Financial Overview - JD's total revenue for Q1 2024 reached RMB 2,430 million, showing a year-on-year growth of 16%, surpassing the growth of physical goods retail and online sales [2][3] - Non-GAAP net profit increased by 43% to RMB 128 million, with a net profit margin of 4.2% [3] - Gross profit margin has improved for 12 consecutive quarters [3] Business Segments - JD Retail revenue was RMB 2,124 million, with an operating profit margin of 4.6% [2] - JD Logistics revenue reached RMB 367 million, with a year-on-year growth of 34.3% [2] - The performance of the department store category is expected to be strong throughout the year [4] User Engagement - Active customer numbers and shopping frequency saw double-digit growth in Q1, with some business segments experiencing an increase in ARPU [4] - The implementation of AI and optimization of after-sales services are expected to enhance user engagement and drive growth [4] Pricing Strategy - The low-price strategy has shown significant results, with improvements in NPS (Net Promoter Score) and price competitiveness, particularly in lower-tier markets [5] - The expansion of the 3P ecosystem has led to a strong increase in third-party order volume and buyer numbers, contributing to a 16% year-on-year growth in platform business and marketing revenue [6] New Business Initiatives - The food delivery service has been identified as a key growth area, with nearly 20 million daily orders, leveraging JD's system and fulfillment advantages [7] - A RMB 200 billion "export to domestic sales" initiative was launched to enhance the supply of quality products on the platform [7] - AI and automation technologies are being integrated into the ecosystem to optimize user demand matching and improve fulfillment efficiency [8]

Financial Data and Key Metrics Changes - Total revenues increased by 16% year on year, with non-GAAP net profit rising by 43% to RMB 12.8 billion, and net margin expanding by 82 basis points to 4.2% [5][21][30] - Gross margin improved by 60 basis points year on year to 15.9%, marking twelve consecutive quarters of year-on-year improvement [21][29] Business Line Data and Key Metrics Changes - Electronics and home appliances revenue grew by 17% year on year, while general merchandise revenue increased by 15% [22][23] - Supermarket category revenue growth reached double digits for the fifth consecutive quarter, with strong performance during the Chinese Lunar New Year [9][10] - Fashion category also saw accelerated revenue growth, driven by enhanced brand assortment and user recognition [10][11] Market Data and Key Metrics Changes - JD's quarterly active customer number increased by double digits year on year, with notable growth in user shopping frequency [11][12] - Growth in order volume and user base in lower-tier markets outpaced that of higher-tier markets [13] Company Strategy and Development Direction - The company aims to enhance supply chain capabilities and solidify market leadership in electronics and home appliances while tapping into the general merchandise market [5][7] - JD is expanding into on-demand retail, particularly food delivery, which is integrated into its existing retail ecosystem [14][15] - The company launched a RMB 200 billion export to domestic sales program to enrich product supplies on its platform [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in long-term growth driven by structural opportunities in the industry, supported by government consumption stimulus policies [8][19] - The company is focused on sustainable long-term growth and maintaining flexibility to adapt to industry dynamics [19][31] Other Important Information - JD completed annual cash dividend payouts of USD 1.44 billion and repurchased approximately 80.7 million Class A ordinary shares, representing 2.8% of shares outstanding [21][79] - The company is actively leveraging AI and automation technologies across its ecosystem to enhance operational efficiency and user experience [18][60] Q&A Session Summary Question: What are the medium-term expectations for the food delivery initiative? - Management highlighted that food delivery is a natural extension of JD's core retail business, with significant demand and synergies expected to drive growth [38][40] Question: How is JD Retail sustaining momentum in apparel and general merchandise? - Management noted broad-based growth in general merchandise, with efforts focused on enhancing operational capabilities and user experience [45][47] Question: Can management share key metrics for the food delivery business? - Management reported strong user retention and cross-selling opportunities emerging, with over 1 million merchants onboarded [51][55] Question: How is AI being applied across JD's business segments? - AI is being utilized to enhance advertising effectiveness, improve operational efficiency, and optimize supply chain management [60][63]

Financial Data and Key Metrics Changes - Total revenues increased by 16% year on year, with non-GAAP net profit rising by 43% to RMB 12.8 billion, and net margin expanding by 82 basis points to 4.2% [5][21][22] - Gross margin improved by 60 basis points year on year to 15.9%, marking twelve consecutive quarters of year-on-year improvement [22][30] Business Line Data and Key Metrics Changes - Electronics and home appliances revenue grew by 17% year on year, while general merchandise revenue increased by 15% [23][24] - Supermarket category revenue growth reached double digits for the fifth consecutive quarter, with strong performance during the Chinese Lunar New Year [8][24] - Fashion category also saw accelerated revenue growth, driven by enhanced brand assortment and user recognition [10][49] Market Data and Key Metrics Changes - JD.com outpaced total retail sales and online retail sales of physical goods in the same quarter, indicating strong market leadership [5] - Growth in lower-tier markets continued to outpace that of higher-tier markets, reflecting a shift in consumer behavior [13][14] Company Strategy and Development Direction - The company is focused on enhancing supply chain capabilities and user experience, with a strategic emphasis on on-demand retail and food delivery as key growth areas [15][19] - JD.com launched a RMB 200 billion export to domestic sales program to expand domestic market presence and enrich product offerings [17] - The company aims to leverage AI and automation technologies to improve operational efficiency and user experience across its ecosystem [19][63] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential driven by government consumption stimulus policies and technological innovations [7][20] - The company is optimistic about sustaining healthy growth in user engagement and transaction frequency, particularly in the core retail and new business segments [11][49] Other Important Information - JD.com completed annual cash dividend payouts of USD 1.44 billion or USD 1 per ADS, and repurchased 80.7 million Class A ordinary shares, representing 2.8% of shares outstanding [22][78] - The company is committed to long-term shareholder returns while focusing on sustainable growth [78][79] Q&A Session Summary Question: What are the medium-term expectations for the food delivery initiative and the industry landscape? - Management highlighted that food delivery is a natural extension of JD's core retail business, with significant demand and potential for growth in the market [40][41] Question: How is JD Retail sustaining momentum in apparel and general merchandise? - Management noted that operational enhancements and user experience improvements have driven double-digit growth in general merchandise, with plans to expand brand selection and merchant base [46][49]