京東 (JD) 2023 Q4 法說會逐字稿

Hello, and thank you for standing by for JD.com's Fourth Quarter and Full Year 2023 Earnings Conference Call. (Operator Instructions) Today's conference is being recorded. If you have any objections, you may disconnect at this time.

您好，感謝您出席京東 2023 年第四季及全年獲利電話會議。 （操作員指示）今天的會議正在錄音。如果您有任何異議，您可以此時斷開連接。

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

現在我想將會議交給今天會議的東道主，投資者關係總監張肖恩。請繼續。

Thank you. Good day, everyone, welcome to JD.com Q4 and Full Year 2023 Earnings Conference Call. For today's call, CEO of JD.com, Ms. Sandy Xu will share her opening remarks; and our CFO, Mr. Ian Shan, will discuss the financial results. Then we'll turn the call to questions from analysts.

謝謝。大家好，歡迎來到京東第四季及 2023 年全年業績電話會議。在今天的電話會議上，京東執行長徐珊女士將致開幕詞；我們的財務長 Ian Shan 先生將討論財務表現。然後我們將在電話中回答分析師的問題。

Before turning the call over to Sandy, let me quickly cover the safe harbor. Please be reminded that during this call, our comments and responses to your questions 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 the IR website, which applies to this call. 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 all figures mentioned in this call are in RMB, unless otherwise stated.

在將電話轉給桑迪之前，讓我快速掩護安全港。請注意，在本次電話會議中，我們的評論和對您問題的答覆僅反映了管理層截至今天的觀點，並將包括前瞻性陳述，請參閱投資者關係網站上的收益新聞稿中的最新安全港聲明，其中適用於本次通話。我們將討論某些非公認會計準則財務指標。另請參閱收益新聞稿中非公認會計準則衡量標準與可比較公認會計準則衡量標準的調節表。另請注意，除非另有說明，本次電話會議中提到的所有數字均以人民幣為單位。

Now let me turn the call over to our CEO, Sandy.

現在讓我將電話轉給我們的執行長桑迪。

Thanks, Sean. Hello, everyone, and thanks for joining us today to discuss our Q4 and full year 2023 results.

謝謝，肖恩。大家好，感謝您今天加入我們討論我們的第四季和 2023 年全年業績。

In Q4, we delivered healthy top line and bottom line growth and made solid progress on operations, finishing off a productive 2023. In the past year, we stayed focused on constantly improving user experience, lowering costs and increasing efficiency amidst evolving opportunities and challenges. Guided by our business philosophy, we carried out a set of proactive moves to drive more sustainable growth for the long term, mainly in the areas of user experience improvement, low price offerings and platform ecosystem strategy.

第四季度，我們實現了健康的營收和利潤成長，營運取得了紮實進展，為富有成效的2023年畫上了圓滿的句號。過去的一年，我們在不斷變化的機會和挑戰中，專注於不斷改善使用者體驗、降低成本和提高效率。在我們的經營理念的指導下，我們採取了一系列積極舉措，以推動更永續的長期成長，主要是在使用者體驗改善、低價產品和平台生態系統策略等領域。

Despite some short term impact in 2023, our strategic refocus has successfully steered key operating metrics in a positive direction. 2024 will be a year of execution. Our team will take firm and steady steps to execute our existing strategies and push forward our 2 priorities for the new year, namely user experience improvement and market share expansion.

儘管 2023 年會受到一些短期影響，但我們的策略調整重點已成功引導關鍵營運指標朝正向發展。 2024年將是執行之年。我們的團隊將堅定不移地執行我們現有的策略，並推動新的一年的兩大重點，即改善用戶體驗和擴大市場份額。

We are encouraged by what we've seen and are confident that we are on the right path. Let me share some details. First, user engagement. In Q4, we saw the number of quarterly active customers accelerate at JD Group level. If looking at JD Retail alone, the growth was at an even faster pace in Q4, particularly in new users. We are excited to see our user momentum keep up in Q1. User behavior also trended better. For example, user shopping frequency on JD continued to rise both in Q1 and the full year. This increase was particularly driven by the growth of our loyal existing users and plus members.

我們對所看到的一切感到鼓舞，並相信我們走在正確的道路上。讓我分享一些細節。首先，用戶參與度。第四季度，我們看到京東集團層級的季度活躍客戶數量加速成長。如果只看京東零售，第四季的成長速度更快，尤其是新用戶方面。我們很高興看到我們的用戶勢頭在第一季保持不變。使用者行為也呈現更好的趨勢。例如，第一季及全年用戶在京東的購物頻率持續上升。這一成長主要是由我們忠實的現有用戶和高級會員的成長所推動的。

This means if users stay longer with us, they tend to shop more frequently with us, a validation of our user focus, our user experience and strengthening user mindshare. In addition, the JD Plus growth also translated to a robust order volume growth, hitting double-digit year-on-year in Q4 and accelerating for 3 consecutive quarters. In terms of JD Plus, we saw another quarter of robust growth of its member base and GMV contributed by plus members grew faster than our total GMV in Q4.

這意味著，如果用戶在我們這裡停留的時間更長，他們往往會更頻繁地在我們這裡購物，這驗證了我們的用戶關注點、用戶體驗並加強了用戶的關注度。此外，京東Plus的成長也帶來了強勁的訂單量成長，第四季同比達到兩位數，並連續三個季度加速成長。就京東Plus而言，我們看到其會員基數又一個季度強勁成長，且Plus會員貢獻的GMV成長速度快於我們第四季的總GMV。

The promising progress in user engagement is a result of our stepped-up efforts in improving user experience, low price offerings and implementing platform ecosystem strategies. Looking at our efforts in improving user experience. In addition to our previously launched popular initiatives such as free shipping, instant refunds and one click for best price guaranteed, we also recently launched new customer services such as free doorstep pickup for returns, cashback for delayed shipping. (foreign language). As a result, our Net Promoter Score, the NPS, for both our 1P and 3P business have improved substantially in Q4.

在用戶參與度方面取得的可喜進展是我們在改善用戶體驗、低價產品和實施平台生態系統策略方面加大努力的結果。看看我們在改善用戶體驗方面所做的努力。除了我們先前推出的免費送貨、即時退款和一鍵保證最優惠價格等受歡迎的舉措外，我們最近還推出了新的客戶服務，例如退貨免費上門取貨、延遲送貨現金返還。 （外語）。因此，我們的 1P 和 3P 業務的淨推薦價值 (NPS) 在第四季度都有了大幅改善。

As we are generating great momentum with our users, it's important to continue to build on these initiatives, which we believe will help to propel growth in 2024. Also, as an important part of our holistic approach to improving our user experience, we will continue to step up efforts in building our price competitiveness and platform ecosystem. For low price offerings, from day 1, we've been pushing forward our price competitiveness for branded products and a broader selection of value-for-money products. During the past year, we have further enhanced our ability to offer great value in branded products and expanded our selection for white label products.

隨著我們與用戶產生巨大的動力，繼續推動這些舉措非常重要，我們相信這將有助於推動 2024 年的成長。此外，作為我們改善用戶體驗整體方法的重要組成部分，我們將繼續加大價格競爭力和平台生態建設力度。對於低價產品，從第一天起，我們就一直在提高品牌產品的價格競爭力，並提供更廣泛的物有所值的產品選擇。在過去的一年裡，我們進一步增強了提供品牌產品巨大價值的能力，並擴大了白標產品的選擇範圍。

Our price competitiveness has notably improved according to our customer survey and in-house price comparison. We are glad to see our price NPS increased both sequentially and year-on-year in Q4, a proof that user experience and mindshare for JDs low price offerings is picking up.

根據我們的客戶調查和內部價格比較，我們的價格競爭力顯著提高。我們很高興看到我們的價格 NPS 在第四季度連續增長和同比增長，這證明京東低價產品的用戶體驗和關注度正在提升。

We also note other key metrics are trending well. The number of our users from lower tier markets grew faster in Q4 compared to previous quarters, and growth of order volume and shopping frequency generated by lower tier market users reached double digits year-on-year, outpacing that of our total users.

我們也注意到其他關鍵指標趨勢良好。第四季我們的低端市場用戶數量較前幾個季度增長更快，低端市場用戶的訂單量和購物頻率同比增長達到兩位數，超過了我們總用戶的增長。

We also note growth of low ticket size orders further sped up and far exceeded the growth of our total order volume in Q4. I want to highlight again that our price competitiveness is not supported by subsidies. The bedrock for JDs business model is always the supply chain capabilities, which enable us to generate scaling efficiency and lower product costs so that we can provide better value to users while maintaining healthy financial performance.

我們也注意到，小批量訂單的成長進一步加快，並遠遠超過了第四季總訂單量的成長。我想再次強調，我們的價格競爭力並不是靠補貼來支撐的。京東商業模式的基石始終是供應鏈能力，它使我們能夠產生規模效率並降低產品成本，從而為用戶提供更好的價值，同時保持健康的財務表現。

Shifting to platform ecosystem strategy, the number of active 3P merchants on our platform delivered another stellar growth both in Q4 and on a full year basis as the team did a great job onboarding and supporting them. Meanwhile, 3P users and 3P order volume both saw accelerated growth year-on-year in Q4 and in the full year of 2023. That said, we are still at an early stage of building our platform ecosystem and we are not prioritizing monetization of our young and rapid growing ecosystem at this stage.

轉向平台生態系統策略，我們平台上的活躍 3P 商家數量在第四季度和全年都實現了再次出色的成長，因為我們的團隊在引導和支持他們方面做得很好。同時，3P 用戶和 3P 訂單量在第四季度和 2023 年全年均同比加速增長。話雖如此，我們仍處於構建平台生態系統的早期階段，我們並沒有優先考慮我們的貨幣化現階段生態系年輕且快速發展。

Therefore, we are not taken by surprise when we see revenue generated from our 3P marketplace is lagging the growth of our 3P merchant base and orders in Q4, which was also partially driven by one-off factors. Ian will elaborate on this later. We believe this is only temporary. In fact, Q1, quarter-to-date, we've seen marketplace and marketing revenue bouncing back to a stronger momentum.

因此，當我們看到第四季度 3P 市場產生的收入落後於 3P 商家基礎和訂單的成長時，我們並不感到驚訝，這在一定程度上也是由一次性因素推動的。伊恩稍後將對此進行詳細說明。我們相信這只是暫時的。事實上，從第一季至今，我們已經看到市場和行銷收入反彈至更強勁的勢頭。

As shared before, our platform ecosystem encourages 1P and 3P to develop in a complementary way. Our 1P business also continues to make solid progress, thanks to our core capabilities in supply chain. In particular, users responded well to our nonstop services during the Chinese New Year holiday, an offering we've been committed to for 12 consecutive years. Also enabled by our supply chain strengths, our home appliance and electronics category continued to gain market share throughout 2023 despite industry headwinds. Going forward, we will further leverage our supply chain capabilities to build up better service capabilities, penetrate into lower tier and offline markets, and strengthen our cooperation with suppliers, which we believe will lead to a continuous expansion in market share in 2024.

如同先前所分享的，我們的平台生態系鼓勵1P和3P以互補的方式發展。憑藉我們在供應鏈方面的核心能力，我們的1P業務也持續取得紮實進展。特別是，使用者對我們連續12年提供的春節期間不間斷服務反應良好。此外，由於我們的供應鏈優勢，我們的家電和電子產品類別在 2023 年全年繼續獲得市場份額，儘管產業面臨阻力。未來，我們將進一步發揮供應鏈能力，打造更好的服務能力，滲透到低線和線下市場，加強與供應商的合作，我們相信這將導致2024年市場份額持續擴大。

Moreover, we saw our supermarket category trend to the right direction [as it has] dedicated itself to optimizing the supply chain and building a better product mix and fulfillment network. We believe there will be more upside for supermarket in 2024.

此外，我們看到我們的超市品類趨勢朝著正確的方向發展，[因為它]致力於優化供應鏈並建立更好的產品組合和履行網絡。我們相信 2024 年超市將有更大的上漲空間。

Finally, I want to highlight our commitment to shareholder returns. As announced in our earnings press release, our board has approved our 2024 annual cash dividend payment via aggregate amount of USD 1.2 billion, a meaningful increase compared to 2023. The board has also approved a new share repurchase program of USD 3 billion over the next 36 months. We are committed to creating more value for our shareholders.

最後，我想強調我們對股東回報的承諾。正如我們在收益新聞稿中宣布的那樣，我們的董事會已批准支付 2024 年年度現金股息，總額為 12 億美元，較 2023 年大幅增加。董事會還批准了未來 30 億美元的新股票回購計劃36個月。我們致力於為股東創造更多價值。

To conclude, 2023 was a year of strategic refocus and organizational upgrades which have set the foundation for JD. 2024 will be a year of execution along the strategic roadmap that is in place. We will continue to build upon the good foundation in user experience, low price offerings and platform ecosystem strategy and we'll further build up our core capabilities in supply chain with the market share and user experience at top of mind. We are confident in making steady progress this year.

綜上所述，2023年是京東戰略調整與組織升級的一年，為京東奠定了基礎。 2024 年將是依照現有策略路線圖執行的一年。我們將繼續以使用者體驗、低價產品和平台生態系統策略為基礎，進一步打造供應鏈核心能力，以市場佔有率和使用者體驗為首要考量。我們有信心今年穩中求進。

With that, I'll turn it over to Ian for our financial highlights. Thank you.

至此，我將把它交給伊恩來了解我們的財務要點。謝謝。

Thank you, Sandy and hello everyone.

謝謝你，桑迪，大家好。

We recorded a set of healthy top and bottom line results in Q4 ahead of our expectations as we focused on user experience improvement, price competitiveness and platform ecosystem in 2023. We are also committed to sharing our success with our shareholders. The board has approved our annual cash dividend of USD 1.2 billion for the fiscal year of 2023, representing USD 0.38 per ordinary share or USD 0.76 per ADS. Our dividend per ADS increased by 23% compared to the annual dividend paid in 2023. In addition, we stepped up share repurchases in Q4 and bought back 15 million ordinary shares for a total of approximately USD 203 million. As the existing program will expire soon, the board has approved a new share repurchase program of USD 3 billion over the next 36 months. This demonstrated our dedication to returning value to our shareholders.

我們在2023 年專注於用戶體驗改善、價格競爭力和平台生態系統，因此在第四季度取得了一系列健康的營收和利潤，超出了我們的預期。我們也致力於與股東分享我們的成功。董事會已批准我們 2023 財年的年度現金股利為 12 億美元，相當於每股普通股 0.38 美元或每股美國存託股 0.76 美元。與2023 年支付的年度股利相比，我們的每股美國存託股股利增加了23%。此外，我們在第四季加大了股票回購力度，回購了1,500 萬股普通股，總計約2.03 億美元。由於現有計畫即將到期，董事會批准了未來 36 個月內 30 億美元的新股票回購計畫。這顯示我們致力於為股東回報價值。

Now let me turn to our Q4 and full year 2023 financial performance. Our net revenues grew by 4% year-on-year to RMB 306 billion in Q4 and RMB 1.1 trillion for full year 2023 as we navigated a mix of macro recoveries, seasonality factors and our strategic refocus. Breaking down the revenue mix, product revenues were up 4% year-on-year in Q4 and 1% on a full year basis. By category, electronics and home appliances revenues were up 6% and 4% year-on-year in Q4 and full year, respectively, once again outpacing industry growth. We have seen solid market share expansion in these categories across every quarter of 2023 and continue to feel confident in this momentum going into 2024.

現在讓我談談我們第四季和 2023 年全年的財務表現。由於宏觀經濟復甦、季節性因素和戰略調整，我們的第四季淨收入年增 4%，達到 3,060 億元人民幣，2023 年全年淨收入達到 1.1 兆元。從營收結構來看，第四季產品營收年增 4%，全年成長 1%。以品類來看，第四季和全年電子和家電收入分別較去年同期成長6%和4%，再次超過產業成長速度。我們看到 2023 年每個季度這些類別的市場份額都在穩步擴張，並且對 2024 年的這一勢頭繼續充滿信心。

General merchandise revenue saw a turnaround to positive year-on-year growth in Q4 despite the impact of scaling back of Jingxi and international business, the high base in Q4 2022 due to stockpiling and the seasonality impact of Chinese New Year shopping festival. On a full year basis, such factors led to a 5% decline in general merchandise revenues.

儘管受到京西和國際業務縮減、2022年第四季因庫存增加而導致基數較高以及春節購物節的季節性影響，第四季百貨收入仍實現同比正增長。從全年來看，這些因素導致百貨收入下降了5%。

Taking a closer look, categories such as home goods and decoration, sports and apparel recorded double-digit year-on-year growth in Q4 as we further enriched our products and service offerings. These categories also drove higher user traffic, conversion rate and user stickiness in the quarter.

細看，隨著我們進一步豐富產品和服務內容，家居裝飾、運動服飾等品類第四季同比實現兩位數增長。這些類別也推動了本季更高的用戶流量、轉換率和用戶黏著度。

As for our supermarket category, we believe it has bottomed out and its growth trend will continue to strengthen in 2024, driven by its increasing order volume and user shopping frequency. Service revenues grew by 3% year-on-year in Q4 and 18% on a full year basis, primarily driven by the growth of logistics and other service revenues, which were up 8% and 30% year-on-year for the quarter and full year, respectively.

至於我們的超市品類，我們認為它已經觸底，並且在訂單量和用戶購物頻率不斷增加的推動下，其成長趨勢將在2024年繼續加強。第四季服務收入年增 3%，全年成長 18%，主要受到物流和其他服務收入成長的推動，該季度年增 8% 和 30%和全年。

Marketplace and marketing revenues were down 4% year-on-year in Q4 and up 3% on a full year basis. The softer performance in the quarter was primarily due to the decline in commission revenues as a result of our enhanced support for fast growing new merchants while advertising revenues also experienced one-off headwinds in Q4, mainly due to the seasonality impact of Chinese New Year shopping festival. We believe those were short term fluctuations and our platform is progressing well on our current strategies with a fast expanding base of active 3P merchants and accelerated growth in both 3P users and 3P order volumes. In the Q1 quarter-to-date, we saw that marketplace and marketing revenues have resumed growth.

第四季市場和行銷收入年減 4%，全年成長 3%。本季業績疲軟的主要原因是我們加強了對快速成長的新商家的支持，導致佣金收入下降，而廣告收入在第四季度也經歷了一次性阻力，主要是由於春節購物的季節性影響節日。我們認為這些都是短期波動，我們的平台在當前策略上進展順利，活躍 3P 商家基礎快速擴大，3P 用戶和 3P 訂單量加速成長。在第一季迄今為止，我們看到市場和行銷收入已恢復成長。

Now let's turn to our segment performance. JD Retail revenues increased by 3% year-on-year in Q4 and 2% on a full year basis. Our retail segments gross margin continued to increase both in Q4 and full year of 2023. This was driven by our improved supply chain capabilities which enable us to offer more value to our users while recording healthy margin expansion due to increased operating efficiency. Our strategic refocus also brought tailwinds to gross margins throughout 2023. On a full year basis, retail's fulfilled gross margin was up 39 bps, though in Q4, retail's fulfilled gross margin was down slightly by 7 bps year-on-year due to extended free shipping offerings since late Q3.

現在讓我們轉向我們的細分市場表現。京東零售第四季營收年增 3%，全年成長 2%。我們的零售部門毛利率在2023 年第四季和全年持續成長。這是由我們改進的供應鏈能力所推動的，這使我們能夠為用戶提供更多價值，同時由於營運效率的提高而實現利潤率的健康成長。我們的策略重心調整也為2023 年毛利率帶來了利好。從全年來看，零售業的履行毛利率增長了39 個基點，但在第四季度，零售業的履行毛利率因延長免費服務而年比小幅下降7 個基點自第三季末開始提供運輸服務。

Retail segment's non-GAAP operating margin came in at 2.6% in Q4, softer than a year ago but in line with our expectation as we invested in user experience and expanding user base. On a full year basis, retail's non-GAAP operating margin continued to improve to a record level of 3.8%, beyond our expectation. We are confident that our continued focus on user experience will lead to a better market position and expanded market share in 2024 and eventually present more headroom for profit expansion.

第四季零售部門的非 GAAP 營業利潤率為 2.6%，低於一年前，但符合我們對用戶體驗和擴大用戶群進行投資的預期。全年來看，零售業的非 GAAP 營業利潤率持續改善至創紀錄的 3.8%，超出了我們的預期。我們相信，我們對使用者體驗的持續關注將在 2024 年帶來更好的市場地位和擴大的市場份額，並最終為利潤擴張帶來更大的空間。

JD Logistics recorded a 10% revenue growth year-on-year in Q4 and 21% on a full year basis. External revenues accounted for 70% of total revenues in both Q4 and full year. In terms of profitability, [JDLs] non-GAAP operating margin picked up meaningfully with a 73 bps expansion year-on-year to 2.8% in Q4 and 22 bps expansion to 0.6% on a full year basis.

京東物流第四季營收年增10%，全年營收成長21%。第四季和全年外部收入均佔總收入的 70%。就獲利能力而言，[JDL] 非 GAAP 營業利潤率顯著回升，第四季年增 73 個基點至 2.8%，全年成長 22 個基點至 0.6%。

Before moving on to the next section, please note that following Dada's announcement in January, we are reporting the aggregated results of Dada and new business on the Others segment this time. We've adjusted the results of this segment in Q4 to reflect Dada's impact. Revenues of the segment were down 9% and 11% year-on-year in Q4 and full year, respectively, primarily due to Dada's impact and the scaling back of Jingxi and international business.

在進入下一部分之前，請注意，繼達達在一月份發佈公告後，我們這次報告的是達達和其他部門新業務的匯總業績。我們在第四季度調整了該部門的結果，以反映達達的影響。第四季和全年該部門的收入分別較去年同期下降9%和11%，主要是由於達達的影響以及京西和國際業務的縮減。

Excluding the disposal gain and the impairment loss of long-lived assets of JD Property, non-GAAP operating loss of the segment was RMB 474 million in Q4 and RMB 1.5 billion in full year, both representing substantial narrow down on a year-on-year basis as a result of the scaling back of Jingxi and international business.

剔除京東地產處置收益及長期資產減損損失，該板塊第四季非美國通用會計準則營業虧損為人民幣4.74億元，全年為人民幣15億元，年比均大幅收窄。因京西及國際業務縮減而導致。

Moving to the consolidated bottom line. In Q4, we recorded RMB 8.4 billion non-GAAP net income attributable to ordinary shareholders, with non-GAAP net margin expanding 16 bps to 2.7%. On a full year basis, our non GAAP net income attributable to ordinary shareholders was RMB 35.2 billion and the non-GAAP net margin was up 55 bps year-on-year to an all-time record of 3.2%.

轉向綜合底線。第四季度，我們錄得非 GAAP 歸屬於普通股股東的淨利 84 億元人民幣，非 GAAP 淨利潤率擴大 16 個基點至 2.7%。全年，我們的非美國通用會計準則歸屬於普通股股東的淨利為人民幣352億元，非美國通用會計準則淨利潤率年增55個基點，達到歷史最高水準3.2%。

We continue to generate healthy cash flow. Our last 12-month free cash flow as of the end of Q4 was RMB 41 billion, an increase of 14% from a year ago. This was driven by our improved profitability and further optimized cash conversion cycle. By the end of Q4, our cash and cash equivalents, restricted cash and short term investments added up to a total of RMB 198 billion.

我們繼續產生健康的現金流。截至第四季末，我們最近 12 個月的自由現金流為 410 億元人民幣，年增 14%。這是由於我們獲利能力的提高和現金週轉週期的進一步優化所推動的。截至第四季末，我們的現金及現金等價物、限制性現金及短期投資總計1,980億元。

To conclude, we have taken proactive actions and delivered a set of solid financial and operating results in Q4 and full year of 2023 amid evolving external environment and our business refocus. Going into 2024, we are well set to continue to execute the strategies we have in place. We feel confident in making further progress toward our operating priorities of user experience improvement and market share expansion, and we're committed to sharing our success with our shareholders.

總而言之，在不斷變化的外部環境和我們的業務重點調整的情況下，我們採取了積極行動，並在 2023 年第四季度和全年取得了一系列穩健的財務和營運業績。進入 2024 年，我們已做好準備繼續執行我們現有的策略。我們有信心在改善用戶體驗和擴大市場份額等營運重點方面取得進一步進展，並致力於與股東分享我們的成功。

With that, I will turn it over to Sean. Thank you.

這樣，我就把它交給肖恩。謝謝。

Thank you, Sandy and Ian. For the Q&A session, you're welcome to ask questions in Chinese and English and our management will answer your question in the language you ask. We'll provide English translation when necessary for convenience purpose only. In the case of any discrepancy, please refer to our management statement in the original language.

謝謝桑迪和伊恩。在問答環節，歡迎您用中文和英文提問，我們的管理階層將以您提出的語言回答您的問題。僅為方便起見，我們將在必要時提供英文翻譯。如有任何差異，請參閱我們的管理階層聲明原文。

Okay, operator, we can open the call for Q&A session.

好的，接線生，我們可以開始問答環節了。

(Operator Instructions) Your first question comes from Ronald Keung with Goldman Sachs.

（操作員說明）您的第一個問題來自高盛的 Ronald Keung。

[Interpreted] Sandy, Ian and Sean, I have 2 questions. One is that JD and other e-commerce companies has focused on defending market share, reigniting growth as kind of key focuses in this increasingly zero sum e-commerce market. So how will management strike the balance between growth and absolute profit or growing profits in the year ahead? And with that -- with the profits and kind of cash flow generation, then we've seen the regular dividend of USD 1.2 billion in 2023, we've seen the free cash flow for the business was nearly close to USD 6 billion in 2023. So do we see room to further increase total shareholder return, given the strong free cash flow of the business in the years ahead?

[翻譯]桑迪、伊恩和肖恩，我有兩個問題。一是京東和其他電子商務公司專注於捍衛市場份額，重新激發成長，作為這個日益零和的電子商務市場的關鍵焦點。那麼，管理層將如何在未來一年的成長和絕對利潤或利潤成長之間取得平衡？有了這樣的利潤和現金流的產生，我們就看到了 2023 年 12 億美元的定期股息，我們看到該業務的自由現金流在 2023 年幾乎接近 60 億美元那麼，考慮到未來幾年該業務強勁的自由現金流，我們是否認為股東總回報還有進一步提升的空間？

[Interpreted] Thank you, Ronald. I will answer your first question and Ian will answer your second question. So the questions on the growth and versus profits have always been a good question. And in 2023, while firmly focusing on the health of our business, we made many efforts and took actions to further enhance our user experience, low price mindshare and platform ecosystem. So, for example, last year, we stepped up our efforts on user shopping experience and services by introducing or expanding a series of differentiated shopping and customer services such as our price guarantee service, a free doorstep pickup service for returns and exchanges, with service expanding from our 1P to our 3P businesses, and also a refund with that, return services and more. We've seen an accelerated growth in quarterly shopping users in Q4, especially in the number of new users, and we expect the growth trend to continue in Q1. At the same time, we don't see any major drop of our profits, which also reflects our efforts on maintaining a balance between growth in revenues and profits. And also, we continue to optimize procurement costs and expand our range of low-cost products. In addition, we have introduced a series of measures including the CNY 10 billion discount program, the [CNY 99] items with free shipping channel and a lower order value threshold for free shipping. Our goal is to provide high-quality products at affordable prices to increase user purchase frequency. We believe that continuous improvement of user experience will promote healthy user growth and purchase frequency, which in turn will help us to increase business scale and market share.

[翻譯]謝謝你，羅納德。我將回答你的第一個問題，伊恩將回答你的第二個問題。因此，關於成長和利潤的問題一直是一個很好的問題。 2023年，我們在堅定關注業務健康發展的同時，做出了許多努力並採取了行動，進一步提升我們的用戶體驗、低價理念和平台生態系統。所以，例如去年，我們加大了用戶購物體驗和服務的力度，推出或拓展了一系列差異化的購物和客戶服務，例如保價服務、退換貨免費上門取貨服務、服務保障等一系列差異化的購物和客戶服務。從我們的1P業務擴展到我們的3P業務，還有退款、退貨服務等等。我們看到第四季購物用戶的加速成長，特別是新用戶數量的成長，我們預計第一季將繼續這種成長趨勢。同時，我們的利潤並沒有大幅下降，這也反映了我們在維持收入和利潤成長之間的平衡方面所做的努力。此外，我們持續優化採購成本並擴大低成本產品範圍。此外，我們也推出了百億折扣計畫、【99元】商品免運費通道、降低訂單金額免運費門檻等一系列措施。我們的目標是以實惠的價格提供高品質的產品，以提高用戶的購買頻率。我們相信，用戶體驗的持續改善將促進用戶健康成長和購買頻率，進而幫助我們增加業務規模和市場份額。

Interpreted So from a platform ecosystem perspective, we have seen more and more new merchants are joining JDs marketplace and the number of active merchants whose business is growing on our platform is increasing at an accelerated rate. Their participation has greatly improved the diversity of product offerings on the platform, leading to accelerated growth in both the number of users and orders on our marketplace. So in 2024, we will prioritize improving user experience, price competitiveness and platform ecosystem. We will make unswerving efforts to execute on these key areas with confidence that we will continue to gain market share.

解讀 所以從平台生態系統的角度來看，我們看到越來越多的新商家加入京東市場，並且在我們平台上業務成長的活躍商家數量正在加速成長。他們的參與極大地提高了平台上產品供應的多樣性，從而導致我們市場上的用戶數量和訂單數量加速成長。所以2024年我們會優先提升使用者體驗、價格競爭力和平台生態。我們將堅定不移地在這些關鍵領域進行努力，並有信心繼續獲得市場份額。

Interpreted So here I want to reemphasize that our business model decides that business efficiency comes from enhancing business scale and technological development. So with these enhancements, we receive increased revenue that we can invest in enhancing user experience. This in turn leads to increased user engagement, shopping frequency and user growth, ultimately resulting in business scale growth. So this creates a sustainable and virtuous cycle, although it may not have a significant impact on profits. So this is the point we constantly communicate with our [directors] and this is the logic of our business model. So the profits are a natural result of our expanding market position and value creation for our users. So during this course and cycle, our management team will strive to maintain a balance and a good pace between investments and growth, while creating good returns for our shareholders.

解讀 所以這裡我想再次強調，我們的商業模式決定了商業效率來自於業務規模的提升和技術的發展。因此，透過這些增強功能，我們獲得了更多的收入，可以投資於增強用戶體驗。這反過來又會導致用戶參與度、購物頻率和用戶成長的增加，最終導致業務規模的成長。因此，這創造了一個可持續的良性循環，儘管它可能不會對利潤產生重大影響。所以這是我們不斷與我們的[董事]溝通的一點，這也是我們商業模式的邏輯。因此，利潤是我們擴大市場地位和為用戶創造價值的自然結果。所以在這個過程和週期中，我們的管理團隊將努力在投資和成長之間保持平衡和良好的節奏，同時為股東創造良好的回報。

[Interpreted] This is Ian. Thank you, Ronald, for asking about shareholder returns. So I'd like to take this opportunity to update investors on our current thoughts and moves. Firstly, JD focuses on the long term healthy development of our business, aiming for healthy scale expansion and stable growth in profits and cash flow. On top of this, we're committed to long term shareholder return and will continue to give back to our shareholders in various ways. Our balance sheet is strong and we believe that maintaining a good return to shareholders and continuous investment in our business are not contradictory.

[翻譯] 這是伊恩。羅納德，謝謝您詢問股東回報的問題。因此，我想藉此機會向投資者介紹我們當前的想法和舉措。首先，京東著眼於業務的長期健康發展，目標是規模健康擴張、利潤和現金流穩定成長。除此之外，我們致力於長期股東回報，並將持續以各種方式回饋股東。我們的資產負債表穩健，我們相信為股東保持良好的回報和對我們業務的持續投資並不矛盾。

Interpreted We have just announced an annual cash dividend of USD 1.2 billion. This is thanks to last year's rapid earnings growth, which yielded solid return for our shareholders. So over the past 3 years, we have returned a total of USD 4.2 billion in dividend, and we plan to continue pay annual dividend going forward, sharing the company's (inaudible) with our shareholders. Also, our Board of Directors have approved a new repurchase program to buy back to USD 3 billion worth of company shares over the next 3 years. We will firmly execute the buyback and communicate with investors regularly. We believe that investors will recognize the company's tangible efforts to share its value with shareholders.

解讀 我們剛剛宣布年度現金股利為 12 億美元。這得益於去年獲利的快速成長，為我們的股東帶來了豐厚的回報。因此，在過去的三年裡，我們總共返還了 42 億美元的股息，並且我們計劃繼續支付未來的年度股息，與我們的股東分享公司的（聽不清楚）。此外，我們的董事會還批准了一項新的回購計劃，將在未來 3 年內回購價值 30 億美元的公司股票。我們將堅決執行回購工作，並定期與投資人溝通。我們相信投資者會認可公司為與股東分享價值所做的實際努力。

Your next question comes from Kenneth Fong with UBS.

您的下一個問題來自瑞銀集團的 Kenneth Fong。

[Interpreted] My first question is on the platform ecosystem. We have been investing to build our 3P ecosystem. Judging from the total and active merchants, we have received very solid results. Can management share with us under what circumstances we will start to accelerate monetization of the 3P merchants? And also for 2024, any change and update for our 3P strategy? And my second question is for overseas. We see a lot of e-commerce platform investing overseas. Can management share with us your thoughts on our overseas expansion?

[解讀]我的第一個問題是關於平台生態系統的。我們一直在投資建立我們的3P生態系統。從商家總數和活躍商家數量來看，我們取得了非常紮實的成果。管理階層能否跟我們分享一下什麼情況下我們會開始加速3P商家的變現？ 2024 年，我們的 3P 策略有什麼變化和更新嗎？我的第二個問題是針對海外的。我們看到很多電商平台在海外投資。管理階層能否與我們分享您對我們海外擴張的想法？

[Interpreted] Thank you, [Kenny]. To your first question about platform ecosystem, as I have previously mentioned, JDs platform ecosystem includes both our self-operated and third-party models. The tools are complementary to each other and jointly contribute to create good user experience. Our Net Promoter Score has improved substantially in Q4 for both 1P and 3P. We have been investing in platform ecosystem as a long term strategic direction, so there is still a lot of room for improvement in our 3P business development. Our first step is to increase the number of merchants and their product offerings. We need to attract more merchants and help them succeed on the platform in order to enrich the platform's product offerings for our shoppers and foster positive business competition across the platform. Over the past year, we have increased our efforts to recruit merchants, simplified their onboarding processes, and provided more support and fee reductions for small and medium-sized merchants. To date, the number of effective merchants on our platform is close to 1 million, reaching the goals we set for ourselves at the beginning of last year. The number of active merchants have accelerated. More and more new merchants are finding effective ways to do business on our platform and continue to grow.

[解釋]謝謝你，[肯尼]。關於你的第一個問題，關於平台生態，正如我之前提到的，京東的平台生態包括我們的自營模式和第三方模式。這些工具相輔相成，共同致力於創造良好的使用者體驗。我們的 1P 和 3P 淨推薦值在第四季度有了顯著提高。我們一直將投資平台生態系統作為長期策略方向，因此我們的3P業務發展仍有很大的改善空間。我們的第一步是增加商家數量及其產品供應。我們需要吸引更多的商家並幫助他們在平台上取得成功，以豐富平台為購物者提供的產品，並促進整個平台的積極商業競爭。一年來，我們加大了招商力度，簡化進駐流程，增加對中小型商家的支援和費用減免。截至目前，我們平台有效商家數量已接近100萬，達到了我們去年初所訂定的目標。活躍商家數加速成長。越來越多的新商家正在尋找有效的方式在我們的平台上開展業務並不斷發展。

Interpreted At the same time, we've received positive feedback from users. The number of our shopping users and order volume on 3P platform continues to grow with users' NPS for 3P rising at the same time. Both our 3P and overall GMV have gradually entered a trajectory of healthy growth.

同時，我們也收到了用戶的正面回饋。 3P平台的購物用戶數和訂單量持續成長，用戶對3P的NPS也隨之上升。我們的3P和整體GMV都逐漸進入健康成長的軌道。

Interpreted Building JDs unique platform ecosystem is a long term project. We're still in the early stages. Our focus is not on a fast monetization of 3P in the short term. Instead, our priority in 2024 will be to attract more merchants, especially the small and medium-sized merchants in the industrial belt, to enrich our product offerings, and at the same time, we will continue to foster merchants growth, the platform's governance and operating tool. We will also further optimize the traffic distribution mechanism to create a clear growth path and a fair business environment for merchants and to provide better user experience on 3P platform promoting a prosperous growth of both our 1P and 3P businesses.

解讀 建構京東獨特的平台生態系統是一項長期工程。我們仍處於早期階段。我們的重點不是短期內 3P 的快速貨幣化。相反，我們2024年的首要任務是吸引更多的商戶，特別是產業帶的中小商戶，豐富我們的產品種類，同時我們將繼續促進商戶的成長、平台的治理和發展。操作工具。我們也將進一步優化流量分配機制，為商家創造清晰的成長路徑和公平的營商環境，為3P平台提供更好的使用者體驗，促進1P和3P業務的繁榮發展。

Interpreted (technical difficulty) platform ecosystem offering a wide range of high-quality goods and improving user products matching accuracy, we can attract more users and meet diverse needs. This will create a virtuous cycle that help merchants succeed and as a natural result, 3P monetization will increase. Such virtuous cycle will form one of the key drivers of our long term revenue and profit growth. We're at a good shape now and not in a rush to increase monetization in the short term, but the trend of steady improvement remains unchanged in the long run.

解釋型（技術難度）平台生態系統提供豐富的優質商品，提升用戶商品匹配準確度，吸引更多用戶，滿足多元需求。這將創造一個良性循環，幫助商家成功，自然而然地，3P 貨幣化將會增加。這種良性循環將成為我們長期收入和利潤成長的關鍵驅動力之一。我們現在的狀態很好，短期內不急於增加變現，但長期來看穩定改善的趨勢並沒有改變。

Interpreted In addition, marketplace and marketing revenues experienced short term fluctuation in Q4. This was primarily due to our efforts to develop the platform ecosystem. We launched a set of supporting initiatives, including commission-free offerings for new merchants and proactive commission reductions in certain categories and programs. These initiatives resulted in a decline in commission revenues. Additionally, advertising revenue growth slowed slightly in Q4 due to the late start of the Chinese New Year event promotion compared with the previous year and a high base of the previous year driven by people's stockpiling behavior in December. With the ease of seasonality factors in Q1, we expect that advertising revenues will return to healthy growth. And overall looking at 2024, as user and traffic improve, we expect growth of our ad revenues to gradually accelerate.

解讀 此外，第四季市場和行銷收入經歷了短期波動。這主要歸功於我們開發平台生態系統的努力。我們推出了一系列支援舉措，包括為新商家提供免佣金服務，以及在某些類別和計劃中主動降低佣金。這些措施導致佣金收入下降。此外，由於春節活動促銷啟動較上年較晚，以及12月份人們的囤貨行為帶動上年基數較高，第四季廣告收入成長略有放緩。隨著第一季季節性因素的緩解，我們預計廣告收入將恢復健康成長。整體來看，2024 年，隨著用戶和流量的改善，我們預期廣告收入的成長將逐漸加速。

[Interpreted] Hi Kenny, let me share some thoughts regarding our overseas business strategies. So first of all, we are always on the outlook for overseas opportunities and take [pilot] steps to establish our presence. Given that our business model and advantages are distinct from other platforms, our approach to global expansion will likewise be different. We aim to leverage our competitive strengths to establish our international presence. As you know very well, JDs business model is built on supply chain capabilities and centered around user experience. Supply chain is the cornerstone of our international business development and we will continue to focus on this to expand our capabilities on the global market.

[解讀]嗨，Kenny，讓我分享一些關於我們海外業務策略的想法。因此，首先，我們始終關注海外機遇，並採取[試點]措施來建立我們的影響力。鑑於我們的商業模式和優勢與其他平台不同，我們的全球擴張方式也將有所不同。我們的目標是利用我們的競爭優勢來建立我們的國際影響力。眾所周知，京東的商業模式建立在供應鏈能力之上，以使用者體驗為中心。供應鏈是我們國際業務發展的基石，我們將繼續聚焦於此，擴大我們在全球市場的能力。

Interpreted To share some examples, for JD Retail, our outbound e-commerce platform is actively improving shopping experience by offering high-quality products and services to global users. In the meantime, it also assists Chinese companies in expanding their business and brands to overseas markets. We're still in the early stage for all these efforts. And at the same time, we're increasing our efforts in inbound cross-border business. JD Worldwide has established 3 direct procurement centers worldwide so far to improve cross-border supply chain efficiency, offering consumers in China a wider range of imported products at lower costs while ensuring product safety.

解讀 舉幾個例子，對於京東零售來說，我們的出境電商平台正積極改善購物體驗，為全球用戶提供高品質的產品和服務。同時，也協助中國企業將業務和品牌拓展至海外市場。所有這些努力仍處於早期階段。同時，我們也在加大入境跨國業務的力道。目前，京東全球購已在全球建立了3個直採中心，以提高跨境供應鏈效率，在確保產品安全的同時，以更低的成本為中國消費者提供更廣泛的進口產品。

Interpreted So for JD Logistics, it has established a strong overseas supply chain, starting from warehouse and now expanding to overall supply chain services. Currently, it operates nearly 90 [bonded] overseas and direct mail warehouses managing a floor area of almost 900,000 square meters. This enables JD Logistics to serve a large number of overseas customers as well as Chinese brands expanding abroad. Also, JD Property is expanding its business in Southeast Asia and Europe with a focus on markets such as Vietnam, Indonesia, Singapore, U.K. and the Netherlands. Its customers include international logistics and FMCG giants, as well as emerging Chinese companies going overseas. As I mentioned, both JD Logistics and JD Property, they are more enterprise service-facing. So for the -- for these type of customers, they don't have a very strong impression or experience so far.

如此解讀，對於京東物流來說，它已經建立了強大的海外供應鏈，從倉儲開始，現在擴展到整體供應鏈服務。目前，經營海外保稅及直郵倉庫近90個，管理面積近90萬平方公尺。這使得京東物流能夠服務大量的海外客戶以及進軍海外的中國品牌。此外，京東地產正在拓展東南亞和歐洲的業務，並專注於越南、印尼、新加坡、英國和荷蘭等市場。其客戶包括國際物流和快消品巨頭，以及走出去的新興中國企業。正如我剛才提到的，無論是京東物流還是京東地產，它們都更為企業服務。因此，對於這些類型的客戶來說，他們到目前為止還沒有非常強烈的印像或體驗。

Interpreted So we also introduced an omnichannel retail platform in Europe called Ochama. This business leverages JDs advanced automated logistics technologies and global supply chain capabilities to provide high-quality shopping experience for customers across 24 European countries. Not only does Ochama serve European local brands and merchants, it also provides a dependable path for Chinese brands and merchants to expand their business abroad. But certainly, Ochama is still our project in the incubation stage. And next, we will continue to focus on these areas, the business layout that we are good at with the strength to expand our global capabilities.

因此，我們也在歐洲推出了一個名為 Ochama 的全通路零售平台。該業務利用京東先進的自動化物流技術和全球供應鏈能力，為歐洲24個國家的客戶提供高品質的購物體驗。 Ochama不僅服務歐洲本土品牌和商家，也為中國品牌和商家拓展海外業務提供了可靠的路徑。但可以肯定的是，Ochama 仍然是我們處於孵化階段的計畫。接下來我們會繼續圍繞這些領域、我們擅長的業務佈局，並且有實力拓展我們的全球能力。

Your next question comes from Alicia Yap with Citigroup.

您的下一個問題來自花旗集團的 Alicia Yap。

[Interpreted] In light of the shift of the consumption preference and also the rational spending behavior amid this macro sentiment, will JD need to or plan to adjust any specific strategy to fulfill the demand shift? If so, what could be the change and growth initiative? What is management expectation for China overall retail sales growth rate this year? How much higher can JD outperform the overall retail sales growth by? Will JD reinvest to aggressively growing new user in lower tier city? Will that mostly come from additional subsidy or through the improvement of product offering? Do you have a target KPI set for the numbers of new customer that you plan to acquire this year?

【解讀】針對消費偏好的轉變以及宏觀情緒下的理性消費行為，京東是否需要或計劃調整具體策略來滿足需求轉變？如果是這樣，變革和成長舉措可能是什麼？管理階層對今年中國整體零售額成長率有何預期？京東能跑贏整體零售額成長多少？京東是否會再投資低線城市積極成長的新用戶？這主要來自額外補貼還是產品供應的改進？您是否為今年計劃獲取的新客戶數量設定了目標 KPI？

[Interpreted] Thank you, Alicia. As you said, we've seen consumers have become more rational in spending. They pay attention to both the quality and cost effectiveness of the products. They really value the good products with a reasonable price. At the same time, they do care about shopping experience. So last year, we took proactive steps in response to consumer trends. While striving to provide users with better shopping experience and differentiated services, we expanded our platform ecosystem and low-cost mindshare. We also studied the latest consumption trends and insights, and we worked closely with brands and merchants to jointly develop new products that better meet new user demand. So overall, we see our performance so far has met our expectations. And in 2024, we will stick to our current strategies and firmly focus on execution and optimization without making major adjustments.

[翻譯]謝謝你，艾莉西亞。正如你所說，我們看到消費者的消費變得更理性。他們注重產品的品質和成本效益。他們非常重視價格合理的優質產品。同時，他們也很注重購物體驗。因此，去年我們採取了積極措施來應對消費趨勢。在努力為用戶提供更好的購物體驗和差異化服務的同時，我們擴大了平台生態系統和低成本思維。我們也研究最新的消費趨勢和洞察，與品牌商和商家密切合作，共同開發更好滿足新用戶需求的新產品。總的來說，我們認為迄今為止的表現達到了我們的預期。而2024年，我們會堅持現有的策略，堅定不移地專注於執行和優化，不會做大的調整。

Interpreted We will continuously improve user experience and services and strengthen our core competitiveness to further underpin users mindshare towards our fast delivery and high-quality reputation. At the same time, we will also optimize procurement costs and enrich our low-priced product offerings and to let people to better feel our price competitiveness. And on the side of product diversity, we will continue to expand our merchants base and also improve the richness of the low-priced products of our platform.

我們將持續改善用戶體驗和服務，增強我們的核心競爭力，進一步鞏固用戶對我們快速交付和高品質聲譽的認可。同時，我們也會優化採購成本，豐富我們的低價產品，讓人們更能感受到我們的價格競爭力。而在產品多樣性方面，我們將持續擴大我們的商家基礎，同時也提高我們平台低價產品的豐富度。

Interpreted So in 2024, we've seen there will be a number of economic stimulus plans and consumption promotion policies coming into place, including the encouragement of the trading consumptions, et cetera. So we are seeing this is a healthy recovery trend of the overall economy and consumptions and this will also help us -- help some of our advantageous categories. So overall, we are optimistic for this year's overall retail sales and we're confident that we will maintain a faster growth rate than that and continue to gain market share.

解讀 那麼2024年，我們看到會有很多經濟刺激計畫和消費促進政策出台，包括鼓勵貿易性消費等等。所以我們看到這是整體經濟和消費的健康復甦趨勢，這也將幫助我們——幫助我們的一些優勢類別。所以整體來說，我們對今年整體零售額持樂觀態度，有信心保持較快的成長速度，繼續獲得市場份額。

[Interpreted] So for the second question on user growth, we will actively drive up user growth and their purchase frequency. Throughout the past year and this year, we have prioritized improving user experience to achieve high-quality growth. We've continued to improve the diversity of product offerings and promote low-price strategy and expand product pool for users from lower-tier markets to better meet their shopping preferences. So this helped us to enhance user products matching efficiency and user retention rate. Additionally, we continuously enhance services, safeguarding users shopping experience during and after sales, like the free doorstep pickup services for returns and a lower threshold order value for free shipping, et cetera. We believe that subsidizing and other marketing activities are all tools for user operation. These measures can serve some special purposes in certain periods of time and should only be used in a targeted and disciplined way.

【解讀】那麼第二個問題關於用戶成長，我們會積極推動用戶成長和購買頻次。過去一年和今年，我們把提升用戶體驗作為首要任務，實現高品質成長。我們持續提升產品多樣性，推行低價策略，擴大低線市場用戶的產品庫，更能滿足他們的購物偏好。所以這有助於我們提高用戶產品匹配效率和用戶保留率。此外，我們不斷加強服務，保障用戶售中、售後的購物體驗，如退貨免費上門取貨服務、較低訂單金額免運費等。我們認為補貼等行銷活動都是用戶經營的工具。這些措施在一定時期內有某些特殊目的，應有針對性、有紀律地使用。

Interpreted We saw healthy growth in the number of users in Q4, including new users experienced a strong growth while existing users maintained steady growth. Users from lower-tier markets also achieved an accelerated growth. User purchase frequency showed a healthy growth, particularly among existing users. Furthermore, user satisfaction rate has improved with NPS of both self-operated and marketplace achieving an increase year-on-year.

解讀 第四季用戶數量健康成長，其中新用戶成長強勁，存量用戶維持穩定成長。來自低線市場的用戶也實現了加速成長。用戶購買頻率呈現健康成長，尤其是現有用戶。此外，用戶滿意度提升，自營和平台淨推薦值均較去年同期成長。

Interpreted And so far in Q1, we've seen user growth has maintained (inaudible) momentum. This year, JD was selected to be the exclusive interactive partner for China Media Group's Spring Festival Gala. During the show, we offered a variety of gifts to viewers, home and abroad, reaching a wide range of new users. On outlook of the whole year, we're confident in user growth.

解釋 到目前為止，第一季度，我們看到用戶成長保持了（聽不清楚）勢頭。今年，京東被選為中央廣播電視總台春晚獨家互動合作夥伴。展會期間，我們向國內外觀眾贈送了豐富多彩的禮品，並覆蓋了廣泛的新用戶。展望全年，我們對用戶成長充滿信心。

Thomas Chong with Jefferies.

湯瑪斯‧莊與傑弗里斯。

[Interpreted] My first question is about the consumer sentiment in 2024 and how should we think about the trend for different product categories? And my second question is related to our thoughts about the competitive landscape in 2024.

[解讀]我的第一個問題是關於2024年的消費者情緒，我們該如何看待不同產品類別的趨勢？我的第二個問題與我們對2024年競爭格局的看法有關。

[Interpreted] Thank you, Thomas, for your question. So by 2023, we have seen the society and economy had returned to normal. Although the consumption market showed a recovery trend, people's spending ability and confidence still needed a boost. As we entered 2024, in the current 2 months, as we can observe, the country's national economy is on track for recovery. With the expected effects of the [macro] stimulus plans and consumption promotion policies, we believe the momentum of consumption recovery and expansion will be further consolidated or strengthened.

[解釋] 謝謝托馬斯的提問。所以到2023年，我們看到社會經濟已經恢復正常。儘管消費市場呈現復甦態勢，但人們的消費能力與信心仍需提振。進入2024年，從目前的兩個月來看，我國國民經濟正步入復甦軌道。隨著宏觀刺激計劃和消費促進政策的預期效果，我們認為消費復甦和擴張的動力將進一步鞏固或加強。

Interpreted From JDs perspective, in 2024, we maintain a confidence to outperform the overall -- the broader market. And taking a longer term view, we believe that most people's desire for a better life remains unchanged. Our business model aims to provide better services and quality products with greater value for money, so -- which has made us unique advantages to satisfy diverse users' needs in various shopping scenarios.

解讀 從京東的角度來看，2024年我們有信心跑贏大盤。從更長遠的角度來看，我們相信大多數人對美好生活的嚮往沒有改變。我們的商業模式旨在提供更好的服務和更高性價比的優質產品，因此——這使我們在滿足不同用戶在各種購物場景的需求方面具有獨特的優勢。

Interpreted So from the industry perspective, as we have seen that the proportion of online retail sales of physical goods continue to (technical difficulty). For some industries, they have enjoyed a high penetration rate, whereas for other industries such as supermarkets, sports, furniture and home, automotive and other industries, their online sales penetration rates still have plenty of room to improve.

解讀 那麼從產業角度來說，正如我們所看到的，實體商品網路零售額的比重持續上升（技術難度）。對於某些行業來說，他們的滲透率已經很高，而對於其他行業，如超市、體育、家具家居、汽車等行業來說，他們的在線銷售滲透率還有很大的提升空間。

Interpreted And for the category perspective, in 2023, we maintained -- we continued to be the market leader in electronics category and delivered a faster growth rate than the overall market in this area even though this industry is facing challenges last year. So overall, we are confident to maintain faster than industry growth rate in these categories especially as you see the government is promoting the trading of consumer goods and stimulate the consumption of electronics and other products. So we're confident to maintain a strong growth in this category.

從品類角度來看，2023年，我們仍然是電子品類的市場領導者，儘管去年該產業面臨挑戰，但我們的成長率高於該領域的整體市場。因此，總的來說，我們有信心在這些類別中保持高於行業的成長速度，特別是當你看到政府正在促進消費品貿易並刺激電子產品和其他產品的消費時。因此，我們有信心維持這一類別的強勁成長。

Interpreted And the competition in the supermarket category is expected to intensify in this year with various players adopting different strategies. JDs supermarket business has undergone some adjustments in the past year. These include a focus on core businesses, improvements in supply chain capabilities and enhanced fulfillment efficiency through warehouse network reforms. And these strategies are gradually coming to fruition and there's been a positive trend of growth recovery for supermarket category.

解讀 今年超市品類的競爭預計將更加激烈，各商家採取不同的策略。京東超市業務在過去的一年裡經歷了一些調整。其中包括專注於核心業務、改善供應鏈能力以及透過倉庫網路改革提高履行效率。而這些策略正逐步取得成效，超市品類出現了成長復甦的正面趨勢。

Interpreted And on the fashion and home segment, this is more heavily depend on the development of our third-party merchants and due to our unique business models, the way we foster these 2 categories will be with a different approach. So, so far we have seen our open ecosystem strategy has yielded some initial results and users are becoming more and more aware of JD Fashion and JD Home. We're confident that we will continue to experience healthy growth for these categories -- these 2 categories in 2024.

解讀：而在時尚和家居領域，這更取決於我們第三方商家的發展，而且由於我們獨特的商業模式，我們對這兩個品類的培育方式也會有所不同。所以，到目前為止我們看到我們的開放生態策略已經取得了一些初步成果，使用者對京東時尚和京東家居的認知度也越來越高。我們相信，到 2024 年，這兩個類別將繼續實現健康成長。

Interpreted So for the question about industrial competition, which is the internal question here, so we believe that China's retail consumer market is vast and various platforms and business models will coexist and as we see ourselves at JD, it's a retailer and then this market is quite dispersed. We think the key for a long term success here is to satisfy user experience and create win-win collaborations with all kinds of our partners. So in that part, we will stick to our strategies and continue to gain market shares. And we're optimistic that all the changes we made in the past year will gradually come to show some effects and fruition. And also last year, our different JD teams have came up with innovative tactics and techniques to improve conversion rates and reduce operating costs. Therefore, we think by firmly executing our established strategies, so we are on the right track to deliver results this year. And at JD.com, we position ourselves as a supply chain based company so we have these strengths and the capabilities to withstand and navigate through different economic cycles and to deliver good results this year.

那麼對於產業競爭的問題，這是這裡的內部問題，所以我們認為中國的零售消費市場是廣闊的，各種平台和商業模式會並存，就像我們在京東看到的那樣，它是一個零售商，那麼這個市場是相當分散。我們認為，長期成功的關鍵在於滿足使用者體驗並與各類合作夥伴創造雙贏的合作。所以在這方面，我們會堅持我們的策略，繼續獲得市場份額。我們樂觀地認為，過去一年我們所做的所有改變將逐漸顯現出一些效果和成果。同樣在去年，我們不同的京東團隊提出了創新的策略和技術來提高轉換率並降低營運成本。因此，我們認為，透過堅定執行既定策略，今年我們將走在正確的軌道上取得成果。在京東，我們將自己定位為一家基於供應鏈的公司，因此我們擁有這些優勢和能力來承受和駕馭不同的經濟週期，並在今年取得良好的表現。

We are now approaching the end of the conference call. I will now turn the call over to JDs Sean Zhang for closing remarks.

我們現在電話會議即將結束。我現在將把電話轉給法學博士 Sean 張，讓其致閉幕詞。

Thank you. Thank you everyone for joining us today on the call and for your questions. If you have further questions, please contact me [and IR team]. We appreciate your interest in JD.com and look forward to talking with you again next quarter. Thank you.

謝謝。感謝大家今天參加我們的電話會議並提出問題。如果您還有其他問題，請聯絡我[和 IR 團隊]。我們感謝您對京東的興趣，並期待下季再次與您交談。謝謝。

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

感謝您參加今天的會議。演示到此結束。您現在可以斷開連線。

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

[本文字記錄中標記為[已翻譯]的部分是由現場通話中的口譯員朗讀的。]