拼多多 (PDD) 2019 Q2 法說會逐字稿

Ladies and gentlemen, thank you for standing by and welcome to Pinduoduo 2Q 2019 Earnings Conference Call. (Operator Instructions) Please be advised that today's conference is being recorded. I would like to hand the conference over to your first speaker today, Ms. [Sin Ye Lin], Director Investor Relations. Thank you, please go ahead.

女士們、先生們，感謝大家的耐心等待，歡迎參加拼多多2019年第二季業績電話會議。（操作員指示）請注意，今天的會議正在錄製中。我想將會議交給今天的第一位發言者，投資者關係總監 [Sin Ye Lin] 女士。謝謝，請繼續。

Thank you, Karina. Hello everyone and thank you for joining us today. Pinduoduo's earnings release was distributed earlier and is available on the IR website at investor.pinduoduo.com as well as through GlobeNewswire services. On the call today, from Pinduoduo are Mr. Zheng Huang, Chairman and Chief Executive Officer; and Mr. David Liu, Vice President of Strategy. Mr. Huang will review business operations and company highlights followed by Mr. Lu, who will discuss financials. They will both be available to answer your questions during the Q&A session that follows.

謝謝你，卡琳娜。大家好，感謝您今天加入我們。拼多多的財報已於早前發布，可透過投資者關係網站 Investor.pinduoduo.com 以及 GlobeNewswire 服務取得。今天參加電話會議的是拼多多董事長兼執行長鄭黃先生；劉大衛先生，策略副總裁。黃先生將回顧業務營運和公司亮點，隨後陸先生將討論財務狀況。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 Section -- the meaning of 21E of the U.S. Securities Exchange Act of 1934 as amended and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward looking statements can be identified by terminologies such as will, expect, anticipate and similar statements. 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.

在我們開始之前，我想提醒您，本次會議包含本節中所做的前瞻性陳述——經修訂的《1934 年美國證券交易法》第21E 條的含義以及《美國私人證券訴訟改革法》中的定義。這些前瞻性陳述可以透過意願、期望、預期和類似陳述等術語來識別。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表現或成就與前瞻性陳述中的結果有重大差異。

Further information regarding these and other risks, uncertainties or factors are included in the company's filings with the Securities and Exchange Commission. The company does not undertake any obligation to update any forward-looking statements as a result of new information, future events, or otherwise, except as required under applicable law. Now, it is my pleasure to introduce Chairman and Chief Executive Officer, Mr. Huang. Mr. Huang, please go ahead.

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。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。現在，我很高興向大家介紹董事長兼執行長黃先生。黃先生，請講。

Thanks everyone for attending our second quarter 2019 earnings call. The end of July marked our first anniversary as a publicly listed company. During this past year, Pinduoduo has become widely recognized as China's leading new e-commerce platform. We witnessed the strong growth in our annual active buyer base to 483 million and a significant increase in our last 12-months of GMV to RMB 709 billion.

感謝大家參加我們的 2019 年第二季財報電話會議。七月底是我們上市公司一週年紀念日。在過去的一年裡，拼多多已被公認為中國領先的新型電子商務平台。我們見證了年度活躍買家數量強勁增長至 4.83 億，過去 12 個月的 GMV 大幅增長至 7,090 億元。

Pinduoduo is not the first adventure for me, nor for some of our management team. We founded Pinduoduo because we saw an opportunity to create something that could generate a positive and a lasting impact on the society, something that would create value not just for us as an enterprise but also for the society as we devote ourselves to benefit all, put people first and be more open.

拼多多對我和我們的一些管理團隊來說並不是第一次冒險。我們創立拼多多是因為我們看到了一個機會，可以創造一些能夠對社會產生積極和持久影響的東西，這些東西不僅可以為我們作為企業創造價值，也可以為社會創造價值，因為我們致力於造福所有人，把以人為本，更加開放。

Looking at our scale today, what we have accomplished together with our ecosystem partners and our users, we are one step closer towards that vision. I am thankful for the continued support of our shareholders, our partners, our employees, and most importantly, our users in this journey. When we were listed a year ago and unfamiliar to most people, despite our consistent messaging, some competitors tried to frame us as a platform that would only attract price-sensitive users in lower-tier cities, and that our products are cheap because they were low quality or even knockoffs.

看看我們今天的規模，以及我們與生態系統合作夥伴和用戶共同取得的成就，我們離這個願景又更近了一步。我感謝我們的股東、合作夥伴、員工，最重要的是我們的用戶在過程中的持續支持。一年前，當我們上市時，大多數人對我們還很陌生，儘管我們一直在宣傳，但一些競爭對手試圖將我們塑造成一個只會吸引低線城市對價格敏感的用戶的平台，而且我們的產品之所以便宜，是因為它們品質低劣，甚至是仿冒品。

Today, our results have firmly demonstrated otherwise. In the past year, we have expanded our merchant base to over 3.6 million to serve our 483 million users with our broader product selections across all categories. If a user is looking for beauty products, for example, they would be able to find a full range of unbranded, branded, and imported goods on Pinduoduo. We appreciate that users' preference and the perception of value vary widely across different product categories and change as their life stages and the surrounding change.

今天，我們的結果明確證明了事實並非如此。去年，我們已將商家數量擴大到超過 360 萬，為 4.83 億用戶提供涵蓋所有類別的更廣泛的產品選擇。例如，如果用戶正在尋找美容產品，他們將能夠在拼多多上找到全系列的無品牌、品牌和進口商品。我們認識到，使用者的偏好和價值感知在不同的產品類別中存在很大差異，並隨著他們的生命階段和周圍環境的變化而變化。

Hence we have been working hard to serve the multiple aspects of our users' needs as they evolve. In other words, we adapt and improve every day as our users grow. As a result, we have seen an increase in user satisfaction, engagement, and a broader app penetration. Our GMV from Tier 1 and Tier 2 cities are a percentage of total GMV has gone from 37% in January this year to 48% in June. This meaningful change is the result of our relentless focus on serving our users, regardless of their location, age and gender.

因此，我們一直在努力滿足用戶不斷發展的多方面需求。換句話說，隨著用戶的成長，我們每天都會進行調整和改進。結果，我們看到用戶滿意度、參與度以及更廣泛的應用程式滲透率有所提高。我們來自一、二線城市的GMV佔總GMV的比例已從今年1月的37%上升到6月的48%。這項有意義的變化是我們堅持不懈地致力於為用戶提供服務的結果，無論他們的位置、年齡和性別如何。

It is what we mean by serving all and putting users first.

這就是我們所說的服務所有人、使用者至上。

Our 6.18 campaign is the perfect example. E-commerce shopping festivals in China have evolved over the years into complex promotional events that put consumers through a lot of hassle. However, what consumers really want is to buy what they have been coveting at compelling prices without having to incur additional costs or complete arduous tasks. As such, even though we're not a platform focusing on e-commerce shopping festivals, we did a successful trial this year during the 6.18 campaign by entering around our very simple and a consistent message, the price you see is the price you pay. We identified in advance 10,000 [deals] be they branded or unbranded. We then worked with our merchants to make possible the lowest prices. We had a dedicated team to ensure that users were getting the best deals over a wide range of products. So they wouldn't need to look any further.

我們的 6.18 活動就是一個完美的例子。多年來，中國的電子商務購物節已經發展成為複雜的促銷活動，給消費者帶來了許多麻煩。然而，消費者真正想要的是以令人信服的價格購買他們一直夢寐以求的東西，而不必承擔額外的成本或完成艱鉅的任務。因此，儘管我們不是一個專注於電商購物節的平台，但我們在今年6.18活動期間做了一次成功的嘗試，圍繞著我們非常簡單且一致的信息，你看到的價格就是你支付的價格。我們提前確定了 10,000 個[交易]，無論是品牌的還是非品牌的。然後我們與商家合作以實現最低價格。我們擁有一支專門的團隊來確保用戶在各種產品中獲得最優惠的價格。所以他們不需要再尋找了。

The result was a 300% year-over-year GMV increase for the 6.18 promotional period from June 1 to the June 18 with daily order volumes averaging over 16 million. We are pleased with this result and we will continue to delivering good and clear deals to our users consistently.

結果是，6.18促銷期間（6月1日至6月18日）GMV年增300%，日均訂單量超過1,600萬。我們對此結果感到滿意，我們將繼續始終如一地為用戶提供優質、明確的交易。

For merchants who are partnering with us during the 6.18 campaign, we're focused on ensuring they receive a fair amount of exposure for the savings they offer to our users. This demonstrates how we abide our own principle of benefiting all, which we stand firmly for. In the past, many merchants had participated in online shopping festivals but didn't always get a real benefit when they compared to certain brands with a preferential status. This clearly doesn't benefit all. Similarly, we don't and will never force anyone to take sides, or work exclusively with 1 platform over another. Such tactics may prolong the platform's marketing influence in a short term, but it will only hurt merchants and users in the long run.

對於在 6.18 活動期間與我們合作的商家，我們致力於確保他們因向我們的用戶提供的優惠而獲得相當多的曝光度。這顯示我們恪守普惠大眾的原則，也是我們堅定的立場。以往，不少商家曾參加過網購節，但與某些具有優惠地位的品牌相比，並不總是能獲得真正的實惠。這顯然並不能讓所有人受益。同樣，我們不會也永遠不會強迫任何人選邊站隊，或只與一個平台合作而不是另一個平台。此類策略短期內可能會延長平台的行銷影響力，但長期來看只會傷害商家和使用者。

Our aim is to build an open and transparent platform where merchants compete fairly to offer greater value and the services to our users on a sustainable basis. User satisfaction is our sole KPI, and we will work tirelessly with all our ecosystem partners to achieve this common goal.

我們的目標是建立一個開放、透明的平台，讓商家公平競爭，在可持續的基礎上為我們的用戶提供更大的價值和服務。用戶滿意度是我們唯一的KPI，我們將與所有生態系統合作夥伴不懈努力，以實現這一共同目標。

The benefits are shared with all participants and drive our virtuous cycle as we enable all our partners to deliver even more value to our users. How to create long-term sustainable value is a question we reflect upon constantly. Because of the scale of our user base, we're able to aggregate this amount and then dynamically recommend products that meet the user's need. This enables our merchants to optimize supply chains to yield the cost efficiency that would support sustainable, competitive pricing. More importantly, our traffic and data analytics capabilities provide visibility and insights into such demand, which we can share with merchants further to fundamentally improve their existing supply chain.

這些好處與所有參與者共享，並推動我們的良性循環，因為我們使所有合作夥伴能夠為我們的用戶提供更多價值。如何創造長期永續的價值是我們不斷思考的問題。由於我們的用戶群規模龐大，我們能夠匯總這一數量，然後動態推薦滿足用戶需求的產品。這使我們的商家能夠優化供應鏈，以提高成本效率，並支持可持續的、有競爭力的定價。更重要的是，我們的流量和數據分析能力提供了對此類需求的可見度和洞察力，我們可以進一步與商家分享，從根本上改善他們現有的供應鏈。

The value unlocked can be reallocated and drive further investments that would alleviate efficiency and improve income of our ecosystem partners. This is the fundamental thesis of our C2M and Duo Farms initiatives, which we have continued to make progress on.

釋放的價值可以重新分配並推動進一步的投資，從而降低效率並提高我們生態系統合作夥伴的收入。這是我們的 C2M 和 Duo Farms 計劃的基本主題，我們一直在這方面不斷取得進展。

For the merchants on our platform, the traffic and the revenue for our platform not just generates employment but also gives them the assurance to expand their business, build their brand and do more. To date, we have expanded in a number of manufacturers in our new brand initiatives from 20 to December -- at December 2018 to 63 and they cover industries ranging from large home appliances to glassware and kitchenware. We've had over 1,300 products custom-made for our platform culminating in over 17 million orders during this year's 6.18 campaign alone. We sold over 9 million items produced specially for Pinduoduo. At the same time, we continue to deepen our agriculture involvement with launch of the Phase II of Duo Duo Farms in [Baoshan,] Yunnan as the largest e-commerce platform for fresh agricultural produced. We're deeply committed to realize a win-win situation whereby farmers capture more of the economic benefits and the consumers get a better price to produce. We recently extended this initiative through our agreement with the Yunnan province to help a total of 74 impoverished counties.

對於我們平台上的商家來說，我們平台的流量和收入不僅可以創造就業機會，還可以為他們提供擴展業務、建立品牌和做更多事情的保證。迄今為止，我們已經在新品牌計劃中擴大了多家製造商的規模，從 20 到 12 月，到 2018 年 12 月，已擴大到 63 家，涵蓋從大型家電到玻璃器皿和廚具等行業。我們已經為我們的平台定制了 1,300 多種產品，僅在今年的 6.18 活動期間，訂單數量就超過了 1700 萬份。我們銷售了超過 900 萬件專為拼多多生產的商品。同時，我們持續深化農業涉足，推出雲南【保山】朵朵農場二期，成為最大的生鮮農產品電商平台。我們堅定地致力於雙贏，讓農民獲得更多的經濟效益，讓消費者獲得更好的生產價格。我們最近透過與雲南省的協議擴大了這項舉措，幫助了總共 74 個貧困縣。

Working together with the local authorities, we're pioneering a self-driven cooperative system and we are educating farmers on how to get better plan their planting cycles. How to efficiently modernize their production as well as how to market and price their produce.

我們與地方當局合作，開創了一個自我驅動的合作社系統，並教育農民如何更好地規劃他們的種植週期。如何有效地實現生產現代化以及如何對產品進行行銷和定價。

The next step in that journey will be getting these fresh produce to consumers in an even more reliable and timely manner. We often ask ourselves what else do users want beside value for money products. And how do we help the people who actually produce these products. One thing that keeps popping up is having cheaper, faster and a more reliable logistics and a supply chain network. The current system has already improved significantly over the past decade, thanks to the economic growth China has experienced. However, we believe technology building on what we have learned from all ecosystem participants on this platform could help further improve or even fundamentally change the structure of existing systems. This is not a small task. But doing so would significantly widen the range of products available to users, especially agricultural products and reduce logistics costs and the supply chain wastage. Hence, we have started developing an open technology platform that can be a driving force for the logistics model of tomorrow or what we would like to call new logistics.

這趟旅程的下一步將以更可靠、更及時的方式將這些新鮮農產品提供給消費者。我們經常問自己，除了物有所值的產品之外，使用者還想要什麼。我們如何幫助實際生產這些產品的人。不斷出現的一件事是擁有更便宜、更快、更可靠的物流和供應鏈網路。由於中國經濟的成長，過去十年來，現行製度已顯著改善。然而，我們相信，基於我們從該平台上所有生態系統參與者學到的技術，可以幫助進一步改進甚至從根本上改變現有系統的結構。這不是一個小任務。但這樣做將顯著擴大用戶可獲得的產品範圍，特別是農產品，並減少物流成本和供應鏈浪費。因此，我們開始開發一個開放的技術平台，它可以成為未來物流模式或我們所謂的新物流的驅動力。

This asset slide model will be an open platform focused on leveraging technology to provide solutions to our sizable and growing merchants based to serve users. We welcome all to participate. The first pillar to our platform was the e-waybill system that we launched at the beginning of the year. The rapid adoption of our ecosystem partners, including all the major 3PL providers, coupled with positive user feedback has propelled our e-waybill system to become the second largest in China within a few months. To date, almost all of our orders have adopted our e-waybill system. This is a result of us keeping enhancing our logistics platform by constantly introducing new features to satisfy users' needs, such as parcel intercept, delivery error warning, and the service provider recommendation. Our merchants have the freedom to choose -- freedom to use ours or others' systems. We thrive to offer the best product to them. Building on top of the e-waybill, we are systematically rolling out other value-added services that form the foundation of our future logistics technology platform. While increased economies of scale drove the improvements in industry efficiency previously, it is also beginning to reach its natural limitations. New technologies, such as AI-driven route planning, IoT sensors and the devices, automated warehousing, sorting and routing, to name a few, will become the basis of the next-generation logistics services as we deepen our relationships with merchants, to C2M, cross-border e-commerce and other initiatives where we will be well-positioned to work together with all parties in all areas extending from supply chain to production to warehousing and to the deliveries. Only through greater vertical integration and partnership will we be able to fundamentally change the allocation of economic value in the industry. And we are committed to doing so such that greater value can be shared with our users and value creators across the value chain. As an example, we have been spearheading some investments to drive innovation in agricultural logistics. Our scale enables us to work with farmers to standardize fruit sizes and optimize packaging designs. We're also working with ecosystem partners to evaluate having a dedicated e-waybill for agricultural produce and separate logistics from ordinary parcels to optimize efficiency and the quantity.

這個資產幻燈片模型將是一個開放平台，專注於利用科技為我們規模龐大且不斷成長的商家提供解決方案，以服務使用者為基礎。我們歡迎大家參與。我們平台的第一個支柱是我們在今年年初推出的電子運單系統。我們的生態系統合作夥伴（包括所有主要 3PL 供應商）的快速採用，加上積極的用戶回饋，推動我們的電子運單系統在幾個月內成為中國第二大系統。到目前為止，我們幾乎所有的訂單都採用了我們的電子運單系統。這是我們不斷增強物流平台的結果，不斷推出新功能來滿足用戶的需求，例如包裹攔截、投遞錯誤警告、服務提供者推薦等。我們的商家有選擇的自由－自由使用我們的或其他人的系統。我們致力於為他們提供最好的產品。在電子運單的基礎上，我們正​​在有系統地推出其他加值服務，這些服務構成了我們未來物流技術平台的基礎。雖然規模經濟的成長推動了產業效率的提高，但它也開始達到其自然限制。隨著我們與商家的關係不斷加深，從C2M到C2M，人工智慧驅動的路線規劃、物聯網感測器和設備、自動化倉儲、分類和路線等新技術將成為下一代物流服務的基礎、跨境電商等舉措，我們將有能力與各方在供應鏈、生產、倉儲、配送等各個領域合作。只有透過更大程度的縱向整合和合作，我們才能從根本上改變產業經濟價值的配置。我們致力於這樣做，以便與整個價值鏈上的使用者和價值創造者分享更大的價值。例如，我們一直在帶頭進行一些投資，以推動農業物流的創新。我們的規模使我們能夠與農民合作標準化水果尺寸並優化包裝設計。我們也與生態系統合作夥伴合作，評估是否有專門的農產品電子運單，並將物流與一般包裹分開，以優化效率和數量。

Our predictive modeling technology can help power and route planning behind the agricultural produce network. We're confident that such optimization can be achieved because of the unique technology background of our team.

我們的預測建模技術可以幫助農產品網路背後的電力和路線規劃。由於我們團隊獨特的技術背景，我們有信心能夠實現這樣的最佳化。

Our founding principle of being open and -- to all parties. And the large and growing amount of the demand on our platform from our diverse user base. We believe that one can only succeed by constantly innovating and being more open. As we look forward to the second half of the year, we remain confident that our strategy of focusing on our users and benefiting all will continue to generate strong results and it will continue to invest in technology and capabilities that would enhance our users' experience. With that, I will now hand over the time to David.

我們的基本原則是對各方開放。我們多元化的用戶群對我們平台的需求量龐大且不斷成長。我們相信，只有不斷創新和更開放才能成功。展望下半年，我們仍然相信，以用戶為中心、惠及所有人的策略將繼續產生強勁成果，並將繼續投資於技術和能力，以增強用戶體驗。現在，我將把時間交給大衛。

And thank you, Colin, and hello, everyone. The second quarter of 2019 was a strong quarter for us as we continued to execute on our strategic priorities to serve our users.

謝謝你，科林，大家好。2019 年第二季度對我們來說是一個強勁的季度，因為我們繼續執行為用戶服務的策略重點。

Our last 12-months' GMV grew 171% over the same period last year to reach RMB 709.1 billion. During this 6.18 campaign period, from June 1 to June 18, our GMV grew more than 300% year-on-year with over 1.1 billion orders. Total revenues for the quarter grew 169% year-over-year to RMB 7.3 billion, up significantly from RMB 2.7 billion a year ago.

過去 12 個月的 GMV 比去年同期成長 171%，達到 7,091 億元。6.18期間，從6月1日到6月18日，我們的GMV年增超過300%，訂單量超過11億。該季度總營收年增 169%，達到 73 億元人民幣，較去年同期的 27 億元大幅成長。

Our strong revenue growth was driven primarily by the rapid growth in our GMV coupled with our steadily improving monetization rate, which is a reflection of the value we have created for our users and our merchants. Our last 12-month monetization rate for this past quarter was 2.9%. Online Marketing and Services revenue was RMB 6.5 billion this quarter, constituting 89% of our total revenues.

我們強勁的營收成長主要得益於 GMV 的快速成長以及貨幣化率的穩定提高，這反映了我們為用戶和商家創造的價值。上個季度的最後 12 個月貨幣化率為 2.9%。本季網路行銷和服務收入為人民幣 65 億元，占我們總收入的 89%。

This is up 173% from RMB 2.4 billion for the same period last year.

這比去年同期的24億元成長了173%。

Our last 12-month online marketing services revenue increased for the seventh consecutive quarter in a row to reach 2.6% of our total GMV. This sustained growth reflects the continuous expansion of our platform and our services. As more buyers visit our platform more frequently, spend more time browsing through our product suites, and purchase with greater trust, the advertising ROIs for our merchants on platform also improve. This encourages our merchants to leverage our advertising products more actively in order to ramp up their exposure to targeted users and drive more sales.

我們過去 12 個月的線上行銷服務收入連續第七個季度成長，達到總 GMV 的 2.6%。這種持續成長反映了我們平台和服務的不斷擴展。隨著越來越多的買家更頻繁地造訪我們的平台，花更多的時間瀏覽我們的產品套件，並更信任地購買，我們平台上商家的廣告投資報酬率也會提高。這鼓勵我們的商家更積極地利用我們的廣告產品，以增加對目標用戶的曝光並推動更多銷售。

In the meantime, we also continue to enhance the advertising and selling tools available to our merchants. For instance, this quarter, we introduced a feature that automatically scans all active product listings to see if they are optimized for display and discovery on our platform. Merchants can now quickly identify inefficient listings and easily follow our system's prompts to fix these issues. This helps merchants to reduce ineffective marketing spend and achieve better ROIs, which in turn drives greater investments by them on our platform. Many of our merchants are still in the process of building out their presence and accumulating sales on our platform, and they're still familiarizing themselves with our platform's rules. It is therefore critical to have more comprehensive tools and to educate our merchants about these tools. We anticipate more participation of our active merchants on our platform.

同時，我們也持續增強商家可用的廣告和銷售工具。例如，本季度，我們推出了一項功能，可以自動掃描所有活動產品列表，以查看它們是否針對我們平台上的顯示和發現進行了最佳化。商家現在可以快速識別效率低下的列表，並輕鬆按照我們系統的提示解決這些問題。這有助於商家減少無效的行銷支出並實現更好的投資報酬率，從而推動他們在我們的平台上進行更多投資。我們的許多商家仍在我們平台上建立自己的影響力並累積銷售額，他們仍在熟悉我們平台的規則。因此，擁有更全面的工具並對我們的商家進行這些工具的教育至關重要。我們預計活躍商家會更多地參與我們的平台。

Let me give you an example of a merchant who has built on his initial success on our platform with better use of our advertising tools. This is a women's wear merchant, who has been on our platform for over 2 years. They have their own factories and 30% of their sales are online, of which Pinduoduo constitutes 70%. On Pinduoduo they decided to focus on higher ticket price, higher-quality women's wear, and their hit product is a trench coat, which they launched in late 2018. The coat is priced 50% higher than that of their competitors but still offers great value given superior materials. Despite the higher price, they sold over 40,000 units with the help of targeted advertising. They spent initially on keyword bidding to grow out sales volume and through a continuous optimization of their keywords, creative and listing details improved their conversion rate to double that of their peers. After building up their sales for a few months, they then added feed advertising on top of keyword bidding. In their peak sales months, they have ramped their combined monthly spend to 3x of the prior month as they incrementally targeted users who had browsed competing products. That way, not only the users who have searched for trench coats see their products, they would also be retargeted and re-exposed through the fee ads to different portions of the app as they continued to browse. In the first quarter, the marketing spend helped them generate an incremental 10,000 units sold on top of the organic traffic and the merchants realized a net ROI around 10x. This is just one example of a successful merchant, who on our platform -- gives some perspectives on the drivers of our online marketing service revenue.

讓我給您一個例子，一位商家透過更好地利用我們的廣告工具，在我們的平台上取得了初步成功。這是一位女裝商家，入駐我們平台已經2年多了。他們有自己的工廠，30%的銷售額來自線上，其中拼多多佔70%。在拼多多，他們決定專注於更高票價、更高品質的女裝，他們的熱門產品是風衣，他們在2018年底推出了這款風衣。這款外套的價格比競爭對手高出 50%，但由於採用優質材料，仍具有很高的價值。儘管價格較高，但在定向廣告的幫助下，他們還是售出了 40,000 多件。他們最初花費在關鍵字競價上以增加銷量，並透過不斷優化關鍵字、創意和清單細節，將轉換率提高到同行的兩倍。經過幾個月的銷售累積後，他們在關鍵字競價的基礎上添加了資訊流廣告。在銷售高峰月份，他們將每月的總支出增加到上個月的 3 倍，因為他們逐漸瞄準瀏覽過競爭產品的用戶。這樣，搜尋風衣的用戶不僅會看到他們的產品，而且在他們繼續瀏覽時，他們還會透過收費廣告被重新定位和重新展示到應用程式的不同部分。第一季度，行銷支出幫助他們在自然流量的基礎上增加了 10,000 件銷量，商家實現了約 10 倍的淨投資回報率。這只是一個成功商家的例子，他在我們的平台上對我們網路行銷服務收入的驅動因素給出了一些看法。

Rounding our discussion on revenue, the remainder of our revenues come from transaction services. Our transaction services revenue for the quarter grew by 143% year-over-year from RMB 338.1 million last year to RMB 822.9 million. Our transaction services revenue as a percentage of our GMV fluctuates from quarter-to-quarter, primarily as a result of our tactical adjustment to incentivize merchants and partners to provide superior services to our users. We continue to build out other value-added services such as logistics and merchant advisory to help our merchants grow their business more rapidly on our platform and realize better returns.

圍繞我們對收入的討論，我們的其餘收入來自交易服務。本季我們的交易服務收入年增 143%，從去年的 3.381 億元增至 8.229 億元。我們的交易服務收入佔 GMV 的百分比逐季波動，主要是由於我們為激勵商家和合作夥伴為用戶提供優質服務而進行的戰術調整。我們持續打造物流和商家諮詢等其他加值服務，幫助我們的商家在我們的平台上更快地發展業務並實現更好的回報。

Moving onto cost. Our total cost of revenues increased from RMB 387.8 million in the same period last year to RMB 1.6 billion this quarter.

轉向成本。我們的總收入成本從去年同期的3.878億元增加到本季的人民幣16億元。

This translates to a gross margin of 78% this quarter as compared to 86% a year ago. The lower gross margin this quarter as compared to the prior year reflects our investment in network infrastructure, the merchant support services to support our rapidly growing operations.

這意味著本季的毛利率為 78%，而去年同期為 86%。本季毛利率低於上年，反映了我們對網路基礎設施和商家支援服務的投資，以支持我們快速成長的業務。

Total operating expenses this quarter were RMB 7.2 billion as compared to RMB 9 billion in the same period last year. Our sales and marketing expenses this quarter increased from -- increased to RMB 6.1 billion as we made a large marketing push towards the second half of the quarter with promotional activities leading up to and throughout our 6.18 campaign. Over the course of June 1 to June 18, we saw our GMV grow over 300% year-over-year as we generated a huge amount of interest and engagement from new and existing users alike. We received over 1.1 billion orders during this campaign, which translates to over 60 million orders daily. In just the first week of our campaign, we saw over 12 million buyers place at least 5 orders each indicating a high level of repeat visits. Over the course of our quarter, we also saw higher average order values and growing purchase frequency, which combine to drive our annual spending per active buyer to RMB 1,468 representing a 92% increase from RMB 763 for the June 2018 quarter.

本季總營運費用為 72 億元，去年同期為 90 億元。我們本季的銷售和行銷費用從 -- 增加到人民幣 61 億元，因為我們在 6.18 活動之前和整個過程中開展了促銷活動，在本季度下半年進行了大規模的營銷推廣。在 6 月 1 日至 6 月 18 日期間，我們的 GMV 年成長超過 300%，因為我們引起了新用戶和現有用戶的巨大興趣和參與。在此活動期間，我們收到了超過 11 億份訂單，相當於每天超過 6,000 萬份訂單。僅在我們活動的第一周，我們就看到超過 1200 萬買家下了至少 5 個訂單，每個訂單都表明重複訪問量很高。在本季度，我們還看到平均訂單價值提高和購買頻率不斷增長，這使得我們每個活躍買家的年度支出達到 1,468 元人民幣，比 2018 年 6 月季度的 763 元人民幣增長 92%。

Sales and marketing expenses as a percentage of revenue this quarter came in at 81% on a non-GAAP basis against meaningful GMV growth and revenue uplift. We continue to be very focused and targeting in our marketing strategy. As we shared previously, when we strictly, and on a real-time basis, evaluate the ROI of our sales and marketing investments. We go beyond financial metrics to include the changes in engagement that these investments bring about. For example, has the users gone from being active annually to being active monthly or even daily. In that journey has the user been sharing more with their friends and family or inviting new users to the platform? User engagement influences user trust, user spending, merchant ROI, merchant spending, and more importantly, our entire platform's user satisfaction level.

以非公認會計準則計算，本季銷售和行銷費用佔收入的百分比為 81%，而 GMV 成長和收入大幅成長。我們的行銷策略仍然非常專注和有針對性。正如我們之前分享的，當我們嚴格、即時地評估我們的銷售和行銷投資的投資回報率時。我們超越了財務指標，也包括這些投資所帶來的參與度變化。例如，用戶是否從每年活躍變為每月甚至每天活躍。在這個過程中，用戶是否與朋友和家人分享了更多內容或邀請新用戶加入平台？用戶參與度影響用戶信任、用戶支出、商家投資報酬率、商家支出，更重要的是我們整個平台的用戶滿意度。

We believe that our strong results this quarter demonstrate the meaningful underlying leverage of our business model and the initial benefits from the investments that we have made in the past. We continue to see significant value and potentially enhancing our user engagement, and we'll remain disciplined and optimistic with our sales and marketing investments. We will only invest when ROI requirements can be met and if the investments accrue to the intrinsic value of the company.

我們相信，本季的強勁業績證明了我們業務模式的有意義的潛在槓桿作用以及我們過去投資的初步效益。我們繼續看到巨大的價值並有可能提高我們的用戶參與度，並且我們將繼續嚴格和樂觀地對待我們的銷售和行銷投資。只有在能夠滿足投資報酬率要求並且投資能夠增加公司的內在價值時，我們才會進行投資。

Our general and administrative expenses this quarter were RMB 278.3 million, a significant decrease from last year due to lower share base compensation expenses. On a non-GAAP basis, our G&A expenses as a percentage of our revenue was 1%.

本季我們的一般及管理費用為 2.783 億元，由於股權激勵費用減少，較去年大幅下降。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 803.7 million this quarter, a significant increase from last year as we invest in hiring more experienced algorithm engineers and spent more on R&D-related cloud services. On a non-GAAP basis, our R&D expenses as a percentage of our revenue was 8%. We are on track with our plan to add at least 2,000 engineers this year, and we'll continue to invest in our distributed AI infrastructure.

本季我們的研發費用為人民幣 8.037 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。以非公認會計準則計算，我們的研發費用佔收入的百分比為 8%。我們正在按計劃實施今年至少增加 2,000 名工程師的計劃，並且我們將繼續投資分散式 AI 基礎設施。

Operating loss this quarter came to RMB 1.5 billion compared with loss of RMB 6.6 billion in the same period last year. Non-GAAP operating loss was RMB 898.4 million compared with a loss of RMB 815.7 million in the same period last year.

本季經營虧損為人民幣15億元，去年同期為虧損人民幣66億元。非公認會計原則營業虧損為人民幣8.984億元，去年同期為虧損人民幣8.157億元。

Net loss attributable to ordinary shareholders was RMB 1 billion compared with net loss of RMB 6.5 billion in the same quarter last year. Basic and diluted net loss per ADS were RMB 0.88 compared to net loss per ADS of RMB 13.4 during the same period of last year.

歸屬於普通股股東的淨虧損為人民幣10億元，去年同期淨虧損為人民幣65億元。每份美國存託憑證的基本和稀釋淨虧損為人民幣 0.88 元，而去年同期每份美國存託憑證的淨虧損為人民幣 13.4 元。

Non-GAAP net loss attributable to ordinary shareholders were RMB 411.3 million compared with net loss of RMB 673.4 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 4.113 億元，去年同期淨虧損為 6.734 億元。

Non-GAAP basic and diluted net loss per ADS were

非 GAAP 每股美國存託股份基本及攤薄淨虧損為

RMB 0.36 compared with RMB 1.4 for the same quarter of 2018. That completes the profit and loss statements for the second quarter.

人民幣0.36元，而2018年同季人民幣1.4元。第二季的損益表就這樣完成了。

Net cash flow provided by operating activities for the second quarter was RMB 4.1 billion compared with RMB 1.1 billion in the same quarter last year, primarily due to an increase in our online marketing services revenues.

第二季經營活動產生的現金流量淨額為人民幣41億元，而去年同期為人民幣11億元，主要是因為我們的網路行銷服務收入增加。

As of June 30, 2019, the company had a strong balance sheet with RMB 40.7 billion in cash, cash equivalent and restricted cash. Excluding restricted cash, we had RMB 23.9 billion in cash and cash equivalents. In addition, we had RMB 7.9 billion in short-term investments bringing our total cash available to RMB 31.8 billion.

截至2019年6月30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407億元。扣除限制性現金後，我們擁有現金及現金等價物人民幣239億元。此外，我們還有79億元人民幣的短期投資，使我們可用的現金總額達到318億元。

As such, we are in a good position to make the necessary investment this year to build our platform and strengthen our competitive advantage. We still see a lot of room to innovate and deliver more value to our users and merchants, and we will invest prudently to further our strategy. This concludes our prepared remarks. Operator, we are now ready for questions.

因此，我們今年有能力進行必要的投資來建立我們的平台並增強我們的競爭優勢。我們仍然看到很大的創新空間，為我們的用戶和商家提供更多價值，我們將謹慎投資以進一步推進我們的策略。我們準備好的演講到此結束。接線員，我們現在準備好提問了。

(Operator Instructions) Your first question comes from the line of Piyush Mubayi from Goldman Sachs.

（操作員說明）您的第一個問題來自高盛的 Piyush Mubayi。

I'll limit it to one, but it's a big question. When I look at competition, I look at your market share, you captured more than 31% of the GMV growth in China for the second quarter. And that's up from 21%, 25%, 19% in the last couple of quarters. At that run rate, by the time we get to the end of the year, your market share will be fairly significant. I wondered if you could comment on the competitive landscape currently at the end of the year. How this is likely to change? And what are the challenges you think you will face in the coming quarters?

我將其限制為一個，但這是一個大問題。當我看競爭時，我會看你們的市場份額，你們在第二季的 GMV 成長中佔據了超過 31% 的份額。這比過去幾季的 21%、25%、19% 有所上升。以這個速度，到年底時，你們的市佔率將相當可觀。不知您能否對目前年底的競爭格局發表評論。這可能會如何改變？您認為未來幾季將面臨哪些挑戰？

Okay, a lot of people ask me about competition. E-commerce in China is indeed a very competitive landscape, but I wanted to reiterate here that we are more focused on our operations and how we preserve our users, rather than look at what others are doing. With that said, competition has always been here. We have always operated in a very, very competitive industry, and we have managed to grow to our current scale despite these competitions. Actually, we should be thankful to these competitions since they help us to learn faster and innovate faster to serve our users. To some degree, the results of last quarter is somewhat a result of the competition. One example is the 6.18 campaign, which shows that we are on the right path.

好吧，很多人問我關於競爭的問題。中國的電子商務確實是一個競爭非常激烈的領域，但我想在這裡重申一下，我們更專注於我們的營運以及如何保留我們的用戶，而不是看別人在做什麼。話雖如此，競爭始終存在。我們一直在一個競爭非常非常激烈的行業中運營，儘管存在這些競爭，我們還是成功地發展到了目前的規模。其實我們應該感謝這些比賽，因為它們幫助我們更快學習、更快地創新來服務我們的用戶。從某種程度上來說，上季的成績多少是競爭的結果。6.18活動就是一個例子，它顯示我們走在正確的道路上。

We saw good results this year because we are laser focused on our users instead of our competitors.

今年我們取得了良好的成果，因為我們專注於我們的用戶而不是我們的競爭對手。

Speaking of the specific competition techniques. On the merchant side, there indeed has been very intense competition, some of which are against the recent e-commerce law. And forces merchants to pick sides and work exclusively with 1 platform. This actually goes against our principles to provide an open platform and a fair platform to all the merchants. Recently, actually, we noticed that the General Office of the State Council released the guidelines for regulating and nurturing the sustainable development of the e-commerce industry to boost economic growth. It reiterated the importance of fair market competition and a product quality control for consumer perception. So the state administration for market regulation has been tasked to implement these guidelines.

說到具體的比賽技巧。在商家方面，確實存在著非常激烈的競爭，其中一些競爭是違反最近的電子商務法的。並迫使商家選邊站並只與 1 個平台合作。這其實違背了我們為所有商家提供開放平台、公平平台的原則。其實最近我們注意到，國務院辦公室發布了《關於規範和培育電子商務產業可持續發展促進經濟成長的指導意見》。它重申了公平市場競爭和產品品質控制對消費者認知的重要性。因此，國家市場監理總局已責成落實這些指導意見。

So maybe there is some short impact by the forced exclusivity, but it doesn't seem to be sustainable, and so far, it looks like -- to some degree, it stimulates innovation within our own team and help us iterate much much faster than before. And if we look at this problem as a long-term question, then it is very clear that forced exclusivity is against the fundamental interest of the brand owners and all the users. So with that, I don't think it can last that long. So if we look even longer term, so we should notice, today, the e-commerce market in China is still not a zero-sum game yet. I would say it is still sort of the early to middle kind of stage faced with a growing -- RMB 30 trillion market plus a retail sales opportunity. This industry should focus resources and energy on innovation, instead of looking at what others are doing, trying to take others' pie or something like that. So if we look at China's total retail and I would say e-commerce will still take more and more market share, or a bigger pie of the overall retail. So with that, this huge growing e-commerce market, all the players, I think, will still have a large room to grow, despite the severe competition in between.

因此，強制排他性可能會產生一些短暫的影響，但它似乎不可持續，到目前為止，它看起來在某種程度上刺激了我們自己團隊內部的創新，並幫助我們迭代得比其他公司快得多。如果我們把這個問題當作長期問題來看待，那麼很明顯，強制排他性違背了品牌所有者和所有用戶的根本利益。因此，我認為它不會持續那麼久。因此，如果我們把目光放得更長遠，我們應該注意到，今天中國的電子商務市場仍然不是零和遊戲。我想說，這仍然是早期到中期的階段，面臨著不斷增長的 30 兆元的市場加上零售銷售機會。這個產業應該把資源和精力集中在創新上，而不是看別人在做什麼，試圖搶別人的蛋糕之類的。因此，如果我們看看中國的零售總額，我會說電子商務仍然會佔據越來越多的市場份額，或者說在整個零售業中所佔的份額會更大。因此，在這個巨大的不斷增長的電子商務市場中，我認為所有參與者仍然會有很大的成長空間，儘管之間存在激烈的競爭。

So does that answer your question?

那麼這回答了你的問題嗎？

Your next question comes from the line of Thomas Chong from Jefferies.

您的下一個問題來自 Jefferies 的 Thomas Chong。

Congratulations on a strong set of results. I have a question relating to sales and marketing expenses. I noticed that the sales and marketing expenses, RMB 6.1 billion for this quarter, which is slightly higher than the Street expectations. But what we see is that as a percentage of revenue, it came in better than expected because of better monetization. So my question is about the trend, where is the delta coming from compared with Street expectations? And how should we think about sales and marketing expenses as we go into the second half?

祝賀取得了一系列強勁的成果。我有一個有關銷售和行銷費用的問題。我注意到本季的銷售和行銷費用為人民幣61億元，略高於華爾街的預期。但我們看到的是，由於貨幣化程度提高，其佔收入的百分比比預期好。所以我的問題是關於趨勢的，與華爾街預期相比，增量來自哪裡？進入下半年，我們該如何考慮銷售和行銷費用？

Thank you, Thomas. We understand sales and marketing spend is a focus of our investors, and we would like to again reiterate that our strategic focus in terms of what we want to achieve with our sales and marketing investment has not changed. That is to say that we seek an enhanced user recognition of our platform, increase user engagement, and build users' trust. Because we believe this will translate into growth of both our GMV and revenue, and ultimately, margins and accrue to our long-term intrinsic value. As such, sales and marketing leverage as demonstrated by our second quarter result is really an output. The RMB 6.1 billion you see, this is not a target variable that we optimize for. We also do not manage towards a fixed budget in terms of dollar or ratio. This is because blindly adhering to such targets, we believe may result in us missing out on good investment opportunities in today's dynamic environment. So going forward, we'll continue to make investments in sales and marketing as long as our ROI requirements are met. We see our results in the second quarter as a good indication of our strategy being on the right path. However, we are not in a position to comment whether our sales and marketing numbers will increase or decrease. And we hope that investors appreciate our discipline and strength to always act quickly on marketing opportunities. Next question?

謝謝你，托馬斯。我們了解銷售和行銷支出是投資者關注的焦點，我們想再次重申，我們希望透過銷售和行銷投資實現的目標的策略重點沒有改變。也就是說，我們尋求增強用戶對我們平台的認可，增加用戶參與度，建立用戶信任。因為我們相信這將轉化為我們的 GMV 和收入的成長，並最終轉化為利潤並增加我們的長期內在價值。因此，我們第二季業績所證明的銷售和行銷槓桿實際上是一種產出。你看到的61億人民幣，這不是我們優化的目標變數。我們也沒有以美元或比率來管理固定預算。這是因為，我們認為，盲目堅持這些目標可能會導致我們在當今動態的環境中錯失良好的投資機會。因此，展望未來，只要滿足我們的投資報酬率要求，我們將繼續在銷售和行銷方面進行投資。我們認為第二季的業績很好地表明我們的策略走在正確的道路上。然而，我們無法評論我們的銷售和行銷數字是否會增加或減少。我們希望投資者欣賞我們的紀律和力量，並始終對行銷機會迅速採取行動。下一個問題？

Yes. Your next question comes from the line of Alicia Yap from Citigroup.

是的。您的下一個問題來自花旗集團的 Alicia Yap。

Congrats on the solid quarter. My question is related to your new user growth. Given this 483 million active buyers, this quarter is very solid. Just wanted to get a sense among ordered user acquisition strategy that you engage in the past, which one does stand out as the most effective in acquiring the new user? And then given the step-up effort by some of your peers to aggressively penetrate into the lower-tier cities, are you seeing any change in the cost of a new user acquisition? Any change in the user retentions? And even if we look into longer term, say, let's say, PDD able to achieve the similar size of the user base of our largest peer, how do you see the user on your platform versus the competition? How -- what are the attractiveness on PDD platform that could continue to attract and retain the user to shop on PDD?

恭喜季度業績穩定。我的問題與你們的新用戶成長有關。考慮到 4.83 億活躍買家，本季的表現非常穩健。只是想了解您過去採用的有序用戶獲取策略中，哪一種在獲取新用戶方面最有效？鑑於一些同行加強積極滲透到低線城市，您是否看到新用戶獲取成本有任何變化？用戶留存率有什麼變化嗎？即使我們從長遠來看，比方說，拼多多能夠達到與我們最大的同行相似的用戶群規模，與競爭對手相比，您如何看待您平台上的用戶？如何－拼多多平台有哪些吸引力可以持續吸引並留住用戶在拼多多上購物？

Thank you for your question. I understand that you're curious about which technique might be the most effective or most useful, but I'm sorry to say that this is the result of a consistent strategy. Really it's not a secret, but to be honest, it is -- there is no secret there. It's just that we keep doing the same thing and we keep laser focused on our users. So the user acquisition is a result of the user satisfaction level. Sometimes the number will be higher, sometimes the number will be lower, but if you forget about quarter-by-quarter numbers instead you look a little bit longer you look at the year or several years, then you will gradually sort of believe in a simple philosophy, which is if you do the right thing continuously and consistently then you will see the power of compounding. So this quarter to us, it's just a normal quarter. There's really nothing dramatic has been happening, but the beauty of our model is that it's simple and it's -- there is no magic there.

謝謝你的提問。我理解您想知道哪種技術可能是最有效或最有用的，但我很遺憾地說，這是一致策略的結果。確實，這不是什麼秘密，但說實話，它是——那裡沒有秘密。只是我們一直在做同樣的事情，並且始終專注於我們的用戶。所以用戶獲取是用戶滿意度的結果。有時這個數字會更高，有時這個數字會更低，但是如果你忘記了逐季度的數字，而是把目光放得更久一點，著眼於一年或幾年，那麼你就會逐漸相信一個數字。所以這個季度對我們來說只是一個正常的季度。實際上並沒有發生什麼戲劇性的事情，但我們的模型的美妙之處在於它很簡單，而且沒有什麼神奇之處。

Hey, Alicia, just to add on top of Colin's comments. I would say that on a longer -- if you look at our results, it is really a reflection of us continuing to focus on what users need and want and being able to deliver on that value. So as a result, you can see that almost half of our GMV in June, well -- almost half of our GMV in June actually came from Tier 1 and Tier 2 cities. This shows that our investment in building our brand recognition are paying off. And we also continued through user ads in the lower-tier cities as well. So as we have mentioned or communicated in the past, Pinduoduo is really designed to be a full-grown e-commerce platform to serve the entire population of China, and we are really seeing ads -- user ads being across the board. We would further highlight that because of our better understanding of users' preference and how they interact and influence the network, this actually has helped us refine the relevancy of recommendations. And we now have -- and because we now have a wider array of products, tacked with more characteristics for us to utilize and down from our nuanced recommendations, we have seen this make reflected in increasing our AOV now to over RMB 50.

嘿，艾莉西亞，我想補充柯林的評論。我想說的是，從長遠來看，如果你看看我們的結果，這確實反映了我們繼續關注用戶的需求和願望，並能夠實現這一價值。因此，你可以看到我們 6 月 GMV 的幾乎一半，嗯，我們 6 月 GMV 的幾乎一半實際上來自 1 號和 2 號城市。這表明我們在建立品牌知名度方面的投資正在獲得回報。我們也繼續在低線城市投放用戶廣告。因此，正如我們過去提到或交流的那樣，拼多多確實被設計為一個成熟的電子商務平台，為整個中國人口提供服務，我們確實看到了廣告——全面的用戶廣告。我們要進一步強調的是，由於我們更了解用戶的偏好以及他們如何互動和影響網絡，這實際上幫助我們完善了建議的相關性。我們現在擁有了——因為我們現在擁有更廣泛的產品，具有更多的特性供我們使用，並且從我們細緻入微的建議中減少了，我們已經看到這一點反映在我們的AOV 現在增加到50元以上。

Your next question comes from the line of Natalie Wu from CICC.

您的下一個問題來自中金公司的Natalie Wu。

Congratulations on a very robust result. My question is regarding the JD's upgrade, which had Level 1 entry starting from this October, which is going to be more targeted to the lower-tier city users with value-for-money goods. So just wondering should we worry about any potential impact on us? I would appreciate it if management can give us some color on that.

祝賀您取得了非常強勁的結果。我的問題是關於京東的升級，從今年10月份開始，京東升級為一級入口，將更加針對低線城市用戶，提供物超所值的商品。所以只是想知道我們是否應該擔心對我們有任何潛在影響？如果管理階層能給我們一些關於這一點的信息，我將不勝感激。

Well, in general, we don't comment on others' strategy or others' activities. But I can say a little bit. I think the slot is already there and they have been doing this for quite a while, and in parallel, I think we're just doing our own thing. And this strategy has been stayed the same, and we have always been focusing on our own users instead of worrying about what others are doing and looks like our simple-minded strategy does reward us in the past. So we will just stay with what we are. Next question?

嗯，一般來說，我們不會評論他人的策略或他人的活動。但我可以說一點。我認為這個機會已經存在，他們已經這樣做了很長一段時間，同時，我認為我們只是在做我們自己的事情。這個策略一直保持不變，我們一直專注於自己的用戶，而不是擔心別人在做什麼，看起來我們簡單的策略在過去確實給了我們回報。所以我們只會維持現狀。下一個問題？

Yes. Your next question comes from the line of Binnie Wong from HSBC.

是的。您的下一個問題來自匯豐銀行的 Binnie Wong。

Congrats on an epic quarter with beat across the board. So speaking of logistics, right, as one of the key investment for e-commerce companies in general to ensure the order efficiency and also ensure the quality delivery to our customer. Especially important, as you said, we are moving to -- in the Tier 1, 2 cities where users are -- they tend to demand more. So our question here is what is the business model here? And that as we see earlier this year, Pinduoduo has been offering more logistic software and proactively working with merchants, the e-waybill? And also what is the -- how much capital investment we need for our logistic support? And how would you compare your logistic support versus our competitor, who already has a more well-established logistic network there?

恭喜您度過了一個史詩般的季度，全面節拍。所以說到物流，對吧，作為一般電子商務公司的關鍵投資之一，以確保訂單效率並確保向客戶交付的品質。尤其重要的是，正如您所說，我們正在轉向用戶所在的一、二線城市，他們往往會要求更多。所以我們的問題是這裡的商業模式是什麼？正如我們今年早些時候看到的，拼多多一直在提供更多的物流軟體並積極與商家合作，電子運單？我們的後勤支援需要多少資本投資？您如何將您的物流支援與我們的競爭對手進行比較，我們的競爭對手已經在那裡擁有更完善的物流網絡？

Thank you for the question. As Colin mentioned, we always ask ourselves what else we can offer to our users to enhance their user experience and to further enhance their trust. And logistics is one thing that we focus on, and it keeps coming back. We launched our e-waybill system at the beginning of the year to make shipping information more transparent and more up-to-date to our users. And as you may have seen, in the first half of the year we had over 7 billion orders on our platform. So according to China Post's tally of 27.8 billion completed parcel deliveries during the same period in China, our implied parcel market share is well over 25%. The bulk of these parcels, the bulk of our parcels are now processed through our e-waybill system. The success of our e-waybill system is what prompted us to -- with the idea to build on top it, an open technology platform to further enhance logistics and supply chain efficiency in our ecosystem. The efficiency in the current logistics industry has driven largely by economy of scale and we had realized that there is significant room to improve using technology. So our initiative will be as [SLA] as possible. We do not plan to invest in warehousing assets or build delivery fleet. Our aim is to connect and optimize available capacity in the industry to provide better service quality and realize greater efficiency to further lower per-unit costs. We have already started to do this in agriculture as part of our Duo Duo Farm initiative. Over the long run, we actually anticipate using this platform to address different supply chain SaaS opportunities that may arise from working closely with our factories and agricultural producers. And to realize further restructuring of the value chain, in order to reallocate economic value across the supply chain to the producers and benefit our consumers. Next questions, please?

謝謝你的提問。正如 Colin 所提到的，我們總是問自己還能為使用者提供什麼來增強他們的使用者體驗並進一步增強他們的信任。物流是我們關注的一件事，而且它不斷回歸。我們在年初推出了電子運單系統，使貨運資訊對我們的用戶來說更加透明和更新。正如您可能已經看到的，今年上半年我們平台上的訂單量超過 70 億個。因此，根據中國郵政同期中國完成包裹投遞量278億件的統計，我們隱含的包裹市佔率遠超過25%。這些包裹的大部分，我們的大部分包裹現在都是透過我們的電子運單系統處理的。我們的電子運單系統的成功促使我們在其基礎上建立一個開放的技術平台，以進一步提高我們生態系統中的物流和供應鏈效率。目前物流業的效率很大程度上是由規模經濟驅動的，我們已經意識到利用技術還有很大的改進空間。因此，我們的舉措將盡可能[SLA]。我們不打算投資倉儲資產或建立配送車隊。我們的目標是連接和優化行業內的可用容量，以提供更好的服務品質並實現更高的效率，從而進一步降低單位成本。作為「多多農場」計劃的一部分，我們已經開始在農業領域這樣做。從長遠來看，我們實際上預計使用這個平台來解決與我們的工廠和農業生產者密切合作可能產生的不同供應鏈 SaaS 機會。並實現價值鏈的進一步重構，將供應鏈上的經濟價值重新分配給生產者，讓消費者受益。請問下一個問題嗎？

Your next question comes from the line of Tina Long from Crédit Suisse.

您的下一個問題來自瑞士信貸銀行 (Crédit Suisse) 的蒂娜·朗 (Tina Long)。

Congratulations on the good results. The question is on the take rates because I understand that the company started to give some discounts for quality merchants, but I think the take rate has seen some recovery in this quarter. So I want to know what's the direction of the take rate for the next few quarters. Are we start to -- will we start to narrow down or scale back the discounts to those quality merchants? And secondly, very small on the sales and marketing, sort of as a follow-up. Because in -- during June 18 campaign, there has been talk -- basically we have RMB 10 billion subsidy program. But after the month of June, basically now, we're still seeing the [bogan] in the apps in July and August. So does that mean that we should have prolonged this campaign for a longer period of time? And also what would be the implication for the full year and especially second half sales and marketing?

恭喜取得好成績。問題是關於拿貨率，因為我了解到公司開始為優質商家提供一些折扣，但我認為本季拿貨率有所回升。所以我想知道接下來幾季的採用率的方向是什麼。我們是否會開始縮小或減少對那些優質商家的折扣？其次，銷售和行銷的投入非常小，有點像後續行動。因為在 6 月 18 日的競選期間，一直在談論我們基本上有 100 億元的補貼計劃。但在 6 月之後，基本上現在，我們仍然在 7 月和 8 月的應用程式中看到 [bogan]。那麼這是否意味著我們應該將這項運動延長更長的時間？這對全年尤其下半年的銷售和行銷有何影響？

Thank you for the question. As I mentioned, we will -- user experience or user satisfaction is our priority. So we will always continue to support quality merchants on our platform, but I think the way that -- the way to think about the transactions services take rate this quarter, we actually began during this in last quarter, and we continue to be mindful of balancing that versus growth. This quarter, we actually continued to tactically reduce transaction services fee for some merchants, but you should expect fluctuation in this ratio because as we mentioned, we do not actually manage to a specific target.

謝謝你的提問。正如我所提到的，我們將—使用者體驗或使用者滿意度是我們的首要任務。因此，我們將始終繼續支持我們平台上的優質商家，但我認為，考慮本季交易服務率的方式，我們實際上是在上個季度開始的，我們將繼續專注於平衡成長與成長。本季度，我們實際上繼續戰術性地降低了一些商家的交易服務費，但你應該預料到這個比率會出現波動，因為正如我們所提到的，我們實際上並沒有達到特定的目標。

Yes, so I will add a few words. Speaking of take rate, in my mind the fluctuation we are seeing right now is negligible, and I do not recommend that you -- don't focus too much on the fluctuations either increase or decrease of the take rate. In the [medium term], I think, it will be fairly stable in my mind, and speaking of the specific campaign the RMB 10 billion campaign, I would say, I want to take this opportunity to remind you that not like other platforms, they are more event- and festival-driven, but we are really not that festival-driven. So the 6.18 event is just a little kind of a trial for us to participate and it's a place for us to train our staff. But all the other campaigns we launched before the 6.18, during 6.18 or after that may last longer or last shorter. But basically what I'm trying to say is, all the campaigns you see today are not related specifically to a particular festival. So it should be there, or you should expect the campaign to be there for some time and our colleagues will decide when to change the new one.

是的，所以我要補充幾句話。說到佔用率，在我看來，我們現在看到的波動可以忽略不計，我不建議您——不要過度關注佔用率的波動，無論是增加還是減少。在[中期]，我認為，它在我心中會相當穩定，說到具體的百億活動，我想說，我想藉此機會提醒大家，不像其他平台，他們更多地受活動和節日驅動，但我們實際上並不是那麼受節日驅動。所以6.18的活動對我們來說只是一個小小的嘗試，也是對我們員工的訓練。但我們在 6.18 之前、6.18 期間或之後推出的所有其他活動可能會持續更長或更短。但基本上我想說的是，您今天看到的所有活動都與特定節日無關。所以它應該在那裡，或者你應該預期活動會持續一段時間，我們的同事將決定何時更改新的活動。

Your next question comes from the line of Charlie Chen from China Renaissance.

你的下一個問題來自華興資本的陳查理。

I have 1 question regarding your C2M business. So can you share with us your current status of the C2M business? And also what is the value proposition of the products of your C2M business? So is that just a cheaper alternative to your other products? Or is it actually an upgrade of your non-branded products?

我有 1 個關於您的 C2M 業務的問題。那麼可以跟我們分享一下您目前的C2M業務現況嗎？你們的C2M業務產品的價值主張是什麼？那麼這只是您其他產品的更便宜的替代品嗎？或者它實際上是您的非品牌產品的升級？

Okay, thank you for your question. Our -- I will speak of C2M. I'm proud to say that our new brand initiative has been very popular, and we have received over 6,000 applications thus far, and with about 500 companies participating in pilot tests. And as you know, our partnership model for the new brand initiative is built in an open- and asset-light manner. We don't have binding targets set for our partners, and it is really more of a two-way process as we learn from each other to see what value we can bring to benefit our users. And during our 6.18 campaign, we sold over 9 million C2M products. And we also featured both our new brand initiative and Shanghai heritage brand initiative partners such as Warrior shoes and Bee and Flower. So going forward, we will continue to deepen our engagement with our manufacturers on our platform. One of our recent partner is Shenzhen MTC, an ODM, who produces over 10 million TV sets annually for brands like Philips and JVC. So MTC provides us with information related to their product design and the cost structure, and we share with the team -- we share with them the consumer data, and make suggestions on product development and the pricing strategy. So MTC uses these inputs to further improve their supply chain and can roll out quality products to our users, offering great value for money. So the customized TVs that they produce for us under the JVC brands, which was licensed from the JVC is launched a few days ago, and they have sold out of their first 2 SKUs within a few days, selling 1,000 65-inch 4K TVs and 1,500, 62-inch 4K TVs. So these TV sets are just the tip of the iceberg. And there are still many other industries where we can lock and unlock value through our C2M partnerships with merchants. So further, we're developing our logistics technology platform to further help them with supply chain and the logistic efficiencies such as packaging, route optimization, warehousing systems, et cetera. So we do hope to bring a holistic upgrade to our partners and make fundamental change in the vertical value chain of various sectors. So with that said, it's really a long-term goal. You shouldn't expect this can happen overnight. But the initial efforts we have made does give us a positive feedback. So this will provide meaningful value not only to our merchants, but to our users as well. So we will expect them to grow significantly in the future, and it will become a trend, not just on our platform, I believe, other platforms will follow and should follow I guess in the near future as well.

好的，謝謝你的提問。我們的－我會談論C2M。我很自豪地說，我們的新品牌計畫非常受歡迎，迄今已收到 6,000 多份申請，約有 500 家公司參與試點測試。如您所知，我們新品牌計劃的合作夥伴模式是以開放和輕資產的方式建立的。我們沒有為合作夥伴設定具有約束力的目標，這實際上更像是一個雙向過程，我們互相學習，看看我們可以為用戶帶來什麼價值。在6.18活動期間，我們銷售了超過900萬件C2M產品。我們還重點介紹了我們的新品牌計劃和上海傳統品牌計劃合作夥伴，例如迴力鞋和蜂花。因此，展望未來，我們將繼續在我們的平台上加深與製造商的合作。我們最近的合作夥伴之一是深圳兆馳，這是一家 ODM 公司，每年為飛利浦和 JVC 等品牌生產超過 1000 萬台電視機。所以MTC給我們提供了他們的產品設計和成本結構相關的信息，我們和團隊分享——我們和他們分享消費者數據，並對產品開發和定價策略提出建議。因此，MTC 利用這些投入來進一步改善其供應鏈，並向我們的用戶推出優質產品，實現物超所值。所以他們為我們生產的JVC品牌的客製化電視，是由JVC授權的，幾天前就上市了，幾天之內他們的前2個SKU就賣完了，賣出了1000台65英寸4K電視， 1,500台62 吋4K 電視。所以這些電視只是冰山一角。還有許多其他行業，我們可以透過與商家的 C2M 合作夥伴關係來鎖定和釋放價值。此外，我們正在開發物流技術平台，以進一步幫助他們提高供應鏈和物流效率，例如包裝、路線優化、倉儲系統等。所以我們希望為我們的合作夥伴帶來全面的升級，讓各產業的垂直價值鏈發生根本性的改變。話雖如此，這確實是一個長期目標。你不應該指望這會在一夜之間發生。但我們最初的努力確實給了我們正面的回饋。因此，這不僅將為我們的商家提供有意義的價值，也將為我們的用戶提供有意義的價值。因此，我們預計它們在未來會顯著成長，這將成為一種趨勢，而不僅僅是在我們的平台上，我相信其他平台也會發揮作用，並且我想在不久的將來也應該效仿。

Your next question comes from the line of Joyce Ju from Bank of America.

您的下一個問題來自美國銀行的 Joyce Ju。

Congrats on the solid quarter. My question is related to the progress of our category expansion and development of key categories. What's the key category actually driving our strong growth -- GMV growth this quarter? And how's the development of our -- some signature categories such as agricultural products? How much they are now representing our total GMV? And what's the strategy to further increase their strength in these categories down the road?

恭喜季度業績穩定。我的問題是關於我們品類拓展和重點品類開發的進展。真正推動我們強勁成長的關鍵類別是什麼——本季 GMV 成長？我們的農產品等一些標誌性品類的發展如何？他們現在代表我們的總 GMV 多少？未來進一步增強這些類別實力的策略是什麼？

Okay, thank you very much for your question. Well first of all, I want to say that we don't really focus on categories, we focus on users. We're trying very hard to match different kind of products to the users' needs. As long as our users want those products, we'll just try very hard to bring them on to the platform and make them available with the lowest possible price. Speaking of agricultural category, it is a special category. It's not because we sort of GMV growth relies on that, it's just because we start with agriculture produce at the very beginning of our platform. We don't -- we -- usually don't disclose GMV breakdown, but we are encouraged to see agriculture as an important part of our platform. As I mentioned multiple times in my shareholder letters and other communications, agricultural sector landscape is different in China compared to other countries, such as the U.S. Therefore, we need to take a very different approach. The supply of agricultural products is very scattered across China, and of smaller scale. Though in aggregate, it's a very large industry involving hundreds of millions of people. And therefore, we need to tailor the logistic system, the growth cycle, the marketing strategy, and the distribution network of this industry to return value to the farmers. So in 2018, we handled RMB 65 billion worth of agricultural products selling them directly from farmers to consumers. This year, we still see very strong growth in this segment, and with Tier 1 and Tier 2 city users accounting for 70%, almost 70% of the agricultural product orders during our 6.18 campaign. So in 2019, we are continuing seeing a good runway for sustainable growth and a lot of potential for us to help improve industry efficiency. And on the supply side, we're working with both farmers and the local authorities to effective change. We have signed agreement with the Yunnan province to help a total of 74 impoverished counties and take a comprehensive approach towards reshaping the economic value chain. So for example, to help farmers learn how to sell directly on Pinduoduo, we have provided the training courses on marketing and also provided AI-driven farming suggestions utilizing predicted approaches, patterns for fruits and the likely delivery schedules. Farmers are better enabled to plan their planting schedule making their production process more scientific, and reducing wastage. We're also working with authorities and the agricultural universities to grow agricultural talent in this regard. So we hope, and we do hope that what we learned in that Yunnan province can be transplanted to other provinces as well. And I also mentioned, how we are leveraging the logistic technology to improve agricultural sector just now. So over time, this will allow more good and a fresh produce from all parts of China to reach our consumers and providing them with even more choice at an affordable price. We do all of this not only because it's a very good category, a very large market, it can grow our GMV. More importantly, we view agriculture as a very special category that has a special meaning to China, which involves hundreds of [our] million people whose [food] and also affects the daily life and the health of the citizens in Tier 1, Tier 2 cities. So it is a very good category. We both view it of very long-term investment value. We also view this category as a place where a lot of innovation can be done and should be done, and we also feel this is a category we should take our responsibility and do more social good.

好的，非常感謝你的提問。首先我想說，我們並不是真正關注品類，我們關注的是使用者。我們正在努力將不同類型的產品與用戶的需求相匹配。只要我們的用戶需要這些產品，我們就會盡力將它們帶到平台上，並以盡可能低的價格提供。說到農業品類，它是一個特殊的品類。這並不是因為我們的 GMV 成長依賴於此，而是因為我們在平台的一開始就從農產品開始。我們通常不會揭露 GMV 細目，但我們鼓勵將農業視為我們平台的重要組成部分。正如我在股東信和其他通訊中多次提到的那樣，中國的農業產業格局與美國等其他國家不同，因此，我們需要採取截然不同的方法。我國農產品供應非常分散，規模較小。儘管從總體上看，這是一個涉及數億人的非常大的行業。因此，我們需要調整該產業的物流系統、生長週期、行銷策略和分銷網絡，以將價值回饋給農民。2018年，我們處理了價值650億元的農產品，將其從農民直接銷售給消費者。今年，我們仍然看到這個細分市場的成長非常強勁，第一、二線城市用戶佔了70%，幾乎占我們6.18期間農產品訂單的70%。因此，2019 年，我們繼續看到可持續成長的良好跑道，以及幫助提高產業效率的巨大潛力。在供應方面，我們正在與農民和地方當局合作，以實現有效的變革。我們與雲南省簽署幫助74個貧困縣協議，全面重塑經濟價值鏈。例如，為了幫助農民學習如何在拼多多上直接銷售，我們提供了行銷培訓課程，並利用預測的方法、水果模式和可能的交貨時間表提供人工智慧驅動的種植建議。農民可以更好地規劃種植計劃，使生產過程更科學，並減少浪費。我們也與當局和農業大學合作，培養這方面的農業人才。所以我們希望，我們確實希望在雲南省學到的東西也可以移植到其他省份。我剛才也提到了，我們現在如何利用物流技術來改善農業部門。隨著時間的推移，這將使更多來自中國各地的優質新鮮農產品到達我們的消費者手中，並以實惠的價格為他們提供更多的選擇。我們做這一切不僅是因為它是一個非常好的類別、非常大的市場，它可以提高我們的 GMV。更重要的是，我們認為農業是一個非常特殊的類別，對中國有著特殊的意義，它涉及到億萬人民的[糧食]，也影響著一二線人民的日常生活和健康。所以這是一個非常好的類別。我們都認為它具有非常長期的投資價值。我們也認為這個類別是一個可以做很多創新並且應該做的地方，我們也認為這是一個我們應該承擔責任並做更多社會公益的類別。

Thank you, ladies and gentlemen. Unfortunately, we have run out of time for any further questions. I would now like to hand the conference back to these presenters. Please continue.

謝謝你們，女士們、先生們。不幸的是，我們已經沒有時間回答任何進一步的問題了。現在我想把會議交還給這些演講者。請繼續。

Thanks everyone for listening in to our call, and if you have any follow-up questions, IR is always available. Thank you.

感謝大家收聽我們的電話，如果您有任何後續問題，請隨時聯絡 IR。謝謝。

Ladies and gentlemen, that does conclude the conference for today. Thank you for participating. You may now disconnect.

女士們、先生們，今天的會議到此結束。感謝您的參與。您現在可以斷開連線。