京東 (JD) 2024 Q4 法說會逐字稿

Hello, and thank you for standing by for JD.com's fourth quarter and full year 2024 earnings conference call. (Operator Instructions) Today's conference is being recorded. If you have any objections, you may disconnect at this time.

您好，感謝您參加京東 2024 年第四季及全年財報電話會議。（操作員指示）今天的會議正在錄音。如果您有任何異議，此時您可以斷開連接。

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主持人、投資者關係總監 Sean Zhang。請繼續。

Thank you. Good day, everyone. Welcome to JD.com's Q4 and full year 2024 earnings conference call. With us today is our CEO of JD.com, Ms. Sandy Xu. She will kick off the call with her opening remarks and our CFO, Mr. 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 年第四季及全年財報電話會議。今天和我們在一起的是京東執行長徐珊女士。她將以開場白開始會議，然後我們的財務長 Ian Shan 先生將討論財務結果。然後我們將開始回答分析師的問題。

Before turning the call over to Sandy, let me quickly cover the safe harbor. Please be reminded during this call, our comments and responses to your questions reflect management's view as of today's only will include forward-looking statements.

在將電話轉給桑迪之前，讓我先快速介紹一下安全港。請注意，在本次電話會議中，我們對您的問題的評論和回應僅反映了管理層截至今天的觀點，其中將包括前瞻性陳述。

Please refer to our latest safe harbor statement in the earnings press release on our IR website, which apply to this call. 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. Please also note all figures mentioned in this call are in RMB, unless otherwise stated.

請參閱我們 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。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 GAAP 指標與可比較 GAAP 指標的對帳。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為人民幣。

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. Thank you for joining us today to discuss our Q4 and full year 2024 results. In Q4, we delivered a strong set of operational and financial results with top line growth accelerating back to double digits year-on-year and healthy bottom-line expense ending 2024 on a very strong note.

謝謝你，肖恩。大家好。感謝您今天加入我們討論我們的 2024 年第四季和全年業績。在第四季度，我們取得了強勁的營運和財務業績，營收成長加速至同比兩位數，並以非常強勁的勢頭結束 2024 年的健康底線支出。

On a full year basis, our total revenues were up 7% year-on-year, outpacing the growth of both total retail sales and online fiscal growth as reported by the AS. As our market share expanded, we remain committed to our operating result service of lowering costs, increasing efficiency and investing in user experience with a continued financial discipline.

從全年來看，我們的總收入年增 7％，超過了 AS 報告的總零售額和線上財務的成長。隨著我們的市佔率不斷擴大，我們依然致力於降低成本、提高效率、在持續的財務紀律下投資於使用者體驗的經營成果服務。

Full year and non-GAAP net profit for 2024 also expanded steadily with non-GAAP net margin hitting 4.1%. We continued to invest proactively from long-term growth while making solid progress towards our long-term profitability target. We saw strong double-digit growth momentum across most of our categories and revenue streams in Q4.

2024年全年及非GAAP淨利也穩定成長，非GAAP淨利率達4.1%。我們持續從長期成長出發積極投資，同時穩步實現長期獲利目標。第四季度，我們的大多數產品類別和收入來源都呈現出強勁的兩位數成長動能。

Starting with our electronics and home appliances category, which saw a notable swing -- upswing with revenues growing by a remarkable 16% year-on-year. Our unique advantages in supply chain, service capabilities and user mindshare continue to set us ahead in these categories. Heading into 2025, with the government stimulus policies adding to the tailwind, we are well positioned to benefit from this rebound in consumption.

從我們的電子和家用電器類別開始，該類別出現了明顯的波動——收入同比增長了 16%。我們在供應鏈、服務能力和使用者心智方面的獨特優勢使我們在這些領域中繼續保持領先地位。邁入 2025 年，在政府刺激政策的助力下，我們可望從消費反彈中獲益。

Besides the strong momentum in electronics and home appliances, I'm excited about another bright spot in our business. Our general merchandise continued its strong performance in Q4, with revenue growth accelerating to 11% year-on-year with intensive efforts we've invested in building the operating expertise and the massive market opportunities in both supermarket and fashion categories.

除了電子和家用電器業務的強勁發展勢頭外，我對我們業務的另一個亮點感到興奮。我們的百貨商品在第四季度繼續表現強勁，憑藉我們在打造營運專業知識和超市和時尚類別的巨大市場機會方面投入的巨大努力，收入增長同比增長至 11%。

We believe our general merchandise is set to further expand user mindshare and renew the impetus for our long-term growth when we look beyond the momentum in electronics and home appliances. Within general merchandise, our supermarket business revenues in Q4 were up double-digit year-on-year for four consecutive quarters in a row.

我們相信，當我們將目光投向電子產品和家用電器之外時，我們的百貨商品將進一步擴大用戶的心智份額，並為我們的長期成長注入新的動力。在百貨商品方面，我們第四季的超市業務收入連續四個季度年增兩位數。

This was partially due to the early start of the Chinese New Year promotion, but more importantly, driven by the effect of improvement in our supply chain capabilities in the supermarket category, ranging from selecting the right product mix, lowering procurement costs to improving promotional and fulfillment efficiency.

這部分是由於農曆新年促銷活動提前開始，但更重要的是，得益於我們超市品類供應鏈能力的提升，包括選擇正確的產品組合、降低採購成本、提高促銷和履行效率。

The supermarket category holds massive potentials for JD in the long run for both B2C e-commerce and on-demand retail, and we've just started to unlock it. Our fashion category is also generating better momentum, thanks to our persistent efforts to improve operations and consumer mindshare. For example, consumers are more excited about our offerings, showing higher shopping frequency and merchants' enthusiasm towards the JD platform has also increased significantly.

從長遠來看，超市類別對於京東的B2C電子商務和按需零售都具有巨大的潛力，而我們才剛開始釋放這一潛力。由於我們不斷努力改善營運和消費者心智，我們的時尚類別也正在產生更好的發展勢頭。例如，消費者對京東的產品更感興趣，購物頻率更高，商家對京東平台的熱情也顯著提升。

We will continue to invest in the area as it holds strategic importance for us, especially for further improving our user engagement and the marketplace ecosystem. Throughout the past year, our team stayed very focused on improving user growth and engagement. Price competitiveness and our platform ecosystem.

我們將繼續在該領域進行投資，因為它對我們具有戰略重要性，特別是對於進一步改善我們的用戶參與度和市場生態系統。在過去的一年裡，我們的團隊一直專注於提高用戶成長和參與度。價格競爭力和我們的平台生態系統。

The strong full year results were consistent with the strategic focus that we have set out and are a reflection of our effective execution. Let me provide some updates on these key areas. First, on user growth and engagement. Q4 last year, marked the fifth consecutive quarter of our quarterly active customers seeing double-digit year-on-year growth, with growth accelerating further in the quarter.

強勁的全年業績與我們所製定的策略重點一致，並反映了我們有效的執行。讓我就這些關鍵領域提供一些最新進展。首先，關於用戶成長和參與度。去年第四季度，我們的季度活躍客戶數連續第五個季度實現年增兩位數，且本季成長速度進一步加快。

User behavior also trended up. We saw user shopping frequency growing at double digit year-on-year for four quarters in a row. The strong user metrics even after the impact of the lower free shipping limit, has elapsed were a result of our increased low-priced offerings and mix shift towards high-frequency SKUs in the supermarket and fashion categories.

使用者行為也呈上升趨勢。我們看到用戶購物頻率連續四季年增兩位數。即使在免運限額降低的影響過去之後，強勁的用戶指標仍然得益於我們增加低價產品以及向超市和時尚類別的高頻 SKU 轉變。

The healthy user momentum is keeping up so far in 2025, and we see a lot of user conversion and cross-sell opportunities. In terms of JD Plus, shopping frequency of Plus members grew even faster than that of our total users in Q4. Our focus on enhancing our service capabilities and value proposition for our Plus members remains unchanged.

到 2025 年為止，健康的用戶動能仍然保持著，我們看到了許多用戶轉換和交叉銷售機會。京東Plus方面，第四季Plus會員的購物頻率增速甚至超過了整體用戶的購物頻率。我們致力於增強對 Plus 會員的服務能力和價值主張，這一重點始終沒有改變。

In January, we announced further upgrades to Plus member benefits, including a lifestyle service package that allows members to redeem credits for housekeeping services and a 180-day replacement over repair policy for our 1P electronics and home appliances products in case of quality defect.

今年 1 月，我們宣布進一步升級 Plus 會員福利，包括允許會員以積分兌換家事服務的生活服務套餐，以及針對出現品質缺陷的 1P 電子和家電產品的 180 天更換維修政策。

We also expanded unlimited free shipping to cover on-demand shipping shopping of 1P products for Plus members. Moving to price competitiveness. We've made substantial headway in 2024 by both the improving price competitiveness for brand products and offering a broader selection of value for many products to address the needs of consumers across different income spectrums.

我們還擴大了無限制免費送貨服務，以涵蓋 Plus 會員的 1P 產品的按需送貨購物。轉向價格競爭。2024 年，我們取得了實質進展，不僅提高了品牌產品的價格競爭力，也為許多產品提供了更廣泛的價值選擇，以滿足不同收入水平消費者的需求。

In particular, in Q4 and on a full year basis, we saw growth of order volume and user base in lower-tier markets outpaced that prior tier markets on our platform. Shifting to our platform ecosystem. As we continue to bring in merchants and expand assortment of our suppliers, both our 3P order volume entered the number of our 3P users, have maintained robust year-on-year increases over the past year, with Q4 further picking up the pace compared to previous quarters.

特別是在第四季和全年，我們發現平台中低線市場的訂單量和用戶群的成長速度超過了高線市場。轉向我們的平台生態系統。隨著我們不斷引入商家和擴大供應商種類，我們的3P訂單量和3P用戶數量在過去一年裡都保持了強勁的同比增長，第四季度的增長速度與前幾個季度相比進一步加快。

NPS, the Net Promoter Score of our 3P offerings also continues to pick up in Q4, both year-on-year and on a sequential basis. As a result, our marketplace and marketing revenues were up 13% year-on-year in Q4, a substantial acceleration from previous quarters.

NPS，即我們第三方產品的淨推薦值，在第四季度也持續上升，無論是同比還是環比。因此，我們的市場和行銷收入在第四季度同比增長了 13％，比前幾季度大幅增長。

To recap, we had a very productive year in 2024 with healthy expansion on both the top line and bottom line and effective execution of strategic priorities bringing about tangible results. On the back of our strong financial performance, we also delivered considerable returns to shareholders through both buybacks and our annual dividend. Our total shareholder return rate for the year reached close to 10%. Ian will share more color on this.

總而言之，2024 年是我們非常有成效的一年，營收和利潤都實現了健康成長，策略重點得到有效執行，並帶來了切實的成果。在強勁財務表現的推動下，我們也透過回購和年度股利為股東帶來了可觀的回報。我們全年股東總回報率接近10%。Ian 將對此分享更多精彩內容。

Our strong results reflect our commitment to drive lower cost, higher efficiency and best-in-class user experience. And now we are racing to adopt new technologies, especially AI and industrial robotics to further automate many of our processes. For example, we already have AI applications in many of our work scenarios. Such as AI marketing, AI customer service, developing superior algorithms for search and recommendations to increase traffic allocation efficiency and AI-enabled streamlining of internal workflow just to name a few.

我們的強勁業績反映了我們致力於降低成本、提高效率並提供一流的使用者體驗。現在，我們正在競相採用新技術，特別是人工智慧和工業機器人，以進一步實現許多流程的自動化。例如，我們很多工作場景已經有AI的應用了。例如AI行銷、AI客服、開發更優秀的搜尋和推薦演算法來提高流量分配效率、透過AI簡化內部工作流程等等。

In particular, we have launched an AI shopping assistant called Singen, a chatbox that helps users to get personalized search results and recommendations, find best deals and discounts and compare products. In addition, we always try to improve our logistics automation level and have deployed proprietary industrial robotics in many key production segments.

具體來說，我們推出了一款名為 Singen 的人工智慧購物助手，這是一個聊天框，可以幫助用戶獲得個人化的搜尋結果和推薦，找到最優惠的價格和折扣並比較產品。此外，我們始終努力提高物流自動化水平，並在許多關鍵生產環節部署了專有的工業機器人。

In our fulfillment centers, which help to improve operational efficiency and safety of our employees and lower fulfillment cost for JD and the entire industry. We are confident that JD's business ecosystem offers a huge amount of user cases for AI adoption, which in turn will lead to further cost optimization, operating efficiency improvements and ultimately give a small leeway to provide our users with a better experience.

在我們的履行中心，這有助於提高員工的營運效率和安全性，並降低京東和整個行業的履行成本。我們相信，京東的商業生態系統為人工智慧的採用提供了大量的用戶案例，這反過來會進一步優化成本，提高營運效率，並最終為我們的用戶提供更好的體驗提供一點迴旋餘地。

We remain confident in our business position and are increasingly optimistic heading into 2025. We expect to see better consumption trends driven by the pickup in domestic demand and operating efficiency and user experience improvement powered by AI adoption.

我們對我們的業務地位依然充滿信心，並對 2025 年越來越樂觀。我們預計，受國內需求回升以及人工智慧應用推動的營運效率和用戶體驗改善的推動，消費趨勢將有所改善。

In addition, we see a compelling set of opportunities ahead of us, driven by the sustained momentum in user growth and engagement, the vast potential in general merchandise and our progress in platform ecosystem building. Looking ahead, we remain committed to lowering costs increasing efficiency and improving user experience to deliver a sustainable growth in the long term.

此外，我們看到了一系列引人注目的機遇，這些機會受到用戶成長和參與度的持續成長、百貨商品的巨大潛力以及我們在平台生態系統建設方面的進展的推動。展望未來，我們將持續致力於降低成本、提高效率、改善使用者體驗，實現長期永續成長。

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

接下來，我將把我們的財務重點交給伊恩 (Ian)。謝謝。

Thank you, Sandy, and hello, everyone. In light of the steady rebound in China's macro economy and consumption trends. We had a very solid Q4 and 2024 with both top and bottom lines recording strong momentum, particularly in Q4, revenues of both our electronics and home appliances and the general merchandise categories returned to double-digit growth year-over-year.

謝謝你，桑迪，大家好。鑑於中國宏觀經濟和消費趨勢穩步回升。我們的第四季和 2024 年業績非常穩健，營收和淨利潤均呈現強勁勢頭，尤其是在第四季度，我們的電子和家用電器以及百貨商品類別的收入同比均恢復了兩位數的增長。

Throughout 2024, we stay focused on enhancing our unique supply chain capabilities to lower cost and drive efficiency while continuing to make investments in user experience and user group. We saw market share expansion across many of our categories. And both our gross margin and non-GAAP net margin continued to expand year-on-year in Q4 and for the full year of 2024.

在整個2024年，我們將繼續專注於增強我們獨特的供應鏈能力，以降低成本並提高效率，同時繼續對用戶體驗和用戶群進行投資。我們看到許多產品類別的市場份額正在擴大。我們的毛利率和非 GAAP 淨利潤率在第四季度和 2024 年全年均繼續同比增長。

We are well on track to further strengthen our market position and move firmly towards our long-term profit targets. While driving business growth, we continue to return value to shareholders. Our Board has approved an annual cash dividend for 2024 of USD0.5 per ordinary share or USD1 per ADS, representing a 32% year-on-year increase on a per share level.

我們正進一步鞏固我們的市場地位，並堅定地朝著我們的長期利潤目標邁進。在推動業務成長的同時，我們也持續為股東帶來價值回報。公司董事會已批准2024年度現金股利為每股普通股0.5美元或每股美國存託憑證1美元，每股股利年增32%。

The aggregate amount is expected to be about USD1.5 billion, which is subject to minor adjustments based on our total issued and outstanding shares by the record date. In addition, we repurchased a total of 255 million Class A ordinary shares in 2024, equivalent to 128 million ADS accounting for 8.1% of our shares outstanding as of the end of 2023.

預計總金額約為 15 億美元，將根據截至記錄日我們已發行和流通的總股份數進行微調。此外，我們於 2024 年共回購了 2.55 億股 A 類普通股，相當於 1.28 億股 ADS，占我們截至 2023 年底已發行股票的 8.1%。

The increased annual dividend, combined with ongoing USD5 billion share repurchase program reflects our commitment to return value to shareholders as we have strong conviction in JD's long-term success.

年度股息的增加，加上正在進行的 50 億美元股票回購計劃，反映了我們向股東回報價值的承諾，因為我們對京東的長期成功堅信不疑。

Now, let's go through our Q4 and full year 2024 financial performance. Our net revenues were up 13% year-on-year to RMB347 billion in Q4 and up 7% year-on-year to RMB1.2 trillion for the full year of 2024, of which product revenues were up 14% and 7% year-on-year for the quarter and full year, respectively.

現在，讓我們來看看我們的 2024 年第四季和全年財務表現。我們第四季淨收入年增13%至人民幣3,470億元，2024年全年淨收入年增7%至人民幣1.2兆元，其中產品收入當季和全年分別年增14%和7%。

By category, electronics and home appliances revenues were up 16% year-on-year in Q4 and 5% for the full year as the government's stimulus policies continue to kick in. We are well positioned to fulfill the demand of consumers nationwide, both through online and offline channels. General merchandise revenues were up 11% year-on-year in Q4 and 9% for the full year of 2024, both representing a meaningful acceleration compared to respective previous periods.

從類別來看，隨著政府刺激政策持續發揮作用，電子及家電產品第四季營收年增16%，全年營收年增5%。我們可以透過線上和線下管道滿足全國消費者的需求。第四季百貨商品營收年增 11%，2024 年全年成長 9%，與前幾個時期相比均有顯著加速。

To break this down, supermarket revenues were up double digit year-on-year, both for Q4 and the full year of 2024, while the expansion category also gathered steam. This was driven by our persistent efforts to enhance operations and user experience with enriched product supplies and more appealing service offerings.

具體來說，超市收入在第四季和 2024 年全年均較去年同期成長兩位數，同時擴張類別也蓬勃發展。這是因為我們不斷努力透過豐富的產品供應和更具吸引力的服務來提升營運和用戶體驗。

Looking ahead to 2025 and the long term, general merchandise will remain an important growth driver with huge market potential and growing consumer mindshare. Service revenues grew also accelerated to 11% year-on-year in Q4 and 8% for the full year of 2024 within service marketplace and marketing were up 13% and 6% year-on-year, respectively.

展望2025年及長遠來看，百貨商品仍將是重要的成長動力，具有巨大的市場潛力和不斷增長的消費者份額。服務收入在第四季年增 11%，2024 年全年成長 8%，其中服務市場和行銷收入分別較去年同期成長 13% 和 6%。

While logistics and other services were up 10% and 9% year-on-year for the quarter and the full year, respectively. It's worth noting that revenue growth of marketplace and marketing has sequentially accelerated every quarter in 2024 with both commission and advertising revenues recording double-digit growth year-on-year in Q4.

而物流和其他服務當季和全年分別較去年同期成長10％和9％。值得注意的是，2024 年市場和行銷收入成長每季都連續加速，第四季佣金和廣告收入均較去年同期實現兩位數成長。

It's a clear sign that our ecosystem is gaining traction among both our suppliers and merchants. Now, let's turn to our segment performance. JD Retail revenues were up 15% year-on-year in Q4 and 7% for the full year of 2024, led by solid performance across many of our key categories. JD Retail continued to see gross margin expansion year-on-year. A trajectory that has been sustained for the past 11 quarters in a row. This strong track record has been primarily driven by the continued improvement of our supply chain capabilities and favorable mix shift towards higher-margin revenue streams.

這清楚地表明我們的生態系統正在受到供應商和商家的青睞。現在，讓我們來談談我們的分部表現。京東零售第四季營收年增 15%，2024 年全年營收成長 7%，這得益於我們許多關鍵品類的穩健表現。京東零售毛利率較去年同期持續擴大。這一軌跡已連續 11 個季度維持。這良好的業績記錄主要得益於我們供應鏈能力的持續提升，以及向更高利潤收入流的有利組合轉變。

JD Retail's gross profit expansion well exceeded the mild increase in operating expenses particularly in marketing expense as we invested in user growth and mindshare. As a result, its non-GAAP operating income continued to increase year-on-year, both in Q4 and for the full year of 2024 with non-GAAP operating margin reaching 3.3% and 4% up 68 bps and 24 bps, respectively.

京東零售的毛利成長遠遠超過了營業費用的溫和成長，特別是行銷費用，因為我們在用戶成長和心智份額方面進行了投資。因此，其非公認會計準則營業收入在第四季和 2024 年全年均持續較去年同期成長，非公認會計準則營業利潤率分別達到 3.3% 和 4%，成長 68 個基點和 24 個基點。

Moving on to JD Logistics. JD Logistics revenues were up 10% year-on-year for both Q4 and the full year of 2024. Both JD Logistics internal and external revenues saw double-digit year-on-year growth in Q4 and a similar growth pace for the full year 2024.

接下來是京東物流。京東物流第四季和2024年全年營收年增10%。京東物流內部和外部收入在第四季度均實現了同比兩位數成長，2024年全年也維持了類似的成長速度。

JD Logistics further optimized its logistics network closely integrated smart technology and increase the automation level of its operations to reduce cost and drive better efficiencies. This led to a year-on-year increase in its non-GAAP operating income for both Q4 and the full year of 2024.

京東物流進一步優化物流網絡，緊密結合智慧技術，提升物流營運的自動化水平，以降低成本、提高效率。這導致其2024年第四季和全年非GAAP營業收入年增。

JD Logistics non-GAAP operating margin reached 3.5% for the quarter and on a full year basis as well. In 2025, JD Logistics will further invest and enhance its capacity to handle increasing demand driven by the positive trends in both the macro conditions and consumer confidence. We believe this proactive effort will set JD Logistics on a stronger booking development.

京東物流非公認會計準則營業利益率本季及全年均達3.5%。2025年，京東物流將進一步投入，增強因應宏觀環境和消費者信心正向趨勢所推動的不斷增長的需求的能力。我們相信這項積極措施將使京東物流的預訂業務發展更加強勁。

Turning to new business. Revenues of the segment saw a year-on-year decline of 31% in Q4 and 28% for the full year of 2024, largely due to Jingxi's business adjustments. This widening non-GAAP operating loss was also attributable to Jingxi business, in line with our expectations as we further penetrated into lower-tier markets with expanded offering of value for money products. Lower tier markets remains a priority for us in 2025.

轉向新業務。該部門營收在第四季年減 31%，2024 年全年年減 28%，這主要是由於京西的業務調整。非公認會計準則下經營虧損的擴大也歸因於京西業務，這符合我們的預期，因為我們進一步滲透到低線市場，擴大了物有所值的產品供應。2025 年，低線市場仍將是我們的重點領域。

As we are becoming more confident in broadening our user base there, thanks to the progress we made in enhancing our product supplies and price competitiveness over the past year. On our consolidated profit performance at the group level, gross margin increased to 15.3% in Q4 and 15.9% for the full year of 2024, up 110 bps and 114 bps, respectively.

由於過去一年我們在增強產品供應和價格競爭力方面取得的進展，我們對擴大中國用戶群越來越有信心。就我們集團層級的綜合利潤表現而言，毛利率在第四季上升至15.3%，在2024年全年上升至15.9%，分別上升110個基點和114個基點。

The increase was driven by both JD Retail and JD Logistics gross margin expansion. Non-GAAP net profit attributable to ordinary shareholders increased by 34% and 36% year-on-year in Q4 and for the full year of 2024 with non-GAAP net margin of 3.3% and 4.1%, respectively, while we continue to allocate resources to improve user experience and foster future growth drivers throughout 2024.

這一成長主要得益於京東零售和京東物流毛利率的擴大。2024年第四季和全年非公認會計準則下歸屬於普通股股東的淨利潤年增34%和36%，非公認會計準則淨利潤率分別為3.3%和4.1%，同時我們將繼續分配資源以改善用戶體驗並在2024年全年培育未來成長動力。

We did a good job in unleashing operating efficiency, upholding our financial discipline and firmly moving towards our long-term profit targets. Our free cash flow for the full year of 2024 was RMB44 billion compared to RMB41 billion in 2023. This was driven by our enhanced profitability and moderated CapEx, partially offset by cash outflows to secure supplies of key categories, such as electronics and home appliances to keep up with the increasing demand in recent quarters.

我們充分釋放經營效率，堅守財務紀律，堅定邁向長期獲利目標。我們 2024 年全年的自由現金流為人民幣 440 億元，而 2023 年為人民幣 410 億元。這是由於我們盈利能力增強和資本支出適度所致，但為確保電子產品和家用電器等主要類別的供應以滿足近幾個季度不斷增長的需求而產生的現金流出部分抵消了這一影響。

By the end of Q4, our cash and cash equivalents, restricted cash and short-term investments totaled RMB241 billion. We are encouraged by our overall performance in 2024 with healthy expansions across both top and bottom line. This set of results was driven by effective execution of our strategies, disciplined investment and adoption of technology, including AI and robotics. The improving macro environment and the solid groundwork with build out give us confidence going into 2025, and we're optimistic for our healthy and sustainable growth over the long term.

截至第四季末，我們的現金及現金等價物、受限現金及短期投資總額為人民幣2,410億元。我們對 2024 年的整體表現感到鼓舞，營收和利潤均實現了健康的成長。這組成果得益於我們有效執行策略、嚴謹的投資以及對人工智慧和機器人等技術的採用。不斷改善的宏觀環境和堅實的建設基礎使我們對2025年充滿信心，並且我們對長期健康和可持續的成長充滿樂觀。

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

說完這些，我就把話題轉回給肖恩。謝謝。

Thank you, Ian. Okay. Next for the Q&A session. You're welcome to ask questions in Chinese and English. Our management team will answer the question in the language you asked. We'll provide English translation when necessary for convenience purpose only. In the case of any discrepancy, please refer to our management statement in original language. Operator, we can open the call for a Q&A session.

謝謝你，伊恩。好的。接下來是問答環節。歡迎您用中文或英文提問。我們的管理團隊將使用您要求的語言來回答問題。僅為方便起見，我們會在必要時提供英文翻譯。如果有任何差異，請參閱我們原始的管理聲明。接線員，我們可以開啟通話並進行問答環節。

(Operator Instructions) Ronald Keung, Goldman Sachs.

(操作員指示) 高盛的 Ronald Keung。

(spoken in foreign language) So I want to ask how should we think about the JD growth drivers over this year and next year, maybe beyond the near-term strength in electronics and appliances. And we mentioned our supermarkets. So what are our investment priorities this year for the supermarket category?

（外語）所以我想問一下，我們應該如何看待今年和明年京東的成長動力，也許除了電子和家電領域的短期強勁成長之外。我們也提到了我們的超市。那麼今年超市品類我們的投資重​​點是什麼呢？

And separately, on the government expanded appliance now, including electronic training programs. So how has the electronics and appliances category grown -- trended so far in the first quarter? And in face of the higher base from the second half and maybe some of the diminishing demand elasticity from the program that started from September last year. How -- what are we doing to solidify this category leadership?

另外，政府現在擴大了設備，包括電子培訓計畫。那麼，第一季迄今為止，電子和家電類別的成長趨勢如何？並且面對下半年較高的基數以及去年9月啟動的計畫所帶來的需求彈性可能減弱的情況。我們如何－我們正在做什麼來鞏固這個類別的領導地位？

(interpreted) Thank you, Ronald, for your question. You can see in 2024, we achieved solid double-digit growth across most of our major categories, including electronics and home appliance and general merchandise. Although the industry landscape varies across these categories, the underlying growth driver is at long-term investment center around user experience, cost and efficiency which continue to unleash significant growth potential and generate differentiated growth opportunity for JD in the future.

（翻譯）謝謝羅納德的提問。您可以看到，到 2024 年，我們在大多數主要類別中都實現了穩健的兩位數成長，包括電子產品、家用電器和百貨商品。雖然各類別的產業格局各不相同，但其成長的根本動力在於圍繞用戶體驗、成本和效率的長期投資中心，這將繼續釋放巨大的成長潛力，並為京東未來創造差異化的成長機會。

In 2025, the government aims to continue its effort to boost consumption. We are very committed to contributing to government's efforts by leveraging our own supply chain efficiency, superior customer service. At the same time, we are making proactive investment in general merchandise category, user experience and user growth and platform ecosystem, which have already used some positive progress. We believe this driver will continue to propel growth of retail of the business in 2025 and beyond.

2025年，政府將繼續加強消費。我們致力於利用我們自己的供應鏈效率和卓越的客戶服務為政府的努力做出貢獻。同時，我們在日用百貨類別、用戶體驗與用戶成長以及平台生態等方面進行了積極的投入，並已取得一些積極進展。我們相信，這項驅動力將在 2025 年及以後繼續推動業務零售的成長。

So starting with general merchandise category. Over the past period, we continue to improve on our operational capabilities and category mindshare, especially in supermarket and fashion categories. Going forward, we expect general merchandise category to maintain strong growth momentum. In terms of user growth as our user experience continues to improve, both number of the QAC, the quarterly active user and shopping frequency have maintained double-digit growth in each quarter over the past year.

因此從日用商品類別開始。過去一段時間，我們不斷提升營運能力和品類市場份額，特別是在超市和時尚品類。展望未來，我們預期百貨商品類別將維持強勁的成長動能。在用戶成長方面，隨著用戶體驗的不斷提升，過去一年來，QAC數量、季度活躍用戶數、購物頻率等每季都保持了兩位數的成長。

We'll continue to fine-tune our user traffic operation to drive healthy growth in both our user base and user engagement this year. In platform ecosystem, you can see, besides our mindshare of the user mindshare in our 1P direct sale business model continues to get stronger. Our user recognition of JD 3P marketplace is also deepening. In Q4, the number of 3P active users and 3P order volumes continue to accelerate, both outpacing the overall JD Retail segment growth. The improved ecosystem engagement is building good momentum for us in terms of our long-term sustainable growth.

我們將繼續微調我們的用戶流量運營，以推動今年用戶群和用戶參與度的健康成長。在平台生態中，你可以看到，除了我們的1P直銷商業模式的用戶心智份額之外，我們的心智份額還在不斷增強。用戶對京東第三方市場的認可也不斷加深。第四季度，3P活躍用戶數和3P訂單量持續加速，均超過京東零售整體板塊的成長。生態系參與度的提高為我們的長期永續發展注入了良好的勢頭。

I want to provide more color on supermarket category. So over the past few years, we have focused on improving the category operational capability and supply chain capabilities. And especially, we'll further enhance our procurement and sales capabilities and category operation. Our goal is to provide users with more value for the money product across a broader price range. So we have seen notable improvement in some key subcategory within supermarket. Revenue growth have achieved -- have outpaced overall growth of supermarket category in double digits.

我想在超市類別上提供更多顏色。所以過去幾年我們專注於提升品類營運能力和供應鏈能力。特別是，我們將進一步增強我們的採購和銷售能力以及品類運作。我們的目標是為用戶提供更廣泛價格範圍內更物有所值的產品。我們看到超市內一些關鍵子類別取得了顯著的改善。營收成長已達到－超過超市類別整體成長的兩位數。

Going forward, continue to improve operational capability of this more subcategories, also advancing fulfillment network planning and efficiency improvement is a key. We'll continue to work closely with JD Logistics to develop fulfillment network model tailored to supermarket category to lower the fulfillment cost and improve delivery efficiency.

未來，持續提升更多子品類的營運能力，推動履行網路規劃和效率提升也是關鍵。我們將繼續與京東物流密切合作，開發適合超市品類的配送網路模型，以降低配送成本並提高配送效率。

So since the second half of last year, the government introduced a series of consumption stimulating policy and we have seen that the policy have driven a steady recovery in consumer confidence. So since the beginning of this year, we see -- we saw mobile phone demand has rebounded and laptop PC sales remain very strong in JD. Although home appliance sales early this year were temporarily affected as some of the sales were pull-forward to the end of 2024. But the sales of home appliances have shown the month-on-month acceleration in Q1.

所以從去年下半年以來，政府推出了一系列刺激消費的政策，我們看到這些政策推動了消費者信心的穩定復甦。因此，自今年年初以來，我們看到手機需求已經反彈，京東的筆記型電腦銷售仍然強勁。雖然今年年初的家電銷售受到了暫時的影響，因為部分銷售被提前到2024年底。但第一季家電銷售量呈現季速加速的態勢。

How to enhance our market share. So as you just mentioned, since the second half of last year, government consumption supporting policy has effectively boosted home appliance sales, which potentially creates a high base for the industry. However, we see more long-term bank of home appliance industry upgrade and positive structural change in the industry as well as the vast potential demand unleashed by the treating program of home appliance.

如何提升我們的市場佔有率。所以正如您剛才提到的，從去年下半年以來，政府的消費支持政策有效地促進了家電銷售，這可能為該行業創造較高的基數。然而，我們更看好家電產業升級的長期前景和產業積極的結構性變化，以及家電加工計畫釋放的巨大潛在需求。

It's worth noting that the unit -- the volumes sold compared to the total industry market size is still very limited. So we are very confident to continue consolidating and expanding our market share -- market position.

值得注意的是，該單位的銷售量相對於整個行業市場規模來說仍然非常有限。因此，我們非常有信心繼續鞏固和擴大我們的市場份額和市場地位。

So on one hand, we'll enhance our trading service capabilities and provide consumers with better trading experience will continue to stimulate potential demand for all the consumer goods upgrading. Additionally, we'll leverage our supply chain advantage to reach out to more users in low-tier markets through more channels, meeting their demand for treating services.

所以一方面我們會提升我們的交易服務能力，提供消費者更好的交易體驗，會持續刺激所有消費品升級的潛在需求。另外，我們會發揮供應鏈優勢，透過更多的管道去接觸更多低線市場的用戶，滿足他們的治療服務需求。

Last but not least, we'll continue to leverage our deep user insights to drive innovation in the industry and stimulate consumer sentiment.

最後但同樣重要的一點是，我們將繼續利用深刻的用戶洞察力來推動產業創新並激發消費者情緒。

Kenneth Fong, UBS.

瑞銀的 Kenneth Fong。

(spoken in foreign language) Congrats on the very strong set of results. Over 2024, JD has been very prudent, and I focus on investment that allow us to deliver a very robust over 30% year-on-year earnings growth. We noticed that JD has been set up investment in some areas like fashion, infant retail. So can management share with us the strategy and scale of this investment of these new initiatives? How will management balance the growth and profitability for these investments?

（外語）祝賀您取得如此強勁的成績。2024 年，京東一直非常謹慎，我專注於投資，這使我們能夠實現超過 30% 的同比增長。我們注意到京東已經在時尚、母嬰零售等一些領域進行了投資。那麼管理階層能否與我們分享這些新措施的投資策略和規模？管理層將如何平衡這些投資的成長和獲利能力？

A follow-up question is on food delivery. I noticed that recently we have been onboarding new and high-quality catering merchants with CO commission. So can management share with us the strategy, positioning and scale of investment for instant retail? And how would the food delivery initiative affect our margin and profitability?

後續問題是關於食品配送的。我注意到最近我們一直在引入新的優質餐飲商家並發放 CO 佣金。那麼管理層能否與我們分享即時零售的策略、定位和投資規模？那麼，食品配送計劃會對我們的利潤和獲利能力產生什麼影響呢？

(interpreted) Thank you, Kenny, for your question. In 2024, we achieved healthy business growth and continued to invest in user experience and our core competitiveness. We saw stronger business fundamentals and market position of our different segments.

（翻譯）肯尼，謝謝你的提問。2024年，我們實現了健康的業務成長，並持續投入使用者體驗和核心競爭力。我們看到不同部門的業務基本面和市場地位更加強勁。

Our JD business model is built on supply chain capabilities and centered around the user experience. Our investments will also focus on these two areas. This approach will further scale up our business, improve operating efficiency and lead to profit expansion, which will enable us to invest in our long-term development, creating a virtual cycle.

我們的京東商業模式建立在供應鏈能力之上，以使用者體驗為中心。我們的投資也會集中在這兩個領域。這項做法將進一步擴大我們的業務規模，提高營運效率，擴大利潤，使我們能夠投資長期發展，形成一個虛擬循環。

At the same time, we will be continuously optimizing our fulfillment network by streamlining our transportation rules and the layout of warehouses and continuously investing in robotics technologies. We aim to reduce the performance cost of the entire industry. This is particularly important for improving the profitability of our supermarket business. Currently, our businesses and segments are at different stage of development. Therefore, our priorities are different for more established categories such as electronics and home appliances, we will further optimize our supply chain efficiency and unleashed still benefits to drive steady profit improvement.

同時，我們將透過簡化運輸規則和倉庫佈局以及持續投資機器人技術來持續優化我們的履行網路。我們的目標是降低整個產業的績效成本。這對於提高我們超市業務的獲利能力尤其重要。目前，我們的業務和分部處於不同的發展階段。因此，對於電子、家電等較成熟的類別，我們的優先事項有所不同，我們將進一步優化供應鏈效率，釋放更多效益，推動利潤穩定提升。

Within the general merchandise category for supermarket, we are committed to driving robust growth momentum while at the same time, continuing to improve its profitability. As just noted, fulfillment network optimization is important for supermarkets profit improvement. For the apparel category, we will continue to work on user mindshare and supply chain capabilities in order to gain awareness and preference of more and more users.

在超市百貨類方面，我們致力於保持強勁成長勢頭，同時持續提高其獲利能力。正如剛才所說，配送網路優化對於超市利潤的提高非常重要。對於服裝類別，我們將繼續致力於使用者心智和供應鏈能力，以獲得越來越多用戶的關注和青睞。

In terms of our exploration in new businesses, on-demand retail is a natural extension of JD's core retail business. It is at a early stage now, and our focus is to explore differentiated business model and enrich our high-quality supplies.

在新業務探索方面，按需零售是京東核心零售業務的自然延伸。目前還在早期階段，重點是探索差異化的商業模式，豐富優質貨源。

Long-term sustainable growth and proactive investments complement and support each other. In 2025, we will continue to leverage scale effects and the supply chain efficiency in our core businesses and categories to drive profit improvement.

長期可持續成長與積極主動的投資相輔相成、相互支持。2025年，我們將持續發揮核心業務和品類的規模經濟和供應鏈效率，推動獲利提升。

Meanwhile, our track record has proved many times that our investments are ROI-focused and follow stringent financial discipline. This approach will not change. We are confident to steadily progress towards our long-term margin target.

同時，我們的業績記錄已多次證明，我們的投資注重投資回報率並遵循嚴格的財務紀律。這一做法不會改變。我們有信心穩步實現我們的長期利潤目標。

(interpreted) This is Sandy. I'll answer your second question on food delivery and on-demand retail. So first and foremost, our strategic focus of retail business has never changed. I recommend you to that on-demand retail or food delivery should not be considered as a stand-alone business. Instead, this should be viewed within the broader context of JD overall retail capability and service experience. So our attempt in the on-demand retail, including food delivery has -- should have a positive impact on in reaching our consumption use case establishing capabilities, meeting user, our users' diverse demand and enhancing our user experience.

（翻譯）我是桑迪。我來回答你關於食品配送和按需零售的第二個問題。所以首先，我們的零售業務策略重點從未改變。我建議你不要將按需零售或食品配送視為獨立業務。相反，這應該從京東整體零售能力和服務體驗的更廣泛背景來看待。因此，我們在按需零售（包括食品配送）方面的嘗試應該會對實現我們的消費用例建立能力、滿足用戶、用戶的多樣化需求和增強我們的用戶體驗產生積極的影響。

In terms of consumption use case, on-demand retail is a natural extension of our core retail business and food delivery is one of the high-frequency services within the on-demand retail business. It can enrich our service -- user service touch point provide higher-quality offerings. So therefore, enhance user stickiness and engagement on our platform. So in long term, can increase our user value.

從消費場景來看，按需零售是我們核心零售業務的自然延伸，而外帶則是按需零售業務中的高頻服務之一。它可以豐富我們的服務－用戶服務接觸點提供更高品質的產品。因此，增強我們平台的用戶黏性和參與度。所以從長遠來看，可以增加我們的用戶價值。

From the capability building perspective, we focus on further leveraging and enhancing our existing fulfillment and delivery infrastructure. The faster and more flexible on-demand delivery capability serves as a strong complement to JD's efficient 211 fulfillment network and ability, our goal is to improve the overall efficiency of the delivery network.

從能力建構的角度來看，我們專注於進一步利用和增強我們現有的履行和交付基礎設施。更快、更有彈性的按需配送能力是對京東高效的211配送網路和能力的有力補充，我們的目標是提高配送網路的整體效率。

Both our core e-commerce business and on-demand retail will benefit from this. From a user perspective, we have observed the demand from our user for high-quality food delivery services. So meeting users' differentiated needs can further reinforce their trust in JD complementing user mindshare of our core e-commerce business.

我們的核心電子商務業務和隨選零售都將從中受益。從使用者角度，我們觀察到使用者對高品質外送服務的需求。因此，滿足用戶的差異化需求可以進一步增強他們對京東的信任，補充用戶對我們核心電子商務業務的認知份額。

So regarding the pace and impact of our attempt in on-demand retail. First, we'll prioritize serving JD existing user base through expanding consumption scenarios and supply diversity, therefore, increasing purchase frequency and user stickiness. We are -- we have also observed the demand for high-quality food delivery.

關於我們在按需零售方面的嘗試的速度和影響。首先，我們會優先服務京東現有用戶群，拓展消費場景，豐富供給方式，提升購買頻次和用戶黏性。我們也觀察到了高品質食品外送的需求。

So with a stronger emphasis on food safety, we target to enrich supply for high-quality chain restaurant by recruiting and supporting premium merchants enhancing delivery riders' welfare. This initiative will gradually establish a differentiated user mindshare of high-quality food delivery.

因此，我們更加重視食品安全，旨在透過招募和支持優質商家來豐富優質連鎖餐廳的供應，提高外送騎手的福利。此舉將逐步建立高品質外送的差異化用戶心態。

In terms of pace of the business, we'll further develop differentiated capabilities and business models based on our existing e-commerce infrastructure. for food delivery is still in a very early exploration stage we are making strategic and disciplined experiments and investments.

在業務節奏方面，我們將在現有的電子商務基礎設施基礎上進一步發展差異化的能力和商業模式。對於食品配送仍處於非常早期的探索階段，我們正在進行策略性和規範性的實驗和投資。

So we'll retain flexibility to adjust our approach as the business evolves, and we'll provide updates to investor and analysts in a timely manner. But we believe in the long term, our objective has always been enhancing shareholder value and the company profitability.

因此，我們將保持靈活性，隨著業務的發展調整我們的方法，並及時向投資者和分析師提供最新資訊。但我們相信，從長遠來看，我們的目標一直是提高股東價值和公司獲利能力。

Jialong Shi, Nomura.

史家龍，野村。

(spoken in foreign language) DeepSeek large language model has been widely deployed by many Chinese Internet companies. Just wondering what JD's strategy on AI and has JD deployed or plan to deploy large language model to MF your business? What are the -- what impact should we expect from AI deployment in the near and the long term?

（外語）DeepSeek 大語言模式已經被國內許多網路公司廣泛部署。我只是想知道京東在人工智慧方面的策略是什麼，京東是否已經部署或計劃將大型語言模型部署到MF您的業務中？我們應該期待人工智慧部署在近期和長期產生什麼影響？

(interpreted) Jialong, that's a very good question. So JD.com has always been active driving for business innovation, efficiency improvement and cost reductions to technology. We have widely adopted AI technology across various business scenarios, which is driven not only by the top-down initiative from the company, but also the bottom-up adoption and utilization by our employees.

（翻譯） 嘉龍，這是一個非常好的問題。所以京東一直積極用科技推動業務創新，提高效率，降低成本。我們在各個業務場景中廣泛採用了人工智慧技術，這不僅是由公司自上而下的推動，也是由員工自下而上的採用和利用所推動的。

So due to our differentiated business model, we have a deeper knowledge in supply chain. So our active adoption is leveraging this in-depth supply chain know-how and our operational data as well as more diverse retail and supply chain use case.

因此，由於我們差異化的商業模式，我們對供應鏈有了更深入的了解。因此，我們積極採用這種深入的供應鏈專業知識和營運數據以及更多樣化的零售和供應鏈用例。

So just to give you some example on on the user front to enhance user experience, we have restructured search and recommendation system for JD Retail through AI, which resulted in increase in search result satisfaction and traffic distribution efficiency.

舉幾個使用者方面的例子，為了提高使用者體驗，我們透過人工智慧重構了京東零售的搜尋和推薦系統，從而提高了搜尋結果的滿意度和流量分配效率。

Additionally, we have launched AI shopping assistant called Jinan and Avtar to provide users with more comprehensive product information, professional recommendations, therefore, lower the cost of search and select products for them.

此外，我們也推出了AI購物助理金南和Avtar，為用戶提供更全面的商品資訊和更專業的推薦，降低用戶搜尋和選擇商品的成本。

So in terms of helping merchants providing tools for merchants, we have provided 24/7 AI-powered operation agency service and AI system tools for merchants covering the entire process from product launch, order management after self service, customer support to data analysis. Our AI tools include sales forecasting, AI marketing campaigns, AI JD platform for marketing content AI pricing, AI customer service and more. So these tools are helping our merchants enhance their operational efficiency and reduce costs.

所以在幫助商家為商家提供工具方面，我們為商家提供了7*24小時的AI營運代理服務和AI系統工具，涵蓋了從產品上線、自助後訂單管理、客服支援到資料分析的全流程。我們的AI工具包括銷售預測、AI行銷活動、行銷內容AI京東平台、AI定價、AI客戶服務等。這些工具正在幫助我們的商家提高營運效率並降低成本。

So in terms of our supply chain management fulfillment, our AI algorithm is improving the accuracy of matching demand and supply. And we also continue to increase -- increase the logistic automation level. We have deployed proprietary industry robotics in many of the key production segments in our fulfillment center to improve operating efficiency and lower fulfillment costs for JD and the entire industry.

因此，就我們的供應鏈管理履行而言，我們的人工智慧演算法正在提高需求和供應匹配的準確性。我們也持續提高物流自動化水準。我們在履行中心的許多關鍵生產環節部署了專有行業機器人，以提高京東和整個行業的營運效率並降低履行成本。

Also at the same time, our team is extensively integrating proactively integrating AI into various daily workflow and processes to boost efficiency and reduce cost. For example, AI has significantly enhanced productivity in specific workflows such as short view content reviews and employee reimbursement. Also, our developers are leveraging AI programming assistant to compel read and optimize coding more efficiently. So this AI and technology innovation and applications, we are just started with this AI technology innovation applications. There are many more to come and AI is playing an increasingly important role within JD's overall operation, consistently enhancing user experience, driving growth and improve efficiency over the long term.

同時，我們的團隊正在廣泛積極地將人工智慧融入各種日常工作流程和流程中，以提高效率並降低成本。例如，人工智慧顯著提高了短視訊內容審核、員工報銷等特定工作流程的生產力。此外，我們的開發人員正在利用人工智慧程式設計助理來更有效地強制讀取和優​​化編碼。因此，對於人工智慧技術創新和應用，我們才剛開始。接下來還有更多，人工智慧在京東的整體營運中發揮越來越重要的作用，持續增強用戶體驗，推動成長並長期提高效率。

Alicia Yap, Citigroup.

花旗集團的 Alicia Yap。

(spoken in foreign language) How should we think about the year-over-year growth rate for the electronics category versus the year-over-year growth rate for your general merchandise categories for 2025? Second question is, can management update us on JD latest shareholder return progress and thinking?

（外語）我們該如何看待 2025 年電子產品類別的年成長率與日用商品類別的年成長率？第二個問題是，管理階層能否向我們介紹京東最新的股東回報進度和想法？

(interpreted) Thank you, Alicia, for your questions. First, over the years of development, JD has become a well-established e-commerce platform that covers all kinds of categories. We have built user mindshare and the differentiated competitive edge for both the electronics and home appliances and the general merchandise categories.

（翻譯）謝謝艾莉西亞的提問。首先，經過多年的發展，京東已成為一個成熟的、覆蓋全品類的電商平台。我們已經在電子家電和百貨商品類別中建立了用戶心智份額和差異化競爭優勢。

Different categories are also subject to different growth and development trends within their respective industries. For JD Retail business through each category's joint efforts to improve product offerings, price competitiveness and providing better service to users, the JD platform as a whole will have stronger user trust and mindshare.

不同類別在各自的產業內也呈現不同的成長和發展趨勢。對於京東零售業務來說，透過各個品類的共同努力，提升產品供給、價格競爭力，為用戶提供更好的服務，京東平台整體將獲得更強的用戶信任度和認知度。

Our Q4 results speak a lot about what I just said. In the quarter, we saw double-digit growth across revenues of electronics and home appliances also revenues of general merchandise and our quarterly active customers as well as our service revenues.

我們的第四季業績充分證明了我剛才所說的內容。本季度，我們的電子和家用電器收入、百貨商品收入、季度活躍客戶收入以及服務收入均實現了兩位數成長。

In 2025, in terms of electronics and home appliance category, with our differentiated strength in supply chain and user mindshare, we will be able to serve more users, improve user experience and continue to gain market share.

2025年，在電子及家電品類方面，我們將憑藉在供應鏈和用戶心智方面的差異化優勢，服務更多用戶，提升用戶體驗，持續獲得市場份額。

While it's expected that this category will see certain high base impact in the second half of the year. For general merchandise category, such as supermarkets, fashion products and home goods, we expect its robust growth momentum to sustain in 2025. General merchandise will be our important growth driver for this year and going forward.

而預計該類別在下半年會受到一定的高基數影響。對於超市、時尚產品和家居用品等百貨商品類別，我們預計其強勁的成長動能將持續到 2025 年。百貨商品將是我們今年及未來重要成長動力。

In addition, JD has multiple growth drivers. We see opportunities in our user base expansion, platform ecosystem development and our explorations in categories and new businesses. This will help to fuel our long-term sustainable growth.

此外，京東擁有多個成長動力。我們在用戶群擴展、平台生態系統發展以及類別和新業務的探索中看到了機會。這將有助於促進我們的長期永續成長。

In terms of shareholder return, in 2024, we were committed to returning value to our shareholders through both dividends and buybacks. This was mainly attributable to our healthy business progress and profit expansion. To recall, our annual dividend for the year of 2023 was USD1.2 billion in aggregate or month and we just announced that the annual dividend for the year of 2024 would increase to around USD1.5 billion, which translated to USD1 per ADS, representing 32% year-on-year increase on per share level.

在股東回報方面，2024年，我們致力於透過股利和回購為股東帶來價值回報。這主要歸功於我們業務的健康發展和利潤的擴大。回想一下，我們 2023 年的年度股息總計或每月為 12 億美元，我們剛剛宣布 2024 年的年度股息將增加到 15 億美元左右，相當於每股 ADS 1 美元，每股水平同比增長 32%。

In addition to that, we also accelerated share buyback in 2024. We bought back 8.1% of our outstanding shares for a total amount of USD3.6 billion. In 2025, we will remain committed to shareholder returns for the back -- our ongoing USD5 billion share buyback program will be fully used in three years as planned. For dividend, we will continue to follow our annual cash dividend policy. These demonstrates our confidence in JD's long-term development.

除此之外，我們也在 2024 年加速了股票回購。我們回購了8.1％的流通股，總額為36億美元。2025年，我們將繼續致力於為股東帶來回報——我們正在進行的50億美元股票回購計畫將按計劃在三年內全部使用完。對於股息，我們將繼續遵循年度現金股利政策。這體現了我們對京東長期發展的信心。

Thomas Chong, Jefferies.

傑富瑞 (Jefferies) 的托馬斯張 (Thomas Chong)。

(spoken in foreign language) My first congratulation on a strong set of results. My first question is that we have been seeing a performance for trading program and subsidies for home appliance and smart phones is doing very well during the Chinese New Year. On the other hand, the retail sales data expectations, can management share your thoughts about the latest policies as well as the trend in consumer sentiment?

（外語）首先，我對這一系列強勁的成果表示祝賀。我的第一個問題是，我們看到交易計畫的表現以及家電和智慧型手機的補貼在農曆新年期間表現非常好。另一方面，對於零售銷售數據的預期，管理階層能否分享您對最新政策以及消費者信心趨勢的看法？

My second question is about 2025 earnings outlook as well as the margin trend over the next few years.

我的第二個問題是關於2025年的獲利前景以及未來幾年的利潤率趨勢。

(interpreted) Thank you, Thomas. As you have noticed the government have launched many supportive policy and especially in yesterday's government work report several economic goal was mentioned and with heightened emphasis on boosting consumption, particularly emphasizing on continued consumer trading program. So -- also early this year, several indicators suggest that consumer market has continued to show steady growth.

（翻譯）謝謝你，托馬斯。正如你所注意到的，政府已經推出了許多支持性政策，特別是在昨天的政府工作報告中提到了幾個經濟目標，並更加強調促進消費，特別是強調繼續實施消費交易計劃。因此—今年年初，多項指標顯示消費市場持續呈現穩定成長。

So we have -- on JD, we have also seen very similar improved consumer demand momentum. So while in short term, we believe there are still challenges on the macro side. But in the long term, we remain very optimistic about consumer sentiment as China's consumption market is resilient with huge potential. The recent policy launched by the government will continue to take effect and ultimately reach out to consumers and gradually boosting the purchasing power and willingness to spend, which will provide us with significant growth opportunity.

因此，我們在京東也看到了非常類似的消費者需求改善動能。因此，儘管從短期來看，我們認為宏觀方面仍然存在挑戰。但從長期來看，我們仍然對消費者信心非常樂觀，因為中國的消費市場具有彈性且潛力巨大。政府近期推出的政策將持續發揮作用，最終惠及消費者，逐步提高購買力和消費意願，這將為我們提供巨大的成長機會。

(interpreted) So in terms of our future profit performance, first of all, for 2025, we will continue to improve our supply chain efficiency in core categories to unlock our potential in profit expansion. At the same time, we will continue to invest in our long-term goals with financial discipline.

(翻譯)所以從我們未來的利潤表現來說，首先，2025年，我們將繼續提升核心品類的供應鏈效率，釋放我們利潤擴張的潛力。同時，我們將繼續在財務紀律的基礎上投資於我們的長期目標。

In terms of our long-term margin target, as we shared before, we believe it will reach a high single-digit level over time. Our steady profit expansion last year made us more confident in achieving this target. It also shows that we have great room to further improve our profit performance.

就我們的長期利潤率目標而言，正如我們之前所分享的，我們相信隨著時間的推移，它將達到較高的個位數水平。去年利潤的穩步擴大使我們對實現這一目標更加有信心。這也說明我們的獲利表現還有很大的進步空間。

In the next few years, we will continue to focus on improving our supply chain efficiency to drive steady margin expansion, specifically our key business model will help to improve our supply chain efficiency. JD's gross margin has been going up for 11 quarters in a row.

未來幾年，我們將繼續致力於提高我們的供應鏈效率，以推動利潤率的穩定擴大，具體來說，我們的關鍵業務模式將有助於提高我們的供應鏈效率。京東的毛利率已連續11季上升。

This is mainly attributable to the increase in our product sales gross margin and JD Logistics optimization in cost and efficiency. We believe that as we continue to increase our supply chain efficiency, it will help to further reduce cost and enhance efficiency across the entire industry chain. This will not only enable us to better serve our business partners and users, but also lead to improvement in our profitability.

這主要得益於我們產品銷售毛利率的提升以及京東物流在成本和效率上的最佳化。我們相信，隨著我們不斷提高供應鏈效率，將有助於進一步降低成本並提高整個產業鏈的效率。這不僅使我們能夠更好地服務我們的業務合作夥伴和用戶，而且還能提高我們的獲利能力。

In terms of better margin performance of different categories, we believe many of our categories, including supermarket, still have a lot of room to further uplift their margins. Even for more established categories such as electronics and home appliances, there is room for further improvement as well.

從不同品類的利潤率表現來看，我們認為包括超市在內的許多品類的利潤率還有很大的提升空間。即使是電子和家用電器等較成熟的類別，也還有進一步改進的空間。

Finally, in terms of a mix of 3P versus 1P as the proportion of our 3P business steadily goes up over time, it will also benefit our margin performance.

最後，就 3P 與 1P 的組合而言，隨著我們的 3P 業務比例隨著時間的推移而穩步上升，這也將有利於我們的利潤率表現。

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

我們現在即將結束電話會議。現在我將把電話轉給京東的張曉剛做最後發言。

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

感謝您今天的參加電話會議，也感謝您的提問。如果您還有其他問題，請聯絡我和 IR 團隊。感謝您對京東的關注，期待下個季度再次與您溝通。謝謝。

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

感謝大家參加今天的會議。本次演講到此結束。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.

本記錄中標記（翻譯）的部分是由現場通話中的翻譯人員說的。翻譯由贊助此活動的公司提供。