JD.com, Inc.

Hello, and thank you for standing by for JD.com's fourth quarter and full year 2022 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, Shawn Zhang, Director of Investor Relations. Please go ahead.

Thank you, Kate. Hello, everyone. Welcome to JD.com Q4 and full year 2022 results conference call. For today's call, CEO of JD.com, Mr. Xu Lei, will start with his opening remarks, and our CFO, Ms. Sandy Xu, will discuss the financial highlights. After that, we'll open the call to questions from analysts. Let me quickly cover the safe harbor. Please be reminded during this call, our comments and responses to your questions reflect management's view as of today only, I will include forward-looking statements. Please refer to our latest Steve Harper statement in the earnings press release, which applies to this call. We will discuss certain non-GAAP measures. Please also refer to the reconciliation of non-GAAP measures with comparable GAAP measures in the earnings press release. Also, please note all figures mentioned in this call are in RMB, unless otherwise stated. Now, let me turn the call over to our CEO, Mr. Xu. Xu Zong.

Hello, investors. Hello everyone, this is Xu Lei. Thank you for joining JD.com's 4th Quarter and 4th Year 2022 Earnings Call. It also helps industry commercial oil cooperation partners to improve business certainty. Jingdong's own business has also gained a high quality growth. In 2022, the annual net income will exceed RMB 10,000 billion. At the same time, based on our judgment of the economy and industry at the beginning of the year, Jingdong focuses on core business throughout the year to pay attention to the improvement of business health. This helps Jingdong to face the complex external environment. It can still continue to improve business quality and create the best history at the annual profit level. and once again we can see that the business model of Jingdong has a long-term profit and growth space. Today, we can feel that the external environment and industry are undergoing profound changes. The epidemic of the past three years has just ended, and the public economy is gradually recovering. The change in the population structure has had a huge impact on the retail industry. In the post-epidemic era, the consumer's way of life and consumption are changing. We observed that the structure of consumption and the power of consumption are two-dimensional. On the one hand, the number of products, quality and functions of the middle class and family users is constantly increasing. On the other hand, consumers are becoming more and more popular. The demand for consumption and the consumer scene are becoming more and more diverse. At the same time, the development and management logic of global Internet companies is also changing. Before the epidemic, the first demand of companies was to increase speed, including traffic, users and business size, and then profit and cash flow. Now, not only the management logic of the company itself has changed,