Financial Data and Key Metrics Changes - The Prada Group reported net revenues of EUR 5.7 billion, an increase of 9% compared to fiscal year 2024 at constant FX, and an organic growth of 8% year-over-year, marking the fifth consecutive year of growth at the group level [18][19] - Retail sales totaled EUR 5.1 billion, up 8% organically versus fiscal year 2024, and up 28% versus fiscal year 2023 at constant FX [19] - EBIT adjusted reached EUR 1.32 billion with a margin of 23.2%, including the dilutive impact of Versace [19][25] - Net income increased by 2% to EUR 852 million compared to fiscal year 2024 [25] Business Line Data and Key Metrics Changes - Prada brand closed the year at -1%, with Q4 showing sequential improvement, particularly supported by Mainland China, Korea, Japan, and the Americas [21] - Miu Miu retail sales grew by 35% to reach EUR 1.6 billion, with Q4 sales up by 20% against a high comp of +84% in 2024 [22][23] - Church's brand continued on a positive trajectory driven by like-for-like sales [23] Market Data and Key Metrics Changes - Asia Pacific region showed growth of +11%, +10% organic, with Q4 performance in line with Q3 [24] - Europe reported a growth of 5% over the year, with softer trends in the second half due to strong multi-year comps and lower tourism [24] - The Americas experienced consistent double-digit growth, with sales up 18%, +15% organic, driven by local demand [24] - Japan delivered growth of +3%, with improvements in Q4 driven by solid local demand and increased traveler flows [24] Company Strategy and Development Direction - The company is focused on enhancing digital capabilities and hospitality standards, investing in strategic digital plans and AI tools to improve product value and customer engagement [5][6] - The acquisition of Versace is seen as a new chapter, with plans for creative leadership changes and a focus on quality and full-price sales [28][30] - The company aims to maintain a steady profitability while investing in brand desirability and awareness [6][19] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging operating environment in 2025 but expressed confidence in the company's ability to navigate through it, expecting solid performance in 2026 [3][9] - The first half of 2026 is anticipated to be more challenging for Prada, with expectations of single-digit growth, while Miu Miu is expected to achieve double-digit growth if conditions allow [9][44] - Management emphasized the importance of agility and efficiency in the current market landscape [40] Other Important Information - The company completed the acquisition of Versace on December 2, 2025, consolidating one month of contribution from the brand into its financials [18] - CapEx for fiscal year 2025 was EUR 620 million, with continued investments in retail and technology [26] - The board proposed a dividend per share of EUR 0.166, maintaining a stable payout ratio of 50% [27] Q&A Session Summary Question: Expectations for Prada's growth in 2026 - Management refrained from providing specific guidance but indicated that if conditions are favorable, double-digit growth for Miu Miu is possible [44][45] Question: Versace's team and store rationalization - The team is a hybrid of internal and external hires, with a focus on full-price retail and rationalization of the outlet channel [50][51] Question: Revenue contraction for Versace - Management confirmed expectations for mid-single-digit contraction at constant FX for Versace, with efforts to limit operating losses to a double-digit figure [59][60] Question: Store openings and closures - Prada expects to close more stores than it opens in 2026, while Miu Miu plans to add 5-10 stores [80] Question: Prada brand cluster trends - Significant improvement in the Chinese cluster, while European demand remained resilient, and North American sales showed positive growth [86]

Financial Data and Key Metrics Changes - Total revenues for Q4 increased by 2% year-on-year to RMB 352 billion, while full-year revenues grew by 13% to RMB 1.3 trillion [20] - Non-GAAP net profit for Q4 was RMB 1.1 billion, with a full-year net income of RMB 27 billion, representing a non-GAAP net margin of 0.3% and 2.1% respectively [27] - JD Retail's operating margin improved by 52 basis points to 4.6% for the full year, despite a quarterly decline in revenue [24] Business Line Data and Key Metrics Changes - JD Retail revenues decreased by 2% year-on-year in Q4 but increased by 11% for the full year [22] - General merchandise revenue grew by 12.1% in Q4 and 15.3% for the full year, driven by strong performance in supermarkets and fashion categories [9][21] - Advertising revenues increased by 15% in Q4 and 19% for the full year, supported by enhanced traffic allocation and AI-driven efficiencies [10][21] Market Data and Key Metrics Changes - Monthly active customers grew by 30% year-on-year in Q4, surpassing 700 million annual active customers [6] - User shopping frequency surged by over 40% year-on-year for the full year, indicating strong engagement across all user groups [7] - JD Food Delivery's active merchants increased by over 270%, contributing to user growth and engagement [12] Company Strategy and Development Direction - The company is focusing on leveraging supply chain advantages to enhance user experience and operational efficiency, while investing in R&D and price competitiveness [4][6] - Strategic initiatives include expanding into new markets and enhancing capabilities in AI and logistics to drive long-term growth [14][15] - The company aims to maintain a diversified growth matrix, reducing reliance on any single business line [22][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining growth momentum in general merchandise and advertising revenues, despite short-term challenges in electronics and home appliances [8][17] - The company anticipates a recovery in the electronics category in the second half of 2026, supported by government trade-in programs [34] - Management emphasized the importance of compliance with regulatory standards as a catalyst for healthy industry growth [65][66] Other Important Information - The company declared a total annual cash dividend of approximately $1.4 billion for 2025, representing $0.005 per ordinary share [18] - Share buybacks totaled about 6.3% of outstanding shares for a total of $3 billion, reflecting confidence in long-term development [19] Q&A Session Summary Question: JD Retail 2026 growth outlook - Management expects general merchandise to maintain healthy growth, with electronics facing a high base effect in the first half of 2026 but improving in the second half [33][34] Question: Path to unit economics improvement in food delivery - Management highlighted JD Food Delivery's commitment to high-quality service and operational efficiency, with expectations for reduced investment in 2026 compared to 2025 [38][39] Question: Profitability and investment in new business - Management stated that long-term strategic investments will continue, with a focus on balancing growth and profitability, particularly in international and lower-tier markets [45][46] Question: Updates on CECONOMY acquisition - The CECONOMY deal is currently under regulatory review, with updates to be provided in due course [49]

Financial Data and Key Metrics Changes - In Q4 2025, total revenues grew by 2% year-on-year to RMB 352 billion, while full-year revenues increased by 13% to RMB 1.3 trillion [20] - Non-GAAP net profit for Q4 was RMB 1.1 billion, with a full-year net profit of RMB 27 billion, representing a non-GAAP net margin of 0.3% and 2.1% respectively [27] - JD Retail's operating margin improved by 52 basis points to 4.6% for the full year, despite a quarterly decline in revenue [24][23] Business Line Data and Key Metrics Changes - JD Retail revenues decreased by 2% year-on-year in Q4 but increased by 11% for the full year [22] - General merchandise revenue grew by 12.1% year-on-year in Q4 and 15.3% for the full year, driven by strong performance in supermarkets and fashion categories [9][20] - Advertising revenues grew by 15% in Q4 and 18.9% for the full year, supported by enhanced traffic allocation and AI-driven algorithms [10][20] Market Data and Key Metrics Changes - Monthly active customers grew by 30% year-on-year in Q4, exceeding 700 million annual active customers [6] - User shopping frequency surged by over 40% year-on-year for the full year, indicating strong engagement across all user groups [7] - JD Food Delivery's total active merchants increased by over 270%, contributing to user growth and engagement [12] Company Strategy and Development Direction - The company is focusing on leveraging supply chain capabilities to enhance user experience and operational efficiency, which is seen as a backbone for both core retail and new business initiatives [6][4] - Strategic investments are being made in R&D and talent acquisition to secure long-term competitive advantages, particularly in electronics and home appliances [4][5] - The company aims to expand its total addressable market (TAM) through promising new business initiatives, including JD Food Delivery and international expansion [5][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining growth momentum in 2026, particularly in general merchandise and advertising revenues, despite facing short-term headwinds in electronics and home appliances [8][17] - The company anticipates a recovery in the electronics category in the second half of 2026, supported by government trade-in programs [33] - Management emphasized the importance of AI in driving operational efficiency and enhancing user experience, positioning the company for future growth [14][52] Other Important Information - The board approved a total annual cash dividend of approximately US $1.4 billion for 2025, representing $0.005 per ordinary share [18] - The company repurchased about 6.3% of its outstanding shares for a total of $3 billion in 2025, reflecting confidence in long-term development [19] - JD Logistics revenues grew by 22% year-on-year in Q4, driven by contributions from food delivery [25] Q&A Session Summary Question: JD Retail growth outlook for 2026 - Management expects general merchandise to maintain robust growth, with sequential improvement anticipated in electronics and home appliances in the second half of 2026 [32] Question: Path to unit economics improvement in food delivery - Management highlighted JD Food Delivery's commitment to high-quality service and operational efficiency, with expectations for reduced investment in 2026 compared to 2025 [34] Question: Profitability and investment in new business - Management remains confident in long-term market prospects and plans to balance growth with profitability through strategic investments in new business areas [39] Question: Updates on Ceconomy acquisition - The Ceconomy deal is currently under regulatory review, with updates to be provided in due course [42] Question: Shareholder returns and regulatory environment - Management reiterated commitment to shareholder returns through dividends and share buybacks, while welcoming regulatory guidance to ensure sustainable growth [56][60]

Financial Data and Key Metrics Changes - Total net revenues for Q4 increased by 2% year-on-year to RMB 352 billion, while full-year revenues grew by 13% to RMB 1.3 trillion [20] - Non-GAAP net profit for Q4 was RMB 1.1 billion, reflecting resilience despite short-term headwinds in electronics and home appliances [19] - JD Retail's operating margin improved by 52 basis points to 4.6% for the full year, with a consistent growth trajectory from 2.7% in 2019 [24] Business Line Data and Key Metrics Changes - JD Retail revenues decreased by 2% year-on-year in Q4 but increased by 11% for the full year, driven by growth in general merchandise and advertising revenues [22] - General merchandise revenue grew by 12.1% year-on-year in Q4 and 15.3% for the full year, with strong performance in supermarkets and fashion categories [10][21] - Advertising revenues increased by 15% in Q4 and 19% for the full year, supported by enhanced traffic allocation and AI-driven algorithms [11][21] Market Data and Key Metrics Changes - Monthly active customers grew by 30% year-on-year in Q4, surpassing 700 million annual active customers [6] - User shopping frequency surged by over 40% year-on-year for the full year, indicating strong engagement across all user groups [8] - JD Food Delivery maintained steady order momentum while reducing total investment by nearly 20% quarter-on-quarter [12] Company Strategy and Development Direction - The company is focused on leveraging supply chain capabilities to enhance user experience and operational efficiency, positioning itself for sustainable growth [6][14] - Strategic investments in R&D and technology are aimed at maintaining competitive advantages and driving future growth [14][41] - The company is committed to expanding its presence in new markets and business initiatives, including JD Food Delivery and Joybuy in Europe [13][43] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving healthy growth in 2026, driven by robust user engagement and improved operational efficiency [34][40] - The company anticipates a recovery in the electronics and home appliances category in the second half of 2026, despite facing a high base effect in the first half [32] - Regulatory oversight is viewed as a catalyst for healthy industry growth, with the company committed to compliant operations [58] Other Important Information - The board approved a total annual cash dividend of approximately US $1.4 billion for 2025, representing $0.005 per ordinary share [19] - The company repurchased about 6.3% of its outstanding shares for a total of $3 billion in 2025, reflecting confidence in long-term development [20] Q&A Session Questions and Answers Question: What is the growth outlook for JD Retail in 2026? - Management expects healthy growth in JD Retail, particularly in general merchandise, with a robust recovery anticipated in the second half of 2026 [32] Question: How will JD Food Delivery improve unit economics compared to competitors? - JD Food Delivery aims to enhance operational efficiency and revenue generation while leveraging supply chain advantages and maintaining a focus on high-quality service [35]

Financial Data and Key Metrics Changes - Revenue increased by 17% year-over-year, reaching RMB 11.56 billion, surpassing RMB 10 billion for the first time [31] - Gross margin improved from 47% to 56% in 2025, indicating a significant increase in gross profit [31] - Adjusted net profit reached RMB 1.43 billion, a year-on-year increase of 33% [31] Business Line Data and Key Metrics Changes - Auto financing transaction volume reached RMB 75.1 billion, a 9% increase year-over-year [11] - Used car segment grew rapidly with a year-on-year growth rate of 38%, reaching 537,000 units financed [13] - Fintech business achieved a financing scale of RMB 40.3 billion, a year-on-year increase of 91% [15] Market Data and Key Metrics Changes - New passenger vehicle sales in China reached 30.1 million units in 2025, up 9.2% year-over-year [5] - Used passenger car transactions reached 15.74 million units, a year-on-year increase of 0.4% [5] - The Chinese auto finance market is projected to reach RMB 2.9 trillion in 2025, with expectations to surpass RMB 5 trillion by 2029 [8] Company Strategy and Development Direction - The company focuses on driving financial innovation through technology, maintaining partnerships with over 100 financial institutions [4] - A strategic emphasis on the used car segment and fintech services is evident, with significant growth in these areas [11][15] - The company aims to consolidate its leadership in the auto finance industry while expanding its international presence, particularly in Southeast Asia [39] Management's Comments on Operating Environment and Future Outlook - Management noted that the auto market is entering a new stage driven by intelligence and electrification, with expectations for steady growth [7] - The company anticipates that the shift towards healthy competition will drive sustainable development in the industry [8] - Management expressed confidence in the company's ability to adapt to market changes and optimize its product offerings [66] Other Important Information - The company was included in the newly launched HKEX Technology 100 Index in December 2025, reflecting its innovation and growth potential [5] - The launch of the self-developed AI model, XingMM-AM1, aims to enhance automation and intelligence in the auto finance sector [12][24] Q&A Session Summary Question: Reason for bond to equity transition for subsidiary Yusheng and internationalization strategy - Management explained that the transition aims to increase asset liquidity and that the company plans to expand its presence in Southeast Asia, with specific targets for markets like Malaysia and Indonesia [48][49] Question: Market landscape and challenges with zero interest products - Management acknowledged the presence of zero interest products but emphasized that their focus remains on risk management and that such products pose challenges for OEMs regarding asset quality [57][58] Question: Future trends for fintech and used car business - Management indicated that the used car segment is expected to grow in proportion, and they will adapt strategies based on market conditions to ensure profitability and stability [64][66]

Financial Data and Key Metrics Changes - Revenue increased by 17% year-over-year, reaching RMB 11.56 billion, surpassing RMB 10 billion for the first time [31] - Gross margin improved from 47% to 56% in 2025, indicating a significant increase in gross profit [31] - Adjusted net profit rose by 33% year-over-year to RMB 1.43 billion [31] Business Line Data and Key Metrics Changes - Auto financing transaction volume reached RMB 75.1 billion, a 9% increase [11] - Used car segment grew by 38% year-over-year, with transaction volume reaching 537,000 units and financing amounting to RMB 42.1 billion [12][13] - Fintech business financing scale reached RMB 40.3 billion, a year-on-year increase of 91% [15] Market Data and Key Metrics Changes - New passenger vehicle sales in China reached 30.1 million units, up 9.2% year-over-year [5] - Used passenger car transactions reached 15.74 million units, a 0.4% increase [5] - New energy vehicles (NEVs) saw a 17.5% year-over-year growth, with financing for new NEVs accounting for 55% of total new car financing volume [14][15] Company Strategy and Development Direction - The company focuses on driving financial innovation through technology, maintaining partnerships with over 100 financial institutions [4] - Yixin aims to consolidate its leadership in the auto finance industry while expanding its presence in Southeast Asia and other international markets [39][41] - The company is committed to building a full-length auto finance AI agent to enhance operational efficiency and risk management [42][45] Management's Comments on Operating Environment and Future Outlook - Management noted that the auto finance market is expected to reach RMB 2.9 trillion in 2025, with projections to surpass RMB 5 trillion by 2029 [8] - The company anticipates steady growth in the market as policies supporting auto consumption take effect [7] - Management emphasized the importance of adapting to market changes and optimizing product offerings based on profitability [66] Other Important Information - Yixin was included in the HCEX Technology 100 Index in December 2025, reflecting its innovation and growth potential [5] - The company launched the XingMM-AM1 AI model to enhance automation and intelligence in the auto finance sector [12][24] Q&A Session Summary Question: Reason for bond to equity transition for subsidiary Yusheng and internationalization strategy - Management explained that the transition aims to increase asset liquidity and that Yixin is focusing on expanding in Southeast Asia, with plans for future growth in markets like Malaysia and Indonesia [48][49][51] Question: Market landscape regarding zero interest products and future commission rate trends - Management acknowledged the presence of zero interest products but stated that it does not significantly impact their business, emphasizing their focus on risk management [57][58] - They noted that commission rates are expected to decrease as high-interest products become less common [60] Question: Proportion of fintech and used car business in total business and risk control methods - Management indicated that the used car segment is expected to grow in proportion, but the overall strategy will adapt based on market conditions [64][66] - They highlighted their ability to accurately assess delinquency rates and adjust pricing to maintain asset stability [67]

Financial Data and Key Metrics Changes - Revenue increased by 17% year-over-year, reaching RMB 11.56 billion, surpassing RMB 10 billion for the first time [24] - Gross margin improved from 47% to 56% in 2025, indicating a significant increase in gross profit [24] - Adjusted net profit reached RMB 1.43 billion, a year-on-year increase of 33% [24][29] Business Line Data and Key Metrics Changes - Auto financing transaction volume reached RMB 75.1 billion, a 9% increase year-over-year [9] - Used car segment grew rapidly with a year-on-year growth rate of 38%, reaching 537,000 units financed [11] - Fintech business achieved a financing scale of RMB 40.3 billion, a year-on-year increase of 91% [12] Market Data and Key Metrics Changes - New passenger vehicle sales in China reached 30.1 million units in 2025, up 9.2% year-over-year [4] - Used passenger car transactions reached 15.74 million units, a year-on-year increase of 0.4% [4] - New energy vehicles (NEVs) maintained rapid growth, rising 17.5% year-over-year, with a penetration rate exceeding 50% [5] Company Strategy and Development Direction - The company focuses on driving financial innovation through technology, maintaining partnerships with over 100 financial institutions [3] - Yixin aims to consolidate its leadership in the auto finance industry by leveraging technology and deepening partnerships [8] - The company is expanding its international presence, particularly in Southeast Asia, with plans to enter markets like Malaysia and Indonesia [36] Management's Comments on Operating Environment and Future Outlook - Management noted that the auto finance market in China is expected to reach RMB 2.9 trillion in 2025, with projections to surpass RMB 5 trillion by 2029 [6] - The company anticipates steady growth in the market as policies supporting auto consumption take effect [5] - Management emphasized the importance of adapting to market changes and maintaining a focus on high-quality customer service [50] Other Important Information - Yixin was included in the HCEX Technology 100 Index in December 2025, reflecting its innovation and growth potential [4] - The company launched its first self-developed AI model, XingMM-AM1, aimed at automating the auto finance sector [10] - The company has established an ESG committee to promote corporate governance and social responsibility [23] Q&A Session Summary Question: Reason for bond to equity transition for subsidiary Yusheng - Management explained that the transition aims to increase asset liquidity, as convertible bonds have weaker liquidity compared to equities [42][43] Question: Current progress and future plans for internationalization - Management highlighted ongoing expansion in Southeast Asia, with specific plans for markets like Malaysia and Indonesia [44][45] Question: Market landscape and challenges with zero interest products - Management noted that zero interest products are promotional and do not significantly impact their business, focusing instead on risk management [47][48] Question: Future trends for fintech and used car business - Management indicated that used car sales will increase in proportion, but emphasized the need for a comprehensive strategy to adapt to market conditions [51][53]

Financial Data and Key Metrics Changes - In 2025, the company's revenue reached RMB 73.4 billion, representing a year-over-year increase of 26.3% [7][18] - Non-IFRS profit totaled RMB 6.5 billion, up 36.3% year-over-year, with a non-IFRS profit margin of 8.9% [8][25] - The fourth quarter revenue was RMB 21 billion, reflecting a year-over-year increase of 27.4% [7][18] Business Line Data and Key Metrics Changes - Direct sales revenue reached RMB 16.9 billion in 2025, up 24.8% year-over-year, accounting for 82.9% of total revenue [19] - Service revenue increased to RMB 12.6 billion, up 34.1% year-over-year, representing 17.1% of total revenue [19] - The company introduced over 100 new drugs in 2025, a significant increase from 13 in 2024 [8] Market Data and Key Metrics Changes - The annual active user accounts reached approximately 220 million, with an addition of 34 million compared to the previous year [18] - The company established over 300 self-operated pharmacies nationwide, integrating them with on-demand retail services [12] Company Strategy and Development Direction - The company aims to deepen its presence in key healthcare segments through an omnichannel approach and AI-powered healthcare services [6] - Future growth will focus on expanding partnerships with pharmaceutical companies and enhancing the user experience through innovative health solutions [9][15] - The company plans to leverage its supply chain strengths and direct sales capabilities to maintain leadership in the healthcare retail market [15] Management Comments on Operating Environment and Future Outlook - The management expressed confidence in the company's growth potential, citing a large market size of RMB 3 trillion-4 trillion for the pharmaceutical sector [30] - The company is committed to enhancing user experiences and improving cost efficiency through AI technologies [26] - Management highlighted the importance of a steady and cautious approach to offline business expansion, emphasizing the integration of AI in healthcare services [49] Other Important Information - The company achieved a growth margin of 24.8% in 2025, up 1.9 percentage points year-over-year [22] - The fulfillment expense ratio was 10.4%, and the selling and marketing expense ratio remained flat at 5.2% [23] - Cash flow from operating activities reached RMB 10.2 billion for the full year [25] Q&A Session Summary Question: Near term and three-year middle term prospects - Management indicated that the pharmaceutical sector, health products, and medical devices present significant growth opportunities, with plans to deepen engagement with pharmaceutical companies and enhance product offerings [29][30][34] Question: Competition landscape - Management expressed confidence in the company's ability to stand out among competitors by leveraging supply chain management and maintaining high product quality [40][41] Question: Plans for brick-and-mortar stores and M&A - Management clarified that there are no plans for large-scale M&A but emphasized the importance of offline practices and the integration of pharmacies to enhance user experiences [43][44][46]

Financial Data and Key Metrics Changes - In 2025, the company's revenue reached RMB 73.4 billion, representing a year-over-year increase of 26.3% [7][18] - Non-IFRS profit totaled RMB 6.5 billion, up 36.3% year-over-year, with a non-IFRS profit margin of 8.9% [8][25] - The fourth quarter revenue was RMB 21 billion, reflecting a year-over-year increase of 27.4% [7][18] Business Line Data and Key Metrics Changes - Direct sales revenue reached RMB 16.9 billion in 2025, a year-over-year increase of 24.8%, accounting for 82.9% of total revenue [19] - Service revenue was RMB 12.6 billion, up 34.1% year-over-year, representing 17.1% of total revenue [19] - The company introduced over 100 new drugs during the year, a significant increase from 30 in 2024 [8] Market Data and Key Metrics Changes - The annual active user accounts reached approximately 200 million, with an addition of 34 million compared to the previous year [18] - The company established more than 300 self-operated pharmacies nationwide, integrating them with on-demand retail services [12] Company Strategy and Development Direction - The company aims to deepen its presence across key healthcare segments through an omnichannel approach and AI-powered healthcare services [6] - Future growth will focus on expanding partnerships with pharmaceutical companies and enhancing the user experience through innovative health solutions [9][15] - The company plans to leverage its supply chain strengths and direct sales capabilities to maintain leadership in the healthcare retail market [15][26] Management's Comments on Operating Environment and Future Outlook - The management expressed confidence in the company's growth potential, citing a large market size of RMB 3 trillion-4 trillion for the pharmaceutical sector [30] - The company is committed to enhancing user experiences and improving cost efficiency through AI-powered health service scenarios [26] - Management acknowledged the competitive landscape but emphasized the company's strengths in supply chain management and product quality [42] Other Important Information - The company has invested in AI technologies, with Dr. Dawei completing hundreds of millions of user interactions and achieving a 98% satisfaction rate [21][37] - The fulfillment expense ratio was 10.4%, and the selling and marketing expense ratio remained stable at 5.2% [23] Q&A Session Summary Question: Near term and three-year middle term prospects - Management highlighted the growth potential in the pharmaceutical sector and the importance of expanding product offerings and partnerships [29][34] Question: Competition landscape - Management expressed confidence in standing out among competitors due to strong supply chain management and product quality [42] Question: Plans for brick-and-mortar stores and M&A - Management clarified that there are no plans for large-scale M&A and emphasized a cautious approach to offline practices [48][52] Question: Progress of AI applications - Management discussed the positive outcomes from AI technologies and the potential for future commercialization [56][60]

Financial Data and Key Metrics Changes - In 2025, JD Health's revenue reached RMB 73.4 billion, representing a year-over-year increase of 26.3% [4][15] - Non-IFRS profit totaled RMB 6.5 billion, up 36.3% year-over-year, with a non-IFRS profit margin of 8.9% [5][21] - The fourth quarter revenue was RMB 21 billion, a 27.4% increase year-over-year, with net profit of RMB 1.1 billion, up 13.5% year-over-year [4][15] Business Line Data and Key Metrics Changes - Direct sales revenue reached RMB 16.9 billion in 2025, up 24.8% year-over-year, accounting for 82.9% of total revenue [16] - Service revenue increased to RMB 12.6 billion, up 34.1% year-over-year, accounting for 17.1% of total revenue [16] - The company introduced over 100 new drugs during the year, a significant increase from 13 in 2024 [5] Market Data and Key Metrics Changes - JD Health's annual active user accounts reached approximately 220 million, with an addition of 34 million compared to the previous year [15] - The healthcare market size is estimated to be around RMB 3 trillion to 4 trillion, indicating significant growth potential for JD Health [24] Company Strategy and Development Direction - JD Health aims to deepen its presence across key healthcare segments through an omnichannel approach and AI-powered healthcare services [4] - The company is committed to enhancing user experience and cost efficiency by leveraging AI technologies in healthcare services [12][20] - Future growth will focus on expanding partnerships with pharmaceutical companies and enhancing the product portfolio, particularly in innovative drugs and health supplements [26][27] Management's Comments on Operating Environment and Future Outlook - The management expressed confidence in the company's growth potential, citing a strong market position and ongoing improvements in operational efficiency [22][31] - The company plans to continue investing in AI technologies and expanding its healthcare service offerings to meet evolving market demands [20][44] Other Important Information - JD Health's fulfillment expense ratio was 10.4%, and the selling and marketing expense ratio remained stable at 5.2% [19] - The company established over 300 self-operated pharmacies nationwide, integrating them with its on-demand retail business [10] Q&A Session Summary Question: Near term and three-year middle term prospects - Management highlighted the growth potential in the pharmaceutical sector and the need to deepen user engagement and product offerings [23][24] Question: Competition landscape - Management emphasized JD Health's strengths in supply chain management and product quality as key differentiators in a competitive market [31][32] Question: Plans for brick-and-mortar stores and M&A - Management stated there are no plans for large-scale M&A but will continue to develop offline pharmacies to enhance service delivery [33][36]