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    Kenneth Fong • UBS Group AG

    Kenneth Fong's questions to JD.Com Inc (JD) leadership

    Kenneth Fong's questions to JD.Com Inc (JD) leadership • Q2 2025

    Question

    Kenneth Fong from UBS Group asked for details on the strategy and financial impact of investments in new business initiatives, including effects on revenue, profit targets, and shareholder return policies. He also questioned the drivers behind the sustained robust growth in the general merchandise category.

    Answer

    Sean Zhang, Head of IR, stated that new business investments in areas like food delivery and international expansion are centered around JD's core supply chain to enhance user experience. He affirmed the company's commitment to shareholder returns through dividends and buybacks, viewing the investments as crucial for long-term growth. The strength in general merchandise was attributed to enhanced operational capabilities in the supermarket category, particularly the 1P model and improved user conversion.

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    Kenneth Fong's questions to JD.Com Inc (JD) leadership • Q1 2025

    Question

    Kenneth Fong inquired about key metrics for the food delivery business, such as user retention, cross-selling, and unit economics, and asked how AI is being applied to enhance JD's advertising system and other business segments.

    Answer

    CEO Sandy Xu stated that while daily food delivery orders are approaching 20 million, it is too early to share detailed unit economics as the focus is on building fundamental capabilities. She noted healthy repeat rates and initial cross-selling into supermarket categories. Regarding AI, Ms. Xu detailed its application across the supply chain: on the demand side (search/recommendation), supply side (merchant tools), and fulfillment (automation). She emphasized that AI is driving higher ad conversion rates and that AI agents are being developed to help merchants improve campaign effectiveness.

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    Kenneth Fong's questions to JD.Com Inc (JD) leadership • Q4 2024

    Question

    Kenneth Fong asked about JD.com's investment strategy for new initiatives like fashion and instant retail, and how management plans to balance growth with profitability. He also requested details on the strategy, scale, and margin impact of the company's food delivery initiative.

    Answer

    CFO Ian Shan stated that investments remain ROI-focused and disciplined, centered on supply chain and user experience. He noted that while established categories like electronics will drive profit, emerging areas like apparel and on-demand retail are in earlier growth and mind-share-building phases. CEO Sandy Xu added that food delivery is a natural, strategic extension of the core retail business, not a standalone venture. She emphasized it is in a very early, disciplined exploration stage, aimed at enriching use cases and enhancing long-term user value and company profitability.

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    Kenneth Fong's questions to JD.Com Inc (JD) leadership • Q2 2024

    Question

    Kenneth Fong of UBS Group AG inquired about JD.com's low-price strategy amidst market shifts and the timeline for monetizing its third-party (3P) platform ecosystem as competitors increase their focus on monetization.

    Answer

    CEO Xu Ran affirmed that JD's low-price strategy is unwavering and rooted in supply chain efficiencies rather than short-term subsidies. CFO Ian Shan explained that 3P monetization is a long-term goal that will naturally follow the growth of the ecosystem, which is currently focused on expanding its merchant base and improving user metrics. He noted positive trends, including recovering commission revenues and double-digit growth in 3P advertising revenue.

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    Kenneth Fong's questions to PDD Holdings Inc (PDD) leadership

    Kenneth Fong's questions to PDD Holdings Inc (PDD) leadership • Q1 2025

    Question

    Kenneth Fong of UBS Group asked for details on the upgraded RMB 100 billion support program, including how it will be delivered to merchants and its long-term financial impact. He also questioned how PDD is responding to national subsidy programs, given the inherent limitations of its third-party marketplace model.

    Answer

    Executive Director and Co-CEO Zhao Zhao Zhen detailed the RMB 100 billion support program, explaining it involves substantial financial commitments to expand support from top-tier to small and medium-sized merchants. On the demand side, it includes consumer give-back initiatives and direct discounts. He also stated that PDD is actively responding to national subsidy programs by launching dedicated channels, providing additional coupons, and benchmarking prices to ensure competitiveness, accepting that these investments may weigh on short-term profitability.

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    Kenneth Fong's questions to PDD Holdings Inc (PDD) leadership • Q4 2024

    Question

    Kenneth Fong of UBS noted the recent slowdown in revenue growth and profit fluctuations, asking for the near-term outlook on these trends. He also asked for more detail on the company's long-term goals for platform responsibility and how this is balanced with duties to shareholders.

    Answer

    Executive Jun Liu explained that short-term fluctuations in revenue and profit are expected due to increased investments in the platform ecosystem and are part of the long-term strategy for sustainable growth. Co-CEO Jiazhen Zhao elaborated on platform responsibility, stating that it aligns with long-term shareholder accountability. He highlighted initiatives supporting quality merchants, agriculture, and remote regions as investments that create a virtuous cycle, ultimately driving sustainable growth and long-term returns for all stakeholders.

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    Kenneth Fong's questions to PDD Holdings Inc (PDD) leadership • Q3 2024

    Question

    Kenneth Fong inquired about the progress of the company's merchant support initiatives and future plans, and also asked for management's perspective on its global business, the evolving external environment, and future international strategies.

    Answer

    Co-CEO Jiazhen Zhao detailed the progress of the CNY 10 billion fee reduction program, highlighting lower operational costs for merchants and logistics fee reductions for Western China. Executive Lei Chen addressed the global business, stating the company is proactively engaging with stakeholders to enhance service standards and compliance, while acknowledging that competition and external factors will create volatility.

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    Kenneth Fong's questions to Alibaba Group Holding Ltd (BABA) leadership

    Kenneth Fong's questions to Alibaba Group Holding Ltd (BABA) leadership • Q4 2025

    Question

    Kenneth Fong asked about the recent announcement of a significant investment in the instant commerce business, seeking details on the investment plan, the timing of this strategic move, and its potential impact on the profitability of the Local Services group, especially given intensified competition.

    Answer

    Fan Jiang, CEO of Alibaba e-commerce Business Group, described the move as a natural evolution, leveraging Taobao's vast user base, mature merchant ecosystem, and robust logistics. CEO Yongming Wu added that initial trials have exceeded expectations in both scale and efficiency. He emphasized the strategic goal of driving higher user frequency on the Taobao app and creating synergies between hyperlocal and nationwide e-commerce. Wu confirmed the company will invest aggressively in the short term to acquire users.

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    Kenneth Fong's questions to Alibaba Group Holding Ltd (BABA) leadership • Q4 2025

    Question

    Kenneth Fong asked about the strategic rationale and timing behind the significant new investment in the instant commerce business. He also inquired about the potential impact of this investment on the profitability of the Local Services group, particularly given the intensified competition in the food delivery space.

    Answer

    Jianfeng (Fan Jiang), CEO of Taobao and Tmall Group, described the move as a natural evolution, leveraging Alibaba's long-standing capabilities in the space and its advantages in user base, merchant ecosystem, and logistics. CEO Yongming (Eddie) Wu added that initial trials have exceeded expectations and the investment aims to drive user frequency on the Taobao app and create synergies between local and nationwide e-commerce, with a short-term focus on aggressive user acquisition.

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    Kenneth Fong's questions to Alibaba Group Holding Ltd (BABA) leadership • Q2 2025

    Question

    Kenneth Fong asked for an outlook on the Cloud Intelligence Group's future profitability, especially given recent price reductions in the market.

    Answer

    Executive Yongming Wu explained that cloud profitability is driven by technology and scale advantages. He characterized the recent reduction in API token prices as a long-term investment to grow the user base. By attracting more users to the platform with lower-cost models, the company expects to drive higher consumption of its broader suite of compute, storage, and database products, ultimately boosting long-term profitability.

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    Kenneth Fong's questions to Alibaba Group Holding Ltd (BABA) leadership • Q1 2025

    Question

    Kenneth Fong asked for an explanation of the quarter's high tax rate and the significant decline in free cash flow, questioning if the negative impacts from AI investment and direct sales reduction would normalize.

    Answer

    CFO Toby Xu clarified that the adjusted tax rate is stable and the GAAP rate is skewed by one-off items. He attributed the free cash flow decline to increased AI infrastructure CapEx and a temporary working capital outflow from the planned scaling down of certain 1P direct sales businesses. He expects this working capital impact to stabilize as the business sizes stabilize.

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    Kenneth Fong's questions to Alibaba Group Holding Ltd (BABA) leadership • Q3 2024

    Question

    Kenneth Fong from UBS questioned the key drivers behind the strong revenue acceleration in both domestic (TTG) and international (AIDC) e-commerce and asked for the margin outlook for both segments.

    Answer

    CEO Yongming Wu stated that for domestic e-commerce, the strategy is to enhance user experience and stabilize market share, which requires continued investment. For international e-commerce (AIDC), he noted a clear path to profitability driven by optimizing business models. CFO Toby Xu added that for the Taobao and Tmall Group, margin is a balance between investments in user experience and revenue-driving initiatives, and the group remains in an investment phase.

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