Thank you. Good day, everyone.

Welcome to JD.com fourth quarter and full year 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.

Please note, unless otherwise stated, all comparisons in this call will be against our results from the comparable period of 2024. 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 note all figures mentioned in this call are in RMB, unless otherwise stated. Now, let me turn the call over to our CEO, Sandy.

Thank you, Sean. Hello, everyone.

Thank you for joining our fourth quarter and full year 2025 earnings conference call. We closed Q4 with results in line with expectations, as we navigated short-term challenges while delivering a solid overall full-year performance for 2025.

During Q4, despite a high year-on-year comparison base in electronics and home appliances, our top line remained resilient, thanks to the continued strong momentum in both our general merchandise categories and marketplace and marketing revenues. Our core business, JD Retail, achieved a notable gross margin expansion in Q4, as we further leveraged our supply chain advantages.

We strategically invested some of these gains into our price competitiveness, particularly in electronics and home appliances categories, as well as in R&D capabilities and talent to secure a long-term edge. This slightly tempered retail's margin expansion in the quarter, but the impact was well absorbed by our increasingly diversified profit streams, including high-margin marketplace and marketing services, and margin improvement in categories such as supermarket and healthcare.

Beyond core retail, our new businesses continued to record steady efficiency gains, and a sequential decline in total investment. Beyond the quarterly fluctuation, 2025 remained a year of solid execution, where we delivered on our full-year expectations.

We have made encouraging strides across our key long-term growth drivers. User base and engagement gained significant momentum, and our core retail segment accelerated back to double-digit top-line growth.

Notably, we achieved this while expanding JD Retail operating margin for the sixth consecutive year, despite a highly competitive landscape. We are expanding our TAM with several promising new business initiatives.

This solid progress is rooted in our deepening supply chain capabilities, which remain the engine for delivering superior user experience, optimized cost, and enhanced operating efficiency. This is the backbone of our business model, not only supporting our core retail business, but also fueling our expansion into the new markets and our strategic initiatives.

We are confident that this strategic pillars position us for more sustainable and profitable growth. Moving into our operational highlights, I'd like to share three highlights from Q4 and full year 2025, as well as our thoughts for 2026.

First, our user base expanded in both scale and depth throughout 2025. Our quarterly active customers grew by over 40% year on year in Q4, capping a year where we exceeded 700 million annual active customers.

This growth was powered by the organic user growth of our core retail business, and further accelerated by new strategic initiatives, including JD Food Delivery and Jingxi. High-value users also reached a new milestone.

Our active JD PLUS member base sustained double-digit growth, surpassing 40 million mark by year-end. What's even more encouraging is the quality of user growth.

User shopping frequency surged by over 40% year on year for the full year, with broad-based gains across all user groups, including new and existing users, as well as PLUS members. In addition to user acquisition, JD Food Delivery also played an important role in this frequency lift.

We view the expansion of user base and engagement as a long-term strategic driver for our business, and expect it will further amplify in 2026 and beyond. Second, our core retail business demonstrated remarkable resilience in Q4, maintaining stable margin in the quarter despite short-term top-line headwinds.

On a full-year basis, JD Retail delivered strong double-digit growth in both revenue and operating profit, with operating margin expanding by 52 bps to 4.6%, viewed through a long-term lens. This consistent trajectory of JD Retail's growth and margin expansion over multiple years stands as a powerful testament to the resilience of our supply-chain-driven model.

While Q4 revenue edged down to 1.7% year on year due to softness of electronics and home appliance categories, we have proactively strengthened our supply chain capabilities and deepened user mindshare. These efforts are already paying off, with improved momentum year to date in 2026.

Furthermore, we expect to be benefiting from the resumed trade-in program this year, which will provide a constructive backdrop for industry growth. Turning to general merchandise, its performance remained strong, with revenue up 12.1% year on year in Q4 and 15.3% for the full year.

Supermarket revenue maintained double-digit growth in Q4. For the full year, supermarket growth reached mid-teens, accompanied by steady growth and operating margin expansion.

Our fashion categories also achieved significant gains in both top-line and user mindshare expansion throughout 2025, with healthy growth across user base, shopping frequency, ARPU, and ticket size. These results were driven entirely by the team's execution rather than external tailwinds.

We are confident in sustaining the general merchandise momentum as our category mix continues to evolve toward a more diversified structure. Another exciting emerging growth driver for JD Retail is advertising revenue, which boosted our marketplace and marketing revenues to grow 15% in Q4 and 18.9% year on year for the full year.

The robust growth was fueled by our optimized traffic allocation, enhanced conversion efficiency, and the rollout of our AI-powered algorithms and agents for our suppliers and merchants. We are also seeing a strategic shift where advertisers are reallocating budgets toward platforms like JD, as we are regarded as the most consistent daily sales platform, the premier destination for brand building, and the platform that offers the highest return throughout a product's entire lifecycle.

Notably, the synergy with JD Food Delivery is starting to bear fruit, contributing an incremental 2% to 3% to ad revenue in Q4. We remain confident in sustaining our advertising revenue momentum in 2026.

The third highlight is the solid progress of our new businesses. Within the segment, JD Food Delivery continued to drive healthy progress in Q4.

We maintained steady order momentum while further optimizing our investment, further reducing the total investment scale by nearly 20% quarter on quarter. Since its inception, JD Food Delivery has sustained sequential loss reduction every single quarter, a direct result of our relentless focus on improving operating efficiency and an ROI-driven investment framework.

In Q4, JD Food Delivery loss rate over GMV narrowed significantly compared to a quarter ago, while maintaining the scale momentum. More importantly, the strategic synergies with our core retail business are deepening.

Beyond the strong user momentum mentioned earlier, both cohort, cumulative cross-selling rate, and shopping frequency trended upward in Q4. Additionally, total active merchants have increased by over 270%, which was also partially contributed by the high-quality restaurants that onboarded our platform.

Looking ahead, JD Food Delivery will continue to prioritize healthy volume growth while improving its unit economics at a greater level. We expect investment efficiency in food delivery to improve further this year compared to 2025 level.

Regarding our other new business initiatives, both Jingxi and international business are progressing on track. Jingxi continues to successfully penetrate lower-tier markets, expanding both our user base and user mindshare.

Furthermore, we are excited to announce that Joybuy, our online retail business in Europe, will officially launch this month. We are committed to redefining the local shopping experience by providing same-day and next-day delivery services, a move that opens up greater growth horizons for JD.

We will continue to invest in these high-potential segments in a prudent and controlled manner to fuel our long-term sustained development. While executing our core strategies, we are equally inspired by the transformative potential of AI.

By leveraging our deep supply chain capabilities, we are embedding AI across our entire value chain, identifying and stimulating demand, sourcing 1P and 3P supplies, and pioneering autonomous logistics. Let me share a few examples of our AI initiatives.

First, proprietary intelligence. Our large language model, JoyAI, now supports over 1,000 real-world applications across customer experience, procurement, merchant services, and operations.

In 2025, JoyAI's total token invocations surged nearly 100-fold from 2024, fueling faster, smarter decision-making throughout the company. Second, demand cultivation.

We are reshaping the shopping journey and enhancing user experience through AI-driven search and recommendation. Jingyan, our AI agent, surpassed 150 million annual AAC in 2025, with over 20% user penetration, driving billions in GMV.

We expect to double this user base in 2026. Third, logistics autonamation.

Parallel to the digital intelligence is our leadership in autonomous logistics. In 2025, JD Logistics continued to redefine logistics efficiency.

As of the year-end, it deployed over 20 flagship Langzhu Tech warehouses across China. We also launched this capacity internationally, launching our first Langzhu Tech facility in the UK to efficiently support a premium 211 same-day and next-day fulfillment experience locally.

Furthermore, services and innovation. Our multimodal AI customer service handled over 4.2 billion user inquiries during the Double 11 promotion, achieving higher satisfaction with lower human intervention.

Beyond operations, we are unlocking new consumption potential through Joy Inside, our AI agent for hardware, which has partnered with 40 hardware brands to introduce a range of AI products. Sales of Joy Inside integrated products surged 20-fold during Double 11 compared to the June 18th promotion.

By harnessing AI to redefine our competitive edge, we are further equipped to enhance our user experience, lower costs, and improving operating efficiency. We are well positioned to capture the opportunities arising from AI to unlock new growth frontier for 2026 and beyond, ultimately placing us at the forefront of AI commerce.

In summary, 2025 was a year of constructive progress and strategic fortitude. Despite navigating short-term macro environment and high-base comparisons, we remained steadfast in sharpening our supply chain edge and fortifying our foundation for the future.

As we enter 2026, we are already seeing a consistent upward trend. Our user momentum remains robust, and the growth trajectory of our general merchandise and the marketplace and marketing services has carried over seamlessly into the new year.

In the meantime, we have continued to strengthen our competitiveness advantages across product supply, price competitiveness, and fulfillment experience. This operational strength, combined with our technological advances, has disciplined ROI-focused approach to new businesses, gives us great confidence in our 2026 outlook.

We remain fully committed to driving sustainable, profitable growth, and creating long-term value for our shareholders. With this, I'll turn the call over to Ian.

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

In Q4, our total revenues grew by 2% year on year, and non-GAAP net profit came in at RMB 1.1 billion. While we faced short-term headwinds in electronics and home appliances categories, our overall performance remained resilient.

This stability was driven by our strategic focus on diversified growth drivers and profit streams, alongside disciplined investments in our new business. On a full-year basis, we achieved meaningful progress across our core retail segment, new businesses, and user growth and engagement, reinforcing our long-term sustainable development.

As we drive business development, we remain firmly committed to delivering shareholder returns. Our board has approved a total annual cash dividend of approximately US$1.4 billion for 2025, representing 0.5 US cents per ordinary share, or 1 US dollar per ADS.

Furthermore, we remained active in terms of share buybacks. In 2025, we repurchased about 6.3% of our outstanding shares for a total of US$3 billion.

All of the repurchased shares have been canceled. These efforts underscore our confidence in long-term development.

Now, let's go through our Q4 and full year 2025 financial performance. Total net revenues for Q4 increased by 2% year on year to RMB 352 billion.

On the full-year basis, total net revenues increased by 13% to RMB 1.3 trillion in 2025. Breaking down the mix, product revenues faced a 3% dip in Q4, mainly due to a high trade-in base, but grew by 10% for the full year.

By category, revenues of electronics and home appliances was down 12% in Q4, but up 7% for the full year. We have navigated this high-base challenge in close collaboration with our partners, and are encouraged by the improved momentum year to date in 2026.

On the other hand, general merchandise delivered robust results, with revenues up 12% in Q4 and 15% for the full year, led by sustained momentum in our supermarket, fashion, and healthcare categories throughout 2025. We believe this momentum will continue in 2026 as we further build our strength in these high-potential sectors.

Service revenues grew by 20% year on year in Q4, and 24% for the full year. Notably, marketplace and marketing revenues were up 15% and 19% for the quarter and full year, respectively.

A key driver of this was advertising revenues, which achieved double-digit growth across every quarter of 2025. We have enhanced advertising efficiency on our platform through leveraging technology, as well as our surging user traffic and engagement.

Looking into 2026, we expect marketplace and marketing revenues to maintain solid growth momentum, contributing to both top-line growth and profitability. Additionally, logistics and other service revenues grew by 24% year on year in Q4, and 27% for the full year, mainly driven by the incremental delivery returns revenues from food delivery business.

Now, let's turn to our segment performance. JD Retail revenues down 2% year on year in Q4, but up 11% for the full year of 2025.

The quarterly decline was primarily due to the high trade-in base for electronics and home appliances, which was largely mitigated by growth in general merchandise and advertising revenues. It's important to note that JD Retail is no longer a single-growth-driver business.

We have successfully built a diversified growth matrix that provides the business with multiple engines and strong resilience across different market conditions. Notably, JD Retail's gross margin increased by 1.1 percentage points year on year in both Q4 and full year 2025.

This consistent improvement has sustained across multiple years, despite changes in the competitive landscape, reflecting our enhanced supply chain strength and a favorable mix shift. JD Retail's non-GAAP operating income in Q4 was down 2% year on year, with operating margin holding steady at 3.2%.

The temporary pause in margin expansion this quarter was a strategic choice. We deployed supplementary subsidies for electronics and home appliances to offer competitive price and maintain market leadership, while increasing opex through targeted investment in R&D and employee compensation to fuel future growth.

On a full-year basis, JD Retail's non-GAAP operating income in 2025 grew by 25% year on year, with operating margin improved by 52 bps to 4.6%. Taking a long-term view, JD Retail's margin trajectory remains very healthy, climbing consistently from 2.7% in 2019, when we initiated this segment reporting, to 4.6% in 2025.

As we continue to emphasize high-margin advertising business and realize efficiency gains in categories such as supermarket, we remain on a steady and successful path toward our long-term margin targets. Moving to JD Logistics, its revenues grew by 22% year on year in Q4, and 19% for the full year, with incremental contribution from food delivery.

On the profitability front, JD Logistics non-GAAP operating income was down 17% year on year in 2025, but up 3% in Q4. JD Logistics remains committed to investing in elevating customer experience, expanding service capabilities in both domestic and overseas markets, and advancing AI and robotic technologies.

We view this as essential investments that pave the way for JDL's long-term sustainable growth in both top and bottom lines. New business revenues surged by 201% year on year in Q4, and 157% for the full year, driven by the rapid scaling of food delivery, Jingxi, and international business.

The segment non-GAAP operating loss narrowed to RMB 14.8 billion in Q4. This sequential improvement was primarily driven by the narrowing loss at JD Food Delivery, which achieved a notable reduction of about 20% in loss compared to the previous quarter, continuing its consistent trend of improvement since launch.

As we enter 2026, our priority for food delivery remains to drive healthy order volume while deepening synergies with our core retail business. We believe investment in food delivery has peaked in 2025, and will trend downward this year if market competition trends towards becoming more rational.

Beyond food delivery, we will continue to explore promising opportunities in Jingxi and international business, with financial discipline to ensure long-term value creation. Moving to our consolidated profit performance, group-level gross margin expanded by 32 bps year on year to 15.6% in Q4, and rose 18 bps to 16% for the full year.

This improvement was primarily driven by the consistent gross margin expansion of JD Retail. Consolidated non-GAAP net income attributable to ordinary shareholders was RMB 1.1 billion in Q4, and RMB 27 billion for the full year, representing a non-GAAP net margin of 0.3% and 2.1%, respectively.

Our near-term profitability mainly reflects our strategic investments in new business. We believe this initiatives will broaden the group's growth potential, driving both sustainable growth and margin improvement over the long term.

Our free cash flow for the full year of 2025 was RMB 6 billion, compared to RMB 44 billion last year. This primarily reflects cash outflows associated with the trade-in program, alongside fluctuations in operating income.

Our accounts receivable also recorded a sequential decline for two consecutive quarters, primarily due to the healthy recovery of the trade-in related receivables. We conclude the year with a robust liquidity position, with cash and cash equivalents, restricted cash, and short-term investments totaling RMB 225 billion as of year-end.

In summary, 2025 was a year of solid strategic progress. We achieved strong growth in our user base, accelerated core retail's top line with margin expansion, fueled by increasingly diversified drivers.

Furthermore, our new business are now on a healthy, promising operating track. We have built a more resilient ecosystem, where our business segments operated with increasing synergies.

Our focus remains clear. We will continue to focus on enhancing user experience, lowering costs, and improving operating efficiency to deliver strong performance across our retail business top line and profitability, while advancing our new business initiatives with a long-term perspective.

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

Thank you, Sandy and Ian. For the Q&A session, analysts are welcome to ask questions in Chinese or English.

Our management will answer your questions in Chinese, and will provide English translation for convenience purpose only. In case of any discrepancy, please refer to our management statement in the original language.

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

谢谢Sandy、Ian和Sean。那我两个提问，第一就是这个26年我们对京东零售的一个展望。那我这个电子产品在国补的这个影响下，下半年的基数就会回到常态了。那我们超市和日百这些还是非常稳健。那我们应该怎么看这个26年的京东零售的上半年和下半年的这个表现和增长的态势呢？然后第二点就想问这个外卖即时零售的，那UE，管理层能说一下我们的具体认为这个改善的路径会会是怎样吗？那面对这些其他的竞争对手，那我们是基于应该是供应链驱动的，那我们这个差异化的优势有哪些？然后我们怎么理解公司对这个业务的长期决心？和这个因为有这个近期的监管调查，反垄断调查那减少内卷，那对我们整个UE是不是也会有所帮助？那我翻译一下。Thank

you, management, for taking my question. First is on JD Retail 2026 growth, as electronics and appliances return to a more normalized base from the second half.

The general merchandise remains very healthy. How should we think about the growth rate for JD Retail in 2026 for the first half and second half and the differences given the base?

Second is on the on-demand and food delivery. How should we think about the path to further unit economics improvement compared with the bigger competitors?

How are we differentiating ourselves through supply chain, supply-chain-driven business models? How should we think about your determination and commitment to this business?

With the regulations and investigations on the food delivery industry, will that also contribute to the unit economics improvement? Thank you.

谢谢Ronald的问题。那首先呢，日百品类的健康增长趋势将会持续。那么25年全年呢，从品类上来看，那即使在有国补的前提下，我们的日百品类也取得了更快的增长，那也带动了我们零售大盘的增长。那大家也可以看到就是商超、时尚，还有健康等全品类都取得很好的增长。那在2026年呢，我们对日百品类还会持续保持健康增长非常有信心。那商超业务也在用户的渗透和细分品类的拓展上，仍然还有很广阔的提升空间。那时尚业务在2025年也已经完成了这个招商的布局，有更多更丰富的商家和品牌加入京东平台。然后另外呢，今年也会将进一步的释放我们的增长潜力。那健康品类也继续保持行业领先的地位和用户心智。那对于带电品类来说，在短期看呢，的确有高基数，还有原材料成本上涨的影响。那2026年政府的以旧换新的项目还会继续。但是呢，这个25年因为它的确从以旧换新的资金消耗上来看，上半年的消耗是比较多的，那下半年资金消耗相对比较少。但是26年政府各地政府在发放以旧换新补贴的这个资金和资质方面，相对对节奏会控制得更加平稳一些。所以从我们的角度看，上半年带电品类，包括家电、手机、电脑、数码这些产品依然会受到比较高基数的影响，会阶段性的承压。但是会比四季度25年的四季度的增速有明显的改善。那么下半年呢，将进一步恢复增速，那我们的市场份额依旧是稳健的。那此外呢，最近大家可能也看到，就是因为存储芯片的成本持续上涨，所以对手机、数码等电子产品的这个价格会有一定的影响。那这个会价格的上涨会在一定程度上抑制消费的抑制销量，然后但是客单价的提升呢，可能也会抵消部分销量下滑的影响。那我们也将会持续的强化我们的供应链能力，积极的做线下的布局，并且进一步加强服务体验，然后继续加强我们的用户心智来拉动销售。那同时呢，我们也看到AI和新技术其实带来了很多创新的机会和新品类的机会，那这也更加体现我们的供应链能力。虽然短期内这些创新的产品对我们现有的零售规模相对贡献是还没有那么明显，但是我们也看到了很多的机会和变化。那我们也将和品牌商、工商业一起去快速的反应，开发新的产品，通过快速应用新技术来满足用户不断变化的消费需求。那展望2026年呢，我们的增长驱动力会更加多元，日百品类也会保持健康增长，那广告这些服务业务也会保持快速健康的增长态势。那另外第二点就是预计家电、手机这些品类上半年仍然受到高基数的影响，下半下半年的增速会好于上半年。那整体上我们在保持市场份额和用户心智的同时，会不断地应用技术创新去推动行业的发展。那第三呢，就是叠加京东平台现有的平台流量、用户和频次这些表现的持续提升，那我们也有信心今年全年实现建实现健康的高质量增长。那么第二个外卖的问题接过来？Oh, sorry.

Thank you, Ronald. For your first question, first, our general merchandise category continues a very healthy, robust growth trajectory.

Looking back at 2025, the category achieved a growth faster even factoring in the impact of trade-in program on the other category. General merchandise category served as a primary growth engine for JD Retail.

Subcategory such as supermarket, fashion, and healthcare all achieved very strong result. Looking into 2026, we remain very confident in sustaining this healthy momentum.

Supermarket category still has significant untapped potential in terms of user penetration and expansion of the subcategory. Fashion category, we have completed many infrastructural work, such as merchant recruitment last year, and will further build the growth momentum on this very strong foundation.

Healthcare category, we expect to continue maintain its industry-leading position and user mindshare. Regarding electronics and home appliance category, it continued to face high-base effect in the short term.

In 2026, the government trade-in program will continue, but we have to bear in mind that the government-backed cash subsidy were consumed much faster and more in first half 2025 compared to the second half 2025. For our electronic home appliance category, including home appliance, cell phone, computers, and digital product, will remain affected by a high base in the first half this year.

However, we anticipate a sequential improvement in growth compared to the last quarter, fourth quarter of 2025, with more robust recovery expected in the second half 2026, and our market share remains very resilient. Furthermore, we have to bear in mind that memory chip cost keep rising.

Prices of mobile phone, digital products are expected to increase across the board. This may dampen consumption and affect sales volume, but at the same time, the rise of AOV will partially offset the impact of lower sales to a certain extent.

We'll continue to strengthen our user mindshare and drive sales by further reinforcing our supply chain capability, expanding our proactive offline presence, and enhancing overall service experience. Meanwhile, AI and emerging technologies are creating numerous opportunity for innovation and new product categories, further demonstrating our strength of supply chain.

While initial data contributions from this new AI-related product remain modest relative to the current scale of this category, but we see significant opportunities and shift, and we will work closely with brands, owners, and suppliers to respond rapidly and develop new product and meet evolving user needs through the swift application of new technology. Looking ahead to 2026, first, our growth drivers are becoming more diversified.

General merchandise category maintains a healthy growth trend, while service revenue, including advertising, will also sustain a rapid growth momentum. Second, we expect electronic and home appliance category to remain impacted by a high base in the first half this year, and with growth in the second half to accelerate and better than the first half.

Overall, we will maintain our market share and user mindshare. At the same time, we'll continuously leverage technological innovation to drive industry progress.

Third, supported by the steady improvement in JD's traffic, user base, and shopping frequency, we are confident in achieving healthy and high-quality growth for the full year 2026.

好的，那关于第二个外卖的问题。那25年呢，外卖业务刚刚起步，我们不仅在运营上，还在研发上都做了大量的投入。那26年继续加强能力建设，同时增加优质商家和产品供给，提升用户体验。同时呢，也会通过给商家提供服务的时候，开始会陆续产生收入，那实现业务有序的货币化。当然我们也会保持一个合理的货币化率。我们的目标呢，是在规模保持健康发展的同时，取得经营效率的持续提改善，也就是UE的改善。那预计26年外卖的总投入将会比25年有所降低。当然这个也会取决于市场竞争的态势。那首先呢，关于京东外卖的差异化优势，那还是第一个我们会坚持品质外卖的定位。那第二呢，是我们全职骑手的服务质量，给用户带来更好的体验。那第三呢，是生态系统的协同联动，体现我们整个京东平台的供应链优势。那么对于UE的提升也有明确的抓手。那第一个是更加多元的收入来源。那第二呢，是提升持续提升补贴效率，包括针对不同用户、地域的精细化的补贴。那第三是配送效率会随着单量的规模健康增长，也会持续提升。那值得关注的是我们的七鲜小厨业务。这是一个非常创新和差异化的业务模式，因为它与我们京东的供应链能力会深度整合，也是我们的即时零售也与我们的即时零售业务有很强的synergy。那截至到2月底，我们已经有超过50家七鲜小厨营业，那也欢迎各位投资者和分析师有机会可以体验一下。那长期定位上来看，外卖和即时零售是京东重要的长期战略方向。那我们会以长期的视角来推动业务的健康发展，那持续提升运营效率，带动盈利能力的改善。同时也会持续的释放外卖和核心零售业务的协同潜力，为公司的长期健康增长提供动力。那25年我们已经看到外卖为京东带来了新用户，和对当前的用户购频能够有大幅的提升。那26年我们也将继续看到交叉销售，以及广告收入增量贡献这些协同效应的持续释放。那么，刚刚还有一个问题是关于外卖监管。那首先我们支持并且欢迎监管来维护市场的公平竞争秩序，这有利于行业的健康发展。那第二呢，是我们会坚定不移的抵制行业内的内卷式恶性竞争。那我们也将通过供应链的模式去做创新，来推动品质外卖的高质量发展。

Regarding your second question, while our food delivery business remained in its early stage in 2025, we actively invested in both operation and R&D. Looking at this year 2026, we'll continue to strengthen our capabilities and onboard more quality merchants and products, and enhance user experience.

At the same time, we'll begin generating revenue through offering merchant services, achieving an orderly and rational monetization. Our goal is to sustain healthy scaling of this business while continuously improving operation efficiency.

We expect total investment in food delivery to decrease in 2026 compared to 2025. That also, of course, depends on the market competition dynamics.

How we do this: first, JD Food Delivery's differentiating advantage includes our commitment to our positioning in high-quality food delivery; second, the superior service quality driven by full-time riders; third, a synergistic integration across JD ecosystem leveraging on our strong supply chain advantage. In terms of improving UE, we have clear drivers.

First, more diversified revenue streams; second, continuous optimization of subsidy efficiency, including targeted subsidy tailored to different users and regions; third, enhanced delivery efficiency driven by economic scale that accompany healthy order volume growth. It's also worth noting that our 7FRESH Kitchen, which is a highly innovative and differentiated business model, is progressing well, is deeply integrated with JD's supply chain capability, leverage strong synergy with our on-demand retail business.

As of the end of February, 7FRESH Kitchen operational footprint has expanded to over 50 locations, and we welcome analysts and investors to try out. Regarding the long-term positioning, food delivery and on-demand retail is a long-term strategy for JD.

We'll drive our strategic progress with a long-term perspective, continuously enhancing operational efficiency to drive profitability improvement. At the same time, we'll continue to unlock potential synergy between food delivery and our core retail business, fueling the company's long-term healthy growth.

In 2025, our food delivery proved to be a strategic engine for user growth, effectively acquiring new users and significantly boosting purchase frequency across our platform. In 2026, we expect to see a further unlocking of synergies driven by robust cross-selling and incremental growth in advertising revenue.

Lastly, regarding the food delivery regulation, first, we support and welcome regulatory oversight that maintains a fair and competitive market environment, as it foster a healthy development of the industry. Second, we remain steadfast in our opposition in involutionary competition within the sector.

Third, we are committed to driving high-quality evolution of high-quality food delivery through continuous innovation in our supply chain model.

Thank you. Next question, please.

Hi. Sandy, Ian, Sean, 晚上好。谢谢接受谢谢接受我的提问。我有两个问题。第一个是关于集团的利润以及新业务的投入。在现在国内的宏观环境还是不确定，集团同时又在加速推进海外以及京喜的业务发展。我想请问一下管理层如何平衡集团的增长以及利润率呢？那预计26年新业务的投入的规模会在什么水平？还有这个投入对于集团的利润会产生什么影响呢？我第二个问题是关于海外的。管理层可以介绍一下这个Ceconomy的收购的新的进展以及时间的规划会是怎么样？以以及这个业务在并表以后，对于集团的财务的具体的影响，我们应该怎么思考？在这个战略布局的角度，公司如何定位这个Joybuy？预计将和这个京东零售、京东物流以及整个集团的供应体系供应链体系里面有什么具体的协同的效应？谢谢。我简单翻译一下。Thank

you, management, for taking my question. My first question is about the profitability and investment in new business.

Under the backdrop of macro uncertainties and yet accelerate investment in overseas and Jingxi business, how should management balance the growth as well as the profitability? What level of investment should we expect for 2026 for this new business, and how should it affect the group earnings?

My second question is about the overseas business. Can management share some updates on the Ceconomy acquisition progress, timeline, and the impact on financials post-consolidation?

From the strategic angle, how would Joybuy position, and what kind of benefit or synergy should we expect from the group level, i.e., JD Retail, Logistics, and the whole supply chain point of view? Thank you.

好，多谢Kenneth。关于投入和利润，那从长期的视角，我们对中国市场的前景和我们自身业务发展很有信心。那基于对商业机遇的洞察，我们坚持做一些长期的业务布局，那包括国际业务、下沉市场以及零售即时零售。那我们也坚定的在技术研发上做不断地完善基础能力，拓展服务边界，持续打开新的增长空间，那也将为集团长期深带新的增长动力。那京东的长期高个位数的利润率的目标是不会改变的。对核心零售利润，在26年核心零售利润可以实现健康的增长，那长期零售高个位数的利润率目标不变。那这个驱动包括自营能力带动商品毛利率的提升，广告等利润率较高的收入保持强劲的增长，那以及商超等品类的利润率持续改善。零售的规模效应会持续释放，经营效率随着技术的应用还会有进一步的提升空间。那在新业务投入上，外卖业务在刚过去的Q4亏损环比收窄接近20%，那我们也在保持规模健康增长的同时，随着经营效率的改善和收入的增长，整体的亏损率也在大幅地收窄。那展望2026年，我们将继续推动外卖规模的健康增长，同时释放与核心零售的协同价值。那如果行业的竞争趋理性，理性，我们今年外卖的投入的目标是比2025年下降。那国际业务会按节奏逐步增加投入，那规模可控，我们会保持严格的投入的纪律性。京喜业务在深耕下沉市场，聚焦白牌供给，特别在六线以下城市加大渗透率，效果显著，那拓宽了京东的用户的增量的边界。在供给也实现了和主站的差异化协同。今年的投入会持续小幅增加，那UE也会持续提升，实现业务健康可持续的增长。 Dear Kenneth,

regarding our thoughts on investment and profitability, from a long-term perspective, we are confident in the prospects of the China market and our own business development. Based on our views of the market opportunities, we have made long-term strategic investments, including in our international business, lower-tier markets, and on-demand retail.

At the same time, we have been committed to investing in R&D and the technologies. By enhancing our foundational capabilities and expanding our service scope, we believe we will continue to unlock new growth opportunities, which will also drive our long-term profitability.

JD's high-single-digit long-term margin target remains unchanged. In terms of JD Retail, we expect to see healthy growth of retail's profit in 2026, and our long-term target for JD Retail, which is high-single-digit profit margin, also remains unchanged.

Key growth drivers of this, including improvement in product sales gross margin brought by our enhancing supply chain capabilities, robust growth in high-margin business such as advertising, as well as continuous margin improvement in categories, including supermarket. JD Retail's scale benefit will also continue to play out, and its operating efficiency will have further room to improve as we increasingly adopt AI technology.

In terms of our investment in new businesses, for JD Food Delivery, its loss narrowed by nearly 20% quarter on quarter in Q4. We continued to maintain its healthy scale expansion while narrowing its loss ratio, with improved operating efficiency and revenue growth during the quarter.

Looking at 2026, we will continue to drive healthy scale growth of the food delivery business, and further unlock its synergies with core JD Retail. If the industry competition trends towards more rationality, we expect our investment in JD Food Delivery in 2026 to decline from the 2025 level.

For international business, we will gradually increase our investment on a controlled scale. We will maintain financial discipline in the investment.

For Jingxi, it has focused on lower-tier markets and non-branded product supply. It has made meaningful penetration improvement, particularly in tier-6 and lower cities.

This has helped expand our user growth boundaries, as it offers differentiated product offerings from our main app. We expect to increase our investment in Jingxi a little bit, but we believe its UE to continue to improve in 2026, delivering healthy and sustainable business growth.

关于海外业务，那Ceconomy的交易目前还在监管的审批过程当中，我们会及时和大家同步最新的交易进展。那Joybuy是京东在欧洲的全品类线上零售平台，那将于3月真实上线。海外整体的供应链能力的建设是个长期过程，那仍然需要时间和投入。从我们的试运行来看，Joybuy的用户体验反馈很好，尤其是在履约侧。那物流体验会是Joybuy的一个重要差异化优势。我们在欧洲自建物流履约网络，那Joy Express也已经上线，在英国、德国、法国、荷兰等国家的主要城市实现当日达、次日达的极致体验，那还可以提供送货上门等服务，欢迎大家来尝试。那协同上，在供应链能力的建设上，我们在助力中国品牌出海的同时，也希望能够将更多优质的欧洲品牌直接引入中国市场，进一步提升我们的全球供应链能力。那在物流，伴随Joybuy在欧洲展业，零售和物流在海外业务的协同能力将进一步提升，那Joybuy的竞争壁垒将更加的突出。在技术上，那京东长期在技术系统的积累可以进一步赋能我们的海外业务。

As to your question about Ceconomy deal, at current stage, it is under regulatory review. We will update the market in due course.

Joybuy is our full-category online retail platform in Europe. It is scheduled to officially launch in March.

Building overseas supply chain capabilities is a long-term initiative that takes time and continued efforts. Based on its trial operations, Joybuy has received very positive user feedback, especially on the fulfillment side.

Logistics experience will be a key differentiator for Joybuy. We're building our own delivery network in Europe, and Joy Express has been launched recently.

It provides same- and next-day delivery in major cities across the UK, Germany, France, and the Netherlands, along with services such as door-to-door delivery. We welcome all analysts and investors to try out our services.

As for synergies, first, on supply chain capabilities, while helping Chinese brands expand globally, we also aim to bring more high-quality European brands into the Chinese market, further strengthening our global supply chain capabilities. Second, on logistics, as Joybuy expands in Europe, the synergy between retail and logistics in our overseas business will be further strengthened, reinforcing Joybuy's competitive edge.

Third, on the technology front, JD's long-standing expertise and robust infrastructure will continue to empower our international business.

Next question, please, operator.

Hello. Thank you.

Good evening, 管理层晚上好。谢谢接受我的提问。有两个问题。第一个问题是关于这个零售的，是就考虑到今年其实零售的增长前景可能会放放缓哈，然后请请问管理层对京东这个日百品类的GMV和收入的增长有有何预期？然后在竞争加剧、消费放缓的这个背景下，京东将如何实现这个品类更快的增长呢？然后还有哪些具体的这个差异化的优势能够支撑这个品类的销售持续的增长？第二个问题是请管理层能够分享就是京东将如何规划和定位以应对并把握智能代理电商即将带来的这个挑战和机遇？我自己翻译一下。So

in light of the potential slower retail retail sales growth outlook this year, what is the growth rate management have in mind for your general merchandise GMV and revenue growth? How can JD continue to grow faster in this category amidst the competitions and also slower consumption?

What are the specific differentiated areas JD able to drive sales in this segment? Second question is that can management share your thoughts on how JD might prepare and position to embrace the upcoming threats and opportunity from the agentic commerce?

那首先是关于日百品类的问题。那刚刚我也提到，就是我们在26年依然预计日百品类保持健康的增长。那我们往回看的话，日百品类已经连续五个季度保持双位数增长，这个表现呢明显好于行业的大盘。那这也得益于我们持续建设的供应链能力和团队运营能力的显著提升，那我们也为我们后续的持续增长奠定了坚实的基础。那26年呢，我们是很有信心的，那这个持续增长的驱动力主要来自于几点。那第一个呢，就是市场潜力还是很大，这个整个市场规模，商超、时尚、健康规模都很大，所以我们也有很大的增长空间。那然后第二点呢，就是用户增长。那我们在外卖还有京喜这些业务带来了新的流量、用户和购频的增长。那同时我们也在加快内部的协同，尤其在商超这些品类上可以看到和外卖用户很好的交叉购买。那第三个呢，就是在持续加强的供应链能力和用户心智。那么从品类维度看，商超品类凭借我们京东独特的自营模式，可以有更好的用户体验和这个竞争力更强的价格。而时尚品类呢在25年，我们也在层能力，包括搜索推荐、数据产品上面有明显的提升，所以有越来越多的时候时尚品牌愿意和京东加大合作。同时我们也在应用AI技术在搜索推荐上面实现更精准的个性化匹配。那么差异化的优势，那首先还是京东自营模式的核心壁垒，包括更丰富的商品覆盖和严格把控的品质保障。那另外京东的物流也是我们的核心能力，可以有更好的优质的履约体验。然后从品牌的角度，那作为全国最稳定的日销平台，最好的品牌建商品全生命周期回报率最高的平台，那我们也为品牌商带来稳定高效的销售。

Thank you, Alicia, for your first question on the general merchandise category. We shared in the opening remark that the category is maintaining healthy momentum.

Looking back at our track record, the general merchandise category have maintained double-digit growth for the past five consecutive quarters, and notably outperforming the industry. This is driven by our evolving supply chain capability and a remarkable improvement in operation expertise.

This laid a solid foundation for continued growth in this category. We remain very confident in the healthy momentum of general merchandise category in 2026.

The sustained growth driver includes, first, huge market potential with ample room for growth in category such as supermarket, fashion, and healthcare; second, user growth, new business, including food delivery, Jingxi, have brought growth in traffic, user, and shopping frequency on JD platform, we are also accelerating internal synergy, and we have observed healthy cross-selling trend in category like supermarkets; third, continuously strengthen supply chain capability and user mindshare. From a category perspective, our supermarket category leverages JD unique 1P model to deliver an excellent user experience and, at the same time, competitive pricing.

Meanwhile, our fashion category has seen notable improvement in building underlying capability, including search and recommendation in 2025, as well as attracting more high-quality brands to deepen their collaboration with us. We are also applying AI to achieve more precise and personalized matching in search and recommendation.

In Q4 '25, we recorded double-digit year-on-year growth in both sports and outdoor and apparel revenues. In terms of our differentiated advantage in this category, first and foremost, the core moat of JD 1P model is the key.

This includes more diverse product selection, more competitive pricing, and more rigorous quality control. Second, leveraging on the core capability of JD Logistics, we offer high-quality fulfillment experience of faster, more accurate, and door-to-door delivery service.

Third, from the brand standpoint, JD is the most consistent daily sales platform. JD is the premier destination for brand building, and the platform that offer the highest return throughout a product entire lifecycle.

We provide brands with stable and efficient sales performance.

那接下来关于这个agentic commerce的问题，那我们相信AI和具体的和这个新的技术给我们带来的变革的机会远大于挑战。那首先呢，agentic commerce主要产生对前端流量入口的影响，那目前还处于早期。那我们认为不论是前端流量如何变化，其实零售业务的核心依旧还是用户体验、成本和效率。所以我们持续聚焦在提升零售业务的产品、价格和服务，因此京东与以供应链为核心的零售业务的优势会被放大，这个护城河也会更深。那么 同时呢，我们也在加大技术上的投入，在推动大模型应用的同时，保持开放的态度，与大量的领先的外部的大模型厂商都在合作和测试。那么第三点呢，是我们正在逐步打造成成为从供应链到消费者和消费者端到端的领先的 AI commerce公司。那因为我们有自营的业务，同时我们也有物流和履约，所以京东其实是这个AI技术和最新的这些机器人robotics技术应用场景最多的公司。那这个远不是一个平台型的电商公司可以比的。那也就意味着我们的业务有更多的环节和流程是可以被通过AI的应用来提升的。 那具体其实刚才在opening remarks其实讲过一部分，所以我就非常简单的再提一下。那么在需求端呢，有AI的驱动的搜索与推荐，可以重构重塑购物的链路。那么在供给端呢，我们也可以通过AI来帮助我们的采销在寻源、定价和库存管理上面持续的去提效，可以大量的替代人工的工作。

然后在物理物理世界的应用，比如说履约的自动化，其实想象的空间就更大，当然它也需要更长一点的时间来被广泛的应用。那么在售后服务，像客服这些也已经广泛的应用了AI技术。那最后呢，就是通过运营的持续发力，我们还这个可以推出来更多的创新产品，比如说在双十一期间，搭载我们Joy Inside的生态产品，包括AI玩具、机器人、硬件等产品，它的销量比618期间增长了超过20倍。所以我们正在通过AI来重塑京东整体的竞争优势，来持续的优化用户体验。那展望未来呢，我们也已经做好了充分的准备，来通过精准把握AI的战略机遇，确立在AI电商领域的领先地位。

For the second question, we see AI and agentic commerce as a greater opportunity for JD evolution than a challenge. First, agentic commerce is still in early stage, and mainly affects the front-end user traffic.

Our view is that no matter how traffic pattern change, the core retail business remain as user experience, cost, and efficiency. As we stay focused on optimizing product, price, and service, JD supply chain strength will yield even greater synergy, further widening our competitive moat in the agentic era.

At the same time, we are accelerating our technology investment. While driving the adoption of our in-house large language model, we remain committed to an open ecosystem, actively collaborating with industry-leading external AI LLM providers.

We are evolving into a leading technology e-commerce company spanning entire spectrum from supply chain to customer. As JD run a 1P business model with in-house fulfillment logistics service capability, the technology and AI application scenario is abundant.

This really differentiate us from platform business model. I'll briefly give some example.

On the demand side, we are reshaping the shopping journey and enhancing user experience through AI-driven search and recommendation. On the supply side, we leverage AI to continuously enhance operational efficiency in areas such as sourcing, pricing, inventory management, replacing manual labor.

We're also expanding our application in the physical world in terms of fulfillment automation and after-sales services. Beyond operation, we are unlocking new consumption potential as well through applying AI, such as Joy Inside, our AI agent for hardware.

As I mentioned before, the sales of Joy Inside integrated products surged 20-fold during Double 11 compared to the June 18th promotion. You can see we are very proactively leveraging AI to reshape our competitive advantage, and continue to optimize our user experience, at the same time, drive cost efficiency.

Looking ahead, we are very confident and believe we are well positioned to capture the strategic AI opportunity to solidify our leadership in AI-driven e-commerce.

Next question, please.

晚上好，谢谢管理层接受我的提问。我有两个问题。第一个问题是管理层可以分享一下我们回馈股东最新的情况？第二个问题是想请教管理层关于互联网平台公司的监管环境是否出现变化，然后我们应该怎么去解读？Good evening. Thanks, management, for taking my question.

I have two questions. First, can management share about the latest developments on shareholder return?

Second, can management talk about any changes to the regulatory environment for internet platform companies, and how should we think about it? Thank you.

好，谢谢。尽管去年集团做了重要且积极的长期战略投入，我们仍坚定的通过分红和回购合计回馈股东。包括我们宣布2025年度的持续分红，每ADS现金股利1美金，那维持分红金额总额总现金股利总额约为14亿美金。 这个显示了我们基于长期盈利和现金流的能力，那为股东提供稳定的现金回报的长期承诺。那同时我们在2025年回购的总金额为30亿，相当于2024年12月31 6.3%，而且已经把直接回购的股票全部注销。那我们会继续坚定的通过公司业务的健康发展、分红以及回购回馈股东。那同时我们也会持续关注业务规模、利润和现金流的健康的增长的趋势，为股东创造价值，分享京东长期的成功。

Thank you, Thomas. Despite the long-term strategic investment we made in 2025, we remain committed to shareholder return through both dividends and share buybacks.

We declared the 2025 annual cash dividend of US$1 per ADS, stable compared to last year. The total dividend amount is US$1.4 billion.

This underscores our commitment to delivering consistent cash returns to shareholders, based on our sustainable profitability and cash flow in the long term. In addition, we repurchased US$3 billion worth of shares in 2025, representing 6.3% of total outstanding shares as of the end of 2024.

All the repurchased shares have been canceled. We remain firmly committed to shareholder returns through healthy business development, dividends, and share buybacks.

At the same time, we will remain focused on the healthy growth of our business scale, profitability, and cash flow, and make strategic investments for the long term, creating value and sharing JD's long-term success with our shareholders. 那我来回答监管这个问题。那首先，监管层持续推进平台经济规范化发展，是有利于行业健康发展的，那我们也非常欢迎。那么，政府支持企业合规发展这个态度没有变化，那严格的监管也不是约束，而是推动行业高质量发展的契机。那京东也始终将合规经营作为企业发展的前提，无论是反垄断、税务规范，还是避免行业内卷，这都跟我们长期以来的合规经营理念是高度契合的。所以，在这个监管常态化的环境下，劣币驱逐良币，合规的企业会得到更加公平的发展机会。因此长期看，我们合规、可持续的经营模式的优势将逐步放大。

I'll take the last question. Regulators continuously promote the healthy development of the platform economy, ensuring sector's long-term sustainability.

We welcome regulatory guidance. The government's commitment is to support compliant corporate development remain unchanged.

We believe rigorous oversight is not a constraint, but rather a catalyst for driving healthy, high-quality industry growth. JD has always prioritized compliant operation as the cornerstone of our business.

Whether it is anti-monopoly measures, tax standardization, or prevention of involutionary competition, this effort align perfectly with JD long-standing philosophy of compliance. Under a normalized regulatory environment, fairer growth opportunity are created as we prevent bad money drives out good.

As a result, over the long term, the advantage of JD compliant, sustainable business model will become increasingly prominent. Thank you.

Thank you for joining us on the call today, and thanks for all your questions. If you have further questions, please contact me and the IR team.

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