JD.com, Inc.

Hello and thank you for standing by for JD.com's fourth quarter and full year 2024 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 Jong, Director of Investor Relations. Please go ahead.

Thank you. Good day, everyone. Welcome to JD.com's Q4 and full-year 2024 earnings conference call. With us today is our CEO of JD.com, Ms. Sandy Xu. She will kick off the call with her opening remarks, and our CFO, Mr. Ian Shan, will discuss the financial results. And then we'll open the call to questions from analysts. Before turning the call over to Sandy, 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. We'll 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 also 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 us today to discuss our Q4 and Q year 2024 results. In Q4, we delivered a strong set of operational and financial results, with top-line growth accelerating back to double digits year on year. and healthy bottom-line expansion, ending 2024 on a very strong note. On a full-year basis, our total revenues were up 7% year-on-year, outpacing the growth of both total retail sales and online physical goods, as reported by the NBS. As our market share expanded, we remained committed to our operating philosophy of lowering costs increasing efficiency, and investing in user experience with a continued financial discipline. Full year and non-GAAP net profit for 2024 also expanded steadily, with non-GAAP net margin hitting 4.1%. We continued to invest proactively from long-term growth without making solid progress towards our long-term profitability target. We saw strong double-digit growth momentum across most of our categories and revenue streams in Q4, starting with our electronics and home appliances category, which saw a notable upswing with revenues growing by a remarkable 16% year-on-year. Our unique advantages in supply chain, service capabilities, and user mindshare continue to set us ahead in these categories. Heading into 2025, with the government stimulus policies adding to the tailwind, we are well positioned to benefit from this rebound in consumption. Besides the strong momentum in electronics and home appliances, I'm excited about another bright spot in our business. Our general merchandise continued its strong performance in Q4, with revenue growth accelerating to 11% year-on-year. With intensive efforts, we've invested in building the operating expertise and the massive market opportunities in both supermarket and fashion categories. We believe our general merchandise is set to further expand user man-share and renew the impetus for our long-term growth when we look beyond the momentum in electronics and home appliances. Within general merchandise, our supermarket business revenues in Q4 were up double-digit year-on-year for four consecutive quarters in a row. This was partially due to the early start of the Chinese New Year promotion, but more importantly, driven by the de facto improvement in our supply chain capabilities. in the supermarket category, ranging from selecting the right product mix, lowering procurement costs, to improving promotional and procurement efficiency. The supermarket category holds massive potentials for JD in the long run, for both B2C commerce and on-demand retail, and we've just started to unlock it. Our fashion category is also generating better momentum thanks to our persistent efforts to improve operations and consumer mindshare. For example, consumers are more excited about our offerings, showing higher shopping frequency and the merchant's enthusiasm towards the JD platform has also increased significantly. We will continue to invest in the area as it holds strategic importance for us, especially for further improving our user engagement and the marketplace ecosystem. Throughout the past year, our team stayed very focused on improving user growth and engagement, price competitiveness, and our platform ecosystem. The strong four-year results were consistent with the strategic focus that we have set out and a reflection of our effective execution. Let me provide some updates on these key areas. First, on user growth and engagement. Q4 last year marked the fifth consecutive quarter of our quarterly active customers, seeing double-digit year-on-year growth, with growth accelerating further in the quarter. User behavior also trended up, we saw user shopping frequency growing at double-digit year-on-year for four quarters in a row. The strong user metrics, even after the impact of the lower free shipping limit had fully lapsed, were a result of our increased low-price offerings and mix shift towards high-frequency SKUs. In the supermarket and fashion categories, The healthy user momentum is keeping up so far in 2025, and we see a lot of user conversion and cross-sell opportunities. In terms of JD+, shopping frequency of Plus members grew even faster than that of our total users in Q4. Our focus on enhancing our service capabilities and value proposition for our PLUS members remains unchanged. In January, we announced further upgrades to PLUS members' benefits, including a lifestyle service package that allows members to redeem credits for housekeeping services and a 180-day replacement over repair policy for our 1P electronics and home appliance products in case of quality defects. We also expanded unlimited free shipping to cover on-demand shipping shopping of 1P products for Plus members. Moving to price competitiveness, we've made substantial headway in 2024 by both improving price competitiveness for brand products and offering a broader selection of value for many products to address the needs of consumers across different income spectrums. In particular, in Q4 and on a full-year basis, we saw growth of order volume and user base in lower-tier markets, outpaced that of higher-tier markets on our platform. Shifting to our platform ecosystem, as we continue to bring in merchants and expand assortment of our supplies, both our 3P order volume and the number of our 3P users have maintained robust year-on-year increases over the past year, with Q4 further picking up the pace compared to previous quarters. NPS, the net promoter score of our three offerings also continues to pick up in Q4, both year-on-year and on a sequential basis. As a result, our marketplace and the marketing revenues were up 13% year-on-year in Q4, a substantial acceleration from previous quarters. To recap, we had a very productive year in 2024 with healthy expansion on both the top line and bottom line, and effective execution of strategic priorities, bringing about tangible results. On the back of our strong financial performance, we also delivered considerable returns to shareholders through both buybacks and our annual dividend. Our total shareholder return rate for the year reached close to 10%. Ian will share more color on this. Our strong results reflect our commitment to drive lower cost, higher efficiency, and best-in-class user experience. And now, we are racing to adopt new technologies, especially AI and industrial robotics, to further automate many of our processes. For example, we already have AI applications in many of our work scenarios, such as AI marketing, AI customer service developing superior algorithms for search and recommendations to increase traffic allocation efficiency, and AI-enabled streamlining of internal workflow, just to name a few. In particular, we have launched an AI shopping assistant called DingYin, a chat box that helps users to get personalized search results and recommendations, find the best deals, and discount. and compare products. In addition, we always strive to improve our logistics automation level and have deployed proprietary industrial robotics in many key production segments in our fulfillment centers, which help to improve operation efficiency and safety of our employees and lower fulfillment costs for JD and the entire industry. We are confident that JD's business ecosystem offers a huge amount of user cases for AI adoption, which in turn will lead to further cost optimization, operating efficiency improvements, and ultimately give us more leeway to provide our users with a better experience. We remain confident in our business position and are increasingly optimistic heading into 2025. We expect to see better consumption trend driven by the pickup in domestic demand and operating efficiency and user experience improvement powered by AI adoption. In addition, we see a compelling set of opportunities ahead of us driven by the sustained momentum in user growth and engagement, the vast potential in general merchandise, and our progress in platform ecosystem building. Looking ahead, we remain committed to lowering costs, increasing efficiency, and improving user experience to deliver a sustainable growth in the long term. With that, I will turn it over to Ian for our financial highlights. Thank you.