JD.com, Inc. (NASDAQ:JD) Q2 2020 Earnings Conference Call - Final Transcript

Aug 17, 2020 • 07:30 am ET


JD.com, Inc. (NASDAQ:JD) Q2 2020 Earnings Conference Call - Final Transcript


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Hello and thank you for standing by for JD.com's Second Quarter 2020 Earnings Conference Call. At this time, all participants are in a 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'd now like to turn the meeting over to your host for today's conference, Ruiyu Li.

Ruiyu Li

Thanks, operator, and welcome to our second quarter 2020 earnings call. Joining today on the call are Mr. Richard Liu, JD.com Group CEO; Mr. Lei Xu, CEO of JD Retail; Mr. Zhenhui Wang, CEO of JD Logistics; Sandy Xu, our CFO; and Professor Liao, our CSO. For today's agenda, our CFO, Sandy will discuss highlights for the second quarter of 2020 and other management will join the Q&A session.

Before we continue, I refer you to our Safe Harbor statements in the earnings press release which applies to this call as we will make forward-looking statements. Also, this call includes discussions of certain non-GAAP financial measures. Please refer to our earnings release, which contains a reconciliation of the non-GAAP measures to the most directly comparable GAAP measures. Finally, please note unless otherwise stated, all figures mentioned during this conference call are in RMB.

Now, I would like to turn the call over to our CFO, Sandy. Sandy, over to you.

Sandy Ran Xu

Hello, everyone. Thanks for joining us today to discuss our second-quarter results and how we position our business. Stepping into the second quarter, we were facing a constantly evolving macro-environment with unprecedented complexity and opportunity. We are proud that JD played an important role to help our suppliers and users in these extraordinary times and contribute to the society.

As the domestic consumption is slowly recovering from the disruption brought by the pandemic, both the release of pent-up demand and a structural shift of consumer purchasing behavior from offline to online have added to our strong performance in the quarter.

More importantly, we came out of the quarter stronger than ever before. Our long-term strategy of investing in supporting IT technologies and logistics capability. Our long-term focus on customer experience and care for employees, and our persistence to expand product offerings to all categories, all have borne fruits and made our significant progress more sustainable and resilient.

As a result, we delivered solid financial and operating results in the second quarter and achieved a number of important milestones. First, we successfully completed our secondary listing on the Main Board of Hong Kong Stock Exchange on June 18, our 17th anniversary, with total [Indecipherable] proceeds of approximately HKD34.6 billion or $4.5 billion.

We [Indecipherable] our secondly listing in Hong Kong marked an important step for us to provide favorable conditions, supporting the execution of our long-term strategy and further enhance our shareholder investments.

Second, we recorded a record high anniversary promotion with accelerated growth.

Third, over 80% of our new users added in the quarter [Technical Issues] came from lower-tier cities, the highest level on