京東 (JD) 2024 Q2 法說會逐字稿

Hello, and thank you for standing by for JD.com second quarter and interim 2024 earnings conference call.(Operator Instructions) After management's prepared remarks, there will be a question and answer session.

您好，感謝您出席京東第二季度和 2024 年中期財報電話會議。

Today's conference is being recorded. If you have any objections, you may disconnect at this time.

今天的會議正在錄製中。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 second quarter and interim 2024 earnings conference Call. For today's call, CEO of JD.com, Ms. Sandy Xu will quick off with 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。大家好。歡迎參加京東 2024 年第二季及中期財報電話會議。在今天的電話會議上，京東執行長徐珊迪女士將快速致開幕詞；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 IR 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 IR 網站上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。

Thank you, Sean. Hello, everyone. Thanks for joining us today to discuss our Q2 2024 results. Facing a very dynamic and competitive market we've delivered a solid set of results, notably achieving the highest single quarter non-GAAP net profit in our history.

謝謝你，肖恩。大家好。感謝您今天加入我們討論 2024 年第二季的業績。面對一個充滿活力和競爭激烈的市場，我們取得了一系列紮實的業績，特別是實現了我們歷史上最高的單季非公認會計準則淨利潤。

Our team did a great job executing our long-term strategy of relentlessly pursuing lower cost, higher efficiency and best-in-class user experience. And we saw a set of key drivers of our business, including user growth, user experience and engagement, price competitiveness and platform ecosystem continued to move in the right direction in the quarter.

我們的團隊出色地執行了我們的長期策略，即不懈地追求更低的成本、更高的效率和一流的用戶體驗。我們看到，我們業務的一系列關鍵驅動因素，包括用戶成長、用戶體驗和參與度、價格競爭力和平台生態系統，在本季度繼續朝著正確的方向發展。

Our results speak strongly about the quality of our business and our commitment to the healthy long-term growth with financial discipline. Instead of adjusting the shifting market environment, we'd have key subsidiaries for short-term top-line performance.

我們的業績有力地說明了我們的業務品質以及我們對財務紀律下健康長期成長的承諾。我們不會調整不斷變化的市場環境，而是擁有關鍵的子公司來實現短期的營收績效。

We continue to focus on leveraging our core strength in supply chain capabilities to offer competitive prices and better user experience. And at the same time to grow our business and profits sustainably. This is a proven path to drive sustainable growth and has led us through many market shifts over the past two decades. Despite the seasonal fluctuation of revenue growth in Q2, we are confident that our long-term market position will continue to improve.

我們繼續專注於利用我們在供應鏈能力方面的核心優勢，提供有競爭力的價格和更好的用戶體驗。同時可持續發展我們的業務和利潤。這是一條行之有效的推動永續成長的道路，並帶領我們在過去二十年經歷了許多市場轉變。儘管第二季度營收成長存在季節性波動，但我們有信心我們的長期市場地位將繼續改善。

Now let's discuss our category performance. Revenues of electronics and home appliances were down 4.6% year on year in the quarter. This is primarily due to last year's high base as well as our disciplined strategy during the June 18, promotion as we prioritize the sustainable growth of our business.

現在讓我們討論一下我們的類別表現。本季電子及家電收入較去年同期下降4.6%。這主要歸功於去年的高基數以及我們在 6 月 18 日促銷期間採取的嚴格策略，因為我們優先考慮業務的可持續成長。

Rather than short-term growth fueled by excessive subsidies. We believe with decades of operating experience in this category and a paralleled supply chain capabilities. We will continue to offer the best-in-class user experience and enhance status market position and win over market share in a sustainable way.

而不是過度補貼推動的短期成長。我們相信擁有該品類數十年的營運經驗以及平行的供應鏈能力。我們將繼續提供一流的用戶體驗，以可持續的方式提升市場地位並贏得市場份額。

We see continued strong momentum in our general merchandise category with revenues up 8.7% year on year, further accelerating from the previous quarters. To highlight, supermarket revenue saw double-digit year-on-year growth in the quarter, led by strong order volume growth and improving user mindshare.

我們看到百貨類別持續保持強勁勢頭，營收年增 8.7%，比前幾季進一步加速。需要強調的是，在訂單量強勁成長和用戶認知度提高的帶動下，本季超市營收年增兩位數成長。

This momentum has persisted for two consecutive quarters now, and it's mainly attributable to our stepped up efforts to improve user experience across all aspects of product quality and selection, price competitiveness and service quality.

這一動能已連續兩季持續，主要得益於我們在產品品質和選擇、價格競爭力和服務品質等各個方面加強改善使用者體驗。

With these massive TAM, we expect supermarket two continue to be a important growth driver for us. Despite mixed top-line performance, we saw broad-based profitability improvement across many categories and segments, which collectively contributed to the record highs in both non-GAAP operating profit of RMB11.6 billion and non-GAAP net profit attributable to ordinary shareholders of RMB14.5 billion.

憑藉這些龐大的 TAM，我們預計二號超市將繼續成為我們重要的成長動力。儘管營收表現參差不齊，但我們看到多個類別和細分市場的獲利能力普遍改善，共同推動非美國通用會計準則營業利潤（116 億元人民幣）和非美國通用會計準則歸屬於普通股股東的淨利創下歷史新高。

Non-GAAP net margin in Q2 climbed to 5% for the first time. This was primarily driven by gross margin expansion to a historical level of 15.8% in the quarter with the improvement in almost every category. As we focus on price competitiveness, our gross margin has been a upward trend year on year for each and every quarter over the last two years. This underscores our improving supply chain capabilities that enable us to continually benefit from scale and efficiency.

第二季非 GAAP 淨利潤率首次攀升至 5%。這主要是由於本季毛利率擴大至 15.8% 的歷史水平，幾乎每個類別都有所改善。由於我們注重價格競爭力，過去兩年每季我們的毛利率都呈現較去年同期上升趨勢。這凸顯了我們不斷提高的供應鏈能力，使我們能夠不斷從規模和效率中受益。

Now let me walk you through the progress we made on the key drivers of our business, namely user growth and user engagement, price competitiveness and platform ecosystem. First, our user growth and user engagement.

現在，讓我向您介紹我們在業務關鍵驅動力方面取得的進展，即用戶成長和用戶參與度、價格競爭力和平台生態系統。首先，我們的用戶成長和用戶參與度。

In Q2, we saw robust user momentum in both the higher tier and larger markets. Collectively, the number of our total quarterly active customers continued to grow at a double-digit pace year on year in Q2 for the third consecutive quarter.

在第二季度，我們看到了較高和較大市場的強勁用戶勢頭。整體而言，第二季我們的季度活躍客戶總數連續第三個季度繼續以兩位數的速度年增。

I want to reiterate that our goal is to serve users across different income, spectrum and demand with the right product, the right price and service offerings. Our user growth in the quarter was broad based across user cohorts of both new users and existing users, particularly those who have stayed with us for over two years as well as plus members.

我想重申，我們的目標是為不同收入、範圍和需求的用戶提供合適的產品、合適的價格和服務。本季我們的用戶成長在新用戶和現有用戶的用戶群中都有廣泛的基礎，特別是那些在我們這裡待了兩年以上的用戶以及高級會員。

It clearly demonstrates JD's value proposition not only resonates with new users, but continues to gain mind share and wallet share from the loyal users. The addition overall shipping frequency and order volume on our platform, both grew by double digits year on year in Q2.

這清楚地表明，京東的價值主張不僅能引起新用戶的共鳴，還能持續贏得忠實用戶的關注和錢包份額。第二季度，我們平台的整體出貨頻率和訂單量較去年同期均達到兩位數成長。

We also saw average order value declined year on year as a result of soft consumer spending as well as our low touch strategy, category mix shift and wide range of three shipping service. Such user momentum is a strong proof of our effective user experience programs.

由於消費者支出疲軟以及我們的低接觸策略、品類組合轉變和廣泛的三種運輸服務，我們也看到平均訂單價值年減。這樣的使用者動力有力地證明了我們有效的使用者體驗計畫。

In Q2, we further enhanced our industry-leading trade-in program to provide users with better coordinated services, including delivery and installation of new devices and this assembly of used devices. We also extended our best price guaranteed period to up to 365 days for certain categories, starting with one team.

第二季度，我們進一步強化了業界領先的以舊換新計劃，為用戶提供更好的協調服務，包括新設備的交付和安裝以及舊設備的組裝。我們還將某些類別的最優惠價格保證期延長至長達 365 天，從一支球隊開始。

In addition, we made solid progress on programs, including free shipping free doors that pickup for return, cashback for delayed shipping and expanded their coverage from 1P to more and more 3P offerings. Other initiatives such as our supermarket categories, direct shipment from supplier to customers and 24 hour fresh milk delivery saw increasing user appreciation.

此外，我們在計劃上取得了紮實的進展，包括免費送貨、取貨退貨、延遲送貨現金返還，並將其覆蓋範圍從 1P 擴大到越來越多的 3P 產品。超市品類、供應商直送、24小時鮮奶配送等其他措施也得到了用戶的認可。

As a result, our 3P net promoter score has improved sequentially for the past two quarters. Well, our 1P NPS remains at a very high level going forward. We will continue to invest in user experience as we believe it will translate to stronger user dementia and user engagement, which are the fundamental to drive sustainable growth for JD.

因此，我們的 3P 淨推薦值在過去兩個季度連續提高。嗯，我們的 1P NPS 未來仍保持在非常高的水平。我們將繼續投資於用戶體驗，因為我們相信這將轉化為更強的用戶認知度和用戶參與度，這是推動京東可持續成長的根本。

Second, moving on to the price competitiveness, which we continue to reinforce firmly on the 1P side, we further built up -- built upon our strong supply chain capabilities to provide our users everyday low price in a sustainable way. This is the bedrock of our low price strategy.

其次，我們繼續在 1P 方面堅定地加強價格競爭力，我們進一步建立了強大的供應鏈能力，以可持續的方式為我們的用戶提供每日低價。這是我們低價策略的基石。

Well, on the 3P side, we stepped up effort to supplement the products on our platform with more value for money offerings to address a wider spectrum of user demands. In Q2, our NPS for price competitiveness continued to grow year on year on both the 1P and 3P side.

那麼，在3P方面，我們加強了力度，為我們平台上的產品提供更多物有所值的產品補充，以滿足更廣泛的用戶需求。第二季度，我們的價格競爭力 NPS 在 1P 和 3P 方面均持續較去年同期成長。

We also saw stronger momentum for lower-tier markets on our platform in terms of user base expansion, order volume growth and shipping frequency, among others. Again, 3Ps plus competitiveness is built on our strengths in lower cost, higher efficiency and best-in-class user experience. Low price is a result of our core capabilities instead of driven by subsidies. This will continue to distinguish us in the e-commerce industry.

我們也看到我們平台上低線市場在用戶群擴張、訂單量成長和出貨頻率等方面的強勁勢頭。同樣，3P+競爭力是建立在我們更低的成本、更高的效率和一流的用戶體驗方面的優勢。低價是我們核心能力的結果，而不是由補貼驅動的。這將繼續讓我們在電子商務行業中脫穎而出。

Thirdly, we have also made encouraging progress on our platform ecosystem. On the 3P side, during the quarter, we continue to provide healthy user traffic and effective supporting measures to help 3P merchants grow their businesses.

第三，我們的平台生態系統也取得了令人鼓舞的進展。 3P方面，本季我們持續提供健康的使用者流量和有效的支援措施，幫助3P商家發展業務。

3P merchants responded well to our efforts, and our active merchant base continued to expand quickly both year on year and sequentially in Q2. In addition, we also saw accelerated year-on-year growth of active buyers who purchase from 3P merchants on our platform.

3P商家對我們的努力反應良好，我們的活躍商家群體在第二季度同比和環比繼續快速擴大。此外，我們也看到在我們平台上從3P商家購買的活躍買家年增率加快。

At the same time, such users recorded higher shopping frequency in this quarter. This led to an over 20% year-on-year increase in our 3P order volume in Q2 is the fastest pace in the last two years. In terms of monetization the decline in commission revenues narrowed in the quarter as the impact of our reduced the commission fees gradually lapse.

同時，此類用戶在本季的購物頻率也較高。這使得我們第二季的3P訂單量年增超過20%，是近兩年來最快的增幅。在貨幣化方面，隨著我們降低佣金費用的影響逐漸消失，本季佣金收入的降幅收窄。

Meanwhile, JD retail's advertising revenues generated from third-party merchants recorded a double digit growth. We still have a lot to do, especially to drive better ROI for our merchants. So we reiterate our goal is to build up a thriving platform ecosystem that propels the development of our 1P business. And incentivizes 3P merchants to provide diverse product and service offerings as we aim to address a wider array of user demand.

同時，京東零售來自第三方商家的廣告收入錄得兩位數成長。我們還有很多工作要做，特別是為我們的商家帶來更好的投資報酬率。因此，我們重申我們的目標是建立一個繁榮的平台生態系統，推動我們1P業務的發展。並激勵 3P 商家提供多樣化的產品和服務，因為我們的目標是滿足更廣泛的用戶需求。

In closing our Q2 results demonstrate our firm commitment to high-quality long-term business growth. We believe this is the best approach to navigate the current market conditions. Our profitability improvement is sustainable as it is driven by our expanding scale efficiency arising from our supply chain advantages and our focus on creating value for our end users.

最後，我們第二季的業績顯示了我們對高品質長期業務成長的堅定承諾。我們相信這是應對當前市場狀況的最佳方法。我們的獲利能力改善是可持續的，因為我們的供應鏈優勢和我們專注於為最終用戶創造價值而不斷擴大的規模效率推動了我們的獲利能力提高。

At the same time, our key business drivers, including user base and engagement, price competitiveness and platform ecosystem are all trending in the right direction. We are confident that as we stay focused on executing our long-term strategies to offer lower cost, higher efficiency and better user experience. We will maintain a healthy growth of our business scale, profit and cash flow and solidify our market position in the long term.

同時，我們的關鍵業務驅動因素，包括用戶基礎和參與度、價格競爭力和平台生態系統都在朝著正確的方向發展。我們有信心，因為我們將繼續專注於執行我們的長期策略，以提供更低的成本、更高的效率和更好的用戶體驗。我們將維持業務規模、利潤和現金流的健康成長，長期鞏固市場地位。

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

接下來，我將請伊恩來了解我們的財務亮點。謝謝。

Thank you, Sandy, and hello, everyone. In Q2, we stayed committed to our strategy of building core capabilities for sustainable growth despite the short-term headwinds impacting our top line growth, our non-GAAP net profit margin hit an all-time high of 5%, with improvements across many of our categories and segments. This was driven by our expanding scale efficiency arising from our supply chain advantages and our focus on creating value for users.

謝謝你，桑迪，大家好。第二季度，儘管短期阻力影響了我們的營收成長，但我們仍然致力於建立核心能力以實現可持續成長的策略，我們的非公認會計準則淨利潤率創下了5% 的歷史新高，許多方面都有所改善我們的類別和細分市場。這是由於我們的供應鏈優勢以及我們專注於為用戶創造價值而不斷擴大的規模效率所推動的。

On the back of these high quality results, we continue to step up efforts to return value to shareholders. In Q2, we repurchased a total of 137 million Class A ordinary shares equivalent of 68 million ADS, which accounted for 4.5% of our ordinary shares outstanding as of March 31, 2024. The total value of the shares repurchased in Q2 was USD2.1 billion.

在這些高品質績效的支撐下，我們繼續加強回報股東價值。第二季度，我們總共回購了1.37 億股A 類普通股，相當於6,800 萬股美國存託股，佔截至2024 年3 月31 日已發行普通股的4.5%。總價值為2.1 美元十億。

In the first half of this year, we have bought back a total of 7.1% of our ordinary shares outstanding as of the end of 2023, the progress reflects our commitment to creating value for shareholders. With that, let me turn to our road to financial performance.

今年上半年，我們共回購了截至2023年底已發行普通股的7.1%，這項進展反映了我們致力於為股東創造價值的承諾。接下來，讓我談談我們的財務績效之路。

Our net revenue grew by 1% year on year to RMB291 billion in Q2. Breaking down the mix, product revenues was flat in the quarter, primarily due to a 5% year-on-year revenue decline in our electronics and home appliances category for the quarter. This is in line with our expectations as we had a high base for the sales of some appliances last year due to seasonal factors as well as our disciplined promotions in the quarter.

第二季淨收入年增 1% 至人民幣 2,910 億元。從產品組合來看，本季產品收入持平，主要是因為本季我們的電子和家用電器類別收入年減 5%。這符合我們的預期，因為由於季節性因素以及本季嚴格的促銷活動，我們去年某些電器的銷售基礎較高。

Our general merchandise category delivered another robust revenue growth of 9% year on year in Q2, is highest growth rate for the past two years. In particular, our supermarket category has hit double digit year on year revenue growth for two consecutive quarters, and we believe this momentum will continue for the rest of the year.

第二季度，我們的百貨品類營收再次強勁成長，較去年同期成長9%，創近兩年最高成長速度。特別是我們的超市品類收入連續兩個季度實現兩位數同比增長，我們相信這一勢頭將在今年剩餘時間內持續下去。

Service revenues grew by 6% year on year in Q2, of which marketplace and marketing revenues were up 4%, and logistics and other service revenues increased by 8%. On the marketplace and marketing commission revenues recorded a narrowed decline this quarter as the impacts of our supporting measures to merchants, including commission cuts gradually lapse.

第二季服務收入年增6%，其中市場和行銷收入成長4%，物流和其他服務收入成長8%。在市場方面，本季行銷佣金收入降幅收窄，因為我們對商家的支持措施（包括佣金削減）的影響逐漸消失。

But advertising pricing revenues delivered a healthy growth rate year on year in the quarter with a faster pace than GMV as we further optimize the traffic allocation efficiency. It's worth noticing that JD retail's advertising revenues bounce back to a double digit year-on-year growth in Q2. We see plenty of room to further grow advertising revenue as we continue to boost user growth and improve user efficiency.

但隨著我們進一步優化流量分配效率，本季廣告定價收入較去年同期呈現健康成長，成長速度快於GMV。值得注意的是，第二季京東零售的廣告收入較去年同期反彈至兩位數成長。隨著我們不斷促進用戶成長並提高用戶效率，我們看到廣告收入還有很大的進一步成長空間。

Now let's turn to our segment performance. JD retail revenues were up 1.5% year on year in Q2, reflecting the mix category performance, as previously mentioned, in terms of profit JD retail achieved a broad-based increase in profitability for the quarter, thanks to its gross margin expansion across many categories and disciplined promotions.

現在讓我們轉向我們的細分市場表現。京東零售第二季營收年增 1.5%，反映了混合品類的表現，如前所述，就利潤而言，得益於多品類毛利率的擴張，京東零售本季度盈利能力實現了廣泛增長和有紀律的晉升。

As our supply chain advantages continue to drive up scale benefits, we are able to get competitive procurement benefits and then pass on to our users while at the same time supporting our gross margin. JD retail's operating profit increased by 24% year on year to RMB10 billion, with operating margin recording a 72 bps expansion to 3.9%.

隨著我們的供應鏈優勢不斷拉動規模效益，我們能夠獲得有競爭力的採購利益，然後傳遞給我們的用戶，同時支撐我們的毛利率。京東零售營業利潤年增24%至人民幣100億元，營業利益率成長72個基點至3.9%。

Looking now to JD logistics, JD logistics revenues increased by 7.7% year on year in Q2, with healthy momentum for both internal and external revenue streams. Internal and external revenues increased by 7% and 8%, respectively.

再來看京東物流，第二季京東物流營收年增7.7%，內部和外部收入成長動能良好。內部和外部收入分別成長7%和8%。

As JD Logistics continued to benefit from its increased scale and improved operating efficiency is non-GAAP operating margin also increased by 370 bps year on year in the quarter hitting a new record of 4.9% since its listing.

隨著京東物流持續受惠於規模擴大和營運效率提升，本季非美國通用會計準則營運利潤率也較去年同期成長370個基點，創下上市以來4.9%的新紀錄。

Turning to new business in the quarter, revenue of new business was down 35% year on year, primarily due to the adjustments of the Jingix business and others.

轉向新業務，本季新業務收入年減35%，主要是由於Jingix業務等的調整。

Non-GAAP operating loss of new business was RMB695 million in the quarter compared to a gain of RMB23 million a year ago, excluding the impact of the disposal gain of JD properties, long-lived assets, the result was largely due to the increased loss Jingxi business and others.

本季新業務非 GAAP 營運虧損為 6.95 億元，去年同期為獲利人民幣 2,300 萬元，剔除京東物業、長期資產處置收益的影響，此結果主要是由於虧損增加所致京西商業等。

Moving on to our consolidated profit performance in Q2 at the group level, our gross profit grew by 11% year on year and the gross margin increased substantially year on year to an all-time high of 15.8% in Q2. It's worth pointing out that this is a nice quarter in a row that our gross margin improved on a year on year basis, both at the group level and at the JD retail level, which clearly highlights the quality of our business growth.

再看第二季集團層面的綜合利潤表現，第二季毛利年增11%，毛利率較去年同期大幅提升，達到15.8%的歷史新高。值得指出的是，這是我們連續一個不錯的季度，無論是在集團層面還是在京東零售層面，我們的毛利率都比去年同期成長，這清楚地凸顯了我們業務成長的品質。

Our non-GAAP operating profit increased by 34% year on year to a new record of RMB11.6 billion, with a strong non-GAAP operating margin of 4%, primarily driven by the improved profitability of JD retail and the JD logistics as our supply chain continue to build up scale benefits.

我們的非美國通用會計準則營業利潤年增 34%，達到人民幣 116 億元的新紀錄，非美國通用會計準則營業利潤率高達 4%，這主要得益於京東零售和京東物流盈利能力的提高。供應鏈規模效益不斷增強。

Non-GAAP net income attributable to ordinary shareholders came in at a new record of RMB14.5 billion in Q2, representing a 69% year-on-year increase. Non-GAAP net margin reached 5%, up nearly 2 percentage points from a year ago.

第二季非美國通用會計準則歸屬於普通股股東的淨利再創新高，達到人民幣 145 億元，較去年同期成長 69%。非 GAAP 淨利率達 5%，較去年同期上升近 2 個百分點。

In addition, non-GAAP diluted net income per ADS grew by 74% year on year in Q2 to RMB9.36 or USD1.29 in the quarter. Our last 12 months free cash flow as of the end of Q2 was RMB56 billion compared to RMB33 billion in the same period last year.

此外，第二季非美國通用會計準則稀釋後每股美國存託股淨利年增 74% 至 9.36 元或 1.29 美元。截至第二季末，我們過去 12 個月的自由現金流為 560 億元人民幣，而去年同期為 330 億元。

The year-over-year increase in free cash flow wasn't primarily driven by seasonality factors, our robust profit as well as moderated CapEx. By the end of Q2, our cash and cash equivalents, restricted cash and short-term investments added up to a total of RMB209 billion.

自由現金流的年增率主要不是由季節性因素、我們強勁的利潤以及適度的資本支出所推動的。截至第二季末，我們的現金及現金等價物、限制性現金及短期投資合計2,090億元。

As we head into the second half of the year, we will dedicate ourselves to accelerate top line to outpace the growth of the total retail sales of China for the full year. It takes a lot of efforts under the current environment.

進入下半年，我們將致力於加速營收成長速度，超越全年中國社會消費品零售總額的成長速度。在目前的環境下，還需要付出很大的努力。

We will also continue to invest with financial discipline, focusing on areas that contribute to our long-term competitiveness, particularly in user experience and the user growth, low price strategy and platform ecosystem that we are confident to achieve a healthy growth of our full year profit. We believe this is the right approach for the current environment and to ensure sustainable growth for the long run.

我們也將繼續遵循財務紀律進行投資，重點關注有助於我們長期競爭力的領域，特別是在用戶體驗和用戶成長、低價策略和平台生態系統方面，我們有信心實現全年的健康成長利潤。我們相信，這是適合當前環境並確保長期可持續成長的正確方法。

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

有了這個，我會把它轉回給肖恩。謝謝。

Thank you, Sandy and Ian. For the Q&A session, you are welcome to ask questions in English or Chinese and our management will answer your question in 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's statement in original language.

謝謝桑迪和伊恩。在問答環節，歡迎您用英文或中文提問，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，請參閱我們管理層的原始聲明。

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

好的。接線生，我們可以發起問答環節。

(Operator Instructions)

（操作員說明）

Kenneth Fong, UBS.

肯尼思方，瑞銀集團。

(spoken in foreign language)

（用外語說）

(interpreted) Hi, Sandy. Congrats management on a strong quarter to deliver a robust, profitable earnings growth. I have two questions. First is on our low price strategy. These recently, we start to see some news that our competitor fine tuning their strategy from low price to more GMV focus.

（翻譯）嗨，桑迪。恭喜管理層在本季表現強勁，實現了強勁的獲利成長。我有兩個問題。首先是我們的低價策略。最近，我們開始看到一些消息指出我們​​的競爭對手正在調整策略，從低價轉向更注重GMV。

JD recently also announced our Super 18 discount day recurring at each month. Can you share with us the synergy on price competitiveness and whether they have any changes to our strategy in response to the market change?

京東最近也宣布了每月定期舉行的超級18折扣日。您能否跟我們分享一下價格競爭力方面的綜效以及針對市場變化我們的策略是否有任何變化？

And second is a platform ecosystem. Over the past year, we have been onboarding volume merchants, expanding SKU, cultivating consumer mindset and built a very vibrant 3P ecosystem. And we have seen encouraging results with competitors also speeding up platform monetization followed service fee and advertising products. Can management share with us how we think about the path and timeline for speeding up our 3P monetization. Thank you.

其次是平台生態系。在過去的一年裡，我們一直在吸引大量商家，擴大SKU，培養消費者心態，並建立了一個非常活躍的3P生態系統。我們看到了令人鼓舞的結果，競爭對手也加快了平台貨幣化，其次是服務費和廣告產品。管理層能否與我們分享我們如何看待加快 3P 貨幣化的路徑和時間表？謝謝。

(spoken in foreign language)

（用外語說）

(interpreted) Thank you, Kenneth, for your question. Let me address your first question about JD's low-price strategy. So for us, our commitment to low price strategy remains steadfast. As you know, for our 20 years of growth, we have always put our focus our lower cost, higher efficiency and a user experience and the price competitiveness is very core aspects for user experience.

（翻譯）謝謝肯尼斯提出的問題。我先回答你關於京東低價策略的第一個問題。因此，對我們來說，我們對低價策略的承諾仍然堅定。大家知道，我們20年的成長，一直把重點放在降低成本、提高效率和使用者體驗上，而價格競爭力是使用者體驗非常核心的面向。

This is also why we always focus on our product price and the user experience. So user experience has always been a core of JD's mission and enhancing it remains our top priority and the most crucial aspect for JD's business growth.

這也是我們始終關注產品價格和使用者體驗的原因。因此，使用者體驗一直是京東使命的核心，而提升使用者體驗仍是我們的首要任務，也是京東業務成長最關鍵的面向。

(spoken in foreign language)

（用外語說）

(interpreted) For JD.com as a supply chain based retailer for our behind our low price, it's always our ability to control the economies of scale and the tax driven innovations. So we continuously enhance our price competitiveness without compromising the quality of our products and services. And we'd rather achieve it through our stress rather than relying on short-term subsidies that leads to a sustainable price reductions.

（解讀）對於京東作為一家基於供應鏈的零售商來說，我們低價的背後，始終是我們控制規模經濟和稅收驅動創新的能力。因此，我們在不影響產品和服務品質的情況下不斷增強我們的價格競爭力。我們寧願透過壓力來實現這一目標，而不是依靠短期補貼來實現可持續的價格下降。

(spoken in foreign language)

（用外語說）

(interpreted) So besides our 1P business, we have been working hard to attract increasing numbers of 3P merchants and working with industrial belts and white-label manufacturers to our platform. By partnering with these partners it can help us to diversify our low-priced product offerings cater to the various needs of our users.

（解讀）所以除了我們的1P業務之外，我們一直在努力吸引越來越多的3P商家，並與產業帶和白標製造商合作到我們的平台。透過與這些合作夥伴合作，可以幫助我們提供多樣化的低價產品，以滿足用戶的各種需求。

For example, by sourcing and shipping directly from manufacturers our Jingxi business is able to offer a wide range of lower priced products to our customers. So we want to emphasize here that our pursuit for low prices never come at the expense of user experience were product quality or the interests of our business partners. Instead, we achieve cost reduction to JD's scale effects and tech-driven supply chain innovations, which will effectively eliminate unnecessary costs and it genuinely reduce prices.

例如，透過直接從製造商採購和運輸，我們的京西業務能夠為我們的客戶提供各種低價產品。所以我們在這裡要強調的是，我們對低價的追求絕不是以犧牲使用者體驗、產品品質和合作夥伴的利益為代價的。而是透過京東的規模效應和科技驅動的供應鏈創新來實現成本降低，這將有效消除不必要的成本，並真正降低價格。

(spoken in foreign language)

（用外語說）

(interpreted) So we stepped up our efforts on enhancing our price competitiveness, including reducing our procurement costs on the 1P side and expanding selection of low priced products on our marketplace and launching programs like the [JPY10 billion and discount initiatives and the JPY9.9] items with free shipping. And this year, we'll continue to execute our low-price strategy and further build up our capabilities.

（解釋）因此，我們加大了提高價格競爭力的力度，包括降低 1P 方面的採購成本、擴大市場上低價產品的選擇以及推出 [100 億日元和折扣計劃以及 9.9 日元] 等計劃。 ] 免運費的商品。今年，我們將繼續執行低價策略，進一步增強我們的能力。

And the positive feedback from our users affirms the effectiveness of these efforts. And through the Super 18 initiative, we hope to further strengthen the user mindshare of our JD618 grand promotion and everyday low price to enhance their shopping experience with our low price offerings.

使用者的正面回饋肯定了這些努力的有效性。透過超級18活動，我們希望進一步加強JD618大促銷和每日低價的用戶心智佔有率，以低價產品提升他們的購物體驗。

(spoken in foreign language)

（用外語說）

(interpreted) And finally, I want to emphasize that our focus of our core business metrics remain unchanged. We believe that healthy business development requires a comprehensive evaluation of the key indicators. Under all circumstances we strive to maintain a balance between GMV profit and cash flow. We're committed to ensuring the sustainable growth of our business while creating an unparalleled user experience with price competitiveness being a important component.

（解釋）最後，我想強調的是，我們對核心業務指標的關注點保持不變。我們認為，業務健康發展需要對關鍵指標進行綜合評估。在任何情況下，我們都努力保持GMV利潤和現金流之間的平衡。我們致力於確保業務的可持續成長，同時創造無與倫比的用戶體驗，其中價格競爭力是重要組成部分。

(spoken in foreign language)

（用外語說）

(interpreted) And to answer your second question, we aim to build a thriving platform ecosystem that benefits both our 1P and 3P businesses. We believe that combining these two models create a superior shopping experience for our users.

（解釋）回答你的第二個問題，我們的目標是建立一個蓬勃發展的平台生態系統，使我們的1P和3P業務都受益。我們相信，這兩種模式的結合將為我們的用戶創造卓越的購物體驗。

Our 1P offers -- offerings attract users while 3P merchants help to address diversified needs of our users. So for us, the core of our platform ecosystem is to deliver our best-in-class user experience and monetization, it will be a natural result of our platform ecosystems growth.

我們的1P優惠－產品吸引用戶，而3P商家協助滿足用戶的多元需求。因此，對我們來說，我們平台生態系統的核心是提供一流的用戶體驗和貨幣化，這將是我們平台生態系統成長的自然結果。

(spoken in foreign language)

（用外語說）

(interpreted) As we mentioned before, that JD's platform ecosystem it's a long-term strategic initiative, and there's still great potential for us to improve. And as shared before, our development progress for the platform ecosystem have a few steps.

（解讀）前面我們提到，京東的平台生態是長期的策略舉措，我們還有很大的提升空間。如同先前所分享的，我們平台生態系的開發進展有幾個步驟。

So first, we will continue to expand our merchant base, enrich product offerings and foster merchant growth and engagement. Our 3P merchants play a very important role in housing product supply and improving user experience.

因此，首先，我們將繼續擴大我們的商家基礎，豐富產品供應並促進商家成長和參與。我們的3P商家在住房產品供應和改善用戶體驗方面發揮著非常重要的作用。

They are very important and essential component supplements to our platform. And in Q2, the number of active merchants continue to see a strong momentum -- growth momentum.

它們是我們平台非常重要且必不可少的組成部分。而在第二季度，活躍商家數量持續呈現強勁的動能－成長動能。

(spoken in foreign language)

（用外語說）

(interpreted) At the same time we pay close -- we closely monitor the key metrics of users, including the numbers of users who purchase from our 3P merchants and the order -- 3P order volume and GMV generated from 3P, et cetera. In Q2, both the number of repeat transactions, users and orders experienced accelerated growth with 3P GMV growth outpacing our total GMV growth.

（解釋）同時我們密切注意用戶的關鍵指標，包括從我們的3P商家購買的用戶數量和訂單量——3P訂單量和3P產生的GMV等等。第二季度，重複交易數、用戶數和訂單數均加速成長，3P GMV 成長超過總 GMV 成長速度。

(spoken in foreign language)

（用外語說）

(interpreted) And eventually we will see a natural and organic growth of our 3P monetization.

（解釋）最終我們將看到 3P 貨幣化的自然有機成長。

(spoken in foreign language)

（用外語說）

(interpreted) At the current stage, we are observing some positive developments in our marketplace, which includes first of all in Q2, our commission revenue showed steady improvement recovery and the impact of our supportive measures to 3P merchants since last year, including reduced commissions and the removal of platform usage fees is gradually diminishing.

（解讀）現階段，我們觀察到市場出現了一些積極的發展，包括首先在第二季度，我們的佣金收入呈現出穩步改善的復甦，以及去年以來我們對3P商家的支持措施的影響，包括減少佣金而平台使用費的取消也逐漸減少。

So we anticipate that commission revenue will recover and increase in the second half of the year as the 3P GMV continues to grow. And for advertising revenue in Q2, it grew faster than GMV. We believe advertising is merchant response to the platform's performance. So we have been enhancing our advertising products and models and to help our brands and SME merchants to grow their business on our platform. So this in turn, we believe will drive higher advertising revenues to us.

因此，我們預計隨著 3P GMV 的持續成長，下半年佣金收入將恢復並增加。而就第二季的廣告收入而言，其成長速度快於GMV。我們相信廣告是商家對平台表現的反應。因此，我們一直在增強我們的廣告產品和模式，幫助我們的品牌和中小企業商家在我們的平台上發展業務。因此，我們相信這反過來將為我們帶來更高的廣告收入。

(spoken in foreign language)

（用外語說）

(interpreted) So we remain committed to executing our strategy and plan to advance our platform ecosystem. So in the long term, our ecosystem will continue to evolve and improve. We expect a proportion of 3P orders and GMV to surpass that of our 1P business. So consequentially revenues from commissions and advertising will grow in a healthy manner. Thank you.

（解釋）因此，我們仍然致力於執行我們的策略和計劃，以推進我們的平台生態系統。因此從長遠來看，我們的生態系統將不斷發展和完善。我們預計 3P 訂單和 GMV 的比例將超過 1P 業務。因此，佣金和廣告收入將健康成長。謝謝。

Ronald Keung, Goldman Sachs.

姜羅納德，高盛。

(spoken in foreign language)

（用外語說）

(interpreted) Congratulations management on the very strong second quarter profit. And so as we think about the optimal balance between growth and profitability Q2 seem to be more skewed towards profitability that beat most in three KPIs.

（解釋）恭喜管理層第二季的利潤非常強勁。因此，當我們考慮成長和獲利能力之間的最佳平衡時，第二季度似乎更傾向於在三個 KPI 中擊敗大多數人的獲利能力。

So as we look into annual basis into the second half we -- how are we balancing the optimal target of these three KP's for second half? And would this lead to any changes for the full year, given the profit KPI has exceeded expectations for the first six months?

因此，當我們研究下半年的年度基礎時，我們如何平衡下半年這三個 KP 的最佳目標？鑑於前六個月的利潤KPI已超出預期，這是否會導致全年任何變化？

And for the second half, we see more companies focusing on talking about GMV growth. So as we target this GMV growth? How do we see or foresee the second half e-commerce competitive landscape into the second half? Thank you.

下半年，我們看到更多的公司專注於談論 GMV 成長。那我們的目標是 GMV 成長嗎？我們如何看待或預見下半年電商競爭格局？謝謝。

(spoken in foreign language)

（用外語說）

(interpreted) And to answer your first question about our growth and profits at JD.com, we believe that sustainable growth is driven by delivering an exceptional user experience. And JD is committed to continuously enhancing users' satisfaction and enhancing our core capabilities in our 1P and logistics services.

（解釋）為了回答您關於京東的成長和利潤的第一個問題，我們相信永續成長是透過提供卓越的使用者體驗來驅動的。京東致力於不斷提升用戶滿意度，並增強我們在1P和物流服務方面的核心能力。

And our profits are the result of our ongoing optimization in cost and efficiency. So for the evaluation of our business performance, we will always strive to strike a balance among GMV profits and cash flow to ensure healthy growth of our business.

我們的利潤是我們不斷優化成本和效率的結果。所以在評估我們的業績時，我們始終會努力在GMV利潤和現金流之間取得平衡，以確保我們業務的健康成長。

(spoken in foreign language)

（用外語說）

(interpreted) So our performance in Q2 demonstrates the high quality growth we have achieved. And as we previously communicated, our revenue growth in Q2 slowed due to a challenging comparison with last year, particularly in summer categories like air conditioners.

（解讀）所以我們第二季的業績反映了我們實現了高品質的成長。正如我們之前所傳達的，由於與去年相比具有挑戰性，我們第二季度的收入成長放緩，特別是在空調等夏季類別中。

However, we observed a strong operational performance with net income reaching a historic high of RMB14.5 billion and net profit margin reaching 5% for the first time. A key driver of this margin improvement was the enhancement of supply chain efficiency, leading to a significant improvement year-on-year increase in gross profit margin, which grew by 137 basis points in Q2.

然而，我們觀察到強勁的經營業績，淨利達到人民幣145億元的歷史新高，淨利率首次達到5%。利潤率改善的關鍵驅動因素是供應鏈效率的提升，導致毛利率年比顯著改善，第二季毛利率成長了137個基點。

And notably, our gross profit margin has improved consistently for nine consecutive quarters since Q2 2022. These results reflect JD's commitment to high-quality growth. Our business units continue to gain operating experience and are dedicated to investing in long-term sustainable competitive advantages and ROI to balance growth and profitability.

值得注意的是，自 2022 年第二季以來，我們的毛利率連續九個季度持續提高。我們的業務部門持續獲得營運經驗，並致力於投資長期可持續的競爭優勢和投資報酬率，以平衡成長和獲利能力。

(spoken in foreign language)

（用外語說）

(interpreted) And secondly, in the second half of the year, we will adopt a more dynamic approach to balancing growth and profitability. We will continue to invest in areas such as enhancing user experience, new user acquisition and expanding market share.

（解讀）第二，下半年我們會採取更動態的方式來平衡成長和獲利。我們將繼續在增強用戶體驗、獲取新用戶和擴大市場份額等領域進行投資。

So our business -- at the same time, our business units will further strengthen their operational capabilities and efficiency, driving improvements in supply chain efficiency across the board. And these advancements enable us to offer more competitive priced products to our users while enhancing overall operating efficiency and profitability for the company.

所以我們的業務，同時我們的業務部門也會進一步加強營運能力和效率，推動供應鏈效率的全面提升。這些進步使我們能夠為用戶提供價格更具競爭力的產品，同時提高公司的整體營運效率和獲利能力。

(spoken in foreign language)

（用外語說）

(interpreted) Looking ahead to the full year, our goal is to achieve a growth rate that outpaced overall market retail sales of consumer goods. As we continue to invest with a disciplined user experience and market share expansion. We expect the JD group's profits and profit margins to increase year on year.

（解讀）展望全年，我們的目標是實現社會消費品零售總額成長率高於市場整體成長速度。隨著我們繼續投資於嚴格的用戶體驗和市場份額的擴大。我們預計京東集團的利潤和利潤率將比去年同期成長。

In the long run, we see a positive cycle between our business growth and profitability rather than contradiction. JD's business model is built on a robust supply chain and focus on the user experience. We will make targeted investments in these areas to enhance user satisfaction and strengthen our market position, ultimately achieving long-term sustainable profits. We're confident in our ability to reach the goal of achieving high single digit profit margin over the long term.

從長遠來看，我們的業務成長和獲利能力之間是良性循環而不是矛盾。京東的商業模式建立在強大的供應鏈之上，並專注於使用者體驗。我們將在這些領域進行有針對性的投資，以提高用戶滿意度並鞏固我們的市場地位，最終實現長期可持續利潤。我們對實現長期高個位數利潤率的目標充滿信心。

(spoken in foreign language)

（用外語說）

(interpreted) So let me address our second question about the market competition. In our opinion, China has the world's largest e-commerce market and the most mature infrastructure to support its continued growth. We believe that this market will keep expanding for a long time.

（解釋）那麼讓我來回答我們關於市場競爭的第二個問題。我們認為，中國擁有全球最大的電子商務市場和最成熟的基礎設施來支持其持續成長。我們相信這個市場將在很長一段時間內持續擴大。

At the same time, JD retail's unique and robust 1P supply chain capabilities, combined with our self-operated logistics services from a strong moat for our business success. So these strengths enable us to deliver a superior user experience while excelling -- while being excel in cost and efficiency.

同時，京東零售獨特而強大的1P供應鏈能力，與我們自營的物流服務結合，為我們的商業成功提供了強大的護城河。因此，這些優勢使我們能夠提供卓越的用戶體驗，同時在成本和效率方面表現出色。

(spoken in foreign language)

（用外語說）

(interpreted) So first, on China's retail market side, particularly the online sector, it offers tremendous opportunities for growth. So while we examine online penetration from the perspective of product categories, user demographics and business innovations, there remains significant room for expansion.

（解讀）首先，中國零售市場方面，特別是線上領域，提供了巨大的成長機會。因此，雖然我們從產品類別、使用者人口統計和業務創新的角度審視線上滲透率，但仍有很大的擴張空間。

So there is substantial potential for online penetration in categories such as supermarket and home goods, where the online sales still have a lot of opportunity to continue to grow. Even in some categories like 3C products or home appliances, which are traditionally we consider our standard products and they already have a high online penetration rate.

因此，超市、家居用品等品類的線上滲透潛力巨大，線上銷售仍有很大機會持續成長。即使是一些品類，例如3C產品或家電，這些傳統上我們認為是我們的標準產品，它們已經有很高的線上滲透率。

(spoken in foreign language)

（用外語說）

(interpreted) So on the demographics for the young generation, they grow up with them online shopping, they are already highly customized accustomed and reliant on e-commerce platforms. And now the older generations are also embracing online shopping, creating new opportunities for growth.

（解讀）所以從年輕一代的人口結構來看，他們是伴隨著網購長大的，他們已經高度客製化的習慣和依賴電商平台了。現在，老一輩也開始擁抱網路購物，創造了新的成長機會。

At JD, we have observed the strong user growth in both these two user groups with their growth rates surpassing our overall user base growth.

在京東，我們觀察到這兩個用戶群的用戶成長強勁，其成長率超過了我們整體用戶群的成長。

(spoken in foreign language)

（用外語說）

(interpreted) Additionally, the emergence of new online shopping formats continue to drive increased online penetration. So overall, China's online retail of physical goods is outpacing the broader retail market as we observed.

（解釋）此外，新的線上購物模式的出現繼續推動線上滲透率的提高。因此，總體而言，正如我們觀察到的，中國實體商品的線上零售正在超越更廣泛的零售市場。

(spoken in foreign language)

（用外語說）

(interpreted) And on this e-commerce market competition landscape, we see on China's e-commerce industry is vast and dynamic with room for various players, employing different models, features and competitive advantages.

（解讀）從這個電子商務市場的競爭格局來看，中國的電子商務產業空間廣闊、充滿活力，不同的參與者有不同的模式、特性和競爭優勢。

We believe that the essence of retail will always boil down to two fundamental questions that are how to enhance user experience and how to achieve win-win outcomes with partners. At JD.com, we are committed to these long-term goals by continuously optimizing our cost efficiency and user experience.

我們認為，零售的本質始終歸結為兩個基本問題：如何提升使用者體驗以及如何與合作夥伴實現共贏。在京東，我們致力於透過不斷優化成本效率和使用者體驗來實現這些長期目標。

(spoken in foreign language)

（用外語說）

(interpreted) So JD's key differentiators that separate us from others on our cost efficiency and user experience, driven by our 1P retail business and our self-operated logistic services. And over the past year, we've seen -- we have intensified our efforts to strengthen our supply chain capabilities and enhance our user experience.

（解釋）因此，京東的關鍵區別在於我們的成本效率和用戶體驗，這是由我們的 1P 零售業務和自營物流服務推動的。在過去的一年裡，我們看到——我們加大了力度，加強我們的供應鏈能力並增強我們的用戶體驗。

And in Q2, we continued to see double digit user growth, led by our record users and long term core users with over two years of engagement with us and users the shopping frequency also maintain that double-digit growth. So overall, we are confident China's e-commerce market growth. Thank you.

在第二季度，我們繼續看到兩位數的用戶成長，由我們的創紀錄用戶和與我們互動超過兩年的長期核心用戶帶動，用戶的購物頻率也保持兩位數的成長。因此整體而言，我們對中國電子商務市場的成長充滿信心。謝謝。

Thank you, Ronald. Next question, please.

謝謝你，羅納德。請下一個問題。

Alicia Yap, Citigroup.

艾莉西亞葉 (Alicia Yap)，花旗集團。

Hello. Thank you. (spoken in foreign language)

你好。謝謝。 （用外語說）

(interpreted) So two questions. First is that given the latest announcement of central government support of the push forward the appliance trade initiative and how and what are JD's plans on cooperating with the local government and also the appliance suppliers understood that JD has been participating and facilitating the trading process during the normal routine demand.

（解釋）所以兩個問題。首先是，鑑於中央政府最新宣布支持推進家電以舊換新計劃，京東與當地政府有何合作計劃以及如何合作，家電供應商也了解京東在家電交易期間一直在參與和促進交易流程。

How much incremental or what can we expect from the later portion of the central government to translate to the JD's top line growth in the coming quarters. And then second question, in light of the soft consumption sentiment, will JD shift more focus to enhance the FMCG SKU offering, with the innovative pricing promotion to boost the consumption demand for the FMCG product, given that part of that is actually more resilient into the weak economy? Thank you.

中央政府後期的增量有多少，或者我們可以期待什麼，可以轉化為京東未來幾季的收入成長。第二個問題，鑑於消費情緒疲軟，京東是否會更加重視增強快消品 SKU 的供應，透過創新的定價促銷來刺激快消品的消費需求，因為這部分實際上更具彈性。謝謝。

(spoken in foreign language)

（用外語說）

(interpreted) Thank you, Alicia, for your question. So from our JD's experience has shown that promoting trading is an effective way to boost a big ticket consumption. We have been actively implementing our relevant initiative for some time and building strong partnerships with our brand partners and accumulating valuable experience in this aspect.

（翻譯）謝謝艾莉西亞提出的問題。所以從我們京東的經驗來看，促進交易是拉動大額消費的有效途徑。一段時間以來，我們積極落實相關舉措，與品牌合作夥伴建立了牢固的合作關係，累積了寶貴的經驗。

We are highly support and to welcome the government's support in promoting trading’s and other measures to stimulate consumption.

我們高度支持並歡迎政府支持促進貿易和其他刺激消費的措施。

(spoken in foreign language)

（用外語說）

(interpreted) And on the policy level, as you mentioned that in the end of July, the NDRC has issued a supportive policies under trading services and home appliances is a key area eligible for these supportive measures, and we expect certain policies will be rolled out very soon.

（解讀）政策層面，正如您所提到的，7月底發改委出台了服務貿易方面的支持政策，家電是支持措施的重點領域，我們預計部分政策將會陸續落地。

(spoken in foreign language)

（用外語說）

(interpreted) So currently for the implementation, we have been working with the local governments and various brands to carry out the implementation of the supportive policies and subsidies. And since the release of the trading actions in our action plan in March, we have been establishing partnerships with various provinces and city governments.

（解讀）所以目前在落實方面，我們一直在跟地方政府、各個品牌商一起進行扶持政策和補貼的落實。自3月行動計畫中的貿易行動發布以來，我們一直在與各省市政府建立合作關係。

And we have been selected as the designated platform to distribute government subsidies and applying them to a product that meets the policy criteria. And so far, our cooperation models and promotional efforts have yielded some positive results.

我們已被選為政府補貼的指定平台，並將其應用於符合政策標準的產品。目前，我們的合作模式和推廣工作已經取得了一些正面成果。

(spoken in foreign language)

（用外語說）

(interpreted) And with the central government's recent policy announcement, we will build on our solid collaboration foundation with the government and the partners to further collaborate on the trade in initiatives, helping distribute subsidies to the local consumers both on the system level, on the processes level, we are very ready, for example, with the technical back ends and on every front.

（解讀）隨著中央政府最近的政策出台，我們將在與政府和合作夥伴的堅實合作基礎上，進一步在以舊換新方面開展合作，幫助當地消費者從制度層面、服務層面上發放補貼。我們已經做好了準備，例如，在技術後端和各個方面。

(spoken in foreign language)

（用外語說）

(interpreted) Not only our collaboration online, we are also leveraging our offline presences, including our JD's so home appliances experience stores chain stores for home appliances to provide all kinds of services on the trade in promotions to our consumers across the country.

（解讀）不僅是線上的合作，我們也利用線下的管道，包括我們京東的家電體驗店、家電連鎖店，為全國的消費者提供各種貿易促銷服務。

(spoken in foreign language)

（用外語說）

(interpreted) At the same time, we have partnered with brands to launch JD home appliance trade in Ireland and introducing trade-in in subsidy activities across 20 provinces and cities. And through this online, we can offer cost saving products and convenient services to our customers in different regions.

（解讀）同時，我們與品牌合作在愛爾蘭推出京東家電以舊換新，並在全國20個省市推出以舊換新補貼活動。透過這種線上方式，我們可以為不同地區的客戶提供節省成本的產品和便利的服務。

(spoken in foreign language)

（用外語說）

(interpreted) And to circle back to your question from our business perspective, this time, the release of the new policies we do expect this will be effective to drive the growth of our home appliance industry. And for JD.com, it will provide certain incremental and we anticipate that the sales share from trade-in on JD platform will increase in the near future.

（解讀）回到你的問題，從我們企業的角度來看，這次新政策的發布我們確實預計會有效帶動我們家電行業的成長。而對於京東來說，將會提供一定的增量，我們預期京東平台以舊換新的銷售份額在不久的將來將會增加。

And we will also leverage the trading service, our trade in service capabilities on the systems and the processes to maximize this opportunity to implement relevant measures and working alongside local governments and manufacturers to further stimulate home appliance consumption. Thank you.

我們也會利用交易服務、系統和流程上的服務貿易能力，最大限度地利用這個機會來落實相關措施，與地方政府和製造商一起進一步刺激家電消費。謝謝。

(spoken in foreign language)

（用外語說）

(interpreted) And for the second question on supermarket category, we've made some good progress in enhancing our operational capabilities in the supermarket categories, and it has resulted from healthy revenue growth.

（解讀）關於第二個問題，關於超市品類，我們在超市品類的營運能力提升方面取得了一些不錯的進展，這是收入健康成長的結果。

And despite intense competition and you see this the supermarket categories very decentralized and dispersed across the market. Looking at our operational improvements, we still have very strong confidence in the long-term potential of this category.

儘管競爭激烈，你會發現超市的品類非常分散且分散在整個市場。看看我們的營運改進，我們對該類別的長期潛力仍然充滿信心。

And by leveraging JD's unique strengths, we believe JD supermarkets will continue to help us to enhance user experience and expand market share. It will serve as a key growth driver for the whole company.

透過利用京東的獨特優勢，我們相信京東超市將繼續幫助我們提升用戶體驗並擴大市場份額。它將成為整個公司的關鍵成長動力。

Okay. Thank you, Alicia. Let's have the last question, please.

好的。謝謝你，艾莉西亞。請讓我們問最後一個問題。

Thomas Chong, Jefferies.

托馬斯莊，杰弗里斯。

(spoken in foreign language)

（用外語說）

(interpreted) Thank you, management for taking my question. My first question is about earnings outlook. Can management share your view about the trend in earnings and margins outlook over the next few years? And my second question is about shareholders' return. Can management share your latest thoughts about share repurchase and dividends? Thank you.

（解釋）謝謝管理層回答我的問題。我的第一個問題是關於獲利前景。管理階層能否分享您對未來幾年獲利和利潤前景趨勢的看法？我的第二個問題是關於股東回報。管理階層能否分享您對股票回購和股利的最新想法？謝謝。

(spoken in foreign language)

（用外語說）

(interpreted) And thank you, Thomas. To answer your question, our mid to long term goal to achieve a profit margin in high single digit, and we are optimistic about reaching this target. And our key growth driver includes the growth of our platform ecosystem, category mix optimization and profit margin improvements across various categories.

（翻譯）謝謝你，托馬斯。回答你的問題，我們的中長期目標是實現高個位數的利潤率，並且我們對實現這個目標持樂觀態度。我們主要的成長動力包括平台生態系統的成長、品類組合優化、以及各品類的利潤率提高。

(spoken in foreign language)

（用外語說）

(interpreted) So for JD group's Q2 net profit hit a historic high of [JPY14.5 billion] with a net profit margin of 5%, driven largely by improved gross profit margins from in-house to supply chain efficiency. And we see significant potential for future -- for further margin expansion in the long term.

（解讀）因此，京東集團第二季淨利創下歷史新高[145億日圓]，淨利潤率為5%，這主要得益於內部毛利率和供應鏈效率的提高。我們看到了未來的巨大潛力——從長遠來看，利潤率進一步擴大。

(spoken in foreign language)

（用外語說）

(interpreted) And as our business and operational efficiency continue to improve. We our belief that we will achieve a high single digit profit margin in the long term.

（解釋）並且隨著我們的業務和營運效率不斷提高。我們相信，從長遠來看，我們將實現高個位數的利潤率。

(spoken in foreign language)

（用外語說）

(interpreted) JD's long-term profitability will be anchored by our strong market position and focus on user experience. By continuously investing in our product price and service, we're able to enhance users' experience and satisfaction.

（解讀）京東的長期獲利能力將基於我們強大的市場地位和對使用者體驗的關注。透過持續投資我們的產品價格和服務，我們能夠增強使用者的體驗和滿意度。

So as to drive up our GMV growth to expand market share. And by leveraging our increasing scale and market share, we further improve our supply chain efficiency, which in turn will boost healthy profit growth, allowing us to reinvest and enhance user experience.

從而帶動我們的GMV成長，擴大市場佔有率。透過利用不斷擴大的規模和市場份額，我們進一步提高供應鏈效率，從而促進利潤的健康成長，使我們能夠進行再投資並增強用戶體驗。

(spoken in foreign language)

（用外語說）

(interpreted) So to summary, JD's profitability has ample room for growth, driven by an improved -- driven by higher 3P contributions and improved category mix and margin potential within each category. So our long-term profit margin target remains set in the high single digits.

（解讀）綜上所述，京東的獲利能力有充足的成長空間，這是由更高的 3P 貢獻以及每個類別內的品類組合和利潤潛力的改善所推動的。因此，我們的長期利潤率目標仍然設定在較高的個位數。

(spoken in foreign language)

（用外語說）

(interpreted) And on the return to shareholders, we remain committed to return to shareholders. And for Q2, we repurchased approximately USD2.1 billion worth of shares across the US and Hong Kong stock markets equivalent to 137 million ordinary shares, or 68.4 million ADS, representing approximately 4.5% of our outstanding shares as of March 31, 2024.

（解釋）關於股東回報，我們仍然致力於回報股東。第二季度，我們在美國和香港股市回購了價值約21 億美元的股票，相當於1.37 億股普通股，即6,840 萬股美國存託股，約佔截至2024 年3 月31 日我們已發行股票的4.5%。

(spoken in foreign language)

（用外語說）

(interpreted) In the first half of the year, we completed share buybacks totaling USD3.3 billion, equivalent to 224 million ordinary shares or 112 million ADS accounting for 7.1% of our total outstanding shares as of the end of 2023.

（解讀）上半年，我們完成了總額33億美元的股票回購，相當於2.24億股普通股或1.12億股美國存託股，佔截至2023年底流通股總數的7.1%。

Additionally, we completed our USD1.2 billion annual dividend payment plan in Q2, returning a total of around USD4.5 billion to shareholders through dividend and pay back in the first half of the year.

此外，我們在第二季完成了12億美元的年度股息支付計劃，上半年透過股息和回報向股東返還了約45億美元。

(spoken in foreign language)

（用外語說）

(interpreted) For future plan for shareholder returns, we will continue our repurchase plan with the goal of gradually reducing the total number of outstanding shares over the long term, we will also maintain dividend payments based on profits, ensuring that shareholders benefit from the company's value creation. Thank you.

（解讀）對於未來的股東回報規劃，我們將繼續實施回購計劃，目標是長期逐步減少流通股總數，同時我們也將維持以盈利為基礎的股息支付，確保股東從公司收益中獲益。創造。謝謝。

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

我們現在電話會議即將結束。我將把電話轉給京東張肖恩（Sean Zhang）做總結發言。

Thank you, everyone, for joining us on 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 we look forward to talking with you again next quarter. Thank you very much.

感謝大家今天加入我們的電話會議，並感謝你們提出的問題。如果您還有其他問題，請聯絡我和我們的團隊。感謝您對京東的關注，我們期待下個季度再次與您交談。非常感謝。

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

感謝您參加今天的電話會議。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. The interpreter was provided by the company sponsoring this event.

此文字記錄中標記（翻譯）的部分是由現場通話中的口譯員說出的。口譯員由贊助本次活動的公司提供。