京東 (JD) 2024 Q1 法說會逐字稿

Hello, and thank you for standing by for JD.com's First Quarter 2021 Earnings Conference Call. (Operator Instructions) Today's conference is being recorded. (Operator Instructions)

您好，感謝您出席京東 2021 年第一季財報電話會議。 （操作員指示）今天的會議正在錄音。 （操作員說明）

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

現在我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's First Quarter 2024 Earnings Conference Call. For today's call, CEO of JD.com, Ms. Sandy Xu will share her opening remarks; and our CFO, Ms. Ian Shan, will discuss the financial results. Then we'll open the call to questions from analysts.

謝謝。今天是個好日子。歡迎參加京東 2024 年第一季財報電話會議。在今天的電話會議上，京東執行長徐珊女士將致開幕詞；我們的財務長單女士將討論財務表現。然後我們將開始接受分析師提問。

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. Please refer to our latest safe harbor statement in the earnings press release on our website, which applies to this call.

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案僅反映管理層截至今天的觀點，並將包括前瞻性陳述。請參閱我們網站上的收益新聞稿中適用於本次電話會議的最新安全港聲明。

We'll 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.

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. Sandy, please.

現在讓我將電話轉給我們的執行長桑迪。桑迪，請。

Thanks, Sean. Hello, everyone, and thanks for joining us today to discuss our Q1 2024 results. We kicked off the year with encouraging momentum in Q1. Our top line growth accelerated and market share expanded while our bottom line trended healthily in the quarter. More importantly, our users showed strong enthusiasm for our further improved shopping experience and differentiated services, and our Net Promoter Score, the NPS, notably improved year-on-year.

謝謝，肖恩。大家好，感謝您今天加入我們討論 2024 年第一季的業績。我們在第一季以令人鼓舞的勢頭開啟了新的一年。我們的營收成長加速，市場佔有率擴大，而本季我們的獲利趨勢健康。更重要的是，使用者對我們進一步改善的購物體驗和差異化服務表現出了強烈的熱情，我們的淨推薦值NPS年比顯著提高。

This is a result driven by our strong execution amidst evolving industry dynamics. Our teams stayed focused on our own strengths, strategies and pace of development and continued to drive steady progress across all our strategic initiatives in improving user experience, price competitiveness and platform ecosystems.

這是我們在不斷變化的行業動態中強有力的執行力推動的結果。我們的團隊始終專注於自身的優勢、策略和發展速度，並持續推動我們在改善用戶體驗、價格競爭力和平台生態系統方面的所有策略舉措的穩步進展。

Our strong execution is reflected in our improved category performance in Q1. To start with, our general merchandise had a great quarter as our supermarket category returned to healthy growth while fashion and home goods maintained robust momentum. Particularly, the bounce back of our supermarket category is a great example of how we are able to drive strong business performance by focusing on the key aspects of user experience, namely, product quality and selection, price competitiveness and service quality.

我們強大的執行力反映在我們第一季的品類業績改善。首先，我們的百貨商品季度表現出色，超市類別恢復健康成長，而時尚和家居用品保持強勁勢頭。特別是，我們超市類別的反彈是一個很好的例子，說明我們如何透過專注於使用者體驗的關鍵面向（即產品品質和選擇、價格競爭力和服務品質）來推動強勁的業務績效。

After spending the past year on strengthening procurement capabilities and upgrading fulfillment network and operating efficiency, our supermarket category recorded double-digit GMV and revenue growth in Q1 with increased order volume and shopping frequency. We expect supermarket's momentum to continue throughout the rest of the year, and it will remain an important growth driver in the long run with massive TAM.

經過過去一年的加強採購能力、升級配送網路和營運效率，我們的超市品類在第一季實現了兩位數的 GMV 和營收成長，訂單量和購物頻率增加。我們預計超市的勢頭將在今年剩餘時間內持續下去，並且從長遠來看，憑藉巨大的 TAM 仍將是重要的成長動力。

Our electronics and home appliances category remained resilient in Q1. We are confident in our market-leading position and proven supply chain capabilities in this category, and we will continue to focus on our own strategies to scale the business and profits with differentiated value-add services, such as one-stop trade-in services, new product launches, more competitive price offerings and a more dynamic platform ecosystem.

我們的電子和家用電器類別在第一季保持彈性。我們對該類別的市場領先地位和成熟的供應鏈能力充滿信心，我們將繼續專注於自己的策略，透過差異化的增值服務（例如一站式以舊換新服務）擴大業務和利潤、新產品發布、更具競爭力的價格以及更具活力的平台生態系統。

Now let me share some operating highlights we achieved in Q1 in executing on our strategies.

現在讓我分享一下我們在第一季執行策略時取得的一些經營亮點。

First, user engagement. We are excited to see a series of positive signs in both our user base and user behavior in Q1. Our quarterly active customers delivered another robust growth year-on-year during the quarter, driven by growth across all user groups, including new users, existing users as well as our Plus numbers.

首先，用戶參與度。我們很高興看到第一季我們的用戶群和用戶行為出現一系列正面跡象。在所有用戶群組（包括新用戶、現有用戶以及我們的 Plus 用戶）成長的推動下，我們的季度活躍客戶在本季同比再次強勁成長。

As to user behavior, shopping frequency on our platform delivered a substantial double-digit year-on-year growth in Q1, more than offsetting the decrease in average order value as a result of our low price offerings. This led to a relatively stable ARPU in Q1 compared to the same period last year.

從用戶行為來看，第一季我們平台上的購物頻率比去年同期實現了兩位數的大幅成長，足以抵消低價產品導致的平均訂單價值的下降。這導致第一季的 ARPU 與去年同期相比相對穩定。

In addition, driven by our expanding user base and shopping frequency, our order volume continued to increase at a double-digit rate year-on-year in Q1, a pace we have seen for 3 consecutive quarters. This robust momentum with users makes us confident to say that our relentless focus on the user experience are paying off. We rolled out a number of user experience initiatives, and the team made solid progress in executing them. As such, our NPS continued to rise in Q1 on both 1P and 3P. We believe this is an important driver of our sustainable growth along the way.

此外，在用戶基礎和購物頻率不斷擴大的推動下，第一季訂單量同比繼續以兩位數的速度增長，這一增長速度已連續三個季度保持。這種強勁的用戶勢頭使我們有信心地說，我們對用戶體驗的不懈關注正在得到回報。我們推出了多項使用者體驗舉措，團隊在執行這些舉措方面取得了紮實的進展。因此，我們的 NPS 在第一季的 1P 和 3P 上均持續上升。我們相信這是我們一路走來永續成長的重要驅動力。

We are leveraging our core capabilities in supply chain to differentiate user experience on our platform. For example, the integrated trade-in services we provide in our electronics and home appliances category are at an industry-leading level. And we are further working on this to provide users hassle-free services, including coordinated delivery, installation of new devices and dismantling of used devices.

我們正在利用我們在供應鏈方面的核心能力來區分我們平台上的使用者體驗。例如，我們在電子和家電品類提供的綜合以舊換新服務處於行業領先水準。我們正在進一步努力，為用戶提供無憂服務，包括協調交付、新設備安裝和舊設備拆卸。

In addition, our supermarket category also made full use of its supply chain to roll out differentiated services, including direct shipment from suppliers to end users, (foreign language) and 24-hour fresh milk delivered to users since production, among others.

此外，超市品類也充分利用供應鏈優勢，推出差異化服務，包括從供應商直發到終端用戶（外文）、24小時鮮奶生產後送到用戶手中等。

Our service offerings are catching up on the 3P side as well. For example, our RMB 59 threshold for free shipping now also covers almost all of the 3P products on our platform. We also made progress to expand coverage of our free doorstep picking up for return service among 3P merchants. We are encouraged to see 3P user experience on our platform continue to improve, and our 3P NPS score trended upward in the quarter.

我們的服務產品在 3P 方面也正在迎頭趕上。例如我們59元的免運費門檻現在也涵蓋了我們平台上幾乎所有的3P產品。我們在擴大3P商家免費上門取貨退貨服務覆蓋範圍方面也取得進展。我們很高興地看到我們平台上的 3P 用戶體驗持續改善，我們的 3P NPS 分數在本季度呈上升趨勢。

Moving on to our low-price offerings. Our price NPS continued to increase in Q1, both sequentially and on a year-on-year basis, as our improved price competitiveness increasingly resonates with users. Meanwhile, growth of our user base in lower-tier cities accelerated in Q1, exceeding our growth rate in higher-tier cities. Order volumes and shopping frequency generated by users in lower-tier cities continued to record double-digit year-on-year growth in the quarter, faster than that of our total users. Moreover, growth of low-ticket-sized order volume continued to accelerate meaningfully in the quarter.

繼續我們的低價產品。隨著我們不斷提升的價格競爭力越來越引起用戶的共鳴，我們的價格 NPS 在第一季持續成長，無論是環比還是同比。同時，第一季我們在低線城市的用戶群成長加速，超過了我們在一線城市的成長速度。本季度，低線城市用戶的訂單量和購物頻率持續保持兩位數年成長，成長速度快於總用戶成長速度。此外，本季小額訂單量的成長持續顯著加速。

All this reflects our increased attractiveness to price-sensitive customers and our abilities to serve them effectively. With our 1P supply chain capabilities and enriched offerings of 3P, we are strongly positioned to pursue low price in a sustainable way. This is the essence of retail, the core of JV business model and the key competence that helps us stay ahead of price competition.

所有這些都反映出我們對價格敏感的客戶的吸引力不斷增強，以及我們為他們提供有效服務的能力。憑藉我們的1P供應鏈能力和豐富的3P產品，我們有能力以可持續的方式追求低價。這是零售的本質，也是合資商業模式的核心，也是我們在價格競爭中保持領先的關鍵能力。

Next, moving on to our platform ecosystem. We were encouraged to see our active merchant base continue to rapidly expand on our platform in Q1, driven by our effective supporting measures and optimized operating tools. Both our 3P user base and 3P order volume continued to grow at a faster pace in Q1 compared to previous quarters.

接下來，轉向我們的平台生態系統。在我們有效的支援措施和優化的營運工具的推動下，我們欣喜地看到第一季我們平台上的活躍商家繼續快速擴大。與前幾季相比，我們的 3P 用戶群和 3P 訂單量在第一季繼續以更快的速度成長。

Our marketplace and marketing revenues returned to a positive growth in Q1 as we navigated one-off impacts in the past quarter. This was primarily driven by the growth in our advertising revenues while commissions remained soft due to our strategy to prioritize ecosystem development over monetization at the current stage.

由於我們克服了上一季的一次性影響，我們的市場和行銷收入在第一季恢復了正成長。這主要是由我們的廣告收入成長所推動的，而由於我們現階段優先考慮生態系統開發而不是貨幣化的策略，佣金仍然疲軟。

I want to point out that the low 3P monetization rate at the moment does not reflect the true potential of our marketplace and marketing revenues, and we anticipate more upside going forward. That said, we maintain our strategic priority of building a vibrant and thriving platform ecosystem where both our 1P and 3P merchants are adequately incentivized to better serve users.

我想指出的是，目前較低的 3P 貨幣化率並不能反映我們市場和行銷收入的真正潛力，我們預計未來會有更多的上升空間。也就是說，我們的策略重點是建立一個充滿活力和繁榮的平台生態系統，讓我們的 1P 和 3P 商家得到充分的激勵，更好地為用戶服務。

On a separate note, 2024 marks the 10th anniversary of our listing on NASDAQ. Looking back on the past decade, our revenues have scaled up significantly by 16x from RMB 69 billion in 2013 prior to our listing to over RMB 1 trillion last year. Our non-GAAP net income attributable to ordinary shareholders has expanded by an even more impressive 157x from RMB 224 million to RMB 35 billion.

另外，2024 年是我們在納斯達克上市 10 週年。回顧過去十年，我們的營收從2013年上市前的690億元大幅成長到去年的1兆元以上，成長了16倍。我們的非 GAAP 歸屬於普通股股東的淨利潤從 2.24 億元增加到 350 億元人民幣，增長了 157 倍，令人印象深刻。

The total amount we returned to our shareholders through dividends and share buybacks has surpassed the total capital raised over the course of the past 10 years. And we have created full-time jobs for over 500,000 employees with social insurance and housing fund benefits. As of the end of 2023, a 13x increase compared to 10 years ago.

我們透過股利和股票回購返還股東的總額超過了過去10年籌集的資本總額。我們為超過50萬名員工創造了全職就業崗位，並為他們提供了社會保險和住房公積金福利。截至2023年底，比10年前成長了13倍。

We are proud of our achievements in the [past] as we created tremendous value to our users, employees, shareholders and for society as a whole. We have a clear vision to navigate the next decade with our ever-improving user experience, stronger price competitive (inaudible) and thriving platform ecosystem.

我們為過去所取得的成就感到自豪，因為我們為使用者、員工、股東和整個社會創造了巨大的價值。我們有一個清晰的願景，透過不斷改善的使用者體驗、更強的價格競爭力（聽不清楚）和蓬勃發展的平台生態系統來引領下一個十年。

To conclude, 2024 is marked with our consistent strategies and continued execution. And we are pleased to kick the year off with a quarter of accelerated growth and healthy profitability. As we focus on executing our strategies, we will further improve the user experience, which leads to stronger user mind share and user growth, thus helping to reinforce our market position and expand our market share. This will keep us on a sustainable path of healthy profit and cash flow that allow us to continue to execute and deliver for the rest of the year and the years to come.

總而言之，2024 年是我們策略一致、執行力持續的一年。我們很高興以一個季度的加速成長和健康的獲利能力來開啟新的一年。當我們專注於執行我們的策略時，我們將進一步改善用戶體驗，從而帶來更強的用戶心智份額和用戶成長，有助於鞏固我們的市場地位並擴大我們的市場份額。這將使我們走上健康利潤和現金流的可持續發展道路，使我們能夠在今年剩餘時間和未來幾年繼續執行和交付。

With that, I will 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. In Q1, we delivered a solid [performance] on both top line and bottom line. We also (inaudible) to return back to shareholders.

謝謝你，桑迪。大家好。在第一季度，我們在營收和利潤方面都表現出色。我們還（聽不清楚）回報股東。

Since the beginning of the year, we have repurchased a total of 98.3 million Class A ordinary shares, equivalent of 49.2 million ADS, for a total of USD 1.3 billion, amounting to around 3.1% of our ordinary shares outstanding as of December 31, 2023. We have also completed our USD 1.2 billion annual cash dividend payment in April 2024. These moves demonstrate our commitment to creating value for our shareholders through shareholder returns, and more importantly, through our sustainable business growth over the long term as we've done since our listing on NASDAQ in 2014.

自今年年初以來，我們總共回購了9,830 萬股A 類普通股，相當於4,920 萬股美國存託股，總金額為13 億美元，約佔截至2023 年12 月31 日已發行普通股的3.1 %我們也於 2024 年 4 月完成了 12 億美元的年度現金股利支付。在納斯達克上市以來。

With that, let me turn to our Q1 financial performance. Our net revenues grew by 7% year-on-year to RMB 260 billion in Q1. Breaking down the mix. Product revenues were up 7%. Within product revenues, our electronics and home appliances category was up 5% in the quarter, thanks to the resilience of mobile phones and home appliances, but it was offset by the softness of PC due to industry headwinds.

接下來，讓我談談我們第一季的財務表現。第一季我們的淨收入年增 7% 至 2,600 億元人民幣。打破混合。產品收入成長 7%。在產品收入中，由於手機和家用電器的彈性，我們的電子和家用電器類別本季度增長了 5%，但由於行業逆風導致 PC 疲軟，抵消了這一增長。

Our general merchandise category returned to a solid revenue growth year-on-year as supermarket categories rebounded to achieve double-digit revenue growth in the quarter. Other categories on general merchandise, such as fashion and home goods, also maintained strong momentum in the quarter.

我們的百貨品類營收年減穩健成長，超市品類反彈，本季實現兩位數營收成長。時裝和家居用品等其他日常商品類別在本季也保持強勁勢頭。

Service revenues grew by 9% year-on-year in Q1, primarily driven by logistics and other service revenues [which are up 14%] year-on-year in the quarter. Marketplace and marketing revenues returned to positive growth in Q1 as we (inaudible) 3P merchants and nurture our platform ecosystems. Our advertising revenues resumed healthy momentum in Q1 as we improve traffic allocation efficiency on both our platform for both 1P and 3P merchants. Commission revenue under marketplace and marketing continue to decrease at this stage due to our supporting measures to merchants to cultivate our platform ecosystem.

第一季服務收入年增 9%，主要由物流和其他服務收入（本季年增 14%）推動。隨著我們（聽不清楚）3P 商家和培育我們的平台生態系統，市場和行銷收入在第一季恢復正成長。隨著我們提高平台上 1P 和 3P 商家的流量分配效率，我們的廣告收入在第一季恢復了健康的勢頭。由於我們為商家培育平台生態系統所採取的支持措施，市場和行銷方面的佣金收入現階段持續下降。

Now let me turn to our segment performance. JD Retail revenues increased by 7% year-on-year in Q1. I would like to highlight that, even as we dedicate ourselves to low-priced offerings, JD Retail profit margin continued to increase in the quarter (technical difficulty) higher 1P product sales gross margin across almost all categories. This again demonstrates the beauty of JD's business model. With strong supply chain capabilities at our call, we are able to continuously extend our economies of scale and pass the benefits to our users.

現在讓我談談我們的細分市場表現。京東零售第一季營收年增7%。我想強調的是，即使我們致力於低價產品，京東零售的利潤率在本季持續增加（技術難度），幾乎所有類別的 1P 產品銷售毛利率都較高。這再次展現了京東商業模式的美妙之處。憑藉我們強大的供應鏈能力，我們能夠不斷擴大規模經濟，並將利益傳遞給我們的用戶。

In addition, we continue to improve our user experience, including lowering the threshold for free shipping, improve user engagement through iterative like our sponsorship, (inaudible). As a result of these efforts, we achieved higher user shopping frequency and increased order volume. JD Retail non-GAAP [operating] profit decreased by 5% and operating margin was down 50 bps year-on-year to 4.1% in Q1, in line with our (inaudible).

此外，我們不斷改善我們的用戶體驗，包括降低免費送貨的門檻，透過像我們的贊助這樣的迭代來提高用戶參與度（聽不清楚）。透過這些努力，我們實現了更高的用戶購物頻率和訂單量。第一季京東零售非 GAAP [營運]利潤下降 5%，營運利潤率年減 50 個基點至 4.1%，與我們的數據一致（聽不清楚）。

Moving on to JD Logistics. Revenues of JD Logistics increased by 15% year-on-year in Q1 with strong momentum for both of its internal and external revenues. However, JD Logistics' non-GAAP operating margin increased to 0.5% in the quarter, a meaningful improvement compared to a loss margin of 3.1% a year ago. This is the result of JD Logistics further optimized fulfillment network and [operating efficiency], increased scale benefits as well as healthier revenue growth.

接下來是京東物流。京東物流第一季營收年增15%，內外營收動能強勁。然而，京東物流本季的非公認會計原則營業利潤率增至0.5%，與一年前3.1%的虧損率相比，這是一個有意義的改善。這是京東物流進一步優化配送網路和營運效率、擴大規模效益、實現更健康收入成長的結果。

Turning to New Business. Please note that, from Q1 2024, we'll start to record Dada's results under New Business. Therefore, this segment mainly includes JD Property, Dada, Jingxi and overseas business. Revenues of New Business were down 19% in Q1, primarily due to the adjustment of Jingxi business. Excluding the impact of the disposal [assets] of JD Property, non-GAAP operating loss of New Business was RMB 670 million in the quarter, narrowing from RMB 846 million in the second quarter a year ago.

轉向新業務。請注意，從 2024 年第一季開始，我們將開始在新業務下記錄 Dada 的業績。因此，該板塊主要包括京東地產、達達、京喜及海外業務。一季新業務收入下降19%，主要是由於京西業務的調整。剔除京東地產處置[資產]的影響，本季新業務非美國通用會計準則營運虧損為人民幣6.7億元，較去年第二季的人民幣8.46億元收窄。

Moving on to our consolidated bottom line. Our non-GAAP net income attributable to shareholders at the (inaudible) came in at RMB 8.9 billion, a 17% increase year-on-year, with non-GAAP net margin came in at 3.4%, 30 bps year-on-year. This was primarily driven by increased gross margin, the effective investments in [user experience] and JD Logistics' improved bottom line performance.

繼續我們的綜合底線。我們的非 GAAP 股東淨利（聽不清楚）為 89 億元，年增 17%，非 GAAP 淨利率為 3.4%，較去年同期成長 30 個基點。這主要是由於毛利率的提高、對[用戶體驗]的有效投資以及京東物流獲利能力的改善。

Non-GAAP diluted net income per ADS grew by 19% year-on-year in the quarter to RMB 5.65.

本季非美國通用會計準則稀釋後每股美國存託股淨利潤年增 19% 至 5.65 元。

(technical difficulty)

（技術難度）

Ladies and gentlemen, that we've lost connection with the speaker line. Please hold and we'll resume shortly.

女士們先生們，我們與揚聲器線失去了聯繫。請稍等，我們很快就會恢復。

Okay, we're back. Sorry.

好的，我們回來了。對不起。

So our last 12 months free cash flow as of the end of Q1 was RMB 51 billion compared to RMB 19 billion in the same period last year. The year-on-year increase of free cash flow was mainly due to our further optimized cash conversion cycle, improved profitability, moderated CapEx as well as seasonality factor.

因此，截至第一季末，我們過去 12 個月的自由現金流為 510 億元人民幣，而去年同期為 190 億元。自由現金流年增主要是因為我們進一步優化現金週轉週期、獲利能力提高、資本支出放緩以及季節性因素。

Notably, our last 12 month inventory turnover reached a historical low level of 29 days in Q1 compared to 32 days in the same period last year, which also contributed to our increase in free cash flow. By the end of Q1, our cash and cash equivalents, restricted cash and short-term investments, added up to a total of RMB 179 billion.

值得注意的是，我們過去 12 個月的庫存週轉率在第一季達到 29 天的歷史最低水平，而去年同期為 32 天，這也有助於我們自由現金流的增加。截至第一季末，我們的現金及現金等價物、限制性現金及短期投資合計1,790億元。

To conclude, we're encouraged by our solid results in Q1, and we are confident to deliver our operating targets while staying focused on executing our long-term strategies. 2024 not only marks the 10th anniversary of our listing on NASDAQ, it's also a start of a new chapter for JD to serve more users and provide them unparalleled user experience by developing an ecosystem that bolsters the prosperity of both 1P and 3P.

總而言之，我們對第一季的穩健業績感到鼓舞，我們有信心實現我們的營運目標，同時繼續專注於執行我們的長期策略。 2024年不僅是我們在納斯達克上市10週年，也是京東開啟新篇章的新篇章，將透過打造一個促進1P和3P繁榮的生態系統來服務更多用戶，為他們提供無與倫比的用戶體驗。

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

有了這個，我會把它交給肖恩。謝謝。

Sure. Thank you, Ian. We apologize for the breaking up for today's call.

當然。謝謝你，伊恩。對於今天的電話分手，我們深表歉意。

So for the Q&A session, you're welcome to ask questions in Chinese or English. And our management will answer questions in the language you ask. We'll provide English translation when necessary for convenient purpose only. In case of any discrepancy, please refer to management's statement in the original language.

所以在問答環節，歡迎您用中文或英文提問。我們的管理層將用您提出的語言回答問題。出於方便目的，我們將在必要時提供英文翻譯。如有任何差異，請參閱管理階層的原文聲明。

Okay. Operator, can we open the call for Q&A? Thank you.

好的。接線員，我們可以打開問答電話嗎？謝謝。

(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。

Sandy, Ian and Sean. I have a question on our growth and then how do we balance growth and profitability. Let me ask first in Chinese, and I'll translate my question.

桑迪、伊恩和肖恩。我對我們的成長有疑問，然後我們如何平衡成長和獲利能力。讓我先用中文問，然後我會翻譯我的問題。

(foreign language)

（外語）

I have a question on our growth and then how do we balance that with profitability. We've seen many players this year, even our incumbents, I call them, each aiming to grow faster than total retail and aiming to sustain share. So in this overall industry, where everyone wants to grow faster than the industry, how do we see the key drivers for JD this year sustaining?

我對我們的成長有疑問，然後我們如何平衡成長與獲利能力。今年我們看到了許多參與者，甚至是我們的老牌企業，我稱之為他們，每個人的目標都是比零售總額增長得更快，並旨在維持份額。那麼，在整個產業中，每個人都希望比產業成長得更快，我們如何看待今年京東的關鍵驅動力能否持續？

We're gaining market share across categories, electronics where there was a high base last year. How do we see this grow? FMCG and general merchandise, just talk about the supermarket growth that Sandy mentioned. How do we -- drivers to grow faster than industry. And from user and frequency perspective, existing and new users.

我們正在獲得跨類別的市場份額，去年基數較高的電子產品。我們如何看待這種成長？快消品和百貨，就談談Sandy提到的超市成長。我們如何－驅動力比產業成長得更快。從使用者和頻率的角度來看，現有使用者和新使用者。

And how do we balance this growth and profitability, our targets for margins, as more players reinvest for growth?

隨著越來越多的參與者為成長進行再投資，我們如何平衡這種成長和獲利能力，也就是我們的利潤目標？

[Interpreted] Thank you, Ronald, for your question. So first of all, to the point that China has a vast consumption market and this market continued healthy growth. And in the meantime, China consumption market is fragmented with over 300 cities in China boasting population of over 1 million people.

[解釋]謝謝羅納德的提問。首先，中國擁有廣大的消費市場，這個市場持續健康成長。同時，中國消費市場碎片化，中國有300多個城市人口超過100萬。

Interpreted So in 2023, we see that China penetration of online physical goods sales to at around 30%. So this is a figure expected to rise as the e-commerce platforms, we enhance our efficiency and evolve our business models.

因此，到 2023 年，我們預計中國線上實體商品銷售的滲透率將達到 30% 左右。因此，隨著電子商務平台的效率提高和業務模式的發展，這個數字預計會上升。

Interpreted And category wise, we see certain categories, such as computers and home appliances, have a higher-than-expected potential to further penetrate online. Despite that we think these categories already have a relatively high online consumption rate.

解讀 從類別來看，我們認為某些品類（例如電腦和家用電器）在網路上進一步滲透的潛力高於預期。儘管如此，我們認為這些類別已經擁有相對較高的線上消費率。

Interpreted And moreover, significant room for online penetration exist in some other categories, like we can see supermarkets, home goods, automotive, sports and outdoors, and services. These categories have a large potential to continue online penetration, and these are also among the fastest-growing categories on our platform. So with that, I want to say that we believe we are still facing a massive total addressable market.

此外，其他一些類別也存在很大的線上滲透空間，例如超市、家居用品、汽車、運動和戶外以及服務。這些類別具有繼續在線滲透的巨大潛力，也是我們平台上成長最快的類別之一。因此，我想說，我們相信我們仍然面臨著一個巨大的潛在市場。

Interpreted So in terms of JD's core competitiveness, and like for JD, we are the China's largest retailer. Leveraging our 1P business, we're able to leverage our supply chain capabilities to provide users with premium and differentiated user experience and to excel in cost and efficiency management, which also paveed the way for us to develop our platform ecosystem.

解讀 那麼就京東的核心競爭力而言，就像京東一樣，我們是中國最大的零售商。借助我們的1P業務，我們能夠利用我們的供應鏈能力為用戶提供優質和差異化的用戶體驗，並在成本和效率管理方面表現出色，這也為我們發展平台生態系統鋪平了道路。

Interpreted So as discussed last quarter, over the past year, we centered around user experience, low price offerings and platform ecosystem, and we have taken a set of proactive moves with a focus on business health, including enhancing our (inaudible); reducing procurement costs; and introducing various customer service upgrades, such as lowering threshold for free shipping, upgrading the 1-week price guarantee service, offering free doorstep pickup for returns and implementing refund-only policies, among others.

正如上季所討論的，在過去的一年裡，我們以用戶體驗、低價產品和平台生態系統為中心，並採取了一系列積極主動的舉措，重點關注業務健康，包括增強我們的（聽不清）；降低採購成本；推出多項顧客服務升級，例如降低免運費門檻、升級1週保價服務、退貨免費上門取貨、實施只退款政策等。

Interpreted So all our efforts of improving user experience has [picked up] with some positive changes on user growth and engagement. So in this Q1, both JD Groups and JD Retail's quarterly active numbers experienced double-digit growth, continuing the trend of high growth rate from Q4 last year. So at the same time, we've also [observed] a clear uptick in users' shopping frequency as they engage more actively on our platforms.

解釋 因此，我們在改善用戶體驗方面所做的所有努力都得到了改善，在用戶成長和參與度方面出現了一些積極的變化。所以今年一季度，京東集團和京東零售的季度活躍數都出現了兩位數的成長，延續了去年第四季的高成長趨勢。同時，我們也[觀察到]隨著用戶更積極參與我們的平台，他們的購物頻率明顯上升。

Interpreted Furthermore, our NPS has shown consistent improvement. So in Q1, our NPS saw meaningful improvement on both 1P and 3P side on a year-on-year basis as well as sequential basis. While the influx of the new [users to our] platform as we pushed forward our platform ecosystem last year led to some fluctuations in our NPS, whereas our ongoing improvement in platform governance and risk control have driven upward trend in user satisfaction.

解釋 此外，我們的淨建議值 (NPS) 已顯示出持續改善。因此，在第一季度，我們的 NPS 在 1P 和 3P 方面同比和環比均出現了有意義的改善。雖然去年隨著我們推進平台生態系統，新用戶的湧入導致我們的淨推薦值出現一些波動，但我們在平台治理和風險控制方面的持續改進推動了用戶滿意度的上升趨勢。

Interpreted So in summary, our efforts have yielded some promising outcomes as we see users' mind share resume momentum towards (inaudible) in terms of our ability to provide more diverse, affordable and high-quality products at faster speeds that gives us the confidence to achieve our long-term growth trajectory and market expansion.

總而言之，我們的努力取得了一些有希望的成果，因為我們看到用戶的想法恢復了（聽不清楚）的勢頭，我們有能力以更快的速度提供更多樣化、價格實惠和高品質的產品，這讓我們有信心實現我們的長期成長軌跡和市場擴張。

[Interpreted] So this is Ian to address the second part of your question. To follow up on what Sandy just said, we're confident that our 2024 full year growth will outpace China's total retail sales of consumer goods, and we will deliver stable profits for both JD Group and JD Retail. And on top of that, we will remain committed to our disciplined investments aimed at enhancing user experience and expanding our market share.

[解讀] 這是伊恩來回答你問題的第二部分。延續剛才桑迪所說，我們有信心2024年全年成長將超過中國社會消費品零售總額，為京東集團和京東零售帶來穩定的利潤。最重要的是，我們將繼續致力於嚴格的投資，旨在增強用戶體驗並擴大我們的市場份額。

Interpreted So in JD's view, business growth and profitability is more reinforcing than contradictory. JD's business model is based on supply chain with user experience at the core (inaudible) enhancing both supply chain efficiency capabilities and user experience. So we firmly believe that our long-term sustainable profit will stem from our strong market position and exceptional user experience.

解讀 所以在京東看來，業務成長和獲利能力更多的是相互促進而不是矛盾。京東的商業模式以供應鏈為基礎，以使用者體驗為核心（聽不清楚），提升供應鏈效率能力與使用者體驗。因此，我們堅信，我們的長期可持續利潤將源自於我們強大的市場地位和卓越的用戶體驗。

Interpreted So for JD.com, from our perspective, we believe that by constantly dedicating energy and resources to enhancing product, price and service, we can deliver superior user experience, and this in turn drives up GMV growth and expand our market share. And as our business size expand and the market position gets enhanced, our advantage in supply chain and efficiency is further strengthened, which leads to healthy profit growth. And this enable us to continue to invest in product, price and service to constantly improve user experience. This is -- this forms a virtuous cycle among business growth, user experience enhancement and long-term profit growth.

對於京東來說，從我們的角度來看，我們相信透過不斷投入精力和資源來提升產品、價格和服務，我們可以提供卓越的用戶體驗，從而推動GMV成長並擴大我們的市場份額。而隨著業務規模的擴大和市場地位的提升，我們的供應鏈優勢和效率優勢進一步增強，帶來利潤的健康成長。這使我們能夠繼續在產品、價格和服務上進行投資，並不斷改善用戶體驗。這就是——這就形成了業務成長、使用者體驗提升和長期利潤成長之間的良性循環。

Interpreted So last year, much of our efforts was directed towards internal enhancements, including boosting operational efficiency, streamlining workflows and enhancing long-term cost-competitiveness. And through this process, we identified significant opportunities to further improve our operating abilities. And we believe that strengthening these capabilities is crucial for our success in enhancing profits and long-term competitiveness.

解讀 去年，我們大部分的努力都集中在內部改進上，包括提高營運效率、簡化工作流程和增強長期成本競爭力。透過這個過程，我們發現了進一步提高營運能力的重要機會。我們相信，加強這些能力對於我們成功提高利潤和長期競爭力至關重要。

Interpreted So in terms of business focus and investment. Since last year, we've been working on several key initiatives. We've lowered the threshold for merchants to onboard our marketplace, while we helped to enhance -- we enhanced the support measures for SME merchants. In addition, we've provided them with a range of effective tools to operate our platform. Therefore, we are able to increase the variety of product choices available to our customers.

從業務重點和投資角度來解釋。自去年以來，我們一直致力於多項關鍵措施。我們降低了商家進入我們市場的門檻，同時我們幫助加強了對中小企業商家的支持措施。此外，我們也為他們提供了一系列有效的工具來操作我們的平台。因此，我們能夠增加客戶可選擇的產品種類。

Interpreted And regarding user experience enhancement. We've implemented a series of gradual updates of various customer services. These include lowering the threshold for free shipping services for 1P, improving the functionality of our 1-week price guarantee feature, introducing free doorstep pickup for return services for both 1P and 3P, and implementing refund-only policies and more. And these industry-leading service innovations have resulted in a notable increase in user satisfaction, as evidenced by our rising NPS.

解釋以及關於使用者體驗增強。我們對各種客戶服務實施了一系列逐步更新。其中包括降低1P免費送貨服務的門檻、完善1週價格保證功能、為1P和3P推出免費上門取貨服務以及實施僅退款政策等。這些業界領先的服務創新顯著提高了用戶滿意度，我們不斷上升的 NPS 證明了這一點。

Interpreted So to conclude, from the long-term perspective, we will consistently leverage the advantage we have in our 1P and continue to promote our platform ecosystem to strengthen the virtuous cycle between our business scale and profit growth, and we are confident to achieve that objective in the long term.

綜上所述，從長遠來看，我們將繼續發揮我們在1P方面的優勢，繼續推動我們的平台生態系統，以加強我們的業務規模和利潤成長之間的良性循環，我們有信心實現這一目標長期目標。

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。

(foreign language) Congrats on the solid results. First question is, if the appliance trade-in policy were implemented amid the conscious consumption spend remain, will the policy effective enough to boost consumer to really spend? And what could be the incremental growth JD expects to be able to enjoy from the trade-in policy?

（外語）祝賀取得的豐碩成果。第一個問題是，如果家電以舊換新政策在自覺消費依然存在的情況下實施，該政策是否足以有效促進消費者的真實消費？京東預計能從以舊換新政策中獲得哪些增量成長？

From second question is management previously noted that FMCG will be an important category to support growth for JD this year. Other than low base and easier comps, do you think consumer will really spend more income on FMCG category? If consumer demand remains last year, will FMCG still be the key growth driver this year? Do you anticipate JD to take more share in this category?

第二個問題是管理階層先前指出，快速消費品將成為支持京東今年成長的重要品類。除了基數低、比較容易競爭之外，您認為消費者真的會在快速消費品類別上花費更多收入嗎？如果去年消費需求不變，快速消費品仍將是今年的主要成長動力嗎？您預計京東會在這一品類中佔據更多份額嗎？

[Interpreted] Thank you, Alicia, for your question. First on the trade-in service. So as you know, that it has been about a decade since China last introduced nationwide trade-in initiatives. So for many Chinese households, it is now time to replace their home appliances and other durable goods. And these old products are often low in functionality, high in energy consumption and may pose risks to health and safety. However, due to the high cost of replacement, many families continue using them for the moment.

[解釋] 謝謝艾莉西亞的提問。首先是以舊換新服務。如您所知，距離中國上次推出全國性的以舊換新措施已經過去了大約十年。因此，對於許多中國家庭來說，現在是時候更換家電和其他耐用品了。而這些舊產品往往功能低、能耗高，可能對健康和安全造成風險。但由於更換成本較高，許多家庭暫時繼續使用。

Interpreted So this round, the introduction of a new trade-in policy, offers incentives to address this long-standing demand. It will encourage Chinese families to trade in their old items for new ones at a lower cost, thereby enhancing the overall quality of life for many people.

解讀 因此，這一輪新的以舊換新政策的推出為解決這一長期需求提供了誘因。它將鼓勵中國家庭以較低的成本以舊換新，從而提高許多人的整體生活品質。

Interpreted So currently, we've seen that governments at all levels are actively promoting the implementation of trade-in policies. So we see the Ministry of Commerce has released the action plan to promote trade-ins for consumer goods, while local governments are also conducting research and making arrangements, and we're also coordinating with different levels of government. And we look forward to the introduction of additional trade-in subsidizing measures that will directly benefit Chinese consumers.

解讀 那麼目前，我們看到各級政府都在積極推動以舊換新政策的落實。所以我們看到商務部已經發布了促進消費品以舊換新的行動方案，各地也在進行研究和部署，我們也正在和各級政府進行協調。我們期待更多以舊換新補貼措施的推出，讓中國消費者直接受益。

Interpreted Meanwhile, JD, we have collaborated with over 100 brands, including the top brands, like Haier, Midea, Gree, and so on, to launch Trade-in Alliance or Household Appliances and Home Goods. And this alliance has so far launched trade-in subsidizing promotions in 20 cities and regions across China, with the goal of offering more cost-saving and hassle-free trade-in services to consumers nationwide.

同時，京東與100多個品牌合作，包括海爾、美的、格力等頂級品牌，推出以舊換新聯盟或家電家居用品。目前該聯盟已在全國20個城市和地區開展以舊換新補貼活動，旨在為全國消費者提供更省錢、無憂的以舊換新服務。

Interpreted So over the years at JD.com, we've also been building and refining our trade-in service capabilities and leveraging our strengths in supply chain, in logistics and services. We continuously elevate the trade-in service experience to new heights.

這麼多年來，在京東，我們也一直在建立和完善我們的以舊換新服務能力，並發揮我們在供應鏈、物流和服務方面的優勢。我們不斷將以舊換新服務體驗提升到新的高度。

Interpreted So we introduced integrated one-stop trade-in service, which includes free doorstep pickup, dismantling, handling of the old goods and free delivery and installation of new goods, et cetera. And moreover, there are no restrictions on the trade-in items, original purchase channel, brand, age or condition. So with these offerings, JD has shortened the trade-in process, no more than two times of user home visits. So this is a very unique strength we can provide our services to our users because we are not only having our retail services, but also logistics services.

解讀 因此我們推出了一站式以舊換新服務，包括免費上門取貨、拆解、處理舊貨以及免費送貨安裝新貨等。而且，以舊換新的商品、原始購買管道、品牌、年齡或狀況並沒有任何限制。所以透過這些產品，京東縮短了以舊換新的流程，使用者上門次數不超過兩次。因此，這是我們可以為用戶提供服務的非常獨特的優勢，因為我們不僅擁有零售服務，還擁有物流服務。

Interpreted And on the back end, we have also done a lot of work over the years to provide the systematic support. So all of these infrastructures and abilities enable us to provide such a seamless trade-in services to our consumers today.

解釋一下，在後端，這些年我們也做了大量的工作，提供系統的支援。因此，所有這些基礎設施和能力使我們能夠為當今的消費者提供如此無縫的舊換新服務。

Interpreted So since 2023, more than 16 million users have chosen JD to trade in their old appliances for new ones, and first-time users of our trade-in service has also recorded a 200% year-on-year increase.

據了解，自2023年以來，超過1,600萬用戶選擇京東以舊換新，首次以舊換新的用戶也較去年同期成長200%。

Interpreted So in 2023, our trade-in program accounted for mid- to high single-digit percentage of JD's home appliances sales. And with the government active promoting this initiative this year, we anticipate more incremental sales to our home appliances category. And this trade-in-driven sales are expected to comprise a higher percentage of our overall sales in this category.

因此，2023 年，我們的以舊換新計畫佔​​京東家電銷售額的中高個位數百分比。隨著政府今年積極推動這項舉措，我們預計家電類別的銷售將出現更多增量。這種以舊換新驅動的銷售預計將占我們該類別總銷售額的更高比例。

Interpreted And about the FMCG question. So first of all, I want to share from the consumption trend standpoint, the overall FMCG sector maintains positive growth momentum. According to the Q1 NPS data, FMCG categories, particularly basic living goods, have shown robust growth. And FMCG and fresh produce are the 2 sectors that enjoy a rapid increase -- that enjoy rising sales, whereas they have relatively low online penetration. So we've seen a lot of online platform and e-commerce players, and we are steadily capturing our market share from traditional offline markets.

解讀以及關於快消品的問題。首先，我想從消費趨勢的角度分享一下，快消品產業整體保持正面的成長動能。第一季NPS數據顯示，快消品類尤其是基本生活類別呈現強勁成長。快消品和生鮮是兩個成長較快的產業，銷售額不斷上升，但線上滲透率相對較低。因此，我們看到了許多線上平台和電子商務參與者，並且我們正在穩步從傳統線下市場奪取市場份額。

Interpreted And in light of JD's Q1 data, the anticipated swift rebound of FMCG played a significant role in driving the overall growth of our general merchandise sales and revenues, leading to our general merchandise growth rate outperforming the corresponding industry growth released by NBS.

解讀從京東第一季數據來看，快消品的快速反彈預期對我們百貨銷售收入的整體增長起到了顯著的拉動動作用，使得我們的百貨增速跑贏了國家統計局公佈的相應行業增速。

Interpreted And in terms of our strategies for the supermarket categories. We've seen significant enhancement in this category as we delve in deeper into each subcategory to enrich product offerings and reduce procurement costs and pass on the benefits to our consumers. And additionally, to address user demand and consumption pain points, we are exploring various measures, such as open sourcing of products, customize the development of new products, to provide consumers with high-quality products, competitive prices and excellent services.

解釋以及我們對超市類別的策略。隨著我們深入研究每個子類別以豐富產品種類、降低採購成本並將利益傳遞給消費者，我們已經看到該類別的顯著增強。此外，針對用戶需求和消費痛點，我們正在探索產品開源、客製化開發新產品等多種舉措，為消費者提供高品質的產品、有競爭力的價格和優質的服務。

Interpreted So at the same time, our logistics fulfillment network reform has also empowered us to lower the threshold for free shipping and tailored to the characteristics of different product categories.

同時，我們的物流配送網路改革也使我們能夠降低免費送貨的門檻，並針對不同產品類別的特點進行量身定制。

Interpreted We are undertaking fulfillment network reforms as JD's business scale and category mix have evolved significantly over the past years. We've adjusted the algorithm and design of fulfillment network every few years. So for instance, our unique city-based warehouse model offers a superior shopping experience compared to the industry-wide sending nationwide from one place model.

解讀 隨著京東的業務規模和品類組合在過去幾年中發生了顯著變化，我們正在進行配送網路改革。我們每隔幾年就會調整履行網路的演算法和設計。例如，與全行業從一處向全國發送的模式相比，我們獨特的城市倉庫模式提供了卓越的購物體驗。

Interpreted However, our city-based warehouse model requires us to improve scale efficiency, to reduce parcel moving times from one place to another and reduce the delivery distances through algorithm upgrades and thereby continuously reducing overall fulfillment costs.

然而，我們的城市倉模式要求我們提高規模效率，透過演算法升級來減少包裹從一地到另一地的運輸時間，縮短配送距離，從而不斷降低整體配送成本。

Interpreted So all in all, we believe the essence to continue to promote the growth of the supermarket category is to return to the essence of retail, which is to focus on the better cost efficiency and user's experience. So looking ahead, so despite fierce competition in the supermarket categories and the industry players adopting various strategies, we remain confident in the growth potential of this category and view the supermarket category as a crucial driver of our overall growth.

解讀 所以總而言之，我們認為繼續推動超市品類成長的本質是回歸零售的本質，注重更好的成本效率和使用者體驗。因此，展望未來，儘管超市品類競爭激烈，行業參與者採取各種策略，但我們對該品類的成長潛力仍然充滿信心，並將超市品類視為我們整體成長的關鍵驅動力。

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。

(foreign language) I have two questions, the first one on content. JD has been trying different means on the e-commerce content that have been very innovative and differentiating versus our peers, like merchandise; live streaming; and recently, WeChat AI live streaming. They have reached very positive results. Can management share with us the progress and upcoming strategy for content investment into our core e-commerce platform?

（外語）我有兩個問題，第一個問題是內容。京東一直在電商內容上嘗試不同的方式，這些內容非常創新，並且與我們的同行有差異化，例如商品；直播；還有最近的微信AI直播。他們取得了非常正面的成果。管理層能否與我們分享我們核心電商平台內容投資的進展和即將採取的策略？

And my second question is about shareholder return. We have substantially stepped up shareholder return and repurchase USD 1.2 billion worth of shares last quarter. How should we think about the pace, the scale and the sustainability of the buyback going forward?

我的第二個問題是關於股東回報。上季我們大幅提高了股東回報並回購了價值12億美元的股票。我們該如何思考未來回購的節奏、規模和永續性？

[Interpreted] So thank you, Kenny. Let me share some thoughts on live streaming and content ecosystem. So for JD Retail, we announced our commitment to strengthen our content ecosystem at the beginning of the year, aiming to offer users more diverse and comprehensive content experience alongside our superior shopping experience.

[解釋]謝謝你，肯尼。讓我分享一些關於直播和內容生態系統的想法。因此，對於京東零售來說，我們在年初就宣布了加強內容生態的承諾，旨在為用戶提供更豐富、更全面的內容體驗以及卓越的購物體驗。

Interpreted Because we believe that by offering premium content, we'll attract new traffic to JD's platform and reduce our user acquisition cost and the benefit of our platform ecosystem. And we also believe that rich content also play a crucial role in increasing user engagement and time spent on our platform and consequently enhancing our traffic distribution efficiency and conversion rates.

解釋是因為我們相信，透過提供優質內容，我們將為京東平台吸引新流量，並降低用戶獲取成本和平台生態系統的效益。我們也相信，豐富的內容在提高用戶參與度和在我們平台上花費的時間方面也發揮著至關重要的作用，從而提高我們的流量分配效率和轉換率。

Interpreted So our attempt on live streaming, as what you mentioned with the popular sessions led by our category managers during the Singles Day brand promotion; and our recent showcases featuring an AI digital representative of our founder, Richard, exemplify our commitment to content innovation, leveraging our JD's technological capabilities.

那麼我們對直播的嘗試，就像你提到的雙十一品牌推廣期間我們的品類經理主持的熱門會議；我們最近以創辦人理查德的人工智慧數位代表為主角的展示，體現了我們利用京東的技術能力對內容創新的承諾。

Interpreted And notably, Richard's avatar live streaming, which marks the industry's first live streaming hosted by an AI avatar of an entrepreneur, drew over 20 million views within the first hour, which also showcases our AI and other capabilities and these applications in the e-commerce scenarios.

值得一提的是，理查德化身直播是業界首個由人工智慧企業家主持的直播，第一個小時的觀看量就突破了2000萬次，這也展示了我們的人工智慧等能力以及這些在電子商務中的應用。

Interpreted So moving forward, we will persist in making technological investments centered on JD's core business, including our large language model, et cetera.

解讀 那麼接下來我們會堅持圍繞京東的核心業務進行技術投入，包括我們的大語言模型等等。

Interpreted So we're still at the early stage of our content ecosystem building, and we hope to provide greater exposure and more traffic to high-quality and original content and its creators, so thereby adding value to our consumers by helping them discover products and make informed shopping decisions.

因此，我們仍處於內容生態系統建設的早期階段，我們希望為高品質的原創內容及其創作者提供更多的曝光和流量，從而透過幫助我們的消費者發現產品和內容來為他們增加價值。

[Interpreted] So thank you. To answer your question on the shareholders' returns, I would like to draw your attention to our 3 years plan for the USD 3 billion plan. And so far, we still have around USD 2.3 billion as we scheduled in the years ahead. And year-to-date, we repurchased a total of the 98.3 million Class A share -- ordinary shares equivalent to 49 million ADS for a total of $1.3 billion in open markets from both NASDAQ and Hong Kong, accounting for approximately 3.1% of the total ordinary shares outstanding at the end of 2023.

[解釋]所以謝謝你。為了回答你關於股東回報的問題，我想提請你關註一下我們30億美元計畫的3年計畫。到目前為止，我們仍然有大約 23 億美元的資金按照我們未來幾年的計劃進行。年初至今，我們在納斯達克和香港公開市場回購了總計9,830 萬股A 類股——相當於4,900 萬股美國存託股的普通股，總金額為13 億美元，約佔總股本的3.1%。

Interpreted So in the long term, our returns will focus on our sustained and healthy business growth, profitability and dividends, share buybacks, et cetera. So we will continue to reward our shareholders through various means and sharing the success of JD's business.

解讀 因此，從長遠來看，我們的回報將集中在我們持續健康的業務成長、獲利能力和股息、股票回購等方面。我們將繼續透過多種方式回饋股東，分享京東業務的成功。

Your next question comes from Thomas Chong with Jefferies.

您的下一個問題來自 Jefferies 的 Thomas Chong。

(foreign language) My first question is about industry and industry competition. How should you think about this year 618? And also, how should we think about the industry landscape? How is different versus the previous year?

（外語）我的第一個問題是關於產業和產業競爭的。你該如何看待今年的618？另外，我們該如何看待產業格局？與往年相比有何不同？

And my number two question is about our ecosystem strategy. Can management comment about the [3P] merchants economic contribution in the coming quarters?

我的第二個問題是關於我們的生態系統策略。管理階層能否評論[3P]商家在未來幾季的經濟貢獻？

[Interpreted] So thank you, Thomas. Let me share some plans of the upcoming JD618 grand promotion. So this year's grand promotion's theme is quality and affordability. We've noticed the trend in the market where many low-priced products appear identical. So as we continue to implement our low-price strategy, our focus for this year's shopping festival is to highlight JD's ability to offer differentiated good products at inexpensive price with excellent service.

[翻譯]謝謝你，托馬斯。讓我分享一下即將到來的JD618大促銷的一些計劃。所以今年大促銷的主題是品質和實惠。我們注意到市場上的趨勢是許多低價產品看起來相同。因此，在繼續實施低價策略的同時，我們今年購物節的重點是突出京東以低廉的價格提供差異化的好產品和優質的服務。

Interpreted And this year's promotional approach and pace will have some difference from the previous years. And all arrangements will be centered on enhancing user's experience. And the event will kick off at 8 p.m. on May 31 with products readily available for immediate purchase.

解讀 而今年的促銷方式和節奏與往年會有些不同。而一切安排都會以提升使用者體驗為中心。活動將於晚上8點開始。 5 月 31 日起，產品可立即購買。

Interpreted And we will also remain committed to cultivating strong partnership with our brands and suppliers to further solidifying JD's market presence and users' mind share. And we will also step efforts to support SME merchants and to support more than double number of merchants to achieving over 1 million sellers and to support more partners to achieve their growth objectives.

我們也將繼續致力於與品牌和供應商建立牢固的合作夥伴關係，以進一步鞏固京東的市場份額和用戶心智份額。我們也將加強支持中小企業商家，支持商家數量增加一倍以上，實現賣家數量突破100萬，並支持更多合作夥伴實現成長目標。

Interpreted So overall, we are optimistic about the overall performance of this year's 6/1 promotion. And we believe that, with different market players, we have different strategies in the everyday sales and during the grand promotions. What make JD standout is still our advantages in supply chain and the reliabilities we can offer to our users.

解讀 所以整體來說，我們看好今年6/1促銷的整體表現。我們相信，對於不同的市場參與者，我們在日常銷售和大型促銷期間有不同的策略。京東之所以脫穎而出，仍然是我們在供應鏈方面的優勢以及我們可以為用戶提供的可靠性。

Interpreted So we firmly believe that JD's business model, based on robust supply chain and the user-centric experience, is resilient and sustainable across various economic cycles. And we're confident in our ability to consistently gain market share over the long term with this business model.

解讀 因此，我們堅信，京東的商業模式是基於強大的供應鏈和以用戶為中心的體驗，在不同的經濟週期中具有彈性和可持續性。我們對透過這種業務模式長期持續獲得市場份額的能力充滿信心。

Thank you. We are now...

謝謝。我們現在...

We haven't taken the second part of Thomas' question.

我們還沒有回答托馬斯問題的第二部分。

[Interpreted] To address the question about platform ecosystem. So our initial focus is to expanding our ecosystem scale by attracting merchants. We are actively working on onboarding more merchants and support them in improving their business performance on our platform by offering a diverse range of products on our platform to our customers. And over the past year, we've successfully attracted a significant number of new merchants by continuously streamlining our onboarding processes, reducing their store operating costs, improving operational efficiencies and providing traffic support.

【解讀】解決平台生態系統問題。所以我們最初的重點是透過吸引商家來擴大我們的生態系統規模。我們正在積極努力吸引更多商家，並透過在我們的平台上向客戶提供多樣化的產品來支持他們提高我們平台上的業務績效。在過去的一年裡，我們透過不斷簡化入駐流程、降低店鋪營運成本、提高營運效率和提供流量支持，成功吸引了大量新商家。

Interpreted So in this quarter, the number of prospective merchants on our platform exceeded 1 million with a number of active merchants experiencing accelerated growth for four consecutive quarters. And admittedly, our merchant count may not be as high as some other platforms and we remain committed to further enhancing our merchant recruitment efforts and supporting their activities on our platform. And we anticipate continued growth in the number of merchants in the following quarters.

解讀：本季，平台準商家數突破100萬，活躍商家數量連續四季加速成長。誠然，我們的商家數量可能不如其他一些平台那麼多，但我們仍然致力於進一步加強我們的商家招募工作並支持他們在我們平台上的活動。我們預計接下來幾季商家數量將持續成長。

Interpreted So for the second phase of the platform ecosystem building involves encouraging user participation. Ultimately, we aim for it to become a natural process, a natural choice for our users to purchase either self-operated or third-party products. Thus far, we've observed favorable interactions between our users and third-party offerings.

如此解釋，第二階段的平台生態建設涉及鼓勵用戶參與。最終，我們的目標是讓它成為一個自然的過程，成為用戶購買自營或第三方產品的自然選擇。到目前為止，我們觀察到我們的用戶和第三方產品之間有良好的互動。

Interpreted In Q1, we achieved accelerated growth in both 3P transaction users and 3P order volume. Meanwhile, NPS for 3P has continued to improve. Since the second half of last year, we've been collaborating with our merchants to pioneer service innovations. This has led to the implementation of services, like late delivery compensation, refund-only policies and free doorstep pickup for returns and more services, all of which have constantly elevated our shopping experience for our POP users.

解讀 一季度，我們3P交易用戶和3P訂單量均加速成長。同時，3P 的 NPS 持續改善。去年下半年以來，我們一直與商家合作，開拓服務創新。為此，我們推出了延遲配送補償、退款政策、退貨免費上門取貨等服務，不斷提升了POP用戶的購物體驗。

Interpreted And lastly, we also believe that we will witness an increase in POP sales and revenues. And the prerequisite for this to happen is so we can truly help our merchants to scale up their businesses. From the rapid expansion of merchant members to active user participation and to rapid growth of POP GMV, all of this will require time and patience. With the gradual improvement of our platform ecosystem in the long run, the proportion of our 3P orders and GMV will eventually surpass that of our self-operated products, and this will also be a natural choice by our users.

解釋 最後，我們也相信我們將見證 POP 銷售和收入的成長。而實現這一目標的前提是我們能夠真正幫助我們的商家擴大業務規模。從商家會員的快速擴張，到用戶的活躍參與，再到POP GMV的快速成長，這一切都需要時間和耐心。長期來看，隨著我們平台生態的逐步完善，我們的3P訂單和GMV的佔比最終會超越我們的自營產品，這也將是我們用戶的自然選擇。

Interpreted Leveraging our 1P business and the collaboration with merchants from our 3P marketplace, we are able to foster a thriving platform ecosystem and providing richer supplies of high-quality goods and to increase the engagement of our users on our platform so as to achieve a virtuous cycle. And we believe this virtuous cycle will be an important driver for the continued growth of our long-term revenues and profits.

解讀 借助我們的1P業務以及與3P市場商戶的合作，我們能夠培育繁榮的平台生態系統，提供更豐富的優質商品供應，並提高用戶對我們平台的參與度，從而實現良性發展循環。我們相信這種良性循環將成為我們長期收入和利潤持續成長的重要驅動力。

Thank you, operator. So thank you, everyone, for joining the call today, and thanks for your questions. If you have further questions, please contact me and our team. We appreciate your interest in JD.com and look forward to talking to you again next quarter. Thank you.

謝謝你，接線生。謝謝大家今天加入電話會議，也謝謝大家提問。如果您還有其他問題，請聯絡我和我們的團隊。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. This concludes the presentation. You may now disconnect. Good day.

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。再會。

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

[本文字記錄中標記為[已翻譯]的部分是由現場通話中的口譯員朗讀的。