JD.com, Inc. (NASDAQ:JD) Q3 2022 Earnings Call Transcript

And for JD’s supply chain services, we are now serving over 8 million active enterprise customers. This includes over 90% of Global 500 companies who operate in China and nearly 70% of the so-called specialized and sophisticated SMEs. And we also provide some specialized supply chain services to the manufacturing and energy fields. At the same time, JD’s supply chain has been connected with millions of small and medium/small stores across China in over 300 cities. There are many forms, I won’t just elaborate. And we are not only providing the last-mile solutions on their sales and services but also helping them on the first mile of the supply chain in upstream. This has been a very effective support for them to drive more traffic and lower their cost and improve their business efficiency.

And here, I just want to add that JD.com generates rational profits. And we’re running based on the low cost. And we fully understand the difficulties for the SMEs. They work — they do their business in the offline scenarios. So while we are doing the supply chain support for them, we don’t want to eat their profits. We want to form synergies with them. And together, we build rational profit. So this will not make us as some other companies who are entering the entering this offline market and generate also profit. This is not something I think rational. And lastly, I want to mention that in 2020, JD has launched our rural revitalization initiatives named — called March to Rich Plan. And this plan has driven tens of billions of industrial output in the rural areas and helping millions of farmers to increase their income.

And we feel confident that — we set a goal to achieve CNY 1 trillion of industrial output under this program in rural areas within 3 years’ time. And we can accomplish this ahead of the schedule. And so all of these are our understanding as a new type, real economy company. However, we know we are not doing enough. We are still improving ourselves, improving our capabilities. However, this is the goal we set, and we will stick to it.

Operator: Thank you. We are now approaching the end of the conference call. I will now turn the call over to JD.com and Sean Zhang for any closing remarks.

Sean Zhang: Thank you for joining us on the call today and for your questions. If you have further questions, please contact me and our team. We appreciate your interest in JD.com as always, and looking forward to talking to you next time again. Thank you.

Operator: Thank you for your participation in today’s conference. This concludes the presentation. You may now disconnect. Good day.