拼多多 (PDD) 2022 Q4 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to PDD's Holdings, Inc. Fourth Quarter and Fiscal Year 2022 Earnings Conference Call. (Operator Instructions) I must advise that today's conference is being recorded.

女士們，先生們，感謝你們的支持，歡迎來到拼多多控股公司 2022 年第四季度和財年收益電話會議。 （操作員說明）我必須通知今天的會議正在錄製中。

I would now like to hand the conference over to your host today, Mr. Cheng Peng. Sir, please go ahead.

現在我想把會議交給今天的主持人程鵬先生。先生，請繼續。

Thank you, operator. Hello, everyone, and thank you for joining us today. My name is Cheng, and I will help host the earnings call.

謝謝你，運營商。大家好，感謝您今天加入我們。我叫 Cheng，我將協助主持財報電話會議。

PDD Holdings earnings release was distributed earlier and is available on our website at investor.pddholdings.com as well as through GlobeNewswire services. 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. Please refer to our earnings release, which contains a reconciliation of non-GAAP measures to GAAP measures.

PDD Holdings 收益發布較早發布，可在我們的網站 investor.pddholdings.com 上以及通過 GlobeNewswire 服務獲取。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。請參閱我們的收益發布，其中包含非 GAAP 措施與 GAAP 措施的調節。

Joining us today on the call are Chen Lei, our Chairman and Chief Executive Officer; and 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 fourth quarter and fiscal year ended December 31, 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；和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 12 月 31 日的第四季度和財政年度的財務業績。

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 their 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。蕾，請繼續。

Hello, everyone. Thank you all for joining us on our earnings call for the fourth quarter and fiscal year of 2022.

大家好。感謝大家參加我們的 2022 財年第四季度和財年財報電話會議。

Let me begin by summarizing our results for Q4 and the full year of 2022. Our total revenue for this quarter was RMB 39.8 billion which is a 46% increase compared to the previous year. Our total revenue over the past year was RMB 130.6 billion which represents a growth of 39 year-over-year -- 39% year-over-year.

首先讓我總結一下我們第四季度和 2022 年全年的業績。本季度我們的總收入為人民幣 398 億元，比上年增長 46%。我們過去一年的總收入為人民幣 1306 億元，同比增長 39%，同比增長 39%。

In 2022, we focused on strengthening our core capabilities. We invested over RMB 10 billion in research and development last year, which is the highest amount since our establishment. Our goal is to further improve our technological know-how and bring the benefit of digitalization to our users and ecosystem partners. We will continue to invest in R&D as a long-term commitment to better serve our users and suppliers as a whole.

2022年，我們著力強化核心能力。去年我們研發投入超過100億元，是我們成立以來的最高金額。我們的目標是進一步提高我們的技術知識，並為我們的用戶和生態系統合作夥伴帶來數字化的好處。我們將繼續投資於研發，作為更好地為我們的用戶和供應商整體服務的長期承諾。

During the past year, we are encouraged to see many of our young colleagues take on more responsibilities and step into bigger roles. These young talents are pure our passion and creativity to have demonstrated their ability to take on new challenges, explore different possibilities and asking our vision with patience and determination. We will continue to provide more personal development opportunities for them to grow as future leaders.

在過去的一年裡，我們欣喜地看到許多年輕同事承擔了更多的責任，擔當了更大的角色。這些年輕的天才是我們的熱情和創造力，他們展示了他們接受新挑戰、探索不同可能性並以耐心和決心提出我們願景的能力。我們將繼續為他們提供更多的個人發展機會，幫助他們成長為未來的領導者。

As a young company, still in the investment stage, we remain agile and energetic as we move forward, and we are committed to adapting to trends in consumer preferences.

作為一家年輕的公司，仍處於投資階段，我們在前進的過程中保持敏捷和活力，並致力於適應消費者偏好的趨勢。

My team and I are eager to keep exploring and identifying the right opportunities. When we find the right opportunities to invest and execute relentlessly to create value for consumers and the society.

我和我的團隊渴望繼續探索和尋找合適的機會。當我們找到合適的機會進行投資並堅持不懈地執行時，為消費者和社會創造價值。

In Q4, we observed the rising sentiment among our users. To support consumption recovery, we actively leveraged resources in our Pinduoduo platform. During the promotion season, we stepped up our investment to further improve consumer engagement and build their chart. For example, during the Double 11 period last quarter, we provided robust coupons and discounts in a simple and straightforward way, making shopping easier and more enjoyable for our consumers. We are also working hard to enlarge the diversity of product of our platform to address our consumers' diversity.

在第四季度，我們觀察到用戶情緒上升。為支持消費恢復，我們積極利用拼多多平台資源。在促銷季期間，我們加大了投入，以進一步提高消費者參與度並建立他們的榜單。例如，在上個季度的雙十一期間，我們通過簡單明了的方式提供了強大的優惠券和折扣，讓我們的消費者購物更輕鬆、更愉快。我們也在努力擴大平台產品的多樣性，以應對消費者的多樣性。

With efforts of our platform as well as merchants, we saw decent performance across various categories during the promotion season. For example, categories such as mobile phones and cosmetics saw encouraging growth among users with different demographics. The auto volume of many seasonal agricultural products more than doubled, which helped to boost consumer awareness of various local agricultural production regions.

在我們的平台和商家的努力下，我們在促銷季看到了各個品類的良好表現。例如，手機和化妝品等品類在不同人群中的用戶增長令人鼓舞。許多應季農產品的銷量翻了一番以上，有助於提升當地各個農產品產區的消費者認知度。

As the Chinese New Year happened earlier this year, we launched the Chinese New Year promotion in late December to meet consumer needs. We work closely with merchants all over the world who will curate more product selections for consumers. And we are happy to see that our efforts have paid off with many imported products such as curry or chili and the salmon from Norway, receiving very positive feedbacks.

由於今年農曆新年較早，我們在 12 月下旬推出了農曆新年促銷活動以滿足消費者的需求。我們與世界各地的商家密切合作，他們將為消費者策劃更多的產品選擇。我們很高興看到我們的努力得到了回報，許多進口產品如咖哩或辣椒以及來自挪威的三文魚獲得了非常積極的反饋。

We are glad to contribute to in supporting consumer confidence. As the consumption continues to recover and consumer sentiment continues to improve, everyone can see the potential opportunities in this market.

我們很高興為支持消費者信心做出貢獻。隨著消費持續回暖，消費情緒持續好轉，大家也看到了這個市場潛在的機會。

As the industry evolves, we noticed a number of recent moves by our peers. I believe healthy competition is beneficial for the industry. But sometimes, when competition intensifies, some companies may take different actions. For us, we will always adhere to our [conscience] duty as a company, focus on our own sustainable development, embrace competition, even when sometimes it involves unsustainable practices from peers.

隨著行業的發展，我們注意到同行最近採取的一些舉措。我相信良性競爭對行業有利。但有時，當競爭加劇時，一些企業可能會採取不同的行動。對我們來說，我們將始終堅守作為一家公司的[良心]職責，專注於自身的可持續發展，擁抱競爭，即使有時涉及同行不可持續的做法。

We always think about how to better serve our consumers. We are also fully aware that we still have a long way to go before we can fully meet consumers' evolving needs. We are committed to deepening our value proposition of more savings, more fun. In addition, we will continue to invest in supply chain, improve supplier efficiency and satisfy consumers' increasing needs for quality product.

我們一直在思考如何更好地為我們的消費者服務。我們也充分意識到，要完全滿足消費者不斷變化的需求，我們還有很長的路要走。我們致力於深化我們的價值主張，即更多儲蓄，更多樂趣。此外，我們將繼續投資於供應鏈，提高供應商效率，滿足消費者對優質產品日益增長的需求。

In the manufacturing sector, for example, Pinduoduo can quickly gather consumer insights to help manufacturers make more informed decisions on project design and production. This enables the creation of products that better met consumer need and passes on the savings to consumers.

以製造業為例，拼多多可以快速收集消費者洞察，幫助製造商在項目設計和生產方面做出更明智的決策。這使得能夠創造出更好地滿足消費者需求的產品，並將節省的成本轉嫁給消費者。

In the past year, we rolled out multiple initiatives to help manufacturers directly engaged with end consumers. Take manufacturer in the personal care sector as an example. We use our insight to identify opportunities for personalized quality products among a younger generation. As a result, the manufacturer developed personal care products with present features and designs, which receive excellent market feedbacks. This also help the manufacturers to gradually establish its own brand.

在過去的一年裡，我們推出了多項舉措來幫助製造商直接與最終消費者互動。以個人護理行業的製造商為例。我們利用我們的洞察力在年輕一代中發現個性化優質產品的機會。因此，製造商開發了具有當前功能和設計的個人護理產品，獲得了極好的市場反饋。這也有利於廠家逐步樹立自己的品牌。

Over the past several years, we have helped incubate thousands of manufacturers' brands in this way. Our [pricing] insights and technology can help manufacturers better position themselves, develop popular products in the rapid changing market and reduce uncertainty in production. We are dedicated to build a platform that is accessible to all merchants and brands regardless of size.

在過去的幾年裡，我們通過這種方式幫助孵化了數千家廠商的品牌。我們的 [定價] 見解和技術可以幫助製造商更好地定位自己，在瞬息萬變的市場中開發受歡迎的產品，並減少生產中的不確定性。我們致力於打造一個無論規模大小，所有商家和品牌都可以訪問的平台。

In the agricultural sector, we continue to utilize our resources and technology to promote digital inclusion and generate a positive impact. We devote ourselves to facilitating the adoption of agritech solutions. Since 2020, Pinduoduo has hosted a flagship smart agriculture competition for 3 consecutive years, offering a stage for young agricultural researchers and growers to explore practical technology solutions that improve yield, short-term production cycle and promote sustainability.

在農業領域，我們繼續利用我們的資源和技術來促進數字包容並產生積極影響。我們致力於促進農業技術解決方案的採用。 2020年以來，拼多多連續3年舉辦智慧農業旗艦大賽，為年輕的農業科研人員和種植者提供了探索提高產量、縮短生產週期、促進可持續發展的實用技術方案的舞台。

We also have teams on prohibit competition to commercialize their technical solutions on a large scale. By promoting agritech adoption, we hope to push forward agricultural modernization.

我們也有團隊禁止競爭將他們的技術解決方案大規模商業化。通過促進農業技術的採用，我們希望推動農業現代化。

Another key driving force is the training of new farmers. These young new farmers have returned to their home town after years of experience in large cities. They are tech-savvy about latest tools such as live streaming and they are a pool of energy and drive. With the help of insights on our platform, it is in fact a good understanding of consumer needs and play an important role in their local communities.

另一個關鍵驅動力是新農民培訓。這些年輕的新農民在大城市經歷了多年後，回到了家鄉。他們精通實時流媒體等最新工具的技術，是能量和動力的源泉。借助我們平台上的洞察力，它實際上很好地了解了消費者的需求，並在他們當地的社區中發揮了重要作用。

On average, one such new farmer can bring 5 to 10 other young people into e-commerce, creating around 50 local job opportunities directly or indirectly. In addition, our efforts in supply chain have generated a meaningful positive impact for the society. For example, last quarter, bad weather in winter caused a supply chain disruption which prompted us to quickly assemble a dedicated team and launch a nationwide campaign with people's will.

平均而言，一個這樣的新農民可以帶動5到10個其他年輕人進入電子商務，直接或間接為當地創造約50個就業機會。此外，我們在供應鏈方面的努力對社會產生了有意義的積極影響。比如上個季度，冬天的惡劣天氣導致供應鏈中斷，促使我們迅速組建了一個專門的團隊，並以人民的意願開展了一場全國性的運動。

Through our helpline farmer channel on Pinduduo platform, we provided dedicated traffic support to help affected farmers to sell their unsold seasonal produce by reaching more end consumers in a short period of time.

通過我們在拼多多平台上的幫助熱線農民頻道，我們提供專門的流量支持，幫助受影響的農民在短時間內通過接觸更多的終端消費者來銷售他們未售出的季節性產品。

Our Duo Duo Grocery teams all across the country also helped play an important role as each team visited various agricultural production regions in their harvest, sourced unsold produce directly from farmers and quickly matched it with local consumer demand to sell it. With our team's strong efforts, we were able to sell nearly 15,000 tons of agriculture produce nationwide during this campaign. And we are encouraged to see that our supply chain capabilities can create tangible value for the sector and society.

我們遍布全國的多多雜貨團隊也發揮了重要作用，每個團隊都在收穫時訪問了各個農業產區，直接從農民那裡採購未售出的產品，並迅速將其與當地消費者的需求進行匹配銷售。在我們團隊的大力推動下，此次活動共銷售全國農產品近1.5萬噸。我們很高興看到我們的供應鏈能力可以為該行業和社會創造有形的價值。

We are proud to receive the FAO 2022 Innovation Award from the United Nations Food and Agriculture Organization, which recognize innovation that creates an impact in agricultural supply chain. This award is a vote of confidence in our holistic and proactive approach to agriculture and it motivates us to keep bolting ahead so that more and more people can enjoy the benefits of digital inclusion and technology adoption in agriculture.

我們很榮幸獲得聯合國糧食及農業組織頒發的糧農組織 2022 年創新獎，該獎表彰對農業供應鏈產生影響的創新。這個獎項是對我們全面和積極的農業方法的信任投票，它激勵我們繼續前進，讓越來越多的人能夠享受數字包容和農業技術採用的好處。

Here, I would also like to provide an update on Temu, a new global online marketplace that we launched in September 2022. Temu and Pinduoduo are sister companies under a parent company, PDD Holdings, which has built the sourcing, logistics and fulfillment capabilities developed to support its various businesses.

在這裡，我還想介紹一下我們於 2022 年 9 月推出的新的全球在線市場 Temu 的最新情況。Temu 和拼多多是母公司 PDD Holdings 旗下的姊妹公司，拼多多擁有開發的採購、物流和履行能力以支持其各項業務。

We strive to create our all unique value with PDD. So we always start from a fundamental consumer needs to explore how we can serve them well. Temu will stick to the values of empowerment, diversity and inclusion, integrity as well as social responsibility.

我們努力通過 PDD 創造我們所有的獨特價值。所以我們總是從消費者的基本需求出發，去探索我們如何才能服務好他們。 Temu 將堅持賦權、多元化和包容性、誠信以及社會責任的價值觀。

As we enter the new year, we remain committed to creating value for all stakeholders. And therefore, we will remain patient and invest for the long term. Our goal is to further improve the services we provide to consumers and bring more businesses into a digital economy to increase opportunities for local communities and small businesses.

進入新的一年，我們將繼續致力於為所有利益相關者創造價值。因此，我們將保持耐心並進行長期投資。我們的目標是進一步改善我們為消費者提供的服務，並將更多企業帶入數字經濟，從而為當地社區和小型企業增加機會。

Thank you for your continued support. And now let me turn it over to Jun to update you on our financial performance.

感謝您一如既往的支持。現在讓我把它交給 Jun，向您介紹我們的財務業績。

Thank you, Lei. Hello, everyone. Now let me walk you through our financial performance in the fourth quarter and fiscal year ended December 31, 2022.

謝謝你，雷。大家好。現在讓我向您介紹一下我們截至 2022 年 12 月 31 日的第四季度和財政年度的財務業績。

In terms of income statement, our total revenues increased to 46% year-over-year to RMB 39.8 billion in the fourth quarter. and 39% year-over-year to RMB 130.6 billion for the full year of 2022. This was mainly driven by an increase in revenues from online marketing services and transaction services.

在損益表方面，第四季度我們的總收入同比增長 46% 至人民幣 398 億元。 2022 年全年同比增長 39% 至人民幣 1,306 億元。這主要是由於在線營銷服務和交易服務收入的增長。

Revenues from online marketing services and others were RMB 31 billion this quarter, up 38% compared to the same period of 2021. This was primarily due to an increase in management activities as a result of improvement in consumer sentiment. Our transaction services revenue this quarter were RMB 8.8 billion, up 86% as same period of 2021.

本季度網絡營銷服務及其他收入為人民幣310億元，較2021年同期增長38%。這主要是由於消費者情緒改善導致管理活動增加。本季度我們的交易服務收入為人民幣 88 億元，比 2021 年同期增長 86%。

Moving on to cost and expenses. Our total cost revenues increased 37% from RMB 6.5 billion in Q4 2021 to RMB 8.9 billion this quarter. For the full year, our total cost of revenues decreased to 1% to RMB 31.5 billion. Total operating expenses this quarter were RMB 21.8 billion on a GAAP basis versus only RMB 13.8 billion in the same quarter of 2021.

繼續成本和費用。我們的總成本收入從 2021 年第四季度的 65 億元人民幣增長 37% 至本季度的 89 億元人民幣。全年，我們的總收入成本下降了 1% 至人民幣 315 億元。按 GAAP 計算，本季度總運營費用為 218 億元人民幣，而 2021 年同期僅為 138 億元人民幣。

On a non-GAAP basis, our total operating expenses increased to RMB 19.3 billion this quarter from RMB 12.3 billion in Q4 2021.

按非美國通用會計準則計算，本季度我們的總運營費用從 2021 年第四季度的 123 億元人民幣增至 193 億元人民幣。

During the fourth quarter, we devoted more resources to better address user needs, encourage their consumption confidence as well as step up investments in our long-term focus areas such as R&D and agriculture. As such, our total non-GAAP operating expenses as a percentage of total revenues have increased from 45% in Q4 2021 to 48% in this quarter. For full year of 2022, Total GAAP operating expenses were RMB 68.7 billion, up from RMB 55.3 billion last year.

第四季度，我們投入更多資源更好地滿足用戶需求，提振他們的消費信心，並加大對研發和農業等長期重點領域的投資。因此，我們的非 GAAP 總運營費用佔總收入的百分比已從 2021 年第四季度的 45% 增加到本季度的 48%。 2022 年全年，按美國通用會計準則計算的總營業費用為人民幣 687 億元，高於去年的人民幣 553 億元。

Looking into specific expense items. Our non-GAAP sales and marketing expenses this quarter were RMB 17.3 billion, up 59% versus the same quarter of 2021. We offered various forms of promotions and subsidies and increased advertising spending in Q4 to support consumption recovery.

查看具體的費用項目。我們本季度的非美國通用會計準則銷售和營銷費用為人民幣 173 億元，比 2021 年同期增長 59%。我們在第四季度提供了多種形式的促銷和補貼，並增加了廣告支出以支持消費復甦。

On a non-GAAP basis, our sales and marketing expenses as a percentage of our revenues this quarter was 43%, compared with 40% for the same quarter in 2021. For the full year, non-GAAP sales and marketing expenses increased from RMB 43.2 billion in 2021 to RMB 52.2 billion in 2022. Our non-GAAP general and administrative expenses were RMB [360.8] million in Q4 versus RMB (inaudible) million in the second quarter of 2021.

按非美國通用會計準則計算，本季度我們的銷售和營銷費用佔收入的百分比為 43%，而 2021 年同期為 40%。全年，非美國通用會計準則銷售和營銷費用從人民幣2021 年為 432 億元，到 2022 年為 522 億元人民幣。我們的非美國通用會計準則一般和行政費用在第四季度為 [360.8] 萬元人民幣，而 2021 年第二季度為人民幣（聽不清）百萬元。

Our annual non-GAAP general and administrative expenses were RMB 1 billion in 2022, versus RMB 748.4 million last year. Our non-GAAP research and development expenses were RMB 1.7 billion in the fourth quarter, an increase of 34% from RMB 1.3 billion in the same quarter of 2021. The increase was primarily due to an increase in (inaudible) and the recruitment of more experienced R&D personnel and server cost.

2022 年，我們的年度非美國通用會計準則一般和管理費用為人民幣 10 億元，而去年為人民幣 7.484 億元。我們的非美國通用會計準則研發費用在第四季度為人民幣 17 億元，比 2021 年同期的人民幣 13 億元增長了 34%。增長主要是由於（聽不清）的增加和招聘更多經驗豐富的研發人員和服務器成本。

As a technology-driven company, the value we create cannot be achieved without our R&D assets. We need to further grow our R&D capabilities to understand the constantly evolving customer demand and drive innovation to satisfy their needs more effectively. In addition, we continue to leverage our technology background to improve digital technology adoption success such as agriculture and manufacturing. Also, it is worth noting that, for full year, our annual GAAP R&D expenses crossed RMB 10 billion for the first time. We aim to continue to step up investment in this area to form a solid foundation for our long-term development.

作為一家技術驅動型公司，我們創造的價值離不開我們的研發資產。我們需要進一步提高研發能力，以了解不斷變化的客戶需求，並推動創新以更有效地滿足他們的需求。此外，我們繼續利用我們的技術背景來提高農業和製造業等數字技術採用的成功率。此外，值得注意的是，全年，我們的年度 GAAP 研發費用首次突破 100 億元人民幣。我們的目標是繼續加大在這方面的投入，為我們的長期發展奠定堅實的基礎。

Operating profit for the quarter was RMB 9.1 billion on a GAAP basis and RMB 11.6 billion on a non-GAAP basis. Net income attributable to ordinary shareholders was RMB 9.5 billion for the quarter, and earned RMB 31.45 billion for the full year. In the fourth quarter, base earnings per ADS were RMB 7.42 and diluted earnings per ADS was RMB 6.52 versus base earnings per ADS of RMB 5.26 and diluted earnings per ADS of RMB 4.66 in the same quarter of 2021.

本季度營業利潤按 GAAP 計算為人民幣 91 億元，按非美國通用會計準則計算為人民幣 116 億元。本季度歸屬於普通股股東的淨利潤為95億元，全年實現淨利潤314.5億元。第四季度，每份 ADS 基本收益為 7.42 元人民幣，每份 ADS 稀釋收益為 6.52 元人民幣，而 2021 年同一季度每份 ADS 基本收益為 5.26 元人民幣，每份 ADS 稀釋收益為 4.66 元人民幣。

Non-GAAP net income attributable to ordinary shareholders was RMB 12.1 billion for the quarter. In the fourth quarter, non-GAAP diluted earnings per ADS was RMB 8.34 versus RMB 5.88 in the same quarter of 2021. That completes the income statement.

本季度歸屬於普通股股東的非美國通用會計準則淨利潤為人民幣 121 億元。第四季度，非美國通用會計準則每股美國存託憑證攤薄收益為人民幣 8.34 元，而 2021 年同期為人民幣 5.88 元。這就是損益表。

Now let me move on to cash flow. Our net cash flow generated from operating activities was RMB 26.6 billion for Q4 and a RMB 48.5 billion for full year of 2022, compared with RMB 16.4 billion in the same quarter of 2021 and RMB 28.8 billion in 2021, primarily due to the increase in net income and changes in working capital. As of December 31, 2022, the company had RMB 149.4 billion in cash, cash equivalents and short-term investments.

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在第四季度為人民幣 266 億元，2022 年全年為人民幣 485 億元，而 2021 年同期為人民幣 164 億元，2021 年為人民幣 288 億元，這主要是由於淨額增加收入和營運資本的變化。截至2022年12月31日，公司持有現金、現金等價物及短期投資1,494億元。

Thank you. This concludes my prepared remarks.

謝謝。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 2 questions per analyst. And Lei will answer questions in Chinese, and I will help translate his remarks for easier reference.

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 2 個問題。雷會用中文回答問題，我會幫忙翻譯他的發言，以便於參考。

Operator, we may now take questions on the line.

接線員，我們現在可以在線提問。

(Operator Instructions) Your first question comes from Joyce Ju with Bank of America.

（操作員說明）您的第一個問題來自美國銀行的 Joyce Ju。

I have 2 questions. The first one is, as now Pinduoduo developed into an e-commerce conglomerate with multiple business initiatives globally, how could management actually prioritize different business lines? And can management share more about your latest strategies going forward? Have you shifted your strategy after you have expanded your business line fully? And how do you position yourself in the global market?

我有兩個問題。第一個是，隨著拼多多發展成為一家在全球範圍內擁有多項業務計劃的電子商務集團，管理層如何才能真正優先考慮不同的業務線？管理層能否分享更多有關您未來最新戰略的信息？在全面擴展業務線後，您是否改變了戰略？您如何在全球市場中定位自己？

And my second question is actually related to the revenue. Your online marketing service revenue grew 38% year-over-year last quarter, ahead of the industry growth and peers. But at the same time, we have seen this represent a deceleration from the third quarter. How should we understand the growth? And how should we actually expand the momentum going forward?

我的第二個問題實際上與收入有關。您的在線營銷服務收入上個季度同比增長 38%，領先於行業增長和同行。但與此同時，我們看到這代表了第三季度的減速。我們應該如何理解成長？我們應該如何真正擴大前進的勢頭？

(foreign language)

（外語）

[Interpreted] Hello, Joyce, and thank you for your questions, and I can take your question on strategy first. First of all, we are still in our development stage instead of a stabilized phase and we still have a long way to go in terms of serving consumers well. And to better serve consumers, we will firmly stick to our strategy which is to create long-term value through R&D and technology.

[翻譯] 你好，喬伊斯，謝謝你的問題，我可以先回答你關於戰略的問題。首先，我們還處於發展階段，還沒有穩定下來，要服務好消費者還有很長的路要走。為了更好地服務消費者，我們將堅定不移地堅持通過研發和技術創造長期價值的戰略。

We are a technology-driven company and more than half of our employees are engineers. Also, many of our core management team members are also from a technical background. So from the perspective of creating more value for users. Many areas such as understanding the rapidly changing user preferences, and continuously iterating our services. All these areas are inseparably linked to our R&D capabilities. And we firmly believe that the key to serving our users well in the future is to further strengthen our R&D capabilities.

我們是一家技術驅動型公司，我們一半以上的員工是工程師。此外，我們的許多核心管理團隊成員也來自技術背景。所以從為用戶創造更多價值的角度出發。許多領域，例如了解快速變化的用戶偏好，並不斷迭代我們的服務。所有這些領域都與我們的研發能力密不可分。而我們堅信，未來要服務好我們的用戶，關鍵是要進一步加強我們的研發能力。

At the same time, we will continue to focus on supporting the agriculture and manufacturing industries through technology. For agriculture, we will continue to invest in the various mix along the agriculture value chain with our technical expertise, so that we can facilitate the efficient distribution of agricultural produce. And we will also leverage our resources on the Pinduoduo platform to bring more agritech solutions to the market faster.

同時，我們將繼續以科技扶持農業和製造業。在農業方面，我們將繼續以我們的技術專長投資於農業價值鏈的各種組合，從而促進農產品的高效流通。我們還將利用我們在拼多多平台上的資源，將更多的農業科技解決方案更快地推向市場。

As for the manufacturing sector, we will devote more resources and help many more manufacturers as well as factories to go through digital transformation and improve their efficiency.

在製造業方面，我們會投入更多的資源，幫助更多的製造商和工廠進行數字化轉型，提高效率。

And we have a very clear long-term strategy to strengthen our R&D capabilities and to improve the efficiency of the agricultural and manufacturing supply chain. Our strategic direction as well as the investment level will not be affected by short-term external trends or fluctuations. And we will continue to make a long-term and patient investment.

我們有一個非常明確的長期戰略來加強我們的研發能力，提高農業和製造業供應鏈的效率。我們的戰略方向和投資水平不會受到短期外部趨勢或波動的影響。我們將繼續進行長期和耐心的投資。

And as for your second question regarding our revenue growth, well, throughout the past quarter, we saw a strong resilience and also bigger in the consumption market. And we are confident toward the prospects of this market. During events such as the Double 11 and the Chinese New Year promotion, we collaborated with more merchants and also brands and provided consumers with a broader selection of high-quality products and many consumers showed a good shopping demand at the same time.

至於你關於我們收入增長的第二個問題，嗯，在過去的一個季度裡，我們看到了強大的彈性，而且消費市場也更大。我們對這個市場的前景充滿信心。在雙十一、春節大促等活動中，我們與更多的商家和品牌合作，為消費者提供了更豐富的優質產品選擇，同時也有不少消費者表現出良好的購物需求。

And under the backdrop of consumption recovery, we have also devoted more resources to better fulfill consumer demand. In the fourth quarter, the Pinduoduo platform leveraged its focus on serving the fundamental needs of users and sales volume of daily essential products on the platform showed steady growth. Furthermore, as consumer demand towards high-quality merchandise is growing categories, including mobile phones, beauty, cosmetics, and maternal and baby care products, all had decent growth.

而在消費回暖的背景下，我們也投入了更多的資源來更好地滿足消費需求。第四季度，拼多多平台立足於服務用戶根本需求，平台生活必需品銷量穩步增長。此外，隨著消費者對高品質商品需求的增長，手機、美妝、母嬰等品類均有不錯的增長。

At the same time, we are fully aware that the competition in the market is intense, and consumers have many different e-commerce platforms and shopping formats to choose from. We still have a lot to further improve. So as a result, our team must continue to work hard, and we plan to step up our investment, strengthen our core competencies and continue to provide our customers with more savings, more fun shopping experience.

同時，我們也充分意識到市場競爭激烈，消費者有很多不同的電商平台和購物形式可供選擇。我們還有很多需要進一步改進的地方。因此，我們的團隊必須繼續努力，我們計劃加大投資力度，加強我們的核心競爭力，繼續為我們的客戶提供更省錢、更有趣的購物體驗。

Hi, operator, we can take next question on the line?

嗨，接線員，我們可以接聽下一個問題嗎？

Your next question comes from Kenneth Fong with Credit Suisse.

你的下一個問題來自瑞士信貸的 Kenneth Fong。

I have 2 questions. First is could management comment on the latest competitive landscape? Specifically, we saw a number of your peers stress the importance of low price. Do you have any plan or program in response? How do you position yourself to achieve quality growth in such an environment?

我有兩個問題。首先是管理層能否評論最新的競爭格局？具體來說，我們看到許多同行強調低價的重要性。你有什麼應對計劃或方案嗎？在這樣的環境下，您如何定位自己才能實現有質量的增長？

And my second question is about sales and marketing, which we saw an acceleration in sales and marketing expenses of 56% year-over-year to around RMB 18 billion in the fourth quarter. So what investment opportunities do you see as consumer sentiment improve? Are you becoming more aggressive in terms of investment? Or does this just reflect a temporary seasonal hike?

我的第二個問題是關於銷售和營銷，第四季度我們看到銷售和營銷費用同比增長 56% 至人民幣 180 億元左右。那麼，隨著消費者情緒的改善，您認為有哪些投資機會？您在投資方面是否變得更加激進？或者這是否只是反映了暫時的季節性上漲？

(foreign language)

（外語）

[Interpreted] Kenneth, so I will first share my views on your question on competition. The e-commerce market in China is huge and it is for energy. Also with the optimization in pandemic control measures, it continues to show strong resilience and I believe it is easy for everybody to see the opportunities in this market. Therefore, I think it is natural and also logical for e-commerce peers to choose to raise lending, which makes competition more intense as a result.

[翻譯] Kenneth，那麼我將首先就您關於競爭的問題分享我的看法。中國電子商務市場巨大，是為能源而生。而且隨著疫情防控措施的優化，它繼續展現出強大的韌性，相信大家也很容易看到這個市場的機會。因此，我認為電商同行選擇加息是很自然的，也是合乎邏輯的，從而使競爭更加激烈。

Also, we have noticed the recent moves in the industry. And we saw that different companies may form different strategies in face of competition. And as I have mentioned in my remarks, we believe that healthy competition is beneficial to consumers and the entire industry. But when competition intensifies, sometimes peers reaction could go in a different direction. And we always keep our duty in mind, focus on our own healthy development and embrace industry competition, even when sometimes it involves sustainable practices from peers.

此外，我們注意到該行業最近的動向。我們看到，不同的公司在競爭面前可能會形成不同的策略。正如我在發言中提到的，我們相信良性競爭對消費者和整個行業都是有利的。但當競爭加劇時，有時同行的反應可能會朝著不同的方向發展。我們始終牢記自己的職責，專注於自身的健康發展，擁抱行業競爭，即使有時涉及同行的可持續實踐。

For us, we believe that serving consumers better is the key to creating long-term value and we will continue to provide consumers with more savings, more fun shopping experience. Therefore, we start from our own unique value proposition. And our team and I are exploring how to provide more value to consumers. And towards this end, we will continue to focus on R&D so that we can better understand the new needs and preferences of consumers, improve their shopping experience. And in this way, we can increase consumer satisfaction.

對我們來說，我們相信更好地服務消費者是創造長期價值的關鍵，我們將繼續為消費者提供更省錢、更有趣的購物體驗。因此，我們從自己獨特的價值主張出發。我和我們的團隊正在探索如何為消費者提供更多價值。為此，我們將繼續專注於研發，以便更好地了解消費者的新需求和喜好，改善他們的購物體驗。通過這種方式，我們可以提高消費者的滿意度。

At the same time, we are fully aware that we still have a lot to improve. So as a result, we will further step up investments, especially in the areas of agriculture and manufacturing sectors, as well as improved supply chain efficiency so that we can create more value for consumers and deepen our more savings, more from proposition. So this is my view of industry competition.

同時，我們也充分意識到我們還有很多需要改進的地方。因此，我們將進一步加大投資，尤其是在農業和製造業領域，並提高供應鏈效率，以便我們能夠為消費者創造更多價值，並深化我們更多的儲蓄，更多來自提議。所以這就是我對行業競爭的看法。

As for your question on sales and marketing expenses, I will leave it to Jun to answer your question. Thank you.

至於你關於銷售和營銷費用的問題，我會留給君來回答你的問題。謝謝。

Kenneth, this is Jun. Let me take the question on sales and marketing expenses. Well, during the fourth quarter, we saw consumption recovery trends continue. And given this background, we offered various types of promotions and subsidies to support consumption, as I just mentioned in the remarks. And these offers are reflected in the financial number. And you can see that our sales and marketing expenses in Q4 increased and actually, we always carefully evaluate the ROI for early investment for all of our projects.

Kenneth，我是 Jun。讓我回答有關銷售和營銷費用的問題。那麼，在第四季度，我們看到消費復甦趨勢仍在繼續。在這樣的背景下，我剛才在發言中也提到了，我們通過各種形式的促銷和補貼來支持消費。而這些優惠都體現在財務數字上。你可以看到我們在第四季度的銷售和營銷費用增加了，實際上，我們總是仔細評估我們所有項目的早期投資的投資回報率。

We hope to allocate resources to places that can generate long-term high-quality development. When we see good opportunities that can create value, we invest certainly. Thank you.

我們希望把資源配置到能夠產生長期高質量發展的地方。當我們看到可以創造價值的好機會時，我們當然會投資。謝謝。

Your next question comes from Ellie Jiang with Macquarie.

你的下一個問題來自 Ellie Jiang with Macquarie。

I have 2 regarding our overseas product, Temu. We saw that you are now introducing Temu to Canada and Australia. Although we saw exciting commercials being put out on Super Bowl. Can you first share with us some latest developments and operational updates? How would Temu differentiate from the more well-established players in the current market?

我有 2 個關於我們的海外產品 Temu。我們看到您現在正在向加拿大和澳大利亞介紹 Temu。儘管我們在超級碗上看到了激動人心的廣告。您能否先與我們分享一些最新的發展和運營更新？ Temu 將如何與當前市場上更成熟的參與者區分開來？

The second question is on the relative impact on the fourth quarter financials. How did Temu's revenue being booked? Any operating metrics that management could share regarding the estimated loss levels, order size or even economics? Do we have any GMV or growth target for Temu going forward?

第二個問題是對第四季度財務的相對影響。 Temu 的收入是如何記賬的？管理層可以分享關於估計損失水平、訂單規模甚至經濟的任何運營指標嗎？我們對 Temu 未來有任何 GMV 或增長目標嗎？

(foreign language)

（外語）

[Interpreted] Ellie, so let me take your question on our global business. So for this initiative, we aspire to create our own unique value. For example, using our supply chain know-how that we have accumulated over the years, we can offer our consumers a curated selection of quality goods at our attractive prices and also through evolving our product features, we hope to improve consumers' shopping experience.

[翻譯] 艾莉，讓我回答你關於我們全球業務的問題。所以對於這個倡議，我們渴望創造自己獨特的價值。例如，利用我們多年來積累的供應鏈知識，我們可以以極具吸引力的價格為消費者提供精選的優質商品，同時通過改進我們的產品功能，我們希望改善消費者的購物體驗。

And since we launched this platform in September of last year, it has only been about half a year and instead of focusing too much on competitors right now, we actually pay more attention to our own development and product iteration. We see that different markets in different regions, they have many differences. And we still have a lot to learn and a lot to improve. So we will remain patient iterate constantly and create -- strive to create long-term value.

而我們從去年9月推出這個平台到現在也才半年左右，我們現在與其過多關注競爭對手，不如更關注自身的發展和產品迭代。我們看到不同地區的不同市場，他們有很多差異。我們還有很多要學習和改進的地方。所以我們會保持耐心不斷迭代和創造——努力創造長期價值。

And in addition, we also appreciate the support coming from consumers and merchants who have chosen our platform at this early stage of its development. Their support motivates us to do this business well. And they have also given us many valuable advices to improve our services.

此外，我們也感謝在發展初期選擇我們平台的消費者和商家的支持。他們的支持激勵我們做好這項業務。他們也給了我們許多寶貴的建議，以改善我們的服務。

As for the second part of the question, on the financial bookings -- revenue booking and financial impact of our Temu business, I will hand it over to Jun to further discuss.

至於問題的第二部分，關於財務預訂——我們 Temu 業務的收入預訂和財務影響，我將交給 Jun 進一步討論。

Okay. Let me address the questions on revenue and financial impact of our global business. Well, Temu -- well, it just started out roughly half a year ago. And given the early-stage nature and the financial impact from this business in Q4 is relatively small. And in terms of revenue booking, this business recorded as a 3P model. We are entering new markets, so we need to understand customer demands better and experiment how to make their demand effectively.

好的。讓我回答有關我們全球業務的收入和財務影響的問題。好吧，Temu——好吧，它大約半年前才開始。鑑於該業務的早期性質和第四季度的財務影響相對較小。而在收入預訂方面，這項業務記錄為3P模式。我們正在進入新市場，因此我們需要更好地了解客戶需求並嘗試如何有效地滿足他們的需求。

And we are not driven by financial metrics. In fact, the most interesting thing for us right now is to build our own unique value of the long run. Over time, financial metrics are just a reflection of the value we can generate. And in terms of future investment and the financial impact, as always, we will continue to carefully evaluate different opportunities, stick to our investment discipline and keep up reach our high ROI standard.

而且我們不受財務指標的驅動。事實上，我們現在最感興趣的事情是建立我們自己的長期獨特價值。隨著時間的推移，財務指標只是我們可以產生的價值的反映。在未來的投資和財務影響方面，我們將一如既往地繼續仔細評估不同的機會，堅持我們的投資紀律並保持我們的高投資回報率標準。

Okay. Hi, operator, I think we still have time to take 2 questions from one more analyst.

好的。嗨，接線員，我想我們還有時間再回答一位分析師的 2 個問題。

Your next question comes from Yang Bai with CICC.

你的下一個問題來自中金公司的楊柏。

My first question. Can management to share with us some updates on your total grocery business? We understand that online grocery business is slowing down. And are you still expanding this business? Or do you focus more on efficiency and cost control right now?

我的第一個問題。管理層能否與我們分享您整個雜貨業務的一些最新情況？我們了解到在線雜貨業務正在放緩。你還在擴大這項業務嗎？還是您現在更注重效率和成本控制？

And my second question is about the profitability. We noticed that your profitability margin decreased from the last 2 quarters. Given Q4 is the yearly strong quarter in terms of profit, does that mean that you have shifted focus more to growth and what opportunities are you spending actual?

我的第二個問題是關於盈利能力。我們注意到你們的利潤率比過去兩個季度有所下降。鑑於第四季度是年度利潤強勁的季度，這是否意味著您已將重點更多地轉移到增長上以及您實際支出的機會是什麼？

(foreign language)

（外語）

[Interpreted]. Bai Yang. Let me take your question on our dual grocery business. Pinduoduo started by selling agricultural products and agriculture is one of our key long-term strategies. Through our total grocery business, we leverage technology to improve agricultural distribution efficiency and match local supply and demand effectively. This business plays a very critical role of leveraging our unique positioning in agriculture and creating our own unique value.

[解釋]。白楊。讓我回答您關於我們的雙重雜貨業務的問題。拼多多以賣農產品起家，農業是我們的重要長期戰略之一。通過我們的整體雜貨業務，我們利用技術提高農產品配送效率並有效匹配當地供需。這項業務在利用我們在農業領域的獨特定位和創造我們自己的獨特價值方面發揮著非常關鍵的作用。

And in our total grocery business, we have seen the value that we can generate by improving supply chain efficiency in areas such as offering more choices of local produce, increasing fulfillment efficiency and improving user experience. At the same time, the total grocery business also creates positive social values.

在我們的整個雜貨業務中，我們已經看到了通過在提供更多本地產品選擇、提高履行效率和改善用戶體驗等領域提高供應鏈效率可以產生的價值。同時，總雜貨事業也創造了積極的社會價值。

Let me give you a recent example here that in the fourth quarter, we launched a dedicated campaign to help sell through seasonal unsold agricultural products to consumers directly. And the local teams of the grocery went upstream into the agricultural production region to source agricultural produce directly and match these products efficiently with local demand.

我舉一個最近的例子，在第四季度，我們發起了一項專門的活動，幫助將季節性未售出的農產品直接銷售給消費者。而雜貨當地團隊上游進入農產品產區，直接採購農產品，將這些產品與當地需求高效匹配。

We are still in the early stage in our agriculture investments. And we see a lot of areas that can be further improved with technology. So for total grocery, we are still far away from the best level of services, and there are still a lot to improve. As a result, we will remain down to earth and continue to make long-term investments in order to further create value for our consumers. Thank you.

我們仍處於農業投資的早期階段。我們看到很多領域可以通過技術進一步改進。所以對於整體雜貨店來說，我們離最好的服務水平還很遠，還有很多需要改進的地方。因此，我們將腳踏實地，繼續進行長期投資，以進一步為我們的消費者創造價值。謝謝。

This is Jun. Let me take your question on the profitability. And well, we are in our development stage. We still see many areas to improve and create more valuable users. We will continue to step up investment in key areas to strengthen our R&D capabilities, support agriculture and manufacturing through technology and improve our service offerings to users and profitability is not our current priority.

我是 Jun，我來回答你關於盈利能力的問題。好吧，我們正處於發展階段。我們仍然看到許多領域需要改進並創造更多有價值的用戶。我們將繼續加大對重點領域的投入，以加強我們的研發能力，以科技支持農業和製造業，並改善我們為用戶提供的服務，盈利不是我們當前的首要任務。

With that said, we always practice financial prudence for every investment. We carefully evaluate the ROI and ask ourself if it can create long-term high-quality development for us. When we see good opportunities, we will invest definitely. Thank you.

話雖如此，我們始終對每一項投資都保持謹慎的財務態度。我們仔細評估投資回報率，問問自己是否能為我們創造長期的高質量發展。當我們看到好的機會時，我們一定會投資。謝謝。

Okay. Thank you, everybody, for joining us on the conference call today. That concludes the call, and have a great day.

好的。謝謝大家今天加入我們的電話會議。電話會議到此結束，祝您有美好的一天。

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

女士們，先生們，我們今天的會議到此結束。謝謝大家的參與。您現在可以斷開連接。