拼多多 (PDD) 2019 Q1 法說會逐字稿

Once again, ladies and gentlemen, we will now -- once again, ladies and gentlemen, thank you for standing by, and welcome to the Pinduoduo First Quarter 2019 Earnings Conference Call.

女士們、先生們，我們現在——女士們、先生們，再次感謝你們的耐心等待，歡迎參加拼多多 2019 年第一季收益電話會議。

(Operator Instructions)

（操作員說明）

I would now like to hand the conference over to our first speaker today, Mr. [Victor Zheng].

現在我想將會議交給我們今天的第一位發言者，[Victor Cheng] 先生。

Please go ahead, sir.

請繼續，先生。

Thank you, operator.

謝謝你，接線生。

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 and is available on our IR website at investor.pinduoduo.com as well as through GlobeNewswire services.

拼多多的財報已於早些時候發布，可透過我們的投資者關係網站 Investor.pinduoduo.com 以及 GlobeNewswire 服務取得。

On the call today from Pinduoduo are Mr. Zheng Huang, Chairman and Chief Executive Officer; and Mr. [David Leoh], Vice President of Strategy.

今天接聽拼多多電話的是董事長兼執行長鄭黃先生；策略副總裁 [David Leoh] 先生。

Mr. Huang will review business operations and company highlights, followed by Mr. [Lu] who will discuss financials.

黃先生將回顧業務運營和公司亮點，隨後[盧]先生將討論財務狀況。

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。

Before we begin, I'd like to remind you that this conference contains forward-looking statements made within the meaning of the Section 21E of the Securities Exchange Act of 1934, as amended and as defined in the U.S. Private Securities Litigation Reform Act of 1995.

在我們開始之前，我想提醒您，本次會議包含根據 1934 年證券交易法第 21E 條（經修訂並按 1995 年美國私人證券訴訟改革法定義）的含義做出的前瞻性陳述。

These forward-looking statements can be identified by terminology such as will, expect, anticipate, future, intend, plan, believes, estimate, targets, going forward, outlook and similar statements.

這些前瞻性陳述可以透過諸如意願、期望、預期、未來、打算、計劃、相信、估計、目標、前進、展望和類似陳述等術語來識別。

Such statements are based upon management's current expectations and current market operating conditions and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the company's control, which may cause the company's actual results, performance or achievements to differ materially from those in the forward-looking statements.

此類陳述基於管理層當前的預期和當前的市場運營狀況，並涉及涉及已知或未知風險、不確定性和其他因素的事件，所有這些因素都難以預測，並且其中許多因素超出了公司的控制範圍，這可能會導致公司的實際結果、績效或成就與前瞻性陳述中的結果、績效或成就有重大差異。

Further information regarding these and other risks, uncertainties or factors is included in the company's filings with the U.S. Securities and Exchange Commission.

有關這些和其他風險、不確定性或因素的更多資​​訊包含在該公司向美國證券交易委員會提交的文件中。

The company does not take any obligation to update any forward-looking statement as a result of new information, future events or otherwise except as required under applicable law.

除適用法律要求外，本公司不承擔因新資訊、未來事件或其他原因而更新任何前瞻性聲明的義務。

It is now my pleasure to introduce Chairman and Chief Executive Officer, Mr. Huang.

現在我很高興向大家介紹董事長兼執行長黃先生。

Zheng, please go ahead.

鄭先生，請繼續。

Okay.

好的。

Thank you, [Victor], and thanks to everyone for joining us our first quarter 2019 results discussion.

謝謝你，[Victor]，也謝謝大家加入我們 2019 年第一季業績討論。

I'm happy to report that we kicked off this year with a strong quarter, thanks to our team's hard work and strong execution across the board.

我很高興地向大家報告，由於我們團隊的辛勤工作和全面的強大執行力，我們今年以強勁的季度拉開了序幕。

I also wish to thank our users for their continuing support.

我還要感謝我們的用戶一直以來的支持。

As I mentioned in my letter to shareholders several weeks ago, Pinduoduo is turning 4 this year.

正如我在幾週前致股東的信中提到的，拼多多今年將迎來四周年。

We are still very much a startup, but I am confident that our young company will continue to make significant progress this year as our new e-commerce model is well aligned with the industry evolution and the best interests of all e-commerce participants.

我們仍然是一家新創公司，但我相信，我們年輕的公司今年將繼續取得重大進展，因為我們的新電子商務模式與行業發展和所有電子商務參與者的最大利益保持一致。

By focusing on benefiting all, putting people first and being more open, we keep delivering differentiated value to our users and merchants.

透過專注於惠及所有人、以人為本、更加開放，我們持續為使用者和商家提供差異化的價值。

We will continue to prioritize investments to paid long-term returns, such as sales and marketing and R&D, at this early phase of our development to build a long-lasting foundation.

我們將繼續在發展的早期階段優先考慮有長期回報的投資，例如銷售、行銷和研發，以建立持久的基礎。

Our objective is not only to realize our near-term goal of expanding and deepening our relationship with our 443 million annual active buyer base but also to further strengthen our foundation to achieve our ambition of new e-commerce.

我們的目標不僅是實現擴大和深化與 4.43 億年度活躍買家群體的關係的近期目標，而且還進一步鞏固我們實現新電子商務雄心的基礎。

Let me begin by sharing with you our key financial and operating metrics for the first quarter.

首先讓我與大家分享我們第一季的主要財務和營運指標。

Last 12-month GMV ending March 31, 2019, grew 181% year-over-year to RMB 557 billion.

截至 2019 年 3 月 31 日的過去 12 個月 GMV 年增 181% 至 5,570 億元。

On a quarterly basis, our GMV growth surpassed the 21% year-over-year increase in total China online retail sales after the good growth in the first quarter by multiple folds.

按季度計算，繼第一季良好成長後，我們的 GMV 成長速度超過中國網路零售總額 21% 的年增速數倍。

This was driven first by a strong increase in annual spending per active user; and secondly by continued growth in our annual active buyer base.

這首先是由於每個活躍用戶的年度支出強勁成長所致；其次是我們年度活躍買家群的持續成長。

Annual spending per active buyer grew 87% year-over-year and reached RMB 1,257 as our users became more familiar with our platform and as we continued to enhance the variety and the quality of our product selection.

隨著我們的用戶對我們的平台更加熟悉以及我們不斷提高產品選擇的品種和質量，每個活躍買家的年度支出同比增長 87% 達到人民幣 1,257 元。

It is encouraging to see that our users are coming back more frequently because of our clear value proposition.

令人鼓舞的是，由於我們明確的價值主張，我們的用戶越來越頻繁地回來。

I will also make the distinction again that value for money doesn't just remain cheap.

我還要再次強調的是，物有所值不只是保持便宜。

In the run up to Chinese New Year, some of the unexpected hit products with our lower-tier-city users were higher priced items such as seafood, peppers, cherries and food processors.

在農曆新年來臨之際，我們的低線城市用戶意想不到的熱門產品是海鮮、辣椒、櫻桃和食品加工機等價格較高的產品。

At the same time, we have also been adding users from high-tier cities who find that they can get products of the quality they are looking for but at a better price.

同時，我們也一直在增加來自高線城市的用戶，他們發現他們可以以更優惠的價格獲得他們想要的品質的產品。

As such, our user growth continue to be very broad based with our annual active buyer base up 50% year-over-year to 443 million despite the seasonal impact of the Chinese New Year in the first quarter.

因此，儘管第一季受到農曆新年的季節性影響，我們的用戶成長仍然非常廣泛，年度活躍買家數量年增 50% 至 4.43 億。

MAU increased by 74% year-over-year to reach 290 million.

月活躍用戶數較去年同期成長 74%，達到 2.9 億。

We are pleased to see such encouraging growth.

我們很高興看到如此令人鼓舞的成長。

Our users are market sensitive, and as we continue to engage them through fun features that encourage sharing and exploring, we can get to know them better and keep them engaged on our platform.

我們的用戶對市場敏感，隨著我們繼續透過鼓勵分享和探索的有趣功能吸引他們，我們可以更好地了解他們並讓他們參與我們的平台。

Similarly, our strong value proposition continues to attract many merchants to our platform.

同樣，我們強大的價值主張繼續吸引許多商家來到我們的平台。

We have become an important channel for many merchants given our rapid user growth, substantial user scale and high level of engagement.

鑑於我們快速的用戶成長、龐大的用戶規模和高水準的參與度，我們已成為許多商家的重要管道。

We have seen an increase in our merchant advertising spend, which, coupled with our healthy GMV growth, contributed to the 228% year-over-year increase in our total revenues to RMB 4.5 billion in this quarter as our platform continues to scale and our advertising products improve.

我們看到商家廣告支出有所增加，加上我們的 GMV 健康成長，隨著我們的平台不斷擴大和我們的業務規模不斷擴大，本季度我們的總收入同比增長 228%，達到 45 億元。廣告產品不斷改進。

There will be further room for our merchants' advertising ROIs to improve.

我們商家的廣告投資報酬率還有進一步提升的空間。

That said, we will continue to strike a balance between monetization and incentivizing high-quality merchants to join us and to provide better products and services to our users.

儘管如此，我們將繼續在變現和激勵優質商家加入我們之間取得平衡，為我們的用戶提供更好的產品和服務。

Our growth depends on the satisfaction of our users.

我們的成長取決於用戶的滿意度。

So let me talk about our continuous effort to improve their experience.

那麼讓我談談我們為改善他們的體驗而不斷努力的事情。

First, we are a platform designed for and accessible to all.

首先，我們是一個專為所有人設計且可供所有人使用的平台。

Pinduoduo started when the mobile Internet was equally accessible to all.

拼多多是在行動網路普及的時候誕生的。

As such, Pinduoduo as a platform is conceived to serve all.

因此，拼多多作為一個平台，旨在服務所有人。

We work hard to increase the income of farmers and manufacturers while providing savings to the urban population.

我們努力增加農民和製造商的收入，同時為城市人口提供儲蓄。

Our fast growth and sizeable user base across all parts of China is a testament to our differentiated value proposition for all participants of the platform.

我們在中國各地的快速成長和龐大的用戶群證明了我們為平台所有參與者提供的差異化價值主張。

Second, while working hard to better understand and serve our users who are in the mobile Internet era, Pinduoduo bypassed the PC era's search-based e-commerce model, which was oriented around the product index.

其次，拼多多在努力更好地理解和服務行動互聯網時代的用戶的同時，繞過了PC時代以搜尋為基礎、以產品指標為導向的電子商務模式。

Instead, we put users first.

相反，我們把用戶放在第一位。

We tried to understand their interests, connections and trust between all users so we can develop a more holistic view of them as individuals.

我們試圖了解他們的興趣、所有使用者之間的聯繫和信任，以便我們對他們作為個體有更全面的了解。

This allows us to identify suitable recommendations more efficiently.

這使我們能夠更有效地識別合適的建議。

At this stage, we are just uncovering the tip of the iceberg here as the complexity of matching large-scale dynamic user needs across a variety of products and prices is amplified by how user preferences can be further increased by the actions taken by other users and the social network they are in.

在這個階段，我們只是揭開了冰山一角，因為透過其他用戶採取的行動進一步增加用戶偏好，從而放大了在各種產品和價格上匹配大規模動態用戶需求的複雜性。

Each and every engagement with our users provides opportunities for us to improve and better serve them.

與用戶的每一次接觸都為我們提供了改進和更好地服務他們的機會。

We will continue to devote unwavering focus on this and invest in our big data analysis, machine learning and distributed AI technologies to capture these opportunities.

我們將繼續堅定不移地關注這一點，並投資於我們的大數據分析、機器學習和分散式人工智慧技術來抓住這些機會。

Another example of how we continuously improve our services to users is the introduction of our own e-waybill system, which provides greater transparency on order shipments and help us resolve delivery issues more efficiently.

我們不斷改進對用戶服務的另一個例子是引入我們自己的電子運單系統，該系統提高了訂單發貨的透明度，並幫助我們更有效地解決交貨問題。

This system is now connected to all the major logistics providers in China.

該系統現已連接到中國所有主要物流提供者。

Within a short period of time, we have become the second largest e-waybill system in China.

在很短的時間內，我們已經成為中國第二大電子運單系統。

As I mentioned in a shareholder letter, we will continue to maintain our open policy whereby merchants can choose to use an e-waybill system as we believe that ultimately, user satisfaction, including merchant satisfaction, is the most important KPI for the whole team.

正如我在股東信中提到的，我們將繼續維持開放政策，商家可以選擇使用電子運單系統，因為我們相信最終用戶滿意度，包括商家滿意度，是整個團隊最重要的KPI。

Third, we continue to enhance the shopping experience through affordable quality products and interactive features.

第三，我們繼續透過實惠的優質產品和互動功能來增強購物體驗。

People who are often in doubt with our platform sometimes question how products on our platform can be so affordable priced.

經常對我們的平台產生疑問的人有時會質疑我們平台上的產品價格為何如此實惠。

The differentiation is such that unlike other platforms, who are simply bringing off-line sales online, we enable merchants to offer lower-priced prices by aggregating the collective need of our users.

差異化在於，與其他平台簡單地將線下銷售帶到網路上不同，我們透過聚合用戶的集體需求，使商家能夠提供更低的價格。

This purchase model transforms demand that would be otherwise scattered across different SKUs and time horizons into demand that is in a single time frame and on fewer SKUs.

這種購買模式將分散在不同 SKU 和時間範圍內的需求轉變為單一時間範圍內、較少 SKU 的需求。

Supported by our ability to provide insights into user channels and preferences, we help our merchants better plan and customize their design and production process, eliminate unnecessary intermediaries and therefore retain more value.

憑藉我們對使用者管道和偏好的洞察能力，我們幫助商家更好地規劃和客製化他們的設計和生產流程，消除不必要的中間商，從而保留更多價值。

As a result, our merchants are empowered to offer better-quality SKUs at more competitive prices.

因此，我們的商家能夠以更具競爭力的價格提供更優質的 SKU。

We'll continue to deepen this value proposition with our C2M initiative with -- working with more producers and manufacturers in different industries.

我們將繼續透過 C2M 計劃與不同行業的更多生產商和製造商合作，深化這一價值主張。

In addition to our new brand initiative, which now serves a wider variety of goods ranging from electronics to glassware, we are also working with over 100 heritage brands from Shanghai to help them upgrade their product offerings.

除了我們的新品牌計畫（現在提供從電子產品到玻璃器皿等更廣泛的商品）之外，我們還與上海 100 多個傳統品牌合作，幫助他們升級產品。

For instance, Bee and Flower, a hair care brand with over 30 years of history, is narrowing their strong production capabilities with our data insights to develop a new line of products to be sold on Pinduoduo.

例如，擁有30多年歷史的護髮品牌蜂花，正在利用我們的數據洞察，縮小其強大的生產能力，開發新系列產品，並在拼多多上銷售。

At the same time, we'll continue to innovate and launch more interactive features.

同時，我們將持續創新，推出更多互動功能。

Take in-app games as an example.

以應用程式內遊戲為例。

We introduced several new games in January.

我們在一月推出了幾款新遊戲。

When users complete certain tasks such as browsing, playing with friends or making team purchases, they can unlock additional benefits or access special discount coupons, while the dollar value of such coupon is very small.

當用戶完成某些任務，例如瀏覽、與朋友一起玩或團隊購買時，他們可以解鎖額外的福利或獲得特殊折扣優惠券，而此類優惠券的美元價值非常小。

We introduced unexpected fun and excitement into the shopping journey and encourage our users to browse through our mall to discover more categories and more products, increasing user satisfaction.

我們為購物之旅引入了意想不到的樂趣和興奮，並鼓勵用戶瀏覽我們的商城，發現更多類別和更多產品，提高用戶滿意度。

After how we serve our users, I also want to touch on our commitment to the merchants on our platform.

在我們如何服務用戶之後，我還想談談我們對平台上商家的承諾。

We are committed to help our merchants be the brand or non-branded merchants to understand the end -- to understand and serve their target customers better.

我們致力於幫助我們的商家成為品牌或非品牌商家的最終理解者—更好地理解和服務他們的目標客戶。

For example, we launched a new brand initiative and heritage brand initiative to help newcomers develop their own brands and existing heritage brands to regain their popularity among our users.

例如，我們推出了新品牌計劃和傳統品牌計劃，幫助新來者發展自己的品牌，並幫助現有的傳統品牌重新獲得用戶的青睞。

We have invested sales and marketing dollars together with these brands to raise their profile and brand recognition among our users.

我們與這些品牌一起投資銷售和行銷資金，以提高他們在用戶中的形象和品牌認知度。

As of the end of April, the monthly sales of the heritage brands has grown close to 2.5x.

截至4月底，傳統品牌的月銷售額成長接近2.5倍。

Further, we take IP infringement seriously, and we are making the necessary investments to improve our existing system.

此外，我們嚴肅對待知識產權侵權問題，並正在進行必要的投資來改善我們現有的系統。

This is especially important when you consider the number of merchants and SKUs introduced on our platform daily.

當您考慮到我們平台上每天引入的商家和 SKU 數量時，這一點尤其重要。

Apart from working with merchants to create their new brand, we have also partnered closely with both domestic and foreign brands as well as IP alliances and public authorities to weed out IP-infringing sellers and products on our platform.

除了與商家合作創建新品牌外，我們還與國內外品牌以及智慧財產權聯盟和公共機構密切合作，以清除我們平台上的侵犯智慧財產權的賣家和產品。

Not only have we taken down over 45 million IP-infringing products from our platform in 2018, we have continuously enhanced our algorithms to identify fake goods and problematic merchants, allowing us to take swift actions.

2018年，我們不僅從平台上下架了超過4500萬件智慧財產權侵權產品，還不斷增強演算法來識別假貨和問題商家，以便我們能夠迅速採取行動。

Now let's switch gears on to other aspirations as we grow our platform.

現在，隨著我們平台的發展，讓我們轉向其他願望。

This past quarter, we launched Duo Duo Farms.

上個季度，我們推出了多多農場。

We're collaborating with local government and stakeholders from agricultural value chain to help alleviate poverty in many impoverished rural areas in China.

我們正在與地方政府和農業價值鏈的利害關係人合作，幫助中國許多貧困農村地區減輕貧困。

We plan to implement 1,000 Duo Duo Farms projects over the next 5 years.

我們計劃在未來5年內實施1,000個多多農場計畫。

Our first stop of this project is Baoshan in Yunnan province, which is known for its coffee beans.

我們這個計畫的第一站是雲南保山，這裡以咖啡豆聞名。

Our goal is to bring good quality coffee beans directly from source onto our e-commerce platform efficiently.

我們的目標是有效率地將優質咖啡豆直接從源頭引入我們的電子商務平台。

A typical coffee bean distribution chain has at least 5 layers, each adding 30% to 50% of markups.

典型的咖啡豆分銷鏈至少有 5 層，每層增加 30% 至 50% 的加價。

Information system -- information asymmetry throughout the value chain has meant that the upstream coffee farmers typically receive only about 1% of value within an entire value chain.

資訊系統－整個價值鏈中資訊不對稱的意味著上游咖啡農通常只能獲得整個價值鏈中約 1% 的價值。

We are cooperating with a local government to create a new farmer development model to enable upstream farmers to capture a greater share of the value created.

我們正與地方政府合作，打造新型態農民發展模式，讓上游農民獲得更大份額的創造價值。

Our central processing system for agriculture products enables us to utilize information about farmers' locations, logistics, production and a growing platform to match the product with end user -- end consumer demand.

我們的農產品中央處理系統使我們能夠利用有關農民位置、物流、生產和不斷增長的平台的信息，將產品與最終用戶（最終消費者的需求）相匹配。

As of now, we have connected 792 farmers with 6 of our coffee merchants who purchased 42 pounds of raw coffee beans.

截至目前，我們已將 792 名農民與我們的 6 家咖啡商聯繫起來，他們購買了 42 磅生咖啡豆。

After processing, these merchants can sell the coffee on our platform at a good price, well below what consumers typically are presented with at retail.

加工後，這些商家可以在我們的平台上以優惠的價格出售咖啡，遠低於消費者通常在零售店看到的價格。

Equally important, farmers get paid much higher prices than before.

同樣重要的是，農民得到的價格比以前高得多。

By better matching supply and demand, we can help farmers increase their income levels and help users enjoy the same product at more attractive prices.

透過更好的供需匹配，我們可以幫助農民提高收入水平，並幫助用戶以更具吸引力的價格享受相同的產品。

This is a real testimony of our core value of benefiting all.

這是我們普惠眾生的核心價值的真實見證。

Since this is the first quarter of the year, I'd like to end by emphasizing our continued focus on building long-term intrinsic value for our company.

由於這是今年第一季度，我想在結束時強調我們將繼續致力於為公司建立長期內在價值。

A key part of this equation today is to invest in our users and infrastructure.

今天這個等式的關鍵部分是投資我們的用戶和基礎設施。

As a fast-growing, young platform, we're attracting many new users daily.

作為一個快速發展的年輕平台，我們每天都吸引許多新用戶。

Yet, our mind share with them is too limited.

然而，我們與他們分享的思想太有限了。

Meanwhile, we are onboarding many new merchants with new products while constantly launching and iterating new features.

同時，我們也不斷推出、迭代新功能的同時，也為許多新商家帶來新產品。

Therefore, it is imperative to proactively create more engagement with our users so that we can discover what they have to offer.

因此，必須主動與使用者建立更多的互動，以便我們可以發現他們所提供的內容。

We believe with each and every good quality engagement, our users will come to trust and rely on Pinduoduo more for their shopping needs.

我們相信，透過每一次優質的互動，我們的用戶將更加信任並依賴拼多多來滿足他們的購物需求。

The more our users engage, purchase and interact our platform, the more they can help us to grow.

我們的用戶參與、購買和互動我們平台的次數越多，他們就越能幫助我們成長。

We as a platform will benefit from this positive network effect and realize meaningful continuous returns over the long run.

我們作為一個平台將受益於這種積極的網路效應，並從長遠來看實現有意義的持續回報。

As such, our sales and marketing spend is now targeted at driving specific journey growth in the short term but rather at building user trust, familiarity and user habits in the mid to long term.

因此，我們的銷售和行銷支出現在的目標是在短期內推動特定旅程的成長，而不是在中長期建立用戶信任、熟悉度和用戶習慣。

Pinduoduo is just serving a very small piece of the growing RMB 30 trillion total China retail sales market today.

如今，拼多多僅服務於不斷增長的 30 兆元人民幣的中國零售市場中的一小部分。

I am confident there is a lot of room for us to grow with our differentiated value proposition.

我相信，憑藉我們差異化的價值主張，我們有很大的成長空間。

Now let me turn the call over to our VP of Strategy, [David Leoh] with over 15 years of TMT banking experience at Goldman Sachs.

現在讓我把電話轉給我們的策略副總裁 [David Leoh]，他在高盛擁有超過 15 年的 TMT 銀行業務經驗。

[Dave] will take us through our financials in greater detail.

[戴夫]將帶我們更詳細地了解我們的財務狀況。

Thank you, Colin, and hello, everyone.

謝謝你，科林，大家好。

For the March 2019 quarter, we recorded strong results across major operating and financial metrics.

2019 年 3 月季度，我們在主要營運和財務指標方面均取得了強勁的業績。

Our last 12-month GMV grew 181% over the past year to reach RMB 557.4 billion.

過去 12 個月的 GMV 較去年增長 181%，達到 5,574 億元。

Total revenues grew 228% year-over-year to RMB 4.5 billion, up significantly from RMB 1.4 billion a year ago.

總營收年增 228%，達到 45 億元人民幣，較一年前的 14 億元大幅成長。

Our strong revenue growth was driven by our rising GMV and improving monetization rates despite low seasonality from the Chinese New Year holidays.

儘管農曆新年假期季節性較低，但 GMV 的上升和貨幣化率的提高推動了我們強勁的收入成長。

We derived 87% of our total revenues or RMB 3.9 billion from online marketing services.

我們總收入的 87%（即 39 億元人民幣）來自網路行銷服務。

This represents a more than threefold increase from RMB 1.1 billion for the same period last year.

這比去年同期的11億元增加了三倍多。

Our last 12-month online marketing take rate increased for the sixth consecutive quarter in a row to reach 2.6%.

我們過去 12 個月的網路行銷利用率連續第六個季度成長，達到 2.6%。

Several factors contributed to the growth of our online marketing services revenue.

有幾個因素促進了我們的網路行銷服務收入的成長。

First of all, we continue to attract more merchants to join and advertise on our platform.

首先，我們不斷吸引更多的商家加入我們的平台並在我們的平台上做廣告。

The rapid growth in our user base, our traffic volume and GMV lead to strong advertising ROI for our merchants.

我們的用戶群、流量和 GMV 的快速成長為我們的商家帶來了強勁的廣告投資報酬率。

Secondly, as our merchants become more familiar with our advertising products and analytics tools, they also become more willing to spend aggressively towards achieving their ROI targets.

其次，隨著我們的商家越來越熟悉我們的廣告產品和分析工具，他們也變得更願意積極投入以實現投資報酬率目標。

To give you an example, we introduced a number of new marketing tools this past quarter, including our market trend analysis and keyword trend analysis tools.

舉個例子，我們在上個季度推出了許多新的行銷工具，包括我們的市場趨勢分析和關鍵字趨勢分析工具。

These tools are designed to help merchants benchmark their outperformance against the industry and to adjust their investments as appropriate to achieve better results.

這些工具旨在幫助商家根據行業的表現來衡量他們的表現，並適當調整他們的投資以獲得更好的結果。

We have many more features of such nature planned in our pipeline.

我們的管道中還規劃了更多此類性質的功能。

Lastly, we continue to invest in our merchants through Duo Duo University.

最後，我們繼續透過多多大學對我們的商家進行投資。

This is an online program that we launched in July 2018.

這是我們於 2018 年 7 月推出的線上計畫。

Over 2 million merchants have accessed the over 1,300 online courses available to date.

迄今為止，已有超過 200 萬商家訪問了 1,300 多個線上課程。

These courses aim to help merchants enhance their marketing ROIs on our platform by showcasing best practices and educating them on our new tools and features.

這些課程旨在透過展示最佳實踐並向商家介紹我們的新工具和功能，幫助商家提高我們平台上的行銷投資回報率。

The remainder of revenues come from transaction services, of which commission fees contribute the mass majority.

其餘收入來自交易服務，其中佣金佔大部分。

Our transaction services revenue for the quarter grew by 116% year-over-year from RMB 276.5 million last year to RMB 596.8 million.

本季我們的交易服務收入年增 116%，從去年的 2.765 億元增至 5.968 億元。

Our transaction services revenue growth picked up this quarter as we adjusted our level of payment processing support to higher-quality merchants.

隨著我們調整對更高品質商家的支付處理支援水平，本季我們的交易服務收入成長加快。

We are pleased to note that despite the gradual reduction in discount offered to higher-quality merchants, we still see a sustained increase in the proportion of such quality merchants in our merchant base.

我們很高興地註意到，儘管向優質商戶提供的折扣逐漸減少，但我們的商戶群中優質商戶的比例仍然持續增長。

At the same time, we continue to build our other value-added services that we provide to help our merchants grow their business on our platform.

同時，我們繼續建立我們提供的其他加值服務，以幫助我們的商家在我們的平台上發展業務。

Moving on to cost.

繼續討論成本。

Our total cost of revenues increased by 174% from RMB 318.7 million in the same period last year to RMB 873.3 million this quarter.

我們的總收入成本從去年同期的 3.187 億元增加到本季的 8.733 億元，成長了 174%。

Our gross margin was 81% this quarter as compared to 77% a year ago.

本季我們的毛利率為 81%，去年同期為 77%。

Included in our cost of revenue this quarter is a payment rebate of RMB 339.2 million from Tencent.

本季的收入成本包括來自騰訊的3.392億元人民幣的支付回饋。

Adjusting for the rebate, our gross profit margin will have been 73%.

調整回扣後，我們的毛利率將為 73%。

The increase in our cost of revenues was primarily due to higher cost for cloud services, labor costs associated with our platform operations, customer service and quality control and merchant support services.

我們的收入成本增加主要是由於雲端服務成本增加、與我們的平台營運、客戶服務和品質控制以及商家支援服務相關的勞動力成本增加。

These expenses can be quite lumpy and do not directly correlate with the increase in our GMV or revenue.

這些費用可能相當龐大，並且與我們的 GMV 或收入的成長沒有直接關係。

We view these expenses as necessary investments to ensure scalability and performance of our platform over the long term.

我們將這些費用視為必要的投資，以確保我們平台的長期可擴展性和效能。

And we will continue to make such investments throughout the rest of the year.

我們將在今年剩餘時間內繼續進行此類投資。

Total operating expenses this quarter were RMB 5.8 billion as compared to RMB 1.3 billion in the same period last year.

本季總營運費用為 58 億元，去年同期為 13 億元。

Our sales and marketing expenses this quarter increased to RMB 4.9 billion as we continued to invest in driving greater brand awareness and user engagement.

隨著我們持續投資提高品牌知名度和用戶參與度，本季的銷售和行銷費用增加至 49 億元人民幣。

On a non-GAAP basis, our sales and marketing expenses as a percentage of our revenue was 103%.

以非公認會計原則計算，我們的銷售和行銷費用佔收入的百分比為 103%。

This quarter, we were one of the sponsors of the CCTV Spring Festival Gala, the biggest annual TV event in China with 1.2 billion viewers and one of the most watched live shows in the world.

本季度，我們是中央電視台春節聯歡晚會的贊助商之一，這是中國最大的年度電視盛會，擁有 12 億觀眾，也是全球收視率最高的現場表演之一。

We held a series of successful online promotions leading up to the TV event.

在電視活動之前，我們舉辦了一系列成功的線上促銷活動。

And together, these initiatives helped to spur user downloads and increase brand recognition and engagement.

這些措施共同幫助刺激了用戶下載並提高了品牌認知度和參與度。

We continue to build on this momentum throughout the quarter, and we saw user activity in our platform bounce back quickly post Chinese New Year.

我們在整個季度繼續保持這一勢頭，我們看到我們平台上的用戶活動在農曆新年後迅速反彈。

This investment in user engagement helped to stimulate more frequent purchases and build our annual spending per active user to RMB 1,257, an 87% increase from RMB 674 for March 2018 quarter.

這種對用戶參與度的投資有助於刺激更頻繁的購買，並將我們每個活躍用戶的年度支出提高到人民幣 1,257 元，比 2018 年 3 月季度的人民幣 674 元增長 87%。

Not only do we continue to see existing users upgrade their consumption behavior on our platform, we have observed some newer users actually making higher-value purchases earlier in their life cycle when compared to older cohorts.

我們不僅繼續看到現有用戶在我們平台上升級他們的消費行為，而且我們還觀察到，與老用戶相比，一些新用戶實際上在生命週期的早期進行了更高價值的購買。

This is a reflection of the improved product selection we have on our platform, and more importantly, it is also a sign that these new users have greater trust and confidence in us.

這不僅體現了我們平台上產品選擇的改進，更重要的是，這也顯示這些新用戶對我們有了更大的信任和信心。

Sales and marketing is an investment that can create meaningful long-term returns for us.

銷售和行銷是一項可以為我們創造有意義的長期回報的投資。

We expect our users to grow with our platform and spend more over time.

我們希望我們的用戶能夠隨著我們的平台一起成長，並隨著時間的推移花費更多。

At the same time, we would like our users to be informed of our products and services improvements and to try them out more frequently.

同時，我們希望用戶了解我們的產品和服務改進，並更頻繁地嘗試它們。

Sales and marketing is a means for us to incur such activities.

銷售和行銷是我們進行此類活動的一種手段。

That being said, we remain stringent on ROI of our sales and marketing investments.

話雖如此，我們對銷售和行銷投資的投資回報率仍然嚴格。

Where the math did not work, we have held off and will hold off from making such marketing investments.

如果數學不起作用，我們就會推遲並將會推遲進行此類行銷投資。

We are confident that our investments will pay off.

我們相信我們的投資將會得到回報。

We'll continue to be optimistic but disciplined in sales and marketing for the rest of 2019.

2019 年剩餘時間，我們將繼續對銷售和行銷保持樂觀但嚴格的態度。

Our general and administrative expenses this quarter were RMB 236.1 million with the increase primarily due to an increase in headcount and share-based compensation expenses.

本季我們的一般和管理費用為 2.361 億元，增加的主要原因是員工人數和股權激勵費用的增加。

On a non-GAAP basis, our G&A expenses as a percentage of our revenue was 1%.

根據非公認會計原則，我們的一般及行政費用佔收入的百分比為 1%。

Our research and development expenses were RMB 667.1 million this quarter, a significant increase from last year as we invested in hiring more experienced algorithm engineers and spent more on R&D-related cloud services.

本季我們的研發費用為人民幣 6.671 億元，較去年大幅成長，因為我們投資聘請了更多經驗豐富的演算法工程師，並在研發相關的雲端服務上投入了更多資金。

On a non-GAAP basis, R&D expenses as a percentage of our revenue was 12%.

以非公認會計準則計算，研發費用占我們收入的百分比為 12%。

As disclosed in our 20-F, we exited 2018 with close to 3,700 staff with over 50% of them being engineers involved in product development.

如同 20-F 所揭露的，2018 年結束時，我們擁有近 3,700 名員工，其中超過 50% 是參與產品開發的工程師。

We expect to continue investing in our R&D capability this year and are looking to grow our engineering team by at least 2,000 staff.

我們預計今年將繼續投資於我們的研發能力，並希望將我們的工程團隊擴大到至少 2,000 名員工。

We plan to enhance our distributed A.I. infrastructure and invest in core technologies that can help us improve our user experience and product quality.

我們計劃增強我們的分散式人工智慧。基礎設施並投資核心技術，可以幫助我們提高用戶體驗和產品品質。

We are also in discussions with various universities and research institutes regarding joint research efforts and research center collaboration.

我們也與各大學和研究機構就聯合研究工作和研究中心合作進行討論。

Operating loss this quarter came to RMB 2.1 billion compared with a loss of RMB 253 million in the same period last year.

本季營運虧損為人民幣21億元，去年同期為虧損2.53億元。

Non-GAAP operating loss was RMB 1.6 billion compared with a loss of RMB 240 million in the same period last year.

非美國通用會計準則營運虧損為人民幣16億元，去年同期為虧損2.4億元虧損。

Net loss attributable to ordinary shareholders was RMB 1.9 billion this quarter compared with net loss of RMB 281.5 million in the same quarter last year.

本季歸屬於普通股股東的淨虧損為19億元，去年同期淨虧損為2.815億元。

Basic and diluted net loss per ADS were RMB 1.64 compared with net loss per ADS of RMB 0.64 during the same period of last year.

每份美國存託憑證基本及攤薄淨虧損為人民幣1.64元，而去年同期每份美國存託憑證淨虧損為人民幣0.64元。

Non-GAAP net loss attributable to ordinary shareholders were RMB 1.4 billion compared with net loss of RMB 267.9 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為 14 億元，而去年同期淨虧損為 2.679 億元。

Non-GAAP basic and diluted net loss per ADS were RMB 1.2 compared with RMB 0.6 for the same quarter of 2018.

非 GAAP 每股美國存託股基本及攤薄淨虧損為 1.2 元，而 2018 年同期為 0.6 元。

That completes the profit and loss statement for the first quarter.

第一季的損益表就這樣完成了。

Net cash flow used in operating activities was RMB 1.5 billion compared with RMB 683.5 million in the same quarter last year primarily due to an increase in operating expenses.

經營活動使用的現金流量淨額為人民幣15億元，去年同期為人民幣6.835億元，主要是營運費用增加。

As of March 31, 2019, the company had a strong balance sheet with RMB 37.2 billion in cash, cash equivalents and restricted cash.

截至2019年3月31日，公司資產負債表穩健，現金、現金等價物及限制性現金為人民幣372億元。

Excluding restricted cash, we had RMB 22.5 billion in cash and cash equivalents.

扣除限制性現金後，我們擁有現金及現金等價物人民幣225億元。

In addition to this amount, we had RMB 6.9 billion in short-term investments.

除此之外，我們還有69億元的短期投資。

As such, we remain confident in our ability to make necessary investment this year and to grow in line with our expectations.

因此，我們對今年進行必要投資並實現預期成長的能力充滿信心。

The encouraging increased engagement by our users and merchants signals to us that our new e-commerce ecosystem derives meaningful value from our platform.

我們的用戶和商家的參與度不斷增加，這令人鼓舞，這向我們表明，我們的新電子商務生態系統從我們的平台中獲得了有意義的價值。

We will continue to do what is right for our users and keep differentiating ourselves with our focus on a fun, value-for-money shopping experience.

我們將繼續為用戶做正確的事情，並透過專注於有趣、物有所值的購物體驗，不斷使自己與眾不同。

This concludes our prepared remarks.

我們準備好的演講到此結束。

Operator, we are now ready for questions.

接線員，我們現在準備好提問了。

(Operator Instructions) We have our first question coming from the line of Grace Chen from Morgan Stanley.

（操作員說明）我們的第一個問題來自摩根士丹利的 Grace Chen。

My question is about sales and marketing strategy.

我的問題是關於銷售和行銷策略。

I just want to take it a bit further.

我只是想更進一步。

It'll be great if management would share your plan to increase sales and marketing efficiency and operating strategy specifically for coupon and -- coupon versus branding.

如果管理層能夠分享您提高銷售和行銷效率的計劃以及專門針對優惠券和優惠券與品牌的營運策略，那就太好了。

Okay.

好的。

I'll take that one.

我會接受那個。

Well, since last quarter, there were quite a few questions surrounding sales and marketing.

嗯，自上個季度以來，圍繞銷售和行銷出現了很多問題。

But the purpose of sales and marketing spending is really focusing on building greater brand recognition and developing strong user engagement.

但銷售和行銷支出的目的實際上是專注於建立更大的品牌認知度和發展強大的用戶參與度。

There are 2 important points I'd like to make about sales and marketing.

關於銷售和行銷，我想強調兩點。

We view sales and marketing as a discretionary investment from which we expect to realize meaningful long-term value.

我們將銷售和行銷視為一項可自由支配的投資，我們希望從中實現有意義的長期價值。

Second, our sales and marketing investments must meet the strict ROI requirements we've set internally.

其次，我們的銷售和行銷投資必須滿足我們內部設定的嚴格的投資報酬率要求。

For the investors who haven't read my letter to shareholders, I strongly recommend to read that because at this stage, although PDD is still -- it's not small anymore, but it's still early stages.

對於那些還沒讀過我給股東的信的投資者，我強烈建議您閱讀一下，因為在現階段，雖然拼多多的規模已經不小了，但仍處於早期階段。

We are still sort of a start-up, and we have a large user base and good user retention and fairly decent brand recognition.

我們仍然是一家新創公司，我們擁有龐大的用戶群、良好的用戶保留率和相當不錯的品牌認知。

But the brand awareness is not fully cemented in users' brains yet.

但品牌意識還沒有完全紮根於使用者的大腦。

So at this stage, we actually want to spend the money we earned to increase user awareness and also increase the mind share of PDD in users' mind.

所以現階段我們其實是想把賺到的錢花在提升使用者認知度上，同時也提高拼多多在使用者心中的心智佔有率。

We added a lot of new users in the past year who are still forming to their shopping habits on our platform.

去年我們增加了許多新用戶，他們仍在我們平台上形成購物習慣。

We have seen our new -- our older cohorts of users spending a few times more than when they joined.

我們已經看到我們的新舊用戶群體的支出比他們加入時多了幾倍。

So retaining and accommodating existing users on our platform is all the more important as well as attracting new users.

因此，保留和容納我們平台上的現有用戶以及吸引新用戶就顯得尤為重要。

Over time, we hope Pinduoduo will be with the platform they think of when they you want to browse during their [scattered] times and also when they want to -- want value-for-money products when they become seasonal users.

隨著時間的推移，我們希望拼多多能夠成為他們在分散時間想瀏覽、成為季節性用戶想要物有所值的產品時想到的平台。

So you can look at our different types of sales and marketing spend.

因此，您可以查看我們不同類型的銷售和行銷支出。

You can see how we're trying to drive towards this goal.

您可以看到我們如何努力實現這一目標。

[First of all], brand advertising help us to build brand awareness whereas online performance advertising increases our traffic exposure and increases the user engagement.

[首先]，品牌廣告幫助我們建立品牌知名度，而線上效果廣告則增加我們的流量曝光並提高用戶參與度。

And coupon and promotions are designed to encourage repeat usage habits by getting users to engage with us more often and sometimes incentivize the users to try different new features as we constantly improve our product and our features -- and future offerings.

優惠券和促銷活動旨在透過讓用戶更頻繁地與我們互動來鼓勵重複使用習慣，並且有時會激勵用戶嘗試不同的新功能，因為我們不斷改進我們的產品和功能以及未來的產品。

Well, also brand advertising and TV program sponsorships are designed to reach a wide audience such as the Chinese New Year campaign and the World Cup.

品牌廣告和電視節目贊助也旨在吸引廣泛的受眾，例如農曆新年活動和世界盃。

It is meant to raise awareness, recognition and trust of our platform.

其目的是提高對我們平台的認識、認可和信任。

And third, for the online performance advertising and coupons and promotions are more targeted and their effect are monitored on a real-time basis.

第三，線上成效廣告和優惠券促銷更有針對性，效果即時監控。

There are a number of factors as we calculate ROI: there are frequency categories, [setting] interactions with other users and also number of new users they bring over, number of inactive users they reactivated, et cetera, et cetera.

我們計算投資報酬率時會考慮很多因素：頻率類別、與其他用戶的[設定]互動以及他們帶來的新用戶數量、他們重新激活的不活躍用戶數量等等。

As we measure these over various iterations such as 1 day, 1 week, 3 months, et cetera, we do adjust our spending on these channels on a real-time basis whilst we see ROI of those channels shift.

當我們透過各種迭代（例如 1 天、1 週、3 個月等）來衡量這些時，我們會即時調整在這些管道上的支出，同時我們會看到這些管道的投資回報率發生變化。

Overall, I want to summarize.

總的來說，我想總結一下。

We're -- because we're very confident of our long-term earning power, so I think at this stage, the best way to use the revenue proceeds is probably to invest in R&D, invest in infrastructure and also, more importantly, invest in user awareness and brand recognition and also try to concentrate the user behavior in a way that they will choose PDD as their dominant place for shopping and for a lot of the browsing.

我們－因為我們對自己的長期獲利能力非常有信心，所以我認為在現階段，使用收入收益的最佳方式可能是投資於研發、投資基礎設施，更重要的是，投資於使用者認知度和品牌認知度，並嘗試集中用戶行為，讓他們選擇拼多多作為購物和大量瀏覽的主要場所。

So sorry for the too long answer, but I'm not sure that it covers all your worries or doubts.

很抱歉回答太長，但我不確定它是否涵蓋了您所有的擔憂或疑慮。

We have our next question coming from the line of Natalie Wu from CICC.

我們的下一個問題來自中金公司的 Natalie Wu。

I have 2 questions here.

我這裡有兩個問題。

The first question is that we see quite good online marketing take rate improvement in this quarter.

第一個問題是，我們看到本季的網路行銷利用率有相當好的改善。

So could management share with us some color on drivers of our monetization ramp-up?

那麼管理階層能否與我們分享一些關於我們貨幣化成長驅動因素的資訊？

And how should we think about the trend for monetization for remaining of the year?

我們該如何看待今年剩餘時間的貨幣化趨勢？

That my first question.

這是我的第一個問題。

And my second question, I guess I have follow-up on your sales and marketing spending.

我的第二個問題，我想我對你們的銷售和行銷支出有跟進。

So what's our sales and marketing plan for the full year 2019?

那麼我們2019年全年的銷售和行銷計畫是什麼？

Thank you, Natalie.

謝謝你，娜塔莉。

Let me start with the online marketing services take rate question that you referred to.

讓我從您提到的線上行銷服務費率問題開始。

We really view our online marketing service take rate as a reflection of the value that we bring to our merchants.

我們確實認為我們的線上行銷服務費率反映了我們為商家帶來的價值。

It is ultimately driven by user satisfaction and our differentiated value proposition.

它最終是由用戶滿意度和我們差異化的價值主張所驅動的。

So we do not focus at this moment on take rate.

因此，我們目前不關注轉換率。

But instead, we focus on improving our SKU offerings to our customers.

相反，我們專注於改善為客戶提供的 SKU 產品。

We focus on customer service, which we believe will lead to more user interactions within the platform and among themselves.

我們專注於客戶服務，我們相信這將帶來更多的平台內和用戶之間的互動。

This translates into more exposure for our merchants.

這將為我們的商家帶來更多的曝光。

So as merchants' ROI increases with exposure and sales, they naturally want to spend more on our platform.

因此，隨著商家的投資報酬率隨著曝光度和銷售額的增加而增加，他們自然希望在我們的平台上花費更多。

And from a results perspective, we have seen our take rate increase over time.

從結果的角度來看，我們看到我們的採用率隨著時間的推移而增加。

We're still at a very early stage of monetizing our platform, and we will continue the help merchants serve our users better and make money.

我們仍處於平台貨幣化的早期階段，我們將繼續幫助商家更好地服務我們的用戶並賺錢。

But we want to be mindful, and we will be mindful on balancing between monetization and growth.

但我們要保持謹慎，並且我們會注意貨幣化和成長之間的平衡。

For now, we'll continue to prioritize growth, but we know that the underlying drivers of monetization remain healthy as we see our merchant base continuing to expand and our merchants becoming more active in marketing as they become more familiar with our platform.

目前，我們將繼續優先考慮成長，但我們知道，貨幣化的潛在驅動力仍然健康，因為我們看到我們的商家基礎繼續擴大，並且隨著我們的商家對我們的平台更加熟悉，他們在行銷方面變得更加積極。

Well, I want to add a little bit to [David's] answer.

好吧，我想對 [David] 的答案補充一點。

Actually, I think the increase you see right now is just a very small fluctuation.

事實上，我認為你現在看到的成長只是一個很小的波動。

Personally, I don't encourage our investors to measure the monetization rate on a quarter-by-quarter basis.

就我個人而言，我不鼓勵我們的投資者以季度來衡量貨幣化率。

Instead, you should just look at it on a longer time frame, at least for half year or a year -- on a yearly basis.

相反，你應該以更長的時間範圍來看待它，至少半年或一年——每年一次。

And for seasonal reasons and our policy exchanges -- I mean, platform policy exchanges maybe, those kind of small fluctuations, I think you can ignore that.

由於季節性原因和我們的政策交流——我的意思是，可能是平台政策交流，那些小的波動，我認為你可以忽略它。

But over the long run, I think in terms of monetization, we're still at a very early stage, yes.

但從長遠來看，我認為就貨幣化而言，我們仍處於非常早期的階段，是的。

Natalie, I think you also had a question on the 2019 sales and marketing.

Natalie，我想您也有關於 2019 年銷售和行銷的問題。

Given our fast growth, it's very hard for us to give you guidance.

鑑於我們的快速發展，我們很難為您提供指導。

We are pleased with the results of our marketing campaign thus far.

我們對迄今為止行銷活動的結果感到滿意。

And as we have mentioned a number of times, we will continue to make investment as long as we think the expected returns meet or exceeds our ROI targets.

正如我們多次提到的，只要我們認為預期回報達到或超過我們的投資報酬率目標，我們就會繼續進行投資。

So we believe we're in a good position to do so as we see our GMV and monetization continue to grow.

因此，我們相信，隨著我們的 GMV 和貨幣化繼續增長，我們處於有利位置。

Yes.

是的。

I also want to add a few sentences.

我還想補充幾句話。

Basically, if the market is good and we're doing a good job, then you should expect us to spend more.

基本上，如果市場良好且我們做得很好，那麼你應該期望我們花更多的錢。

With that, you may see more deficits.

這樣，您可能會看到更多的赤字。

But if we're doing a mediocre job, then probably you will see sort of -- that'll be more in line with a lot of the expectations maybe.

但如果我們做得很平庸，那麼你可能會看到——這可能更符合很多期望。

But internally, we do have a very strict metric for every penny we spend, and that is really based on a carefully calculated ROI of all these marketing campaigns.

但在內部，我們確實對我們花的每一分錢都有一個非常嚴格的衡量標準，這實際上是基於所有這些行銷活動的仔細計算的投資回報率。

So that is more based on whether -- since we're treating a lot of the marketing as investment, so the philosophy will be, if there is a good deal, then we'll invest.

因此，這更取決於是否——因為我們將許多行銷視為投資，所以我們的理念是，如果有一筆好交易，那麼我們就會投資。

But if the price is too high, then we'll just refrain from that.

但如果價格太高，我們就會避免這樣做。

So with that mentality in mind, it is pretty hard for us to kind of predict or to precisely calculate how much we will spend or budgeting.

因此，考慮到這種心態，我們很難預測或精確計算我們將花費多少或預算。

Okay?

好的？

(Operator Instructions) We have the next question coming from the line of Alicia Yap from Citigroup.

（操作員指示）我們有下一個問題來自花旗集團的 Alicia Yap。

Congrats on solid results.

祝賀取得了紮實的成果。

My question is related to the competitive landscape.

我的問題與競爭格局有關。

So can management share with us, how do you see the impact or potential threat from your bigger peer here going after more aggressively in growing more new user, right from the lower-tier cities?

那麼，管理層能否與我們分享一下，您如何看待來自較低線城市的更大同行更積極地增加更多新用戶的影響或潛在威脅？

And have you seen any rising difficulty in retaining new user that you acquire over the last few months?

您是否發現在過去幾個月中留住新用戶變得越來越困難？

And then in terms of -- what are some of the measure you believe you could be effective to counter the competition?

然後，您認為可以採取哪些措施來有效應對競爭？

And -- or are you not really worried about the competition?

而且——或者你真的不擔心競爭嗎？

So any colors on that would be helpful.

所以任何顏色都會有幫助。

Well, for competition, it is a hot topic last quarter and even it's continuing just now.

那麼對於競爭來說，上個季度這是一個熱門話題，甚至現在還在繼續。

And I have to say that the competition we see at this moment and a lot of the actions our competitors have taken, for instance, like the forced exclusivity in Chinese (foreign language), it's unprecedented, I have to say.

我必須說，我們現在看到的競爭以及我們的競爭對手採取的許多行動，例如強制中文（外語）獨佔權，我不得不說，這是前所未有的。

But it is becoming more and more interesting.

但它變得越來越有趣。

You rightly pointed out that a very important factor is the user.

您正確地指出了一個非常重要的因素是使用者。

So if we look at our user base and look at our users' behavior and retention, I think we're very happy about the current status.

因此，如果我們看看我們的用戶群、用戶的行為和保留率，我認為我們對目前的狀態非常滿意。

And not only it's healthy, but I guess the competition even increased users' kind of engagement and support.

這不僅是健康的，而且我認為競爭甚至增加了用戶的參與和支持。

So of course, in the short run, the competition, especially some of the forced exclusivity, will have some effect our merchants in a negative way.

當然，從短期來看，競爭，尤其是一些強制排他性，會對我們的商家產生一些負面影響。

But in the long run, I don't see any sustainable measures that they can take.

但從長遠來看，我看不到他們可以採取任何可持續的措施。

And as a side effect of all these negative movements the competitors are doing, we also see some positive side effect.

作為競爭對手所做的所有這些負面行動的副作用，我們也看到了一些正面的副作用。

A lot of the merchants and brands start to realize how important our platform is.

很多商家和品牌開始意識到我們的平台有多重要。

So looking at this in another way, as we grow bigger, the opportunity cost merchants incur by not being on our platform also increases.

所以換個角度來看，隨著我們規模的擴大，商家因不在我們平台上而產生的機會成本也會增加。

Merchants, like our users, ultimately want more sales from more channels.

商家和我們的用戶一樣，最終希望透過更多管道獲得更多銷售額。

Rather than forcing merchants to go against their best interest, we think a more sustainable way to stay competitive in the long term is to build up our intrinsic value by focusing on serving our users well.

我們認為，長期保持競爭力的更永續的方式是透過專注於為用戶提供良好服務來建立我們的內在價值，而不是強迫商家違背他們的最佳利益。

We don't think China e-commerce has to be a zero-sum game.

我們認為中國電子商務不一定是零和遊戲。

I also personally -- there are quite a few paragraphs in the letter to shareholders about the recent competition landscape.

我個人也——在給股東的信中，有許多段落談到了最近的競爭格局。

I think it will continue like this for quite some time.

我想這樣的情況還會持續相當一段時間。

But the outcome is also predictable, I think, because I don't think any brand will, in the long run, go against their fundamental interest.

但我認為結果也是可以預見的，因為我認為從長遠來看，任何品牌都不會違背他們的根本利益。

And also, if we -- 5 years down the road, if there is the only 1 de facto e-commerce platform or kind of circulation system in China that, that kind of result, I don't think it's acceptable in China, and it's unimaginable.

而且，如果我們──5年後，如果中國祇有一個事實上的電子商務平台或一種流通系統，這種結果，我認為這在中國是不能接受的，而且這是難以想像的。

So if not PDD, there has to be some other large-scale new e-commerce platform to exist.

因此，如果沒有拼多多，就必須有其他一些大型的新電商平台存在。

So with that said, I'm also -- I'm participating in this kind of competition, but I'm also never out of this competition.

話雖如此，我也——我正在參加這種比賽，但我也永遠不會退出這場比賽。

I'm -- personally, I'm getting more and more intrigued and getting interested in this kind of thing because I see a very good sign, is that the whole industry, including the larger-scale competitor, has actually followed our -- a lot of our initiatives.

就我個人而言，我對這種事情越來越感興趣，因為我看到了一個非常好的跡象，那就是整個行業，包括規模更大的競爭對手，實際上都在遵循我們的——我們的很多舉措。

For instance, if we are going to Yunnan and we do the coffee bean and others will follow us and go there and also to buy the coffee beans from farmers; we do [new bread] initiative, they will also do; and when we launched Heritage brand initiatives, almost the whole industry followed us.

比如說，如果我們去雲南，我們做咖啡豆，其他人就會跟著我們去那裡，也從農民那裡買咖啡豆；我們主動做【新麵包】，他們也會做；當我們推出 Heritage 品牌舉措時，幾乎整個產業都跟著我們。

So this kind of phenomenon is also unprecedented and it's also encouraging because a lot of our initiatives we're doing today is actually not just purely from our economic incentive.

所以這種現像也是前所未有的，也是令人鼓舞的，因為我們今天所做的許多措施其實不只是純粹出於我們的經濟誘因。

A lot of that is our social responsibility.

其中很多是我們的社會責任。

As a bigger platform in China, we do think we should take social responsibility seriously as our first-degree necessity.

作為中國一個更大的平台，我們確實認為我們應該認真對待社會責任作為我們的首要必要性。

With that, if we go to the farmers, buy coffee beans and that will lead the way for others to buy coffee beans from them, therefore those farmers get greatly helped and their income got increased.

這樣，如果我們到農民那裡去購買咖啡豆，就會引導其他人從他們那裡購買咖啡豆，因此那些農民得到了很大的幫助，他們的收入也增加了。

That is more than welcome.

這是非常受歡迎的。

That also shows the value of our platform.

這也體現了我們平台的價值。

And this is kind of a trend.

這是一種趨勢。

If they don't change their strategy, I guess we'll continue also, which is very good for the industry and very good for China as well.

如果他們不改變策略，我想我們也會繼續下去，這對整個產業非常有利，對中國也非常有利。

And to conclude the answer to your question, I have to point out that China's retail market -- physical goods retail market now is already CNY 30 trillion and it's still growing, and online e-commerce percentage of this CNY 30 trillion market is also growing, and very likely in the future online/off-line will be mingled together.

為了回答你的問題，我必須指出，中國的零售市場——實體商品零售市場現在已經是30萬億元人民幣，而且還在不斷增長，而在線電子商務在這個30萬億元人民幣的市場中所佔的比例也在不斷增長。

Therefore, the total market we're in here is tremendous.

因此，我們這裡的總市場是巨大的。

So we're currently just selling a very, very small part of that, and it's unlikely to be a zero-sum game.

所以我們目前只出售其中非常非常小的一部分，而且不太可能是零和遊戲。

And very likely, the current severe competition will lead to 2, 3, even more very strong companies.

而且很可能，當前激烈的競爭將導致2、3家甚至更多非常強大的公司出現。

Thank you.

謝謝。

We have our next question coming from the line of Piyush Mubayi from Goldman Sachs.

我們的下一個問題來自高盛的 Piyush Mubayi。

Colin, for a relatively new company, as we approach the 1 year anniversary of your listing, can you look at areas where PDD has surprised you on the upside and you've done very well as well as areas where you still need to address?

Colin，對於一家相對較新的公司來說，在我們即將迎來上市一周年之際，您能否看看拼多多在哪些方面讓您感到驚訝，而您做得很好，以及哪些方面您仍然需要解決？

And by that, I mean areas such as your bench at this point of time?

我指的是現在你的板凳等區域？

And my second question, if I may slip in one, on your sales and marketing spend, could you detail which channels have proven to be those that are very effective on conversion, for instance?

我的第二個問題，如果我可以插一句，關於您的銷售和行銷支出，您能否詳細說明哪些管道已被證明對轉換非常有效？

And related to that, if I look at the magnitude of spend for the sponsorship of the CNY gala (sic) [CCTV Spring Festival Gala], should we think of SG&A for the rest of the year based on the 103% of revenue in the first quarter or the 63% if I exclude the CNY spend based on my estimate?

與此相關的是，如果我看看贊助農曆新年晚會（原文如此）[CCTV 春節聯歡晚會] 的支出規模，我們是否應該根據 103% 的收入考慮今年剩餘時間的 SG&A第一季度還是63%（如果我根據我的估計排除人民幣支出）？

Okay, I will leave the second question to David.

好的，我將第二個問題留給大衛。

For the first question, well, I have to say that we're extremely lucky as a young company, and we have been growing very fast.

對於第一個問題，我必須說，作為一家年輕的公司，我們非常幸運，而且我們發展得非常快。

And we have -- we are born in a good age with this model.

我們出生在一個擁有這種模式的好時代。

One thing that surprised me a little bit is that I do see the power of this platform to solve some of the social problems, the existing problems.

讓我有點驚訝的一件事是，我確實看到了這個平台解決一些社會問題、現有問題的力量。

And I feel very proud of our initiatives and efforts in the agriculture industry because this is a big area for China, especially meaningful because there are still more than 300 million people, peasants working on the fields directly, excluding the peasants working in cities building the houses.

我對我們在農業領域的舉措和努力感到非常自豪，因為這對中國來說是一個很大的領域，特別有意義，因為還有三億多人，直接在田裡勞作的農民，不包括在城市建設農村的農民。

So when we change the agriculture upstream model a little bit, that does improve the efficiency a lot.

所以當我們稍微改變農業上游模式時，效率確實提高了很多。

And today, with the increasing user base and increasing influence of PDD, I -- and also the increasing intensity of the competition, I gladly to see basically the whole industry start to study our agricultural efforts and try to put more emphasis and resources into that area.

今天，隨著PDD的用戶基數不斷增加，影響力越來越大，我——以及競爭的日益激烈，我很高興看到基本上整個行業都開始研究我們的農業工作，並嘗試投入更多的重視和資源。

So that is really good, and I feel so happy about that.

所以這真的很好，我對此感到很高興。

One thing that -- the negative surprise, not a big surprise.

有一點是──負面的驚喜，而不是大的驚喜。

I guess I had a sort of pretty good kind of -- sort of prepared for that.

我想我已經為此做好了某種相當好的準備。

But still, we're in a position which is not understood, especially for some of the [law] reporting and those kind of things.

但我們仍然處於不被理解的境地，特別是對於一些[法律]報告和此類事情。

When you're in a situation you are misunderstood and you cannot then [are to] actually explain it, that actually personally makes me a little bit sad, but that's the fact.

當你處於某種情況時，你會被誤解，而你卻無法真正解釋它，這實際上讓我個人有點難過，但這就是事實。

And that's also kind of the lesson we have to learn and have to grow.

這也是我們必須學習和成長的教訓。

But with all that said, I think I already feel very fortunate, and I think the whole team got excited by what we have done, especially when we see the good things happening on the field -- right in the field.

但話雖如此，我想我已經感到非常幸運，而且我認為整個團隊都對我們所做的事情感到興奮，特別是當我們看到球場上發生的好事時——就在球場上。

Piyush, to answer your second question regarding sales and marketing, as you know, we do not give guidance for the full year because the situation that we are in today remains to be quite dynamic.

Piyush，回答你關於銷售和行銷的第二個問題，如你所知，我們不會給出全年的指導，因為我們今天所處的情況仍然非常動態。

Not only do the opportunities vary from time to time, the pricing of such opportunities also move around.

不僅機會會隨著時間的推移而變化，而且這些機會的定價也會改變。

What is not -- what we -- or what does not move around really is how we think about ROI in terms of our investment in sales and marketing.

真正不存在的——或者說不變的是我們如何看待銷售和行銷投資的投資報酬率。

So as we think about the spending that we make in sales and marketing, we focus now in particular on responses by our users.

因此，當我們考慮在銷售和行銷方面的支出時，我們現在特別關注用戶的反應。

So looking at the promotions and the coupons side, for example, recently, we have had some very successful campaign that generated excitement and sharing and conversion on our platform.

因此，看看促銷和優惠券方面，例如，最近，我們開展了一些非常成功的活動，在我們的平台上產生了興奮、分享和轉換。

So we will continue to assess opportunities as they arise going forward in the rest of the year, that we will -- and you should expect us to remain -- continue to remain very disciplined as we think about our return on investment.

因此，我們將繼續評估今年剩餘時間內出現的機會，我們將——你們應該期望我們繼續進行——在考慮投資回報時繼續保持非常自律。

Can I ask just ask specifically, should we use 63% or 103% as a thinking point, especially given that CPMs across the industry have pulled back dramatically into the second quarter?

我可以具體問一下，我們應該用63%還是103%作為思考點，特別是考慮到整個產業的CPM在第二季已經大幅回落？

And also, if I look at certain data points that are getting released by third-party vendors that track you, it appears that you had a very strong April.

而且，如果我查看追蹤您的第三方供應商發布的某些數據點，您會發現四月份的表現非常強勁。

And that's why I asked the question, is that same spend translating to much more effective growth in the month of April and going forward.

這就是為什麼我問這個問題，同樣的支出是否會轉化為 4 月及未來更有效的成長。

Well, I cannot comment specifically on that.

嗯，我不能對此具體發表評論。

But when you talk about the macro environment in the advertising industry, I don't think that is fully kind of revealed yet.

但當你談論廣告業的宏觀環境時，我認為這還沒有完全揭示出來。

And it also fluctuates.

而且它也會波動。

And when it comes to our industry, the e-commerce, I think because of the competition, it's still fairly severe.

對於我們的電子商務行業，我認為由於競爭，它仍然相當激烈。

So I don't think those macro numbers that -- have significant meaning or significantly useful way to do to the calculation.

因此，我不認為那些宏觀數字對計算具有重大意義或非常有用的方法。

Again, regardless what kind of a macro it is, we will just use our internal metric to measure the ROI, just like you're investing while you're following the value investing policy.

再說一遍，無論是什麼樣的宏觀，我們都會用我們的內部指標來衡量投資報酬率，就像你在遵循價值投資政策時進行投資一樣。

So it doesn't really matter what the stock price is.

所以股票價格是多少並不重要。

You just have to look at the intrinsic value and the current price.

您只需查看內在價值和當前價格即可。

If the price is good, then you will just buy it.

如果價格好的話，你就會買它。

We have the next question coming from the line of Joyce Ju of Bank of America.

我們的下一個問題來自美國銀行的 Joyce Ju。

My question is actually related to cost of revenue.

我的問題實際上與收入成本有關。

First, may we get more colors on the payment rebate from Tencent this quarter?

第一，本季騰訊的支付回饋能否有更多的色彩？

Is this actually a 1-quarter event and related to this quarter's expenses only?

這實際上是 1 季度的事件並且僅與本季的支出相關嗎？

Or this was actually for a longer historical period?

或者這實際上是一個更長的歷史時期？

And how should we expect an implied unit payment cost for this quarter or like for the rest of the year?

我們該如何預期本季或今年剩餘時間的隱含單位支付成本？

Secondly, Colin mentioned that this year, company will continue to invest a lot to strengthen the merchant services, which were also related to the cost of the revenue but not directly correlated to the GMV?

其次，Colin提到，今年公司會持續投入大量資金加強商家服務，這也與收入成本有關，但與GMV沒有直接關係？

Could you elaborate more in terms of like what this investment will be and how should we expect the amount or the scale of the investment and how this will affect the gross margin for this year?

您能否詳細說明這項投資是什麼，我們應該如何預期投資的金額或規模，以及這將如何影響今年的毛利率？

Thank you for the question.

謝謝你的提問。

First of all, on the question regarding the rebate.

首先，關於回扣的問題。

The rebate that we received from Tencent is one-off in nature.

我們從騰訊收到的回饋是一次性的。

I would now say that it is not something we will not expect in the future, but that is based on case-by-case negotiation and is not something that we would expect to be seeing every quarter.

我現在想說，這不是我們未來不會期望的事情，而是基於具體情況的談判，而不是我們期望每季都會看到的事情。

Secondly, in terms of cost of revenues overall, our cost of revenues have increased over the last few quarters as we made investments in cloud services and other -- building out our team to -- in order to provide better services to the platform.

其次，就整體收入成本而言，我們的收入成本在過去幾季有所增加，因為我們對雲端服務和其他服務進行了投資（建立我們的團隊），以便為平台提供更好的服務。

One of the examples that we can point to is on the merchant support services such as Duo Duo University.

我們可以指出的例子之一是商家支援服務，例如多多大學。

So we are spending a lot of effort educating our merchants on how to better utilize our platform.

因此，我們花費了大量精力來教育我們的商家如何更好地利用我們的平台。

And at the moment, we are not charging anything for such services, and these are naturally built into our cost of goods sold, cost of revenues.

目前，我們不會對此類服務收取任何費用，這些服務自然會計入我們的銷售成本和收入成本。

These investments can be quite lumpy, as we mentioned in our earlier script, because we believe that they actually are necessary to support a longer-term growth of our platform.

正如我們在先前的腳本中提到的，這些投資可能相當不穩定，因為我們相信它們實際上是支持我們平台的長期成長所必需的。

As such, our gross margin may likely to fluctuate between 70% to 80% range depending on the timing of our investment.

因此，我們的毛利率可能會根據我們的投資時機在 70% 至 80% 之間波動。

I would also point out that the first quarter -- this quarter is lower -- our gross margin on an adjusted basis is lower because of the Chinese New Year impact.

我還想指出，由於農曆新年的影響，第一季（本季較低）調整後的毛利率較低。

You can think of it as having the investments against a lower revenue.

您可以將其視為針對較低收入進行投資。

So hopefully, that helps you.

希望這對您有所幫助。

We have our next question coming from the line of Ms. Monica Chen from Credit Suisse.

我們的下一個問題來自瑞士信貸銀行的 Monica Chen 女士。

Congratulations on the strong result.

恭喜您取得了優異的成績。

Can management just give us more color on your logistics, your e-waybill initiative?

管理階層能否為我們的物流、電子運單計畫提供更多資訊？

For example, what's like the so far feedback from the merchants?

例如，目前商家的回饋情況如何？

And how do we expect that to help us improve our logistics efficiency over time?

隨著時間的推移，我們如何期望這能幫助我們提高物流效率？

Okay.

好的。

So I will answer that first and David, you can add if you have something to add.

所以我先回答這個問題，大衛，如果你有什麼要補充的，你可以補充。

So I think we rolled out our e-waybill system in March 2019, and the merchants' adoption has been very, very rapid.

所以我認為我們在 2019 年 3 月推出了電子單系統，商家的採用速度非常非常快。

So although it's only like several months old since it's been -- since it's online, it's already the second largest in China and probably in the world as well.

因此，雖然它上線只有幾個月的時間，但它已經是中國第二大，也可能是世界第二大。

So we can do this -- or we have done this in this -- that concession.

所以我們可以這樣做——或者我們已經在這方面做了這樣的讓步。

It's because we do have the volume, first of all.

首先是因為我們確實有數量。

And secondly, the merchants and the delivery companies all welcomes another alternative.

其次，商家和快遞公司都歡迎另一種選擇。

Actually, this alternative, it is very important for the long-term healthy sustainability independence of delivery companies; and it's also very important for the merchants.

其實，這種選擇，對於快遞公司長期健康可持續的獨立性非常重要；這對商家來說也非常重要。

As for the users, without this e-waybill system, there are merchants who are trying to fake the mailing address or trying to fake the routes of the delivery or trying to fake the delivery time or something like that.

對使用者來說，如果沒有這個電子運單系統，就會有商家試圖偽造郵寄地址，或是試圖偽造外送路線，或是試圖偽造外送時間等等。

But with this e-waybill system in place, the detection of those kind of misconduct is much easier, and the entry and information flow is much clearer than before.

但有了電子運單系統，發現此類不當行為就變得更加容易，而且條目和資訊流也比以前更加清晰。

And it is also a tool against the [brushing].

而且它還是一個反【刷】的工具。

It will make much, much harder to fake orders so that they will no longer be able to sort of brushing out their orders and create fake orders so that they can ramp up higher.

這將使偽造訂單變得更加困難，這樣他們就無法再透過刷掉訂單並創建虛假訂單來提高銷售量。

So with all of that, I think the launching of the e-waybill system has been pretty successful.

綜上所述，我認為電子運單系統的推出非常成功。

The team has been working very hard, and the results have been satisfactory at this moment.

團隊一直在努力，目前的成績已經令人滿意。

Ladies and gentlemen, I would now like to hand the conference back to our speaker to end the call and for any ending remarks.

女士們、先生們，現在我想將會議交還給我們的發言人來結束通話並發表結束語。

Thank you for the call, everybody...

謝謝大家的來電...

Thank you, everybody.

謝謝大家。

And we look forward to the second quarter's earnings.

我們期待第二季的收益。

(inaudible)

（聽不清楚）

Thank you, sir.

謝謝您，先生。

Ladies and gentlemen, that concludes our conference for today.

女士們、先生們，今天的會議到此結束。

Thank you for your participation.

感謝您的參與。

You may all disconnect now.

你們現在可以斷開連結了。