京東 (JD) 2022 Q3 法說會逐字稿

Hello, and thank you for standing by for JD.com's Third Quarter 2022 Earnings Conference Call. (Operator Instructions) Today's conference is being recorded. If you have any objections, you may disconnect at this time. I would now like to turn the meeting over to your host for today's conference, Sean Zhang. Please go ahead.

您好，感謝您支持京東 2022 年第三季度財報電話會議。 （操作員說明）正在錄製今天的會議。如果您有異議，此時您可以斷開連接。我現在想將會議轉交給今天會議的主持人 Sean Zhang。請繼續。

Thank you, Russell. Good evening, and good day, everyone. Welcome to JD.com's Third Quarter 2022 Earnings Conference Call. For today's call, CEO of JD.com, Mr. Lei Xu, will kick off with opening remarks. Our CFO, Ms. Sandy Xu, will discuss the financial results. After that, we'll open the call to questions from analysts.

謝謝你，拉塞爾。大家晚上好，美好的一天。歡迎來到京東 2022 年第三季度財報電話會議。對於今天的電話會議，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 女士將討論財務結果。之後，我們將打開分析師提問的電話。

I'd like to remind you that during this call, our comments and responses to your questions reflect management's views as of today only, and will include forward-looking statements. Please refer to our related safe harbor statements in the earnings press release on our IR website, which applies to this call.

我想提醒您，在本次電話會議期間，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 網站上適用於此次電話會議的收益新聞稿中的相關安全港聲明。

We will discuss certain non-GAAP financial measures. Please also refer to the reconciliation of non-GAAP measures to the comparable GAAP measures in the earnings press release. Also, please note that, unless otherwise stated, all figures mentioned in this call are in RMB.

我們將討論某些非 GAAP 財務措施。另請參閱收益新聞稿中非 GAAP 措施與可比 GAAP 措施的調節。另請注意，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。

With that, I will turn the call over to Mr. Xu, our CEO. Xu?

有了這個，我將把電話轉給我們的首席執行官徐先生。徐？

[Interpreted] Hello, everyone. This is Xu Lei. Thank you for joining JD.com's third quarter earnings call.

【解讀】大家好。這是徐磊。感謝您參加京東第三季度財報電話會議。

2022 has been a year full of challenges, a year both momentous and extraordinary. We have withstood nationwide COVID resurgences, challenging macro conditions, flattish consumption demand as well as supply chain disruptions. Facing the complex dynamics, JD has been making full use of our supply chain capability and a resilient business model, which we built over the years as we strived to provide best possible service to customers, raise operating certainty for real economy participants, while at the same time, delivering steady business growth of our own.

2022年是充滿挑戰的一年，是重要的一年，也是不平凡的一年。我們經受住了全國范圍內的 COVID 復甦、充滿挑戰的宏觀環境、平淡的消費需求以及供應鏈中斷。面對複雜的形勢，京東一直在充分利用我們多年來建立的供應鏈能力和彈性商業模式，努力為客戶提供最好的服務，為實體經濟參與者提高運營確定性，同時在同時，實現我們自身業務的穩定增長。

Moreover, we are delighted to see substantial improvement in our growth quality this year. Given the evolving economic and industry environment, since the beginning of the year, JD made preemptive decisions to focus on our core businesses while reinforcing quality, operations and management and attaching greater importance to business health. We believe this is the best way to maintain operating stability in times of external stress and ensure rapid regeneration while the economy recovers.

此外，我們很高興看到今年我們的增長質量有了顯著改善。面對不斷變化的經濟和行業環境，年初以來，京東先發製人，聚焦核心業務，強化質量、運營和管理，更加重視業務健康。我們認為，這是在外部壓力時期保持運營穩定並確保在經濟復甦時快速復甦的最佳方式。

As a result, along with our steady business growth, we have also experienced better operating quality, stability and profitability. This validates what we have communicated with investors many times before about the potential for margin improvement in our unique business model. It also builds a solid foundation for our sustainable development throughout different economic cycles.

因此，隨著我們業務的穩步增長，我們的經營質量、穩定性和盈利能力也得到了改善。這證實了我們之前多次與投資者溝通過的關於我們獨特的商業模式提高利潤率的潛力。它還為我們在不同經濟周期的可持續發展奠定了堅實的基礎。

We welcome and support the government's recent move to further optimize COVID control measures with a more science-based and targeted approach. We believe that this is important to contain virus threats and maintain the stability of economic and social development. They are also supporting policies for companies like JD that play an indispensable part in supporting the industrial belt and people's livelihood. We will fully cooperate with and implement the authorities' relevant decisions and arrangements.

我們歡迎並支持政府近期採取的進一步優化疫情防控措施的舉措，更加科學、更有針對性。我們認為，這對於遏制病毒威脅、維護經濟社會發展穩定具有重要意義。他們也在為像京東這樣在支持產業帶和民生方面發揮不可或缺作用的企業提供支持政策。全力配合和落實有關部門的有關決策部署。

It is true that COVID conditions will continue to pose challenges to the economy and consumption in the near term. That said, we remain confident in the continuous refinement of the COVID control measures, the resilience of the Chinese economy and the long-term prospects of the consumption market here. We also see growth opportunities amidst all the challenges.

誠然，COVID 條件將在短期內繼續對經濟和消費構成挑戰。儘管如此，我們仍然對 COVID 控制措施的不斷完善、中國經濟的韌性以及消費市場的長期前景充滿信心。我們也在所有挑戰中看到了增長機會。

As we made proactive adjustments and focused on our operating quality, we always put the essence of the retail business at the center of our core competencies and business model, namely customer experience, cost optimization and operational efficiency. With this long-held business philosophy in mind, we continue to achieve great progress in increasing customers' mind share and supply chain efficiencies.

在積極調整、注重經營質量的同時，我們始終將零售業務的本質放在我們核心競爭力和商業模式的中心，即客戶體驗、成本優化和運營效率。秉承這一長期堅持的經營理念，我們在提高客戶心智份額和供應鏈效率方面繼續取得長足進步。

In Q3, JD's annual active user base reached 588 million, mainly driven by the net addition of over 10 million active users from our core retail business. Our DAU also recorded a double-digit year-on-year growth. In addition to user base expansion, we also saw better user structure and user quality. In particular, both the number of old users and PLUS members delivered higher growth rates than other groups of users and made up a larger proportion of total users.

第三季度，京東的年度活躍用戶數達到 5.88 億，主要受我們核心零售業務淨增超過 1000 萬活躍用戶的推動。我們的 DAU 也錄得兩位數的同比增長。除了用戶基礎的擴大，我們還看到了更好的用戶結構和用戶質量。尤其是老用戶和PLUS會員的增長速度均高於其他用戶群，佔總用戶的比例更高。

This helped to drive increases in overall average shopping frequency and ARPU. For PLUS members, along with the scale expansion, we also saw that each of them on average spent over 8x as much as a non-PLUS member, demonstrating their high degree of loyalty engagement and purchasing power.

這有助於推動總體平均購物頻率和 ARPU 的增加。對於PLUS會員，隨著規模的擴大，我們還看到他們每個人的平均消費是非PLUS會員的8倍以上，顯示出他們高度的忠誠度和購買力。

During the latest Singles' Day Grand Promotion, JD highlighted the grand theme of cost-effectiveness and value for money, which helped us to onboard an increasing number of high-quality merchants and products. The promotion achieved a solid growth with a meaningful increase in the number of shopping users and a record number of participating brands, merchants and offline stores.

在最近的雙十一大促中，京東主打高性價比、物超所值的大主旋律，為我們吸納了越來越多的優質商家和產品。此次促銷活動取得了穩健的增長，購物用戶數量顯著增加，參與品牌、商家和線下商店的數量創下歷史新高。

In addition, the promotion of Singles'’ Day growth for many agricultural households and areas with nearly 10,000 SKUs of agricultural products sold over RMB 100,000. JD is committed to promoting the virtuous cycle of rural revitalization from direct sourcing of high-quality agricultural products to consumption upgrades to increased income performance.

此外，“雙十一”促農戶和地區近萬個SKU農產品銷售過10萬元。京東致力於推動鄉村振興從優質農產品直採到消費升級再到增收增效的良性循環。

During the promotion, we were also proud to see that over 500 million users clicked the best price guaranteed program in the app and aftersales service that JD has provided for many years. This reflects JD's supply chain capabilities and showcases our commitment to providing the best possible user experience, helping users to feel reassured at all times when they shop on our platform. This service has become a hallmark of JD's premium user experience and also pushes the boundaries of what the industry can do to advance user experience.

促銷期間，我們也很自豪地看到，超過5億用戶點擊了京東多年來提供的應用程序和售後服務中的最佳價格保證計劃。這反映了京東的供應鏈能力，展示了我們致力於提供最佳用戶體驗的承諾，幫助用戶在我們的平台上購物時始終感到放心。這項服務已成為京東優質用戶體驗的標誌，也突破了行業提升用戶體驗的界限。

The continuous improvement of operating quality also makes a solid foundation for us to make further progress in our long-term strategies, namely our online marketplace ecosystem, omnichannel businesses and supply chain capabilities, to empower the real economy. Our online marketplace ecosystem made solid progress in Q3 with the number of third-party merchants recording over 20% year-on-year growth for the seventh quarter in a row. Fashion, home group, sports and outdoor categories all outperformed the industry.

經營質量的持續提升也為我們的長期戰略，即我們的在線市場生態系統、全渠道業務和供應鏈能力，為實體經濟賦能提供了堅實的基礎。我們的在線市場生態系統在第三季度取得了穩步進展，第三方商家數量連續第七個季度同比增長超過 20%。時尚、家居、運動和戶外品類均跑贏行業。

Notably, with the onboarding of the Italian fashion brand, Fendi, JD has become the first platform to establish an all-around partnership with the nine luxury brands under the LVMH Group. A collection of fashion, cosmetics and sportswear brands also joined JD in Q3, such as Christian Louboutin, La Prairie and lululemon, further expanding our brand base. In addition, our supermarket business, JD Super, continued to roll out its National Pavillions program, providing consumers high-quality specialty products worldwide. In addition to the 70 National Pavillions already in operation, we welcomed nearly 20 countries who opened their National Pavillions on JD.com during the latest Singles' Day Grand Promotion.

值得注意的是，隨著意大利時尚品牌Fendi的入駐，京東成為首家與LVMH集團旗下九大奢侈品牌建立全方位合作的平台。 Christian Louboutin、La Prairie 和 lululemon 等時尚、化妝品和運動服飾品牌也在第三季度入駐京東，進一步擴大了我們的品牌基礎。此外，我們的超市業務京東超市繼續推出其國家館計劃，為全球消費者提供優質的特色產品。除了已經投入運營的70個國館外，在最近的光棍節大促中，我們還迎來了近20個國家在京東開設國館。

Overall, JD is dedicated to build an online marketplace ecosystem, where merchants can thrive with lower entry barriers and operating costs, better traffic allocation and marketplace rules as well as higher operating efficiency driven by the best of JD's supply chain, logistics and the technical capabilities. All these efforts have contributed to a sustainable growth of merchants and SMEs in times of uncertainty. During the latest promotion, merchants on our platform reported stellar performance with higher sales contribution, both on a year-on-year basis and compared to this year's 618 Grand Promotion.

總體而言，京東致力於構建一個在線市場生態系統，商家可以在這個生態系統中以更低的進入壁壘和運營成本、更好的流量分配和市場規則以及更高的運營效率在京東最好的供應鏈、物流和技術能力的推動下蓬勃發展.所有這些努力都有助於商人和中小企業在不確定時期的可持續發展。在最近的促銷活動中，我們平台上的商家報告說，無論是同比還是與今年的 618 大促銷相比，我們平台上的商家都表現出色，銷售額貢獻更高。

JD's omnichannel intra-city business maintained a strong growth momentum in Q3. In particular, Shop Now, our 1-hour delivery service, recorded a triple-digit year-on-year GMV growth with the services covering the vast majority of supermarket chains in China. Shop Now has forged close collaborations with brands and offline stores and generated incremental growth through omnichannels for brick-and-mortar partners.

京東全渠道同城業務在Q3保持強勁增長勢頭。尤其是我們的 1 小時送貨服務 Shop Now 實現了三位數的 GMV 同比增長，服務覆蓋了中國絕大多數連鎖超市。 Shop Now 與品牌和線下商店建立了緊密的合作關係，並通過全渠道為實體合作夥伴帶來了增量增長。

During the latest promotion, as the only on-demand retail platform selected by Apple for the presales of new iPhone 14 series, JDDJ worked together with Shop Now and sold hundreds of thousands of new iPhone models, making a record for new iPhone sales using on-demand retail model. In addition, JDDJ and Shop Now also partnered with over 200,000 offline stores during the latest promotion, covering a wide range of categories, such as supermarkets, mobile phones and electronics, cosmetics, home goods, baby and maternal and pets, and provided hourly delivery services in over 1,800 cities and counties.

在最近的一次促銷活動中，作為蘋果唯一選擇的新iPhone 14系列預售點播零售平台，京東到家攜手Shop Now銷售了數十萬台新iPhone，刷新了iPhone新機銷售記錄。 -需求零售模式。此外，京東到家與Shop Now在最新大促中還與超20萬家線下門店合作，覆蓋商超、手機電子、美妝家居、母嬰寵物等品類眾多，並提供小時配送服務。服務1800多個縣市。

Despite the challenging environment, JD Logistics continued to provide up- and downstream industry partnering with reliable integrated supply chain solutions, supporting enterprise customers to mitigate risks, respond to rapid external challenges and optimize cost and efficiency. In Q3, JDL also expanded the depth and breadth of collaborations with a variety of leading players in FMCG, home appliance, furniture, apparel, 3C, automobile and fresh produce industries. As a result, JDL maintained a resilient revenue growth in this quarter.

在充滿挑戰的環境下，京東物流繼續為上下游產業合作夥伴提供可靠的一體化供應鏈解決方案，支持企業客戶規避風險、快速應對外部挑戰、優化成本和效率。第三季度，JDL還擴大了與快消品、家電、家具、服飾、3C、汽車、生鮮等行業龍頭企業的合作深度和廣度。因此，JDL 在本季度保持了強勁的收入增長。

Notably, both the number of JDL's external customers and external revenue delivered double-digit year-on-year growth with the latter contributing nearly 70% of its total revenue in Q3. Moreover, JDL continued to expand its logistics infrastructure around the world. As of the end of Q3, JDL operated over 1,500 warehouses with an aggregate gross floor area of over 30 million square meters. It is also worth highlighting that JD Logistics Airlines, an affiliate of JD Logistics, commenced operation in Q3. In the future, JD Logistics Airlines will strengthen JDL's integrated supply chain services and help drive lower cost and higher efficiencies along the supply chain.

值得注意的是，JDL 的外部客戶數量和外部收入均實現了兩位數的同比增長，後者在第三季度貢獻了近 70% 的總收入。此外，JDL 繼續在全球擴展其物流基礎設施。截至三季度末，JDL運營著超過1500個倉庫，總建築面積超過3000萬平方米。值得一提的是，京東物流旗下的京東物流航空於第三季度開始運營。未來，京東物流航空將強化京東物流一體化供應鏈服務，助力供應鏈降本增效。

To conclude, amid the evolving external environment this year, JD had the foresight to double down on operating quality and the core business. This has enabled us to comfortably deliver high-quality growth, generate healthy margins and cash flow and accumulate strength for long-term development down the road. As I mentioned last quarter, as we navigate through the cyclical economic adjustments and the short-term challenges, we expect to see the momentum (inaudible) and the tremendous growth opportunities ahead of us.

總而言之，在今年不斷變化的外部環境中，京東有先見之明，在運營質量和核心業務上加倍下注。這使我們能夠輕鬆實現高質量增長，產生健康的利潤率和現金流，並為未來的長期發展積累實力。正如我在上個季度提到的，在我們應對周期性經濟調整和短期挑戰的過程中，我們希望看到勢頭（聽不清）和巨大的增長機會擺在我們面前。

As a company that is rooted in and services the real economy, JD supports the expansion of the demand side and the structural reform of the supply side in China, helping the real economy to achieve better quality and sustainable growth. Looking ahead, our well-established supply chain infrastructure, technical capabilities and the social responsibilities we are committed to will enable us to play a more important role in China's new development phase. We believe that only through our (inaudible), determination and perseverance can we live up through the times.

作為植根和服務實體經濟的企業，京東支持中國擴大需求側和供給側結構性改革，助力實體經濟實現更高質量和可持續增長。展望未來，我們完善的供應鏈基礎設施、技術能力和我們所承擔的社會責任將使我們在中國新的發展階段發揮更重要的作用。我們相信，只有通過我們（聽不清）的決心和毅力，我們才能與時俱進。

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

說到這裡，我想請桑迪發言。

Thank you, Lei, and hello, everyone. As many of you can see here on the ground, the COVID situation is still evolving and may add complexities to consumer sentiment and the operational environment from time-to-time. Nevertheless, in the third quarter, we recorded a set of improving metrics and encouraging milestones across our financial and business operations. Our solid results in the quarter demonstrated our ability to cope with difficult external dynamics while improving our core competencies to support a more sustainable growth trajectory going forward.

謝謝雷老師，大家好。正如你們中的許多人在實地看到的那樣，COVID 形勢仍在發展，可能會不時增加消費者情緒和運營環境的複雜性。儘管如此，在第三季度，我們記錄了一系列改進的指標，並在我們的財務和業務運營中取得了令人鼓舞的里程碑。我們在本季度的穩健業績表明我們有能力應對困難的外部動態，同時提高我們的核心競爭力以支持未來更可持續的增長軌跡。

In the third quarter, our net revenues grew by 11% year-on-year to RMB 244 billion, returning to a healthy growth track. We navigated through a challenging time, impacted by COVID resurgence and macro uncertainties. Our annual active user base also returned to growth and reached 588 million in total, representing a net addition of 7.5 million customers sequentially despite a partial drag due to our Jingxi business adjustment. More encouragingly, we saw more customers staying with us for a longer time. And average spending per customer has been consistently increasing as well. All of these improving metrics demonstrated deeper user engagement and enhanced customer trust.

第三季度，我們的淨收入同比增長11%至人民幣2,440億元，重回健康增長軌道。受 COVID 捲土重來和宏觀不確定性的影響，我們度過了充滿挑戰的時期。我們的年度活躍用戶群也恢復增長，總計達到 5.88 億，儘管受到京西業務調整的部分拖累，但仍比上一季度淨增加了 750 萬客戶。更令人鼓舞的是，我們看到更多客戶在我們這裡停留的時間更長。每個客戶的平均支出也一直在持續增長。所有這些改進的指標都表明了更深入的用戶參與和增強的客戶信任。

Breaking down the revenue mix. Product revenues were up 6% year-on-year, a recovery compared to 3% year-on-year growth in Q2. Service revenues grew by 42% year-on-year to RMB 46.5 billion, achieving a historic high of 19% of total net revenue. Logistics and other services revenues grew by 73% year-on-year in Q3. Excluding the consolidation effect of Deppon, it still delivered a year-on-year growth rate of 36%, continuing the momentum from Q2. I will elaborate more on the underlying drivers later.

打破收入結構。產品收入同比增長 6%，與第二季度 3% 的同比增長相比有所回升。服務收入同比增長42%至人民幣465億元，佔總淨收入的19%創下歷史新高。第三季度物流和其他服務收入同比增長73%。剔除德邦的整合效應，依然實現了36%的同比增速，延續了Q2的勢頭。稍後我將詳細說明底層驅動程序。

Marketplace and marketing revenue grew by 13% year-on-year, up from 9% year-on-year growth in Q2. In order to drive recovery, we saw merchants becoming more active again and invested additional advertising budget on our platform, which helped to accelerate our advertising revenue growth. Also, thanks to our relentless focus in improving the 3P ecosystem, we successfully onboarded an increasing number of merchants onto our platform, including a few notable wins in the apparel category. This brought our merchant base to a new height, laying a solid foundation for our open ecosystem.

市場和營銷收入同比增長 13%，高於第二季度的 9%。為了推動復甦，我們看到商家再次變得更加活躍，並在我們的平台上投入了額外的廣告預算，這有助於加速我們的廣告收入增長。此外，由於我們不懈地專注於改善 3P 生態系統，我們成功地將越來越多的商家納入我們的平台，包括在服裝類別中的一些顯著勝利。這將我們的商戶基礎提升到一個新的高度，為我們開放的生態系統奠定了堅實的基礎。

Now let's turn to our segment performance. JD Retail maintained solid top line growth with a healthier business mix and a continued margin improvement on a year-on-year basis. JD Retail's revenues reached RMB 212 billion in Q3, growing at a solid 7% year-on-year. Electronics and home appliance categories returned to an impressive 8% year-on-year growth, up from flat growth in Q2. During the quarter, as a result of our supply chain capabilities and strong consumer mind share, we swiftly matched the demand side for air-conditioners due to the unusual weather pattern, driving double-digit revenue growth in the home appliance category. Meanwhile, the launch of the latest mobile phone models in September helped to lift consumer demand and sales.

現在讓我們來看看我們的細分市場表現。京東零售保持穩健的收入增長，業務組合更健康，利潤率同比持續改善。京東零售第三季度收入達到 2120 億元人民幣，同比增長 7%。電子和家電品類從第二季度的持平增長恢復到令人印象深刻的 8% 同比增長。本季度，由於我們的供應鏈能力和強大的消費者心智份額，我們在異常天氣模式下迅速匹配了空調需求端，推動了家電品類的兩位數收入增長。同時，9 月份推出的最新款手機有助於提振消費者需求和銷售。

General merchandise revenues were up 3% year-on-year in Q3. COVID situation and a hard macro continued to dampen spending in consumer discretionary products, such as cosmetics, beverages, and partially contributed to the soft growth of general merchandise. Meanwhile, we started to proactively optimize our product mix, particularly in the supermarket category, to improve operating efficiency and profitability, which we expect to impact its growth rate for transitionary period.

第三季度日用商品收入同比增長 3%。 COVID 形勢和硬宏觀繼續抑制化妝品、飲料等非必需消費品的支出，並在一定程度上導致了一般商品的疲軟增長。同時，我們開始積極優化我們的產品組合，特別是在超市類別中，以提高運營效率和盈利能力，我們預計這將影響其過渡時期的增長率。

However, we believe it is important for us to stay focused on our core categories and capabilities in order to establish a healthier and more sustainable growth trajectory for the long term. That said, for the emerging categories, such as health care, home goods, pets and sports and outdoor, we continue to experience double-digit top line growth in the quarter, demonstrating our compelling user mind share across a wide range of categories.

然而，我們認為，重要的是我們要繼續專注於我們的核心類別和能力，以便建立更健康、更可持續的長期增長軌跡。也就是說，對於醫療保健、家居用品、寵物、運動和戶外等新興類別，我們在本季度繼續實現兩位數的收入增長，展示了我們在廣泛類別中引人注目的用戶心智份額。

We are seeing the results of our business optimization. JD Retail's fulfilled gross margin was up 80 basis points compared to the same quarter last year, mainly driven by our optimization efforts and the improving economies of scale. Also, as we continued to expand gross margin for most categories and remained disciplined in OpEx, JD Retail's operating margin was up 115 basis points on a year-over-year basis to 5.2% in Q3, above the 5% mark for the first time since the founding of the company.

我們正在看到業務優化的結果。京東零售的已實現毛利率與去年同期相比上升了 80 個基點，這主要是由於我們的優化工作和規模經濟的改善。此外，由於我們繼續擴大大多數品類的毛利率並在運營支出方面保持紀律，京東零售的營業利潤率在第三季度同比增長 115 個基點至 5.2%，首次超過 5% 大關自公司成立以來。

JD Logistics, or JDL, maintained a solid top line growth in Q3 and has achieved breakeven for 2 quarters in a row. JD Logistics Q3 revenue grew by 39% year-on-year to RMB 36 billion, partially because JDL acquired a majority stake in Deppon, which was consolidated since the end of July. Excluding the impact from the consolidation of Deppon, JDL's revenues were up 16% year-on-year, mainly driven by the resilient growth in revenues from external customers, which also saw acceleration on a sequential basis. As a result, revenues from external customers once again achieved a record-high revenue contribution of nearly 70%.

京東物流（簡稱 JDL）在第三季度保持了穩健的營收增長，並連續兩個季度實現盈虧平衡。京東物流Q3營收同比增長39%至360億元，部分原因是京東收購了德邦的多數股權，德邦自7月底開始並表。剔除德邦整合的影響，JDL 的收入同比增長 16%，主要受來自外部客戶的收入的彈性增長所推動，該收入也環比加速增長。因此，來自外部客戶的收入貢獻率再次創下近70%的歷史新高。

More encouragingly, as JDL relentlessly focused on improving customer mix, optimizing operations and realizing the economies of scale, its operating margin was up 350 basis points from a year ago to 0.7% in a seasonally low quarter. These results demonstrate JDL's ability to maintain a resilient growth, even in a challenging environment, will remain well on track of improving its profitability.

更令人鼓舞的是，由於 JDL 堅持不懈地專注於改善客戶組合、優化運營和實現規模經濟，其營業利潤率在季節性較低的季度中比一年前增長了 350 個基點，達到 0.7%。這些結果表明，即使在充滿挑戰的環境中，JDL 也有能力保持彈性增長，並將繼續保持在提高盈利能力的軌道上。

Dada reported revenues of RMB 2.4 billion and its operating loss [slided] sequentially to RMB 300 million. Dada continues to work closely with both internal and external business partners. Notably, JD Super, our supermarket business within JD Retail, has been collaborating with Dada to broaden product portfolio that offers intra-city on-demand retail services. The Shop Now service to consumers achieved a triple-digit GMV growth in Q3. This initiative also contributed positively to the margin of supermarket category.

達達報告收入為人民幣 24 億元，其營業虧損[下滑]至人民幣 3 億元。達達繼續與內部和外部業務合作夥伴密切合作。值得注意的是，我們在京東零售旗下的超市業務京東超市一直在與達達合作，以擴大提供同城按需零售服務的產品組合。面向消費者的 Shop Now 服務在第三季度實現了三位數的 GMV 增長。這一舉措也對超市品類的利潤率做出了積極貢獻。

Dada also established a collaboration with a variety of external brands. For example, Dada Now has been expanding instant delivery services to the coffee and the beverage category, which is now available in over 2,000 cities and counties nationwide. As you can see, with a broader spectrum of use cases offered by Dada, JD is in a much better position to serve our customers anytime, anywhere.

達達還與多個外部品牌建立了合作關係。例如，達達一直在將即時配送服務擴展到咖啡和飲料品類，目前已覆蓋全國2000多個城市和縣城。如您所見，隨著達達提供更廣泛的用例，京東可以更好地隨時隨地為我們的客戶提供服務。

Finally, as I shared in the last quarter, we continued to pursue rational development across our New businesses segment. It reported revenue of RMB 5 billion and operating profit of RMB 280 million with a positive operating margin in the quarter. This was mainly due to the gain from the first tranche closing of JD Property's third properties Core Fund in Q3 and the narrowing loss from Jingxi business.

最後，正如我在上個季度分享的那樣，我們繼續在新業務領域追求理性發展。該季度實現收入 50 億元人民幣，營業利潤 2.8 億元人民幣，營業利潤率為正。這主要是由於第三季度京東地產的第三隻房地產核心基金的第一批收益以及京西業務的虧損收窄。

As JD Property has a well-proven business model with total transferred AUM surpassing RMB 27 billion, we remain committed to further expanding this business in line with our prudent investment philosophy. In the face of the complex macro conditions, both domestically and internationally, we have also been pursuing strategic alignment in other non-core business, such as the Jingxi business. These measures resulted in a more moderate revenue growth but continued to narrow the operating loss sequentially even after excluding the gain from JD Property.

由於京東置業擁有成熟的商業模式，總轉讓資產管理規模超過人民幣 270 億元，我們將繼續本著審慎的投資理念進一步拓展該業務。面對國內外複雜的宏觀形勢，我們也在京西業務等其他非核心業務上尋求戰略對接。這些措施導致收入增長更為溫和，但即使剔除來自京東地產的收益，營業虧損仍繼續收窄。

Moving to the consolidated bottom line. As we proactively adopted measures to focus on our core businesses and improve operating efficiency, our bottom line reached a new milestone in Q3. Non-GAAP net income attributable to ordinary shareholders surpassed the RMB 10 billion mark for a single quarter for the first time in history. Non-GAAP net margin was 4.1%, representing an impressive year-on-year improvement of 180 basis points and reaching a historic high. On a GAAP basis, net income attributable to ordinary shareholders also improved to RMB 6 billion with GAAP net margin of 2.4%.

轉向綜合底線。由於我們積極採取措施專注於我們的核心業務並提高運營效率，我們的底線在第三季度達到了一個新的里程碑。 Non-GAAP歸屬於普通股股東的淨利潤歷史上首次單季度突破100億元大關。非美國通用會計準則淨利潤率為 4.1%，同比提升 180 個基點，創歷史新高。按美國通用會計準則計算，歸屬於普通股股東的淨利潤也增至人民幣 60 億元，美國通用會計準則淨利潤率為 2.4%。

Our free cash flow for the trailing 12 months this quarter was RMB 25.8 billion. This was mainly driven by our improving operating cash flow while partially offset by an increased CapEx in our infrastructure expansion that would position us well for the future growth. By the end of Q3, cash and cash equivalents, restricted cash and short-term investments added up to a total of RMB 218 billion, up from RMB 207 billion last quarter.

本季度過去 12 個月的自由現金流為 258 億元人民幣。這主要是由於我們改善了經營現金流，同時部分被基礎設施擴張中資本支出的增加所抵消，這將使我們為未來的增長做好準備。三季度末，現金及現金等價物、受限現金和短期投資合計2180億元，高於上季度的2070億元。

To close my remarks, the solid set of Q3 results demonstrated JD's business resilience in the face of rapidly evolving macro conditions. There may be no better time than now to rebuild the progress across our business initiatives and make positive changes where needed. We believe it's vital, especially in a time of uncertainty, to stay focused on delivering better operating efficiency, lower cost and best-in-class user experience, which represents the essence of the retail business and the bedrock of JD's long-term success.

最後，穩固的第三季度業績證明了京東在面對快速變化的宏觀環境時的業務彈性。現在可能是重建我們業務計劃進展並在需要時做出積極改變的最佳時機。我們認為，尤其是在充滿不確定性的時期，專注於提供更好的運營效率、更低的成本和一流的用戶體驗至關重要，這代表了零售業務的本質，也是京東長期成功的基石。

Our focus on building resilient business means that we are well positioned to help our users and business partners to cope with external challenges and make meaningful contributions to the society. All of these factors will make sure we are well prepared to benefit the next phase of great growth opportunities, which we believe won't be too far ahead.

我們專注於建設有彈性的業務，這意味著我們有能力幫助我們的用戶和業務合作夥伴應對外部挑戰並為社會做出有意義的貢獻。所有這些因素將確保我們做好充分準備，迎接下一階段的巨大增長機會，我們相信這不會遙遙無期。

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

有了這個，讓我們打開問答環節。謝謝你。

(Operator Instructions) Today's first question comes from Ronald Keung with Goldman Sachs.

（操作員說明）今天的第一個問題來自高盛的 Ronald Keung。

(foreign language) And congratulations on the strong third quarter results. I want to ask about the investment phase and mix growth drivers as we can see from the third quarter that Logistics, Dada and New businesses are no longer dragging the group earnings. So where are we thinking on mix, investments and growth areas? And then within JD Logistics, I've seen that the general merchandise, supermarket growth had moderated while margin level for JD Retail reached a new high. So heading into next year, how are we thinking about balancing growth, price advantage and stable margins?

（外語）祝賀第三季度業績強勁。我想問一下投資階段和混合增長動力，因為我們從第三季度可以看到，物流、達達和新業務不再拖累集團盈利。那麼，我們在哪些方面考慮組合、投資和增長領域？然後在京東物流內部，我看到一般商品、超市的增長放緩，而京東零售的利潤率水平創下新高。那麼進入明年，我們如何考慮平衡增長、價格優勢和穩定的利潤率？

[Interpreted] This is Xu Lei. Let me start the question by sharing with you our long-term health and philosophy to do business. This has remained unchanged for the 19 years of JD.com. We will always put great importance to the users' experience and the cost and efficiency. No matter what kind of growth and new business we do, we will stick to these three points. And in terms of our two customer businesses, we'll attach great importance to the quality of our product and prices -- and good prices and premier services. So many of our investors know this is very difficult to always speak to these philosophies and concepts through the 19 years of JD's development.

【解讀】我是徐磊。讓我通過與您分享我們的長期健康狀況和經營理念來開始這個問題。這在京東19年裡一直沒有改變。我們將始終高度重視用戶體驗以及成本和效率。無論我們做什麼樣的增長和新業務，我們都會堅持這三點。就我們的兩個客戶業務而言，我們將非常重視我們產品的質量和價格——以及良好的價格和一流的服務。所以我們很多投資人都知道，京東19年的發展，一直講這些理念和理念是很難的。

And in terms of some changes this year, I would say that we'll make more concentration and focus on our core businesses. This is based on our analysis early this year. And we have made some proactive measures according to our early analysis, which to date, we think it's very timely adjustments we have made and also taking the leading actions among this industry.

就今年的一些變化而言，我會說我們將更加集中並專注於我們的核心業務。這是基於我們今年年初的分析。並且根據我們前期的分析，我們已經採取了一些積極的措施，到目前為止，我們認為這是我們做出的非常及時的調整，並且在這個行業中採取了領先的行動。

And we are certain that even though many enterprises are facing challenges, we do see a brighter future. And there's some obvious signs on the economic recovery. Even though the sign is very clear, but we are still not very clear about how fast the speed of the recovery. So from the management's perspective, what we want to do is that we stick to our current strategies, and we should have a very clear view on the future in terms of which directions and what will be changing in this industry, in this market and how strong is this momentum so as to make our resources investment in a more clear pace.

我們堅信，儘管許多企業面臨挑戰，但我們確實看到了更加光明的未來。並且有一些明顯的經濟復甦跡象。儘管跡象非常明顯，但我們仍然不太清楚復甦的速度有多快。所以從管理層的角度來看，我們要做的是堅持我們目前的戰略，我們應該對未來有一個非常清晰的看法，這個行業、這個市場會發生哪些變化，會發生什麼變化，以及如何變化。強勁的勢頭使我們的資源投資步伐更加清晰。

And in terms of the strategies for JD Retail, we will continue to stick to the big four strategies, which are the building of the supply chain capability and expansion into the lower-tier markets and being open ecosystem and the intra-city retail. We will stick to these four.

而在京東零售的戰略上，我們將繼續堅持四大戰略，即供應鏈能力建設和下沉、開放生態和同城零售。我們將堅持這四個。

And in terms of the supermarket business, indeed, mainly affected by the COVID resurgence, and its growth is going in the down way. However, we saw many progresses made in these categories, including its healthiness, its profitability and its ability to manage categories. So overall, for the JD Super users, had accounted for over -- or account for 50% of the overall JD.com platform. And we are confident for the future growth of this category. And we also made some new experiments in this category for our intra-city and lower-tier market expansion this quarter.

而就超市業務而言，確實，主要受 COVID 復甦的影響，其增長正在走下坡路。然而，我們看到這些品類取得了很多進步，包括它的健康、盈利能力和管理品類的能力。所以總體而言，對於京東超級用戶來說，已經佔了整個京東平台的 50% 以上。我們對這一類別的未來增長充滿信心。本季度我們還在這一類別中為我們的同城和低線市場擴張做了一些新的實驗。

And our next question comes from Thomas Chong at Jefferies.

我們的下一個問題來自 Jefferies 的 Thomas Chong。

(foreign language) And congratulations on a very solid set of results. My first question is about the logistics disruption due to the pandemic recently. How should we think about impact to consumer sentiment, user experience? And on that one, how should we think about the short-term impact to GMV and revenue growth momentum? And my second question is about the latest product category trend, of course, smartphones, consumer electronics, FMCG and apparels.

（外語）祝賀你取得了非常可靠的成績。我的第一個問題是關於最近大流行造成的物流中斷。我們應該如何考慮對消費者情緒、用戶體驗的影響？關於這一點，我們應該如何考慮對 GMV 和收入增長勢頭的短期影響？我的第二個問題是關於最新的產品類別趨勢，當然是智能手機、消費電子產品、快速消費品和服裝。

[Interpreted] And indeed, as you pointed out that the logistic fulfillment has been severely impacted by the COVID situation actually in the past 2 years. This year, it's the most heavily affected. I want to share with you actually data here that in September to present in terms of our logistic fulfillment, 17% of our customer home addresses have been affected by these COVID control measures. And this doesn't mean that it affects the order amount and the sales on JD. But indeed, this is the worst year in terms of fulfillment.

[解讀] 事實上，正如你所指出的，在過去的兩年裡，物流履行實際上受到了 COVID 情況的嚴重影響。今年，它受到的影響最為嚴重。我想在這裡與您分享實際數據，從 9 月到目前，就我們的物流履行而言，我們 17% 的客戶家庭住址已受到這些 COVID 控制措施的影響。這並不意味著它會影響京東的訂單量和銷售額。但事實上，就實現而言，今年是最糟糕的一年。

And indeed, this situation -- difficult situation will affect our sales and fulfillment. But also, I'm proud to share with you, according to China's Post Bureau service recently, in terms of the service experiences, JD Logistics stands #1 among this industry, which once again validated our efforts made in our supply chain capability building to help us to stand out and gain consumers' trust in this difficult time.

事實上，這種情況——困難的情況會影響我們的銷售和履行。另外，我很自豪的跟大家分享一下，根據最近中國郵政局的服務，在服務體驗方面，京東物流在行業中排名第一，這再次驗證了我們在供應鏈能力建設方面的努力，幫助我們在這個困難時期脫穎而出並贏得消費者的信任。

And just also based on our data from the Singles'’ Day Grand Promotion, we do see a higher rate of order cancellations. It's a higher cancellation rate than the past years because of the fulfillment difficulties and the longer waiting times. However, I want to emphasize here that people come to JD.com for more brand shopping. So we believe the cancellation rate for these platforms with more impulsive shopping or shopping based on their interest, the cancellation rate should be higher.

而且根據我們從光棍節大促銷中獲得的數據，我們確實看到了更高的訂單取消率。由於履行困難和更長的等待時間，取消率高於過去幾年。不過這裡要強調的是，來京東的人更多是為了買品牌。所以我們認為對於這些比較衝動購物或者憑興趣購物的平台，取消率應該更高一些。

And another group of people has attached great importance on our brand partners and merchants. And based on JD's shopping features with more brand shopping and premier shopping experiences, this can translate to the better operating cost and the profitability for merchants and brands and make us stand out among all the other e-commerce platforms.

而另一批人則非常重視我們的品牌合作夥伴和商家。並且基於京東更多品牌購物和優質購物體驗的購物功能，這可以轉化為更好的運營成本和商家和品牌的盈利能力，使我們在所有其他電子商務平台中脫穎而出。

And in terms of the faster-growing categories, in Q3, we've seen that home appliances, fresh goods, health, sports and pets are doing a good job, also including our Shop Now services for the intra- retail and our offline business, Five Star Appliance stores.

而在增長較快的類別方面，在第三季度，我們看到家電、生鮮、健康、運動和寵物做得很好，也包括我們為零售和線下業務提供的 Shop Now 服務, 五星級家電賣場。

And for these less ideal-performing categories include cosmetics and mobile phones and -- but also, we see that since September, some new phone model releases, the situation is getting better. And this will continue in the lead-up to Q4. And for this (inaudible) category, it's affected by the limited shopping scenarios due to the COVID. And also, the baby and the mother category is affected due to the reduced newborns. And there are many (inaudible) categories on JD.com. And we are regularly reviewing those loss-making categories and make dynamic adjustments to maintain the healthiness across all categories. And we have seen improvements on the performance of all categories and better satisfaction among brands and merchants. And despite of (inaudible), we see their market share all continue to increase.

對於這些表現不太理想的類別，包括化妝品和手機，而且——而且，我們看到自 9 月以來，一些新手機型號發布，情況正在好轉。這將持續到第四季度。對於此（聽不清）類別，它受到 COVID 導致的有限購物場景的影響。而且，由於新生兒減少，嬰兒和母親類別也受到影響。 JD.com 上有很多（聽不清）類別。我們會定期審查這些虧損類別並進行動態調整以保持所有類別的健康。我們已經看到所有品類的表現都有所改善，品牌和商家的滿意度也有所提高。儘管（聽不清），我們看到他們的市場份額都在繼續增加。

This is Sandy. I can add more color on the short-term [category order] trends. So as Xu Lei just mentioned, we are still facing some short-term challenges due to the COVID control measures. And also, we view the 20 new rules guiding COVID control policies to be very positive and constructive for the recovery of domestic supply chain and consumer confidence. But it will take some time to actually see the positive impact on consumption data, given the current situation. So in the short term, we recommend analysts to be more conservative in modeling the top line performance. But we are more confident in the long-term strategies and the growth next year.

這是桑迪。我可以在短期 [類別訂單] 趨勢上添加更多顏色。所以正如徐磊剛才提到的，由於 COVID 控制措施，我們仍然面臨一些短期挑戰。此外，我們認為指導 COVID 控制政策的 20 條新規則對於國內供應鍊和消費者信心的恢復非常積極和建設性。但鑑於目前的情況，要真正看到對消費數據的積極影響還需要一些時間。因此，在短期內，我們建議分析師在對頂線業績進行建模時更加保守。但我們對長期戰略和明年的增長更有信心。

Specifically for JD Retail, yes, we see that the recircling of the COVID situation affects more regions in the country at this time. And also, there are disruptions to logistics and fulfillment, resulting a decrease in the successful procurement rate as Xu Lei just mentioned as well as an increase in the order cancel or return rate compared to prior years. So the consumers also become more conservative or rational under the current macro environment. And in fact, the demand was good during the major promotions but softer before and after the promotion.

具體到京東零售，是的，我們看到COVID情況的再循環目前影響到全國更多的地區。而且，物流和履行也出現了中斷，導致徐磊剛才提到的採購成功率下降，訂單取消或退貨率與往年相比有所上升。因此，消費者在當前的宏觀環境下也變得更加保守或理性。事實上，在主要促銷期間需求很好，但在促銷之前和之後都比較疲軟。

So in Q4, we see that different categories performed differently. But in general, the essentials, daily necessity products performed stronger than the discretionary products. In particular, for apparels and other discretionary products remained relatively soft. So we are -- the management team is paying more attention to operating quality this year, taking proactive initiatives, including making some structural adjustments to the SKUs or subcategories with heavy investments. So we still have some negative impact on the short-term top line growth. But we believe it will build very good foundation for our long-term top line performance. So with all these factors considered, the category trend will continue in Q4 but may slow down a bit moderately from Q3.

所以在第四季度，我們看到不同類別的表現不同。但總的來說，必需品、生活必需品的表現強於非必需品。特別是服裝和其他可自由支配的產品仍然相對疲軟。所以我們 - 管理團隊今年更加關注運營質量，採取積極主動的措施，包括對 SKU 或子類別進行一些結構調整，投入巨資。因此，我們對短期收入增長仍有一些負面影響。但我們相信這將為我們的長期收入表現奠定良好的基礎。因此，考慮到所有這些因素，類別趨勢將在第四季度繼續，但可能會從第三季度開始適度放緩。

And then for JD Logistics, its organic top line growth will be similar in Q3 -- to Q3 and the internal revenue will again be affected by the decrease of the orders of Jingxi business. And JD Logistics' external revenue growth will significantly outpace that of the internal revenue again in the fourth quarter. Deppon was consolidated at the end of July. And it will contribute more to external revenue in Q4. On the New businesses segment side, so the revenue growth of Jingxi Pinpin will still be negative, will be adjusted for our overall revenue performance. And international business strategy has also been adjusted and put in plan to improve the operating efficiency, and while our JD Property maintains a relatively high growth momentum.

然後對於京東物流，其第三季度的有機收入增長將與第三季度相似，內部收入將再次受到京西業務訂單減少的影響。而京東物流第四季度的外部收入增速將再次大幅超過內部收入。德邦於7月底合併。它將為第四季度的外部收入貢獻更多。在新業務方面，京西品品的收入增長仍將為負，將根據我們的整體收入表現進行調整。並且國際業務戰略也進行了調整和計劃，以提高運營效率，同時我們的京東物業保持了較高的增長勢頭。

Our next question comes from Eddy Wang with Morgan Stanley.

我們的下一個問題來自摩根士丹利的 Eddy Wang。

(foreign language) My question is that we have already witnessed a part of signal in terms of the COVID policy relaxation as well as the potential reopening in early next year. So I just want to hear your view that, assuming that this reopening will gradually to happen in next year, what kind of preparation or strategy changed in our -- based on our current strategy in this year?

（外語） 我的問題是，我們已經看到了部分信號，包括 COVID 政策放鬆以及明年初可能重新開放。所以我只想听聽你的看法，假設這種重新開放將在明年逐漸發生，我們在今年根據我們目前的戰略改變了什麼樣的準備或戰略？

And the follow-up question is that we have seen very strong margin improvement in terms of the JD Retail business and the other business. So if assuming that there will be a very strong recovery in terms of consumption next year, are we able to achieve both strong margin improvement together with the top line reacceleration? Or it will be a balance between the margin improvement with -- and the top line growth?

後續問題是，我們已經看到京東零售業務和其他業務的利潤率有了非常強勁的改善。因此，如果假設明年消費方面將出現非常強勁的複蘇，我們是否能夠同時實現強勁的利潤率改善和營收再加速？或者這將是利潤率改善與收入增長之間的平衡？

[Interpreted] And let me answer the first question. And firstly, I want to make a bit of correction. There are certainties and uncertainties. By the certainties I mean that we do see there are some new signals, and we are getting ready for the good things to come. I believe that the worst time has been passed, and we do receive some signals and some good information and factors for a brighter future. However, for the rebound, the question is when and how strong? So these are the uncertainties. We are not quite sure how strong and what's the time the recovery will come.

[解釋] 讓我回答第一個問題。首先，我想做一些更正。有確定性和不確定性。我所說的確定性是指我們確實看到了一些新信號，我們正在為好事的到來做好準備。我相信最糟糕的時期已經過去，我們確實收到了一些信號和一些好的信息以及更光明未來的因素。不過，對於反彈，問題是何時反彈，反彈力度有多大？所以這些都是不確定性。我們不太確定復甦的強度和時間。

So for JD.com, we are such a large company that covering the whole country from the first- to fifth-tier cities. And we believe the recovery will come in different formats and different times on different groups of people in different regions. And since our -- based on our communications with our brand partners, they all expressed to -- their strategy to focus on profit this year, and this also coupled with their concerns on the supply chain impact made by the Ukraine war. So whether or not next year, they will focus more on profitability or on the growth, it's really hard to tell at this moment. So we will also make our dynamic evaluations and to make the investment decisions at the right time next year. Hope this answers your question.

所以對於京東來說，我們是一個從一到五線城市覆蓋全國的大公司。我們相信復甦將以不同的形式和不同的時間出現在不同地區的不同人群中。自從我們 - 根據我們與品牌合作夥伴的溝通，他們都表示 - 他們今年的戰略重點是利潤，這也加上他們對烏克蘭戰爭對供應鏈影響的擔憂。因此，明年他們是否會更多地關注盈利能力或增長，目前還很難說。所以明年我們也會進行動態評估，適時做出投資決策。希望這能回答您的問題。

And on the profit, I want to make a further explanation here. For JD's growth throughout the years, there are two main drivers. One is for the product structure changes. With a higher percentage of certain products, their gross margins will improve steadily and also the increase in revenue from the services we provide. So throughout the years, you can hear that all the companies are talking about lower the cost and improve efficiency. And for JD.com, this year, we focus more on lower the cost and to improve stability for the internal management. And I believe in next year and the year -- in the next 2 years, we will focus more on the improvement of the efficiency. I can see there's many areas we can continue to improve efficiency. That's what I want to add.

而關於利潤，我想在這裡做進一步的說明。對於京東多年來的增長，有兩個主要驅動力。一是針對產品結構的變化。隨著某些產品的比例更高，它們的毛利率將穩步提高，我們提供的服務的收入也會增加。所以多年來，你可以聽到所有的公司都在談論降低成本和提高效率。而對於京東來說，今年我們更注重降低成本和提高內部管理的穩定性。我相信在明年和未來的一年裡——在接下來的兩年裡，我們將更多地關注效率的提高。我可以看到我們可以在很多方面繼續提高效率。這就是我要補充的。

And this is Sandy. I want to advertise that our long-term margin target hasn't changed, which is based on the industry-level margin and the operating efficiency we can generate through technology and the scale of our business operation. If the consumer confidence is largely recovered, we will add more investments to drive growth in users and the market share. However, at the same time, we will also gain additional operating efficiency, as Xu Lei just mentioned, due to spillover benefit, due to technology and due to the increased contribution of our service income. So this is the beauty of retail business.

這是桑迪。我想宣傳一下，我們的長期利潤率目標沒有改變，這是基於行業水平的利潤率和我們可以通過技術產生的運營效率以及我們的業務運營規模。如果消費者信心基本恢復，我們將增加投資以推動用戶和市場份額的增長。但是，與此同時，我們也將獲得額外的運營效率，正如徐磊剛才提到的，由於溢出效益，由於技術以及由於我們服務收入的貢獻增加。這就是零售業的美妙之處。

Although we achieved a very important milestone for net income this quarter at the group level, but on an annual basis, our margin is still below the industry level for almost all business segments. So we always -- so there's still room for us to continue to improve our bottom line performance. JD always pursue sustainable growth. And we will try to deliver stable margin with steady improvement year-over-year until our long-term margin target is met. Of course, during that journey, we will make dynamic adjustments based on the market situation.

儘管本季度我們在集團層面實現了淨收入的一個非常重要的里程碑，但按年度計算，我們幾乎所有業務部門的利潤率仍低於行業水平。所以我們總是 - 所以我們仍有空間繼續提高我們的底線績效。京東始終追求可持續增長。我們將努力實現穩定的利潤率，逐年穩步提高，直到實現我們的長期利潤率目標。當然，在那段旅程中，我們會根據市場情況進行動態調整。

And our next question today comes from Lingyi Zhao with SWS Research.

我們今天的下一個問題來自 SWS Research 的 Lingyi Zhao。

(foreign language) This is Lingyi Zhao from SWS Research. I would like to congratulate the management team on the great results. My first question is about on-demand retail. What is the long-term vision we see in on-demand retail market? And after Dada's integration, what adjustments have been made? And which fields will be summarized? We all see the article by [Mr. Xu Lei though] in People's Daily, which talks about promoting the deep integration of digital and real sectors of the economy. My next question is could you please introduce JD's measures in these big trends?

（外語）我是申万萬國的趙令宜。我要祝賀管理團隊取得的優異成績。我的第一個問題是關於按需零售。我們在按需零售市場看到的長期願景是什麼？而達達整合後，又做了哪些調整？哪些字段將被匯總？我們都看到了[先生的文章。徐磊雖然]在《人民日報》上談到推動數字經濟與實體經濟深度融合。我的下一個問題是，請您介紹一下京東在這些大趨勢中的舉措？

[Interpreted] Thank you for the question. And I have shared a lot about the intra-city retail before. And now I want to give you some update on our thoughts and observations. So first, I want to say that for JD.com to enter into the intra-city retail business, it's purely based on the need drive of the users, if not some opportunity, business opportunities, we jump in. It's based on the users' demand. And we're looking at this business. And our understanding is based on the perspective of supply chain -- I don't want to like think in other people's brain about how they think about intra-city retail. This is where we start from.

[翻譯]謝謝你的提問。我之前分享過很多關於同城零售的內容。現在我想向您介紹我們的想法和觀察的最新情況。所以首先我想說，京東進軍同城零售業務，純粹是基於用戶的需求驅動，如果不是什麼機會，商機，我們就跳進去。它是基於用戶' 要求。我們正在研究這項業務。我們的理解是基於供應鏈的角度——我不想在其他人的大腦中思考他們如何看待同城零售。這是我們的起點。

And in terms of the entry point, different companies adopt different dimensions. For JD.com, we entered this market by building a relation with the big supermarket chains as our [KA]. And in terms of the categories, we start with our 3C and supermarket category. And for other players, they might start with some SME stores. So we are entering in different directions.

並且在切入點上，不同的企業採用不同的維度。對於京東，我們通過與大型連鎖超市建立關係作為我們的 [KA] 進入這個市場。在類別方面，我們從 3C 和超市類別開始。而對於其他玩家，他們可能會從一些中小企業商店開始。所以我們正朝著不同的方向進入。

And our resources and relationships with brand partners is one of the key strengths for us in this intra-city business. And this has been based on our long-time collaboration with our already existed B2C models. We have been collaborating with our partners in many directions, in many dimensions on the supply chain cooperation, on marketing and sales, the release of new products, et cetera. And altogether, we are forging three-party winning situations among JD, brand partners and the offline supermarkets.

我們的資源以及與品牌合作夥伴的關係是我們在同城業務中的關鍵優勢之一。這是基於我們與現有 B2C 模型的長期合作。我們一直在與我們的合作夥伴進行多方面的合作，在供應鏈合作、市場營銷、新產品發布等多個維度上。共同打造京東、品牌夥伴、線下商超三方共贏局面。

Let me make one example about the intra-city retail cooperation with Apple. As you know that in the September, Apple released its iPhone 14. And a lot of companies are taking this opportunity to do marketing. And according to the data we collected on this market during the same period of time, JD.com and our intra-city retailing business topped in terms of the sales. And we are 7 to 9x higher in terms of sales of iPhone 14 series as opposed to the second place, the runner-up retailer platform. However, we did not want to brag about it. Because our starting point to do this collaboration is to provide more convenience for consumers to buy the new series of iPhone. And we believe the value to collaborate with the official brands and to improve efficiency for this new phone release.

我舉一個與蘋果同城零售合作的例子。大家知道，9月份，蘋果發布了iPhone 14，很多公司都在利用這個機會做營銷。根據我們同期在該市場收集的數據，京東和我們的同城零售業務在銷售額方面名列前茅。就 iPhone 14 系列的銷量而言，我們比第二名、亞軍零售商平台高出 7 到 9 倍。但是，我們不想吹噓它。因為我們做這次合作的出發點是為了給消費者購買新系列iPhone提供更多便利。我們相信與官方品牌合作並提高這款新手機發布效率的價值。

And as opposed to traditional B2C model, this intra-city retail is a new type of supply chain we are building. There's still a big improvement room for us to improve, such as on users' experience, the synergies we formed with our brand partners, the LBS-based services and then optimize the fulfillment and the transportation power improvement. So for now, we will focus on several indicators for this business, including user experience, their repurchase rate, improvement -- the number of orders, et cetera. So still, we focus on the efficiency and experience to develop this business.

與傳統的B2C模式不同，這種同城零售是我們正在建設的一種新型供應鏈。我們還有很大的改進空間，比如在用戶體驗上，我們與品牌合作夥伴形成的協同效應，基於LBS的服務，然後優化履行和運輸能力的提升。所以現在，我們將關注這項業務的幾個指標，包括用戶體驗、他們的回購率、改進——訂單數量等等。因此，我們仍然專注於發展這項業務的效率和經驗。

And in terms of the integration with the real economy, I want to share that JD is building a responsible supply chain. And this does not only provide more stabilities and reliabilities for our own supply chain, we also opened ourselves with this capability to support our partners upstream and downstream to help in their digital transformation and improve cost and efficiency and to promote a high-quality real economy development.

而在與實體經濟的融合方面，我想分享一下，京東正在打造負責任的供應鏈。這不僅為我們自己的供應鏈提供了更多的穩定性和可靠性，我們也開放了自己的能力，支持我們上下游的合作夥伴，幫助他們進行數字化轉型，降低成本和效率，促進高質量的實體經濟發展。

And for JD's supply chain services, we are now serving over 8 million active enterprise customers. This includes over 90% of Global 500 companies who operate in China and nearly 70% of the so-called specialized and sophisticated SMEs. And we also provide some specialized supply chain services to the manufacturing and energy fields.

而對於京東的供應鏈服務，我們現在正在服務超過 800 萬活躍的企業客戶。這包括 90% 以上在中國運營的世界 500 強公司和近 70% 的所謂專業化和成熟型中小企業。我們還為製造和能源領域提供一些專業的供應鏈服務。

At the same time, JD's supply chain has been connected with millions of small and medium/small stores across China in over 300 cities. There are many forms, I won't just elaborate. And we are not only providing the last-mile solutions on their sales and services but also helping them on the first mile of the supply chain in upstream. This has been a very effective support for them to drive more traffic and lower their cost and improve their business efficiency.

同時，京東的供應鏈已與全國300多個城市的數百萬家中小門店打通。形式有很多種，我就不一一列舉了。我們不僅在他們的銷售和服務上提供最後一英里的解決方案，而且在上游供應鏈的第一英里幫助他們。這對他們拉動更多流量、降低成本和提高業務效率起到了非常有效的支持。

And here, I just want to add that JD.com generates rational profits. And we're running based on the low cost. And we fully understand the difficulties for the SMEs. They work -- they do their business in the offline scenarios. So while we are doing the supply chain support for them, we don't want to eat their profits. We want to form synergies with them. And together, we build rational profit. So this will not make us as some other companies who are entering the entering this offline market and generate also profit. This is not something I think rational.

在這裡，我只想補充一點，京東產生理性利潤。我們是基於低成本運行的。我們非常理解中小企業的困難。他們工作——他們在離線場景中開展業務。所以當我們在為他們做供應鏈支持的時候，我們不想吃掉他們的利潤。我們希望與他們形成協同效應。我們一起建立合理的利潤。所以這不會讓我們像其他一些進入這個線下市場的公司一樣產生利潤。這不是我認為理性的事情。

And lastly, I want to mention that in 2020, JD has launched our rural revitalization initiatives named -- called March to Rich Plan. And this plan has driven tens of billions of industrial output in the rural areas and helping millions of farmers to increase their income. And we feel confident that -- we set a goal to achieve CNY 1 trillion of industrial output under this program in rural areas within 3 years' time. And we can accomplish this ahead of the schedule. And so all of these are our understanding as a new type, real economy company. However, we know we are not doing enough. We are still improving ourselves, improving our capabilities. However, this is the goal we set, and we will stick to it.

最後，我想提一下，在 2020 年，京東啟動了我們的鄉村振興計劃，名為“三月致富計劃”。而這一計劃，帶動了農村數百億元的工業產值，幫助了數百萬農民增收。我們有信心——我們設定的目標是在 3 年內通過該計劃在農村地區實現 1 萬億元的工業產值。我們可以提前完成。所有這些都是我們作為一家新型實體經濟公司的理解。然而，我們知道我們做得還不夠。我們還在完善自己，提升自己的能力。但是，這是我們設定的目標，我們會堅持下去。

Thank you. We are now approaching the end of the conference call. I will now turn the call over to JD.com and Sean Zhang for any closing remarks.

謝謝你。我們現在接近電話會議的尾聲。我現在將電話轉給 JD.com 和 Sean Zhang 以聽取任何結束語。

Thank you for joining us on the call today and for your questions. If you have further questions, please contact me and our team. We appreciate your interest in JD.com as always, and looking forward to talking to you next time again. Thank you.

感謝您今天加入我們的電話會議並提出您的問題。如果您還有其他問題，請聯繫我和我們的團隊。感謝您一如既往對京東的關注，期待與您的再次交流。謝謝你。

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.]

[此記錄中標記為 [已翻譯] 的部分由現場通話中的口譯員說出。]