京東 (JD) 2021 Q2 法說會逐字稿

Hello and thank you for standing by for JD.com's 2021 Second Quarter and Interim Earnings Conference Call. (Operator Instructions)

您好，感謝您參與京東 2021 年第二季度和中期收益電話會議。 （操作員說明）

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

今天的會議正在錄製中。 （操作員說明）

I would now like to turn the meeting over to your host for today's conference, Mr. Sean Zhang, Director of Investor Relations. Please go ahead, sir.

我現在想將會議轉交給今天會議的主持人，投資者關係總監 Sean Zhang 先生。請繼續，先生。

Thank you, Leslie. Good evening and good morning, everyone. Welcome to our 2021 second quarter and interim result conference call. Joining on the call today are Mr. Lei Xu, CEO of JD Retail; and Mr. Sandy Xu, JD.com's CFO.

謝謝你，萊斯利。大家晚上好，早上好。歡迎參加我們的 2021 年第二季度和中期業績電話會議。京東零售CEO徐磊先生參加了今天的電話會議；和京東首席財務官徐志強先生。

For today's call, Lei will kick off with opening remarks, and Sandy will discuss the financial highlights. Both Lei and Sandy will join the Q&A session.

對於今天的電話會議，雷將首先致開幕詞，桑迪將討論財務亮點。雷和桑迪都將參加問答環節。

Before we continue, let me refer you to our safe harbor statement in the earnings press release which apply to this call as we will make forward-looking statements. Also, this call will include a discussion of certain non-GAAP financial measures. Please refer to our earnings release, which contains a reconciliation of non-GAAP measures to the most directly comparable GAAP measures. Finally, please note that, unless otherwise stated, all figures mentioned during this conference call are in RMB.

在我們繼續之前，讓我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。此外，本次電話會議還將討論某些非公認會計準則財務措施。請參閱我們的收益發布，其中包含非 GAAP 措施與最直接可比的 GAAP 措施的對賬。最後請注意，除非另有說明，本次電話會議中提及的所有數字均以人民幣為單位。

And now I'd like to turn the call to CEO of JD Retail, Mr. Lei Xu. (foreign language)

現在我想把電話轉給京東零售首席執行官徐磊先生。 （外語）

[Interpreted] Hello, everyone. This is Xu Lei, CEO of JD Retail. Thank you for joining our earnings call today.

[翻譯]大家好。我是京東零售CEO徐磊。感謝您今天參加我們的財報電話會議。

I believe you have all paid attention to and may concerned about the recent regulatory changes. As shared 2 months ago on JD's Investor Day, our observation is that these changes are essentially adaptive efforts made by the government as the industry undergoes high-speed growth. Regulators are working to bring platform economy-based enterprises into a standard regulatory framework, which can effectively rectify and regulate misconduct such as disorderly capital expansion or monopolistic conduct and so on.

相信大家都關注並可能關注近期的監管變化。正如兩個月前在京東的投資者日上所分享的，我們的觀察是，這些變化本質上是政府在行業高速增長時做出的適應性努力。監管部門正在努力將平台經濟型企業納入規範的監管框架，可以有效糾正和規範無序擴張資本或壟斷行為等不當行為。

Therefore, we believe these policies are not intended to restrict or suppress the Internet and relevant industries but rather to create a fair and orderly business environment and to promote long-term and sustainable development of these industries. We believe that the regulatory goals are conducive to JD's long-term business growth. So far, our business maintained steady growth while committing to best compliance practices.

因此，我們認為這些政策並非旨在限製或打壓互聯網及相關行業，而是為了營造公平有序的營商環境，促進這些行業的長期可持續發展。我們認為監管目標有利於京東的長期業務增長。迄今為止，我們的業務保持穩定增長，同時致力於最佳合規實踐。

Looking at JD's development in the past 18 years, our business model and strategy are proved to better position us moving forward in line with the general direction of regulations in China and even global markets.

縱觀京東18年的發展歷程，事實證明，我們的商業模式和戰略更能符合中國乃至全球市場監管的大方向。

First, JD's long-standing business principle of doing business the right way echoes the movement towards the principle of business for good. Since day 1, our priorities have remained the same. We always put customers' needs at the core, respect every employee and provide them with all-around safeguards, open up our capabilities to fully empower our business partners to achieve win-win results. On this journey, we keep on creating and sharing value for our stakeholders while doing our utmost to take on as much social responsibility as possible, some of which is even beyond our scale. We believe these acts are worthy of recognition in China and across the world.

首先，京東長期以來秉持的“以正道行”的經營理念，呼應了向善經營的理念。從第一天開始，我們的優先事項保持不變。我們始終以客戶需求為核心，尊重每一位員工，為他們提供全方位的保障，開放我們的能力，全面賦能業務夥伴，實現共贏。在這個過程中，我們不斷為利益相關者創造和分享價值，同時盡最大努力承擔盡可能多的社會責任，其中一些甚至超出了我們的規模。我們相信，這些行為在中國乃至全世界都值得肯定。

Second, JD.com is a new type of industrial enterprise that has both the traits of real economy and the digital technologies, which inherently differentiate us from the platform economy model. JD creates value along the entire industry value chain, from providing marketing and transaction technology support, delivery and aftersales services, all the way to industry upstream of warehousing, inventory management, product selection, pricing and manufacturing. By opening up our various capabilities accumulated over years to the real economy, offering one-stop selection-- one-stop solutions and continuously enhancing supply chain efficiency, we can truly achieve a nonzero-sum value co-creation with our users and business partners.

其次，京東是兼具實體經濟和數字技術特徵的新型工業企業，與平台經濟模式有著內在的區別。京東在整個行業價值鏈上創造價值，從提供營銷和交易技術支持、交付和售後服務，一直到倉儲、庫存管理、產品選擇、定價和製造的行業上游。將我們多年積累的各項能力開放給實體經濟，提供一站式選擇——一站式解決方案，不斷提升供應鏈效率，真正實現與用戶和商業夥伴的非零和價值共創.

At the same time, JD.com itself is part of the real economy, operating and managing more than 23 million square meters of warehouses nationwide and over 9 million self-operated SKUs. We also operate tens of thousands of off-line stores, including franchisee stores of home appliances, digital products, pharmacies, 7Fresh, omnichannel, supermarkets, convenience stores, JD Auto car maintenance service stores and more, while, at the same time, leverage our omnichannel model and supply chain capabilities to connect with nearly 1 million brick-and-motor stores out there on the market.

同時，京東本身也是實體經濟的一部分，運營管理著全國超過2300萬平方米的倉庫，超過900萬個自營SKU。我們還經營數万家線下門店，包括家電加盟店、數碼產品、藥店、7Fresh、全渠道、超市、便利店、京東汽車維修服務店等，同時利用槓桿我們的全渠道模式和供應鏈能力可與市場上近 100 萬家實體店建立聯繫。

In addition, we have close to 400,000 employees, including those in our unlisted subsidiaries and affiliates, and a majority of them work on the front lines in delivery, warehousing, customer service positions and more. The services they provide cover more than 550,000 administrative villages across China, enabling the country's 92% counties and 84% rural customers to enjoy same or next-day delivery services.

此外，我們擁有近 400,000 名員工，包括我們非上市子公司和關聯公司的員工，其中大部分在配送、倉儲、客戶服務崗位等一線工作。他們提供的服務覆蓋了全國55萬多個行政村，使全國92%的縣和84%的農村客戶享受到當日達或次日達服務。

Take our delivery personnel as an example. Different from many express delivery companies, we offer full-time jobs with formal employment contracts to nearly 300,000 blue-collar workers. In addition to social insurance and housing fund, we also provide accident insurance subsidies for working under special environment, COVID insurance, employee relief fund and more. These demonstrate the vast social value that JD creates, which sets us apart from platform economy model companies and reap ultra-high profits out of traffic and transaction flow.

以我們的送貨人員為例。與眾多快遞公司不同，我們為近30萬名藍領提供正式僱傭合同的全職工作。除了社會保險和住房公積金，我們還提供特殊環境下工作的意外保險補貼、新冠病毒保險、員工救濟金等。這些都體現了京東創造的巨大社會價值，讓我們有別於平台經濟樣板公司，從流量和交易流中獲得超高利潤。

JD's business philosophy is to promote quality products and rational consumption. Through providing best-in-class shopping experience, we are driving healthy growth of brands and merchants, which, in turn, helps to create stable and large-scale high-quality jobs. This enables us to form a virtuous cycle between commercial and social values. This is also fundamentally in contrast to driving the economy into a vicious circle in which normal market competition is disrupted by excessive price subsidies and merchants' profits are unreasonably squeezed.

京東的經營理念是提倡優質產品和理性消費。通過提供一流的購物體驗，我們正在推動品牌和商家的健康成長，從而有助於創造穩定和大規模的高質量就業機會。這使我們能夠在商業價值和社會價值之間形成良性循環。這也與將經濟推入惡性循環，過度的價格補貼擾亂正常的市場競爭，不合理地擠壓商家利潤形成了根本性的反差。

With all that in mind, we believe JD's business model and strategy position us well to move forward in line with the general direction of regulatory policies and will foster healthier growth in the future.

考慮到所有這些，我們相信京東的商業模式和戰略使我們能夠很好地按照監管政策的大方向前進，並將促進未來更健康的增長。

Now I would like to walk you through some of JD Retail's business highlights in Q2.

現在我想帶你了解一下京東零售在第二季度的一些業務亮點。

JD Retail continued high-quality growth in Q2. Not only did we achieve continued top line growth from a high base last year but also maintained steady margin expansion on a comparable basis, thanks to our improved supply chain and operating efficiency. Despite the complex competitive landscape, we achieved a GMV growth of 27.7% year-on-year during the 618 Grand Promotion, sustaining the recovery momentum of the entire retail market and the upstream industries in China. In a challenging market environment, such result is solid proof of JD's rising recognition and mind share among customers, suppliers and friends.

京東零售在第二季度繼續保持高質量增長。由於我們改善了供應鍊和運營效率，我們不僅在去年的高基數基礎上實現了持續的收入增長，而且在可比基礎上保持了穩定的利潤率增長。儘管競爭格局複雜，但在618大促期間，我們實現GMV同比增長27.7%，保持了整個零售市場和中國上游行業的複蘇勢頭。在充滿挑戰的市場環境中，這樣的成績有力地證明了京東在客戶、供應商和朋友中的認可度和心智份額不斷提高。

This is also evident in the high-quality growth of JD active users in Q2 following the milestone of 500 million active users that we achieved on April 1. We are excited to see our annual active usage increase by nearly 32 million, setting a new record of single-quarter net increment. At the same time, we see the quality of new users continue to improve on the aspects of retention rate, shopping frequency and more. Furthermore, the average revenue per user of existing users as well as all users blended continue to grow. This means that both the user base and their lifetime value on JD increased. There are many other operating and financial highlights in the quarter that Sandy will elaborate on later.

繼 4 月 1 日達到 5 億活躍用戶的里程碑後，京東活躍用戶在第二季度的高質量增長也體現了這一點。我們很高興看到我們的年活躍用戶增長近 3200 萬，創下新紀錄單季度淨增量。同時，我們看到新用戶的質量在留存率、購物頻率等方面不斷提高。此外，現有用戶以及所有混合用戶的每用戶平均收入繼續增長。這意味著京東的用戶群和他們的生命週期價值都增加了。本季度還有許多其他運營和財務亮點，桑迪稍後將詳細闡述。

Second, we pressed ahead on the omnichannel strategy. I've shared during the Investor Day that the rationale behind our omnichannel strategy is to break the glass ceiling for JD's long-term growth. I'd like to reiterate that only JD's business model has the ability to truly bend the omnichannel plan.

二是推進全渠道戰略。我在投資者日分享了我們全渠道戰略背後的基本原理是打破京東長期增長的玻璃天花板。我想重申，只有京東的商業模式才能真正改變全渠道計劃。

This is because that the strategy is founded on JD's supply chain capabilities which we have built and honed over the past 18 years. With our supply chain, digital operation and integrated marketing capabilities in various shopping scenarios, both online and offline, we can synergize with suppliers and partners to effectively meet the customers' needs that cannot be met by a pure online platform or B2C model. Moreover, we have built an open platform to adapt to the ever-changing market with ultimate goal to sell products from all over the world and sell products everywhere in the world.

這是因為該戰略建立在京東在過去 18 年中建立和磨練的供應鏈能力之上。憑藉我們在線上和線下各種購物場景的供應鏈、數字化運營和整合營銷能力，我們可以與供應商和合作夥伴進行協同，以有效滿足純在線平台或B2C模式無法滿足的客戶需求。此外，我們建立了一個開放的平台，以適應瞬息萬變的市場，最終目標是銷售來自世界各地的產品，將產品銷往世界各地。

As of Q2, through O2O supply chain solutions, omnichannel marketing and other models, JD's omnichannel business has covered millions of brick-and-mortar merchants. And our goal this year is to further expand our universal capabilities in omnichannel, making breakthroughs in key areas and then introducing these capabilities into more business formats and regions.

截至Q2，通過O2O供應鏈解決方案、全渠道營銷等模式，京東全渠道業務已覆蓋數百萬實體商戶。而我們今年的目標是進一步拓展我們在全渠道的通用能力，在重點領域取得突破，然後將這些能力引入更多的業態和區域。

Third, by empowering merchants on the third-party marketplace, we have been working to alleviate burdens and improve efficiency for merchants this year. We introduced a series of smart operation tools such as simple onboarding process, intelligent customer service management, simple advertisement placement, merchants' growth center as well as our integrated supply chain solution, which helps to lower the entry barriers for new merchants and improve their operating and growth efficiency.

第三，通過對第三方市場的商家賦能，今年我們一直在努力為商家減輕負擔，提高效率。引入簡易入駐流程、智能客服管理、簡易廣告投放、商戶成長中心等一系列智慧運營工具，以及整合供應鏈解決方案，幫助新商戶降低准入門檻，提昇運營水平和增長效率。

In this quarter, our marketplace business made progress in 3 main areas. First, the overall number and types of merchants grew both year-on-year and quarter-over-quarter; second, merchants' operating efficiency, satisfaction level and retention rates further improved; and third, the Net Promoter Scores of our marketplace business continued to improve. This all speak to the increasing recognition of merchants and customers and healthy business growth.

本季度，我們的市場業務在三個主要領域取得了進展。一是商戶總量和類型同比和環比均增長；二是商戶經營效率、滿意度和留存率進一步提高。第三，我們的市場業務的淨推薦值繼續提高。這一切都說明了商家和客戶的認可度越來越高，業務健康增長。

We're encouraged to welcome a number of new brands on JD.com, including BVLGARI, menswear brand Berluti and other brands under the LVMH Group, as well as many returning brands, including Victoria's Secret, eifini, Maniform and Erdos.

我們鼓勵在京東迎來一批新品牌，包括BVLGARI、男裝品牌Berluti和LVMH集團旗下的其他品牌，以及維多利亞的秘密、eifini、Maniform和鄂爾多斯等眾多回歸品牌。

I hope that by sharing, we can help you better understand that JD's business philosophy and models, strategies and development are moving ahead in line with the general direction of the regulatory and market development. In the current market environment, we believe JD is set to have more strategic advantages and development opportunities over the long term.

希望通過分享，可以幫助大家更好地了解京東的經營理念和模式、戰略和發展，是順著監管和市場發展的大方向前進的。在當前的市場環境下，我們認為京東將在長期內擁有更多的戰略優勢和發展機遇。

Finally, I'd like to reiterate that JD is committed to delivering certainty and high-quality growth in a time of uncertainties and living up to everyone's support and faith in us. This concludes my remarks today. Now I'd like to give the floor to Sandy for more details.

最後，我想重申一下，京東致力於在充滿不確定性的時期實現確定性和高質量增長，不辜負大家對我們的支持和信任。我今天的發言到此結束。現在我想請桑迪發言以了解更多詳情。

Thank you, Lei. Hello, everyone. Today, JD is reporting a very solid quarter with healthy growth across many of our operation and financial metrics as well as many exciting progress along our new strategic directions. This is particularly encouraging amidst the dynamic competitive landscape.

謝謝你，雷。大家好。今天，京東報告了一個非常穩健的季度，我們的許多運營和財務指標都實現了健康增長，並且在我們的新戰略方向上取得了許多令人興奮的進展。在充滿活力的競爭格局中，這尤其令人鼓舞。

I'd like to echo what Lei has said, that our persistence performance has clearly been guided from day 1 by our business philosophy of value creation for all and supported by our unique business model that is deeply rooted in the real economy. As you may recall, we demonstrated the resilience of our business model and execution a year ago at the height of the COVID challenge. I believe we will continue to show resilience and thrive in the current changing environment as well.

我想附和雷軍所說的，我們堅持的表現從第一天起就以我們為所有人創造價值的經營理念為指導，並以我們獨特的商業模式為支撐，這種商業模式深深植根於實體經濟。您可能還記得，一年前在 COVID 挑戰最嚴重的時候，我們展示了我們的商業模式和執行的彈性。我相信我們也將在當前不斷變化的環境中繼續展現韌性並茁壯成長。

Before going through the financials, let me share a few convincing business progress we have delivered and some of the positive trends we saw during the quarter.

在介紹財務數據之前，讓我分享一些我們已經交付的令人信服的業務進展以及我們在本季度看到的一些積極趨勢。

First, I want to add some color on user trends. We are encouraged by the continued growth of our active user base, with our LTM total active users reaching 532 million in Q2, up 27% year-on-year on a high comp from last year. We are excited to welcome 32 million new users this quarter, which is the largest quarterly addition in our history. We are heartened by the fact that this was driven by the increasing trust and engagement from users with different demographics and diverse demand.

首先，我想為用戶趨勢添加一些顏色。我們對活躍用戶群的持續增長感到鼓舞，我們的 LTM 總活躍用戶在第二季度達到 5.32 億，同比增長 27%，比去年高。我們很高興本季度迎來 3200 萬新用戶，這是我們歷史上最大的季度新增用戶。我們感到鼓舞的是，這是由具有不同人口統計和多樣化需求的用戶日益增加的信任和參與推動的。

We continue to win over price-sensitive users with our broad selection of value-for-money products and diverse services. Users from lower-tier markets not only continued to contribute nearly 80% of our new users in Q2, they also accounted for over 70% of our total active users in the last 12 months by shipping address.

我們繼續通過我們廣泛的物有所值產品和多樣化的服務來贏得對價格敏感的用戶。來自低線市場的用戶不僅在第二季度繼續貢獻了我們近 80% 的新用戶，而且在過去 12 個月中，按收貨地址計算，他們還占我們總活躍用戶的 70% 以上。

Along with the healthy growth of our new users, we are also encouraged by the higher engagement from our existing users. More notably, the number of paying members in JD Plus program grew 30% year-on-year during the quarter, further strengthening its position as the largest paid e-commerce membership program in China. As Plus members now enjoy a broader array of benefits on the JD app and in off-line stores, their ARPU continued to increase, reaching over 9 times that of non-Plus users. So for our brands and merchants, JD Plus creates both the effective engagement with JD's high-value users and meaningful incremental sales.

隨著新用戶的健康增長，我們也對現有用戶的更高參與度感到鼓舞。更值得注意的是，本季度京東Plus計劃的付費會員數量同比增長30%，進一步鞏固了其作為中國最大的付費電子商務會員計劃的地位。隨著 Plus 會員現在在京東應用和線下商店享受更廣泛的福利，他們的 ARPU 持續增加，達到非 Plus 用戶的 9 倍以上。因此，對於我們的品牌和商家而言，JD Plus 既創造了與京東高價值用戶的有效互動，又創造了有意義的增量銷售。

Overall, the improving engagement of our users was reflected in the higher average number of orders per user and the acceleration of total order volume growth to over 40% in Q2, which is faster than our LTM active user growth. We believe our strong user growth is healthy and sustainable.

總體而言，我們用戶參與度的提高體現在每位用戶的平均訂單數量增加以及第二季度總訂單量增長加速至 40% 以上，這快於我們的 LTM 活躍用戶增長。我們相信我們強勁的用戶增長是健康和可持續的。

Now let's turn to our financial performance in the second quarter.

現在讓我們轉向我們在第二季度的財務表現。

We set a new quarterly revenue record of RMB 254 billion in the second quarter, up 26% year-on-year against a high comparable base from last year and maintained a robust 30% 2-year CAGR.

我們在第二季度創下了 2,540 億元人民幣的季度收入新紀錄，與去年相比較高的可比基數同比增長 26%，並保持強勁的 30% 的 2 年復合年增長率。

Our net service revenues continued to grow rapidly at 49% year-on-year, more than double the 23% year-on-year growth of net product revenues in the quarter. Net service revenues were mainly driven by 72% year-on-year growth of logistics and other service revenues and 35% year-on-year growth of marketplace and advertising revenues. Note that within logistics and other services, the near triple-digit growth of JD Logistics' external revenues was partially offset by the deconsolidation of Cloud & AI business.

我們的淨服務收入繼續快速增長，同比增長 49%，是本季度淨產品收入同比增長 23% 的兩倍多。淨服務收入主要受到物流和其他服務收入同比增長 72% 以及市場和廣告收入同比增長 35% 的推動。請注意，在物流和其他服務領域，京東物流外部收入接近三位數的增長被雲和人工智能業務的分拆部分抵消。

Net service revenues contributed 13.4% of total revenues in Q2, up 200 basis points from a year ago, demonstrating the potential of our diversifying revenue growth.

淨服務收入在第二季度佔總收入的 13.4%，比一年前增加了 200 個基點，顯示了我們多元化收入增長的潛力。

Turning to the segment performance. Our core business JD Retail's revenues reached RMB 233 billion in Q2 with 23% year-on-year growth on a high comp of 33% year-on-year growth in Q2 last year. The 2-year revenue CAGR was 28%.

談到細分市場的表現。我們的核心業務京東零售第二季度收入達到人民幣 2330 億元，同比增長 23%，而去年第二季度同比增長 33%。 2 年收入複合年增長率為 28%。

We continue to see successful category expansion as general merchandise revenues grew 29.5% year-on-year and 37% 2-year CAGR in Q2. This was led by our supermarket categories, including food and beverage, cleansing and personal care categories. Meanwhile, our electronics and home appliance revenues grew 20% year-on-year on the high comp with a 2-year CAGR of 24%. Furthermore, our third-party marketplace business continued to grow faster than our 1P business in terms of both year-on-year and the 2-year CAGR in the second quarter, especially during our June 18 anniversary sale, boding well for the healthy improvement of our marketplace ecosystem.

我們繼續看到成功的品類擴張，因為第二季度一般商品收入同比增長 29.5% 和 37% 的 2 年復合年增長率。這由我們的超市類別引領，包括食品和飲料、清潔和個人護理類別。與此同時，我們的電子產品和家電收入同比增長 20%，兩年復合年增長率為 24%。此外，我們的第三方市場業務在第二季度的同比和 2 年 CAGR 均繼續快於我們的 1P 業務，尤其是在我們 6 月 18 日的周年慶促銷期間，預示著健康的改善我們的市場生態系統。

It's worth highlighting that JD Retail's LTM active users grew 27% year-on-year and remained the predominant driver for our new user growth, thanks to its superior user experience and strong user mindshare.

值得一提的是，京東零售的LTM活躍用戶同比增長27%，憑藉其卓越的用戶體驗和強大的用戶佔有率，仍然是我們新用戶增長的主要驅動力。

The solid revenue growth of our core retail business was accompanied by a remarkably resilient margin performance. In the second quarter, JD Retail fulfilled gross margin improved 30 basis points year-on-year, and operating margin remained stable at 2.6%. Considering the one-off COVID-related impact resulting in less resources spent on marketing activities as well as the social security benefit we received in the second quarter last year, the operating margin of JD Retail actually improved in Q2 this year on a comparable basis. Mainly thanks to technology-led overall operating efficiency improvement, our core retail business is set to maintain its trajectory of sustainable healthy growth and steady margin improvement.

我們核心零售業務的穩健收入增長伴隨著顯著彈性的利潤率表現。二季度，京東零售實現毛利率同比提升30個基點，營業利潤率穩定在2.6%。考慮到與 COVID 相關的一次性影響導致營銷活動資源減少以及我們在去年第二季度獲得的社會保障福利，京東零售今年第二季度的營業利潤率實際上在可比基礎上有所改善。主要得益於以技術為主導的整體運營效率提升，我們的核心零售業務將保持其可持續健康增長和穩步提升利潤率的軌跡。

Our JD Logistics business remains in a high secular growth stage. JD Logistics revenues grew 46% year-on-year and 45% 2-year CAGR to RMB 26 billion in the second quarter.

我們的京東物流業務仍處於高速增長階段。京東物流第二季度收入同比增長 46%，2 年復合年增長率為 45%，達到 260 億元人民幣。

It's worth highlighting that JD Logistics is a great example of JD's commitment to investing in long-term value creation for the benefit of society and taking on more social responsibility. This includes not only creating high-quality employment but also providing sufficient protection and social as well as commercial insurance coverage for all of our frontline employees. These genuine efforts deeply resonate with our employees, who then provide best-in-class services to and build personal connections with our customers.

值得強調的是，京東物流是京東致力於長期投資創造價值，造福社會，承擔更多社會責任的典範。這不僅包括創造高質量的就業機會，還包括為我們所有的一線員工提供足夠的保障以及社會和商業保險。這些真誠的努力引起了我們員工的強烈共鳴，他們隨後為我們的客戶提供一流的服務並與他們建立個人聯繫。

Our efforts have also resonated with the government and regulators, evidenced by the social insurance reduction benefits and other supportive measures from the government we received last year. JD Logistics has reinvested these benefits in logistics infrastructure and technology to expand its total addressable market and support e-commerce development in the less-developed regions. While these long-term focused investments continue to weigh on near-term profitability, it's encouraging to see that JD Logistics' operating loss has largely narrowed sequentially.

我們的努力也引起了政府和監管機構的共鳴，去年我們從政府收到的社會保險減免福利和其他支持措施就是明證。京東物流將這些優勢再投資於物流基礎設施和技術，以擴大其潛在市場並支持欠發達地區的電子商務發展。儘管這些以長期為重點的投資繼續對近期盈利能力構成壓力，但令人鼓舞的是，京東物流的經營虧損已在環比上大幅收窄。

JD Logistics currently operates over 1,200 warehouses with an aggregate gross floor area of 23 million square meters.

京東物流目前經營1200多個倉庫，總建築面積2300萬平方米。

Our New business segment revenues reached RMB 7 billion in the second quarter, with both year-on-year and 2-year CAGR accelerating to approximately 60%. The revenue growth of New businesses was primarily driven by triple-digit growth of Jingxi business and partially offset by the deconsolidation of our Cloud & AI business.

第二季度新業務板塊收入達到人民幣70億元，同比和2年CAGR均加速至60%左右。新業務的收入增長主要受到京西業務三位數增長的推動，部分被雲與人工智能業務的分拆所抵消。

Operating loss in New businesses was RMB 3 billion as compared to RMB 2.3 billion in the first quarter mainly driven by the investments in infrastructure and capabilities in lower-tier markets.

新業務的經營虧損為人民幣 30 億元，而第一季度為人民幣 23 億元，主要受基建投資和低線市場能力的推動。

Jingxi business is on track to meet its long-term goals of improving agricultural supply chain and retail infrastructure efficiency in lower-tier markets, serving price-sensitive customers under the Jingxi brand and creating value for the local economies. During our June 18 anniversary sale Jingxi sold a total of 22.5 million kilograms of agricultural products with orders delivered from over 200 industrial belts.

京西業務正朝著改善低線市場農業供應鍊和零售基礎設施效率、以京西品牌服務價格敏感客戶以及為當地經濟創造價值的長期目標邁進。在我們 6 月 18 日的周年慶特賣中，京西共銷售了 2250 萬公斤農產品，訂單來自 200 多個產業帶。

We are in a better position to empower local SMEs, including the mom-and-pop stores, by providing supply chain support for their businesses and creating diverse revenue streams for them. Overall, we will continue to pursue new growth opportunities with financial discipline for the long-term sustainable growth for our business.

通過為他們的業務提供供應鏈支持並為他們創造多樣化的收入來源，我們能夠更好地賦能本地中小企業，包括夫妻店。總體而言，我們將繼續以財務紀律尋求新的增長機會，以實現我們業務的長期可持續增長。

Now turning to the consolidated margin. Non-GAAP net income attributable to ordinary shareholders was RMB 4.6 billion with non-GAAP net margin 1.8%, down from 2.9% in the same quarter last year, mainly due to the social security reduction we received last year and increased investments in our logistics and new business opportunities to position us for the long term.

現在轉向合併保證金。 Non-GAAP歸屬於普通股股東的淨利潤為人民幣46億元，non-GAAP淨利潤率為1.8%，低於去年同期的2.9%，主要是由於我們去年收到的社會保障減少以及對物流的投資增加和新的商機，使我們能夠長期定位。

Our inventory turnover days further shortened to 31 days in the last 12 months, remaining at the lowest level among leading global retailers, thanks to our continuously improving operating efficiency, even as the total number of SKUs directly managed by us under the 1P model continued to expand to over 9 million in the second quarter, up from 8 million last quarter.

過去 12 個月，我們的庫存周轉天數進一步縮短至 31 天，在全球領先零售商中保持最低水平，這得益於我們不斷提高的運營效率，儘管我們在 1P 模式下直接管理的 SKU 總數繼續第二季度擴大到超過 900 萬，高於上一季度的 800 萬。

As of June 30, 2021, cash and cash equivalents, restricted cash and short-term investments added up to a total of RMB 178 billion, up from RMB 139 billion at the end of Q1.

截至 2021 年 6 月 30 日，現金及現金等價物、受限現金和短期投資合計為 1,780 億元人民幣，高於第一季度末的 1,390 億元人民幣。

Our free cash flow for trailing 12 months was RMB 31.9 billion, up from RMB 22.7 billion a year ago.

我們過去 12 個月的自由現金流為人民幣 319 億元，高於一年前的人民幣 227 億元。

In summary, we achieved healthy user and topline growth with diversified growth drivers while maintaining solid profitability in our core retail business. Going forward, we will continue to balance growth and investments while remaining committed to our business philosophy, shouldering our responsibilities as a corporate citizen and creating long-term value for shareholders and the society.

總而言之，我們以多元化的增長動力實現了健康的用戶和收入增長，同時保持了核心零售業務的穩健盈利能力。展望未來，我們將繼續平衡發展與投資，同時堅守我們的經營理念，承擔企業公民的責任，為股東和社會創造長期價值。

With that, let's now open the call for Q&A. Thank you.

有了這個，現在讓我們打開問答電話。謝謝你。

(Operator Instructions) We have the first question from the line of Ronald Keung from Goldman Sachs.

（操作員說明）我們有來自高盛的 Ronald Keung 的第一個問題。

Congratulations on the strong results, Xu Lei, Sandy and Sean. My question would be on new businesses. And we have seen the new business loss have widened sequentially. So I just want to hear, can management share some of the latest developments in this segment, mostly, I believe, with the new business unit? Any user trends or overlap with JD Retail that [impact] slightly on the user trends, just spend versus on JD Retail and the group? And our expectations into, say, the second half of this year, particularly on our ROI-focused investments. But also earlier, we commented in the past on a 6-month lag of the ramp-up of investments versus some of the community group purchase peers. Let me translate my question if that helps. (foreign language)

恭喜徐磊、桑迪和肖恩取得優異的成績。我的問題是關於新業務。我們已經看到新業務虧損環比擴大。所以我只是想听聽，管理層能否與新業務部門分享這一領域的一些最新發展？任何用戶趨勢或與京東零售的重疊對用戶趨勢有輕微影響，只是在京東零售和集團上的支出？以及我們對今年下半年的期望，尤其是對我們以投資回報率為重點的投資。但同樣早些時候，我們過去曾評論說，與一些社區團購同行相比，投資增長滯後了 6 個月。如果有幫助，讓我翻譯我的問題。 （外語）

Thanks, Ronald. This is Sandy. Let me take this question. Jingxi's well on track of its long-term goals of better serving the price-sensitive customers with value-for-money products. In Q2, we are seeing some initial results of our efforts. Jingxi Pinpin expanded by over 300 quarter-over-quarter in both daily order volume and GMV in the second quarter with active users growing even faster.

謝謝，羅納德。這是桑迪。讓我來回答這個問題。京喜的長期目標是更好地為價格敏感的客戶提供物有所值的產品。在第二季度，我們看到了我們努力的一些初步成果。京喜品品二季度日訂單量和GMV環比增長逾300家，活躍用戶增長更快。

I want to emphasize that we believe cost efficiency and customer experience are always the key to the long-term success of retail industry, which translates into the supply chain and logistics capabilities, rather than merely competing in subsidy to expand scale at whatever cost.

我想強調的是，我們相信成本效率和客戶體驗始終是零售業長期成功的關鍵，這轉化為供應鍊和物流能力，而不僅僅是為了不惜任何代價擴大規模而競爭補貼。

To reflect this, we made some strategic adjustments for this business recently, as you may have seen from the media. First, we focused on building capabilities in certain selected regions with strategic superiority, i.e., in the regions that we can achieve better customer experience and operating efficiency based on our Phase 1 business development result. We will continue to drive efficiency in these selected regions through the increasing order density and enhance the local supply chain and the logistics network.

為了反映這一點，我們最近對這項業務進行了一些戰略調整，您可能已經從媒體中看到了這一點。一是重點在具有戰略優勢的特定區域進行能力建設，即在第一階段業務發展成果的基礎上，在能夠實現更好客戶體驗和運營效率的區域進行能力建設。我們將繼續通過提高訂單密度和加強當地供應鍊和物流網絡來提高這些選定地區的效率。

And second, on the supply chain side, we will cooperate with the local governments to better promote the Vegetable Basket Project and better integrate and leverage our existing retail supply chain.

其次，在供應鏈方面，我們將與當地政府合作，更好地推進菜籃子項目，更好地整合和利用我們現有的零售供應鏈。

Third, we will explore to better integrate our customers' interfaces of WeChat Mini Program and our Jingxi app. And then we will also further integrate our logistics network for the long chain, short chain and B2B network to drive better efficiency and user experience. We will also increase the penetration of Jingxi Pinpin's business in the mom-and-pop stores that are already our customers for our B2B convenience store business, creating more traffic and value for these store owners.

第三，我們將探索更好地整合我們的微信小程序和京西應用的客戶界面。然後我們還將進一步整合我們的長鏈、短鍊和B2B網絡的物流網絡，以提高效率和用戶體驗。我們還將增加京喜品品業務在已經是我們B2B便利店業務客戶的夫妻店的滲透，為這些店主創造更多流量和價值。

So last, Pinpin business is a good supplement of JD Retail's omnichannel strategy, which can provide users with different product selections and shopping experience.

所以最後，拼拼業務是京東零售全渠道戰略的一個很好的補充，可以為用戶提供不同的產品選擇和購物體驗。

So we have more confidence in this business model under the current macro environment if everyone competes on building capabilities and driving efficiency instead of competing on subsidies.

所以在當前的宏觀環境下，如果大家都在能力建設和效率上競爭，而不是在補貼上競爭，我們對這種商業模式更有信心。

On the investment side for this new business, as I mentioned in the opening remarks, that we will -- going forward, we will continue to balance growth and investments and drive -- find growth potentials for our long-term sustainable growth. At this stage, we will continue to focus on customer experience and service quality for the new business. The investment level would be somewhere -- relatively consistent with what we communicated with the market before.

在這項新業務的投資方面，正如我在開場白中提到的那樣，我們將 - 展望未來，我們將繼續平衡增長和投資並推動 - 為我們的長期可持續增長尋找增長潛力。現階段，我們將繼續關注新業務的客戶體驗和服務質量。投資水平會在某個地方——與我們之前與市場溝通的內容相對一致。

We have the next question from the line of Thomas Chong from Jefferies.

我們有來自 Jefferies 的 Thomas Chong 的下一個問題。

(foreign language) Congratulations on a very strong set of results. In particular, JD Retail, that we are seeing the growth and the margin are very solid. Just want to get a sense about JD Retail second half outlook on the revenue and margin side given that we have seen the recent outbreak of COVID.

（外語）恭喜取得了非常強的成績。特別是京東零售，我們看到增長和利潤率非常穩定。鑑於我們已經看到最近爆發的 COVID，只想了解京東零售下半年的收入和利潤率前景。

[Interpreted] This is Xu Lei from JD Retail to give you a brief introduction of the outlook for the second half of the year. And we have seen that in July, we have kept steady growth momentum, which -- thanks to our years of accumulated capabilities on supply chain and services.

【解讀】京東零售徐磊為大家簡單介紹一下下半年的展望。我們看到，7月份我們保持了穩定的增長勢頭，這得益於我們多年來在供應鍊和服務方面積累的能力。

At the same time, we also want to see that in Q3, we are faced with multiple challenges from the macro environment, including some extreme weather, the reoccurrence of COVID cases and complicated international economic situation such as the commodity price fluctuations at a high level. So these are all the challenges we're facing. And we all see that for the government and all the companies, we're making our efforts to face these adverse factors.

同時，我們也希望看到，在第三季度，我們面臨著來自宏觀環境的多重挑戰，包括一些極端天氣、新冠肺炎病例的再次發生以及大宗商品價格高位波動等複雜的國際經濟形勢。 .所以這些都是我們面臨的挑戰。我們都看到，對於政府和所有公司來說，我們正在努力面對這些不利因素。

And for JD.com, JD's development is deeply rooted in the growth of the real economy. So for the second half of the year, we will continue to open up our capabilities in supply chain and services to provide more stable and certainty and support for our customers and the partners under a time of uncertainties. So on this point, we are optimistic on our performance in the second half of the year.

而對於京東來說，京東的發展深深植根於實體經濟的成長。所以下半年，我們將繼續開放供應鍊和服務能力，在不確定的時期為我們的客戶和合作夥伴提供更加穩定和確定性的支持。所以在這一點上，我們看好我們下半年的表現。

Despite of all these uncertainties from the external environment, we also see some coming back of the consumers' shopping demand and consumption power. So overall, I think the macro policy is in favor to support the domestic consumption and to encourage the digital transformation of all the industries to strike a balance of development, both online and off-line, and to promote the capability construction of the modern industrial chain. So all this and as well as to promote domestic consumption. So overall, we think it's on the right track. However, we also noticed that for some consumption areas, such as those related to travel and physical contact-related areas, their coming back will be slower.

儘管外部環境存在這些不確定性，但我們也看到消費者的購物需求和消費能力有所回升。所以總的來說，我認為宏觀政策是有利於支持國內消費，鼓勵各行業數字化轉型，實現線上線下平衡發展，促進現代產業能力建設。鏈。所以這一切都是為了促進國內消費。所以總的來說，我們認為它在正確的軌道上。但我們也注意到，對於一些消費領域，比如與旅行相關的領域、與身體接觸相關的領域，它們的回歸會比較慢。

At the beginning of the year, we said that for 2021, we expect our retail business to largely maintain the growth momentum from 2020 on an apple-to-apple basis. That means we need to take out the impact of some COVID-related nonrecurring sales. At this stage, our expectation for JD Retail's full year growth remains unchanged for the second half.

今年年初，我們表示，2021年，我們預計零售業務將在蘋果對蘋果的基礎上基本保持2020年的增長勢頭。這意味著我們需要消除一些與 COVID 相關的非經常性銷售的影響。現階段，我們對京東零售下半年全年增長的預期保持不變。

And then on the user side, we continue to see healthy user growth and improving engagement. So for the second half, we expect to see continued momentum in user order frequency and order volume from both new and existing

然後在用戶方面，我們繼續看到健康的用戶增長和提高參與度。因此，在下半年，我們預計新老用戶訂單頻率和訂單量將繼續保持增長勢頭

(technical difficulty)

（技術難度）

Category-wise, we expect to see that the category mix shift will continue, general merchandise categories to grow faster than electronics and home appliance, in particular the supermarket and health care categories.

品類方面，我們預計品類組合的轉變將繼續，日用商品品類的增長速度將超過電子和家電，尤其是超市和保健品品類。

On the bottom line, looking ahead, we remain confident that we can deliver steady improvement in net margin in the long term for JD Retail. So first, the margin for most of our key categories is still much lower than the industry level and our business partners. So we have a healthy upside for sustainable margin improvement. And second, the underlying drivers for our margin improvement are the technology-driven improvement in scale economies and operating efficiency. Again, I want to emphasize, we don't manage the short-term or quarterly profitability due to the dynamic market conditions and to the flexibility required to manage our growth strategy, including to adjust our promotion and marketing strategy from time to time. If you look at a relatively longer-term period, we have been delivering and are well on track of our long-term margin trajectory for our retail business.

歸根結底，展望未來，我們仍然相信我們能夠為京東零售帶來長期的淨利潤率穩步提升。首先，我們大部分關鍵品類的利潤率仍然遠低於行業水平和我們的業務合作夥伴。因此，我們對可持續的利潤率提高有一個健康的上行空間。其次，我們利潤率提高的根本驅動因素是技術驅動的規模經濟和運營效率的提高。我想再次強調，由於動態的市場條件以及管理我們的增長戰略所需的靈活性，包括不時調整我們的促銷和營銷策略，我們不管理短期或季度盈利能力。如果你看一個相對較長的時期，我們一直在交付，並且正在跟踪我們零售業務的長期利潤率軌跡。

We have the next question coming from the line of Eddie Leung from Bank of America.

我們有來自美國銀行的 Eddie Leung 的下一個問題。

I have a question on the gross margin for the second quarter. We understand that there must be different factors at work because I think Sandy also mentioned that you've got JD logistics, you've got revenue mix shift, we have some of the new business such as JD Jingxi growing. So could you talk a little bit more about the different factors behind the trend of gross margin in the second quarter and perhaps in the upcoming couple of quarters? So that's my first question.

我對第二季度的毛利率有疑問。我們知道一定有不同的因素在起作用，因為我認為桑迪還提到你有京東物流，你有收入組合的轉變，我們有一些新的業務，比如京東京西正在增長。那麼您能否多談談第二季度以及未來幾個季度毛利率趨勢背後的不同因素？所以這是我的第一個問題。

And then just a follow-up question on the accounting side. Sandy, should we expect any change in the forward tax rate given some of the other Internet companies mentioned a potential change in policy of the -- some of the preferential tax policy?

然後只是會計方面的後續問題。桑迪，鑑於其他一些互聯網公司提到了一些稅收優惠政策的潛在變化，我們是否應該預期遠期稅率會發生變化？

(foreign language)

（外語）

Thanks, Eddie, for your question. For gross margin, I guess let me walk you through segment by segment. I mentioned in my opening remarks that for JD Retail, if you look at the fulfilled gross margin, it actually went up by 30 basis points this quarter compared to same quarter last year. So it's a positive, improving trend. And this was driven by our technology-driven scale economy and fulfillment efficiency.

謝謝，埃迪，你的問題。對於毛利率，我想讓我逐段介紹。我在開場白中提到，對於京東零售，如果您查看已實現的毛利率，本季度實際上與去年同期相比上升了 30 個基點。所以這是一個積極的、改善的趨勢。這是由我們技術驅動的規模經濟和履行效率驅動的。

Because of the category mix shift, internally we don't manage and we don't look at the gross margin movement. Plus, on one side, it is the category mix shift that will affect the overall gross margin trend.

由於品類組合的轉變，我們在內部不進行管理，也不關注毛利率的變動。另外，一方面，將影響整體毛利率趨勢的是品類組合的轉變。

And secondly, as we are adopting our omnichannel strategy, because we are leveraging warehouse and inventory resources of off-line business partners, in this case sometimes we would share some of the gross profit with them. But at the same time, it helps us save the fulfillment cost. So the fulfilled gross margin improves while you may see a decline in gross margin under the omnichannel strategy. So gross margin is no longer very meaningful for retail business. So -- and going forward, I would also encourage the investors and analysts to look at the fulfilled gross margin for retail business.

其次，由於我們採用全渠道戰略，因為我們正在利用線下業務合作夥伴的倉庫和庫存資源，在這種情況下，有時我們會與他們分享部分毛利。但同時，它也幫助我們節省了履行成本。因此，在全渠道策略下，實現的毛利率會提高，而您可能會看到毛利率下降。因此，毛利率對零售業務不再具有太大意義。因此，展望未來，我還鼓勵投資者和分析師關注零售業務的已實現毛利率。

And then secondly, on logistics, I talked about their operating margin a little bit. It's mainly due to the social security refunds that we received last year. So on the consolidated financial statements, this refund is going to -- actually affected 2 financial statement line items. One is our cost of sales for logistics business, and second is the fulfillment cost for retail business.

其次，在物流方面，我稍微談到了他們的營業利潤率。這主要是由於我們去年收到的社會保障退款。因此，在合併財務報表上，這筆退款將——實際上影響了 2 個財務報表項目。一是我們物流業務的銷售成本，二是零售業務的履行成本。

So this -- and for the margin of logistics, it is also affected by the pace of investments in capacity because in the first half year last year, we didn't make investments in capacity to support their future growth as normal. So really, then we'll make some forward investments in the second half of the year which will be gradually absorbed as we grow in scale.

所以這一點 - 對於物流的利潤率，它也受到產能投資步伐的影響，因為去年上半年，我們沒有像往常一樣進行產能投資以支持他們未來的增長。所以說真的，那麼下半年我們會做一些遠期投資，隨著我們規模的擴大，這些投資將逐漸被吸收。

And then third, on the new business, at this stage, it is operated under a relatively lower gross margin compared to our core retail business as we are still in the process of building our supply chain capabilities. So these investments are for future growth potential, as I mentioned. And so that's why on the consolidated level, you'll see our gross margin may affected a little bit.

第三，在新業務方面，現階段與我們的核心零售業務相比，它的毛利率相對較低，因為我們仍在建立我們的供應鏈能力。因此，正如我所提到的，這些投資是為了未來的增長潛力。這就是為什麼在綜合層面上，您會看到我們的毛利率可能會受到一點影響。

And on your second question regarding the effective tax rate, I would say -- so first of all, JD has been generating very thin profit margin compared to some other technology companies. We had significant accumulated losses at a consolidated level until the end of 2019. And you can see from our disclosure in the annual report as of December 31, 2020, some of our subsidiaries still had pretty significant net operating loss carryforward, which can be used in the future for tax deduction.

關於你關於有效稅率的第二個問題，我想說——首先，與其他一些科技公司相比，京東的利潤率一直很低。截至 2019 年底，我們在合併水平上累計出現重大虧損。您可以從我們在 2020 年 12 月 31 日的年報中披露的信息中看到，我們的一些子公司仍有相當大的淨營業虧損結轉，可以使用將來用於減稅。

And then second, most of our subsidiaries in China are subject to an income tax rate of 25%, where certain subsidiaries benefit from the preferential tax treatment under the relevant tax law and regulations, including the high new technology enterprises, software enterprises and encouraged industries in the Western region. Certain R&D expenses of our subsidiaries are also qualified for super deduction of 175%. These were all disclosed in our annual report.

其次，我們在中國的大部分子公司適用25%的所得稅稅率，部分子公司享受相關稅收法律法規規定的稅收優惠，包括高新技術企業、軟件企業和鼓勵類行業在西部地區。子公司的部分研發費用也符合175%的加計扣除條件。這些都在我們的年報中披露。

As of today, we have not received any notice that the existing tax preferential treatments we applied have been rejected, and we have not received any notice. So the recent news regarding tax rebates from other companies you have heard is focused on the key software enterprises.

截至今日，我們尚未收到任何關於我們申請的現有稅收優惠政策被拒絕的通知，我們也未收到任何通知。所以你最近聽到的其他公司關於退稅的消息都集中在重點軟件企業上。

So none of JD's subsidiaries have ever applied for the key software enterprise in our history. So we believe going forward, JD is a new type of real economy-based enterprise with revenue mainly coming from retail and logistics business as well as supply chain-related service fees. Therefore, our tax treatment won't be affected by the change of the policy of the key software enterprises.

所以京東的子公司都沒有申請過我們歷史上的重點軟件企業。所以我們認為，未來京東是一種新型實體經濟企業，收入主要來自零售和物流業務以及供應鏈相關的服務費。因此，我們的稅收待遇不會受到重點軟件企業政策變化的影響。

We have the next question from the line of Jerry Liu from UBS.

我們有來自瑞銀的 Jerry Liu 的下一個問題。

(foreign language) My question is related to regulation. I just wanted to get a little bit more color around the puts and takes on potential impact, for example, relating to either user data or ability to invest in the second half of the year. And on potentially the positive side, if regulation has a bigger impact on our peers? If -- could that help, for example, user or GMV growth in the second half of the year?

（外語）我的問題與監管有關。我只是想在看跌期權周圍獲得更多色彩，並承擔潛在影響，例如，與用戶數據或下半年投資能力有關。在潛在的積極方面，如果監管對我們的同行產生更大的影響？如果——這會有助於下半年的用戶或 GMV 增長嗎？

[Interpreted] [This is Xu Lei, undoubtedly, we believe that the introduction of regulatory] (corrected by the company after the call) policies on the Internet industry recently is a good thing for the long-term and healthy development of the industry. In JD's development history, we have suffered from unfair market behaviors such as pick 1 from 2, excessive price subsidies and a disordered capital expansion and more. JD welcomes the stepping up of regulations in this industry. We firmly believe that this will be good for the long-term development of the industry and related companies.

【解讀】【這位是徐磊，毋庸置疑，我們認為近期互聯網行業出台的監管】（公司電話後更正）政策對於行業的長期健康發展是一件好事。在京東的發展歷程中，我們曾遭遇過二選一、價格補貼過高、資本擴張無序等不公平的市場行為。京東歡迎該行業加強監管。我們堅信，這將有利於行業及相關企業的長遠發展。

Based on our observation on the status, the recent wave of regulation focus on the following main areas: disordered expansion of capital, market monopolies, data security and privacy, misuse of technologies and algorithms, closed systems that disrupts fair market competition and so on. So for now, we have completed a round of our internal self-review and rectification according to the regulatory requirement. And we have also set up our internal supervision system to work on the big data security safeguard system, and we also carry out active communications with the regulators and got their positive feedback. So for now, we don't see a major impact on our business operations so far.

根據我們對現狀的觀察，近期的監管浪潮主要集中在以下幾個方面：資本無序擴張、市場壟斷、數據安全和隱私、技術和算法濫用、封閉系統擾亂公平市場競爭等。所以目前，我們已經按照監管要求完成了一輪內部自查整改。我們還建立了內部監督體系，在大數據安全保障體系方面開展工作，並與監管部門積極溝通，得到了積極反饋。因此，到目前為止，我們還沒有看到對我們的業務運營產生重大影響。

And also, I want to mention that JD has always paid great importance on the data security and the personal information. So the arrival of the new regulations are not making a big impact on us in terms of our advertising business and so on.

另外，我想提一下，京東一直非常重視數據安全和個人信息。因此，新法規的出台並沒有對我們的廣告業務等產生重大影響。

And we can foresee that this will be a main trend to strengthen the regulations on personal data, personal information not only in China but on the global horizons. And this will have a greater impact on those advertising-driven platforms.

我們可以預見，這將是加強個人數據、個人信息監管的主要趨勢，不僅在中國，而且在全球範圍內。而這將對那些廣告驅動的平台產生更大的影響。

And more words about the pick 1 from 2. Actually, we have seen -- since early this year, we have welcomed a number of new products. And also, some products -- some brands are returning to our platform. Those returned platforms -- returned brands include Starbucks, Estee Lauder and more. And for the new products, as I mentioned in my remarks, that they were BVLGARI and a number of emerging Chinese brands. [We also are] (corrected by the company after the call) carrying out a number of innovative ways to collaborate with us.

還有更多關於從 2 中選擇 1 的內容。實際上，我們已經看到 -- 自今年年初以來，我們已經迎來了許多新產品。而且，一些產品——一些品牌正在回歸我們的平台。那些被退回的平台——被退回的品牌包括星巴克、雅詩蘭黛等。而對於新品，正如我在發言中提到的，它們是BVLGARI和一些新興的中國品牌。 [我們也]（在電話會議後由公司更正）開展了許多創新方式與我們合作。

And for us, we're also providing different supportive initiatives for this brand to better operate on our platforms. For example, we have a special initiative to support new brands to grow and thrive on our platform. And we also plan out some growth routes and marking out their growth routes for the KA Market this year.

對於我們來說，我們還為這個品牌提供了不同的支持計劃，以更好地在我們的平台上運營。例如，我們有一項特別計劃來支持新品牌在我們的平台上發展壯大。我們也為今年的KA市場規劃了一些增長路線，標出了他們的增長路線。

So as I mentioned earlier that -- in our earlier call, that for these new brands, they're joining or they're rejoining to our new platform. It takes time for them to adapt to JD's platform in terms of their operating styles and how they interact with their customers. So this will take a bit of time. And to help them, too, we will also make our efforts to help them to build up their brands and their mindshares among our JD customers.

所以正如我之前提到的——在我們之前的電話會議中，對於這些新品牌來說，他們正在加入或重新加入我們的新平台。他們需要時間來適應京東平台的運營風格以及與客戶的互動方式。所以這將需要一些時間。為了幫助他們，我們還將努力幫助他們建立自己的品牌並在京東客戶中建立他們的思想份額。

Also, I want to mention during this year's 618 Grand Promotion, we have seen a big growth on our marketplace platform. The growth rate of our top business or the marketplace platform has a 9 basis points higher growth rate than our self-operated platform. Actually, the top business has become a main driver for our business growth. And a lot of analysts and consumers might believe that JD is a platform to better sell for our self-operated products, those standard products such as mobile phones or PC. Actually, for this quarter, we have seen that on our marketplace platforms, the sales of, for example, the mobile phones has increased 100%, which also confirmed the healthy growth trend of our ecosystem for our marketplace platform. And in the future, JD has -- JD will continue to commit to building multiple-channel platforms that involve our B2C models, our marketplace platform, omnichannel, B2C and our on-demand consumption model. Thank you.

另外，我想提一下，在今年的 618 大促期間，我們看到了我們的市場平台的巨大增長。我們的頂級業務或市場平台的增長率比我們的自營平台高 9 個基點。實際上，頂級業務已成為我們業務增長的主要動力。很多分析師和消費者可能認為京東是一個更好地銷售我們自營產品的平台，那些標準產品，如手機或PC。實際上，在本季度，我們已經看到在我們的市場平台上，例如手機的銷售額增長了 100%，這也證實了我們市場平台生態系統的健康增長趨勢。在未來，京東將繼續致力於構建多渠道平台，包括我們的 B2C 模型、我們的市場平台、全渠道、B2C 和我們的按需消費模型。謝謝你。

Ladies and gentlemen, we are approaching the end of the conference call. I will now turn the call over to JD.com's Sean Zhang for closing remarks.

女士們，先生們，我們即將結束電話會議。我現在將把電話轉給京東的 Sean Zhang 來做閉幕詞。

Thank you for joining us today on the call and for your questions. If you have any further questions, please contact me and our team. Thank you for your continued support in JD, and we look forward to talking to you next quarter. Thank you.

感謝您今天加入我們的電話會議並提出您的問題。如果您有任何其他問題，請聯繫我和我們的團隊。感謝您一直以來對京東的支持，期待下個季度與您交流。謝謝你。

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

謝謝你，先生。感謝您參加今天的會議。介紹到此結束。您現在可以斷開連接。再會。

[Portions of this transcript that are marked

[此成績單中標記的部分

[Interpreted] were spoken by an interpreter present on the live call.]

[口譯]由現場通話中的口譯員講話。]