JD.com (JD) Q1 2023 Earnings Call Transcript

For the period ending March 31, 2023

May 11, 2023 8:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks：

Operator

Hello and thank you for standing by for JD.com’s First Quarter 2023 Earnings Conference Call. [Operator Instructions] 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 Zhang, Director of Investor Relations. Please go ahead.

Sean Zhang

Thank you. Good evening and good day, everyone. Welcome to JD.com first quarter 2023 earnings conference call. For today’s call, CEO of JD.com, Mr. Lei Xu, will kick off with opening remarks. Our CFO, Ms. Sandy Xu, will discuss the financial results. After that, we will open the call to questions from analysts.

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 will include forward-looking statements and please refer to our latest safe harbor statement in the earnings press release on our IR website, which applies to this call. We will discuss certain non-GAAP financial measures. Please also refer to the reconciliations of non-GAAP measures to the comparable GAAP measure in the earnings press release. Also, please note, all figures mentioned in this call are in RMB, unless otherwise stated.

Now, let me turn the call over to Mr. Xu, our CEO. Xu, please.

Lei Xu

Hello, everyone. This is Xu Lei. Thank you for joining JD.com’s first quarter 2023 earnings call. In the face of profound changes in external environment of the industry, together with our own proactive adjustments to our business, JD achieved a high-quality performance in Q1. As many of you know, during the past 3 years of COVID, JD spared no efforts to maximize our business model and supply chain capabilities and allocated tremendous resources and energies to ensure daily supplies and provide reliable services to our customers and up and downstream business partners. JD was able to play an important role in the economy and people’s livelihoods throughout that challenging period.

In 2023, with COVID in the past, the macroeconomy and consumption have started to pick up, but the organic forces driving consumption demand are not yet sufficient. We have seen different paces of recovery for different categories as well as changes in the demographic structure and people’s lifestyles and spending patterns. JD has taken initiative to embrace the new external environment and industry dynamics in the post-COVID era. 2023 is a year of proactive adjustment for JD and a year that will set a solid foundation for JD’s long-term development. Here, I will go through our major adjustments in three areas and some of the progress we have achieved so far.