拼多多 (PDD) 2022 Q3 法說會逐字稿

Ladies and gentlemen, thank you for standing by. Welcome to PDD's Third Quarter 2022 Earnings Conference Call. (Operator Instructions)

女士們，先生們，謝謝你們的支持。歡迎來到拼多多 2022 年第三季度收益電話會議。 （操作員說明）

I must advise you that this conference call is being recorded today. I would now like to hand the conference over to your host today, Mr. Chen [Pang]. Sir, please go ahead.

我必須告訴你，今天正在錄製這個電話會議。我現在想把會議交給今天的主持人陳[龐]先生。先生，請繼續。

Thank you, operator. Hello, everyone, and thank you for joining us today. My name is Chen, and I will help host the earnings call. PDD earnings release was distributed earlier and is available on our website at investor.pddholdings.com as well as through GlobeNewswire services.

謝謝你，運營商。大家好，感謝您今天加入我們。我叫陳，我將協助主持財報電話會議。 PDD 的收益報告較早發布，可在我們的網站 investor.pddholdings.com 上以及通過 GlobeNewswire 服務獲取。

Before we begin, I would like to refer you to our safe harbor statement in earnings press release, which applies to this call as we will make certain forward-looking statements. Also, this call includes discussions of certain non-GAAP financial measures. So please refer to our earnings release, which contains a reconciliation of the non-GAAP measures to GAAP measures.

在我們開始之前，我想請您參考我們在收益新聞稿中的安全港聲明，該聲明適用於本次電話會議，因為我們將做出某些前瞻性聲明。此外，此次電話會議還討論了某些非 GAAP 財務措施。因此，請參閱我們的收益發布，其中包含非 GAAP 措施與 GAAP 措施的對賬。

Joining us today on the call are Chen Lei, our Chairman and Chief Executive Officer; Liu Jun, our VP of Finance. Lei will make some general remarks on our performance for the past quarter and our strategic focus. Jun will then take us through our financial results for the third quarter ended September 30, 2022.

今天與我們一起參加電話會議的有我們的董事長兼首席執行官陳磊；我們的財務副總裁劉軍。雷軍將就我們上個季度的業績和我們的戰略重點發表一些一般性評論。然後，Jun 將向我們介紹截至 2022 年 9 月 30 日的第三季度財務業績。

During the Q&A session, Lei will answer questions in Chinese and I will help translate. Please kindly note that all translations provided are for reference purposes only. In case of any discrepancy between the original remarks and the translated version, statements in the original language should prevail.

問答環節，雷會用中文回答問題，我會幫忙翻譯。請注意，所有提供的翻譯僅供參考。原文與譯文如有出入，以原文為準。

Now it is my pleasure to introduce our Chairman and Chief Executive Officer, Chen Lei. Lei please go ahead.

現在我很高興地介紹我們的董事長兼首席執行官陳磊。雷請繼續。

Thank you, Chen, and hello, everyone. Thank you all for joining our 3Q 2022 earnings call. Let me start by giving a brief overview of our third quarter results.

謝謝陳老師，大家好。感謝大家參加我們的 2022 年第三季度財報電話會議。首先讓我簡要概述一下我們第三季度的業績。

Our total revenue for this quarter was RMB 35.5 billion. This represents a year-on-year increase of 65%. Over the past quarter, we worked closely with our merchant partners to serve our customers. We continue to provide our users with an enjoyable and affordable shopping experience to meet their growing demand for high-quality and value-for-money product.

本季度我們的總收入為人民幣 355 億元。這意味著同比增長 65%。在過去的一個季度中，我們與商家合作夥伴密切合作，為我們的客戶提供服務。我們繼續為我們的用戶提供愉快且負擔得起的購物體驗，以滿足他們對高品質和物有所值產品不斷增長的需求。

During the past few months, many product categories such as agriculture, consumer electronics, beauty and cosmetics, they all enjoyed positive consumer feedback. Many brands joined Pinduduo and extended our consumers their best deals. We are happy to keep creating value for our consumers.

在過去的幾個月裡，許多產品類別，如農業、消費電子、美容和化妝品，都獲得了積極的消費者反饋。許多品牌加入了拼多多，為我們的消費者提供了最優惠的價格。我們很高興不斷為我們的消費者創造價值。

But meanwhile, we still have many areas to improve and the current industry competition remains intense. We need to continue to deepen our value creation, increase our R&D investment to help further improve the supply chain efficiency, support upgrade of the price side to facilitate agricultural digital inclusion.

但與此同時，我們還有很多需要改進的地方，當前行業競爭依然激烈。我們要繼續深化價值創造，加大研發投入，助力進一步提升供應鏈效率，支持價格端升級，助力農業數字普惠。

We celebrated our seventh anniversary last month, and we are extremely grateful for the support and [chart] from our consumers, merchants, farmers and society, and we will continue to uphold our core values of putting people first, benefiting all and being more open, so that we can create lasting value for all the stakeholders.

我們上個月慶祝了七週年，非常感謝消費者、商家、農民和社會的支持和[圖表]，我們將繼續秉承以人為本、普惠大眾、更加開放的核心價值觀，以便我們能夠為所有利益相關者創造持久的價值。

Technology is at the heart of our value creation. From the very beginning, we committed to introducing technology to improve the efficiency of supply chain and create value to all the parties through digitalization.

技術是我們創造價值的核心。從一開始，我們就致力於引入技術來提高供應鏈的效率，通過數字化為各方創造價值。

In the past year or so, we increased our investments in technology and focus on driving innovation through research and development. We have built a young, energetic, innovative team with strong technology background, and we are encouraged to see that our investment in technology is creating positive impact to society.

在過去一年多的時間裡，我們加大了對技術的投入，注重通過研發驅動創新。我們打造了一支年輕、充滿活力、富有創新精神、技術背景雄厚的團隊，看到我們在技術上的投入正在為社會帶來積極影響，我們倍受鼓舞。

In agriculture, we keep promoting our holistic approach to digitalize the agricultural sector, so that more and more people can benefit from advances in science and technology. Our approach at agriculture is a holistic way of creating inclusive growth. By leveraging the resources of Pinduoduo, we hope that more farmers will adopt agricultural technology to improve their productivity and put their farming practices in a more sustainable footing.

在農業方面，我們不斷推進農業數字化的整體方法，讓越來越多的人能夠從科技進步中受益。我們在農業方面的方法是創造包容性增長的整體方式。通過利用拼多多的資源，我們希望更多的農民採用農業技術來提高他們的生產力，並使他們的耕作方式更加可持續。

The Harvest Festival last quarter is a good example of this approach. In September, Pinduduo launched a dedicated [unit] availing for the platform to support annual harvest [bestow] as its exclusive e-commerce platform partner. Last 3 months, the harvest [formation] features over 0.5 million types of agricultural products across the country.

上個季度的豐收節就是這種方法的一個很好的例子。 9月，拼多多作為獨家電商平台合作夥伴，推出了平台專屬【單元】支持年度收穫【贈】。近3個月，全國50餘種農產品豐收[陣]。

We [ride] to the market for farmers by bringing them into digital economy. The millions of consumers also make it more feasible to implement agricultural technology. Farmers are more willing to plant improved crops if they are confident that consumers will buy them.

我們通過將農民帶入數字經濟來 [騎] 到市場。數以百萬計的消費者也使實施農業技術變得更加可行。如果農民相信消費者會購買，他們就更願意種植改良作物。

During the Harvest Festival, we worked with CCTV and several professors from the Chinese Academy of Agricultural Sciences and the China Agricultural University to promote agricultural technology. For example, we introduced a new variety of sweet potatoes that are less prone to disease, developed by research institutes.

豐收節期間，我們與中央電視台和中國農業科學院、中國農業大學的幾位教授合作，推廣農業技術。例如，我們引進了一種由研究機構開發的不易生病的紅薯新品種。

The Pinduoduo platform held this new sweet potato to reach more consumers naturally. And this crop is now grown in many parts of China and its available year [up]. Its success has helped many farmers to prosper. This is a good example of how market demand can bring more [science] out of the lab and into the field.

拼多多平台拿著這個新紅薯，自然而然地觸達了更多的消費者。而這種作物現在在中國的許多地方都有種植，而且它的可用年份[up]。它的成功幫助許多農民發家致富。這是市場需求如何將更多[科學]帶出實驗室並進入現場的一個很好的例子。

We are committed to using the Pinduoduo platform for consumers to discover new agricultural [charters] so that they can enjoy healthier and more nutritious food.

我們致力於利用拼多多平台，讓消費者發現新的農業[章程]，讓他們享受更健康、更有營養的食物。

In Harvest Festival, we also showcased a series of new and improved wheat varieties cultivated by China Agricultural University, with the support of our 10 Billion Agriculture Initiative. These wheat varieties have higher yield, higher quality and are more resistant to disease. In addition, we continue to support various events to promote the adoption of agricultural technology.

在豐收節上，我們還展示了中國農業大學在百億農業計劃支持下培育的一系列小麥新品種和改良品種。這些小麥品種具有更高的產量、更高的品質和更強的抗病能力。此外，我們繼續支持各種活動，以促進農業技術的採用。

Our flagship Smart Agriculture Competition is currently underway in Shanghai, and this is an annual precision farming contest and [gather] researchers to develop practical technologies. We are partnering with China Agricultural University and Duo Duo University for this competition with technical support from FAO China and the Shanghai Academy of Agricultural Sciences.

我們的旗艦智能農業大賽目前正在上海舉行，這是一年一度的精準農業大賽，[聚集]研究人員開發實用技術。我們與中國農業大學和多多大學合作舉辦本次比賽，糧農組織中國和上海農業科學院提供技術支持。

The theme of the competition this year is a vertical farming. Participation teams will compete to produce [lettuce] in shipping containers using lightning, crop modeling algorithms to [contour] input variables.

今年比賽的主題是垂直農業。參與團隊將競爭使用閃電、作物建模算法來[輪廓]輸入變量，在運輸集裝箱中生產[生菜]。

Several participating teams from the first 2 additions have already implemented their technology in a working fund as well as on large-scale pilot to scale a solution. We hope that this initiative can inspire more young researchers bring more research findings to the market and support the development of smart agriculture.

前 2 個新增項目中的幾個參與團隊已經在工作基金和大規模試點中實施了他們的技術，以擴展解決方案。我們希望這一倡議能夠激勵更多的年輕研究人員將更多的研究成果推向市場，支持智慧農業的發展。

In the same way, we are improving agricultural digitization. We are helping to [upgrade rural] economy enterprises and manufacturers by connecting them directly with the end consumers.

同樣，我們也在推進農業數字化。我們通過直接與最終消費者建立聯繫，幫助 [升級農村] 經濟企業和製造商。

Our pioneer [3P] purchase model can quickly and directly connect the [market] supply to gathering consumer demand. We have leveraged digital technology to shorten the product development cycle and help manufacturers create product that closely manage market needs. This can help manufacturers to build their brands.

我們開創性的 [3P] 購買模式可以快速直接地將 [市場] 供應與收集消費者需求聯繫起來。我們利用數字技術縮短了產品開發週期，幫助製造商創造出能夠密切管理市場需求的產品。這可以幫助製造商建立自己的品牌。

As in the past 7 years, we have helped incubate nearly 1,000 manufacturing brands through technology. And since the beginning of this year, we have launched several activities to support the manufacturing industry.

7年來，我們通過科技幫助孵化了近1000個製造品牌。今年以來，我們開展了多項支持製造業的活動。

For example, this year, we launched a new Craftsman campaign to help local craftsmen and the manufacturers by a bigger market for their products through e-commerce, and we have allocated dedicated resources to support high-quality local product and help small enterprises upgrade their branding.

例如，今年我們推出了新的工匠活動，幫助當地工匠和製造商通過電子商務為他們的產品提供更大的市場，我們分配了專門的資源來支持優質的本地產品，幫助小企業升級他們的產品。品牌推廣。

The new Craftsman program is now in many regions across the country, helping local manufacturers to build their brand. We hope to use the Pinduoduo platform to have more of these undiscovered manufacturers reach more potential buyers. The increased demand exposure also benefit the local communities through more income and more job opportunities.

新的 Craftsman 計劃現已在全國許多地區開展，幫助當地製造商打造自己的品牌。我們希望通過拼多多這個平台，讓更多這些未被發現的廠商接觸到更多的潛在買家。增加的需求敞口也通過增加收入和更多就業機會使當地社區受益。

As we enter our 8th year of operation, we remain passionate and excited about the future. We are a young company with a team full of drive and energy, and we will constantly explore areas to create positive value through technology. And with that, Jun will take us through the financials.

當我們進入運營的第 8 個年頭時，我們仍然對未來充滿熱情和興奮。我們是一家年輕的公司，擁有一支充滿幹勁和活力的團隊，我們將不斷探索通過技術創造積極價值的領域。有了這個，Jun 將帶我們了解財務狀況。

Thank you, Lei. Hello, everyone. I will go through our performance in the quarter ended September 30, 2022. In terms of P&L, our total revenues in the quarter were RMB 35.5 billion, up 65.1% from RMB 21.5 billion in the same quarter of 2021. This was mainly driven by an increase in revenues from online marketing services and transaction services.

謝謝你，雷。大家好。我將回顧一下我們截至 2022 年 9 月 30 日的季度業績。就損益而言，我們本季度的總收入為 355 億元人民幣，比 2021 年同期的 215 億元人民幣增長 65.1%。這主要是由於在線營銷服務和交易服務的收入增加。

Revenues from online marketing services and others were RMB 28.4 billion this quarter, up 58.4% compared with the same period of 2021. This was primarily due to an increase in merchant activities in Q3. Our transaction services revenue this quarter were RMB 7 billion, up 102% versus the same period of 2021.

本季度網絡營銷服務及其他收入為人民幣284億元，較2021年同期增長58.4%，這主要是由於第三季度商家活動增加所致。本季度我們的交易服務收入為人民幣 70 億元，比 2021 年同期增長 102%。

Moving on to cost and expenses. Our total cost of revenues increased 13% from RMB 6.6 billion in Q3 2021 to RMB 7.4 billion this quarter. Total operating expenses this quarter were RMB 17.6 billion versus RMB 12.8 billion in the same quarter of 2021. Our investment in certain projects, including a few agriculture-related projects, which affected in Q3.

繼續成本和費用。我們的總收入成本從 2021 年第三季度的 66 億元人民幣增長 13% 至本季度的 74 億元人民幣。本季度總運營支出為人民幣 176 億元，而 2021 年同期為人民幣 128 億元。我們對某些項目的投資，包括一些與農業相關的項目，在第三季度受到影響。

As such, our total operating expenses as a percentage of our total revenues have declined from 59.6% in Q3 2021 to 49.7% in this quarter.

因此，我們的總運營費用佔總收入的百分比已從 2021 年第三季度的 59.6% 下降至本季度的 49.7%。

Looking into specific expense items, our non-GAAP sales and marketing expenses this quarter were RMB 13.4 billion, up 39% versus the same quarter of 2021. On a non-GAAP basis, our sales and marketing expenses as a percentage of our revenue this quarter was 37.9% compared with 44.9% for the same quarter in 2021.

從具體費用項目來看，本季度我們的非美國通用會計準則銷售和營銷費用為人民幣 134 億元，比 2021 年同期增長 39%。按非美國通用會計準則計算，我們的銷售和營銷費用佔本季度收入的百分比本季度為 37.9%，而 2021 年同期為 44.9%。

Our non-GAAP general and administrative expenses were RMB 226.3 million versus RMB 178.1 million in the same quarter of 2021. Our non-GAAP research and development expenses were RMB 2.1 billion, an increase of 15% from RMB 1.9 billion in the same quarter of 2021. The increase was primarily due to an increase in headcount and the requirement of more experienced R&D personnel.

我們的非美國通用會計準則一般和管理費用為人民幣 2.263 億元，而 2021 年同期為人民幣 1.781 億元。我們的非美國通用會計準則研發費用為人民幣 21 億元，比 2021 年同期的人民幣 19 億元增長 15% 2021. 增長主要是由於員工人數的增加和對更有經驗的研發人員的需求。

We're committed to growing our R&D capabilities, and we step up our spending to drive innovation on our platform, so as to [battle] evolving consumer [needs], a later [foundation] for sustainable growth.

我們致力於提高我們的研發能力，並加大支出以推動我們平台上的創新，從而 [應對] 不斷變化的消費者 [需求]，為以後的可持續增長奠定 [基礎]。

In the area of agriculture, we will continue to deepen our investment in agritech and promote its adoption. Technology is also key to increasing supply chain efficiency and helping facilitate the development of manufacturing industry.

在農業領域，我們將繼續深化對農業科技的投入和推廣。技術也是提高供應鏈效率和幫助促進製造業發展的關鍵。

Operating profit for the quarter was RMB 10.4 billion on a GAAP basis compared with operating profit of RMB 2.1 billion in the same quarter of 2021. Non-GAAP operating profit was RMB 12.3 billion, versus RMB 3.3 billion in the same quarter of 2021. Net income attributable to ordinary shareholders was RMB 10.6 billion, compared with RMB 1.6 billion in the same quarter of 2021.

根據美國通用會計準則，本季度營業利潤為人民幣 104 億元，而 2021 年同期營業利潤為人民幣 21 億元。非美國通用會計準則營業利潤為人民幣 123 億元，而 2021 年同期為人民幣 33 億元。淨歸屬於普通股股東的收益為人民幣 106 億元，而 2021 年同期為人民幣 16 億元。

Base earnings per ADS was RMB 8.38 and diluted earnings per ADS was RMB 7.34 versus basic earnings per ADS of RMB 1.31 and dilute earnings per ADS of RMB 1.15 in the same quarter of 2021. Non-GAAP net income attributable to ordinary shareholders was RMB 12.4 billion compared with RMB 3.1 billion in the same quarter last year. Non-GAAP diluted earnings per ADS was RMB 8.62 versus RMB 2.18 in the second quarter of 2021.

每份 ADS 基本收益為 8.38 元人民幣，每份 ADS 稀釋收益為 7.34 元人民幣，而 2021 年同一季度每份 ADS 基本收益為 1.31 元人民幣，每份 ADS 稀釋收益為 1.15 元人民幣。歸屬於普通股股東的非美國通用會計準則淨收益為 12.4 元人民幣億元，而去年同期為 31 億元人民幣。非美國通用會計準則每股 ADS 攤薄收益為 8.62 元人民幣，而 2021 年第二季度為 2.18 元人民幣。

In summary, we think that current level of profitability in Q3 is temporary and unlikely to maintain. On the one hand, the reinvestment in certain projects were factored in the last quarter. On the other hand, we continue to see good user engagement, which contributed to revenue growth. This shows that our financial and business cycles are not always in sync.

綜上所述，我們認為目前第三季度的盈利水平是暫時的，不太可能維持。一方面，某些項目的再投資在上個季度被考慮在內。另一方面，我們繼續看到良好的用戶參與度，這有助於收入增長。這表明我們的金融和商業周期並不總是同步的。

We plan to increase our investment to further drive innovations on our platform and strengthen our core capabilities. As such, we think it's unlikely that profit level of the past quarter can be maintained. That completes the profit and loss statement for the third quarter 2022.

我們計劃增加投資以進一步推動我們平台的創新並增強我們的核心能力。因此，我們認為維持上個季度的利潤水平的可能性不大。這就完成了 2022 年第三季度的損益表。

Now let me move on to cash flow. Our net cash flow generated from operating activities was RMB 11.7 billion compared with RMB 8.7 billion in the same quarter of 2021, primarily due to the increase in net income and changes in working capital. As of September 30, 2022, the company had RMB 137.8 billion in cash, cash equivalents and short-term investments. Thank you. This concludes my prepared remarks.

現在讓我繼續談談現金流。我們經營活動產生的現金流量淨額為人民幣 117 億元，而 2021 年同期為人民幣 87 億元，這主要是由於淨收入的增加和營運資金的變化。截至2022年9月30日，公司持有現金、現金等價物及短期投資1378億元。謝謝你。我準備好的發言到此結束。

Thank you, Jun. Next, we will move on to the Q&A session. For today's Q&A session, Lei and Jun will take questions from analysts on the line. We could take a maximum of two questions per analyst. Lei will answer questions in Chinese, and I will help translate Lei's remarks for ease of reference. Operator, we may now take questions on the line.

謝謝Jun，接下來我們進入問答環節。今天的問答環節，雷軍和雷軍將在線回答分析師的提問。每個分析師最多可以回答兩個問題。雷將用中文回答問題，我會幫忙翻譯雷的發言，以便於參考。接線員，我們現在可以在線提問。

(Operator Instructions) The first question comes from the line of Joyce Ju from Bank of America.

（操作員說明）第一個問題來自美國銀行的Joyce Ju。

I have two questions. My first question is your online marketing services revenue this quarter delivered a faster growth rate than last quarter. What's the reason for this reaccelerated growth in the third quarter? How should we understand the growth rate momentum in the future?

我有兩個問題。我的第一個問題是本季度您的在線營銷服務收入的增長率高於上一季度。三季度再次加速增長的原因是什麼？未來的增速動能應該如何理解？

And the second question is, could management share the latest update on your international initiatives. Could you share your views or any takeaways at this stage? Does the current level of development meet the management's original expectation? (foreign language).

第二個問題是，管理層能否分享您的國際計劃的最新進展。您能否在此階段分享您的觀點或任何收穫？目前的發展水平是否符合管理層最初的預期？ （外語）。

(foreign language).

（外語）。

[Interpreted] Joyce. So let me take your two questions. With regards to your first question on growth, during the third quarter, we worked closely with our merchants to create value for our consumers. And we keep bringing our consumers more savings, more sound shopping experience in the Pinduoduo platform. And we adopted different methods, including coupons and also promotional events, to better serve our consumers.

[翻譯] 喬伊斯。那麼讓我回答你的兩個問題。關於您關於增長的第一個問題，在第三季度，我們與商家密切合作，為我們的消費者創造價值。我們不斷為我們的消費者在拼多多平台上帶來更多的節省、更好的購物體驗。我們採用了不同的方法，包括優惠券和促銷活動，以更好地為我們的消費者服務。

(foreign language).

（外語）。

[Interpreted] And at the same time, we saw that our consumers demand for high-quality products are growing. We actively make efforts to satisfy their demand. And this year, more and more brands have started to cooperate with us. They provide more choices for consumers and categories such as agricultural produce, electronics, home appliances, as well as cosmetics.

[解讀]同時，我們也看到我們的消費者對高品質產品的需求越來越大。我們積極努力滿足他們的需求。而今年，越來越多的品牌開始與我們合作。它們為消費者提供了更多選擇，品類包括農產品、電子產品、家電、化妝品等。

These categories have received positive consumer feedbacks. And we are grateful towards the trust our consumers place in us.

這些類別收到了積極的消費者反饋。我們感謝消費者對我們的信任。

(foreign language).

（外語）。

[Interpreted] But in the meanwhile, we should see that industry competition is still intense and also consumer preferences and demand become more and more diversified. So we still have many areas to improve. And the impact of our overall investment activity, in fact, is not beneficial to our long-term competitiveness.

【解讀】但與此同時，我們也應該看到，行業競爭依然激烈，消費者的喜好和需求也越來越多元化。所以我們還有很多地方需要改進。事實上，我們整體投資活動的影響不利於我們的長期競爭力。

So in the future, we will continue to step up investments and we will invest to better understand our consumers needs and serve them better. And we will also need to continue to immerse ourselves deeply in the real economy and invest in technology R&D to help improve the efficiency of the agriculture as well as the manufacturing sector. These would support our high-quality development over the long run.

所以在未來，我們會繼續加大投資，我們會投資更好地了解我們消費者的需求，更好地服務他們。我們還需要繼續深入實體經濟，加大技術研發投入，幫助提高農業和製造業的效率。這些都將支撐我們高質量發展的長遠發展。

(foreign language).

（外語）。

[Interpreted] And as for your second question for our international business, in our last quarter's earnings conference call, we'll share with you the international business that we are working on. And I believe that many of you may have noticed that we rolled out our international marketplace in September, and it has just been a few months since we started this business.

[解讀]關於您關於我們國際業務的第二個問題，在我們上一季度的財報電話會議上，我們將與您分享我們正在開展的國際業務。我相信你們中的許多人可能已經註意到我們在 9 月份推出了我們的國際市場，而我們開展這項業務才幾個月。

(foreign language).

（外語）。

[Interpreted] And for our team, the international business is a new area to tour, and we will start from the fundamental needs of consumers and apply the operations and supply chain know-how and experiences that we have gained over the years and strive to create our own unique value.

[解讀]而對於我們的團隊來說，國際業務是一個新的探索領域，我們將從消費者的根本需求出發，運用我們多年來積累的運營和供應鏈知識和經驗，努力創造我們自己獨特的價值。

(foreign language).

（外語）。

[Interpreted] And also, we fully respect that there are many differences across different markets. And we also understand the need to constantly experiment, and we expect that the process will be full of challenges. So we will be patient and work together with our partners to create long-term value for consumers.

[解釋]而且，我們完全尊重不同市場之間存在的許多差異。並且我們也理解不斷試驗的必要性，我們預計這個過程將充滿挑戰。所以我們會耐心等待，與我們的合作夥伴一起努力，為消費者創造長期價值。

(foreign language).

（外語）。

[Interpreted] And currently, we are still in the early stage of exploration. And we have many areas to improve, in terms of the services that we provide. We need to learn and also optimize. The process itself will take time. But I'm pretty certain that the experience that we gain along the way will be very valuable for our company and also for our team. Thank you.

【解讀】而目前，我們還處於早期的探索階段。就我們提供的服務而言，我們還有許多需要改進的地方。我們需要學習，也需要優化。這個過程本身需要時間。但我非常肯定，我們在此過程中獲得的經驗對我們公司和我們的團隊都非常有價值。謝謝你。

So operator, we are ready to move on to the next question.

那麼接線員，我們準備好進入下一個問題。

The next question is from the line of Thomas Chong from Jefferies.

下一個問題來自 Jefferies 的 Thomas Chong。

(foreign language) My first question is related to the main drivers behind this quarter's revenue growth. If we further break down the revenue to GMV and take rates, can you share more about the trend in these two factors? Also, have you changed the take rate policy for merchants on your platform? And then I have another quick follow-up.

（外語） 我的第一個問題與本季度收入增長背後的主要驅動力有關。如果我們進一步將收入分解為 GMV 並採用比率，您能否分享更多關於這兩個因素的趨勢？另外，您是否更改了平台上商家的收費政策？然後我有另一個快速跟進。

(foreign language) And my second question is also related to the first one. Apart from take rate policies, I'm also wondering for merchants and the industry upstream, can you also help to share if you have support measures and policies? Could management share more about your progress and the plan in this area? Thank you.

（外語）我的第二個問題也與第一個問題有關。除了採取利率政策，我也想問商家和產業上游，有沒有支持的措施和政策，能不能也幫忙分享一下？管理層能否分享更多關於你們在這方面的進展和計劃？謝謝你。

(foreign language).

（外語）。

[Interpreted] Thomas. So let me address your second question around our support for the manufacturing sector and the supply chain first.

[解釋]托馬斯。因此，讓我先回答你關於我們對製造業和供應鏈的支持的第二個問題。

From the beginning, we have been leveraging our technical background to help improve the efficiency in the manufacturing sector and the team purchase model that we pioneered in aggregate order and connect the demand side and the supply side directly.

從一開始，我們就利用我們的技術背景來幫助提高製造領域的效率，以及我們在聚合訂單中首創的團購模式，直接連接需求方和供應方。

And this helps manufacturers reduce the intermediary layers, help them directly reach out to consumers. And in the process, it helps the brand create their own brands for manufacturers.

這有助於製造商減少中間層，幫助他們直接接觸消費者。並且在這個過程中，它幫助品牌為製造商創建自己的品牌。

So over the past 7 years, Pinduoduo has helped to build up nearly 1,000 brands through technology, and we are growing up with many manufacturers together.

所以在過去的7年裡，拼多多通過技術幫助建立了近1000個品牌，我們和很多廠商一起成長。

(foreign language).

（外語）。

[Interpreted] In addition, we also provide one-stop digital solution covering the entire value chain to our manufacturing partners in order to help traditional manufacturers and factories to go through digital transformation. And we cooperate with these manufacturers, product designs and adjustments. This significantly lowers the cost and reduces the uncertainty during the R&D and also production processes.

[解讀]此外，我們還為製造合作夥伴提供覆蓋全價值鏈的一站式數字化解決方案，幫助傳統製造商和工廠進行數字化轉型。我們與這些製造商合作，進行產品設計和調整。這顯著降低了成本並減少了研發和生產過程中的不確定性。

(foreign language).

（外語）。

[Interpreted] And all of these that we have done also help consumers get a quality of products with savings, and we can generate value for consumers in the process. This, in turn, can create a virtuous cycle amongst consumers, our manufacturing partners and also the Pinduoduo platform.

【解讀】而我們所做的這一切，也都是幫助消費者用省錢的方式得到優質的產品，我們可以在這個過程中為消費者創造價值。這反過來又可以在消費者、我們的製造合作夥伴以及拼多多平台之間創造良性循環。

(foreign language).

（外語）。

[Interpreted] And this year, we have introduced several dedicated initiatives to support manufacturers with technology. This includes many industries such as consumer appliances, apparel, sports, cosmetics, home care as well as our furniture. And we will continue to invest in this area to improve the efficiency of the supply chain. Thank you.

[解讀]今年，我們推出了幾項專門的舉措，以技術支持製造商。這包括許多行業，如消費電器、服裝、運動、化妝品、家庭護理以及我們的家具。並且我們將繼續在這方面進行投資，以提高供應鏈的效率。謝謝你。

Thanks, Thomas. I will take your first question about the GMV. In the third quarter, we worked closely with our merchants to serve our consumers and improve their shopping experience. As the consumer activities and engagement grow, we think the merchants are actually coming to our platform for growth and opportunities.

謝謝，托馬斯。我將回答您關於 GMV 的第一個問題。第三季度，我們與商家緊密合作，為消費者提供服務並改善他們的購物體驗。隨著消費者活動和參與度的增長，我們認為商家實際上是為了增長和機會來到我們的平台。

And for financial metrics such as GMV and revenue, they are mainly the reflection of the value we create. So for us, the most important thing is to constantly increase value creation. We will continue to invest to much engagement. And for the build up our technology capabilities, this will lay the foundation for our long-term development.

而對於 GMV 和收入等財務指標，它們主要是我們創造的價值的反映。所以對我們來說，最重要的是不斷增加價值創造。我們將繼續投資於更多的參與。而對於建立我們的技術能力，這將為我們的長期發展奠定基礎。

Operator, we can move to the next analyst in line.

接線員，我們可以轉到下一位分析師。

The next questions come from Ellie Jiang from Macquarie.

接下來的問題來自麥格理的Ellie Jiang。

(foreign language) Let me translate my questions.

（外語）讓我翻譯一下我的問題。

First, could management talk about the latest industry trends, including what we saw in fourth quarter, quarter-to-date, have we -- can you talk about our performance during 11 promotion? What are the key industry themes have we seen for the Double 11 itself?

首先，管理層能否談談最新的行業趨勢，包括我們在第四季度、本季度至今看到的情況，我們能不能談談我們在 11 促銷期間的表現？雙十一本身，我們看到了哪些關鍵的行業主題？

And then second question is on the overseas. Could management share with us the financial impact for this initiative? What are the main financial statement-like items, does it impact? Could you talk -- could you help us quantify the impact for the third quarter? And what level of investment do you expect to make, going forward?

然後第二個問題是關於海外的。管理層能否與我們分享此計劃的財務影響？財務報表類項目主要有哪些，有影響嗎？你能談談——你能幫我們量化第三季度的影響嗎？您希望未來的投資水平是多少？

(foreign language).

（外語）。

[Interpreted] Ellie. So let me take your question on industry transfers. So for this question, we always start from consumers' fundamental need. And we hope to create value for consumers each single day throughout the year. And I think it is the core driver for the industry and also for ourselves. And we also fully understand that to improve consumer experience and deepen their trust in us, it takes time, and it is a gradual process.

[翻譯]艾莉。那麼讓我來回答你關於行業轉移的問題。所以對於這個問題，我們總是從消費者的根本需求出發。我們希望全年每一天都為消費者創造價值。我認為這是行業和我們自己的核心驅動力。而我們也深知，提升消費者體驗，加深他們對我們的信任，是需要時間的，是一個循序漸進的過程。

And for shopping festival and promotions, they are just one of the many ways to serve our consumers well.

對於購物節和促銷活動，它們只是為我們的消費者提供良好服務的眾多方式之一。

(foreign language).

（外語）。

[Interpreted] And we hope that consumers can get more savings and more fun from shopping on Pinduoduo. So when we plan shopping festivals and events, we remain consumer-centric, and we use simple rules to provide consumers with an enjoyable shopping experience.

【解讀】我們希望消費者在拼多多購物時能得到更多的節省和更多的樂趣。所以我們在策劃購物節和活動時，始終以消費者為中心，用簡單的規則為消費者提供愉快的購物體驗。

This year, we have cooperated with many brands as well as merchants to bring more quality products to consumers in order to satisfy their diversified needs across different categories and different consumption scenarios.

今年，我們與眾多品牌和商家合作，為消費者帶來更多優質產品，滿足消費者跨品類、跨消費場景的多元化需求。

(foreign language).

（外語）。

[Interpreted] And at the same time, if we look at the industry, we do see the competition remains intense and we need to invest patiently in the supply side. And we need to step up our investment in technology and innovation to further improve the overall supply chain efficiency.

[解讀]同時，如果我們看這個行業，我們確實看到競爭仍然很激烈，我們需要在供給端耐心地投資。我們需要加大對技術和創新的投資，以進一步提高整體供應鏈效率。

We need to support the development of the agriculture sector and also the manufacturing sector. These would essentially enable us to better serve our consumers' increasing demand for quality products. Thank you.

我們要支持農業發展，也要支持製造業發展。這些將使我們能夠更好地滿足消費者對優質產品日益增長的需求。謝謝你。

Thanks, Ellie. I will take your question about the financial statements on our international initiatives. Well, first of all, our international business (inaudible) a very early stage. It is still going through constant trials. Whereas we focus on how to create unique value, we believe that our financial metrics are the natural results from the value that we create.

謝謝，艾莉。我會回答你關於我們國際計劃的財務報表的問題。好吧，首先，我們的國際業務（聽不清）還處於非常早期的階段。它仍在經歷不斷的考驗。雖然我們專注於如何創造獨特的價值，但我們相信我們的財務指標是我們創造的價值的自然結果。

And the international business still very early, as I just mentioned. So it's current impact on our financial numbers is small. And as with any other part of the business, we carefully evaluate the ROI of every investment.

正如我剛才提到的，國際業務還很早。所以它目前對我們財務數字的影響很小。與業務的任何其他部分一樣，我們仔細評估每項投資的投資回報率。

Operator, we can move on to the next question.

接線員，我們可以繼續下一個問題。

The next question comes from Kenneth Fong from Credit Suisse.

下一個問題來自瑞士信貸的Kenneth Fong。

(foreign language) The management shared about the latest tours and developments in agriculture. Are there any cases or projects that you're putting resources into? What are the latest financial impacts on your financial statement? And also for your 10 Billion Agricultural Initiative, is there any update to share?

（外語） 管理層分享了最新的旅遊和農業發展。有沒有你正在投入資源的案例或項目？對您的財務報表的最新財務影響是什麼？還有你的百億農業計劃，有什麼更新可以分享嗎？

And my second question is about profitability. We have delivered profitability for 6 quarters in a row. We have also noticed that many of your peers have started to focus more on cost control and efficiency improvement. So does your profitability for the past 3 quarters means we have started to pursue a similar strategy? And should we expect a similar level of profitability to continue over the [next] quarter?

我的第二個問題是關於盈利能力。我們已經連續 6 個季度實現盈利。我們也注意到很多同行開始更加註重成本控制和效率提升。那麼您過去 3 個季度的盈利是否意味著我們已經開始實施類似的戰略？我們是否應該期望在 [下一個] 季度繼續保持類似的盈利水平？

(foreign language).

（外語）。

[Interpreted] Kenneth. So let me address your question on agriculture first. So we have shared with you before that agriculture is our long-term strategy. We hope to promote agricultural development through technology. And for many of our efforts, we are still in the early stage of our agricultural strategy, but we already see a lot of areas to create value. And we are also very happy to take this chance to introduce more about our latest developments in this area.

[翻譯]肯尼斯。所以讓我先回答你關於農業的問題。所以我們之前跟大家分享過，農業是我們的長期戰略。我們希望通過科技促進農業發展。對於我們的許多努力，我們仍處於農業戰略的早期階段，但我們已經看到了很多可以創造價值的領域。我們也很高興藉此機會介紹更多關於我們在這方面的最新進展。

(foreign language).

（外語）。

[Interpreted] First of all, [wheat's] our technical background. We help improve the distribution efficiency of agriculture produce. During the third quarter, in our dedicated promotional events such as the Harvest Festival and Agricultural Festival, we cover thousands of production regions and help farmers broaden their market access. This also helps our consumers enjoy fresher and high-quality agriculture produce within a shorter amount of time.

【解讀】首先，【小麥的】我們的技術背景。我們幫助提高農產品的流通效率。三季度，我們通過豐收節、農業節等特色促銷活動，覆蓋數千個產區，幫助農戶拓寬市場准入渠道。這也有助於我們的消費者在更短的時間內享受到更新鮮、更優質的農產品。

(foreign language).

（外語）。

[Interpreted] On top of that, sales volume can also help commercialize agritech solutions and support research efforts and improve the -- how commercialization happens. So for example, in our Harvest Festival event, we introduced many agricultural products created with the help of [agritech].

[解釋] 最重要的是，銷量還可以幫助農業技術解決方案商業化，支持研究工作並改善商業化的發生方式。因此，例如，在我們的豐收節活動中，我們介紹了許多在 [agritech] 的幫助下創造的農產品。

And with resources that we devote into agriculture, we can help these products roll out to the market quickly and help turn more agritech breakthroughs and innovations into consumer products.

借助我們投入農業的資源，我們可以幫助這些產品快速推向市場，並幫助將更多的農業技術突破和創新轉化為消費品。

As for our 10 Billion Agricultural Initiative, we recently introduced a few new [wheat] varieties developed by China Agricultural University with support from this initiative.

至於我們的百億農業計劃，我們最近在這個計劃的支持下引進了中國農業大學開發的幾個[小麥]新品種。

(foreign language).

（外語）。

[Interpreted] In agriculture, we will continue to remain down to earth and make long-term patient investment as well as bring more agritech results to the market. Going forward, we will continue to share updates with you in the future. Thank you.

【解讀】在農業方面，我們將繼續腳踏實地，長期耐心投入，為市場帶來更多的農業科技成果。展望未來，我們將繼續與您分享更新。謝謝你。

I will take your second question about our profitability. Well, first of all, I would like to point out the high profitability level for Q3 is unlikely to continue. Over the past quarter, some of our projects, such as a few agriculture-related projects, as I just mentioned in my remarks, were impacted in terms of project timeline and investment pace.

我會回答你關於我們盈利能力的第二個問題。好吧，首先，我想指出第三季度的高盈利水平不太可能持續下去。在過去的一個季度裡，我們的一些項目，比如我剛才在發言中提到的一些與農業相關的項目，在項目時間表和投資速度方面受到了影響。

So the expenses line items on our quarterly results were affected. And on the other hand, our quarterly revenue increased as a result of increased merchant activities.

因此，我們季度業績中的費用項目受到了影響。另一方面，由於商家活動增加，我們的季度收入有所增加。

Therefore, profitability is partially due to such time lapse. And this shows that our business cycle and financial reporting cycle are not always in sync. We think such profitability level may not be sustainable. In addition, we are still in the development stage and profitability is not our current priority.

因此，盈利能力部分歸因於這種時間流逝。這表明我們的商業周期和財務報告週期並不總是同步的。我們認為這樣的盈利水平可能無法持續。此外，我們仍處於發展階段，盈利不是我們目前的首要任務。

We will continue to step up investments, especially to support agriculture and manufacturing industry through technology. And this may cause fluctuations in our future profitability. And the Q3 level will not continue. Thank you.

我們將繼續加大投資力度，特別是通過科技支持農業和製造業。這可能會導致我們未來盈利能力的波動。而Q3級別不會繼續。謝謝你。

Okay. Operator, it's about time. And thank you, everybody, for joining us today on the conference call. If you have any further questions, please feel free to reach out to the IR team. Thank you all, and have a great day.

好的。接線員，時間到了。感謝大家今天加入我們的電話會議。如果您有任何其他問題，請隨時聯繫 IR 團隊。謝謝大家，祝你有美好的一天。

Thank you. Ladies and gentlemen, that does conclude our conference for today. Thank you for your participation. You may all disconnect.

謝謝你。女士們，先生們，我們今天的會議到此結束。感謝您的參與。你們都可以斷開連接。