Aug 24, 2026 earnings call — Supply chain investments and platform governance
Group revenue was RMB 112.4 billion, up 8% year-over-year.
Revenue $16.5B (est $16.9B) · EPS $2.85 (est $2.72)
Key quotes
"Our CNY 100 billion support program has entered a phase in which our sustained investment is beginning to yield tangible results."
"To date, the platform has introduced more than 150 comprehensive trust and safety measures."
"We have now established last-mile delivery networks across more than 10 provinces and municipalities nationwide, including country-level transit hubs and village pickup points."
Analyst Q&A 3
EU duty impact and first-party brands
Q (Thomas Chong · Jefferies): He asked how the new EU customs duty will affect global order volume and what the growth strategy is for global business. He also asked for an update on the first-party brand rollout and how first-party and third-party products will be positioned and priced.
A: Management said regulatory and compliance changes bring short-term challenges, and cross-border orders will face lower fulfillment efficiency and higher costs. They are adjusting supply chains, optimizing fulfillment, onboarding more local merchants, and building local warehousing while investing in compliance and IP protection. They described the first-party brand as a long-term, selective effort working with manufacturers from product planning to R&D, and said first-party products will complement third-party offerings.
"In the short term, cross-border orders in the affected markets will face lower fulfillment efficiency and higher costs, which will have a considerable impact on those parts of our business." — Lei Chen (CEO·CHAIR)
Warehousing investment and quick commerce
Q (Alicis a Yap · Citi): She asked how the company will prioritize investments in warehouses and delivery over the long term. She also asked how the company views quick commerce and how it will defend user mindshare as same-day delivery grows.
A: Management said investments in logistics and fulfillment are practical and targeted and vary by market depending on where value can be created. In China they focus on last-mile gaps through the RMB 100 billion support program and free shipping to villages, including local service stations in all 177 villages in Hunan, Youxian and more than 100,000 parcels per day in Shandong. They said quick commerce serves different needs and has limited synergies with their core model, so they will focus resources where they have strengths and on two priorities: product supply quality and delivery infrastructure.
"We make prudent and targeted investments where we believe we can create tangible value." — Jiazhen Zhao (CEO·CHAIR)
Merchant health and revenue outlook
Q (Joyce Ju · BofA): She asked how the RMB 100 billion support program has affected merchant health and whether merchants will spend more on advertising. She also asked about consumer spending for the full year and whether platform revenue can outgrow the consumer market.
A: Management said the CNY 100 billion support program is starting to show results after the CNY 10 billion fee reduction in 2024 and has reached major agricultural regions and manufacturing clusters. They gave examples: a Guangdong cosmetics company cut acquisition costs and reinvested profits into a 2-year R&D effort to become patented and national brands, and Zhongshan lighting merchants launched a best-selling product that generated several millions in sales. They said building a healthier merchant ecosystem takes time and they remain committed; Jun Liu added that rural retail sales grew faster than the overall market and the company is focused on fixing supply chain bottlenecks to unlock growth.
"These tangible results demonstrate that our efforts to reinvest in the supply chain ecosystem are working." — Jiazhen Zhao (CEO·CHAIR)