京東 (JD) 2024 Q3 法說會逐字稿

Hello, and thank you for standing by for JD.com's third quarter 2024 earnings conference call. (Operator Instructions) Today's conference is being recorded. (Operator Instructions) I would now like to turn the meeting over to your host for today's conference, Sean Zhang, Director, Investor Relations. Please go ahead.

您好，感謝您出席京東 2024 年第三季財報電話會議。 （操作員指示）今天的會議正在錄音。 （操作員指示）我現在想將會議轉交給今天會議的東道主，投資者關係總監 Sean 張。請繼續。

Thank you. Good day, everyone. Welcome to JD.com's third quarter 2024 earnings conference call. For today's call, CEO of JD.com, Ms. Sandy Xu, will kick off with her opening remarks; and our CFO, Mr. Ian Shan, will discuss the financial results, and then we'll open the call to questions from analysts.

謝謝。大家好。歡迎參加京東 2024 年第三季財報電話會議。在今天的電話會議上，京東執行長徐珊迪女士將致開幕詞；我們的財務長單山先生將討論財務業績，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 that will include forward-looking statements, and 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复僅反映了管理層截至今天的觀點，其中包括前瞻性陳述，請參閱我們網站上的收益新聞稿中的最新安全港聲明，該聲明適用到這個電話。

We will discuss certain non-GAAP 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原則措施。另請參閱收益新聞稿中非公認會計準則衡量標準與可比較公認會計準則衡量標準的調節表。另請注意，除非另有說明，本次電話會議中提到的所有數字均以人民幣為單位。

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

現在讓我將電話轉給我們的執行長桑迪。

Thank you, Sean. Hello, everyone. Thanks for joining us today to discuss our Q3 2024 results. We had a solid Q3 with improved operating and financial results. Our top line growth accelerated sequentially.

謝謝你，肖恩。大家好。感謝您今天加入我們討論 2024 年第三季的業績。我們的第三季表現強勁，營運和財務表現有所改善。我們的營收成長持續加速。

Our active user base and shopping frequency expanded with stronger momentum, and our bottom line achieved another substantial uplift.

活躍用戶數和購物頻次成長勢頭強勁，淨利潤再次大幅提升。

As part of this achievement is our relentless focused on building supply chain capabilities and logistics infrastructure, which enable us to continuously unleash strength, delivering lower cost, higher efficiency and best-in-class user experience. This is the key competitive strength that we are focused on as we face ever-changing (inaudible) and competitive landscape.

這項成就的一部分是我們對供應鏈能力和物流基礎設施建設的不懈關注，這使我們能夠不斷釋放實力，提供更低的成本、更高的效率和一流的用戶體驗。這是我們面對不斷變化（聽不清楚）的競爭格局時所關注的關鍵競爭優勢。

JD Citi has been dedicated to establishing core supply chain capabilities since day one, along with putting significant efforts into building out retail and logistics infrastructures around the country to better serve consumers and contribute to the real economy of local areas nationwide. This enables us to play a key role in contributing in the treating program, both online and offline. CV is best positioned to support this program not only with our strong user mind share in home appliance and 3C categories, but more importantly, with our stretching capabilities and our fulfillment infrastructure.

京東花旗從成立之初就致力於打造核心供應鏈能力，大力建立全國各地的零售和物流基礎設施，更好地服務消費者，為全國地方實體經濟做出貢獻。這使我們能夠在線上和線下的治療計劃中發揮關鍵作用。 CV 最有能力支持該計劃，不僅因為我們在家電和 3C 類別中擁有強大的用戶心智份額，更重要的是因為我們的擴展能力和履行基礎設施。

Consumers are attracted to JD's platform of further wealth of product selections. Our integrated service covering every step from dismantling shipment to installation of the heavy, bulky appliances and smooth checkout process using trade-in subsidies. The trading program has proven to be very effective in unlocking consumption potential and driving the technological upgrade of the entire industry chain, and we expect to continue to play our role in this effort to better serve customers and suppliers, stimulate consumption and promote healthy industry development.

京東平台進一步豐富的產品選擇吸引了消費者。我們的綜合服務涵蓋從拆卸運輸到安裝笨重電器的每個步驟，並利用以舊換新補貼實現順利的結帳流程。事實證明，該交易計劃對於釋放消費潛力、帶動全產業鏈技術升級非常有效，我們期待繼續發揮作用，更好地服務客戶和供應商，刺激消費，促進行業健康發展。

Turning to general merchandise category. In Q3, its revenues increased by 8% year-on-year, a healthy momentum that has been sustained for three consecutive quarters this year. It was primarily attributable to our supermarket category, which delivered another double-digit revenue growth year-on-year in the quarter. As a key growth driver for us, the supermarket category continued to enrich its product portfolio in the quarter to cover different price tiers. It has also launched many initiatives such as direct shipments from suppliers to customers that gained strong traction among our users.

轉向日用百貨類。第三季營收年增8%，今年已連續三季維持良好動能。這主要歸功於我們的超市類別，本季該類別的營收將年比再次實現兩位數成長。作為我們的主要成長動力，超市類別在本季繼續豐富其產品組合，以涵蓋不同的價格層。它還推出了許多舉措，例如從供應商直接向客戶發貨，這些舉措在我們的用戶中獲得了強大的吸引力。

As such, with improving user experience, we saw a healthy increase in both user base and user engagement in supermarket, particularly with a robust 20% increase in shopping frequency during the quarter. Also notably, within our fashion category, apparel and sports and outdoors both recorded double-digit revenue growth year-on-year during the quarter, thanks to our efforts to enrich product selection, enhance user experience and drive user mind share of shopping for clothing on JD.

因此，隨著用戶體驗的改善，我們看到超市的用戶群和用戶參與度都健康成長，特別是本季購物頻率強勁成長了 20%。另外值得注意的是，在我們的時尚品類中，得益於我們努力豐富產品選擇、增強用戶體驗並提高用戶購買服裝的心智份額，本季度服裝和運動戶外收入同比均錄得兩位數增長在京東。

It's clear that our supply chain strength is at the core of our progress in operations and financials. In addition to that, going forward, we will continue to focus on a few key areas to drive our high-quality, sustainable growth in the long run. First, user growth and engagement.

顯然，我們的供應鏈實力是我們營運和財務進步的核心。除此之外，未來我們將持續聚焦幾個關鍵領域，推動公司長期高品質、永續成長。首先，用戶成長和參與度。

We've seen a set of encouraging results resulting from our efforts and investments in users. The number of our quarterly active customers has been growing double-digit rate year-on-year for the last four quarters in a row with Q3 being the highest. The growth was distributed across marketeers and user groups, including new and existing users.

我們在用戶方面的努力和投資取得了一系列令人鼓舞的成果。我們的季度活躍客戶數量連續四個季度年增兩位數，其中第三季最高。成長分佈在行銷人員和用戶群中，包括新用戶和現有用戶。

In addition, in Q3, new shopping frequency maintained double-digit year-on-year growth, primarily driven by our increased price competitiveness, tax (inaudible) mix shift and the wider coverage of free shipping service. Our JD Plus program is on the right track as we saw a set of metrics, including active user number and shopping frequency continue to improve. All this progress in user growth and engagement really speaks to the fact that we've been providing best-in-class experience to users of different income spectrums and demands with the right product, price and service offerings.

此外，第三季新增購物頻率較去年同期保持兩位數成長，主要是由於我們的價格競爭力增強、稅收（聽不清楚）組合轉變以及免費送貨服務覆蓋範圍更廣。我們的京東Plus計畫正走在正確的軌道上，我們看到包括活躍用戶數量和購物頻率在內的一系列指標持續改善。用戶成長和參與度的所有這些進步確實說明了這樣一個事實：我們一直在透過合適的產品、價格和服務為不同收入範圍和需求的用戶提供一流的體驗。

On such robust momentum, we will continue to invest with discipline in user growth and user experience. The addition to users, let me share some progress we made on price competitiveness and platform ecosystem. We further improved our price competitiveness as we continue to leverage on the strength of our 1P supply chain capabilities as well as unleash 3P product offerings and white label goods.

憑藉如此強勁的勢頭，我們將繼續在用戶成長和用戶體驗方面進行嚴格的投資。除了用戶之外，我來分享我們在價格競爭力和平台生態方面取得的一些進展。隨著我們繼續利用 1P 供應鏈能力的優勢以及釋放 3P 產品和白標商品，我們進一步提高了價格競爭力。

As a result, we are better able to serve both our existing users and new users, and our NPS for price competitiveness increased year-on-year for another quarter. Particularly, we saw a deeper trajectory of user base expansion and order volume growth in lower tier markets compared to that of higher tier markets on our platform.

因此，我們能夠更好地服務現有用戶和新用戶，並且我們的價格競爭力 NPS 又一個季度同比增長。特別是，與我們平台上的較高層級市場相比，我們看到較低層級市場的用戶群擴張和訂單量成長有更深的軌跡。

Now price is the very essence of retail, and our commitment to that will never change. To reinforce our everyday low-price user mind share, we have launched a series of campaigns such as the monthly Super 18 sales that offers a selection of discounted products on the 18th of every month, the weekly Black Friday offering deals that mainly cover supermarket category, the daily late-night flash sales (inaudible) offering deep discounts for limited time and limited supply as well as the half price closing promotions.

現在價格是零售的本質，我們對此的承諾永遠不會改變。為了鞏固我們日常低價的用戶心智份額，我們推出了一系列活動，例如每月 18 日提供精選折扣產品的每月 Super 18 促銷活動、每週的黑色星期五提供主要涵蓋超市類別的促銷活動，每日深夜閃購（聽不清楚）提供限時、限量供應的大幅折扣以及半價收盤促銷。

These offerings are highly welcomed by our users. Last but not least, we also continue to make progress on our platform ecosystem. We on-boarded more 3P merchants during the quarter, particularly SMEs and both from industry out to expand our product offerings at different price tiers. As such, our active merchant base maintained a very healthy year-on-year growth.

這些產品受到我們用戶的高度歡迎。最後但並非最不重要的一點是，我們還在平台生態系統上繼續取得進展。我們在本季吸收了更多的 3P 商家，特別是中小企業和產業外商家，以擴大我們在不同價格層面的產品供應。因此，我們的活躍商戶基礎維持了非常健康的年成長。

More importantly, we also made solid progress in the quarter in user engagement, which led to an accelerated year-on-year growth in three key order volumes and the number of users who purchased 3P products on our platform, both of which reached to record high growth levels in Q3. Our NPS for 3P offerings rose year-on-year as well.

更重要的是，本季我們在用戶參與度方面也取得了紮實的進展，這使得我們平台上的三個關鍵訂單量和購買 3P 產品的用戶數量同比加速增長，均創歷史新高第三季度的高成長水準。我們的 3P 產品的 NPS 也較去年同期成長。

As to monetization, commission revenues returned to a positive growth in Q3, in line with our expectations as the impact of discounted commission fees fully lapsed. Advertising revenues in our retail business grew by double-digit year-on-year, thanks to the healthy growth of our ecosystem and improving traffic allocation efficiency for both 1P and 3P merchants. That said, we are still at the very beginning of exploring the potential of our platform ecosystem to drive our business goal and profitability.

變現方面，隨著佣金折扣的影響完全消失，第三季佣金收入恢復正成長，符合我們的預期。零售業務廣告收入較去年同期實現兩位數成長，得益於生態系的健康發展以及1P和3P商家流量分配效率的提升。也就是說，我們仍處於探索平台生態系統潛力以推動我們的業務目標和獲利能力的起步階段。

We will continue to prioritize further optimizing our tools and infrastructure to better empower merchants, hence further improving user experience on our platform. That's the setup for our Q3.

我們將繼續優先考慮進一步優化我們的工具和基礎設施，以更好地為商家賦能，從而進一步改善我們平台上的使用者體驗。這就是我們第三季的設定。

Moving into Q4. We've just concluded single stay grand promotion. With this year's theme of cheaper and better, our supply chain trends were brought into full display. Our team did a great job expanding product assortment for both our 1P and 3P offerings, providing competitive prices and serving users with best-in-class experience.

進入第四季。我們剛結束了單人住宿促銷活動。今年以「更便宜、更好」為主題，我們的供應鏈趨勢得到了充分展示。我們的團隊在擴展 1P 和 3P 產品的產品種類方面做得非常出色，提供有競爭力的價格並為用戶提供一流的體驗。

We saw users respond well with the user number and order volume both recording double-digit growth during the promotion. Finally, we are very encouraged by a more supportive policy environment that aims to realize the huge potential of consumption in China. And at the same time, drive industry upgrades, create employment and leased household income, which will further fuel presumption confidence, where we see consumer assessment starts to improve. We understand it takes time for the benefits of the policies to feed through. We continue to focus on executing our strategies in place, building our supply chain capabilities.

我們看到用戶反應良好，活動期間用戶數和訂單量均錄得兩位數增長。最後，我們對旨在實現中國巨大消費潛力的更有利的政策環境感到非常鼓舞。同時，推動產業升級，創造就業和家庭租賃收入，這將進一步增強推定信心，我們看到消費者評估開始改善。我們知道政策的好處需要時間才能反映出來。我們繼續專注於執行我們的策略，建立我們的供應鏈能力。

and fully tapping into our potential to drive lower cost, higher efficiency and best-in-class user experience. We believe this will lead us to further expand our market share and profit.

充分挖掘我們的潛力，推動更低的成本、更高的效率和一流的使用者體驗。我們相信這將導致我們進一步擴大市場份額和利潤。

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

接下來，我將請伊恩介紹我們的財務亮點。謝謝。

Thank you, Sandy, and hello, everyone. In Q3, our top line growth accelerated from last quarter and outpaced the growth of domestic total retail sales, driven by strength across our major business segments and categories.

謝謝你，桑迪，大家好。第三季度，在我們主要業務部門和品類實力的推動下，我們的營收成長較上季加快，超過了國內零售總額的成長。

Our general merchandise category continued with strong momentum in the quarter. And more importantly, we saw a turnaround in revenue growth in our electronics and home appliances category due to our comprehensive support for China's nationwide trading program. With our strong user mind share, supplying capabilities and logistics services that we have built over the past two decades, we are able to provide superior customer experience and bring value to business partners and the society at large.

我們的百貨商品類別在本季持續保持強勁勢頭。更重要的是，由於我們對中國全國貿易計畫的全面支持，我們的電子和家電類別的收入成長出現了改善。憑藉我們在過去二十年中建立的強大的用戶心智份額、供應能力和物流服務，我們能夠提供卓越的客戶體驗，並為業務合作夥伴和整個社會帶來價值。

We also achieved an increase in profitability during the quarter. As we continue to improve cost and efficiency, especially on the logistics side, both gross margin and non-GAAP net margin expanded at a solid pace year-over-year in the quarter. Moreover, we continue to return value to shareholders.

本季我們的獲利能力也有所提升。隨著我們不斷提高成本和效率，特別是在物流方面，本季毛利率和非公認會計原則淨利潤均較去年同期穩定成長。此外，我們持續為股東回報價值。

During the quarter, we completed our share repurchase program announced in March this year and launched a new USD 5 billion share repurchase program for the next three years through the end of August 2027. In detail, we repurchased a total of 31 million Class A ordinary shares, equivalent to 15.5 million ADRs, which accounted for 1.1% of our ordinary shares outstanding as of June 30, 2024.

本季度，我們完成了今年3 月宣布的股票回購計劃，並啟動了截至2027 年8 月底的未來三年50 億美元的新股票回購計劃。 A 類普通股，相當於 1,550 萬股美國存託憑證，佔截至 2024 年 6 月 30 日已發行普通股的 1.1%。

The total value of the shares repurchased in Q3 was approximately USD 390 million. During the nine months ended September 30, 2024, the total value of the shares repurchased was USD 3.65 billion, which accounted for 8.1% of our ordinary shares outstanding as of the end of 2023. The progress reflects our commitment to creating value for shareholders.

第三季回購股份的總價值約為3.9億美元。截至2024年9月30日的九個月內，回購股份的總價值為36.5億美元，佔截至2023年底我們已發行普通股的8.1%。承諾。

With that, let me turn to our Q3 financial performance. Our net revenues grew by 5% year-on-year to RMB 260 billion in Q3, of which product revenues were up 5%. By category, revenues of electronics and home appliances grew by 3% year-on-year with groups improving sequentially in each of these three months. September was notably strong for home appliances and PC due to our contribution to the trading program, which has been proven very effective in boosting overall consumption. And we've seen this upbeat momentum sustained our platform in Q4 quarter-to-date, including doing a single-state grand promotion.

接下來，讓我談談我們第三季的財務表現。第三季淨收入年增5%至2,600億元人民幣，其中產品收入成長5%。按類別劃分，電子和家用電器的收入年增 3%，這三個月各組別的收入均呈月增。由於我們對貿易計劃的貢獻，9月份家電和個人電腦的表現尤為強勁，事實證明，該計劃對於促進整體消費非常有效。我們已經看到這種樂觀的勢頭在第四季度至今維持了我們的平台，包括進行了單一州的盛大促銷。

Of note, is our unparalleled supply chain capabilities and keen focus on user experience that sets us apart from peers in the industry. Revenues of general merchandise recorded another solid growth of 8% year-on-year in the quarter, of which revenues of supermarket category, apparel and the spot (inaudible) on fashion category all saw double-digit increase year-on-year with massive TAM and our investments in building user experience and user mind share in the general merchandise category, we believe there's a significant headroom for us to drive further growth over time. Service revenues grew by 7% year-on-year in Q3, of which marketplace and marketing revenues up 6%, and logistics and other service revenues up 7%. For marketplace and marketing, commission revenues returned to positive growth in the quarter as the impact of our discounted speed to merchants fully lap. Advertising revenues maintained solid momentum with advertising revenues from JD Retail recording another double-digit year-on-year growth in Q3.

值得注意的是，我們無與倫比的供應鏈能力和對用戶體驗的高度關注使我們在業內同行中脫穎而出。百貨類營收本季再次年增8%，其中商超品類、服飾、時尚品類現貨（聽不清楚）營收年增，大幅成長。體驗和使用者心智份額的投資，我們相信隨著時間的推移，我們還有很大的空間來推動進一步的成長。第三季服務收入年增7%，其中市場和行銷收入成長6%，物流和其他服務收入成長7%。對於市場和行銷，隨著我們對商家的折扣速度的影響完全消失，佣金收入在本季恢復正成長。廣告收入維持強勁勢頭，第三季京東零售廣告收入較去年同期再次實現兩位數成長。

Key operating metrics of our platform ecosystem showed positive progress in user engagements, including a steady increase in 3P order volume and active users who purchase 3P products on our platform. Now let's turn to our segment performance.

我們平台生態系統的關鍵營運指標顯示用戶參與度取得了積極進展，包括 3P 訂單量和在我們平台上購買 3P 產品的活躍用戶的穩定成長。現在讓我們轉向我們的細分市場表現。

JD Retail revenues were up 6% year-on-year in Q3, thanks to the turnaround of electronics and home appliances and the robust growth of general merchandise. Moreover, JD Retail recorded another meaningful gross margin improvement in the quarter as we continue to drive better scale benefits of 1P, favorable mix shift towards higher-margin categories and higher contribution of 3P. As a result, will enable us over the savings to our users and offer them an enriched portfolio of quality products of different price tiers. The achievement in gross margin offset the increase in our creating expense, despite in marketing expense as we devoted efforts to drive user group and user engagement.

得益於電子家電的改善以及日用百貨的強勁成長，京東零售第三季營收年增6%。此外，隨著我們繼續推動 1P 更好的規模效益、向更高利潤類別的有利組合轉變以及 3P 更高的貢獻，京東零售本季的毛利率再次顯著改善。因此，這將使我們能夠為用戶節省開支，並為他們提供豐富的不同價格等級的優質產品組合。儘管行銷費用有所增加，但毛利率的成就抵消了我們創作費用的增加，因為我們致力於推動用戶群體和用戶參與度。

As a result, JD Retail's non-GAAP operating income increased by 6% year-on-year, and operating margin stayed stable at 5.2% in Q3 compared to the same period last year. Now moving to JD Logistics.

受此影響，京東零售第三季非美國通用會計準則營業收入較去年同期成長6%，營業利益率與去年同期相比穩定在5.2%。現轉至京東物流。

JD Logistics revenues increased by 7% year-on-year in Q3. This was due to heavy momentum in both internal and external revenues, which increased by 8% and 6% year-on-year, respectively. As JD Logistics continue to unlock the economy of scale and rise operating efficiency, it made outsized improvement across product lines during the quarter, in particular with non-GAAP operating income increased by 624% year-on-year and operating margin came in at 4.7% at 400 bps compared to a year ago.

京東物流第三季營收年增7%。這是由於內部和外部收入的強勁勢頭，分別較去年同期成長8%和6%。隨著京東物流不斷釋放規模經濟和提高營運效率，本季各產品線均取得了巨大的進步，特別是非美國通用會計準則營運收入年增624%，營運利潤率達到4.7%與一年前相比，成長率為400 bps。

Going forward, we expect JD Logistics' high efficiency and superior service will continue to benefit JD Group as a critical component of an integrated supply chain.

展望未來，我們預計京東物流的高效率和優質服務將繼續使京東集團作為綜合供應鏈的重要組成部分受益。

Turning to new business. In the quarter, revenue of new business was down 26% year-on-year, mostly due to the adjustment of the (inaudible) business. Non-GAAP operating loss of new business was RMB 615 million in the quarter compared to a loss of RMB 192 million a year ago. The result was largely due to the increased loss in (inaudible).

轉向新業務。本季新業務收入年減26%，主要是由於（聽不清楚）業務的調整。本季新業務的非公認會計原則營運虧損為人民幣 6.15 億元，去年同期為虧損 1.92 億元。結果主要是由於（聽不清楚）損失增加。

Moving on to our consolidated profit performance. In Q3, at the group level, gross profit grew by 16% year-on-year and gross margin grew by 165 bps to 17.3%. This is the 10th quarter in a row with our gross margin expansion on a year-on-year basis, a strong proof of our high-quality development tax.

接下來是我們的綜合獲利表現。第三季度，集團層級毛利年增16%，毛利率成長165個基點至17.3%。這是我們連續第10季毛利率年比擴張，有力證明了我們高品質發展稅。

Moreover, our non-GAAP operating income increased by 18% year-on-year, and operating margin came in at 5% in Q3, up (inaudible) year-on-year. Non-GAAP net profit attributable to ordinary shareholders increased by 24% year-on-year, and net margin came in at 5.1%, up 76 bps year-on-year. We are well on track to achieve our long-term margin target with some of the previous quarters already reaching it.

此外，我們的非 GAAP 營業收入年增 18%，第三季營業利益率為 5%，較去年同期上升（聽不清楚）。非美國通用會計準則歸屬於普通股股東的淨利潤年增24%，淨利率為5.1%，較去年同期成長76個基點。我們正在順利實現長期利潤率目標，前幾個季度已經達到了這個目標。

For the full year of 2024, we are confident to achieve double-digit growth of our non-GAAP net profit. Our last 12 months free cash flow as of the end of Q3 was RMB 34 billion compared to RMB 39 billion in the same period last year. The decrease was a result of the timing difference of our working capital. And the impact of the trading program, which was partially offset by our increased profit and moderated CapEx. By the end of Q3, our cash and cash equivalents, restricted cash and short-term investments added up to a total of RMB 197 billion.

2024 年全年，我們有信心實現非 GAAP 淨利兩位數的成長。截至第三季末，我們過去 12 個月的自由現金流為 340 億元人民幣，而去年同期為 390 億元。減少的原因是我們的營運資金的時間差異。交易計劃的影響部分被我們增加的利潤和適度的資本支出所抵消。截至三季末，我們的現金及現金等價物、限制性現金及短期投資合計1,970億元。

To conclude, we had a very solid Q3 with both top and bottom lines trending in the right direction. Looking ahead, we are more confident in the economic environment and vitality of domestic consumption. We look forward to fully utilizing our core capabilities to play our role in the implementation of the government's stimulus measures.

總而言之，我們的第三季業績非常穩健，營收和利潤都朝著正確的方向發展。展望未來，我們對經濟環境和國內消費活力更加充滿信心。我們期待充分利用我們的核心能力，在政府刺激措施的實施中發揮我們的作用。

We will continue to execute our strategy in supply chain price competitiveness and platform ecosystem to create value for our users, business partners and shareholders along the way.

我們將繼續執行我們的供應鏈價格競爭力和平台生態系統策略，一路為我們的用戶、業務合作夥伴和股東創造價值。

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

謝謝你，伊恩。問答環節，歡迎您用中文或英文提問。您是－我們的管理階層將用您提出的語言回答您的問題。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，請參閱我們管理層的原始聲明。

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

好的。現在接線員，我們可以打開問答環節了。

(Operator Instructions) Ronald Keung, Goldman Sachs.

（操作員指令）Ronald Keung，高盛。

(interpreted) I have a question on our growth. And we've seen the trade-in -- appliance trading programs. Could you help us just quantify to third quarter and potentially into the fourth quarter? And how is the sustainability of this heading into next year for the policy wide boost to appliance? And then excluding appliance, what our strategies in supermarket, general merchandise, 3P and price competitiveness to sustain the strategy for next year if we want to keep the target of growing above retail industry growth?

（解釋）我有一個關於我們成長的問題。我們已經看到了以舊換新——家電交易計劃。您能否幫助我們量化第三季並可能量化到第四季？明年政策全面推動家電的可持續性如何？那麼，如果我們想維持高於零售業成長的目標，那麼除了家電之外，我們在超市、百貨、3P和價格競爭力方面的策略是什麼來維持明年的策略？

(interpreted) Thank you, Ronald. To take your first question. So in recent months, the government has been rolling out a series of stimulus measures, including the trading policy nationwide to support economic growth and consumption, and these efforts have shown positive progress.

（翻譯）謝謝你，羅納德。回答你的第一個問題。因此，近幾個月來，政府推出了一系列刺激措施，包括全國範圍內的貿易政策，以支持經濟成長和消費，這些努力已經取得了積極進展。

And under the comprehensive planning of the government bodies, JD has swiftly responded by increasing inventory and enhancing service efficiency to support the program, leveraging our expenses (inaudible) the experience in supply chain management, we are well positioned to offer quality products and convenience services at competitive prices to a broad base of Chinese consumers.

而在政府機構的統籌規劃下，京東迅速響應，透過增加庫存和提高服務效率來支持該計劃，利用我們的費用（聽不清楚）供應鏈管理經驗，我們有能力提供優質的產品和便利的服務以具競爭力的價格面向廣大中國消費者。

So here, what I want to emphasize is that our swift response to response to the trading program is due to our years of experience in proactively providing trading services, which has made us technologically prepared and systematically comparable for such initiatives.

所以在這裡，我想強調的是，我們對交易計劃的快速響應得益於我們多年主動提供交易服務的經驗，這使我們對此類舉措有了技術準備和系統可比性。

Additionally, JD's unique supply chain capabilities including our self-operated sales model, logistics and fulfillment capabilities and large items in services. And combined with our strong user mind share in the home appliances category have made us the preferred partner and preferred supplier for our customers in the trading program. So on the effects of the trading program, we've seen promising outcomes so far. The National Bureau of Statistics reported that September sales of household appliances and consumer electronics grew significantly compared to July and August. So this trend is also mirrored on JD.com, where the treating program has driven our increased demand of sales for home appliances and computer in September.

此外，京東獨特的供應鏈能力，包括自營銷售模式、物流和履行能力以及大件服務。加上我們在家電類別中強大的用戶心智份額，使我們成為貿易計劃中客戶的首選合作夥伴和首選供應商。因此，就交易計劃的效果而言，到目前為止，我們已經看到了有希望的結果。國家統計局公佈的數據顯示，9月家用電器和消費性電子產品銷售量較7、8月大幅成長。因此，這一趨勢在京東上也得到了體現，處理計劃帶動了我們 9 月家電和電腦銷售需求的增加。

Our sales of these categories increased sequentially in each of the three months in Q3. So at the same time, it is also noteworthy that the full potential of the trading policy has yet to be fully realized in Q3. But parts, it's because some of the consumers hasn't been fully aware of this policy. It takes some time for them to be educated and to take advantage of this trading policy. And on the other hand, due to some limited production capacity, the high consumer demand for some subsidized products may not be fully matched in the short term and for the brands and manufacturers, they may require time to ramp up production.

我們這些類別的銷售額在第三季的三個月中連續成長。因此，同時值得注意的是，交易政策的全部潛力尚未在第三季完全發揮出來。但部分原因是部分消費者還沒有充分意識到這項政策。他們需要一些時間來接受教育並利用這項貿易政策。另一方面，由於部分產能有限，消費者對部分補貼產品的高需求短期內可能無法完全匹配，對於品牌和製造商來說，可能需要時間來提高產量。

Additionally, at the recent National People's Congress meeting, the government just unveiled to introduce more forceful fiscal stimulus plan based on next year's economic and social development objective and expanding the trading program in greater scale and categories of consumer goods is a measure included in this supportive flat. We believe expanding the trading policy would further support consumer spending.

此外，在不久前的全國人大會議上，政府剛剛宣布，將根據明年經濟社會發展目標，出台更有力的財政刺激計劃，擴大消費品貿易規模和品種，也是此次支持性措施之一。我們認為擴大貿易政策將進一步支持消費者支出。

We believe the government's trading program is not solely aimed at boosting short-term consumption, but also bolstering the healthy development of key industries, creating jobs and increasing household income and restore consumer confidence and strengthened consumer confidence benefits the entire retail and all source of manufacturing sector, and we hope the policy will continue and expand to other categories to sustain this meaningful momentum.

我們認為政府的貿易計畫不僅是為了提振短期消費，還可以促進重點產業的健康發展，創造就業機會，增加家庭收入，恢復消費者信心，增強的消費者信心有利於整個零售業和所有製造業。 我們希望該政策能夠繼續下去並擴展到其他類別，以維持這一有意義的勢頭。

Frankly, this program remains attractive to consumers as reflected during JD's single statement promotion, where our home appliances and computer sales continue to grow steadily. And moreover, the trading program has increased the traffic and visits on JD's platform. We're committed to in enhancing our supply chain across all categories, electronics, supermarket (inaudible), et cetera, focusing on cost efficiency and user experience to deliver cheaper and better shopping experiences to our customers. Regarding your second question on our growth strategies. This year, we have steadily advanced our strategic plan, focusing on enhancing user experience, optimizing cost and boosting efficiency.

坦白說，這個計劃對消費者仍然具有吸引力，正如京東的單一聲明促銷活動所反映的那樣，我們的家電和電腦銷售持續穩定成長。此外，交易項目還增加了京東平台的流量和訪問量。我們致力於加強所有類別、電子產品、超市（聽不清楚）等的供應鏈，專注於成本效率和用戶體驗，為我們的客戶提供更便宜、更好的購物體驗。關於你關於我們成長策略的第二個問題。今年，我們穩步推進策略部署，聚焦提升用戶體驗、優化成本、提升效率。

So enhancing price competitiveness, our ongoing strategies include our continuous lowering our 1P procurement costs by scaling our supply chain and increasing efficiency that allow us to offer products at a more competitive price, at the same time, to increase the supplies of nonproduct. We are introducing more white label sellers and affordable products through our channels like 3P and Cinci business model to cater to the diverse shopping needs across user groups.

因此，為了提高價格競爭力，我們正在進行的策略包括透過擴大供應鏈和提高效率來不斷降低 1P 採購成本，使我們能夠以更具競爭力的價格提供產品，同時增加非產品的供應。我們透過3P和Cinci商業模式等管道引入更多白標賣家和平價產品，以滿足不同用戶群的多樣化購物需求。

At same time, we strive to strengthen the everyday low price use in mind share by building our promotional metrics, as I mentioned in my remarks, such as the monthly Super 18 sales, the weekly Black Friday day on supermarket categories and the daily late-night flash sale event. So on the general merchandise category in Q3, it also maintained healthy growth and continue to outperform the market. And specifically, on the supermarket category, we focused our reform of the warehouse network of great transition and this approach led to double-digit revenue growth in Q3 along with improved profitability.

同時，正如我在演講中提到的那樣，我們努力透過建立我們的促銷指標來加強日常低價使用，例如每月的Super 18 銷售、每週的超市類別黑色星期五以及每日的晚間促銷。所以在第三季的百貨類別上，也維持了健康的成長，繼續跑贏大盤。具體來說，在超市品類上，我們重點進行了倉儲網路的大轉型改革，這種方法導致第三季營收實現兩位數成長，獲利能力也得到提高。

And on the fashion category since September, we have increased the investments on user side, mainly focusing on reinforcing users' mind share of shopping for closing on JD, and this focus contributed to double-digit year-on-year growth in closing categories and other sub categories in Q3.

而在時尚類別上，從9月開始，我們加大了用戶端的投入，主要是加強用戶對京東的收場購物心智份額，這個重點帶動了收場品類同比兩位數的增長，第三季度的其他子類別。

And thirdly, on the strengthening of our platform ecosystem on the 3P part, I've already mentioned on repeat, there's a lot of healthy growth has been achieved across different metrics, whereas we see there's still plenty to improve in many aspects. So overall, we are confident in our ability to sustain a faster than market growth rate and continue expanding our market share. Thank you.

第三，關於加強我們在3P部分的平台生態系統，我已經重複提到過，在不同的指標上已經實現了很多健康的成長，但我們看到在許多方面仍然有很多需要改進的地方。因此，總體而言，我們對維持高於市場成長率並繼續擴大市場份額的能力充滿信心。謝謝。

Alicia Yap, Citigroup.

艾莉西亞葉 (Alicia Yap)，花旗集團。

(interpreted) There are two questions. First is that it's good that JD has been benefiting from the appliance trading stimulus. Also with the stabilizations of the real estate sector, which likely have attracted the demand for a pilot in the end of 3Q and also into the 4Q.

（解釋）有兩個問題。首先，京東受益於家電交易刺​​激措施是件好事。此外，隨著房地產行業的穩定，這可能會在第三季末和第四季吸引試點需求。

But investors lately have a new concern about the growth driver into next year, especially for the second half of next year, and worry that there might be a high base for appliance sales and also JD growth might slow down. We would try to argue that if real estate actually stabilize, further stabilize, which could actually drive more sustainable demand for appliance and it may not necessarily see a rollover of the growth for JD. So what is management view for these? I appreciate if we can address all the various JD growth driver into the next year.

但投資者最近對明年尤其是下半年的成長動力產生了新的擔憂，擔心家電銷售基數可能較高，而京東的成長可能會放緩。我們試圖論證，如果房地產確實穩定，進一步穩定，這實際上可能會推動對家電的更可持續的需求，並且不一定會看到京東的增長出現翻滾。那麼，管理階層對此有何看法呢？如果我們能夠在明年解決所有京東成長動力問題，我將不勝感激。

Second question is one of the bigger boost of better-than-expected profit the last quarter that we deliver are likely to have driven by JD Logistics margin improvement and also JD Retail cost optimization and also the efficiency improvement. JD also has delivered very good profit improvement already this year. As we head into next year 2025, can management provide any preliminary thoughts in terms of the investment, the spending that you might want to invest? And how would overall margins and profit growth outlook heading into next year?

第二個問題是，我們上一季實現的利潤好於預期的更大推動力可能是由京東物流利潤率改善以及京東零售成本優化和效率提高所推動的。京東今年也已經實現了非常好的利潤改善。當我們進入明年 2025 年時，管理層能否就您可能想要投資的投資和支出提供任何初步想法？明年的整體利潤率和利潤成長前景如何？

(interpreted) And thank you, Alicia, for the question. I will address the first part on the growth. So as I just mentioned, our belief is that for the trading policies the government introduced is playing a little leverage. It is not only aimed at like short-term consumption increase for the home appliances categories, more play a role to boost the construction with the job grade and increased household income to restore consumption confidence.

（解釋）謝謝艾莉西亞提出的問題。我將討論關於成長的第一部分。正如我剛才提到的，我們認為政府推出的貿易政策正在發揮一點槓桿作用。它不僅針對像家電類的短期消費成長，更多的是起到拉動就業檔次建設和增加居民收入恢復消費信心的作用。

So in my opinion, the confidence -- consumption confidence restoring is more meaningful to help JD's growth in terms of the specific categories and our targeted groups. So for the next year, we remain cautiously optimistic for the overall economic and consumption growth trajectory. And in terms of our company's growth drivers, and we will continue to carry out our long-term strategic plans, mainly focused on first, to continue to foster our users' experience and user growth and continue to invest on those categories that have high growth potential and expand our product offering center with a wider range of prices that cater to the needs of the lower-tier markets and introduce more products from the industrial guys, et cetera, we are making steady efforts to invest in these businesses.

所以我認為，信心－消費信心的恢復對於京東在具體品類和目標群方面的成長更有意義。因此，對於明年，我們對整體經濟和消費成長軌跡保持謹慎樂觀。而就我們公司的成長動力而言，我們將繼續執行我們的長期策略計劃，主要集中在第一，繼續培育我們的用戶體驗和用戶成長，並繼續投資那些高成長的品類。產品供應中心，提供更廣泛的價格範圍，以滿足低端市場的需求，並引入更多來自工業企業的產品等等，我們正在穩步努力投資這些業務。

And thirdly, we continue to invest in our platform ecosystem to provide a thriving environment and we want to. So regarding the prospects on profit to share our thoughts. So first, our long-term profit margin improvement will be driven by three key factors. So JD's strength in supply and scale and efficiency will continue to drive margin growth. As you can see in our Q3 earnings, we saw a continuous increase in our net margin, which is mainly due to the gross profit margin improvement in product supply chain and JD Logistics profit growth driven by cost management and the efficiency improvement.

第三，我們繼續投資我們的平台生態系統，以提供一個繁榮的環境，我們希望這樣做。因此，關於利潤前景，分享我們的想法。首先，我們的長期利潤率改善將由三個關鍵因素驅動。因此，京東在供應、規模和效率方面的優勢將繼續推動利潤成長。從我們第三季的財報中可以看到，我們的淨利潤持續成長，這主要得益於產品供應鏈毛利率的改善以及成本管理和效率提升帶動的京東物流利潤成長。

And the second driver is the category mix. There is still significant potential for margin improvement in many categories, such as the supermarket category. Additionally, favorable category mix shift itself can also lead to higher margins. And the third driver is our 1P versus 3P mix. That's the ratio of 3P business grows over time on our platform, it will also positively impact our merchant growth.

第二個驅動因素是類別組合。許多品類的利潤率仍有很大的提升潛力，例如超市類別。此外，有利的品類組合轉變本身也能帶來更高的利潤。第三個驅動因素是我們的 1P 與 3P 組合。這是我們平台上 3P 業務隨著時間的推移而成長的比例，它也將對我們的商家成長產生正面影響。

So in line with JD's long-term strategies and in response to the macroeconomic and market changes, we will continue investing in areas that enhance user experience, strengthen our core supply chain capabilities and bring user mind share in specific categories and maintaining strategic focus and long-term planning is crucial for our business success.

因此，根據京東的長期策略，針對宏觀經濟和市場變化，我們將持續在提升使用者體驗、增強核心供應鏈能力、在特定品類上佔據使用者心智份額等方面進行投資，並維持策略重點和長期發展。短期規劃對於我們的業務成功至關重要。

Over the long run, our profit margin will continue to improve over a long alongside healthy business growth and increased operating efficiency and JD's long-term profit margin goal will reach a high single digit. As for specific growth and profit guidance, we will share at appropriate time.

從長遠來看，隨著業務的健康成長和營運效率的提高，我們的利潤率將持續改善，京東的長期利潤率目標將達到較高的個位數。至於具體的成長和獲利指引，我們會在適當的時候分享。

Kenneth Fong, UBS.

肯尼思方，瑞銀集團。

(interpreted) My first question is about competition and investments. During the (inaudible), e-commerce has been investing aggressively on both users and merchants. So can management share your view on the current industry competitive landscape? Also for area forging into investment and for this investment, how should we think about the impact on margin?

（解釋）我的第一個問題是關於競爭和投資。在此期間（聽不清楚），電子商務一直在對用戶和商家進行積極投資。那麼管理階層能否分享一下您對目前產業競爭格局的看法？另外對於區域鍛造投資，對於這項投資，我們該如何考慮對利潤率的影響？

My second question is on the expansion in the apparel and cosmetic category. Because in the news, we saw that we are investing RMB 3 billion and RMB 1 billion, respectively, on cosmetic and apparel category. So can management share more about that? Would it be 1P or 3P in terms of operation? And any results that we can share?

我的第二個問題是關於服裝和化妝品類別的擴張。因為在新聞中我們看到我們在化妝品和服裝類別上分別投資了30億元和10億元。那麼管理層可以分享更多相關資訊嗎？從操作上來說是1P還是3P？我們可以分享什麼結果嗎？

And then more medium to longer term, what is JD's competitive advantage versus peers (inaudible)?

然後從中長期來看，京東相對於同業的競爭優勢是什麼（聽不清楚）？

Thanks for your question. I will take the question on the industry competition and our investment. So first of all, I want to address that we hold -- we continue to hold the view that China is a highly promising retail market supported by favorable demographic structure and distribution along with the world's most advanced e-commerce infrastructure, including robust logistics, payment systems and social media integration, et cetera. So there is still significant room for e-commerce to expand its market penetration.

謝謝你的提問。我將回答關於行業競爭和我們投資的問題。首先，我想談談我們的觀點——我們仍然認為，中國是一個非常有前途的零售市場，受到有利的人口結構和分佈以及世界上最先進的電子商務基礎設施（包括強大的物流）的支持，支付系統和社交媒體整合等。因此，電子商務仍有很大的市場滲透空間。

And with the implementation of supportive measures to boost consumption, including the recent trading policy, we're seeing positive momentum that will inject fresh growth energy in e-commerce. So given this e-commerce development momentum, we will maintain focus on enhancing user experience and driving user growth, developing our differentiated supply chain capabilities based on cost efficiency and user experience, building our core capabilities edge, making targeted investments in self-operated supply chain and logistics service for sustainable long-term growth. At the same time, continuously strengthening and using mind share. Here are some specific updates and on user experience over the past year, we focused on enhancing user experience by increasing price competitiveness, lowering the free shipping threshold for our self-operated product and improving our free and home return services.

隨著包括近期貿易政策在內的一系列促進消費的支持措施的落實，我們看到了積極的勢頭，將為電子商務注入新的成長動力。因此，在電商發展動能下，我們將持續以提升用戶體驗、驅動用戶成長為核心，以成本效率與用戶體驗為基礎，發展差異化的供應鏈能力，打造核心能力優勢，對自營供應進行定向投資。同時，不斷強化和運用心靈分享。以下是一些具體的更新，關於用戶體驗，過去一年，我們將重點放在提高價格競爭力、降低自營產品的免運費門檻、完善免費和上門退貨服務來提升用戶體驗。

And now we have extended many services from 1P to 3P products, such as free shipping for over 59 lens and the three home return services. Additionally, we've introduced innovative services like compensation for delayed shipping to constantly exceed user expectations. And alongside these improvements on user experience, we are actively working to attract new users.

現在我們已經把很多服務從1P產品延伸到3P產品，像是59支以上鏡頭免運費、三包退貨服務等。此外，我們也推出了延遲出貨補償等創新服務，以持續超越用戶的期望。除了這些用戶體驗的改進之外，我們還積極努力吸引新用戶。

In Q3, we achieved a double-digit year-on-year user growth with accelerated momentum and we expect this growth to continue. And in terms of strengthening customer mind share in key categories and, JD has become the go-to destination for home appliances, computers, mobile phones and electronic categories as we support the government's trading policy, we also take the opportunity to further integrate our services to reinforce the trust on these categories. And in general merchandise categories like market, supermarket and (inaudible). We continue to build a stronger user mind share. Our promotional campaign on the payroll category launched in September is a prime example of enhancing user awareness and engagement in apparel category.

第三季度，我們實現了兩位數的年比用戶成長，且勢頭加速，我們預計這種成長將持續下去。而在加強重點品類的消費者心智佔有率方面，京東已經成為家電、電腦、手機、電子類品類的首選目的地，因為我們支持政府的貿易政策，我們也藉此機會進一步整合我們的服務加強對這些類別的信任。在一般商品類別中，如市場、超市和（聽不清楚）。我們繼續建立更強大的使用者心智份額。我們在 9 月推出的薪資類別促銷活動是提高用戶對服裝類別的認知度和參與度的典型例子。

So here, we are also pleased to share the single days brand promoter performance, which overall exceeded our expectation. With JD's rising user mind share, we've seen notable improvement in user traffic with our APP's unique visit witnessed significant increase during the shopping festival. And both the active users and orders during the shopping festival experienced faster growth.

所以在這裡，我們也很高興分享一下單日品牌推廣員的表現，整體上超出了我們的預期。隨著京東用戶心智佔有率的不斷提升，我們的APP用戶流量明顯提升，購物節期間APP的單次訪問量大幅增加。購物節期間活躍用戶和訂單均較快成長。

The number of active users achieved double-digit growth and the average daily active customers increased by over 20%. At the same time, our user shopping frequency maintained double-digit year-on-year. So all in all, we will continue to invest in reducing costs, improving efficiency and enhancing user experience focusing our unique strength in supply chain and user-centered experience.

活躍用戶數達到兩位數成長，每日均活躍客戶成長超過20%。同時，我們的用戶購物頻率比去年同期保持兩位數。總而言之，我們將繼續在降低成本、提高效率和增強用戶體驗方面進行投資，並聚焦我們在供應鏈和以用戶為中心的體驗方面的獨特優勢。

At the same time, we will closely monitor TMB profit, cash flow and other key metrics to achieve a balanced high-quality growth. And for the full year, we're confident that JD Group's profit will exceed double-digit growth. Kenny, thank you very much for recognizing our efforts in fashion and beauty categories. So we've seen -- we've been steadily increasing our investment in these categories with the key goal to enhance user experience as part of our long-term strategy. And to build user interest and engagement with JD's apparel offerings, we are expanding our product selections, especially the good quality and fashionable product selections and emphasizing premium services.

同時，我們將密切關注TMB利潤、現金流量等關鍵指標，以實現均衡高品質成長。就全年而言，我們有信心京東集團的利潤將超過兩位數成長。肯尼，非常感謝您認可我們在時尚和美容領域的努力。因此，我們已經看到，我們一直在穩步增加對這些類別的投資，其主要目標是增強用戶體驗，作為我們長期策略的一部分。為了引起用戶對京東服裝產品的興趣和參與度，我們正在擴大產品選擇，特別是優質和時尚的產品選擇，並強調優質服務。

We've been launching and will continue to plan promotions, including the 50% off campaign on apparel category to better appeal users and increase their recognition, specifically on the beauty product we are strengthening our partnerships with domestic and emerging beauty brands. We expressed a high expectation to work together on exploring its potential for common growth in these categories. And so far, our 10 billion discount program has expanded to cover the entire beauty category, gaining popularity among JD users.

我們已經並將繼續規劃促銷活動，包括服裝類別的50% 折扣活動，以更好地吸引用戶並提高他們的認可度，特別是在美容產品上，我們正​​在加強與國內和新興美容品牌的合作夥伴關係。我們對共同努力探索其在這些領域共同成長的潛力表示高度期望。目前，百億優惠已涵蓋美妝全品類，深受京東用戶歡迎。

And on the apparel product, in September, we launched several initiatives to boost JD's presence in apparel category, such as the 50% off campaign and the London Fashion Show, showcasing our brand broad brand selection and competitive pricing and all these campaigns have attracted new users with high purchasing power, who showed greater order values and high repurchasing rate within a month. especially during the single-segment promotion. We see new active users in fashion and beauty and their shopping frequency both (inaudible) to healthy growth. And in terms of the operating models and currently, most fashion products on our platform comes from 3P sellers. At the same time, we're also stepping up efforts on our 1P operational capabilities.

在服裝產品方面，9月份，我們推出了多項舉措來提升京東在服裝品類的影響力，例如50％折扣活動和倫敦時裝秀，展示了我們品牌廣泛的品牌選擇和具有競爭力的價格，所有這些活動都吸引了新的消費者購買力高的用戶，一個月內訂單金額較大，且重購率較高。尤其是在單段促銷期間。我們看到時尚和美容領域的新活躍用戶及其購物頻率（聽不清楚）都在健康成長。從營運模式來看，目前我們平台上的時尚產品大部分來自3P賣家。同時，我們也在加強1P營運能力的建置。

But definitely, the users will have the final say to choose between 1P and 3P.

但毫無疑問，1P 和 3P 之間的選擇將由使用者說了算。

And in terms of the investments, we will continue to focus on the product, price and the services. And we will continue to better our algorithm to introduce more human-made products to the relevant customers, and we will also act improve the price competitiveness and offer more affordable products on these categories and along with more differentiated services. And with that said, we welcome all the analysts and all our partners to use and experience our apparel and fashion categories. And if there are any suggestions, we are very happy to hear from you. Thank you.

在投資方面，我們將繼續專注於產品、價格和服務。我們將繼續改進我們的演算法，向相關客戶推出更多人造產品，我們也將採取行動提高價格競爭力，在這些類別上提供更實惠的產品以及更多差異化的服務。儘管如此，我們歡迎所有分析師和所有合作夥伴使用和體驗我們的服裝和時尚類別。如果有任何建議，我們很高興收到您的來信。謝謝。

Your next question comes from Thomas Chong from Jefferies.

您的下一個問題來自 Jefferies 的 Thomas Chong。

(interpreted) My first question is about the macro. Can management comment about the recent macro policy measures have any positive impact to consumer sentiment? My second question is about capital return. Can management comment about the latest update on shareholders' returns related to the buyback and dividends?

（解釋）我的第一個問題是關於宏觀的。管理階層對近期宏觀政策措施的評論能否對消費者情緒產生正面影響？我的第二個問題是關於資本回報。管理階層能否評論與回購和股利相關的股東回報的最新更新？

(interpreted) Thank you, Thomas, for the question. So my short answer is, yes, current macro policies have been taking a positive effect on the overall consumption sentiment. And we expect as these policies continues to take effect, this will help improve the economic fundamentals and to help recover and improve household income, which will all provide more energy and vitalization to the consumption potential.

（翻譯）謝謝托馬斯提出的問題。所以我的簡短回答是，是的，目前的宏觀政策一直在對整體消費情緒產生正面影響。我們預計，隨著這些政策的持續發揮作用，將有助於改善經濟基本面，有利於居民收入的恢復和提高，為消費潛力提供更多動力和活力。

And regarding the shareholder return, we have constantly executed our shareholder return plan over the first three quarters of the year, and we remain committed to delivering returns to multiple channels based on sustained business growth.

在股東回報方面，前三季我們持續執行股東回報計劃，並致力於在業務持續成長的基礎上實現多通路回報。

And on our share repurchase progress, over the first three quarters, we repurchased USD 3.65 billion worth of shares totaling proximately 255.3 million ordinary shares or 127.6 million ADS, representing 8.1% of total shares outstanding as of December 31, 2023.

就股票回購進展而言，前三季度，我們回購了價值36.5 億美元的股票，總計約2.553 億股普通股或1.276 億股美國存託股份，佔截至2023 年12 月31 日已發行股份總數的8.1%。

And in Q3 alone, we repurchased approximately USD 319 million worth of shares, and we have fully utilized the repurchase amount authorized under the USD 3 billion share repurchase program. And we announced a new three-year repurchase program totaling USD 5 billion, which we'll execute with the aim of reducing total number of shares in the long run.

光是第三季度，我們就回購了價值約3.19億美元的股票，並已充分利用了30億美元股票回購計畫授權的回購金額。我們還宣布了一項為期三年、總額為 50 億美元的新回購計劃，執行該計劃的目的是從長遠來看減少股份總數。

And on the dividend progress, we completed a USD 1.2 billion dividend distribution for 2024 in the first half of the year and plan to continue with a steady annual dividend payment based on profitability. So for the long term, we are dedicated to renewable shareholders through share repurchase, dividends and strong operational performance, sharing the value created by our business success.

分紅進展方面，上半年我們完成了2024年12億美元的分紅，併計劃根據盈利能力繼續穩定派發年度分紅。因此，從長遠來看，我們致力於透過股票回購、股利和強勁的營運績效為再生股東提供服務，分享我們業務成功所創造的價值。

Thank you, Thomas. Let's take the last question, please.

謝謝你，托馬斯。請讓我們回答最後一個問題。

Jialong Shi, Nomura.

石家龍，野村。

(interpreted) So I have two questions. The first question is about JD supermarket. Just wondering what is the size and the margin of JD supermarket business? And what was the rationale to have decided to exit our previous investment in Yonghui Supermarket? The second question is about JD 3P.

（解釋）所以我有兩個問題。第一個問題是關於京東超市的。想知道京東超市業務的規模和利潤率是多少？我們當初決定退出永輝超市的投資的理由是什麼？第二個問題是關於京東3P的。

So just wondering what does JD think of this potential in 3P? And what are your strategies to further unleash the potential of 3P?

那麼，我想知道京東如何看待 3P 的這種潛力？您有哪些策略來進一步釋放 3P 的潛力？

(interpreted) Thank you, Jialong, for your questions. The supermarket category has always been a core part of our business and one of the most important driver for our future growth. It represents the largest segment among our general merchandise categories, and the sales volume surpasses any supermarket chain store in China.

（翻譯）謝謝嘉龍的提問。超市品類一直是我們業務的核心部分，也是我們未來成長最重要的驅動力之一。它是我們百貨類別中最大的細分市場，銷售額超過中國任何連鎖超市。

While at the same time, it's also always noting that China supermarket sector is fast and highly decentralized compared with other developed countries. In September, JD Super marked its 10th anniversary and emphasized during the celebration to the media that the supermarket business is one of the key battlefield that will shape JD's future in the coming decade.

同時，人們也始終注意到，與其他已開發國家相比，中國超市產業發展速度快且高度分散。 9月，京東超市迎來成立十週年，並在慶典上向媒體強調，超市業務是塑造京東未來十年的關鍵戰場之一。

Admittedly, given its current scale and profitability, JD Super still have a way to go to meet our long-term expectations. However, we see significant potential in this category and remain confident in its healthy growth trajectory. And for this year, JD Super has achieved a double-digit year-on-year growth driven by our enhanced operational capabilities.

誠然，考慮到京東超級目前的規模和獲利能力，要達到我們的長期預期仍有很長的路要走。然而，我們看到了這個類別的巨大潛力，並對其健康成長軌跡充滿信心。今年，京東超級在營運能力增強的帶動下，實現了同比兩位數的成長。

So we will continue to strengthen our core capabilities in our anti management in terms of the scales of our refined operations and reform in warehouse network, et cetera, to drive up the profitability and continue to center in on the product offerings, price competitiveness and our differentiated services to improve user experience and user mind share in the supermarket category. And our strategic investment in Yonghui match the initial objects we set at the beginning of the collaboration. The recent shareholding change reflects our proactive decision to sharpen our focus on JD's core business areas.

因此，我們將持續從精細化經營規模、倉儲網路改革等方面，不斷強化反管理核心能力，提升獲利能力，持續圍繞產品供應、價格競爭力、差異化服務，提升超市類別使用者體驗與使用者心智佔有率。我們對永輝的策略投資也符合我們合作之初所設定的目標。最近的股權變動反映了我們加強對京東核心業務領域的關注的積極決定。

And regarding the question on the 3P development, our platform ecosystem development goal is centered around enhancing user experience. We aim to offer the best product, price and services through a mix of sales models with 3P playing a key role in expanding our selection of products and brands. So eventually, this will be our users' natural choice. And building a robust platform ecosystem, there remains substantial room for improvement in 3P operations, business scale and profit contribution to the platform. And for quite a period of time, we have been investing in platforms, infrastructure and providing all sorts of merchant tools.

關於3P發展的問題，我們平台生態系統的發展目標是圍繞著提升使用者體驗。我們的目標是透過多種銷售模式提供最好的產品、價格和服務，其中 3P 在擴大我們的產品和品牌選擇方面發揮關鍵作用。所以最終，這將是我們用戶的自然選擇。而建構強大的平台生態系統，3P營運、業務規模以及對平台的利潤貢獻還有很大的提升空間。相當長一段時間以來，我們一直在投資平台、基礎設施並提供各種商業工具。

Of course, there's still a way to go to better our supplies to our merchants and to help them to better -- to do the traffic allocation and the user acquisition, et cetera, to create a winning situation.

當然，我們還有一個辦法可以去更好地為我們的商家提供服務，幫助他們做得更好——做好流量分配、用戶獲取等等，以創造一個獲勝的局面。

So over time, the platform's ecosystem, we aim to have it to become a long-term growth driver generating increased revenue and profitability.

因此，隨著時間的推移，我們的目標是讓該平台的生態系統成為長期成長動力，從而增加收入和獲利能力。

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

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

Thank you for joining us today on the call, and thank you for all the great questions. That's a wrap. If you have further questions, please contact me and our team. We really appreciate your interest in JD.com and look forward to talking to you again next quarter. Thank you.

感謝您今天參加我們的電話會議，並感謝您提出所有重要問題。那是一個包裹。如果您還有其他問題，請聯絡我和我們的團隊。我們非常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. 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。