Release Date: November 14, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Could you quantify the impact of the appliance trading programs in Q3 and discuss its sustainability into next year? What are JD.com's strategies in other categories like supermarket and general merchandise to sustain growth? A: Sandy Xu, CEO: The government's trading policy has shown positive progress, boosting sales in home appliances and consumer electronics. JD.com has responded by enhancing inventory and service efficiency. The full potential of the policy is yet to be realized, as consumer awareness and production capacity need time to catch up. We expect the policy to continue supporting consumer spending. For sustained growth, we focus on enhancing user experience, optimizing costs, and boosting efficiency across categories like supermarket and fashion.
Q: With the stabilization of the real estate sector, what are JD.com's growth drivers for next year, especially in the second half? A: Sandy Xu, CEO: We remain cautiously optimistic about economic growth next year. Our growth drivers include enhancing user experience, investing in high-growth categories, and expanding product offerings. We aim to cater to lower-tier markets and strengthen our platform ecosystem. Our long-term profit margin improvement will be driven by supply chain efficiency, category mix, and the growth of our 3P business.
Q: Can you share your view on the current competitive landscape and JD.com's investment strategy? A: Ian Su Shan, CFO: China remains a promising retail market with advanced e-commerce infrastructure. We focus on enhancing user experience, developing supply chain capabilities, and making targeted investments in logistics services. We aim to strengthen user mind share in key categories and maintain a balanced growth strategy, ensuring profitability and cash flow.
Q: What are JD.com's strategies for expanding in the apparel and cosmetic categories? A: Ian Su Shan, CFO: We are investing in these categories to enhance user experience and expand product selections. Our initiatives include promotional campaigns and partnerships with beauty brands. Most fashion products are from 3P sellers, but we are also enhancing our 1P capabilities. We focus on product, price, and services to attract users.
Q: How have recent macro policy measures impacted consumer sentiment, and what is JD.com's approach to shareholder returns? A: Sandy Xu, CEO: Current macro policies positively affect consumer sentiment, and we expect continued improvement in economic fundamentals. For shareholder returns, we have executed a share repurchase program and plan to continue with annual dividend payments based on profitability. Our long-term commitment is to deliver returns through share repurchase, dividends, and strong operational performance.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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