們的碼頭是非常強大的，我們仍然是一個接受我們投資的領域。

(foreign language)

（外語）

[Interpreted] We are sure the technologies, we can improve our customer experience, and also size, and also efficiency, which are very important to spread out our logistics company.

[解讀]我們確信技術可以改善我們的客戶體驗，還有規模和效率，這對於我們物流公司的擴張非常重要。

Thank you, operator.

謝謝你，接線員。

Thank you, everyone, for joining the call.

謝謝大家加入通話。

So we look forward to your (inaudible).

所以我們期待您的（聽不清）。

Ladies and gentlemen, that does conclude the conference for today.

女士們、先生們，今天的會議到此結束。

Thank you for participating.

感謝您的參與。

You may all disconnect.

你們都可以斷開連接。