JD - Earnings call transcript Q1 2021

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Operator

Hello and thank you for standing by for JD.com’s First Quarter 2021 Earnings Conference Call. [Operator Instructions] After management’s prepared 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, Ruiyu Li.

Ruiyu Li

Thank you, operator and welcome to our first quarter 2021 earnings conference call.

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

For our performance, session. share financial Lei his CFO, today’s and Xu who highlights thoughts Mr. agenda, Sandy, join quarter on CEO for of Sandy the the XXXX. discuss will QX will followed fourth our Retail, by the JD Both will Q&A the

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

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

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

Lei Xu

call for the at of Thank you, the years on the this everyone. JD Thank Hello, past integration the JD.com Ruiyu. heart earnings Retail. This our is Lei model success of competitive JD customer digital China’s opportunities core the deep challenges. of have core joining unique optimization and has XX establishment us anniversary cost CEO whose of today. Xu, year experience, pursuits you in This of is quarter’s for XXth business constitute faced advantages. created These and we philosophy about also and providing a superior many marks rail economy economy the efficiency. operational

weather to partners, risks. right greater us stay from model helped win have doing enabling Our trust cycles through long-held economic business business and users us principle things and resilient and unique the all our of our to while

increasingly this can has logistics open. see, based JD’s business As you on become

our opportunities long-term only capacities empower We seeing we challenges to rising face, are growth. for but also not the others, enhancing to

past in aspects. I would Retail that share the the like some to three progresses from quarter achieved key JD Here, following

quarter first in in operating Retail’s users, with efficiency revenues both maintained margins. growth and the high-quality JD of business and profit continued First, high-growth improvement

the Sandy, following solid will CFO, lays the our later. for This foundation Our businesses elaborate in on this quarters.

value on room coming as Meanwhile, have users’ per to XXX lifetime the higher products through are even shopping our achieved In We our retention We users, our users. around well users in from quality both growth environment expansion encouraged of range challenging inspired of JD’s see Coupled healthy we terms product improvement frequency, spending XX strongly reached of year-on-year. the of with by high-quality partnership as lower market quarter, business also growth superior first past purchases operating JD. with By with X, of in with markets. more resonates XXX performance, we active and users to for consumer our platform end shows XX% as experience are gained them. and the their that by number profitability see mind average and shopping our the and the and unique partners customers of users XX% and active million annual new robust suppliers new active the sustainable have over QX, still are number the of from engagement In that April a wider we million By the tier annual grow. share mark. user. much on all grew we categories This existing rates, their expanding. seen months, many active

business meaningful business marketplace ecosystem. marketplace the our online The rate JD made also progress online growth quarter. exceeded during marketplace business. of our Retail’s Second, online XP

such tail as and growth. the only growth Moreover, showed abundant. beauty made long have progress increasingly of appliances XP a XP rate becomes FMCG but also reached not significant also home ecosystem categories, also we and accelerated X-year in marketplace online that categories are particular, advantage categories JD’s apparel Our In high. categories,

it’s consumers’ our the marketplace With of online development ecosystem, mind positioning to share the in be will enhanced. continue

as on ecosystem and always a With and of and on have as merchants year, renewable our for suite and efforts, in area platform, several an I Since sound their marketplace have variety the increased of engagement JD’s foundation. well year, more beginning we brands years of available has existing under more. we merchants abroad brands our fashion meaningful have to earnings the from established and potential of huge including online platform. call, Group been BESTSELLER Starbucks, As mentioned continued Decathlon, we JD. last a home the more of brands and This level leading significant improvement merchants’ now and seen welcomed Guozijian, rates

collaborate continue to also more partners brand We models. through with innovative

scenarios enhance in JD further with an luxury supplements in example, access luxury Vuitton industry shopping innovation innovative and online model For provides and luxury consumers direct further experience, with April currently Louis helps online, the that available JD’s consumption groundbreaking the collaboration China. launched to promotes shopping brand’s latest It a luxury users’ collections. of to

plan JD’s beneficial the of categories The and promotion as JD.com. achieve for more examples marks sales. brands brands come serve upcoming value all to more China’s to cases million to industry more great of continuing partners. help will retail platform. and anniversary and June business demonstrate unique in in a direction, in than XXth and these XX to ability We provide merchants over more All XXX grand successful we develop RMBXXX With JD’s more brands merchants for expect our

marketplace best suits Looking ahead, online innovate and to we will models continue various explore ecosystem. that JD’s

advance. to JD the validated omni-channel forward-looking Third, competitors have challenges Retail’s all and space strategy. omni-channel in environment the external coming from continues The

business various types various scenarios, anytime. partners online state-of-the-art of the has serve Retail efficiently digital collaborating to consumer Retail’s is any JD and BXC integrated build suppliers operation demands evolved beyond that supply capacities and in model e-commerce in marketing uniquely Therefore, adaptive consumption can our already management, with positioned current an an scenarios. In model. anywhere it’s fact, chain and omni-channel model far JD leveraging exploring field, in

instance, healthy asset online provides accelerated with the are long-term and the In consumption efficiency our diversified last achieved middle market, facing management Retail, JD as experience. user of from expand making over to we the and and such supply the across investments diversified challenges For products further all people to and user solution. and despite total world. more as conclude, marketing sell the in give to and us cost our capacities, the to year leading for to CFO, growth unification XXXX core Sandy. collaborating with as the we Retail’s will the business of the all we for retail in cornerstone goods our high actively is my are the the in vision strive business To traffic strong to now, partners continue overall achieved of all kinds scenario of and world the increasingly and chain process, this board’s right addressable sell serve floor platform Douyin, I we development. now growth [indiscernible] ecosystems goods This JD.com’s omni-channel JD.com, will industry, propelling remarks. optimization and Kuaishou, JD concludes

Sandy Xu

you, Hello, Thank everyone. Lei.

quarter. robust to expected to in operating off first a We in with the get and XXXX start financial performance are flying

changes us business philosophy in and our that China. Lei taking innovation pointed embrace place allow and of out, are take model As unique structural to advantage

fulfillment I from financial comprehensive technology first year JD.com. few the capabilities results, the and going marks This to the will quarter. way, chain, the launch Along a touch since have of been year supply Before and upon business set of able the serve highlights customers a XXth to partners. through we build

the being by largest China has revenue chain Our and based retail from provider. business technology company a model supply to evolved in service

gain a We continue on rolling slope snowball and very are long a to momentum.

developments lower that businesses years into are we and opportunities the include: of for the building in as have our capacities include: Kong preferred JD XXXX; The Group’s number most JD its by this share first, on QX; the among level been customers seeing of to turning we milestones which are our mainly May QX; stage, presented include trajectories international eliminations Business, is published Exchange our our net synchronize revenues and promising to our first, management’s aims are growth standalone and important and help of JD they the in and rapid younger and Logistics from segment financing efforts segment triple-digits these and Property, QX At business of completed JD both inter-segment. To fourth, starting expect revenues of XXXX, segment. in its end perspective. markets. presentation. notable the changes on different group growth that revenue JD list iteration. presented lines which from has tier generated external which Logistics, them resources May It’s expanding a line as The a achieving on how grew exciting Stock A perspective, the Series businesses prospectus Hong XX Retail at second, Jingxi understand restructured our Some from the from better the third, evaluating XX, investors are in reporting

out Business, new includes Pinpin, our been social Second, operating business, and our from reported results which store segment. platform, segment convenience enter Jingxi, Jingxi Property purchase carved JD and the Tong, JD business, of and have group Jingxi community e-commerce businesses the Retail Jingxi

and we namely As now main Logistics JD a changes, report these result three segments, Retail, of JD businesses. new

XX, organization segment of transaction The from also by completed rate our growth lines. XXXX. businesses. of the Jingxi on as Business, prior X-year the our JD operations presentation AI no The current underlying of Cloud cloud in segment international COVID QX these results. This compound XX% information year-on-year momentum the the retrospectively to primarily which XX, a as to to therefore of businesses business over better have reflects has during different structure, on XXXX, only changes pandemic, evaluate the AI internally, in the not we JD maintained presentation segment Properties, as was growth Digits, on outbreak. XXXX, revenues our various New and largely QX. Technology, March the business revised period top retail the known caused another robust grew higher updated XXXX with but by our JD businesses industry consolidated we conform On our March disruption growth billion at and the we business. our QX the looking formerly relatively note, compared include base starting been said, JD is CAGR, business, the RMBXXX stages and smooths That current period development in Retail’s to JD impact i.e., deconsolidated depicts XXXX performance QX business out

the over operation, QX in total nearly Our revenues period. clearly a doubled years business core retail trajectory. of growth sales of buoyant online with CAGR goods of XX a JD After of the X-year same China’s in remains growth Retail rate XX%

demand in expansion. enhanced categories. supermarket, and This We continue category a year, structural by and XX% CAGR of reported continuing the was mind the the of X-year momentum top share growth healthcare, and categories. XX% to home see year-on-year QX successful XXXX, boosted general growth pickup merchandise General products high merchandise last of on strong cosmetics QX in by revenues our JD led consumer in

the Our of operating from year-on-year grew was of a recovery retail clear electronics during accompanied and spite growth of XX% same in X-year considerably year-on-year and outpacing Retail even significantly by year-on-year and business a to reached CAGR The profit growth. and profit increased high-frequency, QX the gross with slightly This CAGR of XX% revenue a basis in Operating XX% track again, Retail to our core faster margin period business margin X.X% JD while home towards revenue improved revenues Retail achieved mix our in notably, the fully small, the continuing by realize points appliance last margin industry. XX that over competition. benefit. increased social its is but operating in X-year intense and yet QX, of X.X% margin improvement XX% All-in-all, fast JD even earnings on leverage. our healthy More growth of to year second as potential. outperform the by during of long-term. categories expand our fulfilled retail in below growth, medium-sized the margins shift technology-led Once history, are to security driven product was level we the continue core QX, operating highest JD maintaining and staple maintain only well consumer QX, XXXX,

its total secular JD it to infrastructure it capacities and XXXX, of in infrastructure X-year security to high a government continues supportive revenues drive reached invest by Logistics growth a is potential. expand measures second of accelerated JDL, technologies and and XXXX a stage, in to QX benefit was half RMBXX Our expand market billion at with JDL’s logistics XX% from XX%. and social and high growth. in year-on-year Starting while started historical to the to growth business, QX addressable from market JDL XX% the CAGR received in reduction other reinvest future

ratio result, square we Logistics JD QX last a warehouses operating meters. the from over widened business area segment lines. currently business sub gross the over in its X.X% all As X,XXX across Enter year. with an to loss from million aggregate in board recorded quarter same new XX floor X.X% fast growth the operates of

During new the on with quarter, an businesses basis, total comparable a billion year-on-year QX CAGR X-year to revenues of of XX% grew apple-to-apple in RMBX XX%.

operating Business’ loss the new an require due is first leveraging of the are early investments. lower day growth as in experiences. That seeing our and chain to differentiated the operation, investments newly QX, partners Jingxi period fulfillment Business JD’s in Pinpin new services are in of year, have loss consumers tier incurred technology incubating billion in price-sensitive quarter recording provinces, that and operating many X supply Jingxi offering our In and last exciting developments, formed covered order serve same mission business invested compared And to user infrastructure. billion businesses record as society businesses Jingxi of the we As by well volume in through value to Group. in to XX capacity we very said, RMBX.X stage RMBX.X mainly create markets.

Jingxi driving brand. lower markets to forward the We tier strategies are under serve to committed our

review CAGR XX% growth our turning X-year in reached financial highlighting rate traditional It The of QX. that net last Now year-on-year performance, the service is year-on-year, revenues XX% and to grew RMBXXX our total billion X-year XX.X% same the CAGR of JD This product net in XX% mainly net revenues in highest X net our Logistics is revenues growth QX to years. external period. by and growth revenue revenue digit CAGR of significantly our XX% service the QX. the XX%, triple in outpacing driven revenues year-on-year of growth of was over X-year during year-on-year advertising worth

As a year XX% diversifying up from boding well our revenues growth of QX ago XX.X% and XX.X% result, in XXXX, net service contributed a total in our for QX, revenues revenue potential.

XXXX. which total XX.X and and marketing to to we efforts long-term. SKUs shortened our turnover It’s operating opportunities QX the capacities while to and under last margin was the efficiency attributable logistics non-GAAP This QX, Cloud investments JD even position in to of new for net of in AI. operating of lesser inventory in Logistics, in XX by in highlighting extent, investment our year-on-year. increased managed non-GAAP points & Jingxi, continue directly Our worth shareholders days days year-over-year at months, in ordinary businesses, the X.X% XP our we result further was largely generate basis us XX our namely and was a stable lower continued margin with RMBX.X a investments income as Non-GAAP model, the expand RMBX that businesses number remained million billion, net to exceeded new X.X% we resumed new

cash, As billion. XX, up and of investments short-term cash of to added a cash restricted March RMBXXX total equivalents,

were of quarter. merchandises, supply RMBXX sort and months up free ago. of to to for also certain Our decreased RMBX.X our free billion a trailing cash flow secure payments in was the of to cash of of billion early billion, some QX cash components, was for a quarterly as or CapEx a outflow year especially increase prepayments outflow global billion an flow compared due flow from RMBXX factor, after RMBX.X ago. an seasonality made Besides And electronics shortage to free consumer of suppliers XX year the

approximately demonstrated building under user repurchased the a million our program XX position at of performance year-to-date long-term. bottom continue the with diversified approximately JD of our the managed billion again, Once to of businesses. new we concludes in ADS growth with top approved remarks. by million business with of to $X core and line unique the for invest competence maintained long-term core my robust growth strong business trend. Board repurchase we our is performance summary, $XXX the for March share In Lastly, prepared and continuing momentum solid we while line model resilience our That approach drivers, XXXX.

you. on Q&A. now Let’s to Thank move

Operator

[Operator from question. Leung Instructions] your ask Your Please Bank Lynch. Eddie America/Merrill first question from comes of

Eddie Leung

Good evening.

have I So two questions.

The first one about is threat. omni-channel

would as we and large And group JD we in team So of like grocery. environment order on very know see hand, strong JD of size about small as differentiation just want other the ticket the growth on we the like retail. as new appliances, the quarter, the items, first the secondly, But then such to from sense management items supermarket to that the the ticket well of home had and their hear on get growth. average thoughts continue a community to competitive because in growth

So Thank these questions. are my X you.

Sandy Xu

Sandy. is the This Lei me Maybe first, related comment question Jingxi can take Eddie. strategy. Xu Thanks, and omni-channel on the let

Because technology. more desire end stage, and though infrastructure I win as our Even day, the we be chain with on and strategy, to capability model supply Jingxi structural the believe selection. commitment further markets XP market of operation the key shopping the would our with the and products business, price selections users tier better to long-term this game provide first purchase can JD our leverage hand, low long-term brands we On driven the business. users traffic of lower unique BXC the explore And are with in to existing one relatively through on have experiences a mentioned. to with players the our we social and we chain These existing provide price focus initiative. the with within our e-commerce addressable a and the quality all, consumers hand, for particular, network possible these is logistics platform our on by to produce believe, more core opportunity just opportunity more a There other future experience have product It strong better definitely a capabilities, the down relationship at sensitive see it book services. by supply our brand, In up advantages build and penetrate the On So where by network, with as a the logistic the especially pricing. this range. good is to with Jingxi be this experience, quickly areas our products local through we it could the and we provide competitive cannot for if with business heavily chain, we provide shopping business products. easily is can can replaced SKU that supply platforms fresh but users as another service nationwide well. relied pricing market

taking So would as on in speed through platform, a long-term not a and on compete supply chain Only traffic platforms the would compete through with approach on other speed but heavy building our own driven chain. platforms, investing infrastructure, focusing teams subsidy. driven we supply

collaboration our satisfy and as business various enhance users’ much different infrastructure JD’s possible. leveraging lines will to we our and So, with within scenarios, technology JD – our shopping different existing as demands

Lei Xu

traffic decentralized have being off-line and see to part comment the social we more our omni-channel digital our will is value on Lei. quickly regulation retail. I active can grow businesses. some And continue trend transformation overall FMCG government – high platforms more And see Xu online and happening online. for from of take as more business also, products and the the This are we a that you greater seen the the the for is that and of all online release will the

continue And our strong them capacities satisfy to and to omni-channel capacities, and to anytime to and consumption use the overall environment help and capacities in can integrate environment support them supply merchants of to And For better very chain needs development JD will the to based enter these unparalleled of China’s in help shopping complicated chain, industry. help our customers of by in our achieve of traffic of in to our fulfillment, the changing different give our on our trends scenarios this leveraging capacities our integrated of to these all put kinds promote we we digitalization capacities them marketing and platforms. in businesses, to scenarios the supply goal industry all retail terms is to the of anywhere. to partners adapt to the market new in and more partners emerging serve Retail

welcomed capacities And been just our and our of also So, and the them resources offline have taking to very our our these than for already they welcome empower rather by partners, methods with more have more advantage of traffic. partners.

JD.com brands on And key for upgrades premier to want supply I chain been continued read affected can of market. And we supplies will by way, Year help of this outstanding. product and also and on for we due on faster mind number bottleneck diversified based that the category, Also partners this And year. for like to the our the achieved and the brands high-quality of So baby improve and the very year, penetration brand our partners products, these most and digital very recruit it more Chinese with This industries, the steady the and development share. trustworthy brands is growth Year it new phones, chain personal digital FMCG or through pay more can sales this attention – Chinese emerging been authentic channel mobile be the during JD the us through the in share, for and embrace in our to strategies the QX. key become And advantaged year strategies categories consumers’ industry performance has industry off-line the new related we towards electronics reputations – on has alcohol and the collaboration in And our to young shopping very more also the and of shortage might we services promotion. some the categories, the realize expansion is of last of for our mind embrace to become alcohol the categories, consumers. And this trend channels. one transformation business Chinese to products, partners our more consumer help and shopping this to close New to for we the for also shopping to see the transformation consumption partners the year services the in it of brands to our premier And their one might our us needs upgrade to maternal At year in has on categories, of products a this the to our channels, in the growth, Chinese our help go-to in channels. the experience branding categories supply the product for the consumers and partners serve image be meet towards experience more a in products, a And largest same and scenarios. has the support and for and growth consumers’ alcohol the New especially festival, also off-line and grand partners year, to is platform the especially in sales more built quarter, and the sales our improve the pandemic, have this sales time, product. and FMCG omni-channel steady and electronics consumer categories. better product expansion upgrades transformation support supermarkets that these our of accelerated transformation just to computers the comment our our And omni-channel observation this the strong due this thanks this electronics of their category our some categories, of sales shopping also kept and to chip and these the JD.com. of digital

So I three upon want points to share that.

bottleneck JD chain have based collaboration we our outstanding hands supply is projections very the with because thirdly, even our supply our and consumption supply this we chain management also so suppliers that tension see we upward will electronics consumer on a platform chain First supply we And on with our year. affected And close the second, this the address categories. capacities, our predictions partners. made precise can chain less for be of with together. is our strengthen to home the all on process, join partners trend the collaboration those supply in appliances and And this

Eddie Leung

Language] [Foreign

Ruiyu Li

you. Thank Yes.

Sandy Xu

to order Yes. line your same metric key increased is this order basis. order GMV to But value, year. faster stable top to average value period question average And regarding we QX, the a our largely than Eddie, respond operating our last actually not total the on – so remained that than compared in manage slightly a daily our number growth, that means

Eddie Leung

much. very you Thank

Operator

Your next question. from Please comes ask Goldman Sachs. from your Keung question Ronald

Ronald Keung

Thank see peers have growth, mostly lot reinvesting our lot of quite Xu, and profits, My given the management. saying of and balancing how you. question profit. the is core a or you, of profitability incremental Thank investments you, on a we our Thank profits and investments kind team. Sandy the of been between all our

very in balance businesses So new EBIT, we’ve the good quite that growth we separately. disclosed big basically our case, and quarter in seen a have logistics delivered have you into investments in first now but still that

that? trends – we logistics think likely about strategies the and think new think Jingxi how do next and should we balance we share do investment? And And business we businesses for how about trend, in say, unit, quarters? that should how into those you. about – the few if So and and the that management could how Thank

Sandy Xu

Thanks, Ronald.

this first. take Let me question

segment growth each across I are importance in think, all prioritize profitability each stage. first above But different still high-growth is business actually in the stage. of all, our or of line lines, we development business of we because

So of a we kind strategy. have differentiated investment

I So rate. momentum a the core and leverage business JD remain – of in to and from benefits margin that from retail our for for mentioned, quarters, unchanged. because at quarter, the term the the can Retail, realizing we as largely with they maintain will expect operating business, – few XXXX. expectation gradually our that, first scale call see we we are you And XXXX, in growth high-growth continue longer that But retail strong retail past maintain that last the our – for expectation still quarter for the we we

that we expect longer So term growth margin trend. over maintain Retail period, net still our will steady a means a JD

the our JD of for So Retail supermarket really, higher retailers. drivers procurement products than this I for off-line to discussed underlying X% still the XP well is margin the ecosystem. as before, I improvement X% are many the within as our remember category scale cost economy

is for there great abnormal under knows, as particular in scale everyone as was competitive categories. we situation years. many And our So business, improvement category. And category XP similar potential pressure our grow other we in this have past the few margin our actually for apparel

the your profitability by business financial be improvement, contribution. for term category will said activities as And XXXX. the consideration better, last XXXX performs should marketing affected if social marketplace the but that the the be definitely the So and when that margin, of as security factors disrupting having right, margin retail you promotion well year, the first will revenue of mix that, for the into a take lack and driver benefit, model including service longer also build you half in

and for to Logistics, JD hyper-growth can and their a expand to continue we for invest that as potential. network is infrastructure JD you still growth JD And in So Retail. stage. And this service see then offerings Logistics is in

our the to only e-commerce other capabilities capacity to external to transaction compared the expanded platform JD growth peers, also their support So customers is And be support where services faster of U.S. logistics in revenue. revenues building expanding not periodically similar businesses, volume. and XP Logistics but external internal to grew and infrastructure industry the for our much largest to the needs actually the

business the margin industry at fixed you also So but compared the our logistic should has other if cost trend, – that look you the to higher lines. relatively consider

last, then retail and XP other businesses. on due profitability stronger the And their So would new present the of seasonality promotion to their our customers.

capabilities existing focus actuate Pinpin through As still rather short-term in subsidy. Jingxi than it’s is to development the in investment when than we or expectation. similar Based logistic quite a financial they on better gaining building supply we infrastructure, difficult our early infrastructure business stage. teams were development our and require depict traffic on But deliver scale stage, chain competitors and core model the to

for far, are ROI. our this with the planned investment overall capabilities future adequate of can as our growing level business footprint of progress the and on with The business and Pinpin we over been whether satisfied users will has XX So provinces, experience. we with building provide we need the depend in Jingxi customer

meet and service So customer expand for reasons cannot experience the good the that product we we and scale. the customer before where And will deliver experience, resources can on be invest further our focused requirement, invest the more minimum quality we additional more we for improving regions will resources. the

basis very because monthly business the we for budget on it’s the and lines profitability new it’s assess on such from a we longer manage spending term relatively a a can very matured period. this where business is So different model, and actually dynamic, the

Ruiyu Li

let’s question. So move to the next on

Operator

from Your comes Please ask next question from question. your Thomas Jefferies. Chong

Thomas Chong

cities more Thank our My lower-tier after for on user question as as penetration year on penetration our cities. is Hi, you my million to year? And grow Can taking reaching further well lower-tier management also this management our share growth XXX the front, can you. users strategies comment for questions. thanks milestone? that this strategies to about about in how

Lei Xu

more And will two year a this questions though this from I approach adopt aspects. we on the is your flexible Xu. users,

shopping continues increase on quality new the their rates terms the acquisition. and the time, cost the operating manage user will users quality conversion better improved performance right we in they the retention XXXX. as rate on we average – efficiency and more we continue will users’ manage and cost channels both with across of our our At of And to their frequencies, the And we in retention average the of with products. First, same new and rates. high their the their approaches will as the well diversify we – users, new our and existing And for users user good will grow, new the our users’ board, numbers is in for acquisition. of the track on variety is compared also spending the terms platform, the spending to XXXX in the platform. users, the performance – see performance and their and qualities repurchase rates our of be in and of old choose overall,

this clothing has acquisition on to consumer category’s with which of for and and such new improve user experience as in also they did also a this better make and the more new And continue a the contribution quarter. acquisition, appliances, the job users food, our for improve appeal to JD.com to in further home they makeup, their terms users shopping their customers’ new engagement goods weaker categories, in quarter. We biggest attracting us. past, to mobile And acquiring FMCGs, contribution will beauty our new

tier our In users. For new the reached source for this time markets the XX%. users first lower-tier the lower coming market, it to quarter, of main the be from continues new the

and to will and our also the XXXX. more you. our various reach the and channels touch matching new of continue that sales users lower-tier the the users with expand users. of customers Thank chains market new growth continue more points to customers by offer markets we tailored product lower-tier to to with the trends time in following leveraging will to from mix estimate precise We And providing products supply the interfaces in

Ruiyu Li

please. Next question,

Operator

Your next Alicia question Please question. your from Yap Citigroup. comes ask from

Alicia Yap

quarter at questions. believe to the Sandy, we Congrats year. I second for on regarding comparable on be management. the how should for Thanks you. we about mentioned strong a my thank look the first rate evening, half results. first you I question last think, I trend? – growth previously have Hi, taking thinking half should Good the as

we the then it that’s quarter So a to XX% this XX case, first But year-over-year. are sound given anniversary year promotion, also your second first If in given doesn’t the then similar last will years’ only at of performance year? be it growing still June reasonable. strong implying this such half XX upcoming quarter, will be implying

that you quarter be any second the thinking trends us we can should of about? Thank give in So color you. terms

Sandy Xu

Thanks, Alicia.

performance outbreak and COVID significant last different on had the of our very the During year. various very categories impact

extremely released when I in remember still were appliance example, QX was that April home in weak For May. QX in was pent-up extremely into the the category last strong year but demands

or either trend So, year-over-year business, the mentioned, catch two-year will as about the retail you business we I internally or the manage for we first just of half. know, CAGR will the our growth when our think catch entire

products, COVID-related masks course, impact of face Of year. such and from sales was protection thermometers there as also the last nonrecurring the

I So correct. is largely your think understanding

momentum largely the whole growth for year from maintain We the expect to XXXX. business retail

includes what it half at the from we from the year perspective. perspective look look first X-year this CAGR both So at and

expect product – We grow – than And to for general also the the mix and faster electronics and but is shift and Advertising shift merchandise sales. that grow will category to see faster categories. health category retail supermarket appliance, the only particular, category care the than will continue, this business. home revenue in

by less last at look other affected COVID impact are a whole, the If our business year. as you the group lines

now growth of the portion the consider significant our also should revenues, of total services in particular, services you logistic quite contribute So revenue.

Operator

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

Ruiyu Li

feel today’s if you and have further joining any Please on you, to us conference free Thank you contact for questions. us thank operator, call.

Operator

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

Good disconnect. now may day. You

JD.com (JD) 19 May 212021 Q1 Earnings call transcript