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.

女士們，先生們，感謝您的支持，歡迎來到拼多多 2019 年第二季度財報電話會議。

(Operator Instructions) Please be advised that today's conference is being recorded.

（操作員說明）請注意，今天的會議正在錄製中。

I would like to hand the conference over to your first speaker today, Ms. [Sin Ye Lin], Director Investor Relations.

我想把今天的會議交給你的第一位演講者，投資者關係總監[Sin Ye Lin]女士。

Thank you, please go ahead.

謝謝，請繼續。

Thank you, Karina.

謝謝你，卡琳娜。

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 the IR website at investor.pinduoduo.com as well as through GlobeNewswire services.

拼多多的財報發布較早，可在投資者關係網站investor.pinduoduo.com 以及GlobeNewswire 服務上獲取。

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

今天的電話會議上，來自拼多多的是董事長兼首席執行官鄭煌先生；戰略副總裁劉大衛先生。

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

黃先生將審查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.

在隨後的問答環節中，他們都可以回答您的問題。

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.

在我們開始之前，我想提醒您，本次會議包含在該部分中做出的前瞻性陳述 - 1934 年美國證券交易法第 21E 條的含義，經修訂並在美國私人證券訴訟改革法中定義1995 年。

These forward looking statements can be identified by terminologies such as will, expect, anticipate and similar statements.

這些前瞻性陳述可以通過諸如意志、預期、預期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經營狀況，並與涉及已知或未知風險、不確定性和其他因素的事件相關，所有這些都難以預測，其中許多超出了公司的控制範圍，可能導致公司的實際業績表現或成就與前瞻性陳述中的表現或成就存在重大差異。

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

有關這些和其他風險、不確定性或因素的更多信息包含在公司提交給證券交易委員會的文件中。

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.

除非適用法律要求，否則公司不承擔因新信息、未來事件或其他原因而更新任何前瞻性陳述的任何義務。

Now, it is my pleasure to introduce Chairman and Chief Executive Officer, Mr. Huang.

現在，很高興介紹董事長兼首席執行官黃先生。

Mr. Huang, please go ahead.

黃先生，請繼續。

Thanks everyone for attending our second quarter 2019 earnings call.

感謝大家參加我們的 2019 年第二季度財報電話會議。

The end of July marked our first anniversary as a publicly listed company.

七月底是我們作為上市公司一周年的日子。

During this past year, Pinduoduo has become widely recognized as China's leading new e-commerce platform.

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。

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.

我們見證了我們年度活躍買家基礎的強勁增長，達到 4.83 億，過去 12 個月的 GMV 顯著增加至 7090 億元人民幣。

Pinduoduo is not the first adventure for me, nor for some of our management team.

拼多多對我來說不是第一次冒險，對我們的一些管理團隊來說也不是。

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.

我們創立拼多多是因為我們看到了一個機會，可以創造一些可以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一個企業創造價值，而且可以為社會創造價值，因為我們致力於造福所有人，放以人為本，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.

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，我們離這一願景又近了一步。

I am thankful for the continued support of our shareholders, our partners, our employees, and most importantly, our users in this journey.

我感謝我們的股東、我們的合作夥伴、我們的員工，最重要的是，我們的用戶在這個旅程中的持續支持。

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.

當我們在一年前上市並且大多數人不熟悉時，儘管我們始終如一地傳達信息，但一些競爭對手試圖將我們定位為一個只會吸引低線城市對價格敏感的用戶的平台，並且我們的產品便宜，因為它們是低質量甚至仿冒品。

Today, our results have firmly demonstrated otherwise.

今天，我們的結果已經堅定地證明並非如此。

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.

在過去的一年裡，我們的商家基礎擴大到超過 360 萬，為我們的 4.83 億用戶提供更廣泛的產品選擇，涵蓋所有類別。

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.

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。

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.

我們理解用戶的偏好和價值感知在不同的產品類別中差異很大，並且隨著他們的生活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.

因此，隨著用戶的發展，我們一直在努力滿足用戶需求的多個方面。

In other words, we adapt and improve every day as our users grow.

換句話說，隨著用戶的增長，我們每天都在適應和改進。

As a result, we have seen an increase in user satisfaction, engagement, and a broader app penetration.

結果，我們看到了用戶滿意度、參與度和更廣泛的應用滲透率的提高。

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.

我們來自 1 線和 2 線城市的 GMV 佔總 GMV 的百分比已從今年 1 月的 37% 上升到 6 月的 48%。

This meaningful change is the result of our relentless focus on serving our users, regardless of their location, age and gender.

這種有意義的變化是我們堅持不懈地為用戶服務的結果，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，把用戶放在第一位的意思。

Our 6.18 campaign is the perfect example.

我們的 6.18 活動就是一個完美的例子。

E-commerce shopping festivals in China have evolved over the years into complex promotional events that put consumers through a lot of hassle.

多年來，中國的電子商務購物節已經演變成複雜的促銷活動，給消費者帶來了很多麻煩。

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.

然而，消費者真正想要的是以極具吸引力的價格購買他們夢寐以求的東西，而不必產生額外的成本或完成艱鉅的任務。

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.

因此，儘管我們不是一個專注於電商購物節的平台，但我們在今年的 6.18 活動期間進行了一次成功的嘗試，通過輸入我們非常簡單且一致的信息，您看到的價格就是您支付的價格.

We identified in advance 10,000 [deals] be they branded or unbranded.

我們預先確定了 10,000 個 [交易]，無論是品牌還是非品牌。

We then worked with our merchants to make possible the lowest prices.

然後，我們與我們的商家合作，使最低價格成為可能。

We had a dedicated team to ensure that users were getting the best deals over a wide range of products.

我們有一個專門的團隊來確保用戶在各種產品中獲得最優惠的價格。

So they wouldn't need to look any further.

所以他們不需要再看下去了。

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.

結果是從 6 月 1 日到 6 月 18 日的 6.18 促銷期，GMV 同比增長 300%，日均訂單量超過 1600 萬。

We are pleased with this result and we will continue to delivering good and clear deals to our users consistently.

我們對這一結果感到滿意，我們將繼續始終如一地為我們的用戶提供良好而明確的交易。

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.

對於在 6.18 活動期間與我們合作的商家，我們專注於確保他們從為我們的用戶提供的節省中獲得可觀的曝光率。

This demonstrates how we abide our own principle of benefiting all, which we stand firmly for.

這表明我們如何遵守我們自己的利益所有人的原則，這是我們堅定支持的。

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.

過去，很多商家參加了網購節，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收益。

This clearly doesn't benefit all.

這顯然不會使所有人受益。

Similarly, we don't and will never force anyone to take sides, or work exclusively with 1 platform over another.

同樣，我們不會也永遠不會強迫任何人偏袒任何一方，或者只使用一個平台而不是另一個平台。

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.

這樣的策略在短期內可能會延長平台的營銷影響力，但從長遠來看只會傷害商家和用戶。

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.

我們的目標是建立一個開放透明的平台，讓商家公平競爭，以可持續的方式為我們的用戶提供更大的價值和服務。

User satisfaction is our sole KPI, and we will work tirelessly with all our ecosystem partners to achieve this common goal.

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.

與所有參與者共享收益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。

How to create long-term sustainable value is a question we reflect upon constantly.

如何創造長期可持續的價值是我們不斷思考的問題。

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.

由於我們用戶群的規模，我們能夠匯總這個數量，然後動態推薦滿足用戶需求的產品。

This enables our merchants to optimize supply chains to yield the cost efficiency that would support sustainable, competitive pricing.

這使我們的商家能夠優化供應鏈，以產生支持可持續、有競爭力的定價的成本效率。

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.

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性和洞察力，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.

解鎖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。

This is the fundamental thesis of our C2M and Duo Farms initiatives, which we have continued to make progress on.

這是我們 C2M 和 Duo Farms 計劃的基本論點，我們一直在這方面取得進展。

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.

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，還可以保證他們擴大業務、建立品牌和做更多的事情。

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.

迄今為止，我們已在 20 至 12 月的新品牌計劃中擴大了許多製造商——從 2018 年 12 月增加到 63 家，它們涵蓋了從大型家用電器到玻璃器皿和廚具的各個行業。

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.

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，我們就獲得了超過 1,700 萬份訂單。

We sold over 9 million items produced specially for Pinduoduo.

我們銷售了超過 900 萬件專為拼多多生產的商品。

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.

同時，我們繼續深化涉農，推出雲南【寶山】多多農場二期，成為最大的生鮮農產品電商平台。

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.

我們致力於實現雙贏的局面，讓農民獲得更多的經濟利益，讓消費者獲得更好的生產價格。

We recently extended this initiative through our agreement with the Yunnan province to help a total of 74 impoverished counties.

我們最近通過與雲南省的協議擴大了這一舉措，幫助了 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.

我們與地方當局合作，開創了一個自我驅動的合作系統，我們正在教育農民如何更好地規劃他們的種植週期。

How to efficiently modernize their production as well as how to market and price their produce.

如何有效地現代化他們的生產以及如何營銷和定價他們的產品。

The next step in that journey will be getting these fresh produce to consumers in an even more reliable and timely manner.

這一旅程的下一步將以更加可靠和及時的方式將這些新鮮農產品送到消費者手中。

We often ask ourselves what else do users want beside value for money products.

我們經常問自己，除了物有所值的產品，用戶還想要什麼。

And how do we help the people who actually produce these products.

以及我們如何幫助實際生產這些產品的人。

One thing that keeps popping up is having cheaper, faster and a more reliable logistics and a supply chain network.

不斷湧現的一件事是擁有更便宜、更快和更可靠的物流和供應鍊網絡。

The current system has already improved significantly over the past decade, thanks to the economic growth China has experienced.

由於中國經歷了經濟增長，目前的體系在過去十年中已經有了顯著改善。

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.

然而，我們相信，基於我們從該平台上所有生態系統參與者那裡學到的知識構建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。

This is not a small task.

這不是一項小任務。

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.

但這樣做會顯著擴大用戶可用的產品範圍，尤其是農產品，並降低物流成本和供應鏈浪費。

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.

因此，我們已經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稱之為新物流的驅動力。

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.

這種資產幻燈片模型將是一個開放平台，專注於利用技術為我們規模龐大且不斷增長的商家提供解決方案，為用戶提供服務。

We welcome all to participate.

我們歡迎大家參與。

The first pillar to our platform was the e-waybill system that we launched at the beginning of the year.

我們平台的第一個支柱是我們在年初推出的電子運單系統。

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.

我們的生態系統合作夥伴（包括所有主要的 3PL 提供商）的迅速採用，加上積極的用戶反饋，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。

To date, almost all of our orders have adopted our e-waybill system.

迄今為止，我們幾乎所有的訂單都採用了我們的電子運單系統。

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.

這是我們不斷完善物流平台的結果，不斷推出新的功能來滿足用戶的需求，例如包裹攔截、投遞錯誤警告和服務提供商推薦。

Our merchants have the freedom to choose -- freedom to use ours or others' systems.

我們的商家有選擇的自由——使用我們或他人系統的自由。

We thrive to offer the best product to them.

我們致力於為他們提供最好的產品。

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.

在電子運單的基礎上，我們正在系統地推出其他增值服務，這些服務構成了我們未來物流技術平台的基礎。

While increased economies of scale drove the improvements in industry efficiency previously, it is also beginning to reach its natural limitations.

雖然規模經濟的增加以前推動了行業效率的提高，但它也開始達到其自然極限。

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.

人工智能驅動的路線規劃、物聯網傳感器和設備、自動化倉儲、分揀和路由等新技術將成為下一代物流服務的基礎，因為我們與商家的關係加深，到 C2M 、跨境電子商務和其他舉措，我們將有能力在從供應鏈到生產到倉儲和交付的各個領域與各方合作。

Only through greater vertical integration and partnership will we be able to fundamentally change the allocation of economic value in the industry.

只有通過更大程度的垂直整合和合作，我們才能從根本上改變行業經濟價值的分配方式。

And we are committed to doing so such that greater value can be shared with our users and value creators across the value chain.

我們致力於這樣做，以便在整個價值鏈中與我們的用戶和價值創造者分享更大的價值。

As an example, we have been spearheading some investments to drive innovation in agricultural logistics.

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。

Our scale enables us to work with farmers to standardize fruit sizes and optimize packaging designs.

我們的規模使我們能夠與農民合作，使水果尺寸標準化並優化包裝設計。

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.

我們還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，並將物流與普通包裹分開，以優化效率和數量。

Our predictive modeling technology can help power and route planning behind the agricultural produce network.

我們的預測建模技術可以幫助農產品網絡背後的電力和路線規劃。

We're confident that such optimization can be achieved because of the unique technology background of our team.

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優化。

Our founding principle of being open and -- to all parties.

我們的創始原則是對所有各方開放。

And the large and growing amount of the demand on our platform from our diverse user base.

以及來自我們多樣化的用戶群對我們平台的巨大且不斷增長的需求。

We believe that one can only succeed by constantly innovating and being more open.

我們相信，只有不斷創新和更加開放，才能成功。

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.

在展望下半年的同時，我們仍然相信，我們以用戶為中心、讓所有人受益的戰略將繼續產生強勁的成果，並將繼續投資於增強用戶體驗的技術和能力。

With that, I will now hand over the time to David.

有了這個，我現在將把時間交給大衛。

And thank you, Colin, and hello, everyone.

謝謝你，科林，大家好。

The second quarter of 2019 was a strong quarter for us as we continued to execute on our strategic priorities to serve our users.

2019 年第二季度對我們來說是一個強勁的季度，因為我們繼續執行我們的戰略重點來服務我們的用戶。

Our last 12-months' GMV grew 171% over the same period last year to reach RMB 709.1 billion.

我們過去 12 個月的 GMV 比去年同期增長 171%，達到人民幣 7091 億元。

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.

在這 6.18 活動期間，從 6 月 1 日到 6 月 18 日，我們的 GMV 同比增長超過 300%，訂單超過 11 億。

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.

本季度總收入同比增長 169% 至人民幣 73 億元，遠高於一年前的人民幣 27 億元。

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.

我們強勁的收入增長主要是由於我們 GMV 的快速增長以及我們穩步提高的貨幣化率，這反映了我們為用戶和商家創造的價值。

Our last 12-month monetization rate for this past quarter was 2.9%.

我們上個季度過去 12 個月的貨幣化率為 2.9%。

Online Marketing and Services revenue was RMB 6.5 billion this quarter, constituting 89% of our total revenues.

本季度在線營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.

這比去年同期的人民幣 24 億元增長了 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.

我們過去 12 個月的在線營銷服務收入連續第七個季度增長，達到我們總 GMV 的 2.6%。

This sustained growth reflects the continuous expansion of our platform and our services.

這種持續增長反映了我們平台和服務的不斷擴展。

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.

隨著越來越多的買家更頻繁地訪問我們的平台，花費更多時間瀏覽我們的產品套件，並以更高的信任度購買，我們的商家在平台上的廣告投資回報率也在提高。

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.

這鼓勵我們的商家更積極地利用我們的廣告產品，以增加他們對目標用戶的曝光率並推動更多銷售。

In the meantime, we also continue to enhance the advertising and selling tools available to our merchants.

與此同時，我們還繼續增強商家可用的廣告和銷售工具。

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.

例如，本季度，我們推出了一項功能，該功能可以自動掃描所有有效產品列表，以查看它們是否針對我們平台上的顯示和發現進行了優化。

Merchants can now quickly identify inefficient listings and easily follow our system's prompts to fix these issues.

商家現在可以快速識別低效列表，並輕鬆按照我們系統的提示解決這些問題。

This helps merchants to reduce ineffective marketing spend and achieve better ROIs, which in turn drives greater investments by them on our platform.

這有助於商家減少無效的營銷支出並獲得更好的投資回報率，從而推動他們在我們的平台上進行更多的投資。

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.

我們的許多商家仍在我們的平台上建立他們的影響力和積累銷售額，他們仍在熟悉我們平台的規則。

It is therefore critical to have more comprehensive tools and to educate our merchants about these tools.

因此，擁有更全面的工具並對我們的商家進行有關這些工具的教育至關重要。

We anticipate more participation of our active merchants on our platform.

我們預計我們的活躍商家將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.

讓我舉一個商家的例子，他在我們平台上的初步成功基礎上更好地使用了我們的廣告工具。

This is a women's wear merchant, who has been on our platform for over 2 years.

這是一個女裝商家，在我們平台上已經2年多了。

They have their own factories and 30% of their sales are online, of which Pinduoduo constitutes 70%.

他們有自己的工廠，30%的銷售額來自線上，其中拼多多佔了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.

在拼多多上，他們決定專注於更高的票價、更高品質的女裝，他們的熱門產品是風衣，他們於 2018 年底推出。

The coat is priced 50% higher than that of their competitors but still offers great value given superior materials.

這件外套的價格比他們的競爭對手高 50%，但考慮到優質的材料，它仍然具有很高的價值。

Despite the higher price, they sold over 40,000 units with the help of targeted advertising.

儘管價格較高，但他們在定向廣告的幫助下售出了超過 40,000 台。

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.

他們最初花在關鍵詞競價上以增加銷量，並通過不斷優化關鍵詞、創意和列表細節將轉化率提高到同行的兩倍。

After building up their sales for a few months, they then added feed advertising on top of keyword bidding.

在建立了幾個月的銷售額後，他們在關鍵字競價的基礎上添加了 Feed 廣告。

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.

在銷售高峰期，他們將每月的總支出增加到上個月的 3 倍，因為他們逐漸針對瀏覽過競爭產品的用戶。

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.

這樣一來，不僅搜索過風衣的用戶會看到他們的產品，而且當他們繼續瀏覽時，他們還會通過收費廣告重新定位和重新展示到應用程序的不同部分。

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.

在第一季度，營銷支出幫助他們在自然流量的基礎上增加了 10,000 個單位的銷量，商家實現了大約 10 倍的淨投資回報率。

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.

這只是成功商家的一個例子，他在我們的平台上 - 就我們在線營銷服務收入的驅動因素提供了一些觀點。

Rounding our discussion on revenue, the remainder of our revenues come from transaction services.

圍繞我們對收入的討論，我們其餘的收入來自交易服務。

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.

本季度我們的交易服務收入同比增長 143%，從去年的人民幣 3.381 億元增至人民幣 8.229 億元。

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.

我們的交易服務收入占我們 GMV 的百分比在每個季度都有波動，這主要是由於我們進行了戰術調整以激勵商家和合作夥伴為我們的用戶提供優質服務。

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.

我們繼續打造物流和商戶諮詢等其他增值服務，以幫助我們的商戶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.

轉向成本。

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

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

This translates to a gross margin of 78% this quarter as compared to 86% a year ago.

這意味著本季度的毛利率為 78%，而一年前為 86%。

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.

本季度毛利率低於上年，反映了我們對網絡基礎設施的投資，以及支持我們快速增長的業務的商家支持服務。

Total operating expenses this quarter were RMB 7.2 billion as compared to RMB 9 billion in the same period last year.

本季度總營業費用為人民幣72億元，而去年同期為人民幣90億元。

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.

我們本季度的銷售和營銷費用從 - 增加到人民幣 61 億元，因為我們在本季度下半年進行了大規模的營銷推廣，並在我們的 6.18 活動之前和整個活動期間開展了促銷活動。

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.

在 6 月 1 日至 6 月 18 日期間，我們的 GMV 同比增長超過 300%，因為我們吸引了新老用戶的大量興趣和參與。

We received over 1.1 billion orders during this campaign, which translates to over 60 million orders daily.

在此活動期間，我們收到了超過 11 億個訂單，這意味著每天有超過 6000 萬個訂單。

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.

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，每個訂單表明重複訪問的水平很高。

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.

在本季度，我們還看到更高的平均訂單價值和不斷增長的購買頻率，這共同推動我們每位活躍買家的年度支出達到人民幣 1,468 元，比 2018 年 6 月季度的人民幣 763 元增長 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.

在非公認會計準則基礎上，本季度銷售和營銷費用佔收入的百分比為 81%，而 GMV 顯著增長和收入增長。

We continue to be very focused and targeting in our marketing strategy.

我們繼續非常專注於我們的營銷策略。

As we shared previously, when we strictly, and on a real-time basis, evaluate the ROI of our sales and marketing investments.

正如我們之前所分享的，當我們嚴格、實時地評估我們的銷售和營銷投資的投資回報率時。

We go beyond financial metrics to include the changes in engagement that these investments bring about.

我們超越了財務指標，包括這些投資帶來的參與度變化。

For example, has the users gone from being active annually to being active monthly or even daily.

例如，用戶是否從每年活躍到每月甚至每天活躍。

In that journey has the user been sharing more with their friends and family or inviting new users to the platform?

在那段旅程中，用戶是否與他們的朋友和家人分享了更多內容或邀請新用戶加入平台？

User engagement influences user trust, user spending, merchant ROI, merchant spending, and more importantly, our entire platform's user satisfaction level.

用戶參與會影響用戶信任、用戶支出、商家投資回報率、商家支出，更重要的是，影響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.

我們相信，我們本季度的強勁業績證明了我們商業模式的有意義的潛在槓桿作用以及我們過去所做投資的初步收益。

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.

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，我們將在銷售和營銷投資方面保持自律和樂觀。

We will only invest when ROI requirements can be met and if the investments accrue to the intrinsic value of the company.

我們只會在能夠滿足投資回報率要求並且投資累積到公司的內在價值時進行投資。

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.

本季度我們的一般和管理費用為人民幣 2.783 億元，由於股權基礎薪酬費用降低，較去年大幅減少。

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

在非公認會計原則的基礎上，我們的 G&A 費用占我們收入的百分比為 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.

本季度我們的研發費用為人民幣 8.037 億元，比去年大幅增加，原因是我們投資聘請了更有經驗的算法工程師，並在研發相關的雲服務上投入了更多資金。

On a non-GAAP basis, our R&D expenses as a percentage of our revenue was 8%.

按非公認會計原則計算，我們的研發費用佔收入的百分比為 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.

我們正在按計劃在今年增加至少 2,000 名工程師，我們將繼續投資於我們的分佈式 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.

本季度經營虧損為人民幣15億元，而去年同期為虧損人民幣66億元。

Non-GAAP operating loss was RMB 898.4 million compared with a loss of RMB 815.7 million in the same period last year.

Non-GAAP 經營虧損為人民幣 8.984 億元，而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.

歸屬於普通股股東的淨虧損為人民幣10億元，而去年同期為淨虧損人民幣65億元。

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.

每份ADS的基本和攤薄淨虧損為0.88元，而去年同期每份ADS的淨虧損為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人民幣4.113億元，而去年同期為人民幣6.734億元。

Non-GAAP basic and diluted net loss per ADS were

每 ADS 的非 GAAP 基本和攤薄淨虧損為

RMB 0.36 compared with RMB 1.4 for the same quarter of 2018.

0.36 元，而 2018 年同期為 1.4 元。

That completes the profit and loss statements for the second quarter.

這樣就完成了第二季度的損益表。

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.

第二季度經營活動提供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，主要是由於我們的在線營銷服務收入增加。

As of June 30, 2019, the company had a strong balance sheet with RMB 40.7 billion in cash, cash equivalent and restricted cash.

截至 2019 年 6 月 30 日，公司資產負債表穩健，現金、現金等價物和受限現金為人民幣 407 億元。

Excluding restricted cash, we had RMB 23.9 billion in cash and cash equivalents.

不包括限制性現金，我們擁有人民幣 239 億元的現金和現金等價物。

In addition, we had RMB 7.9 billion in short-term investments bringing our total cash available to RMB 31.8 billion.

此外，我們還有人民幣 79 億元的短期投資，使我們的總可用現金達到人民幣 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.

因此，我們今年有能力進行必要的投資以建立我們的平台並加強我們的競爭優勢。

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.

我們仍然看到很大的創新空間，並為我們的用戶和商家提供更多價值，我們將謹慎投資以推進我們的戰略。

This concludes our prepared remarks.

我們準備好的評論到此結束。

Operator, we are now ready for questions.

接線員，我們現在可以提問了。

(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.

我將其限制為一個，但這是一個大問題。

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.

當我看競爭時，我看你們的市場份額，你們在第二季度佔據了中國 GMV 增長的 31% 以上。

And that's up from 21%, 25%, 19% in the last couple of quarters.

這比過去幾個季度的 21%、25%、19% 有所上升。

At that run rate, by the time we get to the end of the year, your market share will be fairly significant.

以這樣的運行速度，到今年年底，您的市場份額將相當可觀。

I wondered if you could comment on the competitive landscape currently at the end of the year.

我想知道您是否可以在今年年底評論當前的競爭格局。

How this is likely to change?

這可能會如何改變？

And what are the challenges you think you will face in the coming quarters?

您認為未來幾個季度您將面臨哪些挑戰？

Okay, a lot of people ask me about competition.

好吧，很多人問我關於競爭的問題。

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.

中國的電子商務確實是一個競爭非常激烈的環境，但我想在這裡重申，我們更專注於我們的運營以及我們如何保護我們的用戶，而不是看別人在做什麼。

With that said, competition has always been here.

話雖如此，競爭一直存在。

We have always operated in a very, very competitive industry, and we have managed to grow to our current scale despite these competitions.

我們一直在一個競爭非常激烈的行業中運營，儘管有這些競爭，我們還是成功地發展到了目前的規模。

Actually, we should be thankful to these competitions since they help us to learn faster and innovate faster to serve our users.

實際上，我們應該感謝這些比賽，因為它們幫助我們更快地學習和更快地創新以服務我們的用戶。

To some degree, the results of last quarter is somewhat a result of the competition.

在某種程度上，上一季度的成績多少是競爭的結果。

One example is the 6.18 campaign, which shows that we are on the right path.

一個例子是 6.18 運動，它表明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.

今年我們看到了不錯的結果，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.

說到具體的比賽技巧。

On the merchant side, there indeed has been very intense competition, some of which are against the recent e-commerce law.

在商家方面，確實存在非常激烈的競爭，其中一些是違反最近的電子商務法的。

And forces merchants to pick sides and work exclusively with 1 platform.

並迫使商家選邊站，只與 1 個平台合作。

This actually goes against our principles to provide an open platform and a fair platform to all the merchants.

這實際上違背了我們為所有商家提供開放平台和公平平台的原則。

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.

實際上，最近我們注意到，國務院辦公廳發布了關於規範和培育電子商務行業可持續發展促進經濟增長的指導意見。

It reiterated the importance of fair market competition and a product quality control for consumer perception.

它重申了公平市場競爭和產品質量控制對消費者認知的重要性。

So the state administration for market regulation has been tasked to implement these guidelines.

因此，國家市場監管總局已責成執行這些指導方針。

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.

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，它激發了我們自己團隊內部的創新，並幫助我們以比前。

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.

如果我們把這個問題看作一個長期的問題，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。

So with that, I don't think it can last that long.

因此，我認為它不會持續那麼久。

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.

所以如果我們放眼長遠，那麼我們應該注意到，今天，中國的電子商務市場還不是零和遊戲。

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.

我想說這仍然是一個早期到中期的階段，面臨著一個不斷增長的——30 萬億元人民幣的市場加上一個零售機會。

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.

這個行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，試圖拿別人的蛋糕或類似的東西。

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.

因此，如果我們看一下中國的零售總額，我會說電子商務仍將佔據越來越多的市場份額，或者說是整體零售的更大蛋糕。

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，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增長空間，儘管它們之間存在激烈的競爭。

So does that answer your question?

那麼這是否回答了你的問題？

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.

祝賀你取得了一系列強有力的結果。

I have a question relating to sales and marketing expenses.

我有一個關於銷售和營銷費用的問題。

I noticed that the sales and marketing expenses, RMB 6.1 billion for this quarter, which is slightly higher than the Street expectations.

我注意到本季度的銷售和營銷費用為人民幣 61 億元，略高於華爾街的預期。

But what we see is that as a percentage of revenue, it came in better than expected because of better monetization.

但我們看到的是，作為收入的百分比，由於更好的貨幣化，它比預期的要好。

So my question is about the trend, where is the delta coming from compared with Street expectations?

所以我的問題是關於趨勢，與華爾街預期相比，增量來自哪裡？

And how should we think about sales and marketing expenses as we go into the second half?

進入下半年，我們應該如何考慮銷售和營銷費用？

Thank you, Thomas.

謝謝你，托馬斯。

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.

我們了解銷售和營銷支出是我們投資者的重點，我們想再次重申，我們希望通過銷售和營銷投資實現的戰略重點沒有改變。

That is to say that we seek an enhanced user recognition of our platform, increase user engagement, and build users' trust.

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。

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.

因為我們相信這將轉化為我們的 GMV 和收入的增長，並最終轉化為我們的長期內在價值的利潤和累積。

As such, sales and marketing leverage as demonstrated by our second quarter result is really an output.

因此，我們第二季度業績所展示的銷售和營銷槓桿實際上是一種產出。

The RMB 6.1 billion you see, this is not a target variable that we optimize for.

你看到的61億元，這不是我們優化的目標變量。

We also do not manage towards a fixed budget in terms of dollar or ratio.

我們也沒有按照美元或比率來管理固定預算。

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.

這是因為盲目地堅持這樣的目標，我們認為可能會導致我們在當今瞬息萬變的環境中錯失良好的投資機會。

So going forward, we'll continue to make investments in sales and marketing as long as our ROI requirements are met.

因此，展望未來，只要滿足我們的 ROI 要求，我們將繼續在銷售和營銷方面進行投資。

We see our results in the second quarter as a good indication of our strategy being on the right path.

我們認為第二季度的業績很好地表明我們的戰略正走在正確的道路上。

However, we are not in a position to comment whether our sales and marketing numbers will increase or decrease.

但是，我們無法評論我們的銷售和營銷數量是否會增加或減少。

And we hope that investors appreciate our discipline and strength to always act quickly on marketing opportunities.

我們希望投資者能夠欣賞我們的紀律和實力，以便始終對營銷機會迅速採取行動。

Next question?

下一個問題？

Yes.

是的。

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

您的下一個問題來自花旗集團的 Alicia Yap。

Congrats on the solid quarter.

祝賀堅實的季度。

My question is related to your new user growth.

我的問題與您的新用戶增長有關。

Given this 483 million active buyers, this quarter is very solid.

鑑於這 4.83 億活躍買家，本季度非常穩健。

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?

只是想了解一下您過去採用的有序用戶獲取策略，哪一個在獲取新用戶方面最有效？

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?

考慮到您的一些同行加大力度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？

Any change in the user retentions?

用戶留存率有什麼變化？

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?

即使我們從長遠來看，比方說，PDD 能夠實現與我們最大同行的用戶群相似的規模，您如何看待您平台上的用戶與競爭對手的對比？

How -- what are the attractiveness on PDD platform that could continue to attract and retain the user to shop on PDD?

如何——PDD 平台的吸引力是什麼，可以繼續吸引和留住用戶在 PDD 上購物？

Thank you for your question.

謝謝你的問題。

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.

我知道您對哪種技術可能是最有效或最有用的感到好奇，但我很遺憾地說這是一致策略的結果。

Really it's not a secret, but to be honest, it is -- there is no secret there.

真的這不是秘密，但老實說，它是——那裡沒有秘密。

It's just that we keep doing the same thing and we keep laser focused on our users.

只是我們一直在做同樣的事情，我們一直專注於我們的用戶。

So the user acquisition is a result of the user satisfaction level.

所以用戶獲取是用戶滿意度的結果。

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.

有時數字會更高，有時數字會更低，但如果你忘記了逐季度的數字，而是看久一點，你看一年或幾年，那麼你會逐漸相信一個簡單的哲學，如果你持續不斷地做正確的事情，你就會看到復利的力量。

So this quarter to us, it's just a normal quarter.

所以這個季度對我們來說只是一個正常的季度。

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.

確實沒有發生什麼戲劇性的事情，但我們模型的美妙之處在於它很簡單，而且它 - 沒有魔法。

Hey, Alicia, just to add on top of Colin's comments.

嘿，艾麗西亞，只是補充科林的評論。

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.

我想說的是，從長遠來看——如果你看看我們的結果，這實際上反映了我們繼續關注用戶的需求和想要的東西，並能夠實現這一價值。

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.

因此，您可以看到，我們 6 月份的 GMV 幾乎有一半——我們 6 月份的 GMV 幾乎有一半實際上來自 1 線和 2 線城市。

This shows that our investment in building our brand recognition are paying off.

這表明我們在建立品牌知名度方面的投資正在獲得回報。

And we also continued through user ads in the lower-tier cities as well.

我們還繼續在低線城市投放用戶廣告。

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.

因此，正如我們過去提到或傳達的那樣，拼多多真的被設計成一個成熟的電子商務平台，服務於中國全體人口，我們真的看到了廣告——用戶廣告全面鋪開。

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.

我們將進一步強調，由於我們更好地了解用戶的偏好以及他們如何交互和影響網絡，這實際上幫助我們改進了推薦的相關性。

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.

而且我們現在擁有 - 因為我們現在擁有更廣泛的產品系列，具有更多可供我們使用的特性以及我們細緻入微的建議，我們已經看到這反映在將我們的 AOV 現在增加到超過 50 元人民幣。

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.

祝賀取得了非常穩健的結果。

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.

我的問題是關於京東的升級，從今年10月開始進入1級，這將更加針對低線城市用戶的物有所值商品。

So just wondering should we worry about any potential impact on us?

所以只是想知道我們是否應該擔心對我們的任何潛在影響？

I would appreciate it if management can give us some color on that.

如果管理層能給我們一些顏色，我將不勝感激。

Well, in general, we don't comment on others' strategy or others' activities.

好吧，一般來說，我們不會評論他人的策略或他人的活動。

But I can say a little bit.

但我可以說一點。

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.

我認為插槽已經存在，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自己的事情。

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.

而且這個策略一直保持不變，我們一直專注於我們自己的用戶，而不是擔心別人在做什麼，看起來我們頭腦簡單的策略在過去確實獎勵了我們。

So we will just stay with what we are.

因此，我們將保持現狀。

Next question?

下一個問題？

Yes.

是的。

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

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.

祝賀史詩般的季度全面節拍。

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.

所以說到物流，對了，作為一般電子商務公司的關鍵投資之一，既要保證訂單效率，又要保證質量交付給我們的客戶。

Especially important, as you said, we are moving to -- in the Tier 1, 2 cities where users are -- they tend to demand more.

特別重要的是，正如您所說，我們正在向用戶所在的 1、2 線城市轉移，他們往往要求更多。

So our question here is what is the business model here?

所以我們的問題是這裡的商業模式是什麼？

And that as we see earlier this year, Pinduoduo has been offering more logistic software and proactively working with merchants, the e-waybill?

正如我們在今年早些時候看到的那樣，拼多多一直在提供更多的物流軟件，並積極與商家合作，電子運單？

And also what is the -- how much capital investment we need for our logistic support?

還有什麼是我們的後勤支持需要多少資本投資？

And how would you compare your logistic support versus our competitor, who already has a more well-established logistic network there?

您如何將您的後勤支持與我們的競爭對手進行比較，後者已經在那裡擁有更完善的後勤網絡？

Thank you for the question.

感謝你的提問。

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.

正如 Colin 所提到的，我們總是問自己，我們還能為用戶提供什麼來增強他們的用戶體驗並進一步增強他們的信任。

And logistics is one thing that we focus on, and it keeps coming back.

物流是我們關注的一件事，而且它會不斷回來。

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.

我們在年初推出了電子運單系統，以使運輸信息對我們的用戶更加透明和最新。

And as you may have seen, in the first half of the year we had over 7 billion orders on our platform.

您可能已經看到，今年上半年，我們平台上的訂單超過 70 億份。

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%.

因此，根據中國郵政同期在中國完成的 278 億件包裹投遞的統計，我們隱含的包裹市場份額遠遠超過 25%。

The bulk of these parcels, the bulk of our parcels are now processed through our e-waybill system.

這些包裹的大部分，我們的大部分包裹現在都通過我們的電子運單系統進行處理。

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.

我們的電子運單系統的成功促使我們建立了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。

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.

當前物流行業的效率很大程度上是由規模經濟驅動的，我們意識到使用技術還有很大的改進空間。

So our initiative will be as [SLA] as possible.

因此，我們的倡議將盡可能 [SLA]。

We do not plan to invest in warehousing assets or build delivery fleet.

我們不打算投資倉儲資產或建立送貨車隊。

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.

我們的目標是連接和優化行業的可用容量，以提供更好的服務質量並實現更高的效率，從而進一步降低單位成本。

We have already started to do this in agriculture as part of our Duo Duo Farm initiative.

作為我們 Duo Duo Farm 計劃的一部分，我們已經開始在農業中這樣做。

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.

從長遠來看，我們實際上預計使用這個平台來解決可能因與我們的工廠和農業生產商密切合作而產生的不同供應鏈 SaaS 機會。

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.

並實現價值鏈的進一步重組，以將整個供應鏈的經濟價值重新分配給生產者，並使我們的消費者受益。

Next questions, please?

請問下一個問題？

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的 Tina Long。

Congratulations on the good results.

祝賀取得好成績。

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.

問題在於收取率，因為我了解公司開始為優質商家提供一些折扣，但我認為本季度的收取率有所回升。

So I want to know what's the direction of the take rate for the next few quarters.

所以我想知道接下來幾個季度的利率方向是什麼。

Are we start to -- will we start to narrow down or scale back the discounts to those quality merchants?

我們是否開始——我們會開始縮小或縮減對那些優質商家的折扣嗎？

And secondly, very small on the sales and marketing, sort of as a follow-up.

其次，在銷售和營銷方面非常少，有點像後續行動。

Because in -- during June 18 campaign, there has been talk -- basically we have RMB 10 billion subsidy program.

因為在 6 月 18 日的競選活動中，有傳言說我們基本上有 100 億元的補貼計劃。

But after the month of June, basically now, we're still seeing the [bogan] in the apps in July and August.

但是在 6 月份之後，基本上現在，我們仍然在 7 月和 8 月的應用程序中看到 [bogan]。

So does that mean that we should have prolonged this campaign for a longer period of time?

那麼這是否意味著我們應該將這場運動延長更長的時間？

And also what would be the implication for the full year and especially second half sales and marketing?

以及對全年尤其是下半年的銷售和營銷有何影響？

Thank you for the question.

感謝你的提問。

As I mentioned, we will -- user experience or user satisfaction is our priority.

正如我所提到的，我們將——用戶體驗或用戶滿意度是我們的首要任務。

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.

因此，我們將始終在我們的平台上繼續支持優質商家，但我認為，考慮交易服務的方式在本季度占主導地位，我們實際上是在上個季度開始的，我們繼續注意平衡這與增長。

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.

本季度，我們實際上繼續策略性地降低一些商家的交易服務費，但您應該預計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.

是的，所以我將添加幾句話。

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.

說到take rate，在我看來，我們現在看到的波動可以忽略不計，我不建議你——不要過分關注take rate的增加或減少的波動。

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.

中期來看，我覺得還是比較穩定的，說到具體的100億的活動，我想說，我想藉此機會提醒大家，和其他平台不一樣，他們更受事件和節日驅動，但我們真的不是那種由節日驅動的。

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.

所以6.18活動只是我們參加的一個小試煉，也是我們培訓員工的地方。

But all the other campaigns we launched before the 6.18, during 6.18 or after that may last longer or last shorter.

但我們在 6.18 之前、6.18 期間或之後發起的所有其他活動可能會持續更長時間或更短。

But basically what I'm trying to say is, all the campaigns you see today are not related specifically to a particular festival.

但基本上我想說的是，你今天看到的所有活動都與特定的節日無關。

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.

所以它應該在那裡，或者您應該期望該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.

您的下一個問題來自華興資本的 Charlie Chen。

I have 1 question regarding your C2M business.

我有 1 個關於您的 C2M 業務的問題。

So can you share with us your current status of the C2M business?

那麼您能與我們分享一下您目前的 C2M 業務狀況嗎？

And also what is the value proposition of the products of your C2M business?

您的 C2M 業務產品的價值主張是什麼？

So is that just a cheaper alternative to your other products?

那麼這只是您其他產品的更便宜的替代品嗎？

Or is it actually an upgrade of your non-branded products?

或者它實際上是您的非品牌產品的升級？

Okay, thank you for your question.

好的，謝謝你的提問。

Our -- I will speak of C2M.

我們的——我將談論 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.

我很自豪地說，我們的新品牌計劃非常受歡迎，到目前為止，我們已收到超過 6,000 份申請，約有 500 家公司參與了試點測試。

And as you know, our partnership model for the new brand initiative is built in an open- and asset-light manner.

如您所知，我們新品牌計劃的合作模式是以開放和輕資產的方式建立的。

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.

我們沒有為我們的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，因為我們互相學習，看看我們可以帶來什麼價值來造福我們的用戶。

And during our 6.18 campaign, we sold over 9 million C2M products.

在我們的 6.18 活動期間，我們售出了超過 900 萬件 C2M 產品。

And we also featured both our new brand initiative and Shanghai heritage brand initiative partners such as Warrior shoes and Bee and Flower.

我們還展示了我們的新品牌倡議和上海傳統品牌倡議合作夥伴，例如 Warrior shoes 和 Bee and Flower。

So going forward, we will continue to deepen our engagement with our manufacturers on our platform.

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。

One of our recent partner is Shenzhen MTC, an ODM, who produces over 10 million TV sets annually for brands like Philips and JVC.

我們最近的合作夥伴之一是深圳 MTC，一家 ODM，每年為飛利浦和 JVC 等品牌生產超過 1000 萬台電視機。

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.

因此，MTC 為我們提供了與他們的產品設計和成本結構相關的信息，我們與團隊分享——我們與他們分享消費者數據，並就產品開發和定價策略提出建議。

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.

因此，MTC 使用這些投入來進一步改善他們的供應鏈，並可以向我們的用戶推出優質產品，提供物超所值的服務。

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.

所以他們在JVC品牌下為我們生產的定制電視，是從JVC授權的，幾天前就推出了，他們的前2個SKU在幾天內就賣光了，銷售了1000台65英寸4K電視和1,500 台 62 英寸 4K 電視。

So these TV sets are just the tip of the iceberg.

所以這些電視機只是冰山一角。

And there are still many other industries where we can lock and unlock value through our C2M partnerships with merchants.

還有許多其他行業，我們可以通過與商家的 C2M 合作來鎖定和釋放價值。

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.

因此，我們正在開發我們的物流技術平台，以進一步幫助他們提高供應鍊和物流效率，例如包裝、路線優化、倉儲系統等。

So we do hope to bring a holistic upgrade to our partners and make fundamental change in the vertical value chain of various sectors.

所以我們確實希望給我們的合作夥伴帶來一個整體的升級，在各個領域的垂直價值鏈上做出根本性的改變。

So with that said, it's really a long-term goal.

話雖如此，這確實是一個長期目標。

You shouldn't expect this can happen overnight.

你不應該期望這會在一夜之間發生。

But the initial efforts we have made does give us a positive feedback.

但我們所做的初步努力確實給了我們積極的反饋。

So this will provide meaningful value not only to our merchants, but to our users as well.

因此，這不僅會為我們的商家，也會為我們的用戶提供有意義的價值。

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.

因此，我們預計它們在未來會顯著增長，這將成為一種趨勢，不僅僅是在我們的平台上，我相信其他平台也會效仿，我猜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.

祝賀堅實的季度。

My question is related to the progress of our category expansion and development of key categories.

我的問題與我們品類拓展和重點品類發展的進展有關。

What's the key category actually driving our strong growth -- GMV growth this quarter?

真正推動我們強勁增長的關鍵類別是什麼——本季度的 GMV 增長？

And how's the development of our -- some signature categories such as agricultural products?

我們的一些標誌性類別（例如農產品）的發展如何？

How much they are now representing our total GMV?

他們現在代表了我們的總 GMV 多少？

And what's the strategy to further increase their strength in these categories down the road?

未來進一步增強他們在這些類別中的實力的策略是什麼？

Okay, thank you very much for your question.

好的，非常感謝您的提問。

Well first of all, I want to say that we don't really focus on categories, we focus on users.

首先，我想說我們並不真正關注類別，我們關注的是用戶。

We're trying very hard to match different kind of products to the users' needs.

我們正在努力將不同類型的產品與用戶的需求相匹配。

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.

只要我們的用戶想要這些產品，我們就會非常努力地將它們帶到平台上，並以盡可能低的價格提供它們。

Speaking of agricultural category, it is a special category.

說到農業品類，它是一個特殊的品類。

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.

這並不是因為我們的 GMV 增長依賴於此，而是因為我們在平台一開始就從農產品開始。

We don't -- we -- usually don't disclose GMV breakdown, but we are encouraged to see agriculture as an important part of our platform.

我們不 - 我們 - 通常不披露 GMV 細分，但我們鼓勵將農業視為我們平台的重要組成部分。

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.

正如我在股東信函和其他通訊中多次提到的那樣，與美國等其他國家相比，中國的農業部門格局不同。因此，我們需要採取非常不同的方法。

The supply of agricultural products is very scattered across China, and of smaller scale.

中國各地農產品供應非常分散，規模較小。

Though in aggregate, it's a very large industry involving hundreds of millions of people.

雖然總的來說，這是一個涉及數億人的非常大的行業。

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.

因此，我們需要量身定制該行業的物流體系、成長周期、營銷策略和分銷網絡，為農民帶來價值回報。

So in 2018, we handled RMB 65 billion worth of agricultural products selling them directly from farmers to consumers.

因此，2018 年，我們處理了 650 億元人民幣的農產品直接從農民手中銷售給消費者。

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.

今年，我們仍然看到這個細分市場的增長非常強勁，一二線城市用戶佔了 70%，在我們 6.18 活動期間幾乎佔了農產品訂單的 70%。

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.

因此，在 2019 年，我們繼續看到可持續增長的良好跑道，以及我們幫助提高行業效率的巨大潛力。

And on the supply side, we're working with both farmers and the local authorities to effective change.

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。

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.

我們與雲南省簽訂協議，共幫扶74個貧困縣，全面重塑經濟價值鏈。

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.

例如，為了幫助農民學習如何在拼多多上直接銷售，我們提供了營銷培訓課程，並利用預測的方法、水果模式和可能的交付時間表提供了人工智能驅動的農業建議。

Farmers are better enabled to plan their planting schedule making their production process more scientific, and reducing wastage.

農民能夠更好地規劃他們的種植時間表，使他們的生產過程更加科學，減少浪費。

We're also working with authorities and the agricultural universities to grow agricultural talent in this regard.

我們還與當局和農業大學合作，培養這方面的農業人才。

So we hope, and we do hope that what we learned in that Yunnan province can be transplanted to other provinces as well.

所以我們希望，也希望我們在雲南省學到的東西也可以移植到其他省份。

And I also mentioned, how we are leveraging the logistic technology to improve agricultural sector just now.

我還提到了，我們剛才是如何利用物流技術來改善農業部門的。

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.

因此，隨著時間的推移，這將使來自中國各地的更多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選擇。

We do all of this not only because it's a very good category, a very large market, it can grow our GMV.

我們做這一切不僅是因為它是一個非常好的品類，一個非常大的市場，它可以增加我們的 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.

更重要的是，我們將農業視為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[食物]，也影響到第一、第二層公民的日常生活和健康。城市。

So it is a very good category.

所以這是一個非常好的類別。

We both view it of very long-term investment value.

我們都認為它具有非常長期的投資價值。

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.

我們也認為這個品類是一個可以做很多創新的地方，也應該做很多創新，我們也覺得這個品類是我們應該承擔起自己的責任，做更多的社會公益。

Thank you, ladies and gentlemen.

謝謝你們，女士們，先生們。

Unfortunately, we have run out of time for any further questions.

不幸的是，我們已經沒有時間回答任何進一步的問題了。

I would now like to hand the conference back to these presenters.

我現在想把會議交還給這些演講者。

Please continue.

請繼續。

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

感謝大家收聽我們的電話，如果您有任何後續問題，IR 隨時可用。

Thank you.

謝謝你。

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

女士們，先生們，今天的會議到此結束。

Thank you for participating.

感謝您的參與。

You may now disconnect.

您現在可以斷開連接。