京東 (JD) 2022 Q2 法說會逐字稿

Hello, and thank you for standing by for JD.com's Second Quarter and Interim 2022 Earnings Conference Call. (Operator Instructions) Today's conference is being recorded. (Operator Instructions) 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.

您好，感謝您等待京東第二季度和 2022 年中期收益電話會議。 （操作員說明）今天的會議正在錄製中。 （操作員說明）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。

Thank you. Good evening and good day, everyone. Welcome to JD.com's Second Quarter and Interim 2022 Earnings Conference Call. Let me introduce the management team on the call today. CEO of JD.com, Mr. Lei Xu, will kick off with opening remarks. Our CFO, Ms. Sandy Xu, will discuss the financial highlights. After that, we'll open the call to questions from analysts.

謝謝你。大家晚上好，美好的一天。歡迎參加京東 2022 年第二季度和中期收益電話會議。讓我介紹一下今天電話會議上的管理團隊。京東首席執行官徐磊先生將首先致開幕詞。我們的首席財務官 Sandy Xu 女士將討論財務亮點。在那之後，我們將打開分析師提問的電話。

I would like to remind you that during this call, our comments and responses to your question reflect management's view as of today only and will include forward-looking statements. And please refer to our latest safe harbor statement in the earnings press release on our IR website, which applies to this call. We'll discuss certain non-GAAP financial measures. Please also refer to the reconciliation of non-GAAP measures to the comparable GAAP measures in our press release. Also, please note, unless otherwise stated, all figures mentioned in this call are in RMB.

我想提醒您，在本次電話會議中，我們對您問題的評論和答复僅反映了管理層截至今天的觀點，並將包括前瞻性陳述。請參閱我們 IR 網站上收益新聞稿中的最新安全港聲明，該聲明適用於本次電話會議。我們將討論某些非公認會計原則的財務措施。另請參閱我們新聞稿中的非公認會計原則措施與可比公認會計原則措施的對賬。此外，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 over to Mr. Xu, our CEO. Mr. Xu.

現在我想把電話轉給我們的首席執行官徐先生。徐先生。

[Interpreted] Hello, everyone. This is Xu Lei. Thank you for joining JD.com's 2022 Second Quarter Earnings Call.

[翻譯]大家好。這是徐磊。感謝您參加京東 2022 年第二季度財報電話會議。

In the second quarter, a combination of factors has brought unprecedented challenges to the retail and consumer industry in China, such as the COVID resurgence across many regions and the complex macroeconomic and external environment. China's GDP grew 0.4% year-on-year, while total retail sales fell 4.6%, both hitting their lowest levels of the past 2 years. Despite all that, JD managed to help its users and partners to drive through the difficulties and continue to outpace China's overall retail industry whilst delivering steady improvement in operating efficiency and margin. This once again demonstrates JD's resilience and healthy momentum through difficult cycles.

二季度，多地疫情回潮、宏觀經濟和外部環境複雜等因素給中國零售和消費行業帶來前所未有的挑戰。中國 GDP 同比增長 0.4%，而零售總額下降 4.6%，均創兩年來的最低水平。儘管如此，京東還是幫助用戶和合作夥伴渡過難關，繼續超越中國整體零售行業，同時運營效率和利潤率穩步提升。這再次證明了京東在艱難週期中的韌性和健康勢頭。

China's economy has experienced a rapid development for a long time, but economic development is thought to be cyclical, creating theoretical challenges for businesses. Companies need to have a long-term (inaudible) and proactively build strategies and capabilities that will support its growth for the long term. This will enable them to mitigate cyclical fluctuations with resilience, showcase greater value and lay a stronger foundation for the (inaudible). This mindset is fundamentally different from that of pursuing explosive short-term growth.

長期以來，中國經濟經歷了快速發展，但經濟發展被認為是周期性的，給企業帶來了理論挑戰。公司需要有一個長期的（聽不清）並主動建立戰略和能力，以支持其長期增長。這將使他們能夠以彈性緩解週期性波動，展示更大的價值並為（聽不清）奠定更堅實的基礎。這種心態與追求爆發式的短期增長有著根本的不同。

Now I'd like to share with you why JD remains confident in the future and what we are doing amid a challenging macro environment. First, we have always focused on user experience, cost optimization and efficiency to build a long-term business model and core competencies. In Q2, our annual active user base remains strong, mainly driven by healthy user growth in our form JD retail business, which recorded a substantial net addition of over 10 million users and double-digit percentage growth on a year-on-year basis. On top of this, our long standing pursuit of superior user experience further propelled user quality, as evidenced by the increases in DAU's user shopping frequency and ARPU. In particular, our DAU achieved a 25% year-on-year growth in Q2.

現在我想和大家分享一下為什麼京東對未來充滿信心，以及我們在充滿挑戰的宏觀環境中所做的事情。首先，我們始終關注用戶體驗、成本優化和效率，構建長期的商業模式和核心競爭力。第二季度，我們的年度活躍用戶基數保持強勁，主要受京東零售業務用戶健康增長的推動，該業務錄得超過 1000 萬用戶的大幅淨增和同比兩位數的百分比增長。此外，我們長期以來對卓越用戶體驗的追求進一步提升了用戶質量，這一點從 DAU 的用戶購物頻率和 ARPU 的增加就可以看出。特別是，我們的 DAU 在第二季度實現了 25% 的同比增長。

Looking at different user segments, JD Plus members, who are amount of the users with highest consumption power and stickiness, further expanded by 5 million in the first 7 months and passed 30 million user milestone last month. While scaling up, Plus members also maintained high average annual spending, which was 8x from that of the non-Plus members by Q2. We're also pleased to see that our new users have more appreciation and trust in JD, with a notable increase in ARPU and record high shopping frequencies for the past 3 years. More female, Gen Z and elderly groups are becoming modern users of JD, thanks to our efforts over the years to always put consumers at first and sharing everyone's love. This also set a solid foundation for our users growth and core improvement in the second half of the year and the year to come.

從不同的用戶細分來看，作為消費力和粘性最高的用戶群，京東Plus會員在前7個月進一步擴大了500萬，上個月突破了3000萬用戶的里程碑。在擴大規模的同時，Plus 會員還保持了較高的平均年支出，到第二季度是非 Plus 會員的 8 倍。我們也很高興地看到，我們的新用戶對京東有了更多的欣賞和信任，ARPU 顯著提升，購物頻率連續三年創歷史新高。京東多年來始終把消費者放在第一位，分享大家的愛，讓越來越多的女性、Z世代和老年群體成為京東的現代用戶。這也為我們下半年和未來一年的用戶增長和核心提升奠定了堅實的基礎。

JD continues to drive forward its long-term strategy based on 3 pillars, namely, consumer, merchandise and shopping scenarios. As such, we have made a (inaudible) effort in exploring low-tier market, building core capabilities in the supply chain middle platform, expanding omnichannel or intra-city business, and further strengthening our online marketplace ecosystem. The lower-tier market has always been an important incremental part of our addressable market, and we have made a long-term commitment to it. In light of the evolving macro and industry environment, as shared before, we have shifted our focus to the efficiency of our resource allocation in the area.

京東繼續推進基於消費者、商品和購物場景三大支柱的長期戰略。因此，我們在探索低端市場、在供應鏈中台建設核心能力、擴展全渠道或同城業務以及進一步加強我們的在線市場生態系統方面做出了（聽不清）的努力。低端市場一直是我們目標市場的重要增量部分，我們對此做出了長期承諾。鑑於不斷變化的宏觀和行業環境，如前所述，我們已將重點轉移到該地區資源配置的效率上。

Moving to the supply chain middle platform. We believe that this is far more than a driver to improve our gross margin and cost structure and plays a key role in increasing operating efficiency in the retail industry, boasting breakthroughs and innovation for mature brands and capitalizing rapid development for emerging brands. JD has integrated and synergized 3 networks, including our transaction network that covers round-the-clock omni-channel shopping scenarios, a warehousing and a distribution network that serves nationwide and extends globally, and a service network that is enabled by intelligent technology. Seamless integration of all 3 networks overcome the pain point of a single network and not only ensure the reliability of JD's own supply chain, but also drive digital transformation and efficiency improvement, both up and downstream industry players, supporting the high-quality development of China's real economy.

轉向供應鏈中台。我們認為，這不僅是我們改善毛利率和成本結構的動力，而且對提高零售行業的運營效率、成熟品牌的突破和創新、新興品牌的快速發展具有關鍵作用。京東已整合協同3個網絡，包括覆蓋24小時全渠道購物場景的交易網絡、服務全國、延伸全球的倉儲配送網絡、智能科技賦能的服務網絡。三網無縫對接，克服了單一網絡的痛點，既保證了京東自身供應鏈的可靠性，又帶動了產業上下游的數字化轉型和效率提升，支撐了中國的高質量發展。實體經濟。

In the future, high-efficient and flexible supply chain capabilities will be a top priority for the sustainable development of China's retail and other industry. COVID resurgence and the complex environment has made this even clearer to an increasing number of companies. China has made significant programs in developing supply chain capabilities, but there is still room for improvement. JD is well positioned and determined to provide the industry best-of-class supply chain solutions.

未來，高效靈活的供應鏈能力將成為中國零售等行業可持續發展的重中之重。 COVID 的複蘇和復雜的環境使越來越多的公司更加清楚這一點。中國在發展供應鏈能力方面已經制定了重大計劃，但仍有改進的空間。京東有能力提供行業一流的供應鏈解決方案。

JD Logistics healthy development is a strong testament to our supply chain capabilities, which are empowering this industry. Amidst the COVID resurgence, JD Logistics once again spared no efforts to protect the people's livelihood. As one of the first batch of companies working with local cities to ensure supply of gaining necessities, we have gained wild recognition through our society. At the same time, JD Logistics leveraged integrated supply chain logistics service capabilities to solve the supply chain disruptions faced by many external customers, such as in FMCG, home appliance, finished furniture, apparel, 3P, automobile and (inaudible) industry. As a result, JDL achieved a steady growth in total revenue during the quarter and maintained double-digit growth in external revenues and the number of external customers. During the quarter, JDL's external revenues accounted for nearly 60% of the total revenues. In addition, JDL continued to expand its logistic infrastructure globally. By the end of Q2, it operated over 1,400 warehouses and managed the total GMV of approximately 25 million square meter.

京東物流的健康發展是我們供應鏈能力的有力證明，正在賦能這個行業。在新冠肺炎疫情中，京東物流再次不遺餘力地保護民生。作為首批與當地城市合作，確保生活必需品供應的公司之一，我們得到了社會的廣泛認可。同時，京東物流利用綜合供應鏈物流服務能力，解決了快消品、家電、成品家具、服裝、3P、汽車和（聽不清）行業等眾多外部客戶面臨的供應鏈中斷問題。因此，JDL在本季度實現了總收入的穩定增長，對外收入和對外客戶數量保持兩位數增長。本季度，JDL 的外部收入佔總收入的近 60%。此外，JDL 繼續在全球擴展其物流基礎設施。截至二季度末，其運營倉庫超過1400個，管理總GMV約2500萬平方米。

Our omnichannel business maintained healthy momentum in Q2. Although COVID brought significant challenges to the retail industry, our intra-city retail business continued to deliver triple-digit year-on-year growth. The evolution of the retail industry validates our early decision to expand into the omnichannel business. And we have formed differentiated perspectives and strategies around this business.

我們的全渠道業務在第二季度保持健康勢頭。儘管新冠疫情給零售業帶來了重大挑戰，但我們的同城零售業務繼續實現三位數的同比增長。零售業的發展驗證了我們早期進軍全渠道業務的決定。我們圍繞這個業務形成了差異化的視角和策略。

First, JD's customers naturally associate us with shopping. And while developing our intra-city retail business, we further explored that association and customer needs in decentralized scenarios. Also, with strong capabilities in supply chain, B2C sales and user management, JD is also to establish more comprehensive cooperation with partners to help them efficiently adapt to the market changes and meet consumers' instant needs in various scenarios, thus leading the retail industry's cost optimization and improvement in efficiency and user experience. We're also pleased to see that the intra-city retail industry is booming. JD will further leverage its existing core capacities to explore new business models, improve technical capabilities and expand omnichannels with multiple business forms.

首先，京東的客戶很自然地將我們與購物聯繫在一起。在發展同城零售業務的同時，我們進一步探索了去中心化場景下的關聯和客戶需求。此外，憑藉強大的供應鏈、B2C銷售和用戶管理能力，京東還將與合作夥伴建立更全面的合作，幫助合作夥伴高效適應市場變化，滿足消費者各種場景的即時需求，引領零售行業成本優化提升效率和用戶體驗。我們也很高興看到同城零售業蓬勃發展。京東將進一步發揮現有核心能力，探索新的商業模式，提陞技術能力，拓展多業態的全渠道。

JD has been striving to build a healthy and sustainable ecosystem for merchants and has already laid a solid foundation. In Q2, a number of categories, including home appliances, sports and outdoor and cosmetics, continue to outperform the industry. We have been expanding our ecosystem for merchants, including both top brands and SMEs as they are more willing to deepen cooperation with business partners like JD that can bring -- that can help them navigate the impacts from COVID and the macro conditions.

京東一直在努力為商家構建一個健康可持續的生態系統，並已奠定了堅實的基礎。二季度，家電、運動戶外、化妝品等多個品類繼續跑贏行業。我們一直在為包括頂級品牌和中小企業在內的商家擴展我們的生態系統，因為他們更願意與京東等可以帶來的商業夥伴深化合作——這可以幫助他們應對 COVID 和宏觀環境的影響。

In this quarter, we revamped and upgraded JD's main app, reconstructed our traffic allocation mechanism and provided more refined digital tools to build a better operating environment for merchants. During the 618 Grand Promotion, merchants achieved better growth and contributed a higher proportion of sales compared to a year ago. By building a more open and inclusive ecosystem, JD will continue to leverage its supply chain, logistics, technology and service capabilities to join hands and grow together with more merchants.

本季度，我們對京東主APP進行改造升級，重構流量分配機制，提供更精細的數字化工具，為商戶營造更好的運營環境。 618大促期間，商家實現了較好的增長，貢獻了比去年同期更高的銷售額比例。通過構建更加開放包容的生態系統，京東將繼續發揮自身的供應鏈、物流、技術和服務能力，與更多商家攜手共成長。

To conclude, I'd like to reiterate our thoughts on the cyclical adjustment of the economy and the long-term mindset that companies need to have. Economic development had cycles, but that doesn't mean it loses long-term momentum. And we believe that the retail industry has the power to weather different cycles. In face of the current macro and the industrial adjustment, what's important for JD is to further strengthen our core capabilities, increase operating efficiency, and ensure healthy margins and cash flow, while at the same time, continuing to invest in innovations and the strategies that will position us well for the future.

最後，我想重申一下我們對經濟周期性調整的看法以及企業需要具備的長期心態。經濟發展有周期，但這並不意味著它失去了長期動力。我們相信零售業有能力度過不同的周期。面對當前的宏觀和產業調整，京東重要的是進一步加強核心能力，提高運營效率，確保健康的利潤率和現金流，同時繼續投資於創新和戰略將為我們的未來做好準備。

Looking ahead, there may still be uncertainties. But from a long-term perspective, we believe that China's consumer market has strong vitality and will become the world's largest in scale. While coming out of the cycle adjustment, we expect to see strong recovery momentum. We will continue to build upon our strength and capabilities to better capture opportunities and prospects for the long term.

展望未來，可能仍存在不確定性。但從長遠來看，我們認為中國的消費市場具有強大的活力，將成為全球規模最大的市場。在走出週期調整的同時，我們預計將看到強勁的複蘇勢頭。我們將繼續鞏固我們的實力和能力，以更好地把握長期機遇和前景。

With that, I'd like to give the floor to Sandy.

有了這個，我想請桑迪發言。

(technical difficulty) JD has been playing a vital role to serve customers with daily essentials, to help our business partners manage their business efficiently in China and overseas, and to support many cities in their efforts to boost consumption. Our solid second quarter results continued to demonstrate our ability to serve our customers and business partners, while manage our business effectively despite the challenging operating environment.

（技術難點）京東在為客戶提供生活必需品、幫助合作夥伴高效管理海內外業務、支持多個城市拉動消費等方面發揮了重要作用。儘管經營環境充滿挑戰，但我們穩健的第二季度業績繼續證明我們有能力為客戶和業務合作夥伴提供服務，同時有效地管理我們的業務。

In the second quarter, our net revenues reached RMB 268 billion, representing a solid 5% year-on-year growth, despite the COVID-related disruptions, particularly in higher-tier cities, and the tough comps as we lacked the strong recovery from last year. Our GMV, excluding unpaid and canceled order, came out from the (inaudible) in April and has seen a gradual improvement in growth as COVID-related supply chain and logistics disruptions subsided starting from the end of May. Products revenues were up a solid 3% year-on-year, reflecting the outperformance of our online retail business, which helped to secure a stable supply of the essential goods for our users.

在第二季度，我們的淨收入達到人民幣 2680 億元，同比增長 5%，儘管與 COVID 相關的中斷，特別是在高線城市，以及由於我們缺乏強勁的複蘇而面臨艱難的競爭。去年。我們的 GMV（不包括未付款和取消的訂單）從 4 月份（聽不清）出來，隨著與 COVID 相關的供應鍊和物流中斷從 5 月底開始消退，增長逐漸改善。產品收入同比穩健增長 3%，反映了我們在線零售業務的出色表現，這有助於確保為我們的用戶提供穩定的必需品供應。

Our annual active user base remains resilient at 581 million, mainly driven by over 10 million net addition of active users in core JD Retail business from the previous quarter, partially offset by the adjustment in our GMV business, which I will elaborate later.

我們的年度活躍用戶基數保持在 5.81 億，這主要是由於上一季度京東零售核心業務的活躍用戶淨增加超過 1000 萬，部分被我們 GMV 業務的調整所抵消，我將在後面詳細說明。

Service revenues grew by 22% year-on-year to RMB 41.6 billion and exceeded 15% of total net revenue for the first time in history. Many merchants faced operational and logistics bottlenecks during the COVID and increasingly turned to JD's reliable supply chain infrastructure to weather the challenges. As a result, logistics and other services revenue grew by 38% year-on-year in Q2, which I will talk in details later.

服務收入同比增長22%至人民幣416億元，歷史上首次超過總淨收入的15%。許多商家在 COVID 期間面臨運營和物流瓶頸，並越來越多地轉向京東可靠的供應鏈基礎設施來應對挑戰。因此，第二季度物流和其他服務收入同比增長了 38%，我將在後面詳細介紹。

Our marketplace and marketing revenues grew 9% year-on-year and exceeded the RMB 20 billion mark in Q2. In particular, our advertising revenues reported a healthy double-digit percentage growth, which is faster than our commission revenue, as we proactively rolled out relief measures for SME merchants.

我們的市場和營銷收入同比增長 9%，第二季度突破 200 億元大關。特別是，我們的廣告收入實現了兩位數的健康百分比增長，快於我們的佣金收入，因為我們積極推出了針對中小企業的救濟措施。

In the quarter, we saw that many business partners and merchants, especially those from the electronics and cosmetic categories, allocated additional advertising dollars to boost recovery. Moreover, thanks to our improved ecosystem, (inaudible) and new merchants on our platform gained more user and sales traction during the June 18 Grand Promotion and subsequently contributed more sales than before.

在本季度，我們看到許多業務合作夥伴和商家，尤其是電子和化妝品類別的商家，分配了額外的廣告費用以促進復甦。此外，由於我們改進了生態系統，（聽不清）我們平台上的新商家在 6 月 18 日的盛大促銷期間獲得了更多的用戶和銷售牽引力，隨後貢獻了比以前更多的銷售額。

Now let's turn to our segment performance. City retail's revenues grew 4% year-on-year and reached RMB 242 billion in Q2. I'd like to share 3 consumption trends that we observed in the second quarter. First, customers continue to shift purchases from discretionary goods to daily essential item, which has driven our general merchandise revenue up by 8% year-on-year in Q2. Notably, our largest growth category, supermarket, continued to see its order volume growing over 25% year-on-year and it serves users daily needs anytime and anywhere. We are also encouraged to see revenues for health care, home goods, sports and outdoor, cosmetics and MRO recording double-digit growth and outpacing the sector. The trends reflected our expanding users' mind share across many of our emerging categories.

現在讓我們轉向我們的細分市場表現。城市零售收入同比增長 4%，第二季度達到 2420 億元人民幣。我想分享我們在第二季度觀察到的 3 個消費趨勢。首先，客戶繼續將購買從非必需品轉向日常必需品，這推動我們第二季度的日用百貨收入同比增長 8%。值得一提的是，我們最大的增長品類——超市，訂單量同比增長超過25%，隨時隨地滿足用戶的日常需求。我們也很高興看到醫療保健、家居用品、運動和戶外用品、化妝品和 MRO 的收入錄得兩位數增長並超過該行業。這些趨勢反映了我們在許多新興類別中不斷擴大的用戶心智份額。

Electronics and home appliance category reported a flattish revenue compared to the same quarter last year. Both computer and home appliance maintained solid growth in the quarter despite the fulfillment bottlenecks in our commitment to prioritizing delivery of less essentials during COVID resurgence. Mobile phones experienced a soft performance in the quarter amid a sluggish sector momentum. Meanwhile, we are also encouraged to see that since the logistics bottlenecks needs (inaudible), our electronics category has experienced a nice rebound and has been outperforming the sector again, thanks to our strong consumer mind share and industry-leading supply chain capability in this category.

與去年同期相比，電子和家電類別的收入持平。儘管我們在 COVID 復甦期間優先交付較少必需品的承諾遇到了履行瓶頸，但本季度計算機和家用電器均保持穩健增長。在行業勢頭低迷的情況下，手機在本季度表現疲軟。同時，我們也很欣慰地看到，由於物流瓶頸需求（聽不清），我們的電子品類經歷了良好的反彈，再次跑贏行業，這得益於我們強大的消費者心智份額和行業領先的供應鏈能力。類別。

Finally, fulfilled gross margin of JD Retail was up by 50 basis points compared to the same quarter last year. Although the COVID resurgence added to the operational complexity as well as our fulfillment cost, the incremental cost was more than offset by an increase in gross profit. Most categories have benefited from increased user traffic as JD's top customers (inaudible) for reliability. And as a result, we experienced savings on marketing and promotion. On top of this, we also enhanced our operating efficiency and focused on ROI of general marketing spending and other OpEx. As a result, JD Retail's operating margin reached 3.4% in Q2, an improvement of 80 basis points from a year ago.

最後，京東零售的已實現毛利率與去年同期相比上升了 50 個基點。儘管 COVID 的複蘇增加了運營複雜性以及我們的履行成本，但增量成本被毛利潤的增加所抵消。大多數類別都受益於作為京東的主要客戶（聽不清）增加的用戶流量以提高可靠性。因此，我們節省了營銷和促銷費用。除此之外，我們還提高了運營效率，並專注於一般營銷支出和其他運營支出的投資回報率。因此，京東零售第二季度的營業利潤率達到 3.4%，比一年前提高了 80 個基點。

JD Logistics or JDL was an important pillar that underlies our ability to navigate the supply chain complexity. Its Q2 revenues grew 20% year-on-year to RMB 31 billion. With its proprietary logistics network, JDL was one of the few companies that could still work around the challenges and support fulfillment services that many customers and merchants critically needed in an uncertain time. Subsequently, revenues from external customers continued to outgrow internal revenue, further diversifying JDL's revenue stream. More impressively, JDL's ongoing operations and technology optimization and changing cost discipline more than offset the incremental fulfillment cost arising from resulting staff subsidies and protective measures during recent COVID outbreaks. Therefore, its non-GAAP operating margin improved 150 bps from a year ago and turned positive in Q2. JDL is well on track of improving its profitability even in this challenging operating environment.

京東物流或 JDL 是我們駕馭供應鏈複雜性能力的重要支柱。其第二季度收入同比增長 20% 至人民幣 310 億元。憑藉其專有的物流網絡，JDL 是少數仍然能夠應對挑戰並支持許多客戶和商家在不確定時期迫切需要的履行服務的公司之一。隨後，來自外部客戶的收入繼續超過內部收入，進一步豐富了 JDL 的收入來源。更令人印象深刻的是，JDL 正在進行的運營和技術優化以及不斷變化的成本紀律，遠遠抵消了近期 COVID 爆發期間由此產生的員工補貼和保護措施所產生的增量履行成本。因此，其非美國通用會計準則營業利潤率比一年前提高了 150 個基點，並在第二季度轉為正數。即使在這種充滿挑戰的經營環境中，JDL 仍有望提高其盈利能力。

Dada reported revenue of RMB 2.3 billion and an operating loss of RMB 424 million. In this year's June 18 Promotion, Dada further enriched customer shopping experience through extensive omnichannel collaboration with 150,000 offline stores across China. As a result, the number of users who placed orders through Shop Now increased by over 400% compared to the same period last year. Dada plays an essential role in executing our important omnichannel or intra-city retail initiative, which has been growing triple-digit percentage, as Xu just mentioned.

達達實現營收23億元，經營虧損4.24億元。在今年6月18日的促銷活動中，達達通過與全國15萬家線下門店的廣泛全渠道合作，進一步豐富了消費者的購物體驗。因此，通過 Shop Now 下單的用戶數量比去年同期增長了 400% 以上。正如徐剛提到的，達達在執行我們重要的全渠道或同城零售計劃方面發揮著至關重要的作用，該計劃一直在以三位數的百分比增長。

Finally, due to the evolving macro conditions, we reviewed and rationalized our strategies in different parts of our new business segments. On one hand, we proactively implemented cost control measures and strategic alignment in our new businesses in face of the challenging external environment, particularly the Jingxi business. So the operating loss was reviewed, both sequentially and on a year-on-year basis. On the other hand, we continually pursue long-term growth opportunities, through technology, innovation and our new -- and new business models, where we may adjust our pace of investments from time to time based on market conditions.

最後，由於不斷變化的宏觀條件，我們審查並合理化了我們在新業務部門不同部分的戰略。一方面，面對充滿挑戰的外部環境，尤其是京西業務，我們在新業務中積極實施成本控制措施和戰略調整。因此，按順序和按年對經營虧損進行了審查。另一方面，我們通過技術、創新和新的商業模式不斷尋求長期增長機會，我們可能會根據市場情況不時調整投資步伐。

JD Property recently entered into agreement to set up its third logistics property Core Fund on top of the 2 Core Funds that were successfully launched before, which will bring the total transferred AUM to surpass RMB 27 billion upon the completion.

京東地產近日簽約，在此前成功推出的2只核心基金基礎上，設立第三隻物流地產核心基金，完成後總資產管理規模將超過270億元。

Moving to the consolidated bottom line. In face of the additional costs arising from the macro uncertainties and fulfillment complexity, we effectively managed our capital allocation across businesses to focus more on our core business and further enhanced operating efficiency by putting different levers in cost control. As a result, Q2 non-GAAP net income attributable to ordinary shareholders was RMB 6.5 billion, with non-GAAP net margin of 2.4%, representing a year-on-year improvement of 60 basis points. On a GAAP basis, net income attributable to ordinary shareholders also turned positive to RMB 4.4 billion, with GAAP net margin up 1.6%.

移動到合併的底線。面對宏觀不確定性和履約複雜性帶來的額外成本，我們有效管理各業務的資本配置，更加專注於核心業務，通過不同的成本控製手段，進一步提高了經營效率。因此，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為人民幣65億元，非美國通用會計準則淨利潤率為2.4%，同比提高60個基點。按公認會計原則計算，歸屬於普通股股東的淨利潤也轉正至人民幣44億元，按公認會計原則計算的淨利潤率增長1.6%。

Our free cash flow for the trailing 12 months this quarter sequentially improved to RMB 27.7 billion, mainly driven by robust operating cash flow as a result of healthy margin improvements in business and prudent cash management in addition to the seasonality factor. By the end of Q2, cash and cash equivalents, restricted cash and short-term investments added up to a total of RMB 207 billion, up from RMB 186 billion last quarter.

本季度過去 12 個月的自由現金流環比增長至人民幣 277 億元，這主要是由於業務利潤率的健康改善和審慎的現金管理以及季節性因素導致的穩健經營現金流。截至二季度末，現金及現金等價物、受限現金和短期投資合計為人民幣2070億元，高於上一季度的人民幣1860億元。

During the quarter, we have turned close to -- we have returned close to RMB 15 billion in cash to our shareholders through cash dividends and share repurchase, which amounted to over 20% of all our accumulated retained earnings in the last 3 years.

本季度，我們通過現金分紅和股票回購等方式向股東返還現金近150億元，佔過去3年累計留存收益的20%以上。

Before I close, I would like to emphasize that while the increased uncertainties in the near term will prove to be challenging for every industry players, including JD, it's also an opportunity for us to strengthen our market position as we are better positioned to grow our business effectively and manage our resources cautiously.

在結束之前，我想強調的是，雖然短期內不確定性的增加對包括京東在內的每個行業參與者來說都是一個挑戰，但這也是我們鞏固市場地位的機會，因為我們能夠更好地發展我們的業務。有效地開展業務並謹慎地管理我們的資源。

We are confident to (inaudible) with resilient performance, primarily due to 2 drivers. First, thanks to our proprietary supply chain capability, we are able to quickly adapt to the changing environment and support customers and business partners who were (inaudible) for uncertainty. This enables us to further strengthen our consumer mind share and continue to outperform the industry. Secondly, relentless focus of operating efficiency and investing our resources effectively has always been the backdrop of our unique business model. And it is playing a bigger role in securing our long-term high-quality growth going forward.

我們有信心（聽不清）具有彈性的性能，這主要歸功於 2 個驅動程序。首先，得益於我們專有的供應鏈能力，我們能夠快速適應不斷變化的環境，並為（聽不清）不確定性的客戶和業務合作夥伴提供支持。這使我們能夠進一步加強我們的消費者心智份額，並繼續超越行業。其次，對運營效率的不懈關注和對資源的有效投資一直是我們獨特商業模式的背景。它在確保我們未來的長期高質量增長方面發揮著更大的作用。

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

有了這個，讓我們打開問答的電話。謝謝你。

(Operator Instructions) Our first question will come from Ronald Keung with Goldman Sachs.

（操作員說明）我們的第一個問題將來自高盛的 Ronald Keung。

(foreign language) I would love to hear whether you could share how your expectations for second half growth? Have you seen any further consumer confidence improvement through July and August? And I can see that second half last year and during singles day, your performance was very strong. Much of the output outpaced the industry. So for this year, do we have any strategic strategy on categories, delivery formats and shopping formats, even live streaming? Any of those strategies that we are planning to drive this second half growth?

（外語）我很想听聽您能否分享您對下半年增長的期望？您是否看到 7 月和 8 月消費者信心進一步改善？我可以看到去年下半年和光棍節期間，你的表現非常強勁。大部分產出超過了行業。那麼對於今年，我們在品類、交付形式和購物形式，甚至是直播方面有什麼戰略策略嗎？我們計劃推動下半年增長的任何戰略？

[Interpreted] Let me take your question. And early to see that, for this quarter, we are facing a lot of challenges, actually the most challenging quarter since we are listed. And I don't need to elaborate a lot on the reasons. And there are different impacts of the macroeconomics and the COVID resurgence, but leveraging on JD's supply chain capabilities and our staff user quality, we're less affected compared with all industry.

[解釋] 讓我回答你的問題。很早就看到了，對於這個季度，我們面臨著很多挑戰，實際上是我們上市以來最具挑戰性的一個季度。我不需要詳細說明原因。宏觀經濟和新冠疫情的複蘇有不同的影響，但憑藉京東的供應鏈能力和我們的員工用戶質量，與所有行業相比，我們受到的影響較小。

And on the different categories, they are reflecting different conditions, for those categories that are closely related to the essential products, for the livelihood such as consumer products, home appliances and health-related categories, as well as JD's omnichannel business and/or intra-city retail business, they're seeing a quick growth. And also JD has been deploying our online and offline development. This also helped us to maintain a healthy and a stable growth.

而在不同的品類上，它們反映了不同的情況，對於那些與生活必需品密切相關的品類，對於生活消費品、家電和健康相關的品類，以及京東的全渠道業務和/或內部-城市零售業務，他們正在快速增長。京東也一直在部署我們的線上和線下開發。這也幫助我們保持了健康穩定的增長。

And for some other categories that are long-tail and are nonessential such as apparel, there have been a weak demand, and so to the alcohol category because their shopping scenarios are limited. And however, on these categories, JD continued to expand our market share. Also worth mentioning is the mobile phone industry, as we see, they are facing multiple challenges. And we see the consumers, they're prolonging their phone changing cycles.

而對於其他一些長尾非必需品類，如服裝，需求疲軟，酒類也是如此，因為它們的購物場景有限。然而，在這些品類上，京東繼續擴大我們的市場份額。另外值得一提的是手機行業，正如我們所見，他們面臨著多重挑戰。我們看到消費者，他們正在延長手機更換週期。

And for the short-term, as natively, we will continue to face tough headwinds. But for the long-term, as I've just shared, we continue to be confident for the long-term China's macro economy and consumption trends. And since day one of JD, we start to build our supply chain capabilities, and we do have same (inaudible) the value of these capabilities. And we think we have also -- we have the responsibility to use our supply chain capability to support the projected development of the whole industry. So in the coming times, we will continue to focus on quality growth and continue to enhance our market share among our consumers, expand our market share and (inaudible) to our margins and healthy cash flow.

就短期而言，我們將繼續面臨嚴峻的逆風。但就長期而言，正如我剛剛分享的，我們對中國的宏觀經濟和消費趨勢的長期前景仍然充滿信心。從京東成立的第一天起，我們就開始建立我們的供應鏈能力，而且我們確實擁有同樣的（聽不清）這些能力的價值。我們認為我們還有——我們有責任利用我們的供應鏈能力來支持整個行業的預期發展。因此，在未來的時代，我們將繼續專注於質量增長，並繼續提高我們在消費者中的市場份額，擴大我們的市場份額和（聽不清）我們的利潤率和健康的現金流。

And a lot of people are paying much attention to our strategies (inaudible) from strategies, it won't change. It will stay for a long time. And portfolio aspects, it will continue, it will always continue to be our main forecast -- focus. First is user experience; and second, our building of the supply chain capability; and third, it's a large base for us to continue to improve our cost and efficiency; and fourth is our investment in technology; and fifth, we continue to develop innovation business under -- in a disciplined approach.

而且很多人從戰略上非常關注我們的戰略（聽不清），它不會改變。它會停留很長時間。而投資組合方面，它將繼續，它將始終是我們的主要預測——重點。首先是用戶體驗；第二，我們的供應鏈能力建設；第三，是我們不斷提高成本和效率的大基礎；第四是我們對技術的投資；第五，我們繼續以有紀律的方式發展創新業務。

And from the tax perspectives, number one, we will continue to deepen our lower-tier market to expand our reach to consumers. And second, we will deploy intra-city retail business, working on the shopping scenarios to deepen our understanding and insights on consumer needs. And thirdly, we will continue to build our supply chain capabilities and (inaudible) from a merchandise perspective. Even though we are in a leading position in terms of the supply chain, we see ourselves, there is still a lot of room to improve. And fourth, we will continue to build an open platform ecosystem. And these 4 aspects will remain a long-term tactic for us to continue. Thank you.

從稅收的角度來看，第一，我們將繼續深化我們的低端市場，以擴大我們對消費者的影響。二是佈局同城零售業務，圍繞購物場景，深化對消費者需求的理解和洞察。第三，我們將繼續從商品的角度建立我們的供應鏈能力和（聽不清）。儘管我們在供應鏈方面處於領先地位，但我們看到自己，還有很大的提升空間。四是繼續構建開放平台生態。而這四個方面仍將是我們持續的長期策略。謝謝你。

Our next question will come from Kenneth Fong with Credit Suisse.

我們的下一個問題將來自瑞士信貸的 Kenneth Fong。

(foreign language) Congrats on the strong result. We saw a very meaningful uplift in operating efficiency in the second quarter. As internet company continue to go through cost optimization, how should we think about the margin upside for our business, especially we are already very efficient?

（外語）恭喜你取得了不錯的成績。我們看到第二季度的運營效率有了非常顯著的提升。隨著互聯網公司不斷進行成本優化，我們應該如何考慮我們業務的利潤率上升，尤其是我們已經非常有效率？

Thanks for the question. This is Sandy. Let me take this one. Overall, looking ahead, as mentioned before, given the increased macro uncertainties and fulfillment complexity due to COVID resurgence, we are more focused on the effectiveness of our capital allocation across different business units and the improvement of operating efficiency this year to ensure our company, our group is in healthy cash flow and balance sheet position, well prepared for the next billing cycle.

謝謝你的問題。這是桑迪。讓我拿這個。總體而言，展望未來，如前所述，鑑於新冠疫情復甦導致宏觀不確定性增加和履行複雜性增加，今年我們更加關注不同業務部門資本配置的有效性和運營效率的提高，以確保我們的公司，我們集團的現金流和資產負債表狀況良好，為下一個計費周期做好了充分準備。

Specifically, for JD Retail, we expect that the fulfilled gross margin of most core categories to continue to improve in Q3 year-over-year and quarter-over-quarter, especially the supermarket category. And the profitability improvement actually comes from a better marketing and operating efficiency and our expanding economies of scale. Retail is -- fundamentally, it's a business of scale. And we believe that JD Retail's long-term margin improvement trajectory will continue to be demonstrated.

具體而言，對於京東零售，我們預計大部分核心品類的已實現毛利率將在第三季度同比和環比繼續改善，尤其是超市品類。而盈利能力的提昇實際上來自於更好的營銷和運營效率以及我們不斷擴大的規模經濟。零售是——從根本上說，它是一個規模化的業務。我們相信京東零售的長期利潤率提升軌跡將繼續得到體現。

And for JD Logistics, even though we still expect to incur some additional costs due to various types of COVID costs here and there. So far, the magnitude is not as significant as that in Q2. So JDL continues to demonstrate the value they could bring to their customers, i.e. the efficiency savings and better service quality, which are reflected in JDL's improving gross margin. We will try to maintain the full year bottom line target for JDL.

對於京東物流，儘管我們仍然預計會因各種類型的 COVID 成本而產生一些額外的成本。到目前為止，幅度沒有第二季度那麼顯著。因此，JDL 繼續展示他們可以為客戶帶來的價值，即效率節省和更好的服務質量，這反映在 JDL 不斷提高的毛利率上。我們將努力維持 JDL 的全年底線目標。

And then for new business, as you all know, we started to adjust our investment pace in new business since the end of Q1. Our management team are more focused on cash flow and profitability. We expect that our investment scale in new business will decline both year-on-year and quarter-over-quarter.

然後對於新業務，大家都知道，我們從一季度末開始調整對新業務的投資節奏。我們的管理團隊更關注現金流和盈利能力。我們預計新業務的投資規模將同比和環比下降。

So for the group as a whole, we have better control over and confidence in the bottom line performance. We expect the near-term profitability at the group level to improve meaningfully year-over-year. And we will continue to focus on quality growth and creating value for our shareholders. We'll continue to gain market share in our core businesses, maintaining our commitment to invest for the long term. Thank you.

所以對於整個集團來說，我們對底線表現有更好的控制和信心。我們預計集團層面的近期盈利能力將同比顯著提高。我們將繼續專注於質量增長和為股東創造價值。我們將繼續在我們的核心業務中獲得市場份額，保持我們對長期投資的承諾。謝謝你。

[Interpreted] I'll just add a few words on the supply chain procurement. I think many people think JD's supply chain capability is in a leading position in China. Even though we also think so, but we also see there a plenty of space for us to improve on these aspects. So we have been reiterating a lot on our mission to improve our supply chain capability.

【解讀】供應鏈採購我就補充幾句。我想很多人認為京東的供應鏈能力在中國處於領先地位。儘管我們也這麼認為，但我們也看到了我們在這些方面還有很大的改進空間。因此，我們一直在重申提高供應鏈能力的使命。

So for example, in the past, we're thinking about supply chain from our own perspective. But for now, we are taking a more holistic approach and thinking of our partners. So both internal and external collaboration is more important in supply chain building. So internally, we have seen the supply chain capabilities on different categories are different. So we are improving those and making a high standard for the overall capabilities on supply chain on all categories.

例如，過去，我們從自己的角度考慮供應鏈。但就目前而言，我們正在採取更全面的方法並考慮我們的合作夥伴。因此，內部和外部協作在供應鏈建設中更為重要。所以在內部，我們看到不同品類的供應鏈能力是不同的。因此，我們正在改進這些，並為所有類別的供應鏈整體能力製定高標準。

So before, we think a lot -- think more mainly focused on the online supply chain. The (inaudible) development with the offline business and collaboration with external partners will also see both online and offline externally. And in the past, we think we're operating in a normal situation. But given the outbreak of the COVID and the special situations, even though we're affected, we're taking it to a consideration of how we can better perform in extreme or special situations to run our supply chain.

因此，在此之前，我們想了很多——更多地考慮在線供應鏈。與線下業務的（聽不清）發展以及與外部合作夥伴的合作也將在外部看到線上和線下。過去，我們認為我們在正常情況下運作。但鑑於 COVID 的爆發和特殊情況，即使我們受到影響，我們也在考慮如何在極端或特殊情況下更好地運行我們的供應鏈。

I also want to say that even though I hear a lot of companies are talking a lot about improving their capabilities on supply chain business. But I want to point out that JD has been developing our supply chain and building (inaudible) in this field in about 20 years of our development. We have been investing in it and evolving our understanding on this field for a very long time. So I want to just say that we will, as willingly, continue to develop supply chain in our -- according to our own understanding, in our own direction, and will not follow any other people's footpath. Thank you.

我還想說，儘管我聽到很多公司都在談論提高他們在供應鏈業務上的能力。但我想指出，在我們發展的大約 20 年裡，京東一直在發展我們的供應鏈並在這個領域建立（聽不清）。很長一段時間以來，我們一直在投資並加深我們對這一領域的理解。所以我只想說，我們願意按照我們自己的理解，按照我們自己的方向，繼續發展我們的供應鏈，不會走任何別人的路。謝謝你。

Our next question will come from Thomas Chong with Jefferies.

我們的下一個問題將來自 Jefferies 的 Thomas Chong。

(foreign language) Congratulations on a very strong set of results. I have a few questions. The first question is more about the macro headwinds as well as the -- what happens to the (inaudible) together with the hot weather these days. How should we think about the outlook for the consumer electronics in the second half? .

（外語）恭喜取得了非常強的成績。我有幾個問題。第一個問題更多是關於宏觀逆風以及 - 這些天（聽不清）以及炎熱的天氣會發生什麼。我們應該如何看待下半年消費電子的前景？ .

And my second question is about our omnichannel strategy. Given our solid execution in omnichannels, may I ask about the revenue contribution and the key focus areas in coming years? And the third one is about our past membership. Given the solid progress that we have made, can we talk about our strategies as well as what we are seeing in terms of the consumer behavior for existing and new members -- new users?

我的第二個問題是關於我們的全渠道戰略。鑑於我們在全渠道的穩健執行，我可以問一下未來幾年的收入貢獻和重點領域嗎？第三個是關於我們過去的成員資格。鑑於我們取得的紮實進展，我們能否談談我們的策略以及我們在現有和新成員（新用戶）的消費者行為方面所看到的情況？

[Interpreted] Let me answer the first and second question. First is about home appliances. And in Q2, for the home appliances industry, they are facing multiple challenges, including the downward economy, and a weak consumption demand, and a disruptions on the supply chains and the logistics, and the service -- to both services.

[解釋]讓我回答第一個和第二個問題。首先是關於家用電器。而在第二季度，對於家電行業來說，他們面臨著多重挑戰，包括經濟下行、消費需求疲軟，以及供應鍊和物流、服務的中斷——這兩種服務。

And from the brand perspective, they are taking a more cautious attitude and focused on the sales that can bring more certainty, refine operation and healthy profitability. This has been a consensus in this industry. And this also makes JD a more preferred partner to work with them in line with expertise. So I believe in this quarter or in the coming months, JD will continue -- they will continue to attach great importance to the collaboration with JD.

而從品牌角度來看，他們正在採取更加謹慎的態度，專注於能夠帶來更多確定性、精細化運營和健康盈利能力的銷售。這已經是業內的共識。而這也讓京東成為更受青睞的合作夥伴，可以根據專業知識與他們合作。所以我相信在這個季度或者未來幾個月，京東會繼續——他們會繼續非常重視與京東的合作。

Yes. For Q2, on JD, the top appliances category has outperformed the industry, and they have delivered quite outstanding margin on JD.com. I think this is a main contributor to JD's supply chain and also our deep understanding in this industry and our strong market share of nonconsumers and our partners estimation and also a testament of our disciplined approach to our cost control and efficiency improvement.

是的。第二季度，在京東，頂級家電品類的表現優於行業，在京東上的利潤率也相當可觀。我認為這是京東供應鏈的主要貢獻者，也是我們對這個行業的深刻理解以及我們在非消費者和合作夥伴估計中的強大市場份額，也證明了我們在成本控制和效率提升方面的嚴謹方法。

And in Q3, we see these categories on a good track and slightly improving with June level. However, overall, the market still is in low level, and we are still facing some uncertainties from the macro and external environment. So JD will continue to focus on the operating efficiency and experiences. And also, I want to point out that, thanks to our development in omnichannel, home appliance category is developing fast on the omnichannel side. This is also thanks to our strategy to go into the lower-tier cities and our development (inaudible) franchise stores, such as our 5-star appliances and other formats of physical stores. This also helped this category to outpace the overall market and bring some new growth opportunities for the home appliances industry.

在第三季度，我們看到這些類別進展順利，並且與 6 月份的水平相比略有改善。但總體而言，市場仍處於低位，我們仍面臨宏觀和外部環境的一些不確定性。所以京東會繼續關注運營效率和體驗。另外，我想指出，由於我們在全渠道方面的發展，家電品類在全渠道方面發展迅速。這也得益於我們進軍低線城市的戰略以及我們開發（聽不清）特許經營店，例如我們的五星級家電和其他形式的實體店。這也幫助該品類超越了整體市場，為家電行業帶來了一些新的增長機會。

And about the users growth, it's hugely (inaudible) by a challenging quarter, and there are various reasons, both outside and internally. And outside, we have the COVID and shopping power lack. And internally, we also take initiatives to adjust our user growth strategies.

關於用戶增長，到了一個充滿挑戰的季度，這是巨大的（聽不清），並且有各種原因，包括外部和內部。在外面，我們缺乏新冠病毒和購物能力。而在內部，我們也主動調整我們的用戶增長策略。

And because of the restructuring of our Jingxi business, in the short term, we might lose some users. However, with active users on our core retail business, we have seen a very high quality growth. And for the users, their shopping frequencies and ARPU are all rising. And especially for the new users, their shopping frequency and ARPU rising significantly and reaching 3 years high.

而且由於我們京西業務的重組，短期內我們可能會失去一些用戶。然而，隨著我們核心零售業務的活躍用戶，我們看到了非常高質量的增長。而對於用戶來說，他們的購物頻率和ARPU都在上升。尤其是新用戶，他們的購物頻率和ARPU顯著上升，達到3年來的最高水平。

And in terms of the different segments of consumers, the lower tier market consumers is an important shopping group. And also, we will attach great importance to the silver group, the elderly group of people according to China's demographic changes and their shopping power changes.

而從消費者的不同細分群體來看，下層市場消費者是重要的購物群體。同時，我們將根據中國人口結構的變化和他們的購物力變化，高度重視白銀群體、老年群體。

And lastly, I want to share a little bit more of our paying JD Plus membership. This is a very unique system we created based on our whole understanding and features of our platform. The shopping behavior of our users is not really comparable with other membership systems in China and outside China. Through years of development, we see these members of the JD Plus membership is achieving good success and meeting our expectation and bringing up values. And in the future, we'll continue to build up this membership system and create more innovative system and benefit with this membership. Thank you.

最後，我想分享更多我們的付費 JD Plus 會員。這是我們基於我們對平台的整體理解和功能創建的一個非常獨特的系統。我們用戶的購物行為與國內外其他會員系統無法真正相比。經過多年的發展，我們看到這些京東Plus會員正在取得良好的成功，滿足了我們的期望，創造了價值。並且在未來，我們將繼續建立這個會員體系，創造更多的創新體系和會員權益。謝謝你。

This is Sandy. Let me take the omnichannel revenue contribution question. When we talk about omnichannel scarcity internally, that actually include quite a number of business streams, including our 5-star of home appliance business, our home appliance franchise store business, our 7Fresh, the fresh offline omnichannel business as well as the (inaudible) initiative for our supermarket category, and the intra-city retail, the Shop Now initiative. So some of these businesses contribute to the 1P revenue by some of them, like Shop Now, this contribute GMV and commission revenue. So in terms of the revenue contribution, it didn't change significantly this quarter. It was still around 10% from the omnichannel business as a whole.

這是桑迪。讓我來談談全渠道收入貢獻問題。內部說全渠道稀缺，其實包括很多業務流，包括我們的五星級家電業務、我們的家電加盟店業務、我們的7Fresh、生鮮線下全渠道業務以及（聽不清）我們的超市類別的倡議，以及同城零售的 Shop Now 倡議。因此，其中一些業務為其中一些業務貢獻了 1P 收入，例如 Shop Now，這貢獻了 GMV 和佣金收入。因此，就收入貢獻而言，本季度並沒有顯著變化。整個全渠道業務仍然佔 10% 左右。

To be honest, the offline business were disrupted more seriously compared to online business during the quarter. Except for our Shop Now business that is still in early type of growth stage, the other -- some of the other offline businesses, they did not perform as strong as our online B2C business.

老實說，本季度線下業務相比線上業務受到的衝擊更為嚴重。除了我們的 Shop Now 業務仍處於早期增長階段之外，其他一些線下業務的表現不如我們的在線 B2C 業務。

Our next question will come from Eddy Wang with Morgan Stanley.

我們的下一個問題將來自摩根士丹利的 Eddy Wang。

(foreign language) My question is about the on-demand retail. So we noticed that we have deepened the relationship between JD and Dada, and means -- do you think JD will increase its investment in the on-demand retailing? And given the overall consumption slowing down, do we think the on-demand retailing could potentially become the next growth driver for JD?

（外語）我的問題是關於按需零售。所以我們注意到我們加深了京東和達達之間的關係，這意味著——你認為京東會增加對按需零售的投資嗎？在整體消費放緩的情況下，我們認為按需零售是否有可能成為京東的下一個增長動力？

[Interpreted] Sure. I'll take your question. And actually, 2 years ago, when we described on-demand delivery, we're talking about O2O, online to offline. And actually, O2O is now equal to on-demand delivery, only one form of that, and JD has started on this business by then. And while we are doing -- why we're doing this back then is more driven by our exploration to see how to better make fulfillment for the categories that will carry on high fulfillment fee. And then we also realized that the users demand for on-demand delivery is growing rapidly.

[解釋] 當然。我會回答你的問題。實際上，兩年前，當我們描述按需交付時，我們談論的是 O2O，從線上到線下。而實際上，O2O現在相當於按需交付，只是其中的一種形式，京東已經開始做這個業務。在我們這樣做的同時——為什麼我們當時這樣做更多是由我們的探索推動的，以了解如何更好地為將產生高額履行費用的類別進行履行。然後我們也意識到用戶對按需交付的需求正在迅速增長。

And in the past, while we do online shopping, we are offering more physical products. But also, we have seen that people's demand are extending to more services, especially for the (inaudible) services or the aftermarket of the automotive industry, so which driven us to look at the on-demand market to extend our service offering to the consumers.

而在過去，當我們進行在線購物時，我們會提供更多的實體產品。但是，我們也看到人們的需求正在擴展到更多的服務，特別是對（聽不清）服務或汽車行業的售後市場，這促使我們著眼於按需市場，將我們的服務提供給消費者.

And thirdly, from the perspective of our brand partners, while they're doing more e-commerce, they are facing some difficulties in managing their members, managing their users and doing their marketing. So there are all new challenges when they do more e-commerce. And based on all this perspective, so this make us think the on-demand retail is very important services we need to design and create for different parties in terms of -- when coming up with different products and different services, systems and product categories. And all these are in the product design and preparation.

第三，從我們的品牌合作夥伴的角度來看，他們在做更多的電子商務的同時，他們在管理會員、管理用戶和做營銷方面都面臨著一些困難。因此，當他們做更多的電子商務時，會遇到所有新的挑戰。基於所有這些觀點，這讓我們認為按需零售是非常重要的服務，我們需要為不同的各方設計和創建——當提出不同的產品和不同的服務、系統和產品類別時。而這一切都在產品的設計和準備中。

Even though we have seen the whole industry, a lot of players are interested in this field and joining this competition. Also on JD side, we have seen the on-demand orders are growing rapidly. But I also need to come -- make some rational judgments. And for this -- to develop this business, we need to continue to strengthen consumer's mind share. And we also need to explore new type of supply chain, which is challenging for everybody now. And thirdly, we will also make sure to service the reliability and stability for on-demand delivery. So there's a lot of work to do. And we will continue to see the penetration of this business to the consumer and the qualities and delivery performance of this new business. So for the short term, we will not look at the short-term GMV. (inaudible), however, we do see the GMV on JD in the on-demand retail is growing in a good track.

儘管我們看到了整個行業，但很多玩家對這個領域感興趣並加入了這個競爭。同樣在京東方面，我們看到按需訂單正在迅速增長。但我也需要來——做出一些理性的判斷。為此——要發展這項業務，我們需要繼續加強消費者的心智份額。而且我們還需要探索新型的供應鏈，這對現在每個人來說都是一個挑戰。第三，我們還將確保為按需交付提供服務的可靠性和穩定性。所以有很多工作要做。我們將繼續看到這項業務對消費者的滲透以及這項新業務的質量和交付表現。所以就短期而言，我們不會關注短期 GMV。 （聽不清）但是，我們確實看到京東在按需零售中的 GMV 正在以良好的軌道增長。

Now if I need to point out, for the profit, it's not a wise thing for the e-commerce players now to grab the market in competition with the brand and with our offline merchants. We need a new system or new pattern that both the 3 parties are all can benefit from this new business model. Thank you.

現在如果我需要指出，為了利潤，現在的電商玩家在與品牌和線下商家的競爭中搶占市場並不是一件明智的事情。我們需要一個新的系統或新的模式，三方都可以從這個新的商業模式中受益。謝謝你。

We are now approaching the end of the conference call. I'll now turn the call over to JD.com's Sean Zhang for closing remarks.

我們現在接近電話會議的尾聲。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 further questions, please contact me and the IR team. We appreciate your interest in JD.com and looking forward to talking with you again next quarter. Thank you very much.

感謝您今天加入我們的電話會議並提出您的問題。如果您還有其他問題，請聯繫我和 IR 團隊。感謝您對京東的關注，期待下個季度再次與您交流。非常感謝。

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

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

[此成績單中標記為 [已翻譯] 的部分由現場通話中的口譯員朗讀。]