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 Zhong, Head of Investor Relations. Please go ahead. Thank you.

Good day everyone. Welcome to JD.com’s 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 comparison 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 RMB 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 remains 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 margin expansion in Q4 as we further leveraged our supply chain advantages. We strategically invested some of these gains into our price competitiveness particularly in electronics and home appliances categories as well as in R and D capabilities and talents to secure a long term edge. This slightly tempered retail’s margin expansion in the quarter, but the impact was well absorbed by our increasingly diversified profit streams including high margin marketplace and marketing services and margin improvement in categories such as supermarket and health care. Beyond core retail, our new businesses continued to report steady efficiency gains and a sequential decline in total investments. Beyond the quarterly fluctuation, 2025 remained a year of solid execution where we delivered on our full year expectations. We have made encouraging strides across our key long term growth drivers. User base and engagement gained significant momentum and our core retail segment accelerated back to double digit top line growth. We achieved this while expanding JD Retail operating margin for the sixth consecutive year despite a highly competitive landscape and we are expanding our time with several promising new business initiatives. This solid progress is rooted in our deepening supply chain capabilities which remain the engine for delivering superior user experience, optimized cost and enhanced operating efficiency. This is the backbone of our business model, not only supporting our core retail business but also fueling our expansion into the new markets. Our Strategic Initiatives we are confident that these strategic pillars position us for more sustainable and profitable growth Moving into our Operational Highlights I’d like to share three highlights from Q4 and full year 2025 as well as our thoughts for 2026. First, our user base expanded in both scale and depth of 2025. Our active customers grew by 30% year on year in Q4, capping a year where we exceeded 700 million annual active customers. This growth was powered by the organic user growth of our core retail business and further accelerated by new strategic initiatives including JD Food Delivery and dnc. High value users also hit a new Milestone. Our active JD member base sustained double digits surpassing 40 million marks by year end. What’s even more encouraging is the quality of user growth. User shopping frequency surged by over 40% year on year for the full year with broad based gains across all user groups including new and existing users as well as plus members. In addition to user acquisition, JD Food Delivery also played an important role in this frequency lift. We view the expansion of user base and engagement as a long term strategic driver for our business and expect it will further amplify in 2026 and beyond. Second, our core retail business demonstrated remarkable resiliency in Q4, maintaining stable margin in the quarter despite short term top line headwinds. On a full year basis, JD Retail delivered strong double digit growth in both revenue and operating profit with operating margin expanding by 52bps to 4.6%. Viewed through a long term lens, this consistent trajectory of daily retail’s growth and margin expansion over multiple years stands as a powerful testament to the resilience of our supply chain driven model. While Q4 revenue edged down to 1.7% year on year due to softness of electronics and home appliance categories, we have proactively strengthened our supply chain capabilities and deepened user man share. These efforts are already paying off with improved year to date in 2026. Furthermore, we expect to be benefiting from environment and high base comparisons, we remained steady fast in sharpening our supply chain edge and fortifying our foundation for the future. As we enter 2026, we are already seeing a consistent upward trend. Our user momentum remains robust and the growth trajectory of our general merchandise and the marketplace and marketing services has carried over seamlessly into the new year. In the meantime, we have continued to strengthen our competitiveness advantages across product supply, price competitiveness and fulfillment experience. This operational strength combined with our technological advances has disciplined ROI focused approach to new businesses gives us great confidence in our 2026 outlook. We remain fully committed to driving sustainable profitable growth and creating long term value for our shareholders. With this, I’ll turn the call over to Ian

thank you Sandy hello everyone and thanks for joining the call today. In Q4 our total revenues grow by 2% year on year and non GAAP net profit came in at RMB 1.1 billion. While we face short term headwinds in electronics and home appliances categories, our overall performance remained resilient. This stability was driven by our strategic focus on diversified 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 1.4 billion for 2025, representing 0.5 US cents per ordinary share or US$1 per ADF. Furthermore, we remained active in terms of share buybacks. In 2025 we repurchased about 6.3% of our outstanding shares for a total of US3 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 RMB 352 billion. On a full year basis. Total net revenues increased by 13% to RMB 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 supermarket, fashion and health care categories throughout 2025. We believe this momentum will continue in 2026 as we further build our strength in these high potential sectors. 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 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% in Q4 and 27% for the full year, mainly driven by the incremental delivery returns Revenues from Food Delivery Business now let’s turn to our segment performance. JD Retail revenues down 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 the 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 target investment in R and D and employees compensation to fuel future growth on a full year basis. JD Retail’s non GAAP operating income in 2025 grow by 25% year on year with operating margin improved by 52bps 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 higher margin advertising, business and real life efficiency gains in categories such as supermarket, 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 year with incremental contribution from food delivery. On the profitability front, JD Logistics non GAAP operating income was down 17% year on year in 2025 but up 3% in Q4. 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 these as essential investments that pave the way for JD Logistics’ long term sustainable growth in both top and bottom lines. New business revenues surged by 201% year on year in Q4 and 157% for the full year driven by the rapid scaling of food delivery, jinshi and international business. The segment non GAAP 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 year if market competition trends towards becoming more rational. Beyond food delivery, we will continue to explore promising opportunities in jinsi and international business with financial discipline to ensure long term value creation. Moving to our consolidated Profit Performance group, Apple Gross margin expanded by 32bps year on year to 15.6% in Q4 and rough 18bps to 16% for the full year. This improvement was primarily driven by the consistent gross margin expansion of JD Retail. Consolidated non GAAP net income attributable to ordinary shareholders was RMB 1.1 billion in Q4 and RMB 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 RMB 6 billion compared to RMB 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 RMB225 billion as of year end. In summary, 2025 was a year of solid strategic progress. We achieved strong growth in our user base, accelerated core retail top line with margin expansion fueled by 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 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 turn it back to Sean. Thank you.

And yama. Thank you management for taking my question. First is on JD Retail’s 2026 growth as electronics appliances return 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 unit economic improvement compared with the bigger competitors? How are we differentiating ourselves through supply chain 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 food delivery industry, Would that also contribute to economics improvement? Thank you.

Okay. Thank you Ronald. So for your first question. First, our general merchandise category continues very healthy robust growth trajectory. Looking back at 2025, the category achieved growth faster even factor in the impact of trade-in program on the other category. So general merchant category served as a primary growth engine for jd. Retail categories such as subcategories such as supermarket, fashion and healthcare all achieved very strong result. Looking into 2026, we remain very confident in sustaining this healthy momentum. Supermarket category still has significant untapped potential in terms of user penetration and expansion of the subcategory fashion category. We have completed many infrastructural work such as merchant recruitment last year and will further build 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 continue to face high base effect in the short term. In 2026 the government trade-in 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 appliance, 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 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 phone digital products are expected to increase across the board. This may dampen consumption and affect cell volume. By the same time, the rise of AOB will partially offset the impact of lower cells to a certain extent. We’ll continue to strengthen our user mindshare and drive sales 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 and we will work closely with brands, owners and suppliers to respond rapidly and develop develop new products and meet evolving user needs through the swift 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 accelerate and better than the first half overall, we will maintain our market share and use the 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 in achieving healthy and high quality growth for the full year 2020. Hui. Continuation Like. Regarding your second question so while food delivery business Our food delivery business remains in its early stage in 2025, we actively invested in both operation and R and 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 driven by full time riders. Third, the synergy that synergistic integration across city 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 subsidy to be tailored to different users and regions. Third, enhanced delivery efficiency driven by economic scale that accompany healthy order volume growth. It’s also worth noting that our Seven Fresh Kitchen which is a highly innovative and differentiated business model, is progressing well is deeply integrated with JD’s supply chain capabilities Leverage strong synergy with our on demand retail business as of the end of February seven fresh 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 is 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, sealing the company’s long term healthy growth. In 2025, our food delivery provided 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 healthy competition within the sector. Third, we are committed to to driving high quality evolution of high-quality food delivery through continuous innovation in our supply chain model.

Hi Sandy, Ian, Sean Hao. Economy. 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 Jingxi business, how should management balance the growth as well as 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 update on the economy acquisition progress timeline and the impact on financials post consolidation? From the strategic angle, how would Joy buy position and what kind of benefit or synergy should we expect from the group level that is Geno retail logistics and the whole supply chain point of view? Thank you.

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 and 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. 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 single JD’s profit margin also remains unchanged. Key growth drivers of this including improvement in product sales gross 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 JD retail 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 GD 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 2020 2025 levels. For international business, we will gradually increase our investment on a controlled scale. We will maintain financial discipline in the investment. For Jingxi, it has focused on lower tier markets and the non branded product supply. It has made meaningful penetration improvement 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 Jingxi a little bit, but we believe UE to continue to improve in 2026 delivering healthy and sustainable business. As to your question about this economy deal, at current stage it is under regulatory review. We will update the market in due course. Storyboy 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, Straybuy has received very positive user feedback especially on the performance side. The G6 experience will be a key differentiator for Joy Buy. 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 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, logistics. As Joy Buy expands in Europe, the synergy between retail and logistics in our overseas business will be further strengthened, reinforcing Joy Buy’s competitive edge. Third, on the technology front, JD’s long standing expertise and robust infrastructure will continue to empower our international business.

Hello. Thank you. Good evening. So in light of the potential slower retail sales growth outlook this year, what is the growth rate management have in mind for your general merchandise, GMB 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 JDE able to drive sales in this segment? And second question is that can management share your thoughts on how JDE might prepare and position to embrace the upcoming threats and opportunities from the agenda Commerce. Now.

For the second question, we see AI AI-powered 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 pattern change, the core retail business remain as user experience, cost and efficiency. So as we stay focused on optimizing product price and service, JD supply chain strategy strength will yield even greater synergy further widening our competitive mode in the AI 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 large language models 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 is abundant so this really differentiate us from platform business model. I’ll briefly give some example. 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 areas such as sourcing, pricing, inventory management replacing manual labor. We are also expanding our application in the physical world in terms of fulfillment automation and after sale services. Beyond operation, we are unlocking new consumption potential as well through applying AI such as JD Insight, our AI agent for hardware. As I mentioned before, the sales of JD Insight Integrated Products surged 24 during double 11 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 UI 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. Next question please.

Thank you Thomas. Despite the long term strategic investment we made in 2025, we remain committed to shareholder return for both dividends and share buybacks. We declared the 2025 annual cash dividend of US$1 per ADS stable compared to last year. The total dividend amount is US$1.4 billion. 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 US$3 billion worth of shares in 2025 representing 6.3% of total outstanding shares. As of the end of 2024, all the repurchase 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 scale, profitability and cash flow and make strategic investments for the long term value and sharing JD’s long term success with our shareholders.

I’ll take the last question Regulators continuously promote the standardized development, the healthy development of the platform economy, ensuring sector’s long term sustainability. So we welcome regulatory guidance. The government’s commitment is to support compliant corporate development rather than remains unchanged. We believe rigorous oversight is not a constraint but rather a catalyst for driving healthy high quality industry growth. So JD has always been prioritize compliance operation as the cornerstone of our business whether it is anti monopoly measures, tax standardization or preservation of irrational competition prevention of irrational competition. This effort aligns perfectly with JD’s long standing philosophy of compliance. So under a normalized regulatory environment, fairer growth opportunity are created as we prevent bad money drives out good. So as a result over the long term the advantage of JDE complying a sustainable business model will become increasingly prominent. Thank you.