JD - Earnings call transcript Q4 2020

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Operator

Hello, and thank you for standing by for JD.com's Fourth Quarter and Full Year 2020 Earnings Conference Call. [Operator Instructions]. Today's conference is being recorded.

If you have any objections, you may disconnect at this point. I would now like to turn the meeting over to your host for today's conference, Ruiyu Li. you. Thank ahead. go Please

Ruiyu Li

And Earnings our Conference operator. Full Quarter Year XXXX Call. welcome you, Fourth to and Thank

Joining me our on Xu, CEO the call today JD and are Retail; Sandy Xu, CFO. of Mr. Lei

session. will Both For today's business followed join of quarter highlights them our by and his discuss Q&A on Sandy, will the the will trends, who share CFO, for agenda, recent thoughts full Xu Mr. fourth year the XXXX.

press release, Before Also, I earnings statements you direct in as our call to reconciliation GAAP this discussions of statements. harbor applies we certain measures. safe which we most earnings our comparable measures. non-GAAP of contains continue, refer release, to includes forward-looking a this measures to non-GAAP financial the the make refer which Please call to

that all mentioned please the in call unless conference Finally, stated, figures are otherwise this during RMB. note

call to JD like would Retail, I Lei turn Xu. Mr. of Now to the our CEO over

Lei Xu

earnings Thank be JD economy, you, the is significant today to the global live XXXX review everyone. global for economy. year. the CEO Thank share Xu this observed you Ruiyu. the amidst also great our outlook our our and uncertainties ordinary Hello, XXXX challenges. new was many JD you I'm with take found glad society call. can to It great brought no greatly industry Lei, changes opportunity to This We Retail's and of Retail. for QX way in impacted their joining and the year. pandemic retail The macro customers lives. everyone's opportunities lives. But

challenges and continues contact all demographics XXXX, XXXXs The economy, many and and lower who market, period, in the silver during changes means more many We has of needs, us to ability more year enable users segmented on-demand cases attention, of Consumer's open business tier born a business consumption to diversified. consumers' our spend, behaviors profound forms In this With wide our the economy, were range opportunities. community Consumers' enhance China's engaging opportunities, cycles. and changes. growth use be different a these increasingly penetration after our presented continuously online retail model trends the and to running deepen. economic and adopted the and the became of to JD's have and communication, business through face partners. resilient underwent the mindsets approach proven the

our changes. business many and the gain uncertainties trust philosophy efforts as to noble business users true principle us the business helped long-standing Our more of in All of partners. and of navigating doing served these north have

the results a our financial but only business. improving investment, annual Over the past and seized of new put experience withstood accelerated end challenges, in months our is a always high is expansion successfully with hit the continuous year for XXX strong This our saw QX, customer we running added history. XXXX. By in user XX set past ago. growth year, active opportunity customers active iteration. mainly our we largest new customers attributable reaching not for We This users' and the growth million and to have further the XXX compared in million. a the also delivered our JD.com also of first with

even first customers. see increased our from continue XXXX. of our We to user users We're over which new see QX lower-tier more XX% time exciting in to contributed delighted in the the growth cities, for engagement

strategic XXXX. than we or maintained Xx also role in ARPU by JD For members. our in And cohorts very most mature example, goals. of engagement plays and from new XXXX, long-term achieved core It JD businesses customer core Retail the healthy is increased ARPU growth Plus fundamental significant its value active business. our see earliest and progress more JD's a a the initiatives. we our XXXX business In JD achieving in

are to accelerated the growth high-quality past in innovation. and Retail and year, meaningful realized JD say that pleased We and sustainable

Looking based strategies: service and ahead continue JD on enhancing beyond, will focus omnichannel technology, X Retail our marketplace platform and key our a for in strategy technology chain to as provider, supply our and capacities chain ecosystem. XXXX middle and online supply

more on At been chain million supply long than chain in the products of our and direct SKUs we middle the China. sale has a end in First, building intensively over platform of JD for time. warehouses for of technology, supply infrastructure investing XXXX, the managed XXX across X

industries and mind, This including supply enterprises With and aspires we industry impacted to small, create improve merchants, development efficiency, the this off-line, need whole that be an cooperation more in online risk and enhance society. value The help the also build imminent customers' have uncertainties. do for world. goal big middle the more use to their will chain and During cases and reliable operational increased JD and factories, investing been high-quality supply all and and to in ability experience is unswervingly improve and can platform channels. environment COVID-XX, has their the capacity. help the a around resistance of to What in technologies brands promote diverse entire for applied chain their both of among chain to to supply is in growth

service further will drive this in revenue revenue JD, endeavor diversify our and future. our the stream For

value of to diverse broad efficiency aims our the with and strategy in Second, retail services immediate increase range access for face overall cases, to provide customers' products omnichannel merchants business satisfy to of and people to to needs channels customers. and use create a and

only complementary on JD stores, must model key maintenance Omnichannel stores, retailers all there of we businesses. is fresh technologies believe future, but with business JD's off-line many huge covered a and our ranging a shopfront platform's groceries omnichannel Today, on-demand and that business for based future. convenience tailored penetration the JD, potential The LBS-based to to also type the integrate scenarios low car omnichannel is not a among We omnichannel new has rate on-demand trend quite fulfillment retail element main unique that is off-line to strategy address. consumption flowers with off-line still to model. and Our various in this supply of millions will ability, chain stores, market. already stores. technology develop fresh pharmaceuticals the connecting industries of In is from

Retail and omnichannel their share also to our we cultivating measures, industries, will continue XXXX, as We provide Meanwhile, of many store we will work partnership Group. through on external digitalization our to scenarios. more applications of customers' build In cooperation omnichannel such innovative our chain, verticals and Dada supply omnichannel and abilities coverage omnichannel as monetization initiative fulfillment up JD the with the additional and more opportunities. drive market business. expand retail marketing will businesses us partners fulfillment growth to will support This on-demand off-line our quality such in between and

market foundation building area building and good established Third, platform online ecosystem, is and an environment the for of ecosystem. great With on merchants' improved we this JD. have platform Notably, of a of potential now for quality a in experience. progress the the we years made user online healthy good an development, several have

marketplace that the NPS, of continues see to Net the online pleased year. are to our Scores, improve over We Promoter

and much rate merchant than our recognition merchants' in our reflecting this significant platform. improvement past, the higher of a is renewal far year, satisfaction So in

and and to open online will shopping we the for strategies These by our and industry capitalizing provide continue empowering strategies environment, JD's for merchants. new healthier still experiment experience to ahead, find with an attempts to optimal be marketplace. ultimate customers' business Looking will purpose guided models JD's improve platform

or curve categories growth care as business keep by our as While opportunities. Whether it strategic electronics use incubate directions, as curve identify adhering continue business new growing goods such new by represented an third JD face and technology innovation consumer foundation, and such can represented business to our represented curve consumer second retail initiatives, or open is established first-to-growth innovation, emerging and growth business to mind, MRO our such growth incubate to always our the these we business health service underpin our and will change. Retail and by

JD's problems based of like value chain the business, invest business. microenvironment JD is chose chain in X steam business technology relevant and that business able to as to as core long-term that embodies We hardest, Here, how ahead the far the tackle has will positioning committed JD doing and we to I industry The long always remain mission and service in and strategic strategic we uphold innovate and JD's would is of our philosophy. our we but emphasize taking to the X continue day we'll provider. long noble and We values matter value the believe based been philosophy go have supply This we come, preserve. valuable as will supply society. core creation, to most directions. the No to but step be our Since principle development. full industry ahead. new ahead, winding, attitude abiding long-standing by these customer-first are and road

for and the in your achieve our partners operability value and now our for Sandy. deliver customers, floor I'll constantly time. CFO, society, Thank at to turn, creates growth our industries, will high-quality give and We and continuously long-term JD. you

Sandy Xu

bottom cash by multiple become growth with and experience progress our top a Thank relentless years, the and which performance capability, line user flow you, and results while throughout fourth fourth customer our supply in to Lei. new performance over expectations hallmark were JD.com. quarter infrastructure logistics Hello, focus maintaining exceptional of accelerated driven in We chain strong year and with full business These line finish during investments XXXX outperformed in the has solid the on quarter. everyone. pleased were XXXX. past and technology businesses, exciting We financial the in and and

business and our taking at forefront As place we in shifts for and innovative of structural run, change China. long been many the initiatives embrace has the that position JD are

Retail exciting just JD like the developments to on operating addition at elaborate some described, financial and to would In I further Lei highlights. that

color We growth customers accelerated from XXX our annual XX% year-on-year XXX new in the more past a user year First, customers add active let me million for new user million. months of active the added watermark QX, base. end to at and hit our a on high XX we saw ago. By

marketing reduce we efficiency for This In philosophy the was and addition, while in marketing our marketing operating our continuing expense to user-centric technology-driven long-term way XXXX. our forward. growth base, to sustainable driven paving our going improvement, by ratio managed improved grow efficiency user user

are exciting progress. turn number initiatives, our of a business Let's making to new which

XXXX, First, industry in logistics on China. logistics Group's It as JD as technologies And JD solutions in-house and whether become XXXX, of XX, provider the gross JD supply in been submitted application on guarantee building aggregate for February decade. for operational as an of know-how and Logistics XX JD that of meters. operated floor the the million has square take is a apply over warehouses with well its Please and place. chain over technology-driven Logistics has Began listing no and note leading services department Logistics. Stock logistics as to a infrastructure to Hong area Kong the shares there listing when proposed will Board listing On form Exchange. Main XXX

Some are rapid experiencing of also smaller growth. our businesses

JD with example, launched its For logistics strategic development some first fund properties Property prestige recently investor.

Core agreement Fund is of billion. into be for million. and So Property's expected raised RMB definitive entered Series has a approximately to XX amount exceeded financing. far, A Property JD AUM The JD total XXX Development total also the USD Funds

and We our internal units coordinate better resources business some restructured recently capture to market opportunities. also

Business an December, chain community recently with in Pinpin, to in Jingxi subject to capacity banner. retail platform Business Digits, Stock development core to regulatory Kong our business, and on Jingxitong, Hong as empower our purchase in gain on to the retail Within allocating a more The on proceeds approvals. important example, JD further cities. Jingxi known strengthen the better the Health AI of business, solutions. business. approximately JD.com focus and For we HKD store business, new successful Jingxi as designed To in and synergies, listing of And gross This supply achieve JD we technologies were the to Group Cloud synergies will XXXX, allow X, merge and resources milestone lower-tier and our SMEs Jingxi, business serve consolidated e-commerce flexibility & social billion. group logistics reorg Board achieved formerly with innovative XX Group product convenience with December Exchange announced drive Xintonglu, the business proposed we was more will that JD customers established under the and

high-quality superior technology-driven a BXC platform demonstrated and this has growing provide empower efforts business. Health infrastructure. JD new health We customer centered products and opportunities lifespan. full core This is enabled and by investing our capabilities long-term affordable creates e-commerce products health on As convenient, will incubating, external group. core technology developing sustainable track chain of user's business proven and and supply e-commerce business. our on our care to cycle, pharmaceutical the drive a a partners care record health services, covering Therefore, grow services our identify new experience care new virtuous invest continue and believe supply from chain accessible, in aims and beyond can to a successfully easily to initiatives and and for that to relentless focus in exciting growth businesses in of allowing our we building JD us

our reflects performance the financial Our trajectory of development. long-term

a promotion with RMB the to Our strong XXX XX.X% billion net revenues quarter, fourth our continuing momentum season. in growth grew successful year-on-year

in more ways. More line importantly, expansive our are top we driving

during home merchandise and to revenue care, QX. the and year-on-year large by health XX% margin. by outperform category continuing for the at industry Order led categories electronics QX, the year-on-year grow supermarket product continued FMCG, grew XX% year-on-year categories. XX% volume to in by QX, cosmetics Our General in increased a faster appliance home

XX% advertising we growth is in our metric as driven This diversified highest momentum growth a to external line service net revenue quarters. past Another year-on-year the our shows our of XX had we that which as top are in mainly key Logistics' strong growth, QX, way in growing is JD by the revenue revenue. well the more accelerated

XXXX. accelerating revenues XXXX, to challenging conditions, of by XX.X% growth general from grew revenue billion, year-on-year XX% merchandise market of XXXX. revenue and year and in XX% year-on-year amid solid of our in Electronics XXXX. XX.X% XXX home XX.X% full with in appliance revenue total the growth Net grew RMB reached For revenue accounted recorded year-on-year service net for while XX%

staple JD up basis improved in basis operating in operating X.X% reached driven margin year-on-year was year-on-year year X.X% COVID-XX XXXX, during in proactively realized XX we extent in security that basis points categories lesser and of QX and social a infrastructure. full X.X% high-frequency X.X% early as from operating relief are XX of improvement mix XXXX, full up pandemic. small creation benefit the in realizing improved XXXX. in consumer earnings the Retail's some margin non-GAAP even security value to and for size shift social margin the came The still Our stage towards the to category our efficiency the reinvest XXXX XX points by by mainly our QX to but and users year a in on our logistics ticket of potential for at and basis points the

We track our are long-term on margin trajectory. well of

line. bottom the to Moving

income QX basis net X.X X.X%. Our to XX non-GAAP was non-GAAP improved margin RMB ordinary net attributable shareholders billion year-over-year points and to

XXXX as Our improved point points to year-over-year has to full and to additional benefit had income continue year our meaningfully of security net in RMB the related COVID-XX It's incurred full compared our X.X%. ordinary we the Non-GAAP XX partners. improved worth XXXX to about which we impact. reached highlighting net year financial XX XXXX margin position Again, stepping relief, our to as non-GAAP expenses social XX% strengthen while business exclude to support the up basis that shareholders even profitability billion, RMB attributable billion last year. up XX.X for XX.X basis

directly one total inventory despite Our the days the of operating and the historical us. through global continuous technology is to and efficiency. of turnover reduced the managed by our among top SKUs again XX days record our in This continuous of of last XX.X improvement months, the further expansion own retailers achieved lowest

new months XX hit RMB XX% a grew flow for of record year the cash free a from billion, trailing ago. XX Our

December cash off to believe with for XX, the up and a As We provide range a growth. profitability summary, which In We ecosystem and a ability and position for performance. of a tools, opportunities. uncertainties in cash strong paved year restricted solid growth future of and short-term foundation RMB total increased to us way cash XXXX, our improved enhanced equivalents, and investments our of a technologies partners, our further investments serve billion. capped of users added JD.com XXX remarkable financial challenging with our

witness to a transformation the in life society many technology-driven across in China. We aspects daily categories deepening online to and the of consumers' continue of penetration many and

We impact. expect challenges to maintain the comparable high growth we of base in XXXX momentum in generated fronts in multiple that the spite XXXX macro on and continuous

continue. our will expect trajectory also We long-term margin

margins market as well is concludes JD.com trends exciting chain This not opportunities. the However, our prepared JD logistics and established supply business with benefit of retail forecast short-term sustainable beyond. a growth secular With stage enviable believe to drive and growth is proposition we remarks. many and fast-growing the an long-term our XXXX capabilities, value still in we with do core from convincing in in my

call for questions. Let's open the Thank you.

Operator

[Operator Instructions].

of line comes the Your Eddie question from of first Leung America. of Bank

Eddie Leung

Just a follow-ups couple after quick your presentation. of

Firstly, the Wondering your it growth ticket new is logistics the is does a expectations. of fulfillment If leverage ticket is cost pretty bit any your sales there a because if size impact on very operating of than size? our higher of affect down pieces? user like percentage the Seems strong. impressive, is the users, as coming

year. renewal I your thought. And Xu your platform the mentioned then think Lei wondering improved rate just So of last merchants

just is of because rate? merchants renewal how of wondering improved So number quickly marketplace the the growing and are

Sandy Xu

Thanks, Sandy. This is Eddie.

take Let regarding the question your margin. me first fulfilled

XP XP for operating down gross increased. at the gross would manage but QX, how that product, bit, If for margin, in margin if include XP went think results. in BXC look internally the our profit we we it The advertising gross look little separately. So slightly actually relation and a margin we XP we I at to pure is revenue

in our after the we in additional for all year. considering reinvestments QX generated of first So this X months from the profits that the is

the of our reinvest mentioned last logistics from the to fourth reinvest profits earnings I infrastructure. additional also build As to and customers the generated call the at we quarter to first value to really plan months provide our in to quarter, some X

So the again, to to for XP emphasize year. that increased gross slightly last compared same quarter the margin actually

gross points. look compared slight about very XP, last for year QX. improvement full also the with the And see we by to there for meaningful improvement compared is XX fulfilled the you basis from year If margin last at year a

So this improvement supermarket towards many gross the margin categories, shift is category lower-margin including driven by by mix the steady category. of

So social improvement the full of the the we onetime the gross year impact no relief as margin benefits has benefit on XXXX. our for of in had fulfilled VAT

more XP total that the So model, categories the margin almost and compared healthy last outperformed down the the from contributed the Really, GMV year. also XP -- The QX the same. electronics the is the were home business marketplace also our though contribution. fourth dragging products. by marketplace revenue care, see within down in -- quarter, in performance as for fulfilled QX model but encouraged quite We little category amount the XP We what's a appliance went can the gross health changed the contribution is of supermarket, the mix to revenue were slightly. and business even bit home apparel

than marketplace ecosystem, is relatively and a of growing historically believe building this with under rates rate a strong our categories our XP the our marketplace higher particularly a take for faster healthy efforts business good indicator move means Again, categories that we model. with lower better categories. So are take in

Lei Xu

of number all consumers' year, see service answer has And terms our platform the merchants JD's your the strongest the you our experience. you steady is through on to of that enjoyed a growth. question, have reputation in impression of And that the can second known

expectation a our have on consumers products will qualities merchants have a the expectations the platform. higher also we higher service, and the from our the As on on

more platform a our low During they growing. been overall we experienced on the and They have their operation quality done merchants running are more the and way. and still, recruiting have last steadily we some we merchants. work is screening year, high this more year, have And -- see number low efficient in over efficiency the of business merchants,

will platform for our they how renewal a the the merchants operational well on are platform the time their pay attention running cut-off March also stores. close we of this efficiency And of merchants So and XX. for year, on internal and the is the efficiency on our

past. our you renewal the seen much have we in of merchants of our we've Thank So seen also is the rate platform. than higher questions. the And satisfaction improvement rate the for

Operator

from Sachs. comes of the Ronald question next Keung of Your line Goldman

Ronald Keung

the strong performance. Congratulations on XXXX

commitment should and of both And mentioned Jingxi, also I be these? question of the biggest on plan because, which new Xu on initiatives, these -- our plan different could I think terms is I JD are initiatives see think in in just X of our or X very my we itself, Retail kind about exciting. you new should or in of maybe in initiatives business, to we of exciting launched the the by of strong all some invest both course, a about about magnitude? the invest Lei but you through kind Sandy, to think the think, lot would key? very you, And businesses. given go how of could you How

Sandy Xu

can question Jingxi This and comment then me on is Ronald. new regarding Maybe initiatives. Lei other take let Thanks, some Sandy. the

business I to group synergies industry really our the from Business see Jingxi as -- X business category. QX, try opportunity a purchase we restructuring in in this mentioned, units. So for or group Group fresh a separate is produce the purchase there did We great generate to

fulfillment can efficiency and marketing, more size efficient non-food markets users inventory and we lower-tier management potential it the see in firmly the size model for lower through group logistics business tiers is better opportunity, products and business generate experience. So with smaller better market operating opportunities of ticket also and improve from chain technology the believe supply short the lots provide efficiency and and model. there for items chain the fragmented and in And through as works with especially be we purchase market highly perishable to that better huge innovative a structural

it players purchase primarily traffic, go on at believe the present, operating though market retail platforms will the day, model build this customer compete even by of cost we their and basis So products, most business, of will efficiency to of end in driven business back experience. food i.e. by

living we the to So of ultimate is operating through supply the improve dedicated network to existing approach goal and business is initiative, initiative be standards. people's efficiency fully chain, to capabilities. somewhat a see wholesale long-term on this will try a market this and JD in the and take more we focused be retail our differentiated lower-tier and logistics supply technology improve chain to and in and leverage

So our technologies entering it's were this in stage. and Pinpin to business, chain support need as logistics purchase we very still as operations. January, a in launched short chain, business We their build group early tools cities supply to from network we localized certain into well and

city. We leaders, by also educate city need to and business new recruit by step step, users, group our teams development

test we are need very lots are starting we been there of for group a business testing it, scratch. But small purchase scale. investments. We a while in model areas entirely So have the now from the

Xintonglu, our FMCG category, convenience store primarily supply supply in some business, some localized already chain. we including For established renamed the now chain Jingxitong, BXB

group million We business Pinpin some has and of to our owners be naturally Jingxi Jingxitong teams of store convenience also country. have logistics customers, the leaders development regions X over BXB in turned of existing and now business. network the localized these SME certain can

on for home platform, through the shipment mentioned for At products or sales Pinpin now, just other support time, product still Our Pinpin core channel. that same existing categories FMCG, provide by retail generally platform, Lei and the should middle Pinpin's selection. benefit centralized users of more can with procurement

various wholesale Dili, chain source business the China the manufacturing for for the value our best market are to product agricultural we the with and supply as users. supply including strengthen agricultural products helping chain working upstream players same products to try on existing our time, the At transformation, basis further market. digital including the with So partners, capability

Based users of initial serve users conversion to the a loyal its good to aim accumulated the platform are and pleased Jingxi e-commerce a test lower-tier a cities, Jingxi we of users. group from our in users establishment. lot have Our small users, since they Pinpin to see of on

quickly believe industry the help know-how and increase existing the as and capabilities lower-tier can drive we basis to lower-tier business engagement new including markets, sufficient support our to supporting of also as a new and in apply form model. Group's capabilities can not So replicate, JD Jingxi business the merchants from adjust and cities good as our of business, main the the teams stores although existing growth our to securities, well Pinpin the and app. convenience Jingxi Jingxitong the users we for

into business chain and from they core groups. these fully our logic of and consolidating the is also also retail units reorganizing support this business business got this So are supply logistics Most group, JD group. and the dedicated initiative. new X our in importantly, business X We sent to best people

And situation. have as grow So ROI aside as areas, in many pretty this these new the talking predict It's the invest mentioned. we based I business need evaluate we to market sufficient to about to will accurately we investment, put and budget we at the start spend the sure much difficult the and make investments adequate are how stage to on initiates. adjustments on for just going

our the create technology see, players. long-term and What value crazy you partners run is and really business can strategy not acquire to you in subsidies, and hardcore for to short-term with many, building capabilities users tell through business the the society. very is invest but to and As dynamic our is can market I many users and the

of out operating the transparency take QX of year. consistent our plan Retail to To new So under the starting philosophy. this from improve with JD report investors, group's communication we Group and Business also Jingxi from segment is business our operating with this results

investors look to and the with We are we as sharing this develop we excited the business. opportunity, business forward about more

Lei Xu

let add on not the we the the focus essentially something but products the on me customers' And Now e-commerce, and business, all for platform. new retail will the business. only for

from started products, since beginning our So product to the our selection. Retail's we expand start development, we of JD and

people So And we we platform, base are offering. a off-line products we the we customer started product our step, cetera. centralized customers, platform to our cities cohorts more continue to And and our in we and do new products, businesses third-party consumer start the the and expand have decentralized interested consumer terms in the users, formats next the the the senior then exploring targeted with more to been then first-party on initiatives. to way, who in formats. and in for focused digital And and in with will build the and providing moving et our then our of customer now -- electronics years, omnichannel and to X are lower-tier past we we

JD's what cost customers. is the experiences solve can what And is this thing shopping we the doing thinking improve that business now that, things most we are and important efficiencies to and pain type for pain logic. the see points behind bringing giving So about the better our basic down of points, the and

or process methodologies retail. robust is to for So there be find whether -- for can the more new will there pain this solutions some we models or looking points are also to or see do will be the leading and ways you new

look history points when create and this we created principle and seen JD to that have we Retail at this seen industry. other has market, happened to a being some all And in JD's pain the years, market. companies enter that to considering of the the has of scale JD Health for And and value are solving JD in we'll first new our incubated past in well, many as this we development So have MRO. based

this will truly whether However, for and see create deeper long-term the business industry for think society. the and new value we'll

decisions we I is, new mentioned, basic as are not. logic when enter business this the a So making our or to

we'd a value eventually, and to So love to create customers. society and our sustainable the constant

Sandy Xu

supplements it than the retail also Yes, businesses our other business.

International. and to to expand service will it Logistics, we infrastructure JD And offerings. also its For and JD product further build continue technology have

we small stage. but in So growth in stage, in the investment hyper operation are a They Southeast still Asia. fast the have

Operator

Alicia Citigroup. Yap Your next the line comes question of of from

Alicia Yap

results. solid the on Congrats

generated category, already from Year. impact Just group platform peers? your community quarter just these the quickly you Chinese any the very Just you New have the given intensity group rising from FMCG buy on wondering then any community the wonder, have revenue in quickly, And of seen fourth first I quarter? buy

us, you also qualitative year any the another with is in special share given that -- So stay little given a year could bit this measure. color cities the

So demand compared strong as New what are Any to have you Year category normal that seen of Chinese abnormally this category in observed period? have you the year? terms the

Lei Xu

promotion. in and products, a don't And group the a quite don't JD's questions some we we speaking, produce of the from the buying. first to the impact see community development focusing see the been digital related And is forecast and big We'll having Chinese the answer also of two. the impact is may mainly big but business these on we brand related fast the first FMCGs has This -- FMCG have Lei. the -- and of overall group Year New community buying following the fresh Xu seen to in areas:

is business to shopping year's it's also product. items changes worth preference supply participation in to regarding mainly our our this group do our festival with chain, buying SKUs festival our this think of on through about and shares some And some the there's work want consumption, consumers' because companies last and -- compared spring been question our some a -- their shopping festival. COVID their we on customers' I enabling favorable healthy and community results And see mentioning them our major that the with that year, situation, mindset shopping mind formats. of consumption some year's the also behaviors this related has

products this and promotion, enjoying which And during pandemic this gift, as home the And coming fast spring festival year, to such health food contrast, masks, demand most home The the is good some year. normal performance from the rate they're some a categories also care level. some We fast. a year's grand coming as back growth very in year, beauty such back home the seen and suffered categories, sales had last cleaning, have appliances appliances. the and last

in do is their stay generally to the operate at hours the place living encouraged promotion during a And see to on recipients orders consumption of add to business their lot And because are remote do because So actually a The the working the government the that surge -- merchants speaking, sales doubled the we platform people those remote orders of that remote and a point one to their and we the extent staycation, more of celebrate our even very Year, sending continue to platform. working is among the order make also the New orders And other cities. there. the healthy of remote see grand trend. the this numbers our on buyers of platform. orders

engaging event. participating and So see sales in in we are very they do active very this

Sandy Xu

contribution from in we're small-scale group Yes. purchase QX, community the cities. And in revenue X in X fourth only in the very experimented quarter on or

can the revenue ignore you So contribution.

Operator

now for turn I will the remarks. over of the We the closing call. to approaching are Li end call now JD.com's conference Ruiyu

Ruiyu Li

Thank free us contact the any have the Please talking if Thank months. in to for coming you. further you forward you operator. questions. on Thanks, joining you feel call. with us We today to look

Operator

for in you participation presentation. concludes This Thank conference. the your today's

may day. Good disconnect. You now

JD.com (JD) 11 Mar 212020 Q4 Earnings call transcript