京東 (JD) 2021 Q4 法說會逐字稿

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

您好，感謝您參加京東2021財年第四季及全年財報電話會議。 （操作說明）本次會議正在錄音。 （操作說明）

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

現在我將會議交給今天的主持人，投資者關係總監張先生。請您開始吧。

Thank you. Good evening and good morning, everyone. Welcome to our Fourth Quarter and Full Year 2021 Earnings Conference Call. Joining us on the call today are Mr. Lei Xu, President of JD.com and Ms. Sandy Xu, our CFO.

謝謝大家。各位晚上好/早安。歡迎參加京東2021財年第四季及全年業績電話會議。今天出席會議的有京東總裁徐磊先生和財務長徐珊迪女士。

For today's call, Lei will kick off with opening remarks, and Sandy will discuss the financial highlights. After that, we'll open the call to questions from analysts.

在今天的電話會議上，Lei 將首先致開幕詞，Sandy 將介紹財務亮點。之後，我們將開放分析師提問環節。

Before we continue, let me remind you of today's call will include forward-looking statements, and please refer to our latest safe harbor statement in the earnings press release on our IR website, which applies to this call. Also during this call, we will discuss certain non-GAAP financial measures. Please also refer to our earnings release which contains a reconciliation of non-GAAP measures to the comparable GAAP measures. Finally, please note, unless otherwise stated, all figures mentioned in this call are in RMB. And now I'd like to turn the call over to our President, Mr. Xu?

在繼續之前，請允許我提醒各位，今天的電話會議將包含前瞻性陳述，請參閱我們投資者關係網站上發布的盈利新聞稿中的最新安全港聲明，該聲明適用於本次電話會議。此外，在本次電話會議中，我們將討論一些非GAAP財務指標。另請參閱我們的獲利新聞稿，其中包含非GAAP指標與對應GAAP指標的調節表。最後，請注意，除非另有說明，本次電話會議中提及的所有數字均以人民幣為單位。現在，我將把電話會議交給我們的總裁徐先生。

[Interpreted] Hello, everyone. This is Lei Xu. Thank you for joining JD.com's 2021 Fourth Quarter and Full Year Earnings Call. JD continues to deliver high-quality growth amid the evolving macro consumption and industry environment in the fourth quarter. Total revenues recorded at 23% year-on-year growth in Q4 on a high [cone] and grew nearly 28% for the full year of 2021. This shows that we continued to outperform the industry and continued to -- contributed to the high-quality expansion of China's consumption.

【翻譯】大家好，我是徐磊。感謝各位參加京東2021年第四季及全年業績電話會議。在不斷變化的宏觀消費和行業環境下，京東在第四季度繼續保持高品質成長。第四季總營收年增23%，全年營收年增近28%。這表明我們持續跑贏產業，並繼續為中國消費的高品質成長做出貢獻。

At the same time, we achieved a healthy profit growth in this quarter, thanks to improvements in efficiency driven by technology. Our progress demonstrates the increasing appreciation JD has earned among consumers and business partners. It also validates that good type of real economy-based enterprises have become important driving forces for growth in the retail industry and up and downstream entities. JD's business and investment strategies have always centered on users and business partners through different economic cycles, and our strategic determination and focus.

同時，由於技術驅動的效率提升，我們在本季實現了穩健的利潤成長。我們的進展反映了京東在消費者和合作夥伴中日益增長的認可度，也印證了優質實體經濟型企業已成為零售業及上下游產業成長的重要驅動力。京東的經營和投資策略始終以使用者和合作夥伴為中心，貫穿不同的經濟週期，這反映了我們堅定的策略決心和專注。

First, in terms of users, we saw synchronized increases of both user number and quality. In 2021, annual active users reached 570 million maintaining efficient and healthy growth, while the overall consumption industry underwent recovery. More importantly, we saw users' shopping frequency, range of categories purchase and (inaudible) improved in the fourth quarter. This was driven by our stronger user engagement and omnichannel initiatives. Here, I would like to reiterate 2 points with you that I have (inaudible).

首先，就用戶而言，我們看到用戶數量和品質同步成長。 2021年，年度活躍用戶達到5.7億，維持了高效健康的成長，而整體消費產業也實現了復甦。更重要的是，我們看到用戶在第四季的購物頻率、購買品類範圍以及（聽不清楚）均有所提升。這得歸功於我們更強大的用戶互動和全通路舉措。在此，我想再次強調兩點（聽不清楚）。

First, JD's goal is not to chase high growth and single operating financial metrics. In fact, we focus on healthy and sustainable growth of our business as a whole. Second, as China's Internet industry developed into a more mature stage, the traffic-driven growth model driven by subsidies is being replaced by the user quality and operating efficiency-oriented model. In such a new environment, we believe that JD's user growth and business operations are facing so-called (inaudible). Time is on our side. We have much to do as there are still many users need to be explored and satisfied. We always set higher spend (inaudible).

首先，京東的目標並非追求高成長和單一的營運財務指標。事實上，我們更注重業務整體的健康永續成長。其次，隨著中國網路產業發展日益成熟，以流量驅動、補貼驅動的成長模式正逐漸被以使用者品質和營運效率為導向的模式所取代。在這樣的新環境下，我們認為京東的用戶成長和業務運作正面臨所謂的（聽不清楚）。時間站在我們這邊。我們還有很多工作要做，因為還有大量用戶需要挖掘和滿足。我們始終堅持更高的投入（聽不清楚）。

And for our business partners, we have been striving to build an open and integrated ecosystem to meet the diversified needs of both suppliers and third-party merchants. In JD's ecosystem, it is very common for brands to run both 1P and 3P businesses at the same time as different models bring them different values. We are glad to see that 1P and supply chain have become mainstream topics in this industry in recent years with more companies working on each -- working on such initiatives. We are willing to share our experience to contribute to the industry's healthy development. However, we have to point out that we don't think 1P nearly means product procurement or even advancing payments for securing inventories. We believe 1P is about building a comprehensive system of supply chain management. The strength of the 1P model is to provide high-quality shopping experience to users and reoffering efficiency along the supply chain. So that business partners can enjoy better capital and inventory turnover.

對於我們的業務夥伴，我們一直致力於建立一個開放且一體化的生態系統，以滿足供應商和第三方商家的多元化需求。在京東生態系中，品牌同時經營1P和3P業務非常普遍，因為不同的模式能帶來不同的價值。我們很高興看到，近年來1P和供應鏈已成為業界主流話題，越來越多的企業投入其中，積極進行相關措施。我們願意分享經驗，為產業的健康發展貢獻力量。然而，我們必須指出，我們認為1P並非僅僅意味著產品採購或預付款以確保庫存。我們認為1P的核心在於建構一個完善的供應鏈管理系統。 1P模式的優點在於為使用者提供優質的購物體驗，並提升供應鏈的再利用效率，使業務夥伴能夠獲得更佳的資金和庫存週轉率。

In the time of uncertainty, JD has helped our business partners to cope with external changes with better operating efficiency and lower costs, sharing stability and uncertainty with them. As a result, JD has gained increasing recognition from all kinds of business partners. In the fourth quarter, both the type and number of business partners in our ecosystem continued to expand. In particular, the number of 1P suppliers achieved double-digit percentage growth, while further expanding (inaudible). The growth of third-party merchants also accelerated to the highest level in the past 3 years as we added more new merchants in Q4 than we did in the previous 3 quarters combined.

在充滿不確定性的時期，京東幫助合作夥伴以更高的營運效率和更低的成本應對外部變化，與他們共同承擔風險，共克時艱。因此，京東獲得了各類合作夥伴的認可。第四季度，京東生態系的合作夥伴類型和數量均持續成長。其中，1P供應商的數量實現了兩位數的百分比成長，並進一步擴大（聽不清楚）。第三方商家的成長速度也達到了近三年來的最高水平，第四季度新增商家數量超過了前三個季度的總和。

We believe that a number of our business partners will continue to grow healthily in the future. Meanwhile, we have been constantly strengthening our win-win cooperation with our business partners, with further shortened inventory turnover days to the lowest level in the industry, despite the number of SKUs that we manage is now close to RMB 10 million. Our accounts payable days also shortened, which helped improve business partners' capital turnover efficiency. As such, JD has helped millions of online and offline suppliers and SMEs to gain their fair growth opportunities and a reasonable profit in support of the real economy. Going forward, we will cooperate with more partners, generate mutual benefits and facilitate each other's growth.

我們相信，未來眾多合作夥伴將繼續健康發展。同時，我們不斷加強與合作夥伴的互利共贏合作，儘管管理的SKU數量已接近1000萬元人民幣，但我們仍將庫存週轉天數進一步縮短至行業最低水平。應付帳款週轉天數也縮短，幫助合作夥伴提升了資金周轉效率。京東已協助數百萬線上線下供應商和中小企業獲得公平的發展機會和合理利潤，為實體經濟的發展做出了貢獻。展望未來，我們將持續與更多合作夥伴攜手共進，實現互利共贏，共同成長。

A healthy growth momentum of our [foreign] retail businesses, our further enhanced supply chain capabilities and operational efficiency have put us in a strong footing to firmly execute our long-term strategy. Now let's take a closer look at the recent development of JD Logistics and new businesses.

我們（海外）零售業務的穩健成長動能、供應鏈能力的進一步提升以及營運效率的提高，為我們穩步推進長期策略奠定了堅實的基礎。接下來，讓我們更深入了解京東物流及新業務的最新發展。

JDL achieved a series of milestones in 2021. Firstly, its total revenue grew rapidly and exceeded the RMB 100 billion mark for the full year. Second, the long-term investment in JDL made in establishing integrated supply chain logistics services started to bear fruit as it served to more external customers and expanded its total addressable market. This also led to better revenue structure for JDL as revenues from external customers grew at a faster pace and accounted for over 50% of total revenue for the first time on a full year basis. Our business partners can better focus on their core operations and achieve high-quality growth as JDL's integrated supply chain logistics services helped to drive their overall efficiency and competitiveness.

2021年，JDL取得了一系列里程碑式的成就。首先，公司全年總收入快速成長，突破1,000億元大關。其次，JDL在建構一體化供應鏈物流服務的長期投資開始見效，服務了更多外部客戶，拓展了目標市場。這也優化了JDL的收入結構，外部客戶收入成長加快，首次在全年佔超過50%。 JDL一體化供應鏈物流服務協助合作夥伴提升效率與競爭力，使其能更專注於核心業務，並實現高品質成長。

We are proud to see that revenues from customers using JDL integrated supply chain logistics services contributed over 70% of its total revenue for the full year. Moreover, driven by the expanding economies of scale and operational optimization, JDL achieved sequential margin improvement in 2021. In the future, JDL will continue to invest and upgrade its infrastructure capabilities and resources to provide larger scale and more diversified supply chain-based products and services to our business partners in China and abroad and further strengthening its industry-leading position as well as expand the market share.

我們很高興地看到，來自使用JDL一體化供應鏈物流服務的客戶的收入佔全年總收入的70%以上。此外，由於規模經濟效益的提升和營運優化，JDL在2021年實現了利潤率的環比增長。未來，JDL將繼續增加對基礎設施和資源的投入和升級，為國內外合作夥伴提供更大規模、更多元化的供應鏈產品和服務，進一步鞏固行業領先地位，並擴大市場份額。

On the new business, Jingxi, which focuses on lower-tier markets undertook a series of iterations and optimization measures in 2021. By improving supply chain and fulfillment efficiency in lower tier markets, particularly for fresh produce and general merchandise as well as lowering merchandise circulation cost, Jingxi provided its better services to customers and help the local merchants generate more revenue with higher efficiency and cost of savings. Since the second half of 2021, Jingxi has led the industry in proactively focusing on selected markets as well as our efficiency and user experience to drive local supply chain capabilities and refinement of the UE model.

在新業務方面，專注於低線市場的京喜在2021年進行了一系列迭代和優化措施。透過提升低線市場（尤其是生鮮和日用百貨）的供應鏈和履約效率，並降低商品流通成本，京喜為客戶提供更優質的服務，並幫助當地商家以更高的效率和更低的成本創造更多收益。自2021年下半年以來，京喜引領產業，積極聚焦特定市場，並透過提升效率和使用者體驗來增強本地供應鏈能力，並完善使用者體驗模式。

As a result, we are seeing better supply chain efficiency and cost structure in our selected markets. In particular, fulfillment cost per order continued to come down, while net promoter scores and merchant satisfaction levels further improved. We believe this is a sector that requires a long-term commitment over the next 5 to 10 years in order to build up supply chain infrastructure and gain consumer mind share. The inflated scale expansion driven by short-term marketing expenses are not sustainable. The recent industry trend also validates our view.

因此，在我們選定的市場中，供應鏈效率和成本結構均有所改善。尤其值得一提的是，每筆訂單的履行成本持續下降，而淨推薦值和商家滿意度也進一步提升。我們認為，為了建立供應鏈基礎設施並贏得消費者的認可，該產業需要在未來5到10年內長期投入。以短期行銷支出為驅動的規模擴張是不可持續的。近期的產業趨勢也印證了我們的觀點。

JD achieved a healthy and sustainable growth across all business lines in 2021. We also opened up our supply chain and service capabilities to provide reliable and steady support to our business partners and consumers amid a challenging macro environment. JD has and will continue to develop new growth drivers for the industry and create greater value for the society. 2022 is the third year since the pandemic broke out. We are still in the midst of many changes and uncertainties and the competitive landscape in China is ever evolving and sometimes can be enhanced. Companies must grasp the core business logic and consistently deliver on their long-term strategy.

2021年，京東所有業務線均實現了健康可持續成長。在充滿挑戰的宏觀環境下，我們也開放了供應鏈和服務能力，為合作夥伴和消費者提供可靠且穩定的支援。京東過去和未來都會持續為產業開發新的成長動力，為社會創造更大價值。 2022年是新冠疫情爆發以來的第三年。我們仍身處許多變化和不確定性之中，中國的競爭格局瞬息萬變，有時甚至會加劇競爭。企業必須掌握核心業務邏輯，並持續推動長期策略的實施。

In 2022 -- and also 2022 is the 19th year since JD's inception. Throughout our history, we have never [got] long and short-term and local gains and losses. Our core business logic is clear. Our business model and strategic positioning have always revolved around consumers and business partners. The resilience of our business model has been proven many times in the past. We believe we have a highly differentiated core competence that will lead us to a healthier and more sustainable growth trajectory in the long run. The results we achieved in 2021 have also set a strong foundation for our growth and market share expansion in 2022. We truly appreciate all your trust and support along the way. This concludes my remarks. Now I'll give the floor to Sandy.

2022年－同時也是京東成立的19週年。縱觀京東的發展歷程，我們從未追求過短期或局部的得失。我們的核心商業邏輯清晰明確，我們的商業模式和策略定位始終圍繞著消費者和合作夥伴。我們商業模式的韌性已在過往的實踐中多次得到驗證。我們相信，我們擁有高度差異化的核心競爭力，這將引領我們走向更健康、可持續的長期成長。 2021年所取得的業績也為2022年的成長和市佔率的擴大奠定了堅實的基礎。我們衷心感謝大家一路以來的信任與支持。我的發言到此結束，接下來請Sandy發言。

Thank you, Lei. Hello, everyone. We are pleased to finish 2021 with another strong set of results in the fourth quarter. Well, 2021 brought many uncertainties in the macro environment, supply chain and the consumption industry. We executed and delivered on our strategic priorities, continued to gain market share with a robust top line growth and achieved a solid bottom line. The results see volumes across the strength of our supply chain based business model in creating value for both our users and business partners, and driving long-term sustainable growth of our business in 2022 and beyond.

謝謝雷。大家好。我們很高興在2021年第四季再次取得強勁的業績，為這一年畫下圓滿的句點。 2021年，宏觀環境、供應鏈和消費產業都充滿了許多不確定性。我們執行並實現了策略重點，憑藉強勁的營收成長持續擴大市場份額，並取得了穩健的利潤。業績體現了我們以供應鏈為基礎的商業模式的優勢，該模式為我們的用戶和業務合作夥伴創造了價值，並推動了我們在2022年及以後的長期可持續增長。

Our net revenues achieved 23% year-on-year growth to RMB 276 billion in the fourth quarter and 28% year-on-year growth to RMB 952 billion for the full year of 2021. We continue to demonstrate notable resilience in our business and presently outperformed industry growth despite the relatively soft consumption trend in recent quarters. Our solid top line growth comes alongside our proactive strategic priority, improving user engagement and lifetime values. Our annual active user base reached a total of 570 million by the end of 2021. I think nearly 100 million users from a year ago. In particular, our quarterly average DAU grew over 25% year-on-year and hit an all-time high in Q4. This reflects the results of our strategic focus on improving user mind share and engagement. We are also gaining more wallet share from our expanding user base.

2021年第四季，我們的淨收入年增23%至人民幣2,760億元；全年淨收入年增28%至人民幣9,520億元。儘管近幾季消費趨勢相對疲軟，但我們依然展現出卓越的業務韌性，並超越了產業整體成長。我們穩健的營收成長得益於我們積極推動的策略重點－提升用戶參與度和終身價值。截至2021年底，我們的年度活躍用戶總數達到5.7億，較上年同期成長近1億。尤其值得一提的是，我們的季度平均每日活躍用戶數較去年同期成長超過25%，並在第四季創下歷史新高。這反映了我們專注於提升使用者認知度和參與度的策略性舉措所取得的成效。隨著用戶基數的不斷擴大，我們的用戶錢包份額也在不斷增長。

As we increasingly become the go-to destination for consumers' regular shopping, LTM GMV per user has been steadily changing up over time and increased year-over-year in every quarter in 2021, even as we continued to expand our total user base. Furthermore, our JD Plus numbers surpassed 25 million in the quarter and average member spending increased up by double-digit percentage points from a year ago. By end of Q4, the average annual spending of Plus members was 10x as much as that of non-Plus numbers. The encouraging progress in high-quality user growth and improving user engagement validate our relentless focus on superior customer experience over the years. Our revenue base saw further diversification. In Q4, our net product revenues grew at a solid 22% year-on-year, while net service revenues grew faster at 28% year-on-year against a high comparable base.

隨著我們日益成為消費者日常購物的首選平台，即使用戶總數持續成長，2021年每季的LTM GMV（每位用戶平均交易金額）也穩步提升，並實現了同比增長。此外，京東Plus會員數量在本季突破2,500萬，會員平均消費額較去年同期實現了兩位數的百分比成長。截至第四季末，Plus會員的年均消費額已達到非Plus會員的10倍。高品質使用者成長與使用者參與度提升的顯著成效，印證了我們多年來對卓越客戶體驗的不懈追求。我們的收入來源也進一步多元。第四季度，淨產品收入年增22%，而淨服務收入在高基數下較去年同期成長28%，成長速度更快。

Over a 2-year period, contribution from net service revenues increased from 12% to 15% of total revenue. Our marketplace and marketing revenues exceeded the RMB 20 billion mark in a single quarter for the first time in our history in Q4, growing at 27% year-on-year. This is a testament to our ongoing improvement in our platform ecosystem. Logistics and other services revenues grew by 30% year-on-year in Q4, maintaining hyper growth momentum.

兩年內，淨服務收入佔總收入的比例從12%成長至15%。第四季度，我們的市場及行銷收入首次突破200億元人民幣大關，年增27%，這充分體現了我們平台生態系統的持續改善。第四季度，物流及其他服務收入年增30%，維持了強勁的成長動能。

Now let's turn to our segment performance. First, in Q4, our core business, JD Retail delivered both solid top line growth and healthy margin improvement. JD Retail's revenues reached RMB 250 billion in Q4, growing at 21% year-on-year in the quarter. For the full year of 2021, JD Retail revenues grew 25% year-on-year to RMB 866 billion. Category-wise, we continue to see resilience in electronics and home appliance category with 22% revenue growth year-on-year in Q4. The power of JD's supply chain capability has been on full display against the global supply chain disruption. Our general merchandise revenues grew 23% year-on-year in Q4, outperforming the market amidst a challenging consumption environment. Order volume in our supermarket category has been consistently growing at around 30% 2-year CAGR in every quarter in 2021.

現在我們來看看各業務板塊的表現。首先，在第四季度，我們的核心業務京東零售實現了穩健的營收成長和良好的利潤率提升。京東零售第四季營收達2,500億元人民幣，較去年同期成長21%。 2021年全年，京東零售營收年增25%至8,660億元。從品類來看，電子產品和家電品類持續保持韌性，第四季營收年增22%。面對全球供應鏈中斷的挑戰，京東強大的供應鏈能力得到了充分展現。在充滿挑戰的消費環境下，我們的日用百貨營收在第四季年增23%，跑贏大盤。 2021年，我們超市品類的訂單量持續成長，兩年複合年增長率約30%。

The strong growth of our supermarket category has helped drive more frequent user engagement and continued the greatest number of new users. Our 3P ecosystem also saw encouraging progress as more merchants appreciate the increased value add delivered by our ecosystem. We are pleased to see higher engagement and spending from our existing merchants. It's worth mentioning that we added more merchants to our marketplace business in Q4 than we did in the first 3 quarters combined. Our omnichannel business has been growing rapidly as our offline stores and business partners including some -- including home appliance franchise stores, (inaudible) and 7Fresh as well as our O2O initiatives achieved close to 80% year-on-year GMV growth in the full year of 2021. Exciting progress in our omnichannel business further demonstrates JD's position as a new type of real economy-based enterprise. It also bodes well for our growth in the coming years.

超市品類的強勁成長帶動了用戶參與度的提升，並持續保持新用戶數量最多的記錄。隨著越來越多的商家認可我們生態系統帶來的更高附加價值，我們的第三方生態系統也取得了令人鼓舞的進展。我們很高興看到現有商家的參與度和消費額均有所提升。值得一提的是，第四季我們平台新增的商家數量超過了前三個季度的總和。我們的全通路業務發展迅速，包括家電加盟店、（聽不清楚）和7Fresh在內的線下門市及合作夥伴，以及我們的線上線下融合（O2O）業務，在2021年全年實現了近80%的同比增長。全通路業務的蓬勃發展進一步彰顯了京東作為新型實體經濟型企業的地位，也預示著我們未來幾年的良好發展前景。

Moving on to JD Retail's profitability. Operating margins increased to 2.1% this quarter, up from 1.9% a year ago, thanks to the expansion (inaudible) gross margin. On a full year basis, JD Retail's operating margins reached 3.1%, a 10 basis points improvement from a year ago and 32 bps improvement from 2 years ago. Our core business is well on track to realize sustainable margin improvement while optimizing for a healthy category mix and exploring new business strategies to expand our time in the long run.

接下來談談京東零售的獲利能力。本季營業利益率提升至2.1%，高於去年同期的1.9%，主要得益於毛利率的提升。全年來看，京東零售的營業利益率達3.1%，較去年同期提升10個基點，較兩年前提升32個基點。我們的核心業務正穩步推進，並有望實現利潤率的可持續提升，同時我們也在優化品類組合，探索新的業務策略，以期在長期發展中佔據更有利的地位。

JD Logistics or JDL achieved remarkable milestones in 2021 and concluded the year with strong top line growth and sequential margin improvement. Its Q4 revenues grew by 28% year-on-year [RMB 230 billion]. Full year basis, JDL's revenues grew 43% year-on-year to RMB 105 billion. This was mainly driven by the growth in the number of external integrated supply chain logistics customers as well as their increasing ARPU. Contribution of external revenues reached a historic high and accounted for 57% of JDL's total revenues for the full year of 2021. We are proud to see JDL deliver margin improvement while quickly ramping up its external business. JDL achieved positive operating margin in both Q4 and the second half of 2021. These results also demonstrate JDL's ability to both infrastructure utilization and improve operating efficiency while maintaining robust top line growth. Revenues of our new business segment accelerated its growth pace sequentially to 45% year-on-year to reach RMB 8.2 billion in Q4, and grew 48% to RMB 26 billion full year basis.

京東物流（JDL）在2021年取得了顯著的里程碑式成就，並以強勁的營收成長和環比利潤率提升為這一年畫上了圓滿的句號。其第四季營收年增28%（人民幣2,300億元）。全年來看，京東物流營收年增43%至人民幣1,050億元。這主要得益於外部一體化供應鏈物流客戶數量的成長以及其平均每用戶收入（ARPU）的提升。外部業務營收貢獻率創歷史新高，佔京東物流2021年全年總營收的57%。我們欣喜地看到，京東物流在快速拓展外部業務的同時，也實現了利潤率的提升。京東物流在2021年第四季和下半年均實現了正的營業利潤率。這些業績也充分展現了京東物流在維持強勁營收成長的同時，有效提升基礎設施利用率和營運效率的能力。我們新業務類股的營收季增加快，第四季年增 45%，達到 82 億元人民幣；全年年增 48%，達到 260 億元人民幣。

Revenues of our Jingxi business grew over [40%] quarter-on-quarter in Q4, mainly led by the Jingxi Pinpin business, which regained growth momentum after we proactively (inaudible) resources in selected markets in Q3 last year. We are committed to better allocating resources to improve our local supply chain capabilities, to empower a broader spectrum of our business partners, many of which are local SMEs and to serve new and existing customers. We will continuously drive innovation and improvement in the supply chain infrastructure while firmly committing to better UE for our new business.

京西業務第四季營收季增超過40%，主要得益於京西品品業務的強勁成長。去年第三季度，我們在部分市場積極投入資源後，品品業務重拾成長動能。我們致力於優化資源配置，提升本地供應鏈能力，賦能更廣泛的商業夥伴（其中許多是本地中小企業），並更好地服務新舊客戶。我們將持續推動供應鏈基礎設施的創新與改進，同時堅定致力於提升新業務的使用者體驗。

Moving to the consolidated bottom line. Our Q4 non-GAAP net income attributable to ordinary shareholders was RMB 3.6 billion with non-GAAP net margin of 1.3%, up from 1.1% in the same period last year. Our full year non-GAAP net income attributable to ordinary shareholders was RMB 17.2 billion, up from RMB 16.8 billion a year ago. While we continued to deliver solid operational and financial results, we also increased support to our business partners in a time of uncertainty. We have consistently kept our inventory turnover well below 35 days, despite that the number of SKUs under our management continued to expand. We continued to share our efficiency gains with our business partners as we shortened the LTM account payable turnover days from 47 days a year ago to 45 days at the end of 2021.

接下來來看合併後的淨利。我們第四季歸屬於普通股股東的非GAAP淨利為人民幣36億元，非GAAP淨利率為1.3%，高於去年同期的1.1%。全年歸屬於普通股股東的非GAAP淨利為人民幣172億元，高於去年的168億元人民幣。在持續取得穩健的營運和財務表現的同時，我們也加大了對業務夥伴的支持力度，以因應當前充滿不確定性的時期。儘管我們管理的SKU數量持續成長，但我們始終將庫存週轉天數保持在遠低於35天的水平。我們持續與業務夥伴分享效率提升帶來的收益，將過去12個月的應付帳款週轉天數從去年同期的47天縮短至2021年底的45天。

Our business partners highly appreciate the increased supply chain efficiency and faster turnover of cash and goods from their collaboration with us. As we are getting stronger, we are creating greater value for everyone along the supply chain. Our free cash flow for trailing 12 months this quarter remained healthy at RMB 26.2 billion. At the end of Q4, cash, cash equivalents, restricted cash and short-term investments added up to a sum of RMB 191 billion. In summary, JD had a year of increased uncertainties and macro headwinds with remarkably resilient performance. This is a cumulative result of our 19 years of [unwavering] efforts in building our core competence and committing to our right way to success business philosophy. I truly believe we have set a solid foundation for long-term sustainable growth.

我們的業務夥伴高度讚賞與我們合作後供應鏈效率的提升以及現金和貨物週轉速度的加快。隨著我們自身實力的增強，我們正在為供應鏈上的每位參與者創造更大的價值。本季，我們過去12個月的自由現金流保持健康，達到人民幣262億元。截至第四季末，現金、現金等價物、受限現金及短期投資總計人民幣1,910億元。總而言之，京東在過去一年中經歷了許多不確定因素和宏觀不利因素，但依然展現了卓越的韌性。這得益於我們19年來在建立核心競爭力以及堅持「正確的成功之道」經營理念方面所做出的不懈努力。我堅信，我們為長期永續發展奠定了堅實的基礎。

Looking ahead to 2022, while we remain mindful about the near-term macro volatility, we aim to continue to gain market share with a set of proactive sustainable and high-quality growth strategies and at the same time, remain on track of our long-term margin improvement trajectory. I would also like to take this chance to welcome our new shareholders, many of whom are [old friends] to join the journey with us soon. This concludes my prepared remarks. We can now move to the Q&A. Thank you.

展望2022年，儘管我們仍會關注短期宏觀經濟的波動，但我們的目標是透過一系列積極主動、可持續且高品質的成長策略，繼續擴大市場份額，同時維持長期利潤率提升的既定目標。我也想藉此機會歡迎各位新股東，其中許多人都是我們的老朋友，他們即將加入我們，與我們攜手共進。我的發言到此結束。現在進入問答環節。謝謝。

(Operator Instructions) And our first question comes from Ronald Keung from Goldman Sachs.

（操作說明）我們的第一個問題來自高盛的 Ronald Keung。

So we've seen the recent macro weakness, Xu Lei, could you talk about that and COVID disruptions, higher oil price. Just wondering what management, could you share just how do you see JD Retail growth this year? Whether given some moderation in general merchandise revenue that we've seen in the fourth quarter, what are the strategies for JD Supermarket and your marketplace. And with these in mind, any potential implications for margins this year?

徐磊，我們最近都看到了宏觀經濟疲軟的跡象，您能否談談這方面的影響，以及新冠疫情帶來的衝擊和油價上漲？我想了解管理階層對京東零售今年成長的展望。考慮到第四季一般商品收入有所放緩，京東超市和京東電商平台的策略是什麼？這些因素會對今年的利潤率產生哪些潛在影響？

[Interpreted] And this is Xu Lei to answer a question on the macro environment. We do face a slowdown macro environment with a lot of uncertainties, such as the macroeconomic conditions and weak consumption demand and the rising price of raw materials on the supply chain and fierce industry competition and COVID disruption, and all this add has posed pressures on China's retail industries. And in face of all these uncertainties, we continue to stick to our business logic and our strategies, and this will be carried out in the following 3 ways.

【翻譯】這裡是徐磊，請他回答關於宏觀環境的問題。我們確實面臨著宏觀經濟放緩、充滿諸多不確定因素的環境，例如宏觀經濟形勢、消費需求疲軟、供應鏈原材料價格上漲、行業競爭激烈以及新冠疫情帶來的衝擊等等，所有這些都給中國零售業帶來了壓力。面對這些不確定因素，我們將繼續堅持我們的經營理念和策略，具體體現在以下三個方面。

And first, JD's development has always been centered on creating unique value for our customers' matters on the product, services and user experience, and these have helped us to enhance the mind share among our customers and deliver the sustained development -- the sustained growth.

首先，京東的發展始終以在產品、服務和用戶體驗方面為客戶創造獨特價值為中心，這幫助我們提升了客戶對我們的認知度，並實現了持續發展——持續成長。

And second, we pay high attention of our business partners, and in the time of uncertainty, we are making full use of our capacities on supply chain to support our business brands and the merchants to help them on the financial and the good inventory turnover. So by all the support, they're able to deliver predictable and stable growth under all these external changes.

其次，我們高度重視業務夥伴，在當前充滿不確定性的時期，我們正充分利用供應鏈資源，支持我們的品牌和商家，幫助他們實現財務穩定和良好的庫存週轉。正是憑藉這些支持，他們才能在各種外部變化中保持可預測且穩定的成長。

And thirdly, in face of those COVID challenges by leveraging JD's fundamental capabilities on supply chains and warehousing, et cetera, we can maintain a stable sales momentum in those COVID-hit areas. At the same time, we are supporting the government and the people to provide the leading necessities to the people in need and to fulfill our social responsibilities. And all this effort has been largely recognized by the people and by the government and further enhance our brand or our JD's reputation in the society.

第三，面對新冠疫情帶來的挑戰，憑藉京東在供應鏈、倉儲等方面的基礎優勢，我們得以在受疫情影響的地區保持穩定的銷售動能。同時，我們也積極支持政府和人民，為有需要的人提供必需品，履行我們的社會責任。所有這些努力都得到了民眾和政府的廣泛認可，進一步提升了京東品牌在社會中的聲譽。

So we are confident in our resilient business model and our core capacity from supply chains. And all this has proven to be viable in the past, and it will also help us to outperform the market.

因此，我們對自身穩健的商業模式和核心供應鏈能力充滿信心。過去的經驗已經證明這些模式行之有效，未來也將繼續幫助我們超越市場平均。

And for the outlook in the future, we will continue an optimistic attitude and to achieve sustainable and healthy growth on each different categories and different -- each business and also gain a greater market share.

展望未來，我們將繼續保持樂觀的態度，力爭在各個不同的類別和業務領域實現可持續的健康成長，並獲得更大的市場份額。

And also, I want to share my feelings and the facts as we paid a lot of visits to our business partners by the end of last year and early this year. They've all expressed that they will pay great attention and attach great importance to the collaboration with JD and have a high expectation on the collaboration with JD in the year 2022.

此外，我也想分享我的感受和事實，因為在去年底和今年年初，我們走訪了許多業務夥伴。他們都表示會高度重視與京東的合作，並對2022年與京東的合作寄予厚望。

And a few words on the supermarket categories, it has -- a lot of changes are taking place. And our brand partners, they are feeling the pressures from the rising price from the upstream and also a fast change in consumption demand. And in the past few years, the traditional sales channel has been affected by various factors, and all this has brought a lot of uncertainty for the manufacturer's operation.

關於超市品類，我想簡單說幾句。超市品類正在發生很多變化。我們的品牌夥伴正感受到來自上游價格上漲和消費需求快速變化所帶來的壓力。過去幾年，傳統銷售管道受到各種因素的影響，所有這些都為製造商的營運帶來了許多不確定性。

So we're going to address these categories in 4 aspects. First, to the consumers, we will focus on bringing new products and new categories to the new consumers and bring them quality products and build up their mind share as JD Super is their go-to place to buy supermarket category products.

因此，我們將從四個面向著手解決這些問題。首先，針對消費者，我們將致力於為新消費者帶來新產品和新品類，並為他們提供優質產品，提升京東超市在他們心中的品牌認知度，使其成為他們購買超市品類產品的首選之地。

And on the cooperation with our brand partners, we will strengthen synergies with them on supply chain, on marketing and warehousing, et cetera to deepen our cooperation and synergies on all aspects.

在與品牌合作夥伴的合作方面，我們將加強在供應鏈、行銷和倉儲等方面的協同效應，以深化我們在各個方面的合作與協同效應。

And also JD Super is very important categories in our omnichannel strategies. It has the highest penetration rate across all the categories. And in the future, we will continue to collaborate with more and more business partners to develop omnichannel strategies in diversified shopping scenarios.

此外，京東超級也是我們全通路策略中非常重要的品類，其滲透率在所有品類中最高。未來，我們將繼續與更多商業夥伴合作，在多元化的購物場景中製定全通路策略。

And for the supermarket categories, we continue to improve its supply chain and made a lot of innovations in this aspect such as our warehouse stores and other methods and other new innovations. And for this category, its profitability continue to improve, and we are close to the breakeven point.

至於超市品類，我們持續優化供應鏈，並在此方面進行了許多創新，例如倉儲式門市和其他營運模式。該品類的獲利能力持續提升，我們已接近損益平衡點。

And also our marketplace in the 3P ecosystem, we have done the following 4 efforts. And first is that we continue to do the refined management on our third-party merchants. And third -- and second, we make efforts to help them to lower down their operating costs and alleviate their burden to run on our platform. And thirdly, we provide those [two teams] to help them to do better operations on our platform. And at the same time, we are also exploring more and more ways to support those small and medium-sized companies and brands to thrive on our marketplace ecosystem.

此外，我們在第三方生態系統中的市場平台也採取了以下四項措施。首先，我們持續優化對第三方商家的管理。其次，我們努力幫助他們降低營運成本，減輕他們在我們平台上的營運負擔。第三，我們組建了兩個團隊，幫助他們更好地在我們平台上開展業務。同時，我們也不斷探索更多途徑，支持中小企業和品牌在我們的市場生態系統中蓬勃發展。

And as mentioned that in this quarter, for the 3P merchants, their overall number is even more than the Q1 to Q3 combined and they have demonstrated very high engagement during the Singles Day Grand Promotion. Thank you.

如同先前所提到的，本季度第三方商家的總數甚至超過了第一季至第三季的總和，並且在雙十一促銷活動期間表現出了極高的參與度。謝謝。

So this is Sandy. I can add some color on outlook for JD Retail. So first, in terms of the macro-environment and consumption, so far, we see that the overall consumption in Q1 or even first half year 2022 to be relatively conservative. And then secondly, category-wise, we expect that the supermarket home products, health care products, corporate business, including [MRO] will generate higher growth compared to our overall average. And then third, omnichannel business, as Lei mentioned, we will continue to be one of our strategic focuses and deliver hyper growth in 2022. And fourth, we also expect that 3P to grow faster than 1P as we have been optimizing our 3P ecosystems and tools for merchants as Lei just mentioned. So we expect JD Retail continue to deliver quality growth in terms of user base, user engagement and stickiness, which is a long-term growth driver for our retail business. Overall, although the retail consumption is currently under pressure to a certain extent, we are confident that we will deliver higher growth than the industry average.

我是Sandy，我來補充京東零售的展望。首先，從宏觀環境和消費角度來看，目前我們預期2022年第一季乃至上半年整體消費將保持相對保守。其次，從品類來看，我們預期超市家居用品、保健品、企業業務（包括MRO業務）的成長速度將高於整體平均水準。第三，正如Lei所提到的，全通路業務將繼續是我們的策略重點之一，並在2022年實現高速成長。第四，如Lei剛才提到的，我們一直在優化第三方生態系統和商家工具，預計第三方業務的成長速度將超過一手業務。因此，我們預計京東零售將在用戶基數、用戶參與度和用戶黏性方面繼續保持高品質成長，這將是我們零售業務長期成長的驅動力。總而言之，儘管目前零售消費在一定程度上面臨壓力，但我們有信心實現高於行業平均的成長。

Our next question comes from Eddie Leung from Bank of America.

下一個問題來自美國銀行的梁先生。

Just a question on competition. Could you guys share your thoughts with us on the growing market share of the e-commerce broadcasting platforms. How do you think about the impact on your business? And how are you going to deal with their growing market share?

關於競爭方面，我想問一個問題。你們能否談談對電商直播平台市佔率不斷增長的看法？你們認為這會對你們的業務產生什麼影響？你們又將如何應對他們不斷成長的市場佔有率？

[Interpreted] About the e-commerce. The e-commerce by live stream and short video platform, they are still undergoing a fast development period, which is in line with our previous predictions. For these business models, it can attract and satisfy some shopping demand of some people based on their interest and they're still developing fast, thanks to the traffic dividend. And given their business models and people's recognition of this platform, we believe these live streaming e-commerce will generate a long-term impact to those platform e-commerce players.

【解讀】關於電商。直播電商和短視訊電商目前仍處於快速發展期，這與我們先前的預測相符。這類商業模式能夠根據用戶的興趣吸引並滿足部分用戶的購物需求，並且憑藉流量紅利，發展勢頭依然強勁。鑑於其商業模式以及用戶對這類平台的認可度，我們相信直播電商將對傳統電商平台產生長遠影響。

While we see some challenges, at the same time, we do see there's opportunities and the same to collaborate with these traffic platforms.

雖然我們看到了一些挑戰，但同時，我們也看到了機遇，以及與這些流量平台合作的機會。

Even consumers' shopping demands are diversified. For JD.com, we see most people come to our platform for planned shopping or shopping for their families. So we are less affected by their emergence.

消費者的購物需求也日益多元化。京東平台的用戶大多是出於計劃性購物或為家人購物的目的而來，因此受新興市場的影響較小。

And second, we see that branded merchants, while they enter these traffic fields to do operations, in their operating efficiencies, they're encountering a lot of -- quite a lot of difficulties, and they also need some help.

其次，我們看到品牌商家在進入這些流量領域開展業務時，在營運效率方面遇到了許多困難，他們也需要一些幫助。

And thirdly, we believe that for all kinds of new business models, after they pass their dividend period, they all need to come down to the work and serve their customers and better provide a win-win collaboration with their business partners.

第三，我們認為，對於各種新的商業模式而言，在度過分紅期後，都需要回歸本源，服務客戶，更好地與商業夥伴實現雙贏合作。

So compared with platform e-commerce players, JD, we have -- for JD.com, we have complete supply chain infrastructure and the fulfillment capabilities, customer services and the skills for the platform governance and so on. All this can help us to reduce the supply chain circulation cost, which process at a very unique and differentiated competitiveness.

因此，與平台型電商企業相比，京東擁有——就京東而言——完整的供應鏈基礎設施和履約能力、客戶服務以及平台治理技能等等。所有這些都有助於我們降低供應鏈流通成本，從而形成獨特且差異化的競爭力。

So we continue to have an open attitude towards all these emerging new business models and by building our capacities on omnichannel and the supply chains, we are exploring diversified touch points to reach our customers in diversified shopping channels and user cases. And we will also continue to collaborate with these content platforms and support merchant partners to operate on this traffic field.

因此，我們始終對所有這些新興商業模式持開放態度，並透過提升全通路和供應鏈能力，探索多元化的觸點，在不同的購物管道和用戶場景中觸達我們的客戶。同時，我們也將繼續與這些內容平台合作，並支持商家合作夥伴在這個流量領域開展業務。

And I also want to add that besides JD Retail, for our JD Logistics, they also have collaborations with both live stream and short video platforms to provide both way transportation and logistics support, which also represents huge opportunities for JD Logistics.

此外，我還想補充一點，除了京東零售之外，京東物流還與直播和短視頻平台合作，提供雙向運輸和物流支持，這對京東物流來說也是巨大的機會。

Our next question comes from Thomas Chong from Jefferies.

下一個問題來自傑富瑞集團的托馬斯鐘。

(foreign language).

（外語）。

[Interpreted] And let me answer your question about the user growth in this quarter. And on the overall industries, we have seen a weak growth, no matter if general on the online side. But for JD.com, we continue to build our business surrounding our users' experience, and we've achieved healthy growth and hit our yearly target.

【翻譯】關於本季用戶成長的問題，我來回答。整體而言，無論是線上或其他產業，成長都比較疲軟。但京東方面，我們繼續圍繞用戶體驗打造業務，實現了穩健成長，並達成了年度目標。

So here, I just want to emphasize again that our business principle is to deliver sustainable and quality growth. So in terms of the new users' acquisition in Q4, we have seen their OP has been improved by 11%. And for our existing customers, their shopping frequencies have been improved by 3% and their OP has increased by 4.5%. And all this has demonstrated again our principles for sustainability and quality growth.

在此，我想再次強調，我們的經營原則是實現可持續的高品質成長。就第四季新用戶獲取而言，他們的營業利潤提升了11%。而對於現有客戶，他們的購物頻率提升了3%，營業利潤提升了4.5%。所有這些都再次印證了我們追求永續和高品質成長的原則。

And for 2022, we will continue to focus on the users' growth quality and the refined usage management and also make dynamic policy adjustments during this process. We see our users growth feeling at still very high, and we expect a healthy users growth in the following years.

2022年，我們將繼續專注於提升用戶成長品質和優化用戶管理，並在此過程中進行動態的政策調整。我們目前用戶成長動能依然強勁，預計未來幾年用戶數將維持健康成長。

And the users growth are mainly coming from 2 aspects. First is on our categories, as we are successfully expanding our categories, this will continue to drive our users acquisition. For example, for the JD Super, supermarket categories with FMCGs continue to be the engine for the new user acquisition. And for the other category, it's consumer electronics, we have a very strong mind share among our consumers, even though we are under this supply shortage at this moment. We continue to see more and more consumers mind share is building up in this category, and we continue to gain larger wallet share in this category.

用戶成長主要來自兩個方面。首先是品類拓展，隨著品類的成功擴張，用戶獲取將持續成長。例如，京東超市的快消品類一直是新用戶成長的主要動力。其次是消費性電子產品品類，儘管目前面臨供應短缺，但我們在該品類中仍擁有很高的品牌認知。我們看到越來越多的消費者對該品類的認知度不斷提升，而且我們在該品類中的消費份額也在持續增長。

And second part of the users' growth opportunity comes from our marketplace ecosystem and our omnichannel business and this will bring us diversified channels and diversified approaches to reach new consumers -- new users. And the ecosystem we provide with our merchants and brands as well as our offline ecosystem will also contribute to the growth of new users.

用戶成長的第二大機會來自我們的市場生態系統和全通路業務，將為我們帶來多元化的通路和方法來觸及新消費者——新用戶。我們與商家和品牌共同建構的生態系統以及線下生態系統也將有助於新用戶的成長。

Okay. Let me take the question on OpEx and margins. On the bottom line of JD Retail, we need to take into consideration of a few changes in our business model and category mix shift. First, the supermarket category will continue to outgrow our overall retail business while its operating margin is on the track of steady improvement, but still lower than our average margin level. And second, 3P business will grow faster than 1P. That somehow mitigates the impact from the category mix shift. And third, omnichannel grows faster than online retail as this business model is still in relatively early stage. So it is currently still in a slight loss making position, but we'll again improve their UE year-over-year. So overall, we are facing dynamic internal macro environment changes and -- which will affect our bottom line performance. The management team will adjust our investment strategy from time to time.

好的。我來回答關於營運成本和利潤率的問題。就京東零售的獲利而言，我們需要考慮業務模式和品類組合的一些變化。首先，超市品類將持續維持高於整體零售業務的成長速度，其營運利潤率雖然穩定提升，但仍低於平均水準。其次，第三方業務的成長速度將超過自營業務，這在一定程度上緩解了品類組合變化的影響。第三，全通路業務的成長速度將超過線上零售，因為這種業務模式仍處於發展初期。因此，目前全通路業務仍處於輕微虧損狀態，但我們將努力改善其單位體驗，以實現年比提升。總而言之，我們面臨著動態的內部宏觀環境變化，這將影響我們的獲利表現。管理團隊將根據實際情況調整投資策略。

And for Q1, I want to remind everyone that as a sponsorship fee for the CCTV Spring Festival Gala as well as the related promotion expenses were all reported in one single quarter. Our marketing expense ratio and operating margin will be slightly affected in the short term, but we will adjust our pace of annual marketing spending and the impact to our marketing spending for the whole year 2022 is manageable. So I want to emphasize again that for JD Retail, we pursue sustainable quality growth, and we are well on track of our long-term margin trajectory.

關於第一季度，我想提醒大家，由於中央電視台春晚的贊助費以及相關的推廣費用都計入了同一季度，短期內我們的營銷費用率和營業利潤率會受到輕微影響，但我們會調整年度營銷支出節奏，對2022年全年營銷支出的影響在可控範圍內。因此，我想再次強調，京東零售追求的是可持續的高品質成長，我們正穩步朝著長期利潤率目標邁進。

And for JD Logistics, I believe their management team also shared some color in their earnings call. For the margin performance, if you remember, we've made heavy investments in capacity in the second half of 2020 and gradually ramped up the utilization in 2021. In '22, the investments in capacity will be in line with -- largely in line with the business development. So the utilization of capacity is expected to be further optimized. At the same time, we will continue to improve the operating efficiency. So the UE for JD Logistics will also improve compared to 2021.

至於京東物流，我相信他們的管理團隊在財報電話會議上也透露了一些資訊。關於利潤率表現，大家可能還記得，我們​​在2020年下半年對產能進行了大量投資，並在2021年逐步提高了產能利用率。 2022年，產能投資將與業務發展保持同步，因此產能利用率可望進一步優化。同時，我們將持續提升營運效率。因此，京東物流的單位效率（UE）也將比2021年有所提升。

For our new business, we see that the competitors' industry [length] now become more rational. Companies compete on the core capabilities rather than burning capital. So we see that the competitive environment is more healthy. JD has been pursuing sustainable growth, and we will continue to do so. So we always balance investments in new initiatives and our profitability of our core business. So for new business initiatives, we are very -- we are always very cautious in investments to ensure the investments can generate adequate ROI for our investors and create true value for the supply chain and business partners. So we never pursue short-term KPI through subsidy. We will evaluate the market situation and make adjustments from time to time to our investments again.

對於我們的新業務，我們看到競爭對手的產業規模如今更加理性。企業之間的競爭不再是盲目燒錢，而是圍繞著核心能力。因此，我們認為競爭環境更健康。京東一直追求永續成長，並將繼續秉持這一理念。所以我們始終在新業務投資和核心業務獲利能力之間尋求平衡。對於新業務，我們始終非常謹慎地進行投資，以確保投資能為投資者帶來足夠的回報，並為供應鏈和業務夥伴創造真正的價值。因此，我們從不透過補貼來追求短期KPI。我們會持續評估市場情勢，並根據實際情況對投資進行調整。

So overall, given the uncertainties in internal macro-environment, we would put more weight on profitability this year on the management's KPI and growth. So for new business initiatives, we expect them to deliver hyper growth while control the investment to improve the UE and annual investment will not exceed what we incurred in 2021. Finally, at the group level, as a reminder, we completed the acquisition of (inaudible) and Dada in Q1, and we will start to consolidate them from March this year. While, we don't expect them to have a significant or material impact on the top line and bottom line, but due to we previously reported investments in Dada as an equity method investment, so the P&L presentation or loss pickup from Dada will be changed to different line items.

總體而言，鑑於內部宏觀環境的不確定性，今年管理層的關鍵績效指標和成長將更加側重於獲利能力。因此，對於新的業務舉措，我們預期它們將實現高速成長，同時控制投資以改善用戶體驗，且年度投資不會超過2021年的投資金額。最後，在集團層面，提醒一下，我們已於第一季完成了對（聽不清楚）和Dada的收購，並將從今年3月開始合併這些收購的財務報表。雖然我們預期這些收購不會對營收和利潤產生重大影響，但由於我們先前將對Dada的投資作為權益法投資進行報告，因此損益表中來自Dada的損益調整將另行列項。

Thank you, Thomas. Can we have the last question, please?

謝謝你，托馬斯。請問最後一個問題好嗎？

Our last question comes from James Lee from Mizuho.

最後一個問題來自瑞穗銀行的 James Lee。

Just wondering if you can share maybe some of the new learnings of JDDJ as you integrate more this omnichannel delivery on your platform. Just curious what you've seen in terms of cross-selling rate. Any key reasons people are buying omnichannel versus not buying? And how should we think about the demand in general? Is it more incremental or substitutional versus your core e-commerce offering?

我想請教一下，隨著京東和京東平台全通路配送功能的不斷整合，您能否分享一些新的經驗？我很好奇您在交叉銷售方面觀察到了哪些變化。人們選擇全通路購買而非不購買的主要原因是什麼？我們該如何看待這種需求？它對您核心電商產品而言是增量式銷售還是替代式銷售？

[Interpreted] And on the questions on the on-demand retail, as I explained -- I shared with you in the previous calls that JD are building different kinds of supply chain based on the changing demands of our consumers. And for the on-demand retail is one of the fast-growing competition field.

關於按需零售的問題，正如我之前在電話會議中提到的，京東正在根據消費者不斷變化的需求建立不同類型的供應鏈。而按需零售是競爭最激烈的領域之一。

We think that the on-demand retail does not help us to break the ceiling for our long-term retail sales growth, but it also help us to create deep connection with the real economy-based offline retail ecosystem and to support the overall retail industry's digital transformation.

我們認為，按需零售雖然無法幫助我們突破長期零售銷售成長的瓶頸，但它有助於我們與基於實體經濟的線下零售生態系統建立深厚的聯繫，並支持整個零售業的數位轉型。

On-demand retail is an important part of JD's omnichannel strategies and is an important extension for our existing shopping scenarios and itself, it's a trillion dollar market with a lot of potential. And we also want to take full -- we want to fully use our current capacities on supply chain to use this business model to provide richer choices of quality products to serve our customers in a more timely manner.

按需零售是京東全通路策略的重要組成部分，也是我們現有購物場景的重要延伸。它本身就是一個萬億美元級的市場，蘊藏著巨大的潛力。我們希望充分利用現有的供應鏈能力，運用這種商業模式，為客戶提供更豐富、更優質的產品選擇，並更及時地滿足他們的需求。

And also for some heavyweights products or those products that require cold chain or higher standard transportation like fresh foods and other coaching products, we will leverage the LBS-based local delivery services which has a better user experience for our customers compared with our B2C model because they have a lower cost and will be more time-sensitive to reach our customers.

此外，對於一些重量級產品或需要冷鍊或更高標準運輸的產品，例如新鮮食品和其他教練產品，我們將利用基於 LBS 的本地配送服務，與我們的 B2C 模式相比，這種服務能為我們的客戶帶來更好的用戶體驗，因為其成本更低，並且對送達客戶的時間要求更高。

And Shop Now program, which is also -- which is our on-demand retail service can help us to expand our goods resources to connect with the market resources and supplement to our online inventories, so we can collaborate with more offline stores to create more traffic and a win-win cooperation.

「立即購買」計劃，也就是我們的按需零售服務，可以幫助我們擴展商品資源，與市場資源對接，補充我們的線上庫存，從而與更多線下商店合作，創造更多客流量，實現雙贏合作。

And in 2021, based on JD's supply chain logistics, we have made some explorations attempts on the on-demand retail based on our users' demand and tens of millions of users on JD has experience for that. And for this business, it has achieved $10 billion scale at this moment.

2021年，基於京東的供應鏈物流，我們根據用戶需求，對按需零售模式進行了一些探索性嘗試。京東數千萬用戶在這方面擁有豐富的經驗。目前，該業務的規模已達到100億美元。

Just one correction for this JD's online retail, it has achieved RMB 10 billion, not dollars, market scale at this moment. And for 2022, we'll continue to build our supply chain and fulfillment capabilities and strengthen consumers' mind share on this business. And also, we will continue to construct our capabilities on this business surrounding our local community resources and our O2O operating system to further empower our merchants and partners and to enable them more retail -- on-demand retail services and also the on-demand retail will help JD to increase the stickiness and engagement on the OP value of JD users. There's a lot of work for us to do. Thank you.

關於京東線上零售業務，有一點需要修正：目前其市場規模已達100億元人民幣，而非100億美元。 2022年，我們將持續提升供應鏈與物流能力，增強消費者對京東線上零售的認知度。同時，我們將持續圍繞在地社區資源和O2O營運體系，進一步賦能商家和合作夥伴，協助他們實現更多零售——也就是按需零售服務。按需零售服務也將有助於提升京東用戶的黏著度和參與度，進而提高京東線上零售的價值。我們還有很多工作要做。謝謝。

Thank you. 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.

謝謝。電話會議即將結束。現在我將把電話交給京東的張先生，請他作總結發言。

Thanks for joining us on the call today and for your questions -- if you have any further questions, please contact us and our team. We appreciate your interest in JD.com and look forward to talking to you next quarter. Thank you.

感謝您今天參加我們的電話會議，也感謝您提出的問題—如果您還有其他疑問，請聯絡我們和我們的團隊。我們非常感謝您對京東的關注，並期待下個季度與您繼續交流。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。本次演講到此結束，您可以斷開連線了。祝您今天愉快。