Hello, and thank you for standing by for JD.com's fourth quarter and full year 2025 earnings conference call. At this time, all participants are in listen-only mode. After management's prepared remarks, there will be a question and answer session. Today's conference is being recorded. If you have any objections, you may disconnect at this time. I would now like to turn the meeting over to your host for today's conference, Sean Zon, Head of Investor Relations. Please go ahead.
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 Shen. Sandy will kick off the call with her opening remarks, and Ian will discuss the financial results. Then we 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 the 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 measure in the earnings press release. Please also note all figures mentioned in this call are in R&B, 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 profitability, our core business, JT Retail, achieved a notable growth marketing expansion in Q4. As we further leveraged our supply chain advantage, 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 talents to secure a long-term edge. Slightly tempered retail's margin expansion in the quarter, but the impact was well absorbed by our increasingly diversified profit stream in high-margin marketplace of solid access across our key long-term growth drivers. users. User base and engagement gains the core retail segment, expanding J.D. retail operating margin for the sixth consecutive year. And we are expanding our time with several promising new business initiatives. This solid proof of our deepening supply chain capabilities, which remain the engine for delivering superior user experience. Optimize not only supporting our core retail business, having a year where we exceeded 700 million at our core retail business, and further accelerated by new strategic initiatives, including JD Food, active JD Party of User, growth-based gains strategic driver on a two-year basis for strong double-digit growth in both revenue. Recent trajectory of JT Retail's growth and market expansion over multiple years stands as a powerful testament to the resilience of our supply chain-driven model. While Q4 revenue to edge down to 1.7% year-on-year due to softness, actively strengthened and deepened user man-share.
R&B 1.1 billion, short-term headwinds in electronics and home appliances categories. Our overall performance remained resilient. This stability was driven by our strategic focus on divisifying growth drivers and profit streams. alongside disciplined investment 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 U.S. $1.4 billion for 2025, representing 0.5 U.S. cents per ordinary share, or one U.S. dollar per AES. Furthermore, we remained active in terms of share buybacks. In 2025, we repurchased about 6.3% of our outstanding shares for a total of U.S. $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 R&B $352 billion. On the full year basis, total net revenues increased by 13% to R&B $1.3 trillion in 2025. Breaking down the mix, product revenues faced a 3% dip in Q4, mainly due to a high trading base, but grow 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 supermarkets and health care categories throughout 2025. We believe this momentum will continue in 2026 as we further build our strengths in this high-potential sector. Service revenues grow 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 of 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 grow by 24% year-on-year in Q4 and 27% for the full year, mainly driven by the incremental delivery revenues from food delivery business. Now, let's turn to our segment performance. JD retail revenues are 2% year-on-year in Q4, but up 11% for the full year of 2025. The quarterly decline was primarily due to the high trading 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 a 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's compensation to fuel future growth. On a full-year basis, GE Retail's non-GAAP operating income in 2025 grew by 25% year-on-year with operating margin improved by 52 BIPs 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 hard-margin advertising business and the real-life efficiency gains in categories such as supermarkets, we remain on a steady and successful path toward our long-term margin targets. Moving to JD Logistics, its revenues grow by 22% year-on-year in Q4 and 19% for the full With incremental contributions from food delivery profitability front, GD Logistics non-GAAP operating income was down 17% year-on-year in 2025, but up 3% in Q4. Also, 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 revenue surged by 201% year-on-year in Q4, and 157% for the full year, given by the rapid scaling of food delivery, jinxi, and international business. The segment now got 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 if market competition trends towards becoming more rational. Beyond food delivery, we will continue to explore promising opportunities in Jinxi 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 BIPs year-on-year to 15.6% in Q4 and ROP 18 BIPs to 16% for the full year. This improvement was primarily driven by the consistent gross margin expansion of GD Retail. Consolidated non-GAAP net income attributable to ordinary shareholders was R&B $1.1 billion in Q4 and R&B $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 these 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 R&B 6 billion, compared to R&B 44 billion last year. This primarily reflects cash outflows associated with the trading 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 trading-related receivables. We conclude the year with a robust liquidity position with cash and cash equivalents, restricted cash, and short-term investments totaling R&B $225 billion as of year end. In summary, 2025 was a year of solid strategic progress. we achieved a strong growth in our user base. Accelerated call retail top line with margin expansion are 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 a strong performance across our retail business top line and profitability, while advancing our new business initiatives with a long-term perspective.
With that, I will take it back to 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 question 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.
The question and answer session of this conference call will start in a moment. In order to be fair to all callers who wish to ask questions, we will take two questions at a time from each caller. If you have more than two questions, please request to join the queue again after your first two questions have been addressed.
Your first question comes from Ronald Kung with Goldman Sachs. 这个影响下下半年的基础就会回到常态呢 那我们超市和日白机械还是非常稳健 那我应该怎么看这个26年的金融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的机械零售的 een 管理层能说一下 我们具体认为 改善的路径 会是 basket 那面对这些 其他的经营对手 我们是基于 供应链驱动的 差异化的优势有哪些 我们怎么理解 公司对业务的长期决心 因为有 accessibility的监管调查 减少 对我们整个 Thank you, management, for taking my question. First is on JD Retail 2026 growth as electronics appliances returned to a more normalized base from the second half. The general merchandise remains very healthy. So how should we think of 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 of the path to further economic improvement compared with the bigger competitors? How are we differentiating ourselves through supply chain-driven business models? And how should we think of your determination and commitment to this business? And with the regulations and investigations on the delivery industry, would that also contribute to economic improvement? Thank you.
Thank you very much. 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精通品牌,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。 那对于代电品类来说 在短期看呢 的确有高基数 还有原材料成本上涨的效 那2026年政府的 已旧换新的项目还会继续 但是呢 这个25年因为 它的确从已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 各地政府在发放已旧换新补贴的 啊这个资金和资质方面相对对节奏会控制的更加平稳一些 所以从我们的角度看上半年代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 但是会比四季度二五年的四季度的增速啊有明显的改善 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 此外最近大家可能也看到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价格会有一定的影响 这个价格的上涨会在硬程度上抑制销量 但是客单价的提升可能也会抵消部分销量下滑的影响 啊 那我们也将持续的强化我们的供应链能力啊 积极的做宣下的布局 并且进一步加强服务体验 然后继续啊 加强我们的用户心志来拉动销售 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 虽然短期内啊这些创新的产品对我们现有的零售规模啊相对贡献是啊还没有那么明显 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一起去快速的反应 开发新的产品啊通过快速应用新技术来免满足用户不断变化的消费需求 展望2026年我们的增长驱动力会更加多元 日白品类也会保持健康增长 广告这些服务业务也会保持快速健康的增长态势 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 下半年的增速会好于上半年 整体上我们在保持市场份额和用户心智的同时 会不断的应用技术创新去推动行业的发展 第三就是叠加京东平台现有的平台流量 用户和品次这些表现的持续提升 那我们也有心心今年全年实现健康的高质量增长 那么第二个外卖的问题也是我来 Oh sorry Okay, thank you, Ronald.
So 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 the impact of trading programs on the other category. So general merchant categories serve as a primary growth engine for J.D. Retail. Subcategories such as supermarkets, fashion, and healthcare all achieved very strong results. Looking into 2026, we remain very confident in sustaining this healthy momentum. Supermarket category still has significant end-tap potential in terms of user penetration and expansion of the subcategory Fashion category 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 continues to face high base effect in the short term. In 2026, the government trading program will continue, but we have to bear in mind that the government-backed cash subsidies were consumed much faster and more in first half 2025 compared to the second half 2025. So for our electronic home-applying category including home-applying, cell phone, computers and digital products 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 of 2026, and our market share remains very resilient. Furthermore, we have to bear in mind that memory chip costs keep rising, so prices of mobile phones, digital products are expected to increase across the board. This may then turn consumption and affect cell volume, but at the same time the rise of AOV will partially offset the impact of lower cells to a certain extent. We'll continue to strengthen our user mindshare and drive cells 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 opportunities 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 shifts. We will work closely with brand owners and suppliers to respond rapidly and develop new products and needs involving user needs through the sweep 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 rapid growth momentum. Second, we expect electronic home appliance category to remain impacted by a high base in the first half this year and with growth in the second half to a salary and better than the first half. Overall, we will maintain our market share and user mind share. 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 to in achieving healthy and high quality growth for the full year 2026. 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,我们的目标是在规模保持健康发展的同时取得经营效率的持续改善,也就是优异的改善,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总投入, 第二是我们全职其手的服务质量给用户带来更好的体验 第三是生态系统的协同联动体现整个京东品牌的供应链优势 对于优异的提升也有明确的抓手 第一是更加多元的收入来源 第二是持续提升补贴效率 包括针对不同用户地域的精细化补贴 第三是Pickson效率会随着单量的规模健康增长也会持续提升 值得关注的是我们的期限小厨业务 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 也是与我们的即时零售业务有很强的Synergy 截止到2月底我们已经有超过50家期限小厨营业 也欢迎各位投资人和分析师有机会可以体验一下 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 那持续提升应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中潜力 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构贫,能够有大幅的提升。 仍然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。 刚刚还有一个问题是关于外卖监管。 First of all, we support and welcome to protect the market market. This will benefit from the health of the industry. Secondly, we will not be able to defend the market market market market. We will also be able to create a new way to create a new market market.
Regarding your second question, So while our food delivery business remains 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. So 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. well that also of course depends on the market competition dynamics. How we do this? First, JD food delivery differentiating advantage includes our commitment to our positioning in high quality food delivery. Second, the superior service quality is driven by full-time riders. Third, the synergy that a synergy, a synergetic 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 subsidies tailored to different users and regions. Third, enhance delivery efficiency driven by economic scale that accompany healthy order volume growth. It's also worth noting that our Southern Fresh teaching, which is a highly innovative and differentiated business model, is progressing well. It's 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 kitchen locations, and we welcome analysts and investors to try it out. Regarding the long-term positioning, food delivery and on-demand retail as a long-term strategy for JD will 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, feeling 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 fosters a healthy development of the industry. Second, we remain steadfast in our opposition in evolutionary competition within the sector. Third, we are committed to driving high-quality evolution of quality food delivery, high-quality food delivery through continuous innovation in our supply chain model. Thank you. Next question, please.
Your next question comes from Kenneth Fong with UBS.
Hi. Sandy, Ian, Sean,晚上好. Thank you for your question. I have two questions. 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经济的业务发展 我想请问一下管理层如何平衡集团的增长以及利润率呢 那预计二六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了 第二个问题是关于海外的 管理层可以介绍一下这个 收购的新的进展以及时间的规划会是怎么样 以及这个业务在定标以后 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Joy Buy 预计将和这个京东 Retail 京东 Logistics 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 我自己翻译一下 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 the accelerated investment in overseas and经济 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? And my second question is about overseas business. Can management share some updates on the economy acquisition progress, timeline, and the impact on financials post-consolidation? From the strategic angle, how would join by position?
And what kind of benefit or synergy should we expect from the group level, i.e. general retail, logistic, and the whole supply chain point of view. 提升大新的增长动力,那京东的长期高个位数的利润率的目标是不会改变的,对于核心零售利润,2026年,核心的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的收窄 那展望2026年我们将继续推动外卖规模的健康增长 同时释放于核心零售的协同价值 那如果行业的竞争取理性 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 惊喜业务在深耕下沉市场聚焦白台凤几 特别在六线以下城市加大渗透率和效果显著 拓团了京东的用户的增量的边界 在供给也实现了和主战的差异化协同
今年的投入会持续小湖增加 那优异也会持续提升 实现业务健康可持续的增长 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 zero-digit profit margin also remains unchanged. Key growth drivers of this, including improvement in product sales growth 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. CD Retail's sale 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 DD food delivery, its loss narrowed by nearly 20% quarter-on-quarter in Q4. We continue 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 Jinxi, it has focused on lower tier markets and the non-branded product supply. It has made meaningful penetration improvements, 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 Jinxi a little bit, but we believe SUE to continue to improve in 2026, delivering healthy and sustainable business.
Thank you very much. We also hope that we will be able to build a big difference between China and China.
As to your question about this economy deal, At the current stage, it is under regulatory review. We will update the market in due course. SoyBuy 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, SoyBuy has received very positive user feedback. especially on the performance side. The J6 experience will be a key differentiator for Joybuy. We are 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 U.S., 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 gripping brands into the Chinese market, further strengthening our global supply chain capabilities. Second, a 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 longstanding expertise and robust infrastructure will continue to empower our international business.
Operator
Section, please.
Your next question comes from Alicia Yap with Citigroup.
Hello. Thank you. Good evening. 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 sales growth outlook this year, what does the growth rate management have in mind for your general merchandise G&B and revenue growth? How can JD continue to grow faster in this category amid the competition and also slower consumption? And what are the specific differentiated areas are JD able to drive sales in this segment? And 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 agendic commerce? the company's business.
We also brought about the industry to build across the industry. This was also based on the overall growth industry. In the 2016 year, we were very proud. The development of the industry is usually from several of the few things. First, the market is very big. The market is the market. The market is very big. 也有很大的增长空间 那然后第二点呢就是用户增长 那我们在外卖还有惊喜这些业务 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新制 那么从品类维度看 那么从品类维度看商商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竞争力更强的价格 而时尚品类呢在二五年啊我们也在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 包括更多元的商品Sky 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领域体验 然后从品牌的角度 那作为全国最稳定的日销平台 最好的品牌建设 商品全生命周期回报率最高的品牌 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 remarks that the category is maintaining healthy momentum. So looking back at our track record, the general merchandise category has 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 efficiency expertise. This lay a solid foundation for continued growth in this category. So we remain very confident in the healthy momentum of General Merced category in 2026. The sustained growth driver includes, first, huge market potential with ample room for growth in categories such as supermarket fashion and healthcare. Second, user growth. So new business, including food delivery and Jinxi have brought growth in traffic, user and shopping frequency on JD platform. So we are also accelerating internal synergy. and we have observed healthy cross-selling trend in categories like supermarkets. Third, continuously strengthen supply chain capability and user mindshare. So from a category perspective, our supermarket category leverages JD's unique 1P model to deliver an excellent user experience and at the same time competitive pricing. Meanwhile, our fashion category has seen notable improvements in building underlying capabilities, 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 Q425, we reported double-digit growth, young-year growth in both sports and outdoor and parallel revenues. In terms of our differentiated advantage in this category, first and foremost, the core mode of JD1T 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. JDA is the premier destination for brand building and the platform that offers the highest returns throughout a product's entire life cycle.
So we provide brands with stable and efficient sales performance. 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 同时我们也在加大技术上的投入 在推动大模型应用的同时 使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 第三点是我们正在逐步打造成为 从供应链到消费者和消费者端到端的 领先的AI commerce公司 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 嗯 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,可以重够重塑购物的链链。 啊那么在供给端呢我们也可以通过 ai来帮助我们的彩胶在巡员定价和库存管理上面持续的去提校啊可以大量的替代人工的工作啊然后在物理物理世界的应用比如说旅约的自动化其实想象的空间就更大当然他也需要更长一点的时间啊来被广泛的应用 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11期间搭载我们照Einsight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 energetic 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 patterns change, the core retail business remains as user experience, cost, and efficiency. So as we stay focused on optimizing product price and service. JD supply chain strength will yield even greater synergy, further widening our competitive mode 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 commerce company, spanning entire spectrum from supply chain to customer. As JD runs a 1P business model with in-house fulfillment logistics service capability, the technology and AI application scenario is abundant. So this really differentiates us from platform business model. I'll briefly give some examples. 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 AI in areas such as sourcing, pricing, imagery management, replacing manual labor. We're also expanding our application in the physical world in terms of fulfillment automation and after-sale services. Beyond operation, we're unlocking new consumption potential as well through applying AI, such as Joy Insight, our AI agent for hardware. As I mentioned before, the sales of Joy Insight integrated products surged 24 during W11 compared to the June 18 promotion. So you can see we are leveraging, 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. Your next question comes from Thomas Chong with Jeffries. 晚上好,谢谢管理层介绍我的提问。 我有两个问题。 第一个问题是管理层可以分享一下 我们回归股东最新的情况。 The second question is, do we have a change in the management sector? Do we have a change in the management sector? And do we have a change in the management sector? Good evening. Thanks, management, for taking my question. I have two questions. First, can management share about the latest developments on shareholders' return? And second, can management talk about any changes to the regulatory environment for internet platform companies and how should we think about it? Thank you.
Thank you. Thank you very much.
Thank you, Tomas. 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 one U.S. dollar per EDS stable compared to last year. The total dividend amount is 1.4 billion U.S. dollars. 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 $3 billion U.S. 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 skills, profitability, and cash flow, and make strategic investments for the long term, reaching value and sharing JD's long-term success with our shareholders.
I'm going to answer the question.
I'll take the last question. Regulators continuously promote the standardized development, the healthy development of the platform economy, ensuring sectors' long-term sustainability, so we welcome regulatory guidance. The government's commitment is to support compliant corporate development rather than remain unchanged. We believe rigorous oversight is not a constraint, but rather a catalyst for driving healthy, high-quality industry growth. So JD has always prioritized compliant operations as the cornerstone of our business, Whether it is anti-monopoly measures, tax standardization, or preservation of involutionary competition, prevention of involutionary competition, this effort aligns perfectly with JD's long-standing philosophy of compliance. So under a normalized regulatory environment, fair growth opportunities are created as we prevent bad money drives our goods. So as a result, over the long term, the advantage of JD complying a sustainable business model will become increasingly prominent. Thank you.
We are now approaching the end of the conference call. I will turn the call over to JD.com's Sean Zong for closing remarks.
Thank you for joining us on the call today, and thanks for all your questions. If you have further questions, please contact me and I, our team. We appreciate your interest in JD.com and look forward to talking with you again next quarter.
Thank you for your participation in today's conference. This concludes the presentation. You may now disconnect.
