拼多多 (PDD) 2018 Q2 法說會逐字稿

Ladies and gentlemen, thank you for standing by and welcome to the Pinduoduo second-quarter 2018 earnings conference call.

女士們、先生們，感謝大家的耐心等待，歡迎參加拼多多 2018 年第二季財報電話會議。

(Operator Instructions).

（操作員說明）。

I must advise you that this confidence being recorded today, Friday, August 31, 2018.

我必須告訴您，這種信心是在今天（2018 年 8 月 31 日星期五）記錄的。

I would now like to hand the conference over to your first speaker today, Mr. Christian Arnell.

現在我想將會議交給今天的第一位發言者克里斯蒂安·阿內爾先生。

Thank you.

謝謝。

Please go ahead.

請繼續。

Thank you, Rachel.

謝謝你，雷切爾。

Hello, everyone, and thank you for joining us today.

大家好，感謝您今天加入我們。

Pinduoduo's earnings release was distributed earlier today and is available on our IR website at investor.

拼多多的財報已於今天稍早發布，可在我們的投資者關係網站上查看。

Pinduoduo.com, as well as Globe Newswire services.

Pinduoduo.com 以及環球通訊社服務。

On the call today from Pinduoduo are Mr. Colin Huang, Chairman and chief Executive Officer; and Mr. Tian Xu, Vice President of Finance.

今天，拼多多董事長兼執行長黃科林先生接了電話；田旭先生，財務副總裁。

Colin will review business operations and Company highlights, followed by Tian, who will discuss financials.

科林將回顧業務營運和公司亮點，隨後田將討論財務狀況。

They will both be available to answer your questions during the Q&A session that follows.

他們都將在接下來的問答環節回答您的問題。

Now let me cover the Safe Harbor.

現在讓我來介紹一下安全港。

Today's discussion will contain forward-looking statements.

今天的討論將包含前瞻性陳述。

These forward-looking statements involve inherent risks and uncertainties that may cause actual results to differ materially from our current expectations.

這些前瞻性陳述涉及固有風險和不確定性，可能導致實際結果與我們目前的預期有重大差異。

Potential risks and uncertainties include, but are not limited to, those outlined in our public filings with the SEC.

潛在風險和不確定性包括但不限於我們向 SEC 公開提交的文件中概述的風險和不確定性。

Any forward-looking statements that we make on this call are based on assumptions as of today, and we do not take any obligation to update these statements except as required under applicable law.

我們在本次電話會議中所做的任何前瞻性陳述均基於截至目前的假設，除非適用法律要求，否則我們不承擔任何更新這些陳述的義務。

Our earnings press release and this call include discussions of certain unaudited non-GAAP financial measures, such as non-GAAP operating income and non-GAAP net income attributable to ordinary shareholders.

我們的收益新聞稿和本次電話會議包括對某些未經審計的非公認會計原則財務指標的討論，例如非公認會計原則營業收入和非公認會計原則歸屬於普通股股東的淨利潤。

Our GAAP results and reconciliations of non-GAAP measures to most directly comparable GAAP measures can be found in our earnings press release.

我們的 GAAP 結果以及非 GAAP 指標與最直接可比較的 GAAP 指標的調整可以在我們的收益新聞稿中找到。

It is now my pleasure to introduce our Chairman and Chief Executive Officer, Colin.

現在我很高興向大家介紹我們的董事長兼執行長科林。

Colin, please go ahead.

科林，請繼續。

Thank you, Christian, and thanks to everyone for joining us on our second-quarter results discussion and first earning call as a public company.

謝謝克里斯蒂安，也感謝大家參加我們的第二季業績討論和作為上市公司的第一次財報電話會議。

I'm pleased to report that we saw robust growth across all our key operation metrics, which drove the strong financial performance during the quarter.

我很高興地報告，我們所有關鍵營運指標都實現了強勁成長，這推動了本季強勁的財務業績。

Last 12 months GMV grew 583% year-over-year to RMB262 billion, boosted by the more than tripling of our annual active buyers and a doubling of the annual spending per active buyer.

過去 12 個月，GMV 年成長 583%，達到 2,620 億元人民幣，這得益於我們的年度活躍買家數量增加了兩倍多，以及每位活躍買家的年度支出翻了一番。

Over the last 12 months, approximately 344 million users had at least one purchase on our platform, and we had an average of 195 million MAUs during the second quarter of 2018.

在過去 12 個月中，大約 3.44 億用戶在我們的平台上至少進行過一次購買，2018 年第二季度我們的平均每月活躍用戶數為 1.95 億。

These numbers have demonstrated the continued momentum and the rising popularity of the new e-commerce format that we pioneered.

這些數字證明了我們開創的新電子商務模式的持續發展勢頭和日益普及。

Our revenue for second-quarter 2018 grew almost 25 times over the same period in 2017, and 96% over first quarter of 2018 to RMB2.7 billion, primarily driven by our online marketing services, which we launched in April 2017.

我們2018年第二季的營收比2017年同期成長近25倍，比2018年第一季成長96%，達到人民幣27億元，這主要是由我們於2017年4月推出的線上行銷服務所推動的。

Growth of our revenue outpaced the growth of GMV, demonstrating our ability to drive monetization while maintaining strong growth of GMV.

我們的營收成長超過了 GMV 的成長，證明了我們在保持 GMV 強勁成長的同時推動貨幣化的能力。

As this is the first earnings call after we got listed, I would like to take the opportunity to elaborate more about our philosophy behind the business model.

由於這是我們上市後的第一次財報電話會議，我想藉此機會詳細闡述我們的商業模式背後的理念。

We believe value-for-money products have value for everyone.

我們相信物有所值的產品對每個人都有價值。

We strive to offer everyone such products through aggregating demand for each SKUs, so that merchants on our platform are able to offer each SKU at more attractive prices.

我們努力透過匯總每個SKU的需求，為每個人提供這樣的產品，以便我們平台上的商家能夠以更具吸引力的價格提供每個SKU。

In order to effectively aggregate demand, our platform adopted a few innovative features.

為了有效聚合需求，我們的平台採用了一些創新功能。

On one side, we designed our platform to be a browsing and a discovery-based experience.

一方面，我們將平台設計為一種瀏覽和基於發現的體驗。

This feature is effectively attracts traffic, as not only people with clear purchasing intention come to us, but more so for those who just have some scattered time and like to browse what it is interesting.

這個功能有效地吸引了流量，不僅是有明確購買意願的人來找我們，更適合那些時間比較零散，喜歡瀏覽感興趣的東西的人。

On the other hand, we pioneered the team purchase format; and, at the same time, leveraged the popular social networks to encourage users to share and purchase together with their social contacts or strangers.

另一方面，我們首創了團購模式；同時，利用流行的社交網絡，鼓勵用戶與社交聯繫人或陌生人一起分享和購買。

These combined efforts help us achieve the demand aggregation I mentioned earlier.

這些共同努力幫助我們實現了我前面提到的需求聚集。

Furthermore, collective browsing, sharing the purchase actions, also give us an opportunity to understand our users much better, not only from their own actions but also from their social contacts and their influences over -- or from the people they buy and browse with.

此外，集體瀏覽、共享購買行為也讓我們有機會更了解用戶，不僅可以從自己的行為中了解用戶，還可以從他們的社交聯繫和對他們的影響中，或從與他們一起購買和瀏覽的人中了解他們。

As a result, we would be able to recommend more suitable products to our users, aligning and group users' similar demands even better and help them achieve more cost savings, given the bulk volume our merchants could enjoy.

這樣，我們就能夠向用戶推薦更合適的產品，更好地調整和分組用戶的類似需求，並幫助他們在商家可以享受到的大容量的情況下節省更多成本。

As compared to the current players globally, which are mostly focused on solitary efficient shopping, we want to bring our users joy and a sense of connection.

與目前全球玩家主要專注於單獨高效購物相比，我們希望為用戶帶來歡樂和聯繫感。

And as they interact and connect on Pinduoduo, more value-for-money products are naturally made available through a virtuous cycle.

當他們在拼多多上互動、連結時，自然就會有更多物有所值的產品出現，形成良性循環。

We're still far from what we ultimately want to be, but the whole management is working extremely hard towards that.

我們離我們最終想要的目標還很遠，但整個管理階層正在為此付出極大的努力。

Next, I will talk about how we plan to get there and at least the first few steps.

接下來，我將討論我們計劃如何實現這一目標，以及至少前幾步。

We couldn't have achieved this level of growth without the borrowing capacity and the capacity of China's manufacturing base today.

如果沒有借貸能力和今天中國製造基地的能力，我們不可能實現這種水準的成長。

For the past few decades, China has grown to become the largest and one of the best manufacturing base for most of the consumer products sold globally.

在過去的幾十年裡，中國已發展成為全球銷售的大多數消費品的最大和最好的製造基地之一。

Many merchants and factories could effectively arrange for tailor-made products productions if they have visibility on potential orders.

許多商家和工廠如果能夠了解潛在訂單，就可以有效地安排客製化產品的生產。

What they lack, however, is the understanding of consumers and the expertise and funding for branding and marketing to attract enough consumers.

然而，他們缺乏的是對消費者的了解以及品牌和行銷方面的專業知識和資金來吸引足夠的消費者。

Without effective channels to engage consumers, a lot of merchants and manufacturers have difficulty surviving.

如果沒有有效的管道吸引消費者，許多商家和製造商都難以生存。

While, on the other side, consumers are, in effect, craving for more value-for-money products than can be offered by these merchants and manufacturers.

另一方面，消費者實際上渴望獲得比這些商家和製造商所能提供的更物有所值的產品。

What our platform does is to use data analytics to help our merchants better understand user demand and leverage our unique model to quickly aggregate large order volume for their products.

我們平台所做的就是利用數據分析來幫助我們的商家更了解用戶需求，並利用我們獨特的模型快速聚合他們產品的大訂單量。

In this way, those merchants who have previously couldn't afford to run off-line stores or who couldn't afford to spend huge marketing dollars to attract enough traffic to start their online store elsewhere, are given the opportunity to directly engage a large number of consumers and schedule effective productions for popular SKUs.

透過這種方式，那些以前無力經營線下商店或無法花費巨額行銷資金來吸引足夠流量在其他地方開設線上商店的商家，將有機會直接與大型商家互動。有效的生產。

We hope this mechanism, in the longer run, could give birth to many regional brands; that is, brands developed by merchants and manufacturers themselves on our platform and enabled by our platform.

我們希望這個機制從長遠來看能夠催生出許多區域品牌；即商家和製造商自己在我們的平台上開發並由我們的平台賦能的品牌。

In addition, as we help these merchants and manufacturers, more jobs will be created.

此外，當我們幫助這些商人和製造商時，將會創造更多的就業機會。

With over 1.7 million active merchants on our platform today, we see significant opportunity for us to help build the next generation of young Chinese brands.

如今，我們的平台上有超過 170 萬活躍商家，我們看到了幫助打造下一代年輕中國品牌的巨大機會。

Hopefully we could also bring these brands to the global market one day.

希望有一天我們也能將這些品牌推向全球市場。

China will not just be a manufacturing base, but also a place with many world's known original brands tailored to users' need.

中國將不僅僅是一個製造基地，還將成為一個擁有許多世界知名原創品牌、為用戶量身定制的地方。

That's our hope.

這就是我們的希望。

We have a strong engineering culture since the founding of our Company, myself included.

自從公司成立以來，我們（包括我自己）就擁有強大的工程文化。

Many of the core management have engineering background, including key management in operations.

許多核心管理人員具有工程背景，包括營運方面的關鍵管理人員。

We strive to keep this innovative culture.

我們努力維持這種創新文化。

We plan to leverage our engineering know-how to develop our distributed AI capability to become the enabler of different vertical players in the e-commerce ecosystem, including manufacturers, merchants, logistic providers, financial products providers, and among others.

我們計劃利用我們的工程知識來開發我們的分散式人工智慧能力，成為電子商務生態系統中不同垂直參與者的推動者，包括製造商、商家、物流提供者、金融產品提供者等。

We have spent more money this quarter and plan to spend even more in the future to keep upgrading our infrastructure to meet increasing traffic and functionality demands, to continue to improve the accuracy of our algorithm to identify problematic products and accuracy of our products recommendation, as well as to work advancing our distributed AI network models.

我們本季花費了更多資金，並計劃在未來花費更多資金來不斷升級我們的基礎設施，以滿足不斷增長的流量和功能需求，繼續提高我們演算法識別問題產品的準確性和產品推薦的準確性，以及致力於推進我們的分散式人工智慧網路模型。

Agriculture industry is an example of the early success of our business model, and we are happy to see the value we've created for consumers and farmers.

農業是我們商業模式早期成功的一個例子，我們很高興看到我們為消費者和農民創造的價值。

I discussed this on my letter to shareholders earlier, that China's agriculture industry is unique and very different from what the United States has.

我之前在給股東的信中談到了這一點，中國的農業是獨特的，與美國的農業有很大不同。

The arable land of China is scattered; hence, mass industrialized production is more difficult.

中國耕地分散；因此，大規模工業化生產更加困難。

Leveraging our unique team purchase pin model, we have been able to aggregate end-users' demands and link them to many farmers directly, bypassing layers of intermediaries.

利用我們獨特的團隊購買 pin 模型，我們能夠聚合最終用戶的需求，並將其直接與許多農民聯繫起來，繞過層層中間商。

Especially, the information found on our platform could help small to medium farms tailor their produce selection, harvest, and packaging to fit a user's need.

特別是，在我們平台上找到的資訊可以幫助中小型農場客製化產品選擇、收穫和包裝以滿足用戶的需求。

And our platform can quickly gather large order volume for farmers' produce so that farmers don't need to rely on distributors and suffer from low bargaining power.

而我們的平台可以快速聚集農產農產品的大訂單量，讓農戶無需依賴經銷商，也無需承受議價能力低的困擾。

As a result, farmers benefit from a significant increase in their income, while consumers on our platform also enjoy cheaper and fresher products.

結果，農民的收入大幅增加，而我們平台上的消費者也享受到更便宜、更新鮮的產品。

We are proud to have enabled and supported a total of approximately 48,000 merchants located in 330 national-level poverty-stricken counties in China to sell their agricultural products on our platform in 2017.

2017年，我們很自豪地幫助和支持了中國330個國家級貧困縣的約48,000家商家在我們的平台上銷售農產品。

We are already one of the largest agricultural products platforms in China and we plan to do so more.

我們已經是中國最大的農產品平台之一，我們計劃做得更多。

Agriculture is just one of the many industries that can be revolutionized by our business model.

農業只是我們的商業模式可以徹底改變的眾多產業之一。

Similar approach could be applied to small to medium manufacturers, be it in apparel, home, 3C, or other categories, making C2M happen sooner and incubating new brands, creating more jobs, with the ultimate goal to serve our users better.

類似的方法可以應用於中小型製造商，無論是服裝、家居、3C或其他品類，讓C2M更快實現，孵化新品牌，創造更多就業機會，最終目標是更好地服務用戶。

Now, let me talk about the recent development of our IPO.

下面我就來講一下我們IPO的近期進展。

Many investors are interested in the recent reports on infringing and counterfeit products on our platform.

許多投資者對我們平台最近有關侵權假冒產品的報告感興趣。

I would like to take this opportunity to reiterate that we have and will always have zero tolerance for counterfeit products.

我想藉此機會重申，我們對假冒產品始終採取零容忍態度。

We are the first and one of the few platforms in China that have insisted on a 10 times penalty of counterfeit products, and we will not compromise on this.

我們是國內第一個也是為數不多的堅持假貨10倍處罰的平台之一，對此我們不會妥協。

However, we acknowledge that there is still quite a lot to do on eliminating infringement offenses on our platform.

然而，我們承認，在消除我們平台上的侵權行為方面還有很多工作要做。

That being said, we are consciously and vigorously taking steps to improve.

話雖這麼說，我們正在有意識地、積極地採取措施進行改進。

For example, in 2017, we proactively removed a total of 10.7 million problematic products and blocked 40 million links that raised infringement issues.

例如，2017年，我們共主動下架問題產品1070萬件，屏蔽侵權行為連結4000萬條。

The amount of problem products that we proactively removed was 125 times the amount of complaints that we received.

我們主動下架的問題產品數量是我們收到的投訴數量的 125 倍。

We have also partnered with over 400 brands to work together on combating counterfeits, as we continue to step up our efforts to eliminate infringement offenses.

我們也與400多個品牌合作，共同打擊假貨，持續加強打擊侵權行為的力道。

From August 2 to August 9 alone, we closed 1,128 stores, removed almost 4.3 million problem products, and blocked over 450,000 links that had infringement issues.

光是8月2日至9日，我們就關閉了1128家店鋪，下架了近430萬件問題商品，封鎖了超過45萬個侵權連結。

We are working closely with market regulatory authorities to combat counterfeits and infringement offenses.

我們正在與市場監管部門密切合作，打擊假冒和侵權行為。

We have already reported 36 cases recently to the local market regulatory authority, and will be more in the near future.

我們最近已經向當地市場監管部門報告了36起案件，近期還會增加。

Every crisis could be an opportunity.

每一次危機都可能是一次機會。

What happened was a good reminder for us to speed up our efforts to help more merchants establish their own brands with the support of our data in the platform.

發生的事情很好地提醒了我們要加緊努力，借助我們平台的數據支持，幫助更多的商家建立自己的品牌。

With the volume and the supply chain capability, many merchants and manufacturers have -- they don't need to infringe.

憑藉數量和供應鏈能力，許多商家和製造商已經——他們不需要侵權。

In addition, we also plan to invest more vigorously in technology to better combat counterfeits and infringement offenses.

此外，我們也計劃加大技術投入，更好地打擊假侵權犯罪。

We upgraded our search algorithm to direct search results towards official brands, away from problem products, so that merchants would have less incentive to conduct infringement offenses.

我們升級了搜尋演算法，將搜尋結果引導至官方品牌，遠離問題產品，從而減少商家進行侵權行為的動機。

We will also invest in our technological capabilities in keyword edification and filtering and image tag recognition technology.

我們還將投資我們在關鍵字熏陶和過濾以及圖像標籤識別技術方面的技術能力。

Additionally, we are in the process of fully upgrading our merchant on-boarding system and we will integrate our system with the relevant public security authorities to ensure the authenticity of the merchant identity.

此外，我們正在對商家入駐系統進行全面升級，並將與相關公安部門進行系統對接，以確保商家身分的真實性。

We hope that through our continuous effort, more and more merchants will soon come to realize that PDD is a platform that can offer them huge volume due to our effective business model and enable them to grow to the next level, a platform with fair competition among all the merchants, and a virtuous cycle of turning less capable merchants at what we strive for.

我們希望透過我們的持續努力，讓越來越多的商家認識到拼多多是一個可以透過我們有效的商業模式為他們提供巨大流量並讓他們成長到一個新高度的平台，一個與商家之間公平競爭的平台。

We look forward to seeing more merchants composing their own new chapters on Pinduoduo.

我們期待更多商家在拼多多上譜寫屬於自己的新篇章。

We are extremely grateful for the past growth, given China's strong domestic consumption power, and to constantly remind ourselves of our social responsibilities as a platform.

我們非常感謝過去的成長，考慮到中國強大的國內消費能力，並不斷提醒自己作為平台的社會責任。

Our rapid scale-up demonstrated the robust domestic consumption demand from the widest consumer base in China, and it represented a strong case for the potential driver of China's growing economy.

我們的快速擴張體現了中國最廣泛的消費群體的強勁國內消費需求，也有力地證明了中國經濟成長的潛在動力。

We are committed to enhancing the productivity and service standard of the industry with our know-how, our data, and our never-ending desire to serve our users.

我們致力於透過我們的專業知識、我們的數據以及我們永不停息的服務使用者的願望來提高行業的生產力和服務標準。

Our goal for the next few quarters will be to enhance user engagement and trust on our platform, as well as to grow our active user base.

我們未來幾季的目標是提高用戶對我們平台的參與度和信任度，並擴大我們的活躍用戶群。

Therefore we have decided to continue devoting substantial resources towards building our brand recognition and user engagement, including sales and marketing and R&D efforts.

因此，我們決定繼續投入大量資源來建立我們的品牌認知度和用戶參與度，包括銷售、行銷和研發工作。

We view this as a strategic investment for our long-term [prospects] rather than expenses, as we continue to grow.

隨著我們不斷發展，我們將其視為對我們長期[前景]的策略性投資，而不是支出。

And a good example is our successful branding campaign during the FIFA World Cup 2018.

2018 年 FIFA 世界盃期間我們成功的品牌宣傳活動就是一個很好的例子。

Last but not least, let's talk about something fun.

最後但並非最不重要的一點是，讓我們來談談一些有趣的事情。

In an attempt to add more fun element to the experience on Pinduoduo, we launched a game called Duo Duo Orchard during the second quarter, where you can actually grow your own fruit trees.

為了為拼多多的體驗增添更多樂趣，我們在第二季度推出了一款名為「多多果園」的遊戲，您可以在其中實際種植自己的果樹。

And the most interesting part is that when you harvest your fruits in the game, you actually -- we actually deliver a box of real fruits to you.

最有趣的是，當你在遊戲中收穫水果時，你實際上——我們實際上給你送了一盒真正的水果。

We also blended in social elements by establish -- enabling users to take water from their friends and invite their friends up to the orchard.

我們也透過建立融入社交元素——使用戶能夠從朋友那裡取水並邀請他們的朋友去果園。

Users can also complete certain tasks in order to earn more water and nutrition to grow their fruit trees faster.

使用者還可以完成某些任務，以獲得更多的水和營養，以更快地種植果樹​​。

As simple as it might seem, the game actually attracted an overwhelming amount of users.

儘管看起來很簡單，但這款遊戲實際上吸引了大量用戶。

We launched the game in April 2018, and at a peak in June 2018, over 2 million new fruit trees were grown every day.

我們於 2018 年 4 月推出遊戲，在 2018 年 6 月的高峰期，每天種植超過 200 萬棵新果樹。

In the real world, over 300 tons of fruits are sent from real farms to our users every day.

在現實世界中，每天有超過 300 噸的水果從真實農場發送到我們的用戶手中。

300 tons every day.

每天300噸。

Farmers have benefited from an increase in income due to the large and a stable volume of orders coming from Duo Duo Orchards.

多多果園訂單量大且穩定，農民收入增加。

Certainly Duo Duo Orchard is still a very simple game, and it is only a very rudimentary attempt for us to bring more fun elements to the new e-commerce experience.

當然，《多多果園》仍然是一款非常簡單的遊戲，只是我們一次非常初級的嘗試，為新的電商體驗帶來更多好玩的元素。

Nonetheless, we're encouraged by the results that we saw from Duo Duo Orchard and we are confident to bring more innovative and fun features to our platform and get closer to the long-term ambition of Costco plus Disneyland, step-by-step.

儘管如此，我們對 Duo Duo Orchard 所取得的成果感到鼓舞，我們有信心為我們的平台帶來更多創新和有趣的功能，並逐步接近 Costco 和迪士尼樂園的長期雄心。

We believe that our unique value proposition of offering a comprehensive selection of value-for-money merchandise, coupled with a fun, social, and dynamic shopping experience, meets the fundamental demand of all consumers.

我們相信，我們提供全面的物有所值的商品選擇以及有趣、社交和動態的購物體驗的獨特價值主張能夠滿足所有消費者的基本需求。

Our current active buyer base is still less than half of the mobile Internet user base in China, and that represents significant opportunities for us to continue to grow.

我們目前的活躍買家數量仍不到中國行動網路用戶數量的一半，這對我們來說是持續成長的重要機會。

In addition, since we are only three years old, many of our users are still new to our platform, and they naturally started with selective purchase of products with a smaller ticket size.

此外，由於我們只有三年的歷史，我們的許多用戶對我們的平台來說還是新手，他們自然會開始選擇性購買門票金額較小的產品。

We believe that as we continue -- or believe that as we continue to invest in our brand recognition and improve the Pinduoduo experience, our users will be more comfortable buying more products on our platform as we continue to add suitable SKUs.

我們相信，隨著我們繼續，或者相信，隨著我們繼續投資於我們的品牌認知度並改善拼多多體驗，隨著我們繼續添加合適的SKU，我們的用戶將更放心地在我們的平台上購買更多產品。

We are confident in our conviction and ability to capture enormous and growing opportunities in China.

我們對抓住中國巨大且不斷增長的機會的信念和能力充滿信心。

With that, I will hand the call to our VP of Finance, Tian, who will walk through our financial results in this quarter.

接下來，我將把電話交給我們的財務副總裁田，他將介紹我們本季的財務表現。

Thank you, Colin.

謝謝你，科林。

Hello, everyone.

大家好。

Let me go through the financial highlights with you.

讓我和您一起回顧一下財務亮點。

Our total revenues in the second quarter were RMB2.7 billion.

第二季我們的總收入為人民幣27億元。

87.5% of the total revenues, or RMB2.4 billion, were revenues from online marketing services, which increased significantly from the RMB32 million during the same period last.

網路行銷服務收入為人民幣24億元，佔總營收的87.5%，較去年同期的人民幣3,200萬元大幅成長。

This increase was attributable to our GMV and order increases; our increased traffic, as shown in our MAU growth; as well is our improved user engagement.

這一增長歸因於我們的 GMV 和訂單增加；我們的流量增加，如我們的每月活躍用戶數成長所示；我們也提高了用戶參與度。

12.5% of the total revenues, or RMB338 million, were revenues from commission fees, which increased from the RMB72 million during the same period last year.

佣金收入為人民幣3.38億元，佔總收入的12.5%，較去年同期的人民幣7,200萬元增加。

This increase was primarily attributable to the increase of GMV.

這一增長主要歸因於GMV的增長。

Overall, the total revenues increased by 2,489% year-over-year, or 96% quarter over quarter.

整體而言，總營收年增 2,489%，季增 96%。

I would like to reiterate that our online marketing services, which we launched the last year, are still at early stage.

我想重申，我們去年推出的網路行銷服務仍處於早期階段。

We are consistently fine-tuning the online marketing products and our pace of monetization.

我們不斷調整網路行銷產品和貨幣化步伐。

All efforts are focused on providing best user experience and continuously enhancing the user engagement.

所有努力都集中在提供最佳的用戶體驗並不斷增強用戶參與度。

We always view our monetization as a natural result of our strong value proposition to both our customers and merchants.

我們始終將貨幣化視為我們向客戶和商家提供強大價值主張的自然結果。

Total cost of revenues increased by 260% year-over-year to RMB388 million from RMB108 million in the same quarter of 2017.

總營收成本年增 260%，從 2017 年同季的 1.08 億元 1.08 億元增加到 3.88 億元。

The increase was directionally in line with the growth of GMV and revenues.

這一成長與 GMV 和營收的成長方向一致。

And the expanded gross margin also reflect an improvement of our operational efficiency.

毛利率的擴大也反映出我們營運效率的提高。

Total operating expenses were RMB9.0 billion compared with RMB120 million in the same quarter of 2017.

總營運費用為人民幣 90 億元，而 2017 年同期為 1.2 億元。

In particular, sales and marketing expenses rose to nearly RMB3.0 billion, primarily due to an increase in branding campaigns and online and off-line advertisements and promotions, as we continue to invest in strengthening our brand recognition and facilitating greater user engagement.

其中，銷售及行銷費用上升至近人民幣30億元，主要是由於我們持續投資於加強品牌知名度並促進更高的用戶參與度，因此品牌活動以及線上和線下廣告及促銷活動的增加。

General and administrative expenses were RMB5.8 billion.

一般及行政費用為人民幣58億元。

The increase was primarily due to an increase in headcount and then one-off share-based compensation expenses during the quarter, which was disclosed in our prospectus.

這一增長主要是由於員工人數的增加以及本季度一次性股權激勵費用的增加，這一點已在我們的招股說明書中披露。

Research and development expenses rose to RMB186 million, primarily due to an increase in headcount and the recruitment of very experienced research and development personnel, as well as an increase in the R&D related cloud services expenses.

研發費用增加至人民幣1.86億元，主要是因為人員數量的增加和聘請經驗豐富的研發人員，以及研發相關的雲端服務費用的增加。

We continue to focus on investing in technologies for the long-term prospects of our platform.

我們繼續專注於技術投資，以實現我們平台的長期前景。

Operating losses was RMB6.6 billion compared with RMB123 million in the same quarter of last year.

經營虧損為人民幣 66 億元，去年同期為 1.23 億元。

Non-GAAP operating loss was RMB816 million, an increase from the RMB120 million during the same period last year.

非美國通用會計準則經營虧損為人民幣8.16億元，較去年同期的1.2億元人民幣增加。

In the second quarter, net loss attributable to ordinary shareholders was RMB6.5 billion compared with RMB110 million in the same quarter of last year.

第二季歸屬於普通股股東的淨虧損為人民幣65億元，去年同期為人民幣1.1億元。

Basic and diluted net loss per ADS was RMB13.40 compared to RMB0.24 during the same period of last year.

每份美國存託憑證的基本和攤薄淨虧損為人民幣 13.40 元，去年同期為 0.24 元。

Non-GAAP net loss attributable to ordinary shareholders rose to RMB673 million compared with RMB107 million in the same quarter last year.

非美國通用會計準則歸屬於普通股股東的淨虧損增至 6.73 億元，去年同期為 1.07 億元。

Non-GAAP basic and diluted net loss per ADS were RMB1.40 compared with RMB0.24 for the same period of 2017.

非美國通用會計準則每股美國存託股基本及攤薄淨虧損為 1.40 元，而 2017 年同期為 0.24 元。

The non-GAAP adjustment was to exclude the RMB5.8 billion share-based compensation expenses in Q2.

非公認會計準則調整是為了排除第二季度人民幣 58 億元的股權激勵費用。

That completes the profit and loss statements for the quarter.

本季的損益表就此完成。

Net cash flow provided by operating activities was RMB361 million compared with RMB1.3 billion in the same period last year, primarily due to an increase in outbound cash flow in our sales and marketing spending.

經營活動產生的現金流量淨額為人民幣3.61億元，去年同期為人民幣13億元，主要是因為我們的銷售和行銷支出流出現金流增加。

As of June 30, 2018, the Company has a strong balance sheet with RMB9.0 billion in cash and cash equivalents, an increase from RMB3.1 billion as of December 31, 2017.

截至2018年6月30日，公司資產負債表穩健，現金及現金等價物為人民幣90億元，較截至2017年12月31日的人民幣31億元增加。

On top of our cash balance, we also have another RMB1.3 billion of short-term investments.

除了現金餘額外，我們還有另外13億元人民幣的短期投資。

I also would like to take this opportunity to address some requests on guidance.

我也想藉此機會解決一些指導請求。

We understand investors' needs of more visibility of our business.

我們了解投資者對提高我們業務知名度的需求。

We hope the capital market would understand that we are still too early in our development to provide guidance.

我們希望資本市場能夠理解，我們的發展還處於早期階段，無法提供指導。

In addition, we prefer to focus more on long-term potential of our platform rather than near-term financial targets.

此外，我們更願意更專注於我們平台的長期潛力，而不是短期財務目標。

Last but not least, we plan to have better communication with investors in the future in this regard.

最後，我們計劃未來在這方面與投資者進行更好的溝通。

This concludes our prepared remarks.

我們準備好的演講到此結束。

Operator, we are now ready to begin the Q&A session.

接線員，我們現在準備開始問答環節。

Thanks.

謝謝。

(Operator Instructions).

（操作員說明）。

Thomas Chong, Credit Suisse.

托馬斯·莊，瑞士信貸。

I have three questions.

我有三個問題。

The first question is about our outlook for our GMV growth over the next couple of years in terms of opportunities and challenges.

第一個問題是我們對未來幾年 GMV 成長的機會和挑戰的展望。

And my second question is about our strategic priorities in 2018 and 2019, i.e., is it strengthening our brand or monetization?

我的第二個問題是關於我們2018年和2019年的策略重點，也就是加強我們的品牌還是貨幣化？

And thirdly, our long-term outlook in terms of our monetization opportunities.

第三，我們對貨幣化機會的長期展望。

Thank you.

謝謝。

Okay.

好的。

Thank you, Thomas.

謝謝你，托馬斯。

Let me answer your questions one by one.

讓我一一回答你的問題。

Speaking of GMV, I think we are confident that our GMV growth will continue strong year-on-year momentum, and we expect our user base will continue to grow.

說到 GMV，我認為我們有信心 GMV 成長將繼續保持強勁的同比勢頭，並且我們預計我們的用戶群將繼續成長。

As of June 2018, we have already achieved 340 million active buyers in the 12 months trading period and to almost 200 million MAUs.

截至 2018 年 6 月，我們在 12 個月的交易期間已經實現了 3.4 億活躍買家和近 2 億月活躍用戶。

But still far below the mobile Internet population.

但仍遠低於行動網路人口。

In addition, the user spending has a large room to grow.

此外，用戶支出還有較大的成長空間。

In the last quarter, we have almost doubled the user spending compared to the same quarter the year before.

在上個季度，我們的用戶支出與去年同期相比幾乎翻了一番。

So that's for the GMV.

這就是 GMV。

Your second question is: what's the priorities in 2018 and 2019?

第二個問題是：2018年和2019年的重點是什麼？

You asked whether it's about brand recognition or monetization.

您問這是關於品牌認知度還是貨幣化。

The monetization at this moment is not our high priority.

目前，貨幣化並不是我們的首要任務。

At this moment, I think doing more branding, trying to build up a trust with the users in our platform, and also steadily grow the quality user base, is still our first priority.

目前，我認為做更多的品牌推廣，努力與我們平台的用戶建立信任，並穩步發展優質用戶群，仍然是我們的首要任務。

Your third question goes to monetization.

你的第三個問題涉及貨幣化。

As I just mentioned before, monetization is not our near-term goal, but the result our value -- but it is a result and a side effect of the value we've created to both users and merchants.

正如我之前提到的，貨幣化不是我們的近期目標，而是我們價值的結果——但它是我們為用戶和商家創造的價值的結果和副作用。

We started the monetization in mid-2015 -- mid-2017, and the monetization grows very fast.

我們從2015年中期－2017年中期開始變現，變現成長非常快。

However, we take a conservative approach to grow monetization.

然而，我們採取保守的方法來增加貨幣化。

We strive to constantly meet users' need and to be enabler of our ecosystem, including merchants, manufacturers, logistic service providers, et cetera.

我們努力不斷滿足用戶的需求，成為我們生態系統的推動者，包括商家、製造商、物流服務提供者等。

For instance, one of our effort is to help capable merchants and manufacturers to develop their own brands, offer training sessions to merchants, and to help better manage their online stores, and upgrade them to their -- update them on their user demographics, seasonal trend, and consumer tastes, et cetera.

例如，我們的努力之一是幫助有能力的商家和製造商開發自己的品牌，為商家提供培訓課程，幫助他們更好地管理他們的線上商店，並將他們升級到他們的商店——更新他們的用戶人口統計、季節性資訊趨勢、消費者口味等等。

That being said, even though the recent development has little effect in our traffic and GMV, it did push us, the measurement, to revisit of our strategies.

話雖如此，儘管最近的發展對我們的流量和 GMV 影響不大，但它確實促使我們重新審視我們的策略。

In order to create a virtuous cycle of attracting more capable and responsible merchants to the platform and to [churn] out some problematic ones, we have decided to systematically, going forward in the next period of time, to give some free traffic to the proven good merchants.

為了形成良性循環，吸引更多有能力、有責任心的商家進駐平台，並解決一些有問題的商家，我們決定在接下來的一段時間裡，系統性地給予一些經過驗證的商家免費流量。商家。

Which may affect the monetization pace a little bit in the short term, but we believe this is the right thing to do and can help to drive the ecosystem in a more positive way.

這可能會在短期內稍微影響貨幣化速度，但我們相信這是正確的做法，並且可以幫助以更積極的方式推動生態系統。

And, of course, eventually this will benefit both users and merchants; and as a result, it will benefit monetization in the long run as well.

當然，最終這將使用戶和商家都受益；因此，從長遠來看，這也將有利於貨幣化。

Thank you.

謝謝。

Thank you.

謝謝。

Piyush Mubayi, Goldman Sachs.

皮尤什·穆巴伊，高盛。

Colin, Tian, congratulations on being a listed company.

田科林，恭喜您成為上市公司。

You mentioned upfront, Colin, that you are far from where you want to be.

科林，你之前提到過，你離你想要的目標還很遠。

Could you remind us where in the medium-term you would like to be?

您能否提醒我們您的中期目標是什麼？

And extending that question, how would the business model evolve getting to where you want to be in the medium to longer term?

延伸這個問題，商業模式將如何發展才能達到中長期目標？

And if you could just also talk through the diversification that you'd like, if any, to go through over the next couple of quarters or years.

您是否也可以談談您希望在未來幾季或幾年內實現的多元化（如果有的話）。

Second, I know it's very early to talk about monetization levels or the right levels of spending on sales and marketing, but how would you like the market to think about -- the market and us to think about the levels of monetization you would aspire towards?

其次，我知道現在談論貨幣化水平或銷售和行銷支出的正確水平還為時過早，但您希望市場如何考慮——市場和我們考慮您希望達到的貨幣化水平？

And simultaneously, the level of spending that you would like to incur on the business model, on the sales and marketing side.

同時，您希望在商業模式、銷售和行銷方面進行的支出水準。

Thank you.

謝謝。

Okay.

好的。

Your first question is -- okay, the medium-term goal and how would the business change.

你的第一個問題是——好的，中期目標以及業務將如何變化。

So, yes, it is still at a early-stage?

那麼，是的，它仍處於早期階段嗎？

And in our slogan -- or as I was writing in the letter to shareholders, I was imagining PDD could be a combination of Costco and -- plus Disneyland, and in that order.

在我們的口號中——或者正如我在致股東的信中所寫的那樣，我想像 PDD 可以是 Costco 和迪士尼樂園的組合，並按此順序。

So, we're still at a first stage, which is trying to build a Costco; but not only a single Costco, but a collection of Costcos.

所以，我們仍處於第一階段，就是嘗試建立一家 Costco；但不只是一個Costco，而是Costco的集合。

With that said, I mean we're trying to divide users into different groups through their relationships and through their buying behavior and also their user profile, so that in a big market like China they will have -- we have different types of middle classes in China.

話雖如此，我的意思是，我們正在嘗試透過用戶的關係、購買行為以及用戶檔案將用戶分為不同的群體，這樣在像中國這樣的大市場中，他們就會擁有不同類型的中產階級在中國。

And we divide that into, let's say, 100 or 1,000 groups.

我們將其分為 100 或 1,000 組。

And each group will have a set of manufacturers dedicated to them, and they are constantly improving and trying to build better quality and better value-for-money products for that specific group of people.

而每個群體都會有一組專門為他們服務的製造商，他們不斷改進，努力為那個特定的人群打造品質更好、性價比更好的產品。

So that's the very first step we're taking, and we're still in that stage.

這是我們正在採取的第一步，而且我們仍處於那個階段。

In the process of building a collection of Costcos, we need to actually spend a lot of time in two areas.

在建構Costcos集合的過程中，我們實際上需要在兩個方面花費大量的時間。

One area is to increase users' trust, build up the brand, and trying to reinforce user engagement.

其中一個領域是增加用戶的信任、建立品牌並努力加強用戶參與。

The second thing we really have to do is to enhance the supply chain side.

我們真正要做的第二件事是加強供應鏈方面。

We should leverage our data ability and leverage the information we have and also the advantages of the pin model, which has the ability to aggregate a large volume in a short period of time.

我們應該利用我們的資料能力，利用我們所擁有的資訊以及pin模型的優勢，它能夠在短時間內聚合大量的資料。

We hope to push the information we have upstream so that the merchants and the manufacturers can have several days or even several weeks in advance to know what's the volume they're looking at and what's the planning they can do.

我們希望把我們掌握的資訊推到上游，讓商家和廠商能夠提前幾天甚至幾週知道他們在看的量是多少，可以做什麼規劃。

And in the recent developments and attention from the media, we are also launch a program to help the merchants to initiate our start building their own brand; although building their own brand is not an easy thing.

而在最近的事態發展和媒體的關注下，我們也推出了一個計劃來幫助商家發起我們開始建立自己的品牌；雖然打造自己的品牌並不是一件容易的事。

But with the volume, with the data we have, and also with the strong manufacturing base in China, I strongly believe in the near future a lot of brands will be -- even global brands -- will be originated in China.

但從數量、我們掌握的數據以及中國強大的製造基礎來看，我堅信在不久的將來，許多品牌——甚至是全球品牌——將起源於中國。

So, that's probably the main task and focus at this stage.

所以，這可能是現階段的主要任務和重點。

Of course we are making several attempts and little trials in the world of Disneyland, like the Duo Duo Orchard we have just launched.

當然，我們在迪士尼樂園的世界裡做了一些嘗試和小嘗試，就像我們剛剛推出的多多果園。

But I have to be honest, that at this stage, the Costco part is our main focus.

但我必須說實話，現階段，Costco 部分是我們的主要關注點。

When you -- and your second question goes to our spending and in monetization.

當你——你的第二個問題涉及我們的支出和貨幣化。

Currently I think while we do see rapid growth in the monetization rate, I don't think too rapid growth is needed, and we should focus more on the user experience.

目前我認為雖然我們確實看到了貨幣化率的快速成長，但我認為不需要太快的成長，我們應該更專注於用戶體驗。

And when speaking of the monetization level, I think we're still at early stage.

當談到貨幣化程度時，我認為我們仍處於早期階段。

If we look forward, I think our monetization level should be, or could well be, at the same level as our peers, and at the same level of the industry standard.

如果我們展望未來，我認為我們的貨幣化水平應該或很可能與我們的同行處於同一水平，並且與行業標準處於同一水平。

Speaking of the spending, because we think at this stage the growth of the user base and the growth of the merchant base, and also the growth of the user engagement is still the key to our success in the long-term.

說到支出，因為我們認為現階段用戶基礎和商家基礎的成長以及用戶參與度的成長仍然是我們長期成功的關鍵。

So we do plan to spend most of the revenues coming in into the areas we think is worth of long-term investment.

因此，我們確實計劃將大部分收入投入到我們認為值得長期投資的領域。

For instance, some of the TV commercials of good ROI; we think it's a good area to invest to increase our brand awareness.

例如一些投資報酬率不錯的電視廣告；我們認為這是一個很好的投資領域，可以提高我們的品牌知名度。

Although it comes to -- when it comes to financial reports, it's a cost section and it does cut our profit or increase the deficits.

儘管說到財務報告時，它是一個成本部分，它確實會削減我們的利潤或增加赤字。

But in our own mind, a lot of these investments should be treated as a long-term investment and a virtual asset.

但在我們看來，其中許多投資應該被視為長期投資和虛擬資產。

So we'll -- at least in the next few quarters, we'll continue to do so in a fairly aggressive way when the opportunity comes.

因此，至少在接下來的幾個季度，當機會到來時，我們將繼續以相當積極的方式這樣做。

But of course we will not blindly spend money regardless what our -- although we have a [flat full of] budget opportunities, but we do have a very strict standard when we look at ROI.

當然，我們不會盲目地花錢，無論我們的預算如何，儘管我們有一個[充滿]預算機會，但在考慮投資回報率時，我們確實有一個非常嚴格的標準。

If the ROI is not good, we will not spend the money.

如果投資報酬率不好，我們就不會花錢。

Yes, Piyush, this is Tian.

是的，Piyush，這是 Tian。

Let me add a few color on the monetization.

讓我為貨幣化添加一些色彩。

For the 12-month period ending this quarter, our monetization rate was 2.2%; increased from 1.6% three months ago.

在本季結束的 12 個月期間，我們的貨幣化率為 2.2%；較三個月前的 1.6% 上升。

Which is -- which the increase is very quickly.

成長速度非常快。

However, we are still at the early stage.

然而，我們仍處於早期階段。

I think the increase has shown our ability to monetize while still pushing our GMV up.

我認為這一增長表明了我們的貨幣化能力，同時仍推高了我們的 GMV。

Our model is fundamentally different from the conventional search-based -- search-driven inventory index model, which has a very long tail of SKUs.

我們的模型與傳統的基於搜尋的搜尋驅動庫存索引模型有著根本的不同，後者俱有很長的 SKU 尾部。

We do not need such a long tail of SKUs, so [much include] average get higher traffic per SKU.

我們不需要如此長的 SKU 尾部，因此[許多包括]每個 SKU 平均獲得更高的流量。

Therefore we believe we could be more -- those merchants will be more willing to pay on our platform, and our monetization rate in the long-term could be potentially higher than some other e-commerce platform.

因此，我們相信我們可以做得更多——那些商家將更願意在我們的平台上付款，而且從長遠來看，我們的貨幣化率可能會比其他一些電子商務平台更高。

Thank you.

謝謝。

Thank you.

謝謝。

Congratulations again.

再次恭喜。

Natalie Wu, CICC.

吳娜塔莉，中金公司。

This is [Speesha] speaking on behalf of Natalie.

我是 [Speesha] 代表娜塔莉發言。

I have two questions here.

我在這裡有兩個問題。

First question is regarding the recent PR incident on infringing or counterfeit products that management just mentioned.

第一個問題是關於剛才管理階層提到的最近發生的侵權假公關事件。

So can management share with us some thoughts on whether you view these impact as a temporary one or rather long-lasting risk, as though we are taking a lot of efforts here, is this hard to solve all this kind of problem at one time?

那麼管理階層能否跟我們分享一些想法，您認為這些影響是暫時的還是長期的風險，好像我們在這方面做了很多努力，一次性解決所有這些問題是不是很難？

That's my first question.

這是我的第一個問題。

And my second question is about competition.

我的第二個問題是關於競爭的。

We see both some of our competitors like Taobao and Jingdong, they launched similar pin purchase formats.

我們看到我們的一些競爭對手，如淘寶和京東，他們推出了類似的pin購買模式。

And recently Jingdong also reported very good numbers for its [pin go], and Taobao received some news -- from some media reports that Taobao also wants to embed similar functions in its [men] app.

而最近京東的【pin go】成績也非常不錯，而淘寶也收到了一些消息──有媒體報道淘寶也想在其【男士】應用中嵌入類似的功能。

So do management see any impacts or changes in competition so far?

那麼，到目前為止，管理層是否認為競爭有任何影響或變化？

And how should we think about the competition landscape going forward?

我們該如何看待未來的競爭格局？

Thank you very much.

非常感謝。

Okay.

好的。

For the first question, the combat against the counterfeit goods.

關於第一個問題，打擊假冒偽劣商品。

I think our stance against counterfeit goods was always firm and very clear.

我認為我們對假貨的態度一直是堅定的、非常明確的。

Only shortly after Pinduoduo's inception, we adopted the very strict 10 times penalty policy, which was the very first time in the whole industry.

拼多多剛成立不久，就採取了非常嚴格的10倍處罰政策，這在整個產業還是第一次。

Although it is a very hard fight against the counterfeit good products and against the problematic merchants, and we did receive strong fight backs but we never gave up and we -- or compromised.

儘管打擊假冒偽劣產品和有問題的商家是一場非常艱苦的鬥爭，我們也確實受到了強烈的反擊，但我們從未放棄，我們——或者說妥協了。

The recent development and media attention had a little -- honestly, had a little effect on the business itself, but it does help us reflect and revisit many of our policies.

最近的發展和媒體關注對業務本身產生了一些影響，但它確實幫助我們反思和重新審視我們的許多政策。

We deeply understand that regardless the existing problems the industry has; it doesn't give us any excuse for not facing the problem directly and fighting against the problem wholeheartedly.

我們深刻體認到，無論產業存在哪些問題；這並沒有給我們任何不直接面對問題、全心全意與問題奮鬥的藉口。

Instead, as a newcomer to the industry, we view it as an opportunity for us to establish and create -- create and establish unique value for the society by solving the hard problems in an innovative way, as we innovated the pin model, we innovated the new user interactive formats.

相反，作為行業的新人，我們將其視為我們建立和創造的機會——透過以創新的方式解決難題來為社會創造和建立獨特的價值，正如我們創新了引腳模型一樣，我們創新了新的使用者互動格式。

I think -- although it's a long battle, but we are confident that we will be able to win.

我認為——雖然這是一場漫長的戰鬥，但我們有信心能夠獲勝。

More specifically, in 2017, we proactively removed more than 10 million problematic products and blocked 40 million links that raised infringement issues.

具體來說，2017年，我們主動下架了超過1,000萬個問題產品，封鎖了4,000萬個侵權連結。

We have also partnered with over 400 brands to work together to combat counterfeits.

我們也與 400 多個品牌合作，共同打擊假貨。

In the recent weeks, we closed down over 1,000 stores and reported a batch of cases to the market regulators.

最近幾週，我們關閉了1000多家商店，並向市場監管部門報告了一批案件。

At the same time, we also plan to speed up our effort to help more merchants establish their own brands.

同時，我們也計劃加快力度，幫助更多的商家建立自己的品牌。

We can give merchants opportunities to directly engage a large number of consumers.

我們可以為商家提供直接吸引大量消費者的機會。

In addition, we will also collaborate with the government to offer the margins with a channel to speed up their trademark registration process.

此外，我們還將與政府合作，為利潤提供管道，以加快他們的商標註冊流程。

At the same time, in addition, we are also upgrade our technology to better combat counterfeits and infringement offenses, including better search algorithm, image, and emotion recognition technology; integrating our system with the public security authorities, et cetera.

同時，此外，我們也在升級我們的技術，以更好地打擊假冒和侵權犯罪，包括更好的搜尋演算法、圖像和情感識別技術；將我們的系統與公安機關等整合。

So all of these is kind of -- it's a short-term campaign; it's also a long-term effort.

所以這一切都是──這是一場短期活動；這也是一個長期的努力。

It's a hard battle but I think our stance is very firm and clear.

這是一場艱苦的戰鬥，但我認為我們的立場非常堅定和明確。

And the media attention in the short term did give us some pressure, but it also poses an opportunity for us to create a unique value, to solve the problem that -- which is hard and which is good for the society.

短期內媒體的關注確實給我們帶來了一些壓力，但也為我們提供了一個創造獨特價值的機會，來解決這個問題——哪些是困難的，哪些是對社會有利的。

So that's the first question.

這是第一個問題。

Your second question goes to competition.

你的第二個問題涉及競爭。

You mentioned some other platforms also launched similar features.

您提到其他一些平台也推出了類似的功能。

The one thing I want to point out is that this kind of attempts -- is not their first attempt.

我想指出的一件事是，這種嘗試並不是他們的第一次嘗試。

Similar products, similar campaigns had been launched a while ago, even one year ago.

類似的產品、類似的活動已經推出了一段時間，甚至一年前。

The major peers have been made several attempts already.

主要同行已經進行了多次嘗試。

We are confident that our differentiated business model and value proposition will provide more value-for-money products and a fun experience to the users.

我們相信，我們差異化的商業模式和價值主張將為用戶提供更多物有所值的產品和有趣的體驗。

And this is very different from the solitary, utility-driven, and social-based experience.

這與孤獨的、功利驅動的、基於社交的體驗有很大不同。

The recent trend of many players using the team purchase format actually validates our business model, and we always welcome such kind of friendly competition.

最近很多玩家採用團購形式的趨勢，其實也驗證了我們的商業模式，我們一直歡迎這種友善的競爭。

Thank you very much.

非常感謝。

Wendy Huang, Macquarie.

溫迪·黃，麥格理。

Congratulations on a solid first earnings results.

祝賀第一筆穩健的獲利結果。

As a sell-side analyst as well as a heavy user of the Pinduoduo, I have a few questions on the operations and a few questions on the financial side.

身為賣方分析師以及拼多多的重度用戶，我有一些關於營運和財務方面的問題。

First, can you give us a breakdown among your 1.7 million merchants, what's the number of the brands versus the number in all manufacturers?

首先，您能給我們詳細介紹一下你們170萬個商家的狀況嗎？

And also you mentioned a lot about different categories such as agriculture.

您也提到了很多有關農業等不同類別的內容。

So, is there any color you can share about GMV breakdown by different categories?

那麼，關於不同類別的 GMV 細分，您有什麼顏色可以分享嗎？

And also you mentioned about the SKU in the previous comments; is there any number regarding the SKU you can provide here?

您在先前的評論中也提到了 SKU；您可以在此處提供有關 SKU 的任何編號嗎？

On the financial side, I noticed gross margin expanded 9 percentage points to 86%.

在財務方面，我注意到毛利率擴大了 9 個百分點，達到 86%。

Can you provide some color regarding the reason behind the expansion, and how should we expect this going forwards?

您能否提供一些有關擴張背後原因的信息，以及我們應該如何期待這一進展？

And also on the SBC, this quarter there is a RMB5.8 billion, a very big amount of SBC.

還有SBC，這個季度有58億元人民幣，SBC的金額非常大。

Should we take this as a one-off?

我們應該把這當作一次性的嗎？

And how should we look at SBC going forward?

我們該如何看待SBC的未來？

Thank you.

謝謝。

Okay.

好的。

Your first question goes to the breakdown of SKUs and whether we have -- the platform, unique SKUs.

你的第一個問題涉及 SKU 的細分，以及我們是否擁有平台、獨特的 SKU。

It is fairly difficult for us to track, as not all merchants would tell us, and tallying that number is not the best use of our time.

我們很難追踪，因為並非所有商家都會告訴我們，並且統計這個數字並不是我們時間的最佳利用方式。

However, we could see for some SKUs listed on our platform that cannot be found elsewhere.

然而，我們可以看到我們平台上列出的一些在其他地方找不到的 SKU。

For example, some of the tissue papers and agriculture products are not from the store -- not from the -- are actually from the stores directly, and can hard be find on other platforms.

例如，有些紙巾和農產品不是來自商店——不是來自——實際上是直接來自商店，在其他平台上很難找到。

We are still at early stage of enabling merchants to tailor-make small batches of products to user needs, but these are some early signs of what we could achieve.

我們仍處於使商家能夠根據用戶需求客製化小批量產品的早期階段，但這些是我們可以實現的一些早期跡象。

We frequently provide support for our merchants to help them achieve better performance in our platforms.

我們經常為商家提供支持，幫助他們在我們的平台上取得更好的表現。

For instance, we offer training sessions to merchants to better manage the financials.

例如，我們為商家提供培訓課程，以便更好地管理財務。

We periodically provide reports consumer behaviors to improve their marketing efforts.

我們定期提供消費者行為報告，以改善他們的行銷工作。

In addition, we are also working with the government to speed up merchant trademark registration process through us.

此外，我們也與政府合作，透過我們加快商家商標註冊流程。

Our ultimate goal is to satisfy our users.

我們的最終目標是讓我們的用戶滿意。

We believe that our platform goal is to create a fair and healthy environment for the merchants, to serve their users well.

我們相信我們平台的目標是為商家創造一個公平、健康的環境，為使用者提供良好的服務。

We do our best to enable our ecosystem players and align our goals to achieve that.

我們盡最大努力為我們的生態系統參與者提供支持，並調整我們的目標以實現這一目標。

With that said, we don't really put a strong emphasis on this category or on that category, or we are trying to specifically drive traffic into a particular category or a particular set of SKUs.

話雖如此，我們並沒有真正強調這個類別或那個類別，或者我們正在嘗試專門將流量引入特定類別或一組特定的 SKU。

But we do have programs, recently launched, that we plan to give [for] traffic or give some stipend to the good quality merchants so that we can faster improve the ecosystem and the quality base of the merchants.

但我們最近推出了一些計劃，計劃為優質商家提供流量或給予一些補貼，以便我們能夠更快地改善生態系統和商家的品質基礎。

Your second question is about the 5 -- is about the GMV breakdown?

你的第二個問題是關於 5 的——關於 GMV 細分？

Yes, the merchant breakdown between the brands versus non-brands, and also the GMV breakdown by different industries for some agricultural, electronics, and et cetera.

是的，品牌與非品牌之間的商家細分，以及農業、電子等不同產業的 GMV 細分。

Okay.

好的。

Well, actually, we don't treat brand and non-brand so differently.

嗯，實際上，我們對待品牌和非品牌的態度並沒有那麼不同。

We actually believe a lot of the non-brands will become a China-originated brand in the near future.

事實上，我們相信許多非品牌將在不久的將來成為中國本土品牌。

We will treat the brand and non-brand merchants equally.

我們會對品牌商家和非品牌商家一視同仁。

Our goal is always to better serve our user and create a fair platform, and merchants will do well if they can serve the users well.

我們的目標始終是更好地服務我們的用戶，創造一個公平的平台，商家能服務好用戶就會做得很好。

So, we don't do this kind of division; and a lot of times, it's hard to tell.

所以，我們不做這種劃分；很多時候，很難說清楚。

Some of the brands are famous.

有些品牌很有名。

I could say this is a famous brand, but some of the new brands are not so famous, but they also have a label on it.

我可以說這是一個著名的品牌，但有些新品牌雖然不那麼出名，但也有一個標籤。

It's also -- in the future, they may become very famous brands.

而且，在未來，它們可能會成為非常著名的品牌。

Speaking of category breakdown, we don't disclose the exact numbers at this moment.

說到類別細分，我們目前沒有透露確切的數字。

But what I can tell you that the agriculture part is a feature; and compared to our peers, this category plays a bigger role in our platform.

但我可以告訴你的是，農業部分是特色；與我們的同行相比，這個類別在我們的平台中發揮更大的作用。

But we are doing not so well in the 3C sector at this moment.

但目前我們在3C領域做得不好。

And your third question is about the stock compensation, right?

你的第三個問題是關於股票報酬，對吧？

And I will hand that over to Tian about the compensation.

我會把補償的事情交給Tian。

But in general, it's a one-time thing.

但總的來說，這是一次性的事情。

Yes.

是的。

Hi, Wendy.

嗨，溫迪。

You've got two questions about finance.

你有兩個關於金融的問題。

The firstly about the high gross margin last quarter.

首先是上季的高毛利率。

Yes, we did have a high gross margin last quarter, above 86%.

是的，上個季度我們的毛利率確實很高，超過 86%。

I would like to say as a platform model our gross margins should naturally be high.

我想說，作為一個平台模式，我們的毛利率自然應該很高。

And in the long-term we will still enjoy high gross margins.

長遠來看，我們仍將享有高毛利率。

The fundamental reason is because if you look at our cost of revenues, the major parts are payment processing fee, cloud service cost, et cetera, et cetera.

根本原因是因為如果你看看我們的收入成本，主要部分是支付處理費、雲端服務成本等等。

So in terms of payment processing fee, it's more or less in line with the growth of the GMV.

所以從支付處理費來看，或多或少是符合GMV的成長的。

But however, all the other parts -- like server costs, customer service cost, et cetera -- are more like at a stable growth rate.

但是，所有其他部分（例如伺服器成本、客戶服務成本等）更像是穩定的成長率。

So we can definitely enjoy economy of scale in that sense.

因此，從這個意義上來說，我們絕對可以享受規模經濟。

That's partially the reason why we had a high gross margin last quarter.

這就是我們上季毛利率較高的部分原因。

On the other side, when you look at our revenues, because we have early stage -- at an early stage of our monetization, our revenues went up dramatically, and there might be some fluctuations from time to time.

另一方面，當你看我們的收入時，因為我們處於早期階段——在我們貨幣化的早期階段，我們的收入急劇上升，並且可能會不時出現一些波動。

So this also drove our gross margin really high last quarter and probably will keep being high for some time.

因此，這也使我們上季度的毛利率非常高，並且可能會在一段時間內保持在高水準。

But in the long way, the gross margin will be high, but probably not as high as last quarter's level.

但從長遠來看，毛利率會很高，但可能不會像上季那麼高。

So that's what we can provide to you.

這就是我們可以為您提供的。

When it comes to SBC: yes, that RMB1.8 billion is definitely a one-off share-based compensation.

說到科美芯：是的，那18億元絕對是一次性的股權激勵。

It was arranged since last run of financing, but only shown on our financial statements this quarter.

這是自上次融資以來就安排的，但僅在本季的財務報表中顯示。

So this is to confirm that's one-off effect on our financial statements.

這是為了確認這對我們的財務報表有一次性影響。

Thank you.

謝謝。

Thank you.

謝謝。

There are no further questions at this time.

目前沒有其他問題。

I would now like to hand the conference back to today's presenter.

現在我想將會議交還給今天的主持人。

Colin, please continue.

科林，請繼續。

Okay, thank you.

好的謝謝。

Thank you, everyone, for joining our call today.

謝謝大家今天加入我們的電話會議。

In closing, and on behalf of the entire management team here at Pinduoduo, I'd like to thank you for your interest and participation in today's call.

最後，我謹代表拼多多的整個管理團隊感謝您對今天電話會議的關注與參與。

If you have any questions or concerns, please don't hesitate to reach out to the Investor Relations team.

如果您有任何問題或疑慮，請隨時聯繫投資者關係團隊。

This concludes the call.

通話就此結束。

Thank you very much.

非常感謝。

Ladies and gentlemen, that does conclude our conference for today.

女士們、先生們，今天的會議到此結束。

Thank you for participating.

感謝您的參與。

You may now all disconnect.

你們現在可以斷開連結了。