Thank you. Good day, everyone.

Welcome to JD.com third-quarter 2025 earnings conference call. With us today are CEO of JD.com, Ms.

Sandy Xu, and CFO, Mr. Ian Shan.

Sandy will kick off the call with her opening remarks, and Ian will discuss the financial results. Then we'll open the call to questions from analysts.

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

Please refer to our latest safe harbor statement in the earnings press release on our IR website, which applies to this call. We'll discuss certain non-GAAP financial measures.

Please refer to the reconciliation of non-GAAP measures to the comparable GAAP measures in the earnings press release. Please also know all figures mentioned in this call today are in RMB, unless otherwise stated.

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

Thank you, Sean. Hello, everyone.

Thank you for joining our third-quarter 2025 earnings conference call. We achieved a set of solid results across our strategic priorities during the third quarter, and further enhanced our capabilities to drive better user experience, lower costs, and higher efficiency.

Our total revenues were up 15% year-on-year, sustaining our double-digit growth momentum. We are delighted to see growth of our general merchandise categories and marketplace and marketing revenues continue to accelerate sequentially.

Both are becoming our important growth drivers. Non-GAAP net profit came in at RMB 5.8 billion in the quarter, with the core retail business margin continue to expand year-on-year.

Our food delivery business also sustained healthy expansions, while its loss narrowed in Q3 from the prior quarter, as we continue to optimize operating efficiency and improve unit economics. Overall, our business are making good progress along our long-term strategic roadmap.

We are confident that our core retail business will steadily expand market share with healthy margin improvement, and new initiatives will create deeper synergies and drive healthier financial models, further strengthening our entire business ecosystem. Among all the encouraging developments that underpinned these results, I would like to point three most notable highlights for this quarter, which I believe should be the key takeaways from today's call.

First, strong momentum in our user base and engagement. Our quarterly active customer number was up over 40% year-on-year in Q3, sustaining the momentum built in the previous quarters, thanks to both organic growth of JD Retail, as well as contributions from our new businesses, such as JD Food Delivery and Jingxi.

The consistent growth has led to our annual active customers exceeding 700 million in October, making a new milestone in our user expansion. In particular, the number of JD PLUS members, our highest quality user group, also recorded healthy growth in the quarter.

In addition to user scale, user shopping frequency on our platform also increased by over 40% year-on-year in Q3, a pace we've sustained for two consecutive quarters. Notably, we saw meaningful shopping frequency increase across all user groups, including new users, existing users, and JD PLUS members.

This user momentum is clear proof that we have stayed very focused on providing a better user experience amid evolving user demand. In return, our expanding and more active user pool further improves our engagement with users, deepens our user insights, and enables us to better address their demand.

This virtuous cycle ultimately supports our sustainable growth in the long run. Second, our core retail business remained strong in Q3.

Retail revenues increased by 11% year-on-year in the quarter to RMB 251 billion. There were a mix of contributors to this.

While the high-base effect for electronics and home appliances category started to kick in, sales of general merchandise, as well as marketplace and marketing revenues, continued to accelerate growth this quarter. Profit-wise, both JD Retail's gross margin and operating margin further expanded at a solid pace, demonstrating the continued scale benefits and operating efficiency gains of the business.

Looking at the main categories, the electronics and home appliances category has been faced with a high base since the second half of Q3, which has been weighing on its growth momentum. This is an industry-wide challenge, and we are working closely with brands and manufacturers to navigate through it.

For example, we've been leveraging our market and user insights to support brands and manufacturers in developing new and customized product models. Meanwhile, we continue to lower the costs for brands and strive to secure the best prices for our customers, thanks to our supply chain capabilities.

Although the high-base effect is expected to linger in the near term, it's clear that the advantages of our business model and market position in these categories remain intact. We are confident in building on these strengths to unlock new growth potential in this market.

General merchandise category recorded 19% year-on-year revenue growth in Q3, an impressive acceleration from a quarter ago. Within this category, revenues from supermarket, fashion, and health categories maintained double-digit year-on-year growth in the quarter.

The strong tailwind is expected to sustain into Q4. This is a result of our efforts in enhancing our product portfolio, price competitiveness, and service quality, which eventually translates to better user experience and stronger user mindshare.

As we continue to tap into the huge market potential, we believe general merchandise will play a bigger role in supporting JD Retail's long-term growth. In addition to healthier category mix, another bright spot in our Q3 performance was marketplace and marketing revenues, which at the group level grew 24% year-on-year in the quarter.

It has remained on a double-digit growth trajectory for four consecutive quarters. In particular, growth of our advertising revenues has accelerated sequentially in every quarter this year, and exceeded 20% year-on-year in Q3.

This strong momentum mainly stems from the accelerated ad revenues generated by core JD Retail business. Our improved ecosystem for both 1P business and 3P merchants, better AI-powered ad tools, and improved traffic allocation efficiency, all have contributed to the strong trend.

As we move into Q4, we expect marketplace and marketing revenues to continue the healthy growth. Our platform ecosystem is taking good shape and gaining positive traction with suppliers and merchants, large and small.

The third highlight I want to share is on new businesses. Within the segment, JD Food Delivery continued to make healthy progress in Q3.

Its GMV achieved double-digit quarter-on-quarter growth in the quarter, driven by both order volume growth and a healthier order mix, with high-value orders contributing a vast majority of total orders. While scaling up, the food delivery business also narrowed operating loss sequentially in Q3, thanks to the improving UE performance.

This encouraging progress is achieved through our enriched supplies, increased operating efficiency, disciplined investment amid a competitive market, and our efforts to expand food delivery's revenue streams. More importantly, food delivery continued to generate strong synergies with our retail business.

In addition to user growth and engagement, the cohort cumulative cross-selling rate has been on an upward trend. Products from our supermarket, electronics accessories, and Jingxi categories remained the biggest beneficiaries of this trend.

Going forward, we will focus on further growing the food delivery business scale, UE optimization, and unlocking stronger synergies with retail, logistics, and other businesses across our ecosystem. Other new businesses, including both Jingxi and international business, are progressing well as planned.

Jingxi further penetrated into the lower-tier markets, and grew its merchant and user base. Our international retail business is gradually establishing capabilities in the UK, France, Germany, and Benelux regions, paving the way for our global expansion.

Both are making solid steps in executing on their long-term strategies. One more thing before I wrap up.

We unveiled our AI roadmap during the 2025 JD Discovery conference in September. I want to share a few exciting updates here.

First, we launched a number of new AI products at the event, including ChatChat, an all-purpose digital human assistant app, and JoyInside, an AI agent for robots, toys, devices, among others. Second, we introduced industry-specific AI applications across four sectors of retail, healthcare, logistics, and industrial.

Third, we also made upgrades to a few of our retail technology infrastructure, such as JD Streamer, our new digital human technology that provides e-commerce livestreaming and short video production solutions. JoyStreamer has served over 40,000 brands so far, with significantly lower cost and better sales performance compared to real human livestreaming costs.

In addition, we provide 24/7 non-stop AI customer service, which handled over 4.2 billion inquiries during our Double 11 Grand Promotion. We are excited about the potential of these AI applications, as we foster a comprehensive AI ecosystem spanning across various industries.

To conclude, Q3 was a productive quarter, with all our business lines moving ahead steadily on our strategic roadmap. The user momentum on our platform was strong.

Our core retail business is in a solid shape, with multiple complementary long-term growth drivers, and great potential for long-term margin improvement. Beyond core retail, new businesses, including food delivery, Jingxi, and our international retail business, are on track for healthy development, both financially and operationally.

Taken together, our businesses are operating in synergy, bolstering our conviction in the path ahead. We see great opportunities to further unlock the collaborative value of our business ecosystem and to position us well for sustainable, high-quality growth.

With that, now let me turn the call over to Ian.

Thank you, Sandy. Hello, everyone, and thank you for joining the call today.

In the third quarter, we recorded a set of healthy performance across our business lines. Our total revenues were up 15% year-on-year, outpacing the growth of NBS total retail sales.

This was supported by double-digit revenue growth in our core retail business. Despite the high base for electronics and home appliances, general merchandise and service revenues both delivered stronger growth in Q3 and recorded their fastest pace since the second quarter 2023.

In terms of profits, JD Retail achieved strong year-on-year expansion in both gross and operating margins in the quarter. Our food delivery business also saw a sequential reduction in investment scale.

Overall, our business are moving in the right direction, and we are at a stronger position to drive sustainable growth for the long term. Now let's go through our financial results in the third quarter.

Total net revenues increased by a solid 15% year-on-year to RMB 299 billion in Q3. Breaking down the mix, product revenues were up 10% year-on-year in Q3.

Revenues of electronics and home appliances were up 5%, decelerating from last quarter due to the high-base effect created by the trade-in program. This is in line with our expectations.

We're confident that we're positioned to further solidify our leading market position as we leverage our supply chain advantages and stay focused on enhancing user experience, reducing cost, and improving efficiency. Revenues of general merchandise were up 19% year-on-year in the quarter, a notable highlight of our Q3 performance.

Growth in general merchandise has sustained double-digit growth for four consecutive quarters, and further accelerated from the previous quarter. Within general merchandise, both supermarket and fashion categories saw growth rates surpassing mid-teens in Q3.

The results were mainly driven by our continuous efforts to enhance our operational capabilities, build up better user experience and mindshare, alongside our growing market share. This give us the confidence that the strong momentum in our general merchandise categories will continue going forward as we capture the huge potential in this market.

Service revenues were up 31% year-on-year in Q3, a solid acceleration compared to previous quarters. Notably, marketplace and marketing revenues increased 24% year-on-year, accelerating sequentially every quarter for seven quarters in a row.

Within this line, advertising revenues continued to see robust growth, mainly driven by the notable improvement of user engagement and better advertising tools that we provide for both suppliers and merchants at our core retail business. This demonstrates our more robust ecosystem and the strong growth in the number of merchants and users on our platform.

We expect marketplace and marketing revenues to continue solid growth in Q4, contributing to both our top-line growth and margin performance. Logistics and other service revenues grew 35% year-on-year in Q3, mainly driven by the incremental delivery revenues from food delivery business.

Now let's turn to our segment performance. JD Retail revenues were up 11% year-on-year in Q3.

Our core retail business has built multiple growth drivers, and we believe growth of the general merchandise category and value-added services, including advertising, will be important pillars in Retail's long-term growth. JD Retail also saw healthy progress in margin expansion in the quarter.

Its gross margin has sustained year-on-year expansion for 14 quarters in a row, and was up 1.3 percentage points to 19.3% in Q3. This was driven by a favorable mix shift towards higher-margin business, along with optimized procurement costs by leveraging our scale effect and supply chain advantages.

In addition, in Q3, JD Retail's non-GAAP operating income was up 28% year-on-year to RMB 14.8 billion, and operating margin was up 76 bps to 5.9%, both continuing strong momentum. Moving to JD Logistics, the logistics revenues were up 24% year-on-year in Q3.

Both internal and external revenues grew at a steady pace. JD Logistics also saw incremental delivery service revenues generated by food delivery business.

In terms of profits, JD Logistics non-GAAP operating income was compressed 39% year-on-year to RMB 1.3 billion in the quarter, as it continued to invest in customer experience, service capabilities, and technology to enhance the efficiency of the entire logistics process. These efforts aim to boost JD Logistics competitiveness in products and services and strengthen its market position, which over time will translate into sustainable margin expansion.

Our new business generated RMB 15.6 billion in revenues, a steady growth compared to last quarter. This was driven by the continued expansion of our food delivery, Jingxi, and international business.

Non-GAAP operating loss of new business slightly widened sequentially to RMB 15.7 billion. To break this down, food delivery saw a sequential reduction in its investment in Q3.

Our food delivery business continued to scale with a healthier financial model, with expanded revenue streams, disciplined spending in users, and increased operating efficiency. As to other new business, both Jingxi and international business increased investments compared to a quarter ago.

They're in a rapid development stage, and are important pillars in JD's long-term strategies. Going forward, we will continue to scale up the new business and further unlock synergies to set the stage for our future growth.

At the same time, we're committed to improving UE performance and aim to drive healthy and sustainable bottom-line growth in the long run. For our consolidated profit performance in Q3, our gross profit was up 12% year-on-year to RMB 50 billion.

Gross margin was 17%, slightly reduced by 0.4 percentage point. This was primarily due to margin dilution from the food delivery business and JD Logistics, which offset JD Retail's solid gross margin expansion in the quarter.

Consolidated non-GAAP net income attributable to ordinary shareholders was RMB 5.8 billion in Q3, and non-GAAP net margin was 1.9%, both down year-on-year. This near-term headwind in profits mainly reflects our investments in food delivery.

Our last 12 months free cash flow as of the end of Q3 was RMB 13 billion, compared to RMB 34 billion in the same period last year. This was primarily due to cash outflows associated with the trade-in program and the decline in operating income.

By the end of the third quarter, our cash and cash equivalents, restricted cash, and short-term investments totaled RMB 211 billion. In summary, we're encouraged by the solid progress in both core retail and new business.

Retail has built a growth matrix with multiple drivers and a clear path to our long-term margin target. Food delivery is growing with a healthier financial model, and other new business, including lower-tier market and international business, are also making solid steps for the next chapter.

All our businesses are on the right track, starting to generate notable synergies with one another, and collectively contributing to our high-quality development in the long term. With that, I will turn it back to Sean.

Thank you. Thank you, Sandy and Ian.

For the Q&A session, you're welcome to ask questions in English or Chinese, and our management will answer the question in Chinese. We'll provide English translations for convenience purpose only.

In case of any discrepancy, please refer to our management statement in the original language. Operator, we are open the call for Q&A session now.

Hey, Sandy, Sean, Sean, 晚上好，谢谢接受我的提问。我有两个问题。第一个是关于国补的影响的。随着下半年我们国补进入这个高基数的阶段，那管理层如何展望下半年这个大家电品类以及京东整体的增长呢？其实从财务方面，如果国补的需求放缓，对于京东零售的利润率会产生什么影响呢？这个是第一个问题。然后第二个问题是关于海外市场的。我们随着海外的并购还是进行，也看到我们公司 Joybuy 开启这个运营，那管理层也展开讲一下我们京东在海外的市场策略以及投入的节奏和规划吗？谢谢。我自己翻译一下。Thank you, management, for taking my questions. My first question is on the government trade-in subsidies.

As the year-on-year comparison base is getting higher into the second—into the fourth quarter, can management share the growth outlook for the electronics and home appliances growth for JD Retail? Financially, as the trade-in subsidies fade and volume kind of a slower in terms of growth year-on-year, how should we think about the margin impact on JD Retail?

My second question is on the overseas development. Post the recent acquisition on the company overseas and JD Joybuy commenced operations, can management share about its overseas strategy, including the scale and the pace of investment?

Thank you. 谢谢

Kenny 的问题。那大家的确也看到从去年开始，国补政策明显激发了消费需求。那么特别是对家电和电脑这两个品类的销售拉动是很明显的。这也导致行业增长在短期内不可避免地进入了高基数的情况。那我相信市场对此也是有预期的。那国补造成短期行业需求的变化呢，但我觉着更重要的、更深远的意义在于，它其实驱动了整个家电行业的升级，推动了产品的创新、智能化和绿色化，那也为行业高质量的增长注入了动力。 Thanks for your question, Kenny.

Yes, since last year, the trade-in program has stimulated consumer demand and contributed to the sales of home appliances and PCs. This created an inevitable high base for the industry, which is within the market expectation.

Although the trade-in program has caused short-term fluctuation in the consumer demand, its more substantial impact is driving the industry upgrade, and promoting products that are innovative, intelligent, and green, and ultimately leading to high-quality growth of the industry. 那么京东在国补期间积极地支持了政策的落地。在家电和 3C 品类的市场份额和供应链能力也得到了进一步提升，特别是我们的自营模式。那这些核心优势的持续强化呢，才是京东差异化的竞争力和业务长期发展的基础。我们也会继续发挥在产品、价格、服务上的优势。我们的长期目标始终是不断强化用户心智，持续巩固和提升市场份额。

Since the trade-in program, JD has actively supported implementation of the policy. As such, we have further enhanced our market share and supply chain capability in the related categories, and especially on our 1P model.

The continuous enhancement of our core advantage differentiates JD and builds our long-term growth foundation. We'll continue to leverage our strength in product, price, and service, with the goal to further strengthen user mindshare and consolidate and expand our market share.

We'll focus on a few areas. 对，这个几个领域包括首先产品创新方面，那我们也会跟品牌方合作推出更多的定制化的产品，来推动产品的升级和创新。在价格方面呢，我们也会通过规模的优势和我们的供应链能力去带动成本和价格的不断优化，来为用户提供更具竞争力的价格。那在服务方面，那我们也会打造线上线下全渠道的购物体验，比如说我们会持续完善家电 3C 品类的线下布局。那么在高线城市聚焦我们的京东 MALL，我们的超级体验店、城市旗舰店这样的大店；在下沉市场呢，专注我们的家电专卖店这些业态；那以及包括我们送装一体的差异化的服务，可以为用户提供更加优质的体验和更高效的模式，来不断地去巩固我们的市场份额。那截至三季度，我们在全国已经有超过 20 家京东 MALL 在营业，那么京东电器的城市旗舰店也超过 100 家。

This area includes: first, on the product innovation, we'll collaborate with brands to launch more customized products, driving product upgrades and innovation; on price optimization, we'll also leverage our scale advantage and supply chain capability to further optimize cost, offering user more competitive price; and on the service, we offering omnichannel consumer service, we'll build a seamless online and offline shopping experience for our customer. For example, we have been strengthening our offline presence in home appliance and 3C categories, focusing on large stores like JD MALL, JD Home Appliance city flagship stores in the high-tier cities, and smaller ones such as JD Home Appliance stores in the lower-tier market.

In addition, we also provide differentiated service, including integrated delivery and installation, offering better user experience and more efficient service to our user. With these efforts, we'll further consolidate our market share.

As of Q3, we have over 20 JD MALLs nationwide, and the number of JD Appliance city flagship stores exceeded 100. 对，关于利润率呢，我们会持续地为用户提供最具性价比的商品，来保证用户体验，加强用户的心智。同时呢，无论是在国补期间还是在未来进入常态化发展，我们团队都会持续发挥供应链能力，加强与品牌共建，通过定制包销这些方式来推动产业效率的提升，带来行业利润的提升，也会给我们带来长期利润率的改善。

In terms of profit margin, we'll continue to offer user the best value-for-money product to ensure better user experience and mindshare. Additionally, whether during the trade-in program or in the normalized phase going forward, our team will leverage supply chain capabilities and enhance collaboration with brands.

总体来说，我们非常有信心在家电和 3C 品类持续保持市场份额的提升。京东也将继续地去强化我们自身能力和战略布局，与品牌商家紧密合作，共同应对短期的行业挑战，助力行业实现长期的健康发展。同时我们的增长动力也会更加的多元化，包括超市、健康、时尚这些日百品类，还有广告等服务收入也都保持持续的加速增长的态势，成为京东整体增长的新动力。而且大家刚刚也已经分享，我们的用户数和用户购买频次也都保持着强劲的增长势头。在刚刚过去双 11，我们下单用户数同比增長也超过 40%。那这些呢，都为京东明年收入的健康增长提供了有力的支持，让我们对长期的增长更有信心。 Overall, we are confident in our user mindshare and market share in the home appliance and 3C categories.

JD will continue to strengthen our capabilities and strategic positioning, working very closely with brands to address short-term challenges and support the long-term healthy development of the industry. Additionally, our growth driver are now more diversified.

We have seen sustained sales growth acceleration in categories such as supermarket, health, fashion, and service revenue from advertising, which are emerging as new growth engines for JD. Furthermore, as I just have shared, both our user base and shopping frequency have been on a stronger growth trend.

During JD Double 11 Grand Promotion, the number of our shopping customer increased by 40% year-on-year. This set of momentum will support our healthy growth next year and give us more confidence in the long term.

第二个问题关于京东的国际业务，那首先从战略上看，我之前也分享过国际化是京东最重要的长期战略之一。而京东作为中国收入最大的零售商，我们也希望能够逐步构建起覆盖全球的更加高效的零售网络，把京东极致的购物体验带给全球的消费者。我们看到国际市场的规模足够大，比如欧洲是全球第二大的消费电子市场，仅次于中国，而且目前的用户体验还有很大的提升空间。我们也希望能够抓住中国供应链出海的机遇，发挥我们自己的供应链优势，更好地帮助众多的中国品牌出海。那么在模式上与传统的跨境电商不同，我们会更多地依托我们的供应链能力来发展本地电商的策略，与全球优质品牌和供应商合作共赢。 Regarding your second question on JD's international business, first, from the strategic perspective, international expansion has always been a key long-term strategy for JD.

As the largest retailer in China, we aim to gradually establish a highly efficient global retail network so that we can deliver JD's premium shopping experience to consumers worldwide. We recognize the international market is very big.

For example, Europe is the second-largest consumer electronics market in the world, only second to China, and there are still many great areas to improve user experience. We also aim to seize the opportunity of Chinese supply chain going global, leveraging our supply chain advantage to better support Chinese brand in their international expansion.

In terms of business model, unlike other cross-border e-commerce platforms, we leverage our supply chain capabilities, commit to a local e-commerce approach and localization strategy. We collaborate with high-quality brands and supplier around the world to create mutually beneficial partnership.

那么从进展上来看呢，目前我们在欧洲的线上零售业务 Joybuy 已经在英国、法国、德国、荷兰等国家开始了试运营。那这也标志着我们京东国际化战略的重要一步。我们也将持续完善用户体验，在关键的领域和能力上持续地建设。那具体包括持续的丰富商品供给，与更多全球的优质品牌去建立合作；那么在物流方面呢，也将持续地提升仓储、配送效率和稳定性；那另外呢在研发方面，的确产品的这些平台功能和购物体验也还有优化的空间。那也非常欢迎在欧洲的投资人和分析师能够体验我们的产品，给我们多提建议。那关于 Ceconomy，目前项目还在审批的过程中，有进一步的更新会随时与大家沟通。 In terms of progress, currently Joybuy, our European online retail business, is in the test phase in countries including the UK, France, Germany, and the Netherlands.

This marks an important step in JD's international strategy. We'll continue to enhance user experience and build our key capabilities in areas including: first, expanding product offerings and collaboration with premium global brands; second, enhancing logistics capability to improve the efficiency and stability of warehousing and delivery; third, investing in R&D to optimize the product functionality and enhancing shopping experience.

We welcome investor and analyst based in Europe to experience our Joybuy app and provide us your experience. Regarding Ceconomy, the transaction is still subject to the regulatory approval.

We'll provide you guys further updates when appropriate. 对，从投入上来看呢，这是一个持续推进的过程，那我们也会坚持逐步和稳健的财务纪律，那去关注投入产出，去动态调整，实现业务的健康可持续的增长。那整体上来看，国际业务的投入相对可控，我们会控制好投入的节奏和规模。

From the investment standpoint, this is a gradual process. We will continue to advance our international expansion strategy steadily while maintain a gradual and prudent financial discipline.

We will prioritize investment efficiency and make dynamic adjustment to achieve healthy and sustainable growth. Overall, the scale of the investment in our international business will not be substantial for JD.com, and will carefully manage the investment pace and scale.

Operator, we can take the next question.

Sandy, Ian, Sean, 那有两条提问。第一想问这个外卖的战略和 UE。那在这个亏损的状态，我们这个外卖业务我们觉得这个投资的周期我们会有多久？那包括这个 UE 未来怎么改善的话，想听一下我们对那个佣金、七鲜小厨、不同的这些 business models 如何改善我们外卖这个进一步的 UE 改善。第二就想问我们日百品类和 3C 增速非常、非常健康，非常快。那想知道我们怎么加强这个商超、健康和服装品类的这个竞争优势，那在选品、体验和价格方面。那我翻译一下。Thank you, management. Two questions.

The first is on food delivery. What is the duration that JD will be committed to invest at this loss-making period as part of customer acquisition, and what's the progress in improving unit economics in commissions and business models like the 7FRESH and even coffee across the 7FRESH brand?

Second question is on general merchandise, seeing very healthy growth there and in 3P. How do we plan to further strengthen the competitive edge in the 3P categories, supermarket, health, and apparel, in terms of speed, selection, quality, and price?

Thank you. 谢谢 Ronald 的问题。那首先在外卖这边呢，无论是外卖还是即时零售对我们来说同样也是一个长期战略。那我们的目标呢还是推动业务的健康发展，去保持可持续的增长。所以在过去几个月我们一直专注在持续优化内部的运营效率，提升 UE 的水平。那在刚刚过去的三季度面对行业的激烈的竞争，我们还是保持相对的理性。那目前呢，整体业务还是处在战略布局的第一个阶段，我们的目标呢是在品质外卖的领域有比较好的用户心智和市场份额。那我们也会充分的去做好像品质外卖，服务好现有高质量用户，同时也积极吸引更多的新用户。那另外呢，就是我们最擅长的事情是供应链，所以我们也会持续深耕供应链，比如通过创新的七鲜小厨模式，那么彻底从源头来解决用户对食品安全的焦虑，为用户提供差异化的体验和服务。

Thank you, Ronald, for your question. Both food delivery and on-demand retail is a long-term strategy for JD.

We aim to drive healthy and sustainable growth of the business. We have been optimizing operational efficiency and improving UE.

In Q3, we remained very rational amid the intensified competition in the industry. Our food delivery business is currently in its first stage of development.

Our goal for this stage is to establish better user mindshare and market share in the quality food delivery sector. We will be committed to providing high-quality food delivery service to our existing premium user, while attracting new users.

Additionally, as you guys know, what we good at is supply chain, we'll continue to deepen our supply chain effort, such as through our innovative 7FRESH kitchen model to offer differentiated experience and service to our users. 那么在三季度呢，我们京东外卖也保持了健康的增长态势。那一个是外卖的 GMV 环比取得了双位数的增长。在单量增长的同时，订单结构变得更加健康，正餐的订单占比持续提升，目前占到我们总订单的绝大部分。另外我们的客单价环比二季度也是在环比提升的，即使在这么激烈的竞争环境中。另外在规模扩张的同时，我们的外卖在 Q3 的整体投入是环比收窄的，那这主要得益于我们 UE 的逐步改善。那今年呢我们对商家推行了免佣政策，所以我们的收入相对是比较少的。而且一个是佣金收入比较少，另外呢就这个新业务也刚刚产生比较有限的广告收入。但是呢我们的业务团队在持续提升运营的效率，包括更加丰富的供给，让我们的品质餐饮的商家数量持续增长。那么在补贴效率方面也在逐步提升，那我们也在针对不同地域、用户群体以及订单类型做了更加精细化的运营和策略。那么在运营效率上面的提升呢，我们也在进一步升级底层系统的能力，来优化整体的体验和效率。同时呢我们在 7 月份也推出了七鲜小厨模式，那这是一个通过供应链创新来解决食品安全痛点的新模式。那我们的目标呢是在确保消费者吃得安心的同时，也能够助力品质的餐厅赚钱。那自从推出以来，七鲜小厨获得了消费者的认可，订单量也快速增长，而且也有效带动了周边 3 公里范围其他品质餐厅的订单量。大家在今年年底将会看到北京更多的七鲜小厨。

In the third quarter, JD Food Delivery maintained healthy growth trend. JD Food Delivery GMV achieved double-digit growth quarter-on-quarter, alongside order volume growth.

It also delivered healthier order mix, with the proportion of meal orders steadily rising and contributing to a vast majority of our total order. At the same time, average price per order also increased quarter-on-quarter compared to Q2 amid intensified competition.

This is remarkable. While scaling up, overall investment in JD food delivery business in Q3 narrowed sequentially, thanks to the UE improvement.

The revenue contribution of food delivery is still limited as we are implementing a commission-free policy for merchants, and only started to generate limited advertising revenues. That said, our team has made solid progress in improving operational efficiency, including enriching supplies.

The number of high-quality restaurant merchants continued to grow in the quarter. We also further improved our subsidy efficiency with refined operations and tailored subsidy strategy to different regions, user groups, and order types.

In addition, as we continue to upgrade our underlying system capability, we have seen better operating efficiency. We also launched our new business 7FRESH kitchen model into line, which address food safety concerns through supply chain innovation.

Our goal is to ensure that consumer can enjoy their meals with peace of mind, and at the same time help quality restaurant improve profitability. Since its launch, 7FRESH kitchen has been welcomed by our customers with a rapid increase in its order volume.

It has also boosted sales and order growth of other quality restaurant within the 3-kilometer range. By the end of this year, people will see more 7FRESH kitchen in the region of Beijing.

那未来我们也会继续以长期的视角来推进我们的战略规划。那当然同时也会考虑长期的投入产出。那我们的目标呢始终是打造可持续发展的商业模式。一方面追求单量的增长，同时呢也会逐步释放外卖业务的规模效应，那么提升我们的 UE。那最终外卖业务是一个可以自己独立生存的业务。而且更加重要的是京东外卖的业务呢会深植于整个京东的业务生态，包括在用户端、供给端、履约端，都和我们现有的业务有深度的融合和创造协同价值的空间。那这些业务并不是简单的加减关系，那么从长期看我们的用户获取成本会下降。那么集团整体呢也会在保持盈利和现金流充足的基础上去追求可持续增长。 Looking ahead, we'll drive our strategic progress with a long-term perspective and focus on long-term ROI.

Our goal is to create a sustainable business that drives healthy order growth, and at the same time gradually unlock scale effect and enhance operations with better UE. Ultimately, JD Food Delivery should be a self-sustaining business.

Moreover, food delivery is deeply integrated into JD overall ecosystem. We believe there is significant potential for synergies in user momentum, supplies, and fulfillment within our ecosystem.

The way of our business working together is not simply adding one and cutting another. In the long term, JD user acquisition cost will decrease, and at the group level, we are committed to driving sustainable growth while maintaining profitable and cash flow sufficient.

对，关于日百品类的这个问题，刚刚也分享，就是这个品类也连续四个季度都实现了双位数的增长。那我们也清晰地看到，包括商超，还有时尚在内的日百品类还是有很大的增长空间的。那京东的用户还有很多尚未满足的需求。那对于各个品类呢，我们也有明确的增长策略。在商超品类上，我们聚焦加强用户心智和用户渗透，持续通过黑五、超级 18 这些日常的营销活动来不断加强用户对京东超市的心智，抓住京东整体用户的快速增长的态势，持续提高用户跨品类的渗透和转化。那另外呢，我们也通过供应链能力持续优化我们的成本，提升运营效率，给用户带来更具竞争力的价格。那现在京东超市的商品性价比也在持续提升，无论是跟线上的其他模式还是线下相比都有很强的竞争力。那这也是我们自营模式规模化效应的一个体现。那同时呢，我们也保持与品牌共创，提高品类、品牌精细化运营能力，打造具有京东心智的和增长潜力的品类，例如酒水、母婴、家清这些品类都已建立了很强的用户心智，而其他品类呢也会逐步突破。 Regarding your question about our general merchandise category, as I mentioned before, it has sustained a four quarters consecutive double-digit growth.

Key categories, especially supermarket, health, fashion, and home goods, all delivered very strong growth. We see significant growth potential in general merchandise, including supermarket and fashion, as our users have substantial unmet demand.

We have clear growth strategy for each of these key categories. First, on supermarket categories, we focus on improving user mindshare and user penetration.

Through our promotions such as Black Friday and Super 18s, we'll build stronger user mindshare of our supermarket offering. Supermarket category will also take the opportunity of our rapid user growth on the platform to drive a higher penetration and conversion.

We have been optimizing cost and improving operational efficiency through our supply chain capability, providing more competitive price to our user, which validates the economic scale of our 1P model. Our supermarket category has made solid progress in this area, and build strong competitiveness compared to other model, online and offline.

At the same time, we will collaborate with brands further refine our operations and build categories with strong JD mindshare and growth potential, such as liquor, baby and mom products, and household cleaning categories, all have already established strong user mindshare. We expect to make breakthroughs in other categories as well.

整体来看，我们在日百品类上的策略非常清晰，那团队的运营能力也在持续提升。我们对整个品类未来增长的空间充满信心。那日百品类也正在成为京东多元化增长矩阵的重要部分，也是我们长期稳健增长的重要驱动力。 Overall, our strategy for the general merchandise category is very clear.

We are confident in the growth potential and market opportunity in the general merchandise sector, as we enhance operation and user mindshare. General merchandise is an important pillar of JD growth matrix and will support our long-term sustainable growth.

We can take the next question, operator.

Hi, thank you. 谢谢管理层接受我的提问。两个问题，第一个问题是请管理层分享这个日百品类受益于外卖流量的协同效应吗？然后京东外卖用户大部分是来自京东的忠实用户吗？然后通过外卖渠道新获取的用户的留存率是多少，能够分享一下吗？然后管理层能否量化并分享外卖获取的新用户转化成这个核心零售用户的这个 cohort？然后第二个问题是请管理层介绍京东在 AI 战略和投入的最新进展，能否详细地解释 AI 如何帮助京东核心业务以及对财务的影响？我自己翻译一下。So can management share with us the synergies on general merchandise category that benefit from the food delivery traffic?

Are most of your food delivery user come from loyal JD user, and what is the retention rate of the newly acquired user through the food delivery? Would you able to quantify and share the cohort of new food delivery user who become active user of JD core retail user?

Second question is, can management update us on your latest AI strategy and investment? Can you elaborate how AI has helped on JD's core business, and how do we think about the financial impact?

Thank you. 多谢

Alicia。我要回答第一个问题。那我们看到外卖业务健康发展的同时，与核心零售的协同效应也在逐渐显现出来。那首先呢在用户增长和活跃度方面，三季度京东 App 的整体 DAU 继续保持高速增长，那增速持续领跑行业。京东的用户数和购物频次均保持超过 40% 的同比增速。我们通过品质外卖更好地服务京东现有的高质量用户，那外卖用户的复购率保持着较高水平，而且带动大盘用户的活跃度和购物频次的提升，同时也吸引了更多的新用户。那京东的年度活跃用户数已经跨过 7 亿的里程碑，那显示我们持续扩大的用户基础和不断增强的用户粘性。同时呢我们也在加快部署和优化用户转换策略和工具，那结合用户的偏好精准选品，提高对外卖新用户的转化。那我们看到外卖带来的新用户的转化率在逐月提升，最早一批的外卖新用户的 cohort 的转化率已经接近 50%。 Thank you, Alicia, for your question.

I'll take the first one. As JD Food Delivery drives healthy development, we also see it's generating deeper synergies with JD Retail.

First, on the user growth and user engagement side, in Q3, DAU of JD App maintained a rapid growth, with growth rates leading the industry. Our quarterly active customers and user shopping frequency both recorded over 40% year-on-year growth in the quarter.

As we continue to provide quality food delivery, we've seen JD Food Delivery's user retention rate maintained at a relatively high level, and at the same time, boost our overall user engagement and user shopping frequency. While serving our high-quality existing users, our food delivery business also attracts new users to our platform.

Our annual active customer number surpassed the milestone of 700 million in October, reflecting our expanding user base and increasing user stickiness. At the same time, we've been accelerating the deployment and further optimizing our user conversion strategies and tools.

Based on the preferences of food delivery users, we've been providing retail product selection and recommendation in a more precise way, thus driving better user conversion. We've seen that the conversion rate of the new users acquired by JD Food Delivery has been trending up month by month, and for the earliest group of such users, their cohort conversion has reached close to 50% in Q3.

第二呢，在跨品类购物方面，我们看到外卖用户的跨品类购物行为在加强，特别是在商超、生活服务的日百品类上。那不仅带来新用户，也拉动了老用户的购频次提升。那我们相信外卖将为日百品类注入新的增长动力。那同时外卖业务也带来了京东秒送业务的快速发展。那为此我们内部成立了专门团队，密切关注秒送业务的进展。未来我们将继续加快外卖业务和核心零售在用户跨品类购物以及营销上的协同，那不断挖掘京东整体业务生态中更多的协同价值，带动京东整体用户和收入的健康增长以及效率的提升。 Second, on the cross-sell side, we've seen a stronger trend of cross-category purchases of food delivery users, particularly of our general merchandise categories, including supermarket products and life services.

We believe food delivery will create new growth momentum to our general merchandise category as it attracts new users and drives up shopping frequency of our existing users. In addition, JD Food Delivery has also accelerated the development of our on-demand retail business.

We've built a dedicated team that pays close attention to this area. Going forward, we will continue to accelerate the synergies between food delivery and core retail business in terms of user momentum, cross-category purchases, and marketing.

In addition, we will tap into more synergies of our broader business ecosystem, driving healthy progress in our user base expansion, revenue growth, and efficiency improvement. 那我来回答第二个关于

AI 的问题。那我们的确看到在这个时代，也非常相信 AI 所带来的巨大的发展机遇和业务模式变革的巨大价值。那目前京东呢也已经在基础设施、模型、平台、场景和产品层面都构建了完整的 AI 的能力体系。那我们也规划在未来三年呢，会持续的投入带动各个产业共同形成万亿规模的人工智能生态。在 9 月份刚刚落幕的 JDD 大会上，我们也全面展示了京东在 AI 的整体战略布局，那它包括了我们的模型本身 JoyAI，然后我们的数字人万能助手塔塔塔，我们的这个机器人 AI 智能体 JoyInside 这些重要的 AI 产品。 I'll answer the second question.

We are in the new era where we see a lot of new opportunities in AI and significant value of business model reform. JD has built a solid, comprehensive AI capability framework that covers infrastructure, models, platforms, application scenarios, and products.

Over the next three years, we'll make a sustained investment to foster a trillion RMB-scale AI ecosystem across various industry. At our JDD conference in September, we have unveiled JD AI strategy roadmap and launched flagship AI product, including our JD AI, ChatChat, and all-purpose digital human assistant, and JoyInside, an AI agent for robot, toys, devices, and among others.

那么在应用上呢，我们的差异化优势在于我们拥有众多的落地场景，包括零售、物流、健康和工业等。那以零售场景为例，我们为商家提供 AI 助手、广告智能投放的 Agent，还有京点点等 50 多款 AI 工具，来帮助商家在内容生成、营销投放、供应链管理、客服这些环节降本增效。那同时呢我们也在探索 AI 时代的电商购物体验，那也推出了智能搜索的推荐功能。那么通过自然语言交互来精准理解用户的需求，来实现对传统购物方式颠覆性的效率突破，为用户提供个性化的购物体验。在物流场景里面，那京东的物流机器人在全国超过 20 个省份、全球超过 10 个国家的规模化部署应用，也覆盖了仓储、分拣、运输和配送等一体化的物流全链路。那未来呢包括物流的机器人、无人车、无人机的规模化、智能化应用也将进一步助力和降低全社会的物流成本，可以为我们的合作伙伴降本增效提供科技方案，同时持续优化用户的购物体验。 In terms of AI application, JD's differentiation is that we have extensive application scenarios, including retail, logistics, healthcare, and other industry sectors.

Taking both retail and logistics as example, in retail use case, we are providing merchants with over 50 AI tools such as AI assistant, AI agent for advertising allocation, and Jingdiandian to help merchant enhance efficiency and lower cost in content generation, marketing, supply chain management, and customer service. We also redefined e-commerce experience in the AI era.

We launched a smart search and recommendation function through natural language interaction. It can precisely understand user needs and delivering a huge breakthrough in shopping efficiency and truly personalized shopping experience.

In the logistic use case, our logistics robots have been deployed across more than 20 provinces in China and over 10 countries globally, covering the entire logistics chain from warehousing, sorting to transportation and distribution. Looking ahead, the expanding deployment of logistics robots, autonomous vehicles, and drones will further reduce logistics costs in the society, increase our business partner efficiency, and keep optimizing shopping experience for our consumers.

Operator, we can take the last question.

3P 商家在数量、收入占比，还有未来几个季度的一个预期。另外的话，管理层可以分享一下我们对未来几年在盈利还有利润率的看法。Thanks, management, for taking my questions. My first question is about ecosystem development, including the number of 3P merchants, contribution, as well as the expectation over the next few quarters.

My second question is about the outlook in terms of our profitability and margin in next few years. Thank you.

好的，谢谢。我们的平台生态发展取得了非常不错的进展，那各项指标也在保持快速增长的势头。在第三季度，京东的活跃商家数保持了同比增長超过

200%。我们引入了更多优质的头部商家、产业带商家，然后为消费者提供更丰富的商品供给。那同时呢，外卖业务也给我们带来了大量的品质的餐饮商家。我们也看到用户的积极反馈。在第三季度，我们的 3P 的用户数同比快速增长，同比超过 50%，增速快于大盘的用户增速。那从财务结果看，佣金和广告收入保持快速增长的势头，第三季度加速到 24%，是自 22 年第二季度以来最快的增速。 Thank you, Thomas.

We've actually made solid progress in developing our platform ecosystem, with a set of indicators growing at a very rapid pace. In Q3, our active merchant number grow by over 200% year-on-year.

We've onboarded more top-tier merchants, as well as merchants from industrial belts, providing users a further enriched product offering. Meanwhile, our food delivery business has also brought in a large number of quality restaurant merchants.

We've also seen positive feedback from users. In Q3, the number of users who shopped our 3P offerings grow at a fast pace of over 50% year-on-year, outpacing the growth of our total users.

Reflected in financial results, our commission and advertising revenues have been on a very rapid growth trajectory, with growth rate accelerating to 24% year-on-year in Q3, which is the highest pace since Q2 2022. 第二呢，我们的平台生态业务还有很大的发展空间。具体来说，我们将深入产业带，继续吸引更多的商家，同时持续招募品质餐饮商家，丰富 3P 生态的本地供给。我们也会完善平台的基础设施，为商家提供更多的技术工具，帮助商家提升经营效率，优化商家的运营规则、流量分配，为商家创造清晰的成长路径和公平的营商生态。我们也会不断地加强 3P 的用户心智，尤其是大商超等 3P 为主的品类。我们已经看到越来越多的消费者建立起买服装上京东的心智。最后，我们会坚定地发展平台生态，与商家实现共赢，服务好用户，改善用户体验。那平台生态也将成为我们提升收入和利润的长期驱动力之一。

We believe our platform ecosystem has a lot of potential. In particular, we will further explore industrial belts to onboard more merchants.

We will also continue to expand our food delivery merchant base to enrich local supplies for our 3P ecosystem. In addition, we will continue to strengthen our platform infrastructure and provide more tech tools to merchants, with the goal to help them enhance operating efficiency on our platform.

We will also optimize merchant operation rules and traffic allocation efficiency to create a clear growth path and a fair ecosystem for our 3P merchants. In addition to that, we will continue to strengthen user mindshare of our 3P offerings.

We've seen that for our 3P-driven categories, such as fashion categories, users have built growing mindshare of shopping for clothing on JD.com. We're committed to developing our platform ecosystem, achieving win-win outcomes with our 3P merchants and better serving our users.

Platform ecosystem business will also be our long-term driver for both revenue growth and the profitability expansion. 第二个问题是，在第三季度，京东零售的利润继续保持稳健的增长，进一步验证了我们的核心零售业务的利润率长期稳步提升的信心。那利润的增长主要驱动力包括我们的平台生态健康发展，带来佣金和广告等服务收入的快速增长，从而带动利润率的提升。第二呢，我们通过不断地加强自营供应链能力，发挥核心业务的规模效应，不断地推进业务的降本增效，保持健康的利润表现，特别是零售的毛利率已经保持 14 个季度的持续的稳步提升。第三呢，品类结构的变化也会影响我们的利润率趋势。现在我们绝大多数的品类和品牌的运营效率和利润率都在持续改善，尤其是日百品类中商超品类的采销运营能力和差异化产品力都在提升，利润率仍然有很大的提升空间。而带电品类随着商品结构的优化，从长期来看也有利润率提升的空间。第二呢，就是在新业务的投入上，我们始终围绕着供应链能力的投入，在外卖、国际、惊喜等新业务进行布局，不断完善我们的供给、履约、服务等方面等基础能力，然后拓宽京东的服务范围，通过品类、人群和地域的扩展带来更大的增长空间。那随着这些新业务与现有业务产生更大的协同价值，我们相信会带来整体效率的提升和利润的改善。最后呢，我们的利润率达到高个位数的长期目标是坚定不变的。

For your second question, in Q3, JD Retail continued to see steady profit growth. This further validates our confidence in Retail's long-term margin trajectories.

The main drivers for this include: first, the healthy development of our platform ecosystem will drive growth momentum in our commission and advertising revenues, which will be a contributor to our margin expansion; second, as we continue to build up our supply chain advantages and the scale effect of our core retail business, we're confident to further lower costs and improve our operating efficiency, which will lead to better margin performance. To note, JD Retail's gross margin has been expanding year-on-year for 14 consecutive quarters.

Third, our category mix shift will also impact our margin performance. Currently, the operating efficiency and margin performance of most of our categories and brands have been improving.

In particular, our supermarket category has built stronger procurement capabilities and differentiated product offerings. We see meaningful potential to further increase supermarket's margins going forward.

Meanwhile, as we continue to optimize the product mix for electronics and home appliances, we also see room to increase these categories' margins in the long term. In terms of investment in our new businesses, we've been centered around supply chain capabilities to make investments, such as in food delivery, international, and Jingxi businesses.

As we further enhance our supply, fulfillment, and services, and a broader coverage in categories, customers, and regions, we see more growth potential of our businesses. As the new initiatives generate deeper synergies with our existing businesses, we expect to see improvements in operating efficiency and profitability of our broader business ecosystem.

Finally, our high single-digit margin targets for the long term remains unchanged.

That's a wrap, operator.

Thank you for joining us on the call today, and thanks for your question. If you have further question, please do not hesitate to contact me and our team.

We appreciate your interest in JD.com and look forward to talking with you again next quarter. Thank you.

Have a good day.