京東 (JD) 2019 Q2 法說會逐字稿

Hello, and thank you for standing by for JD.com's Second Quarter 2019 Earnings Conference Call.

您好，感謝您出席京東2019年第二季度財報電話會議。

(Operator Instructions) Today's conference is being recorded.

（操作員指示）今天的會議正在錄製。

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

如果您有任何異議，您可以此時斷開連接。

I would like to turn the meeting over to your host for today's conference, Jia Dong.

我想把會議交給今天會議的主持人賈東。

Thank you.

謝謝。

Welcome to our second quarter 2019 earnings conference call.

歡迎參加我們的 2019 年第二季度收益電話會議。

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

今天和我一起參加電話會議的是京東集團首席執行官劉強東先生；徐雷先生，京東零售首席執行官；王振輝先生，京東物流首席執行官；黃西尼，首席財務官；以及我們的首席戰略官 Jon Liao。

For today's agenda, Richard Liu will discuss highlights for the second quarter 2019, followed by Sidney Huang, our CFO.

在今天的議程中，Richard Liu 將討論 2019 年第二季度的亮點，隨後我們的首席財務官 Sidney Huang。

Other management will join the Q&A session.

其他管理層將參加問答環節。

Before we continue, I refer you to our safe harbor statement in the earnings press release, which applies to this call as we will make forward-looking statements.

在我們繼續之前，我請您參閱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 non-GAAP 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。

Finally, please note that unless otherwise stated, all 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所有數字均以人民幣為單位。

I would now like to turn the call over to Richard Liu.

我現在想把電話轉給劉強東。

(foreign language)

（外語）

[Interpreted] Thank you, everyone, for joining this call.

[翻譯]謝謝大家參加這次電話會議。

I believe you will pay much attention on this conference call on our revenue, especially looking forward on the [future] (corrected by company after the call) results.

我相信您會非常關注這次電話會議對我們的收入，特別是對[未來]（電話會議後公司更正）結果的期待。

(foreign language)

（外語）

[Interpreted] And you have seen that in the past quarter 1 and quarter 2, we have achieved quite positive revenue results, and these are mainly contributed to 2 factors: number one is through our years of our commitment in our business plans, and you have seen a lot of business have broken even and even gained some profits.

[解讀]大家也看到了，在過去的第一季度和第二季度，我們取得了相當積極的收入成果，這主要是由兩個因素促成的：第一是我們多年來對業務計劃的承諾，以及您我們看到很多企業都實現了盈虧平衡，甚至還獲得了一些利潤。

(foreign language)

（外語）

[Interpreted] And for example, our JD Logistics, after years of efforts, we have reached our breakeven point.

【解讀】比如我們京東物流，經過這些年的努力，我們已經達到了盈虧平衡點。

(foreign language)

（外語）

[Interpreted] And also, we have some [loss making categories start to turn profitable] (corrected by company after the call) after years of investment, we have achieved some revenue --

[解讀]而且，我們還有一些[虧損品類開始扭虧為盈]（公司在電話會議後更正）經過多年的投資，我們已經取得了一些收入——

Profit.

利潤。

Profit, sorry.

利潤，對不起。

Profit.

利潤。

(foreign language)

（外語）

[Interpreted] And secondly, for the past 4 years, we have invested heavily in the [fourth] (corrected by company after the call) to sixth-tier lower cities.

[解讀]其次，在過去的四年裡，我們在[第四]（電話後由公司更正）到六線以下城市進行了大量投資。

At the beginning, the cost of the logistics keeps relatively high.

一開始，物流成本保持較高水平。

(foreign language)

（外語）

[Interpreted] Through years of investments and our -- increasing our fulfillment and our opening strategies, our fulfillment expense costs continued to decline.

[解讀]通過多年的投資以及我們不斷增加的履行和開業策略，我們的履行費用成本持續下降。

(foreign language)

（外語）

[Interpreted] So the revenues we gained today is not because of a --

[解釋] 所以我們今天獲得的收入並不是因為——

Profit, profit.

利潤，利潤。

Profits, sorry.

利潤，對不起。

The profits we gained today is not because of the reduction of our investments or our elimination of some ill-performed business.

我們今天獲得的利潤，並不是因為我們減少了投資，也不是因為我們淘汰了一些業績不佳的業務。

(foreign language)

（外語）

[Interpreted] And on contrary, our commitment for our long-term investment never changed.

【解讀】相反，我們對長期投資的承諾從未改變。

We'll continue to make our apt efforts for the growth of our business and to return and -- benefit for our shareholders.

我們將繼續為業務的發展做出應有的努力，為股東帶來回報和利益。

(foreign language)

（外語）

[Interpreted] And that we will continue our investments on the technology in terms of AI, big data, cloud and also new formats of our business like the fresh groceries and all kinds of new, innovative businesses.

[解讀]我們將繼續在人工智能、大數據、雲以及我們的業務新業態（例如生鮮雜貨和各種新的創新業務）方面進行技術投資。

(foreign language)

（外語）

[Interpreted] And as we have done from the past, we strongly confirm you that we will continue our efforts and bring benefits, profits for our shareholders.

[解讀]正如我們過去所做的那樣，我們向您強烈確認，我們將繼續努力，為我們的股東帶來利益和利潤。

(foreign language)

（外語）

[Interpreted] As we are gaining more profitability in areas of our business, I believe our revenue will continue to grow, and the profits in the long run will continue to grow.

【解讀】隨著我們在業務領域獲得更多的盈利能力，我相信我們的收入會持續增長，長期來看利潤也會持續增長。

(foreign language)

（外語）

[Interpreted] Since our IPO, we have instructed that our growth will be mainly driven by our economies of scale and our advantages in [operating] (corrected by company after the call) efficiency.

[解讀]自我們首次公開募股以來，我們已指示我們的增長將主要由我們的規模經濟和我們在[運營]（由公司在電話會議後更正）效率方面的優勢推動。

And the day has come to fulfill our promises.

履行我們承諾的日子已經到來。

(foreign language)

（外語）

[Interpreted] And in the future, we'll continue to enhance our users' experiences and also gain more potential customers from the third to sixth-tier cities.

【解讀】未來，我們將繼續提升用戶體驗，並獲得更多三六線城市的潛在客戶。

(foreign language)

（外語）

[Interpreted] We will continue to invest in our technologies and improve our management to reduce cost and improve profitability.

【解讀】我們將繼續加大技術投入，完善管理，降低成本，提高盈利能力。

(foreign language)

（外語）

[Interpreted] And I will continue to build up our organization's efficiencies and optimize our operations to bring more cash flow.

[解讀]我將繼續提高我們組織的效率並優化我們的運營，以帶來更多的現金流。

(foreign language)

（外語）

[Interpreted] And it has never changed in the past, and it will continue in the future.

【解讀】過去從未改變，未來也將繼續。

Thank you very much.

非常感謝。

Okay.

好的。

Thank you, Richard.

謝謝你，理查德。

And so let me continue to give you a quick quarterly update.

因此，讓我繼續為您提供快速的季度更新。

We're very pleased to report a solid second quarter with strong results across all key metrics.

我們非常高興地報告第二季度業績強勁，所有關鍵指標均取得了強勁的業績。

Our net revenues exceeded the upper end of our guidance, and we achieved record-high operating profit in a heavily promotional season.

我們的淨收入超過了指導上限，並且在促銷季中實現了創紀錄的營業利潤。

We are also encouraged by a healthy growth of 11 million net additional customers to a total of 321 million in the past 12 months.

我們還對過去 12 個月內淨增客戶數量健康增長 1100 萬達到 3.21 億感到鼓舞。

These strong results illustrate the solid fundamentals of our online retail business model as well as the significant progress we have made to improve our R&D capabilities, operational processes and organizational design over the past few quarters.

這些強勁的業績說明了我們在線零售業務模式的堅實基礎，以及過去幾個季度我們在提高研發能力、運營流程和組織設計方面取得的重大進展。

During the second quarter of 2019, our net revenue growth accelerated to 22.9% despite market concerns about macroeconomic conditions and competitive dynamics.

2019 年第二季度，儘管市場對宏觀經濟狀況和競爭動態感到擔憂，但我們的淨收入增長加速至 22.9%。

All major categories of electronics and home appliances saw double-digit growth during the quarter, and the general merchandise categories grew by 34%, led by FMCG products.

本季度，電子和家電所有主要品類均實現兩位數增長，百貨品類增長 34%，其中以快速消費品為主導。

Net service revenues grew by 42% year-over-year and contributed 11.2% of our overall revenues, driven by strong momentum from third-party logistics and advertising revenues.

在第三方物流和廣告收入的強勁推動下，淨服務收入同比增長 42%，佔整體收入的 11.2%。

Logistics and other service revenues grew 98%, thanks to the team's focus on product innovation and a superior service quality.

得益於團隊對產品創新和卓越服務質量的關注，物流和其他服務收入增長了98%。

Gross margin in the second quarter was 14.7%, up from 13.5% in the same quarter last year.

第二季度毛利率為14.7%，高於去年同期的13.5%。

The margin expansion was contributed by both JD Retail and our third-party logistics business.

利潤率的增長得益於京東零售和我們的第三方物流業務。

JD Retail gross margin improved by 76 basis points, driven by economies of scale from our 1P business, better economics of advertising and certain onetime benefits of the VAT tax reform, which took effect on April 1, 2019.

得益於 1P 業務的規模經濟、更好的廣告經濟效益以及 2019 年 4 月 1 日生效的增值稅改革帶來的某些一次性好處，京東零售的毛利率提高了 76 個基點。

This marks the 21st consecutive quarter of JD Retail's gross margin expansion on a year-over-year basis, in spite of intense competition from existing and new industry participants.

儘管來自現有和新行業參與者的激烈競爭，這標誌著京東零售的毛利率連續第 21 個季度同比增長。

It validates the resilience of our business model and the long-term margin trajectory that we have communicated since our IPO.

它驗證了我們業務模式的彈性以及我們自首次公開募股以來所傳達的長期利潤軌跡。

On the other hand, JD Logistics also delivered a stellar quarter as its capacity utilization and staff productivity reached the normalized level during a seasonally busy quarter.

另一方面，京東物流也實現了出色的季度業績，其產能利用率和員工生產力在季節性繁忙的季度達到了正常水平。

The third-party logistics business saw its gross margin further improve, and as Richard mentioned, also reached past the breakeven point on the non-GAAP operating income level in the second quarter.

第三方物流業務的毛利率進一步提高，正如理查德提到的，第二季度的非公認會計準則營業收入水平也達到了盈虧平衡點。

By the same token, our fulfillment efficiency was benefited as well.

同樣的道理，我們的履行效率也得到了提升。

During the second quarter, fulfillment expense ratio was 6.1%, the lowest level in our history as a public company since the second quarter of 2014.

第二季度，履行費用率為 6.1%，是我們作為上市公司自 2014 年第二季度以來的最低水平。

As Richard mentioned, our fulfillment expense ratio first began to rise in 2014 as we started to expand our logistics network into the lower-tier cities, creating short-term headwinds on our fulfillment expenses.

正如理查德提到的，我們的履約費用比率在 2014 年開始上升，當時我們開始將物流網絡擴展到低線城市，這對我們的履約費用造成了短期阻力。

In 2015, we expanded aggressively into the FMCG categories, where the average basket size was much smaller than our average order size at that time, creating further short-term headwinds on our fulfillment expense ratio.

2015年，我們積極擴展到快速消費品類別，該類別的平均購物籃規模遠小於我們當時的平均訂單規模，這對我們的履行費用率造成了進一步的短期阻力。

We then began expanding our capacity and service offerings in 2017 to drive scale while serving external business customers, which created an additional short-term increase in our fulfillment expense ratio.

隨後，我們在 2017 年開始擴大產能和服務範圍，以擴大規模，同時為外部企業客戶提供服務，這導致我們的履行費用率在短期內進一步增加。

Now 5 years later, when all the dust finally settled down, we emerged as a much stronger and a more efficient, modern logistics operator that can fulfill 6.5x more daily orders than 5 years ago.

5 年後的今天，當一切塵埃落定後，我們成為一家更強大、更高效的現代化物流運營商，每天的訂單量比 5 年前增加了 6.5 倍。

The greater scale, coupled with sophisticated supply chain technologies, have brought operating leverage, even as we fulfilled more and more small orders, further enhancing our structural advantage over our major retail peers and bringing more quality to our core economic model.

更大的規模，加上先進的供應鏈技術，帶來了運營槓桿，即使我們完成了越來越多的小訂單，進一步增強了我們相對於主要零售同行的結構優勢，並為我們的核心經濟模式帶來了更高的質量。

Our marketing expense ratio was 3.7% in the second quarter, reduced from 4.3% in the same quarter last year, mainly due to our redesigned marketing strategy and innovative marketing tools with better position and ROI.

第二季度我們的營銷費用率為3.7%，較去年同期的4.3%有所下降，主要得益於我們重新設計的營銷策略以及具有更好定位和投資回報率的創新營銷工具。

Our R&D expense ratio was 2.5%, up from 2.3% in the same quarter last year.

我們的研發費用率為 2.5%，高於去年同期的 2.3%。

The R&D expense amount, on the other hand, has stabilized sequentially from the last quarter as the key talent and IT infrastructure are largely in place.

另一方面，由於關鍵人才和IT基礎設施基本到位，研發費用金額較上季度連續穩定。

G&A expense ratio also improved to 0.9% in the second quarter, down from 1.1% in the same period last year.

第二季度管理及行政費用率也從去年同期的 1.1% 改善至 0.9%。

As a result, we achieved another record on both GAAP and non-GAAP operating income in the second quarter with the operating margins improving 2.4% and 2 percentage points, respectively, from the same quarter a year ago.

因此，我們第二季度的 GAAP 和非 GAAP 營業收入均再創新高，營業利潤率較去年同期分別提高 2.4% 和 2 個百分點。

The significant margin expansion was supported in sum by 3 key elements: one, JD Retail's gross margin expansion; two, effective marketing programs with better ROI; and three, significant improvement in JD Logistics' operating efficiency, which improved both its third-party operating margin and JD Retail's fulfillment expense ratio.

毛利率的大幅增長，歸根結底是由三個關鍵因素支撐的：一是京東零售的毛利率擴張；二、有效的營銷方案，具有更好的投資回報率；三是京東物流運營效率顯著提升，第三方運營利潤率和京東零售配送費用率均有所提升。

Our non-GAAP net income attributable to ordinary shareholders in the second quarter also set a new record at RMB 3.6 billion with a 2.4% net margin, up from 0.4% in the same period last year.

第二季度非美國通用會計準則歸屬於普通股股東的淨利潤也創下人民幣36億元的新紀錄，淨利潤率為2.4%，高於去年同期的0.4%。

Our free cash flow improved 39% year-over-year to RMB 18.3 billion during the quarter, driven by a healthy operating profit in a seasonally strong quarter for cash flow.

本季度，我們的自由現金流同比增長 39%，達到 183 億元人民幣，這得益於現金流季節性強勁季度的健康運營利潤。

Now that the onetime impact of the marketplace settlement change has phased out for 4 quarters, our free cash flow for the trailing 12 months has returned to a solid RMB 7.4 billion.

現在，市場結算變化的一次性影響已在 4 個季度內逐步消除，我們過去 12 個月的自由現金流已恢復到穩定的 74 億元人民幣。

Let's turn to our third quarter outlook.

讓我們轉向第三季度的展望。

In light of the accelerated growth momentum in the second quarter and July, we expect net revenue to grow between 20% and 24% on a year-over-year basis.

鑑於第二季度和7月份的加速增長勢頭，我們預計淨收入同比增長在20%至24%之間。

We remain optimistic about the Chinese consumer market and JD.com's competitive market position despite uncertainties with the macro environment.

儘管宏觀環境存在不確定性，我們仍對中國消費市場和京東的市場競爭地位保持樂觀。

Finally, I would like to comment on our full year earnings outlook.

最後，我想評論一下我們的全年盈利前景。

Our non-GAAP net income attributable to ordinary shareholders in the first half of 2019 was RMB 6.8 billion with a 2.5% net margin.

2019年上半年，我們的非美國通用會計準則歸屬於普通股股東的淨利潤為人民幣68億元，淨利潤率為2.5%。

In addition to economies of scale from JD Retail business and the rapid improvement in logistics' operating efficiencies, we also benefited from the newly enacted VAT tax reform as well as a couple of other items under other income, which totaled RMB 1.8 billion during the first half that may be nonrecurring in nature.

除了京東零售業務的規模效應和物流運營效率的快速提升外，我們還受益於新實施的增值稅稅制改革以及其他收入項下的其他項目，第一期總計人民幣18億元。一半可能本質上是一次性的。

We intend to reinvest these extra gains back into the business in the second half to drive our lower-tier cities strategy.

我們打算在下半年將這些額外收益重新投資到業務中，以推動我們的低線城市戰略。

Therefore, we are revising up our 2019 full year non-GAAP net income guidance to be between RMB 8 billion and RMB 9.6 billion, which reflect our second half investment strategy and our anticipation for continued macroeconomic uncertainties.

因此，我們將2019年全年非公認會計原則淨利潤指引上調至人民幣80億元至人民幣96億元之間，這反映了我們下半年的投資策略以及我們對宏觀經濟持續不確定性的預期。

The new margin guidance is above the historical peak level in 2017, and we believe our reinvestment strategy in the second half will help drive sustained growth and continuously rising profitability into 2020.

新的利潤指引高於2017年的歷史峰值水平，我們相信下半年的再投資策略將有助於推動2020年的持續增長和盈利能力的持續上升。

Overall, we are proud of the first half results, which speak for the success of the series of strategic and organizational changes we have implemented over the past several quarters.

總體而言，我們對上半年的業績感到自豪，這說明我們在過去幾個季度實施的一系列戰略和組織變革取得了成功。

We hope you share our confidence in our unique supply chain capabilities and the deep competitive mode around our scale and technology-driven business model.

我們希望您和我們一樣對我們獨特的供應鏈能力以及圍繞我們規模和技術驅動的商業模式的深度競爭模式充滿信心。

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。

Thank you.

謝謝。

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

（操作員說明）您的第一個問題來自高盛的Ronald Keung。

Congratulations on the strong beat and growth acceleration even in this rising bigger revenue base.

即使在收入基礎不斷擴大的情況下，我們仍能實現強勁增長和加速增長，對此表示祝賀。

So my question would be more on the investments and also your long-term margin commitments.

因此，我的問題更多是關於投資以及您的長期保證金承諾。

Given that, Sidney, you've said the full year guidance have been lifted and the implied second half margin will be roughly between -- calculated implied would be between 0.3% to 0.9%.

鑑於此，西德尼，您說過全年指引已被取消，下半年隱含利潤率將大致介於 - 計算得出的隱含利潤率將在 0.3% 至 0.9% 之間。

So what do we see as the major investments in the second half?

那麼下半年的主要投資是什麼？

And particularly you mentioned about -- Richard mentioned about fresh, AI, cloud, big data.

特別是你提到的——理查德提到了新鮮、人工智能、雲、大數據。

I just want to see what are the key moving parts that we expect we'll be spending higher in the second half leading to this more conservative sequential margin outlook into the second half.

我只是想看看我們預計下半年支出會增加的關鍵因素是什麼，從而導致下半年的連續利潤率前景更加保守。

And given the full year commitment around 1.4% to 1.7% net margin, how are we seeing the longer-term normalized margin potential of the business, particularly given the very strong first half?

考慮到全年淨利潤率約為 1.4% 至 1.7%，我們如何看待該業務的長期正常化利潤率潛力，特別是考慮到上半年的強勁表現？

If we see the net margins of Walmart between 3% to 4%, do we see this moving up to the sort of trends in the next 2, 3 years of normalized margin potential of the business?

如果我們看到沃爾瑪的淨利潤率在 3% 到 4% 之間，我們是否會看到這種趨勢會上升到該業務未來 2、3 年正常化利潤潛力的趨勢？

Sure, Ronald.

當然，羅納德。

Let me try to answer this.

讓我嘗試回答一下這個問題。

Well, first, I mentioned earlier that the first half, we had a couple of one-off items that we intend to reinvest, roughly RMB 1.8 billion.

嗯，首先，我之前提到，上半年我們有幾個一次性項目打算再投資，大約18億元人民幣。

So that would have an impact which will be invested mostly in the lower-tier city initiatives, not only on the new WeChat platform but also on logistics, that we actually intend to further penetrate down into those lower-tier city areas to enhance customer experience.

因此，這將產生影響，主要投資於低線城市計劃，不僅是新的微信平台，還有物流，我們實際上打算進一步滲透到這些低線城市地區，以增強客戶體驗。

And this is also -- the intention is to position ourselves for stronger growth or sustained growth well into next year and the years beyond.

這也是我們的目的是為明年及以後的幾年實現更強勁的增長或持續增長做好準備。

Our margin commitment has been quite clear, that we want to improve our margins consecutively on a year-over-year basis.

我們的利潤率承諾非常明確，我們希望逐年連續提高利潤率。

And as Richard also mentioned earlier, we now are -- we are in a much better position to generate this steadily improving profit because some of our major investment areas have now bearing fruit and are turning profitable.

正如理查德之前提到的，我們現在處於一個更好的位置，可以產生穩定增長的利潤，因為我們的一些主要投資領域現已結出碩果並開始盈利。

And the logistics and fulfillment expense ratio, examples that I highlighted, was just one of them where we actually went through a series of investment phases.

我強調的物流和履行費用比率只是我們實際上經歷了一系列投資階段的其中一個例子。

Some of them are really overlapping on top of each other.

其中一些確實是相互重疊的。

So for quite a few years, you couldn't tell whether we are ever going to have operating leverage or we'll just simply continue to increase the expense ratio.

因此，在相當長的一段時間裡，你無法判斷我們是否會擁有運營槓桿，或者我們只會繼續增加費用率。

So by this quarter, it's a good illustration that the fulfillment expense ratio actually went back to a historical low level since our IPO.

因此，到本季度，履行費用率實際上回到了我們 IPO 以來的歷史低位。

And clearly, we still have room to further improve because JD Logistics is still in investment phase.

顯然，我們還有進一步改進的空間，因為京東物流仍處於投資階段。

That's why it just broke even with a slight profit.

這就是為什麼它只是收支平衡並略有盈利。

Obviously, it will -- going forward, as it completes its investment cycle, the business should be much more profitable, which will in turn also drive further operating leverage on the JD Retail side.

顯然，隨著投資週期的完成，未來該業務的盈利能力應該會更高，這反過來也將進一步推動京東零售方面的運營槓桿。

So just coming back to your question on long-term profitability, we maintain our position that over the long term, our first-party retail business should generate 1 to 2 percentage points higher net margin than the best around off-line retailers.

因此，回到您關於長期盈利能力的問題，我們維持我們的立場，即從長遠來看，我們的第一方零售業務的淨利潤率應比線下零售商中最好的零售商高出 1 到 2 個百分點。

And we -- layering on top of that, we'll have our marketplace business, which generate a much higher accounting margin.

除此之外，我們還將擁有我們的市場業務，這將產生更高的會計利潤。

So combining the 2, we should be generating somewhere in high single digit in a combined net margin for the business.

因此，將兩者結合起來，我們的業務綜合淨利潤率應該會達到高個位數。

So that -- as also mentioned by Richard earlier, that we have always committed to a long-term margin trend that will ultimately reach that level.

因此，正如理查德之前提到的，我們始終致力於長期利潤率趨勢，最終將達到這一水平。

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。

Two quick follow-up questions on lower-tier city investment and expansion.

兩個關於低線城市投資和擴張的快速後續問題。

Could you elaborate how you will compete in the lower-tier cities, including how to position JD Pingou versus your more traditional JD Mall business as well as versus your key competitors, which either be using a different strategy, especially from -- sourcing from the manufacturers?

您能否詳細說明您將如何在低線城市競爭，包括如何定位京東拼購與您更傳統的京東商城業務以及與主要競爭對手的定位，這些競爭對手要么使用不同的策略，特別是從——採購製造商？

(foreign language)

（外語）

[Interpreted] Xu Lei of JD Retail.

【解讀】京東零售徐雷。

Regarding the lower-tier city questions, as I have shared in our past financial report, the first question we need to address in this matter is to find the most fitted products for our lower-tier city customers.

關於低線城市的問題，正如我在過去的財務報告中所分享的，我們需要解決的第一個問題是為我們的低線城市客戶找到最合適的產品。

Admittedly, in the past years, on JD platform, we offer more selections of products that better fit our first- and second-tier city customers.

誠然，過去幾年，在京東平台上，我們提供了更多更適合一二線城市客戶的產品選擇。

And so this year, we have stepped up efforts to select products that fit better to the lower-tier cities.

所以今年我們加大力度選擇更適合低線城市的產品。

We are working with our brand partners to build up the supplies of our products, for example, the BOM, the more cost-effective products, and also work with the industrial factory producers to produce the most fit product to sell to our lower-tier cities.

我們正在與我們的品牌合作夥伴合作，建立我們產品的供應，例如BOM，更具成本效益的產品，並與工業工廠生產商合作，生產最合適的產品，銷售給我們的下層客戶城市。

At the same time, we also diversify our businesses on the exclusive sales and exclusive products and more customer products.

同時，我們還在獨家銷售和獨家產品以及更多客戶產品上實現業務多元化。

These are all the efforts -- we want to diversify our offerings to our different segments of our customers.

這些都是我們的努力——我們希望為不同的客戶群體提供多樣化的產品。

(foreign language)

（外語）

[Interpreted] Secondly, based on the efforts we have done the first half of the year, we will launch our upgraded WeChat first-tier access point around the October.

【解讀】第二，在我們上半年工作的基礎上，我們將在10月份左右推出升級後的微信一級接入點。

And this is effort we're going to diversify and enrich our WeChat ecosystem and provide a new model that attracts lower-tier cities, especially for the female users and low-income users.

我們將努力實現微信生態系統的多元化和豐富化，並提供一種吸引低線城市的新模式，尤其是女性用戶和低收入用戶。

And we're going to also carry out policies with some lower take rates to attract the best products and the sellers to fit the need of the lower-tier customers.

我們還將實施一些較低的接受率政策，以吸引最好的產品和賣家，以滿足低端客戶的需求。

(foreign language)

（外語）

[Interpreted] And thirdly, we will also leverage our advantages of our 1P platform [business] (added by company after the call).

【解讀】第三，我們也會發揮我們1P平台【業務】的優勢（公司在電話會議後補充）。

We think this is the best abilities and our approaches to touch our lower-tier city customers.

我們認為這是我們觸動低線城市客戶的最好能力和方式。

And together with our abilities in our logistics, we are able to provide an all-around solution plan to our merchants, and at the same time, we keep the premier users' experience.

再加上我們的物流能力，我們能夠為商戶提供全方位的解決方案，同時保持優質的用戶體驗。

We believe we're going to win our merchant trust.

我們相信我們將贏得商家的信任。

And at the same time, we're going to also use our opening strategies and open platform to provide the best of support to our merchants.

同時，我們也會利用我們的開放策略和開放平台，為商家提供最好的支持。

Together, we'll advance to the lower-tier cities.

我們將共同進軍低線城市。

(foreign language)

（外語）

[Interpreted] And also I'm going to share a few data with you.

[解讀]我還要跟大家分享一些數據。

According to our statistics so far, the new users growth on our platform from the lower-tier cities, that is the third- to sixth-tier cities, the growth rate is much higher than the first and second-tier cities.

根據我們目前的統計，我們平台的新用戶增長來自於低線城市，即三至六線城市，增速遠高於一二線城市。

(foreign language)

（外語）

[Interpreted] And secondly, the number of overall new users coming from the lower-tier city has taken up 70% of our all user base.

【解讀】其次，來自低線城市的整體新增用戶數量已經占到了我們總用戶數的70%。

(foreign language)

（外語）

[Interpreted] And if you filter by the recipients' address, about 50% of the users are coming from the lower-tier cities now.

【解讀】如果按照收件人地址篩選的話，現在大約有50%的用戶來自於二三線城市。

(foreign language)

（外語）

[Interpreted] And lastly, the performance of lower-tier city customers are very exciting, and internally, we believe they can do better in the future.

【解讀】最後，低線城市客戶的表現非常令人興奮，我們內部相信他們未來可以做得更好。

(foreign language)

（外語）

[Interpreted] Thank you.

[已翻譯] 謝謝。

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。

Congratulation on the strong results.

祝賀取得了優異的成績。

I have some follow-up questions on -- Sidney, when you mentioned about this one-off profit, this RMB 1.8 billion that you plan to reinvest into the second half.

我有一些後續問題——西德尼，當你提到這一一次性利潤時，你計劃將這18億元人民幣再投資到下半年。

Can you maybe clarify a bit to us in terms of in the first half, how much of it, the one-off, is recognized in the first quarter versus the second quarter?

您能否向我們澄清一下，關於上半年的情況，第一季度與第二季度相比，有多少一次性的資金被確認？

And then how much of this RMB 1.8 billion, it is more the onetime in nature that is not recurring?

那麼這18億元人民幣中有多少是一次性的，不是經常性的？

And for the second half, when you try to spend this reinvestment amount, how should we think about the 3Q versus the 4Q level?

下半年，當你嘗試花費這筆再投資金額時，我們應該如何考慮第三季度和第四季度的水平？

Like which quarter will be more heavy-weighted?

比如哪個季度的權重會更大？

And with that, as we go into the next year, as JD commitment to continue to improve margins on a year-over-year basis, how should we think about the first half margin in 2020 versus the second half?

因此，當我們進入明年時，隨著京東承諾繼續同比提高利潤率，我們應該如何看待 2020 年上半年與下半年的利潤率？

So Alicia, so we are -- for the RMB 1.8 billion, you could roughly divide them equally into the first 2 quarters, so roughly RMB 0.9 billion each.

艾麗西亞，我們也是——對於 18 億元人民幣，你可以將它們大致平分到前兩個季度，所以每個季度大約是 9 億元人民幣。

So -- but for the second half, we are already implementing some of the reinvestment strategies.

所以，但在下半年，我們已經在實施一些再投資策略。

And also, as Ronald was quick earlier in back-calculating the ratio, I think in terms of guidance, it's very hard to just back-calculating into exact amount because we still have to anticipate how the competitive environment will be, how the macro environment will be and also provide enough flexibility for the business leaders to react and jump onto good opportunities to put capital to work.

而且，由於羅納德早些時候很快就反算了該比率，我認為就指導而言，很​​難反算出確切的金額，因為我們仍然必須預測競爭環境如何，宏觀環境如何將為企業領導者提供足夠的靈活性來做出反應並抓住資本發揮作用的良好機會。

So obviously, we will have to build in some room for all of these factors.

顯然，我們必須為所有這些因素留出一些空間。

So if you want to do a rough allocation then, I would think Q3 should somewhat better than Q4 as one is that we will introduce the new WeChat platform somewhere towards the end of Q3.

因此，如果你想做一個粗略的分配，我認為第三季度應該比第四季度好一些，因為我們將在第三季度末的某個地方推出新的微信平台。

And also, Q4, we'll have our Double Eleven promotion season.

另外，第四季度，我們將迎來雙十一促銷季。

But again, this is very preliminary guidance for the second half, and we do hope that we can -- we'll give you more clarity as we move into the fourth quarter.

但同樣，這是下半年的非常初步的指導，我們確實希望我們能夠——當我們進入第四季度時，我們將為您提供更清晰的信息。

Your next question comes from the line of Tina Long from Crédit Suisse.

您的下一個問題來自瑞士信貸銀行 (Crédit Suisse) 的蒂娜·朗 (Tina Long)。

Congratulations on the good results.

恭喜取得好成績。

I have a question more on the logistics side because in your segment reporting, that we have new business that the operating loss was about RMB 2 billion in second quarter.

我還有一個關於物流方面的問題，因為在你們的分部報告中，我們有新業務，第二季度的運營虧損約為20億元人民幣。

So I want to have a little bit more details on the loss breakdown by logistics, by technology and also probably overseas investments.

因此，我想了解更多有關按物流、技術以及可能還有海外投資劃分的損失細目的詳細信息。

And in the meantime, still on the logistics side, because Sidney just mentioned that in second quarter, we have achieved the GP margin breakeven for logistics.

與此同時，仍然是在物流方面，因為西德尼剛剛提到，在第二季度，我們已經實現了物流的毛利率盈虧平衡。

So I want to know for the full year outlook, and also probably, will we have further improvement like the operating margin breakeven in 2020?

所以我想知道全年的展望，也可能是，我們是否會像 2020 年的營業利潤率盈虧平衡那樣進一步改善？

And also, how are we going to achieve that?

而且，我們將如何實現這一目標？

Okay.

好的。

So let me take the first question, and then Zhenhui can maybe address the second one.

那麼我先回答第一個問題，然後振輝也許可以回答第二個問題。

So the first one, on segment reporting, it's a half year data.

第一個是關於分部報告的，這是半年的數據。

So the number you saw is for the first half.

所以你看到的數字是上半年的數字。

The largest operating loss from the new businesses now is in the technology initiatives, followed by logistics, which still had meaningful non-GAAP losses in Q1 but improving.

目前，新業務中最大的運營虧損來自於技術計劃，其次是物流，該業務在第一季度仍出現顯著的非公認會計準則虧損，但有所改善。

And Q2 was roughly around breakeven.

第二季度大致處於盈虧平衡點附近。

So -- and then followed by the overseas business.

那麼——然後是海外業務。

But overall, you have seen the loss ratio has come down significantly from the first half of 2018, and then also note that the revenue for new businesses has grown quite tremendously over the first half as well.

但總體而言，你可以看到虧損率較2018年上半年顯著下降，同時也注意到新業務的收入在上半年也有相當大的增長。

So we are seeing significantly narrowing loss ratio on these new businesses.

因此，我們看到這些新業務的損失率顯著縮小。

(foreign language)

（外語）

[Interpreted] Wang Zhenhui of JD Logistics.

【解讀】京東物流王振輝。

(foreign language)

（外語）

[Interpreted] And on your second question, as we show on this financial report, our external delivery orders' non-GAAP [operating profit] (corrected by company after the call) has [reached] (added by company after the call) breakeven.

[解釋]關於你的第二個問題，正如我們在本財務報告中顯示的那樣，我們的外部交貨訂單的非公認會計準則[營業利潤]（由公司在電話會議後更正）已[達到]（由公司在電話會議後添加）盈虧平衡。

And this year, we'll continue to optimize our operations and especially to continue our plan of a lower-tier city market and improve our users' experience in the first- to third-tier cities.

今年我們將繼續優化運營，特別是繼續推進低線城市市場的佈局，提升一三線城市的用戶體驗。

So we will make our efforts to ensure this year's [operating profit margin] (corrected by company after the call) will be greater than last year.

因此，我們將努力確保今年的[營業利潤率]（由公司在電話會議後修正）高於去年。

Your next question comes from the line of Thomas Chong from Jefferies.

您的下一個問題來自 Jefferies 的 Thomas Chong。

I have a question about our user growth trend.

我對我們的用戶增長趨勢有疑問。

How should we anticipate the user growth in the next couple of quarters or in the coming years as we penetrate into lower-tier cities?

當我們向低線城市滲透時，我們應該如何預測未來幾個季度或未來幾年的用戶增長？

Should we expect a reacceleration in the user growth?

我們是否應該期待用戶增長重新加速？

(foreign language)

（外語）

[Interpreted] Xu Lei of JD Retail.

【解讀】京東零售徐雷。

As I shared in the last quarter, the growth of users are mainly split into 2 parts.

正如我在上個季度分享的，用戶的增長主要分為兩部分。

One is the new users growth, which will our emphasis to work on in the following time.

一是新用戶的增長，這是我們接下來一段時間重點工作的方向。

At the same time, we're also paying attention to the repeated frequencies of the buying activities of our existing users.

同時，我們也在關注現有用戶購買活動的重複頻率。

You can see for the first half of the year, we have seen an increase of our new user acquisition.

您可以看到，今年上半年，我們的新用戶獲取量有所增加。

At the same time, the existing users are becoming more and more active, and their overall ARPU value continues to go up.

與此同時，存量用戶越來越活躍，整體ARPU值持續走高。

(foreign language)

（外語）

[Interpreted] And secondly, since earlier January this year, in the JD group and also JD Retail, we have emphasized our efforts on the users' experience and making NPS and et cetera indicators as important performance indicator.

【解讀】第二，從今年一月份開始，京東集團乃至京東零售都非常重視用戶體驗的工作，把NPS等指標作為重要的績效指標。

And for the first half of the year, we have seen the MPC value grow significantly.

今年上半年，我們看到 MPC 值大幅增長。

This is a major approach for us to ensure JD's reputation and the brand image in the industry and continue to win our customers' hearts.

這是我們確保京東在行業內的聲譽和品牌形象、持續贏得客戶心的重要舉措。

(foreign language)

（外語）

[Interpreted] As early this year, we came up with the concept of quality growth.

【解讀】今年年初，我們就提出了有質量增長的理念。

So we want to make sure no matter if the new customers or the existing customers, they will have a sustainable interactions with us.

因此，我們希望確保無論是新客戶還是現有客戶，他們都會與我們進行可持續的互動。

We are reluctant to use some short-term measures and the subsidy to drive a short-term customer shopping behavior.

我們不願意用一些短期的措施和補貼來帶動顧客的短期購物行為。

We don't think it's sustainable and will be a good investment for the long term.

我們認為它不可持續，從長遠來看將是一項不錯的投資。

(foreign language)

（外語）

[Interpreted] And just one more observation I want to add on.

[解釋]我想補充一點。

We do realize, the customers from the lower-tier cities, their first engagements with the e-commerce may start with some very small ticket size.

我們確實意識到，來自低線城市的客戶，他們第一次接觸電子商務可能會從一些非常小的訂單開始。

But in the longer run, as they get more accustomed to the online shopping behaviors, they will have a stronger pursuit for more high-quality products.

但從長遠來看，隨著他們越來越習慣網上購物行為，他們會對更高品質的產品有更強烈的追求。

This has been shown on the data on other platform and also some external data.

這已經在其他平台的數據和一些外部數據上得到了體現。

So we strongly believe that this is the value JD will stick to and create for our potential customers in the long run.

所以我們堅信，這就是京東長期堅持並為我們的潛在客戶創造的價值。

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。

Congratulations on the strong results.

祝賀取得了優異的成績。

My question is about the online advertising business growth potential.

我的問題是關於在線廣告業務的增長潛力。

This business has obviously been growing very fast and has been one of the key drivers of JD's margin expansion.

這項業務顯然增長非常快，並且一直是京東利潤率擴張的關鍵驅動力之一。

I wonder whether you can help us elaborate a bit more on the details about the online advertising business such as the overall pricing, customer mix.

不知道您能否幫我們詳細介紹一下在線廣告業務的具體情況，比如整體定價、客戶結構等。

And especially, how do you compare yourself with other e-commerce peers in terms of the growth potential in the online advertising business?

特別是，在在線廣告業務的增長潛力方面，您與其他電子商務同行相比如何？

(foreign language)

（外語）

[Interpreted] Xu Lei of JD Retail.

【解讀】京東零售徐雷。

For the first half of the year, our advertising revenue is mainly driven by our improved technology, mainly the AI and big data.

上半年，我們的廣告收入主要是由技術進步推動的，主要是人工智能和大數據。

And in Q2, we have revamped our main app and continue to optimize our algorithm.

在第二季度，我們改進了主應用程序並繼續優化我們的算法。

And the rate of merchants who are using our advertising system continue to grow and their ARPU value also grows.

使用我們廣告系統的商家比例持續增長，他們的 ARPU 值也在增長。

At this stage, we don't plan to increase our advertising inventory because we believe that though the revamped [user interface] (added by company after the call) of the main site gave us this possibility, but we'd rather to keep a balanced relationship between our advertising revenue growth and our users' experience and retail operations.

現階段，我們不打算增加廣告庫存，因為我們相信雖然主網站的改版[用戶界面]（由公司在通話後添加）給了我們這種可能性，但我們寧願保留一個我們的廣告收入增長與用戶體驗和零售運營之間的平衡關係。

(foreign language)

（外語）

[Interpreted] And we do realize that because of the overall macro environment, China's advertising market is under a great pressure.

【解讀】我們也確實意識到，受整體宏觀環境的影響，中國廣告市場面臨著巨大的壓力。

But with JD as a retail platform, we are aiming to provide our advertising products to serve our advertisers and the merchants.

但通過京東作為零售平台，我們的目標是提供廣告產品來服務我們的廣告商和商家。

And we do have the competitive advantage to get back some direct benefits and the ROI and conversion rates, which give us another hand in this difficult time.

我們確實擁有競爭優勢，可以收回一些直接利益以及投資回報率和轉化率，這在這個困難時期為我們提供了另一隻手。

And this has been reflected in the number of new advertisers and the feedback from other merchants.

這已經反映在新廣告商的數量和其他商家的反饋中。

(foreign language)

（外語）

[Interpreted] Thank you.

[已翻譯] 謝謝。

Your next question comes from the line of Andre Chang from JP Morgan.

您的下一個問題來自摩根大通的 Andre Chang。

A follow-up question on the reinvestment into the second half.

關於下半年再投資的後續問題。

After the reinvestment and the potential impact on the bottom line, which of the segment will face more pressure into the second half: is the retail business, the logistics or the new technology part?

再投資以及對盈利的潛在影響之後，下半年哪個細分市場將面臨更大的壓力：是零售業務、物流還是新技術部分？

And also, will that affect our CapEx to reaccelerate into the second half?

而且，這會影響我們的資本支出在下半年重新加速嗎？

Yes.

是的。

So the overall investments, they're more in the operating OpEx or gross profit as we give back to consumers through promotions, and also, as we launch the new platform at the new marketplace, we would not charge much of a take rate.

因此，總體投資更多的是運營支出或毛利潤，因為我們通過促銷回饋消費者，而且，當我們在新市場推出新平台時，我們不會收取太多費用。

So -- and it will take some time for the advertising to catch up.

所以——廣告需要一些時間才能跟上。

So these will be the main investment areas.

所以這些將是主要的投資領域。

And also mentioned on the logistics side, it's also through penetrating down to more lower-tier cities and -- so that we can improve the user experience and create the unique logistics experience for our new lower-tier city customers.

在物流方面也提到，也是通過滲透到更多的低線城市，這樣我們就可以改善用戶體驗，為我們新的低線城市客戶創造獨特的物流體驗。

We do not see a major increase in CapEx, but we have mentioned in the past that CapEx will be -- has been broken into 2 categories: one is for the properties build for sales, and one is for the other regular CapEx.

我們沒有看到資本支出大幅增加，但我們過去曾提到過，資本支出將分為兩類：一類是為銷售而建造的房產，一類是其他常規資本支出。

So on the first category, we do see good opportunities.

所以在第一類上，我們確實看到了很好的機會。

For example, in Tier 1 cities, we will clearly take the opportunity.

比如在一線城市，我們顯然會抓住機會。

So that on that part, it's less predictable.

所以在這方面，它不太可預測。

But overall, CapEx should be under control.

但總體而言，資本支出應該受到控制。

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

您的下一個問題來自中金公司的Natalie Wu。

Congratulations on a very solid quarter.

祝賀本季度業績非常穩健。

My question is regarding the JD Retail GP margin.

我的問題是關於京東零售 GP 利潤率。

It has a very robust 76 bps improvement in the second quarter.

第二季度的增長非常強勁，增長了 76 個基點。

Just wondering, if we exclude the contribution from the VAT tax reform, what will the number be?

只是想知道，如果排除增值稅改革的貢獻，這個數字會是多少？

And if we try to break it down, how much of the improvement comes from the 1P business and how much from the contribution of the marketplace and advertising business?

如果我們嘗試細分的話，有多少改進來自1P業務，有多少來自市場和廣告業務的貢獻？

And looking forward, which one will be the larger driver for the GP margin improvement of JD Retail in the future?

而展望未來，哪一項將成為京東零售毛利率提升的更大推動力？

Okay.

好的。

Sure.

當然。

So the VAT tax rebate is actually not very easy to separate out even though when the tax was enacted at the beginning of April.

所以說增值稅退稅雖然4月初就已經開始實行了，但其實也不是那麼容易單獨拿出來的。

So there will be -- the existing inventory will have some benefit and then also the new purchases.

因此，現有的庫存將會帶來一些好處，然後新的採購也會帶來一些好處。

But the issue is many suppliers and brands will also adjust their pricing strategy.

但問題是許多供應商和品牌也會調整他們的定價策略。

Many of them actually demand a lower official price.

他們中的許多人實際上要求較低的官方價格。

So it's actually hard to quantify exactly how much is the onetime of benefit, but we clearly recognize there's a meaningful element in Q2, especially from the existing inventory side.

因此，實際上很難準確量化一次性收益有多少，但我們清楚地認識到第二季度存在一個有意義的因素，特別是從現有庫存方面來看。

But because it's not a very clear-cut benefit, it has a lot of -- it's a result of a lot of interaction and discussions between the retailer and also the brand and also our promotion strategy.

但因為這不是一個非常明確的好處，所以它有很多——這是零售商、品牌以及我們的促銷策略之間大量互動和討論的結果。

But even without this one-off benefit, internally, we have analyzed that our 1P business should continue to -- no, should still have margin improvement in Q2.

但即使沒有這種一次性收益，我們內部分析認為，我們的 1P 業務應該會繼續——不，第二季度的利潤率仍然會有所改善。

And over the longer term, we mentioned that both 1P business gross margin and advertising should contribute quite significantly to our future margin expansion.

從長遠來看，我們提到1P業務的毛利率和廣告都應該對我們未來的利潤率擴張做出相當大的貢獻。

And if you look at the margin analysis we did, especially the one that's comparing our operating expense ratio with the top off-line retailers and also the gross margin with the same large retailers, you will see our gross margin was substantially lower, roughly 10 percentage points more -- lower than the off-line players.

如果你看一下我們所做的利潤率分析，尤其是將我們的運營費用率與頂級線下零售商進行比較，以及與相同大型零售商的毛利率進行比較，你會發現我們的毛利率要低得多，大約為 10比離線玩家低很多百分點。

So there's plenty of room for margin expansion as we continue to increase our scale and realize better and better purchasing price and also more customized product offerings.

因此，隨著我們不斷擴大規模、實現越來越好的採購價格以及更多定制產品，利潤率還有很大的擴張空間。

We are actually seeing improving mix in terms of customized products from our leading suppliers.

實際上，我們看到領先供應商的定制產品組合不斷改善。

So this will all help both offering our customers lowest price, everyday low price, but at the same time, continue to improve our margin.

因此，這都將有助於為我們的客戶提供最低的價格，每日低價，但同時，繼續提高我們的利潤。

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。

Two questions for me.

有兩個問題問我。

I think the first is on electronics and home appliances.

我認為第一個是電子和家用電器。

In the first half of this year, we saw a reacceleration in the growth rate there.

今年上半年，我們看到那裡的增長率再次加速。

So I just wanted to see if there are any specific drivers that helped that and also whether the VAT or income tax cuts, anything like that helped.

所以我只是想看看是否有任何特定的驅動因素對此有所幫助，以及增值稅或所得稅減免等類似措施是否有所幫助。

And second, just on Pingou.

其次，就在 Pinou 上。

Could we talk a little bit about the strategy to make that an independent unit?

我們可以談談使其成為一個獨立單位的策略嗎？

Okay.

好的。

So I'll take the first one.

所以我會選擇第一個。

Maybe Xu Lei will take the second one.

也許徐磊會拿第二個。

So on electronics, we mentioned actually the macro when it started in the second half of last year.

所以在電子產品方面，我們實際上在去年下半年開始時就提到了宏觀。

So we already saw some slowdown.

所以我們已經看到了一些放緩。

So the current growth rate in our mind is actually rather normal.

所以現在我們心目中的增長率其實是比較正常的。

We have always maintained that as market leader, we should be able to continue to grow well -- way above the industry average as we continue to take -- can see the benefit from the outsized consumer mind share and also our superior customer experience.

我們始終認為，作為市場領導者，我們應該能夠繼續良好增長——遠遠高於行業平均水平，因為我們繼續採取行動——可以看到巨大的消費者心智份額以及我們卓越的客戶體驗所帶來的好處。

So yes.

所以是的。

And on the other hand, the VAT tax does also help in terms of providing better value to our customers.

另一方面，增值稅也確實有助於為我們的客戶提供更好的價值。

(foreign language)

（外語）

[Interpreted] Xu Lei of JD Retail.

【解讀】京東零售徐雷。

Let me add a few more things on the category of electronic and home appliances.

讓我再補充一些關於電子和家用電器類別的內容。

(foreign language)

（外語）

[Interpreted] And we have realized a few factors that will contribute to the growth of these categories, such as the real estate market is recovering, especially in the third- to fourth-tier cities.

[解讀]我們已經意識到一些因素將有助於這些類別的增長，例如房地產市場正在復蘇，特別是在三四線城市。

And there are also some [seasonal] (corrected by company after the call) reasons as well as the government policies for the subsidies.

還有一些[季節性]（公司在電話後糾正）原因以及政府的補貼政策。

These are all conducive for this category's growth.

這些都有利於該品類的增長。

(foreign language)

（外語）

[Interpreted] And secondly, in terms of the products, before, we -- on our platform, we have more midrange-priced products that are more suitable for the first- and second-tier consumers.

【解讀】第二，從產品上來說，之前我們在我們的平台上，有更多的中端價位的產品，更適合一二線消費者。

And in this year, we continue to enrich and diversify our products in terms of the high-end and also the low-end products to cater to the different needs of our customers.

今年，我們不斷豐富和多元化我們的產品，既有高端產品，也有低端產品，以滿足客戶的不同需求。

For example, during our 6.18 shopping festival, we have collaborated with a number of high-end brands, and we found the sales result is very good.

比如我們6.18購物節期間，我們和一些高端品牌進行了合作，我們發現銷售效果非常好。

(foreign language)

（外語）

[Interpreted] And thirdly, since last year, we are also exploring some off-line business models, either of our 1P platform or our strategic collaborations.

【解讀】第三，從去年開始，我們也在探索一些線下的商業模式，要么是我們的1P平台，要么是我們的戰略合作。

And all these various forms of off-line collaborations are also conducive for this category's growth.

而各種形式的線下合作也有利於該品類的增長。

(foreign language)

（外語）

[Interpreted] And lastly, in these categories, we -- by leveraging our 1P platform abilities, we are gradually opening up our abilities in data and services with our brand merchants.

【解讀】最後，在這些品類中，我們利用我們的1P平台能力，逐步向我們的品牌商開放我們的數據和服務能力。

And we're going to continue to strengthen the collaboration with the brands and improve our supply chains.

我們將繼續加強與品牌商的合作，完善我們的供應鏈。

And these will be the direction we'll continue to improve to drive the growth of this category.

而這些將是我們持續改進的方向，以推動該品類的增長。

(foreign language)

（外語）

[Interpreted] Thank you.

[已翻譯] 謝謝。

We are now approaching the end of the conference call.

我們現在電話會議即將結束。

I will now turn the call over to JD.com's Jia Dong for closing remarks.

現在我將把電話轉給京東的賈東做總結髮言。

Once again, thank you for joining us today.

再次感謝您今天加入我們。

Please don't hesitate to contact us if you have any further questions.

如果您還有任何疑問，請隨時與我們聯繫。

Thank you for your continued support, and we look forward to talking with you in the coming months.

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 participation in today's conference.

感謝您參加今天的會議。

This concludes the presentation.

演示到此結束。

You may now disconnect.

您現在可以斷開連接。

Good day.

再會。

[Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]

[本文字記錄中標記為[已翻譯]的部分是由現場通話中的口譯員朗讀的。]