Hello, and thank you for standing by for JD.com's first quarter 2022 earnings conference call. At this time, all participants are on a listen only mode. After management's prepared remarks, there'll 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, Mr. Sean Zhang, Director of Investor Relations. Please go ahead. Thank you, Michelle. Good evening and good morning, everyone. Welcome to our first quarter 2022 earnings conference call. Joining us on the call today are Mr. Lei Xu, our CEO, and Ms. Sandy Xu, our CFO. For today's call, Lei will kick off with opening remarks, and Sandy will discuss the financial highlights. After that, we'll open the call to questions for analysts. Before we continue, let me remind you today's call 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. Also, during this call, we'll discuss certain non-GAAP financial measures. Please also refer to our earnings press release, which contains a reconciliation of non-GAAP measures to the comparable GAAP measures. Finally, please note unless otherwise stated, all figures mentioned in this call are in RMB. Now, I would like to turn the call over to Mr. Lei Xu, our CEO. Xu. [Foreign language] Hello, everyone. This is Xu Lei. Thank you for joining JD.com 2022 first quarter earnings call. [Foreign language] Since the start of 2022, we have seen many challenges arise in our external environment, including the COVID resurgence, supply chain disruptions, and soft consumer sentiment, among others. As a supply chain-based technology and service provider, JD is strongly committed to social responsibility corporate citizenship. Thanks to the supply chain that we built over the years, we are able to take concrete action to help ensure supply of daily necessities and to mitigate the impact of the pandemic on society and economy. JD's solid business foundation positions us to navigate the current challenges, which we believe are short-term in nature. In the first quarter, we once again delivered high quality results thanks to our supply chain capabilities and resilient business model. Our total revenues saw a solid year-on-year growth of 18%. This reflects the increasing trust we have gained from our consumers and business partners. It also demonstrates that we have better control across our entire business process and supply chain. Therefore, we possess greater visibility than the overall market during times of change. Moreover, we also recorded steady profitability in this quarter, driven by better operating efficiency and more focused business strategies. [Foreign language] In the face of COVID, JD has always fought at the front lines and spared no effort. When coronavirus first broke out in January 2020, we mobilized quickly to establish a special line for Hubei to ensure transport capacity, providing essentials to affected regions, donated protection and medical materials that were in urgent need and launched a set of supportive measures for our merchants and suppliers. This time, facing the more transmissible Omicron variant, JD once again fully leveraged our supply chain and mobilized all of the group's forces to fight the epidemic and ensure supply of daily necessities across China. Taking Shanghai as an example, JD Retail, JD Logistics, JD Health, Dada, and other business segments have sourced goods, allocated transport and logistics resources, and delivered tens of thousands of tons of supplies to Shanghai, including staple foods, medicines, baby care products and more. We have also recruited and deployed over 4,000 front line employees to fully support operations and deliveries in Shanghai. On behalf of JD, I'd like to express our most sincere gratitude and respect to our employees, especially those working on front lines, for their selfless devotion and dedication. In addition, as a new type of real economy enterprise, JD has also introduced a series of relief and assistance initiatives for merchants and SMEs that have suffered from the epidemic in order to lower their operating costs and help them gradually resume consumption. JD's Supermarket also works together with JDDJ to help retail stores in Shanghai to resume online operations and provided delivery manpower in a timely manner by leveraging Dada's problem-solving solution. We hope to join hands with all of our partners to tackle these challenges and difficulties and together contribute to stabilizing people's livelihoods and the economy. [Foreign language] In times of challenges, JD always looks to harness our advantages and find solutions that move the needle. Firstly, we have made proactive adjustments to our user strategy. With a steady expansion of our user scale, we have been increasingly focused on improving user quality. In Q1, our annual active users reached 580 million. We're also proactively optimizing and adjusting the investment pace in our new businesses based on our analysis of the macro and industrial landscape. In Q1, we further shifted focus to the regions where we saw improving scale and efficiency, as well as better synergies with our core retail business. In such regions, Jingxi's efforts to improve user experience, sales channels, local supply chain as well as digital operations have begun to bear fruit. As we are proud that Jingxi's supply chain capabilities and business models have proven themselves valuable in the fight against the epidemic. For example, since Beijing's COVID resurgence starting at the end of April, Jingxi, our community group purchase business, has seen average daily GMV and new users nearly double with better operating efficiency and BEP. In the future, we will continue to optimize overall operating efficiency and drive sustainable high quality growth with healthy cash flow and profitability. 面对挑战，我们也看到一些机遇和积极的趋势。首先，京东在疫情保供方面做出的贡献，对企业社会责任的主动承担，让我们用行动践行了京东不负每一份热爱的朴素理念，也让我们的消费者和合作伙伴的信赖和品牌美誉度大幅提升，这对我们长期的发展具有历史性的意义。第二，我们正面迎击疫情的考验，让京东的供应链能力和组织调度能力得到了难得的压测和迭代的机会，从而进一步加强。第三，在不确定性加重的宏环境里，京东依旧坚持战略定力和长期主义，持续打造供应链中台、平台生态建设、全渠道拓展及基础设施优化的核心能力，并且在更加严格地控制投入节奏、注重效率的同时，帮助合作伙伴更好降本增效，抵御外界因素的冲击，取得经营的确定性，从而在疫情影响的特别时期，京东得到了合作伙伴更大的认可。 尤其在今年京东618大促的准备过程中，我们看到商家报名的积极性和大促参与度明显高于往年，让我们很受鼓舞。第四，复杂严峻的疫情和经济形势，让许多企业开始重新审视自身的销售和供应链履约体系。越来越多的企业意识到一体化供应链物流服务不可替代的重要价值，这也进一步促进了京东物流外部客户的收入在一季度继续保持快速增长。外部贡献接近总收入的六成，并达到历史新高，带动物流整体收入结构持续优化。而且借助精细化运营能力的提升和客户结构的持续改善，京东物流盈利状况同比改善。同时，我们也按计划稳健推进了物流基础设施能力的建设。截止一季度末，京东物流运营的仓库数量接近1,400个，管理的物流基础设施总面积已超过2,500万平方米。这些都为我们巩固长期行业领先地位和进一步扩大市场份额奠定了关键基础。 The current challenges also provided JD with upside opportunities. Firstly, our efforts and commitment to social responsibility during COVID enabled us to fulfill social society's trust and resulted in stronger reputation and appreciation among our users and business partners. This is highly significant for our long-term development. Secondly, JD's supply chain, as well as our organizing and coordinating capabilities, have withstood the pressure of the epidemic and become stronger. Thirdly, despite increasing uncertainties, we have persistently executed on our long-term strategies and built up core competencies such as our supply chain middle platform, marketplace ecosystem and omni-channel and infrastructure capabilities. In pursuit of more disciplined investment pace and higher efficiency, JD also helps business partners to generate higher efficiency and lower cost without external disruption. As such, we have gained full recognition from our business partners during the epidemic. We are encouraged to see that merchants' participation and engagement has reached a higher level than previous years in the preparation for the upcoming 618 Grand Promotion. Fourth, the complex epidemic situation and macro economy have caused companies to reexamine their sales and supply chain and procurement systems. Many of them have realized the irreplaceable value of integrated supply chain logistics services. This helped to drive the growth of JD Logistics revenue from external customers, which accounted for a record high of nearly% of total revenue in Q1, further optimizing JDL's revenue structure. Moreover, in this quarter, JDL's profitability improved year-on-year, thanks to its optimized operations and better customer structure. JDL also made steady progress in building up its logistics capacity. By the end of Q1, it operated approximately 1,400 warehouses, with a total gross floor area of over 25 million square meters under management. All of these advantages constitute a solid foundation for JDL to further expand in its industry-leading position and market share over the long term. 诚然，2022年的上半年对于很多行业、很多企业都充满了挑战和不确定性。我相信这个时候企业更应该有一个长期的思考框架，坚持长期的战略定力和短期的战术动态调整相结合。京东成立的十九年里，一直充满了挑战，但每一次挑战都给京东带来了新的成长和发展的机遇。今天，京东以供应链为核心的商业逻辑非常清晰，核心竞争力具有明显的差异化，商业模式的韧性在不断地被证明和加强。作为始终坚持服务实体经济的新型实体企业，今天的京东比过去任何时候都更稳健。我们在为未来的长期发展不断积累势能。放眼未来，我们充满信心和决心。我们相信京东在未来很长一段时间里将取得更健康、高质量的发展。感谢大家对京东的信任和支持。以上是我今天的分享。下面我把话筒交给京东集团CFO Sandy。 It is evident that the first half of 2022 has brought many challenges and uncertainties. At this time, I believe it is important for companies to have a long-term mindset, remain unwavering on strategic priorities while maintaining flexibility to adapt to short-term dynamics. JD has experienced many challenges over the past 19 years, but has taken each one as an opportunity for the company's further development. Today, our business logic that puts the supply chain at the core is very clear. Our core competency is highly differentiated, and the resilience of our business model has been proven many times and continues to evolve. As a new type of enterprise that is based on and always serves the real economy, JD today is on ever more solid ground. Looking ahead, we will continue to build upon our strength. We remain confident and determined to achieve healthy, high-quality, long-term development. Thank you all for your support and trust. This concludes my remarks. Now I'd like to give the floor to Sandy. Thank you, Lei. Hello, everyone. The latest Omicron outbreak across several regions in China in the past several months has been challenging for everyone. I would like to echo what Lei said and add my thanks to our colleagues, especially the frontline workers, for their heroic efforts in serving our customers and providing companies with essential supplies during this critical time. In the first quarter, net revenues reached RMB 240 billion, representing solid 18% year-on-year growth against the high base from last year. In face of various uncertainties, we have been increasingly focusing on serving our users well and thereby increasing user lifetime value. Our annual active user base reached a total of 580.5 million, while average GMV per user in the last 12- months continued to increase. We are also glad to see improvements in other user quality metrics. For example, average orders per user recorded a healthy increase for both new and repeat customers. Our quarterly average DAU has been trending up and growing over 20% year-on-year, reflecting deepening user engagement. Not only did we see a spike in DAU growth during the Spring Festival Gala, effectively promoting JD brands nationwide, we were also inspired to live up to our users' increased trust when we saw a notable increase in DAU during COVID's resurgence in March and April. As our revenue base continued to diversify, we also saw the varying impact of COVID on different segments in Q1. Our net product revenues, which mainly consist of our 1P retail business, grew at a solid 17% year-on-year, demonstrating remarkable resilience underpinned by our proprietary supply chain infrastructure. Net service revenues continued to grow faster at 26% year-on-year, further diversifying our revenue base. While marketplace and marketing revenues grew at 25% year-over-year, our advertising revenues still grew at nearly 30% year-over-year, in line with the improving ROI of our advertising services. Our marketplace ecosystem continued to optimize as JD Retail continued to grow third-party merchant base by over 20% year-over-year in Q1. This showed that the support and value creation offered by JD are resonating with more and more third-party merchants who are struggling in a time of uncertainties. Logistics and other services revenues grew by 28% year-over-year in Q1 as JDL continued to gain traction from external customers with its uninterrupted supply chain services during the Chinese New Year. I will discuss more about it later. Now let's turn to our segment performance. JD Retail continued to deliver a resilient top line growth amid the latest COVID developments. JD Retail's revenue reached RMB 218 billion in Q1, growing at 17% year-on-year in the quarter. The COVID impact began to appear across the performance of our categories. General merchandise revenues grew 21% year-on-year in Q1, outperforming the electronics and home appliance category growth of 14% year-on-year. Since the latest outbreak, customers notably shifted their purchases from non-essential products to essential items. Our supermarket category saw stronger demand with its order volume outgrowing JD Retail's in Q1 and in the first half of Q2, and attracted the most number of first-time buyers among all categories. Although our supply chain was heavily disrupted in certain regions, JD Retail and JD Logistics quickly worked together to source and dispatch essential products by utilizing our nationwide warehouse and delivery networks. Once again, this demonstrated our customer-first operating philosophy and our unique business model that enables us to quickly respond to unexpected changes and mobilize our proprietary supply chain capabilities in upholding customer service. We even went beyond our traditional B2C central warehouse model to address pressing customer needs. Growth of our omni-channel supermarket, including 7Fresh, accelerated in Q1 as they provided our customers with timely omni-channel fulfillment for grocery and household staples in this critical time window. Moving on to JD Retail's profitability. Operating margin was 3.6% this quarter, compared with 4% a year ago, primarily due to the marketing expenses in relation to the Spring Festival Gala sponsorship and, to a lesser extent, the softer fulfilled gross margin during the outbreak. That said, we expect to see additional COVID-related costs and expenses, particularly in fulfillment, as well as margin impact caused by product mix shift due to the uneven performance of our different product categories in the short term. JD Logistics, or JDL, maintained a healthy top-line growth with an improved revenue mix and continued year-on-year margin improvement. Its Q1 revenues grew 22% year-on-year to RMB 27 billion. Revenues from external customers maintained growth momentum, driven by both the number and ARPU of external customers, and once again achieved a record high revenue contribution of 58%. JDL acted quickly and spared no effort to ensure continued fulfillment of essential products to customers and support our business partners in the COVID-affected areas. As a result, it incurred additional costs and expenses due to the operational difficulties and disruptions, particularly as it mobilized workforce and resources across different regions, while some of our warehouses and the delivery stations were under lockdown restrictions in certain affected areas. However, we still found some silver linings. The customer awareness of the unique advantages of JDL's integrated supply chain logistics services has meaningfully increased, boding well for the future customer conversion and total addressable market expansion. Thanks to the growth of external business and continuous improvement in operating efficiency driven by technology, JDL was able to absorb the additional costs to a certain extent and continued to improve its margin in Q1. Its non-GAAP operating loss narrowed by more than 55% from a year ago. JDL has once again improved the design and efficiency of its nationwide supply chain network in this challenging market situation. Since we received all required regulatory approvals and completed the additional investment in Dada Group by the end of February, we consolidated the financial results of Dada in our segment reporting starting from March this year. During the consolidation period, Dada reported revenues of RMB 688 million and an operating loss of RMB 191 million. Dada is an indispensable part of our omni-channel strategies. Shop Now, the on-demand retail brand that we launched together on JD's main app, has been expanding at a triple-digit growth rate year-on-year in Q1 and now made its service available to users in over 400 cities. We are excited to further expand our supply chain service network in the fast-growing on-demand consumption with Dada. Finally, turning to our new businesses segment, where we took proactive optimization measures to improve operating efficiency, particularly in Jingxi business. We further focused our resources in a fewer number of selected markets to strengthen local supply chain capabilities and improve the UE model. These measures resulted in the moderation of revenue growth to 12% year-on-year, but a meaningful reduction in operating loss of nearly RMB 1 billion sequentially in Q1. Our JD Property business remained a profitable business in a hypergrowth stage. It has successfully acquired a controlling stake in China Logistics Property Holdings, or CLP, further enhancing its logistics infrastructure. JDP has also entered into definitive agreements for its approximately $800 million non-redeemable Series B financing in the quarter. So far, you can tell that JD's unique supply chain-based business model not only ensured our capabilities in navigating different economic cycles, it also allowed us to proactively and quickly adjust our business strategies for better sustainability. Moving to the consolidated bottom line. Total expense ratios in Q1 declined by 53 basis points year-on-year. As a result, Q1 non-GAAP net income attributable to ordinary shareholders was RMB 4 billion with non-GAAP net margin of 1.7%. Our Free Cash Flow for the trailing 12- months this quarter was healthy at RMB 27.2 billion. By the end of Q1, cash equivalents, restricted cash and short-term investments grew to RMB 186 billion, thanks to the stable cash flow contributed by our core businesses in the past few years. Earlier this month, we also announced a special cash dividend of $0.63 per ordinary share, or $1.26 per ADS, which reflects our confidence in JD's long-term growth trajectory and strong balance sheet. While we continue to explore the high and exciting investment opportunities, we constantly take a holistic view and consider different measures as appropriate to give back to our shareholders in the long term. Looking ahead, the Omicron situation remains very fluid and adds a lot of variables to our business. The magnitude and duration of the COVID impact will present many uncertainties to the overall consumer behavior, supply chain, and our fulfillment infrastructure. One thing for certain, after 19 years of efforts in building our core supply chain competencies and differentiated business model, we are uniquely positioned to swiftly adjust and respond to any dynamic situation, and able to be among the first to help our customers, partners, and communities during this tough time. When the COVID disruption subsides, we are confident that JD will emerge stronger with expanded consumer mindshare, more trusted partnerships, and deeper ties with our communities and users. All of this will reinforce our mid to long-term growth prospects. This concludes my prepared remarks, and we can now move to the Q&A. Thank you. The question- and- answer session of this conference call will start in a moment. In order to be fair to all callers who wish to ask questions, we will take one question at a time from each caller. If you have more than one question, please request to join the queue again after your first question has been addressed. Our first question comes from Ronald Keung with Goldman Sachs. Your line is open. Thank you. [Foreign language]. Thank you, management. My question would be on when we compare with two years ago, that we've gained a lot of share and grew much faster than industry during the first quarter in the COVID outbreak. We've seen some of the industry numbers for April were relatively weak. I want to know how we are doing in April for our retail business compared with the industry, some of the differences that we see versus two years ago, and our targets and how we see the second quarter and second half growth as a result. Thank you. [Foreign language] This is Xu Lei. Let me answer your question. [Foreign language] We have this round of the COVID outbreaks that affected Shanghai and other regions also posed a huge challenge to China's retail industry as well as JD.com. [Foreign language] Let me share with you some observations on the difference between the outbreak now and two years ago. [Foreign language] For the Omicron virus this time, it's highly contagious and spreads rapidly. Its R0 value is 9.5, twice that of Delta, while its generation time is only 2.83 days. Also, a certain proportion of the infected people have no symptoms, and making it more difficult to track and detect. As the overall virus protections and control policies remain unchanged. [Foreign language] There are more cities and consumers affected by the epidemic, and the supply chain is under much bigger impact than that in 2020 and 2021. In the past two years, the impact of COVID actually brought from a positive effect to the Internet and e-commerce sector as there were only limited number of regions affected for a limited time. During that time period, some offline businesses have been shifted online at a accelerated pace. This time around, both the online and offline enterprises are heavily affected. Uh, [Foreign language] The lockdowns of our warehouses and delivery stations in certain key regions have led to fulfillment challenges as both inbound and outbound shipping of merchandise from warehouses are affected. Fulfillment requires much longer time. This has resulted some order cancellation rate increase in April, and the situation is getting better in May, but the cancellation rate remains a high level year-on-year. Um, [Foreign language] This year for China's four big cities, the first-tier cities, Beijing, Shanghai, Guangzhou and Shenzhen have all been affected. While Guangzhou and Shenzhen were only affected for a short period of time, and Beijing and Shanghai have been affected for a longer period of time. The sales contribution of the four cities accounts for a higher proportion of JD than the city's contribution in total retail sales in China. Uh, [Foreign language] A majority of brands and merchants lowered budgets at the beginning of the year, considering this year's economic situation. They focused more on profitability. Therefore, the business environment also does not support a high growth from the supply, perspective. Um, [Foreign language] In terms of the categories, besides the supermarket and health related categories which continue to enjoy some high growth, for the markets of electronics and home appliances and apparel categories, the market has been changing dramatically. Um, [Foreign language] Take the IT and electronic categories, for example. In the past two years, due to the global supply shortage and JD's strong supply chain capabilities, we've performed relatively well. This year, this category is faced with the overall sufficient supply, and the price level is going down. Uh, [Foreign language] For the telecommunications or the mobile phone category, due to the price rise and the chip shortage, consumers will need to replace their devices. The cycle has been expanded. Yeah. [Foreign language] For the apparel category, due to the epidemic and the sluggish consumption, there is high level of inventory backlog of spring collections. As a result, many factories are considering skip the production plan for the summer collection. Uh, [Foreign language] The epidemic has affected consumers' income and confidence. The overall consumption is depressed, as you can see from the April statistics, and this especially affected the sales of some large ticket size items. Even user traffic has rebounded in April. We have seen the ticket size is dropping year-on-year in April and May. 前面介绍了整体的今年跟前两年的疫情情况，那下面我再介绍一下我们这个应对的目前的情况。除了之前大家可以看到我们在降本增效上面我们做的一些工作以外，还有两点可以跟大家分享，就是第一点就是我们跟各地政府在持续地不断地沟通，那么京东也成为各地政府的保供企业的名单，那么尽可能地保证了仓储和配送的正常运营和履约。那目前情况看应该得到了大幅度的改善。 In response to the above mentioned situation, here are two aspects we have been doing. First, we have been conducting active communications with local government and getting on a white list of enterprises for essential supply of more regions, and also to ensure the normal operations of our warehouses and the fulfillment facilities and the situation is getting improved now. 第二个就是关于618的准备。我知道很多投资人也比较关心今年的618，确实因为这个疫情等等原因，那么品牌商跟商家的销售压力是非常大的。所以呢，我们看到就是今年品牌商跟商家参与京东618推广年会更积极，我们也希望在疫情好转的前提下呢，能够利用好这次销售节点，尽可能地提升二季度的经营业绩。 On the preparation of the 618 Grand Promotion, we have seen that majority of brands and merchants are under pressure this year, therefore, they have been more proactive in participating in JD's 618 Grand Promotion than in previous years. We hope that with this event, we can support them to boost their sales and the Q2 performance provided the COVID situation is getting better. 最后我再整体地总结一下这个疫情跟供应链的关系。 Finally I just want to share a little bit more of the relationship between the supply chain and the epidemic. 第一呢，就是今年整体的宏观的环境呢，加上疫情的影响呢，可以看到让现代化的供应链的这个重要程度啊，已经得到了国家跟行业的高度认可了，而且是这个已经有非常明确的信号跟信心了。 First, given the current macro environment coupled with the impact of the pandemic, it has led the government and industries to have a very high recognition on the importance of the modernized supply chain, and this has been a very positive and clear signal. 第二个呢，关于京东的供应链能力呢，其实不仅仅是大家平时看到的我们的物理的，比如说我们的仓储、配送、履约、网络等等，这个大家能够看到的，而实际上呢，还有我们十九年以来沉淀的我们的算法能力，行业的knowhow，然后呢甚至于一些重大的品牌商的这个供应链的协同，这些呢，我觉得才是，结合起来应该才是京东真正的供应链的能力，而不是某些企业在终端的补贴，或者是上游的现金采买可以能够快速实现的。 Second, when JD talk about our supply chain capabilities, it does not only refer to those tangible things people know about, our logistics, our logistics warehouses, vehicles, it is also our algorithm and the industry know-how that we have accumulated over the years, as well as our synergy capabilities with some key brands. All of this is a combination of the tools, the expertise, the know-how, and our collaboration with our brands. All of these cannot be immediately achieved through some excessive subsidies or cash procurement. 最后一点就是，供应链讲究的是稳定性和确定性。确实疫情，尤其今年的疫情呢，是非常极端和特殊的情况，那么我们呢，会用我们的专业能力和这个履约仓配的能力的这些运用呢，尽可能去破局。目前来看呢，我们得到了我们的合作伙伴跟消费者的认可。 Thirdly, the key point for the supply chain is its stability and certainty. Under the extreme circumstances of the COVID situation, JD will continue to leverage our professional expertise and our infrastructure capabilities to reach some innovative and new solutions in this difficult situation. So far, we have gained recognition among our partners and users and delivered some satisfying performance so far. 好，谢谢。 Thank you. [inaudible]. Our next question comes from Thomas Chong with Jefferies. Your line is open. 晚上好，谢谢管理层接受我的提问。我第一个问题，还是想回到618方面，想问一下，我们预计到618，在物流的情况，大概会是一个什么样的情况？然后还有就是，我们会预计消费者那边的spending那边，会不会出现什么变化？还有就是我们今年准备618跟往年，会不会有什么不一样，还有我们的KPI可以分享一下吗？我第二个问题，想问一下就是，因为现在的疫情还是很不确定，经济也不太明朗。 我们对我们新增用户，还有我们未来新业务的投入，会不会做一个更大的调整呢？然后最后一个问题想问一下我们对我们的 Omni-channel，常年的战略，还有收入的占比，可以分享一下吗？Thanks management for taking my questions. My first question is relating to the upcoming June eighteenth marketing campaign. Can management comment about how we should think about the logistics situation, the consumer sentiment and how are we doing it differently compared to previous years and our KPI? My second question is regarding to our spending, in particular on user acquisitions as well as the investment in the new business. Would we adjust our investment strategies given the dynamic situation right now? Finally, on Omni-channel, can management comment about our long-term strategies as well as the revenue contribution that we should expect? Thank you. 关于618的话，截止到目前为止，我们看到的是全国除上海地区以外，其他的履约情况基本保持正常。每天虽然会有一些因为疫情的零星的，但是对整体的影响并不大。上海地区，因为前一段时间的禁止，所以说我们还会有一部分的订单的积压没有履约。包括618的备货情况，现在除了上海地区以外，基本上也都是有条不紊地按照原计划进行。 Just a more few words from Xu Lei on the 618. We have seen so far that except Shanghai and overall in China, the fulfillment is coming back to a normal operation level. Every day there are some sporadic situations due to the COVID situation. Overall it maintain a normal operation. In Shanghai, there are still a few orders continue to be fulfilled. Overall for the good preparation, it's on the right track. 关于这个品牌商跟商家的话，我前面已经介绍了大家对今年618的这个报名的积极性跟投入的力度，应该来说还是让我们非常满意的，超过了往年。 As for the participating and engagement of brands and merchants to this year's Grand Promotion. They're very active and this is exceeding our expectations and everything is going on the right track. 对于你提到的KPI呢，我想呢主要可能是还是关于销售的情况。那么在现在疫情不确定的情况下以及消费不确定情况下呢，其实我们对KPI呢是没有特别明确的，但是对我们来说呢，保证用户的体验，尤其是大促的用户体验、履约，这对我们来说是永远最重要的。 In terms of the KPI, I think you are thinking of the sales targets. Because we are still facing uncertainties on the COVID situation and the consumption willingness, so we don't have a very clear number to share. However, we continue to focus on improving user experience and our fulfillment efficiency. This is the most important thing. We will safeguard this shopping festival. 关于这个创新业务和用户的情况，我想用中文表达的话应该是这样，叫战略聚焦，效率优先，可持续发展。 For our new business development, we will focus on the priorities, our strategies and focus on efficiency and sustainable development. 那么实际上呢，我们从去年年底开始，我们就已经发现，整个的用户的增长的压力确实很大，而且呢，我们发现应该更多地关注于新用户的质量跟老用户的精细化的运营，那这对我们来说是更重要的。所以在一季度也大家可以看到我们的一些用户质量的指标是在不断地改善的。 for the users growth, there are certain pressures, but we will continue to focus on the operations of the existing users and also the quality growth of the new users. We have seen a positive trend on both sides. 关于新业务的话，我们在一季度进行了调整，将一些短期商业化发展不力的，我们进行了这个关停并转。 On some adjustments and optimization of some new businesses, we have done a series of adjustments on those business that are unable to deliver results after a certain period of time of investment. 而未来的话呢，我们应该还会更进行这个业务的聚焦，所以说我们可能还会持续不断做这项工作。 In the coming period of time, we will continue to prioritize on our core businesses and some other more optimization and adjustment work will be done. 关于全渠道的话，全渠道是京东的长期战略，去年发展的速度非常快，那么今年Q1的业务规模的增长，也是大幅度地高于整个集团的整体水平。那么疫情确实会有一些影响，但是我们对全渠道的资源的投入做了一些有效的控制。本身的全渠道业务包括自营跟合作业务，那么在合作业务上的时候，我们解决了线下企业的到店的困难，也丰富了我们的供应链，满足消费者。那么自建的全渠道业务，应该受疫情影响，但是目前体量并不大，所以说这个影响本身也不是很大。 On JD's omni-channel strategy. In the past year it has delivered very fast growth. In Q1 this business continue a higher than overall revenue growth rate. This COVID situation will not affect our long-term strategies in this aspect, but we will make adjustments on the investment given the macro environment situation. The omni-channel business is composed of two parts with both self-operated and our collaboration with external partners. For this latter business format, we not only help those offline business and the shops to solve the traffic, the user traffic difficulties given the COVID situation. It also helps JD to enrich our supply chain and product variety to satisfy the needs of our customers. Given the impact of the COVID situation, some self-developed omnichannel were affected, but overall the volume is not big and it has limited impact so far. 全渠道的其中的组成部分就是即时零售，同城业务应该说我们一季度的增长得非常好，应该是三位数的增长。目前已经覆盖了全国一千七百多个区县，品类也比较多。小时购业务链接了超过十五万家的实体门店，尤其在疫情期间应该得到了一个快速的发展。 For our on-demand retail business as part of our omni-channel business, it achieved three-digit growth in Q1. So far our Shop Now with the one-hour delivery service has covered over 1,700 counties across the country and providing various product categories. It has been connected with over 15,000 offline stores, and it has experienced rapid growth during the COVID situation. 那么小时购业务是由达达来全面承接的，附用了达达现在的城市服务站的资源和即时配送的网络资源，来加快了整个京东的多种线下零售业态的拓展。那么我们目前跟达达一起合作，我们共同帮助品牌商和线下的零售商去加速了数字化的转型，同时在探索这个全渠道目前还有的红利。那么，随着这部分的消费趋势的逐步显现，应该说我们可能给消费者带来更快、更好、确定性更强的优质服务体验。谢谢。 The Shop Now program is supported by Dada's delivery infrastructure. We are using the existing networks and delivery of Dada to perform our on-demand deliveries. This has accelerated JD's offline business expansion. Currently, together with Dada, we are supporting the digital transformation of more and more brands and offline retailers. Together we explore the dividends of the omni-channel development. As the trends become more and more clear, JD is committed to bring faster and quicker services and user experience with more certainty to our consumers. Thank you. This is Sandy. Thank you. I'll add on a little bit on the revenue and GMV contribution for our omni-channel business. In terms of GMV and revenue contribution, they are both at a level of around 10% of our retail business. That includes our O2O on-demand sales, our 7Fresh offline fresh product business, as well as our offline home appliance franchise store business. Our last question comes from Kenneth Fong with Credit Suisse. Your line is open. 谢谢管理层接受我的提问，也恭喜你们有非常强劲的业绩。我有一个问题是关于成本端的。我们看到第一季度各项的运营成本也控制得很好，我们JD Retail的主业，还有这个新的业务的利润也好于预期。我们在不同的业务线里面，还有哪一些成本的控制的方式呢？未来几个季度我们应该怎么想这个成本控制的趋势呢？我自己翻译一下。Congratulations on another strong set of results. Thank you management for taking my question. Looking back, we did very well in cost discipline and control. Core GMV and new business are both with margin better than expected. How much more and what are the way that we should expect for further cost reduction or optimization over next few quarter? Thank you. Thanks. This is Sandy. Let me take this question. Since mid-March, we have been taking strict cost and expense control measures to step up financial discipline in the face of the challenging external environment. We focus more on cash flow management. For new businesses that yet to show a trend of yearly turnaround, as Lei Xu just mentioned, our operating efficiency improved. We adjusted the investment pace and further focused on fewer selected regions. As a result of all these measures, you know, despite of additional COVID related cost expenses, especially fulfillment, we expect, you know, overall, our group level bottom line, we will try to manage that to be less impacted by the COVID situation compared to top line or GMV. As I mentioned, the control measures just started in mid-March. We will continue that in Q2, and we will manage our profitability and cash flow dynamically based on the overall macro environment. We are now approaching the end of the conference call. I will now turn the call over to JD.com's Sean Zhang for closing remarks. Thank you. Thank you for joining us on the call. If you have further questions, please contact us. Your interest in JD.com, and we look forward to talking to you again next quarter. Thank you very much. Thank you for your participation in today's conference. This concludes the presentation. You may now disconnect. Good day.