拼多多 (PDD) 2021 Q3 法說會逐字稿

Good day, ladies and gentlemen. Thank you for standing by, and welcome to the Pinduoduo Third Quarter 2021 Earnings Conference Call. (Operator Instructions) Please be advised that today's conference is being recorded. I will now turn the call over to your host for today's call, Mr. [Chen] (inaudible). Please go ahead, sir.

女士們、先生們，大家好。感謝您的支持，歡迎參加拼多多2021年第三季財報電話會議。（操作員指示）請注意，今天的會議正在錄音。現在我將把電話轉給今天的主持人[陳]先生（聽不清楚）。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 today.

謝謝您，接線生。大家好，感謝大家今天加入我們。我叫陳，今天將協助主持財報電話會議。

Pinduoduo earnings release was distributed earlier and is available on our website at investor.pinduoduo.com as well as through GlobeNewswire services.

拼多多財報已於早些時候發布，可在我們的網站 investor.pinduoduo.com 以及 GlobeNewswire 服務上查閱。

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.

在我們開始之前，我想請您參閱收益新聞稿中適用於本次電話會議的安全港聲明，因為我們將做出某些前瞻性陳述。

Also, this call includes discussions of certain non-GAAP financial measures. Please refer to our earnings release, which contains a reconciliation of the non-GAAP measures to GAAP measures.

此外，本次電話會議也討論了某些非公認會計準則財務指標。請參閱我們的收益報告，其中包含非 GAAP 指標與 GAAP 指標的對帳。

Joining us today on the call are Chen Lei, our Chairman and Chief Executive Officer; Tony Ma, our VP of Finance. Lei will make some general remarks on our performance for the past quarter and our strategic focus going forward. Tony will then elaborate further on specific strategic initiatives and take us through our financial results for the third quarter ended September 30, 2021. After that, we will open the floor to questions from analysts.

今天參加電話會議的有我們的董事長兼執行長陳雷； Tony Ma，我們的財務副總裁。雷軍將對我們上個季度的表現以及未來的戰略重點做一些總體評價。隨後，Tony 將進一步闡述具體的策略舉措，並向我們介紹截至 2021 年 9 月 30 日的第三季財務表現。之後，我們將回答分析師的提問。

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

在問答環節，雷會用中文回答大家的問題，而[Preston]會幫忙翻譯。請注意，提供的所有翻譯僅供參考。如果我們的原始評論與翻譯版本之間存在任何差異，則應以原文的陳述為準。

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

現在我很高興介紹我們的董事長兼執行長陳雷。雷，請說。

Thank you, Chen. Hello, everyone, and thank you for joining our results announcement for the third quarter of 2021.

謝謝你，陳。大家好，感謝您參加我們2021年第三季的業績發表會。

Our total revenue for this quarter, excluding revenue from merchandise sales, was RMB 21.4 billion. This represents a year-on-year increase of 55%.

本季我們的總收入（不包括商品銷售收入）為 214 億元人民幣。這比去年同期增加了 55%。

Our annual active buyers reached 867.3 million for the 12 months ending on September 30. Over the quarter, average MAU increased to 741.5 million.

截至 9 月 30 日的 12 個月內，我們的年度活躍買家數量達到 8.673 億。本季度，平均 MAU 增至 7.415 億。

Pinduoduo turned 6 last month. We are grateful for opportunities to serve our users, farmers, merchants and everyone who has interacted with us in the past 6 years, and we hope to continue serving them.

拼多多上個月滿六歲了。我們感謝有機會為我們的用戶、農民、商家以及過去6年與我們互動的每個人提供服務，我們希望繼續為他們提供服務。

It has been over a year since I took over as a CEO and half a year as Chairman of the Board. Over this period, we have been busy working on our transition, which I'm happy to report has been gradual and on track.

我擔任執行長已經一年多了，擔任董事長已經有半年了。在此期間，我們一直忙於過渡工作，我很高興地報告，過渡工作進展順利，並且進展順利。

There are 2 major things to this transition that has been happening behind the scenes. The first is grooming younger talent and leaders. The second is shifting to more focused investments in R&D from a previous focus on sales and marketing for the first 5 years.

這次轉變背後發生了兩件大事。一是培養年輕人才和領袖。第二是將前五年的重點從銷售和行銷轉向更重視研發投資。

And now let me elaborate. First, on grooming younger talent and leaders. Since the beginning of last year, we have witnessed many of our younger team members stepping up to take more responsibilities. These young men and women demonstrated their core value of commitment to our users. When COVID-19 first struck and disrupted our daily lives, many among our young team immediately took actions to source essential supplies and deliver to users in need.

現在讓我詳細說明一下。一是培養年輕人才和領袖。自去年年初以來，我們看到許多年輕的團隊成員挺身而出，承擔起更多的責任。這些年輕的男女展現了他們對用戶承諾的核心價值。當 COVID-19 首次襲擊並擾亂我們的日常生活時，我們年輕團隊中的許多人立即採取行動，購買必需品並將其運送給有需要的用戶。

When heavy rains struck Hunan in July, they sprang into action to source out-of-stock goods and coordinated logistics so that our users will not run out of daily necessities. This unforeseen event has accelerated their maturity and servanthood to our users and suppliers. We have been encouraged to see more with potential to become future leaders of our business. They make practical business decisions and executed soundly, exceeding our expectations.

7月湖南遭遇強降雨，他們立即組織力量，緊急調撥缺貨商品，協調物流，保障用戶生活必需品供應。這一意外事件加速了他們的成熟以及對我們的用戶和供應商的服務。我們受到鼓舞，看到更多有潛力成為我們業務未來領導者的人。他們做出了切實可行的商業決策並且有效執行，超出了我們的預期。

I'm proud to be able to work alongside with this young team. Despite the age, many of them has been with the company for a number of years and have matured on the job. They are shaping the future of this company, young talent that bring creativity and vigor and constantly innovates. You'll see more of them taking on critical roles in the next 6 to 12 months as we continue to create opportunities for them to step up.

我很自豪能夠與這支年輕的團隊一起工作。儘管年齡不大，但其中許多人已在公司工作多年，工作上也變得更加成熟。他們正在塑造這家公司的未來，他們是充滿創造力和活力、不斷創新的年輕人才。隨著我們繼續為他們創造機會，您將在未來 6 到 12 個月內看到更多人擔任關鍵職務。

And second, shifting to more focus and investment in research and development. We are already serving 867 million users. To leverage our strength of having a management with years of engineering training, we have been increasing our research development investments. This is a significant shift in strategy from our first 5 years when we were focusing much more on sales and marketing.

其次，更重視並投資研發。我們已經為 8.67 億用戶提供服務。為了發揮我們擁有多年工程培訓的管理團隊的優勢，我們一直在增加研發投資。與我們前五年更加重視銷售和行銷相比，這是一個重大的策略轉變。

Agriculture has been the main theme and the backbone of our business since the very beginning where we saw an opportunity to create value by bringing agriculture into a digital economy. Trained as engineers, my team and I have devoted ourselves to find technology solutions to implement across the agriculture supply chain. We have only scratched the surface after 6 years. There is still much more for us to do in agriculture, especially with technology. Therefore, we plan to deepen our investment in tech-enabled agriculture solutions to address critical needs in these sectors. This includes, first, bringing more agricultural products and agriculture communities into a digital economy; and the second, further improving efficiency in agriculture supply chains to meet user demand and reduce waste.

從一開始，我們就看到了透過將農業納入數位經濟來創造價值的機會，農業一直是我們業務的主要主題和支柱。我和我的團隊都接受過工程師培訓，致力於尋找可在整個農業供應鏈中實施的技術解決方案。六年過去了，我們才剛開始探索。我們在農業領域還有很多工作要做，特別是在技術方面。因此，我們計劃增加對科技型農業解決方案的投資，以滿足這些領域的關鍵需求。這包括：第一，將更多農產品和農業社區納入數位經濟；第二，進一步提高農業供應鏈效率，滿足用戶需求，減少浪費。

Over the past 6 years, Pinduoduo has provided consumers across China with wider variety of agricultural produce at better prices while helping farmers to increase their income.

6年來，拼多多為全國消費者提供了更豐富、更實惠的農產品，幫助農民實現了增收。

When we started 6 years ago, we were among the first to sell agriculture produce online. And now we are connecting 16 million farmers to 867.3 million consumers nationwide.

六年前我們剛開始創業時，是最早在網路上銷售農產品的公司之一。現在我們正在將全國 1,600 萬農民與 8.673 億消費者連結起來。

During China's Golden Week in October, agriculture-related orders in our platform surged 279% over the same period of last year. We hope Pinduoduo will be the go-to platform for quality agricultural products for farmers and consumers. We look forward to leveraging our platform to have more farmers in order to improve their livelihood and benefit their communities.

十一黃金週期間，平台涉農訂單年增279%。我們希望拼多多能夠成為農民和消費者購買優質農產品的首選平台。我們期待利用我們的平台幫助更多的農民改善他們的生活並造福他們的社區。

To this end, we will continue to focus our efforts in digital inclusion in agriculture industry. We will expand our core offering on Duo Duo Academy, upskill farmers on e-commerce and store operations. It helps them to control price, quantity and in a way, their own destiny in their own hands as they can sell directly to consumers.

為此，我們將繼續致力於農業產業的數位包容。我們將擴大多多學院的核心服務範圍，提升農民的電子商務和店鋪營運技能。這有助於他們控制價格、數量，在某種程度上，他們能夠將自己的命運掌握在自己手中，因為他們可以直接向消費者銷售產品。

In order to expedite agriculture digitization, we plan to maintain our 0 commission policy on agricultural products. At the same time, we will continue to improve consumer awareness and appreciation of agricultural produce, geographical indications and agricultural brands through technology innovations, such as live streaming, media marketing, et cetera. The more awareness consumers have, the more educated farmers are, the more value can be created to agriculture communities in China.

為了加速農業數位化進程，我們計劃維持農產品0佣金政策。同時，我們將持續透過直播、媒體行銷等技術創新，提高消費者對農產品、地理標示和農業品牌的認知和欣賞。消費者的意識越強，農民的教育程度越高，就能為中國的農業社區創造更大的價值。

We are also designing tech-enabled services to increase supply chain efficiency to agriculture sector. One of them is to meet local supply with local demand. At the same time, it helps reduce unnecessary transit to provide faster options for consumers. To further cut down transportation time and reduce food loss and waste, we are developing proprietary technology solutions like route planning, algorithm design, analytics and cold-chain optimization. This solution helps to lay the foundation for an infrastructure that is more sensible for agriculture produce and more environmentally sustainable.

我們也正在設計技術支援服務，以提高農業領域的供應鏈效率。其中之一就是以當地需求滿足當地供應。同時，它有助於減少不必要的運輸，為消費者提供更快捷的選擇。為了進一步縮短運輸時間並減少食物損失和浪費，我們正在開發專有技術解決方案，如路線規劃、演算法設計、分析和冷鏈優化。該解決方案有助於為更適合農業生產和更環境永續的基礎設施奠定基礎。

Our efforts in applying agriculture technology go beyond matching supply and demand and extend into identifying upstream technology solutions to improve productivity, nutritional profiles and environmental sustainability.

我們在應用農業技術方面的努力不僅限於匹配供需，還延伸到尋找上游技術解決方案，以提高生產力、營養狀況和環境永續性。

By strengthening agri-tech applications, we also hope to make agriculture attractive to a tech-savvy younger generation. A good example of our efforts in this area is our Smart Agriculture Competition. It has demonstrated that precision farming techniques can make real improvements to farm output. Some teams from our competition last year have started to commercialize their technology of strawberry cultivation, establishing their own start-ups and bring tangible productivity gains to farmers.

透過加強農業技術應用，我們也希望讓農業對精通科技的年輕一代具有吸引力。我們的智慧農業競賽就是我們在這一領域所做的努力的一個很好的例子。事實證明精準農業技術可以真正提高農業產量。我們去年參賽的一些團隊已經開始將他們的草莓種植技術商業化，建立自己的新創企業，並為農民帶來實際的生產力成長。

This year, we have joined forward with China Agricultural University and Zhejiang University with technical guidance from UN Food and Agriculture Organization and Wageningen University and Research.

今年，我們與中國農業大學、浙江大學聯合開展了合作，並得到了聯合國糧農組織和荷蘭瓦赫寧根大學及研究中心的技術指導。

In line with our priorities, we're expanding the challenge to accept not just yield, but the nutritional value, environmental sustainability and commercial viability. Contestants have adopted a multi-disciplinary approach, applying nutrition science, precision farming and other relevant technology to cultivate tomatoes.

按照我們的優先事項，我們正在擴大挑戰，不僅要接受產量，還要接受營養價值、環境永續性和商業可行性。參賽者採用多學科方法，應用營養科學、精準農業和其他相關技術來種植番茄。

The finalist teams come from cross-disciplinary background ranging from agricultural to computer sciences. Currently, they're remotely planting tomatoes in our smart greenhouse base in Yunnan. We're encouraged to see that 80% of the team members are in their 20s, bringing vitality and new ideas to a traditional agriculture sector.

入圍團隊來自農業到電腦科學等跨領域背景。目前，他們正在我們位於雲南的智慧溫室基地遠端種植番茄。我們很高興看到，團隊80%的成員都是20多歲的年輕人，為傳統的農業領域帶來了活力和新思維。

At this time, we are partnering with world-class agriculture institutes to offer these young agritech talents, tailored courses and trainings on topics such as greenhouse horticulture, crop management and modeling.

目前，我們正在與世界一流的農業機構合作，為這些年輕的農業科技人才提供溫室園藝、作物管理和建模等主題的客製化課程和培訓。

Agriculture is an industry with great potential for young people considering future in technology and who aspire to make impact for society. As an agri-focused platform, we want to leverage our platform and technology to provide more opportunities for young talents to join agriculture sector, working with them to apply technology to improve every link of agriculture supply chain.

對於那些考慮未來從事科技業並渴望為社會做出貢獻的年輕人來說，農業是一個具有巨大潛力的行業。作為一個以農業為中心的平台，我們希望利用我們的平台和技術為年輕人才提供更多加入農業領域的機會，與他們一起應用技術改善農業供應鏈的每個環節。

Investing in technology to improve agriculture sectors is important yet a challenging task. It requires our long-term commitment, and we will be patient and systematic. We hope that through our efforts, we can help build a smarter and more sustainable future for agriculture.

投資科技來改善農業部門是一項重要且又具有挑戰性的任務。這需要我們長期的承諾，我們將保持耐心和系統性。我們希望透過我們的努力，能夠幫助農業建立一個更聰明、更永續的未來。

Last quarter, we announced the launch of our 10 Billion Agriculture Initiative, which seeks to address critical needs in the agricultural sector and rural areas. The initiative will not be driven by profit or commercial goals, but strive the advancement of agritech, promote digital inclusion and provide agritech talent with greater motivation and sense of achievement.

上個季度，我們宣布啟動“百億農業計劃”，旨在解決農業部門和農村地區的關鍵需求。該計劃不會以盈利或商業目標為驅動，而是致力於農業科技的進步，促進數位包容，並為農業科技人才提供更大的動力和成就感。

Profit from the second quarter and any potential profit in the future quarters will go into this initiative until the final goal of CNY 10 billion is met. The profit from the third quarter will also go into this initiative.

第二季的利潤以及未來幾季的任何潛在利潤都將投入到這項計畫中，直到達到 100 億元的最終目標。第三季的利潤也將投入這項計畫。

After receiving board endorsement, we held an EGM at end of September and the initiative was approved by our shareholders.

在獲得董事會批准後，我們在九月底召開了一次特別股東大會，該倡議得到了股東的批准。

Pinduoduo is closely connected to the communities that we operate in. This point is crucial in our development and we in turn to support them to the best of our ability. Therefore, we are committed to take on more responsibility to society.

拼多多與我們營運所在的社區緊密相連。這一點對於我們的發展至關重要，我們也會盡最大努力支持他們。因此，我們致力於對社會承擔更多的責任。

In July, we sprung into action after heavy rains struck Hunan. We donated RMB 100 million to flood relief and launched a portal to support emergency relief distribution. The Duo Duo Grocery network in Zhengzhou took stock of food and emergency supplies and worked with suppliers inside and outside Hunan to secure and distribute necessities to our nearly 20,000 partners there.

7月，湖南遭遇強降雨，我們立刻行動。我們向抗洪救災捐款1億元人民幣，並開設了支援緊急救災物資發放的入口網站。鄭州多多買菜網路清點食品和緊急物資，並與湖南省內外供應商合作，為當地近2萬名合作夥伴採購和分發生活必需品。

In October, we also contributed to the relief effort in Shanxi in response to the heavy rain there, donating RMB 50 million to Shanxi Charity Foundation to carry out emergency disaster relief and post disaster risk construction work.

10月份，我們也為山西省對抗暴雨災害貢獻力量，向山西省慈善基金會捐款5000萬元人民幣，用於進行緊急救災和災後風險建設工作。

Looking forward, we pledge to do more to contribute to our society. We will continue to proactively leverage our platform and resources to serve our users, farmers, merchants and their communities better.

展望未來，我們承諾為社會做出更多貢獻。我們將繼續積極利用我們的平台和資源，更好地服務我們的用戶、農民、商家及其社區。

Thank you. And now let me pass the time to Tony.

謝謝。現在讓我把時間交給東尼。

Thank you, Lei. Hello, everyone. Let me begin by sharing highlights of some of our agriculture initiatives in the past quarter. Then I will discuss our financials for the quarter.

謝謝你，雷。大家好。首先，我想分享我們上個季度的一些農業舉措的亮點。然後我將討論本季的財務狀況。

First, as part of our efforts for the digital inclusion of farmers, we initiated and supported a series of agricultural promotion activities to strengthen the direct connection between farmers and the consumers. Autumn is a harvest season. And this September, we were a main platform of the Farmer's Harvest Festival and its golden autumn consumption season. We launched Duo Duo Harvest Hall and designed a series of initiatives to help farmers to sell better, including live streaming, merchant training, traffic support, et cetera. Over 280,000 agri merchants participated in our event this year, nearly double the number last year.

一是深入推動農民數位轉型，發起並支持一系列農業推廣活動，加強農民與消費者的直接聯繫。秋天是一個收穫的季節。今年9月，我們又成為農民豐收節和金秋消費季的主平台。我們推出了多多豐收堂，並設計了一系列措施來幫助農民更好地銷售，包括直播、商家培訓、流量支援等等。今年，共有超過28萬名農商參加我們的活動，數量幾乎是去年的兩倍。

In September, we joined the Ministry of Agriculture and Rural Affairs, Farmers Daily and the China Green Food Development Center to kick off the 2021 campaign of China's GI agricultural products tour. The campaign helps to promote the agriculture products and their regional heritage, helping to recognize quality agricultural products across China. To support the campaign, we provided the technical and platform support. We offered online and off-line training, including marketing and branding techniques tailored to GI products.

9月，我們聯合農業農村部、農民日報社、中國綠色食品發展中心啟動2021年中國地理標示農產品巡展活動。該活動有助於推廣農產品及其地理文化遺產，有助於識別中國各地的優質農產品。為了支持該活動，我們提供了技術和平台支援。我們提供線上和線下培訓，包括針對地理標誌產品的行銷和品牌推廣技術。

During China's Golden Week in October, a time when families typically reunite and enjoy meals together, we rolled out various initiatives to make more agriculture produce across the nation easily accessible through our platform. These initiatives helped to increase agriculture-related orders, which surged 279% over the same period last year.

在中國的「十一」黃金週期間，家人通常都會團聚在一​​起享用美食，我們推出了各種舉措，讓全國各地的更多農產品能夠透過我們的平台輕鬆獲得。這些措施帶動農業相關訂單增加，較去年同期成長279%。

Second, we are stepping up efforts to raise consumer awareness, appreciation and the demand for quality agricultural produce in the producing regions. In October, we launched our Apple Golden Week. We worked with farmers in 6 major apple-producing regions: Shanxi, Shandong, Gansu, Sichuan and Xinjiang to develop a grading and direct distribution food framework. This framework helps to provide consumers with delicious and high-quality apples and build awareness of the places where these apples were cultivated. As part of this initiative, our fruit selection teams stationed in these regions for months to study local markets and help train high-quality apple merchants with strong supply chain capabilities.

二是加強提升產區消費者對優質農產品的認知度、欣賞度與需求度。十月份，我們啟動了蘋果黃金週。我們與山西、山東、甘肅、四川、新疆6個蘋果主產區的果農合作，制定了分級直銷的食品架構。該框架有助於為消費者提供美味優質的蘋果，並提高人們對這些蘋果種植地的認識。作為該計劃的一部分，我們的水果精選團隊駐紮在這些地區數月，研究當地市場並幫助培訓具有強大供應鏈能力的優質蘋果商家。

Alongside these drives, we are also working with research institutes to implement industry standards for agricultural products. We partnered with the Jiangsu Freshwater Fisheries Research Institute, our industry standards for Chinese mitten crabs. These standards cover quality, size, packaging and transport which will provide consumers with a clear basis to make and inform the decision of their purchases. We hope to help farmers to promote their product, better meet the demand and the expectations of the consumers for quality goods and services and build a sustainable business on our platform. Therefore, we will continue to maintain our 0 commission policy for agricultural products.

除了這些措施之外，我們也與研究機構合作實施農產品產業標準。我們與江蘇省淡水水產研究所合作，制定中華絨螯蟹的產業標準。這些標準涵蓋品質、尺寸、包裝和運輸，將為消費者提供明確的依據，幫助他們做出購買決定。我們希望幫助農民推廣他們的產品，更好地滿足消費者對優質商品和服務的需求和期望，並在我們的平台上建立可持續發展的業務。因此，我們將繼續維持農產品0佣金政策。

Now let me walk through our third quarter results. Our annual active buyers for the last 12 months ending September 30, 2021 increased to 867.3 million, up 17.4 million from the prior quarter.

現在讓我介紹一下我們第三季的業績。截至 2021 年 9 月 30 日的過去 12 個月，我們的年度活躍買家增至 8.673 億，較上一季增加 1,740 萬。

Our MAU in Q3 reached 741.5 million. This is up 15% compared to the same quarter in 2020.

我們第三季的每月活躍用戶達到了 7.415 億。與 2020 年同期相比，成長了 15%。

Given our current scale, our user growth will inevitably be more moderate going forward. At the same time, as we serve a larger user base, we also face more diversified and even evolving user needs. Our task has become increasingly difficult. We hope that our younger team leaders could embrace the challenges and continue to serve users' needs innovatively.

鑑於我們目前的規模，未來我們的用戶成長將不可避免地更加溫和。同時，隨著我們服務的用戶群越來越大，我們也面臨著更加多樣化、甚至不斷發展的用戶需求。我們的任務變得越來越艱鉅。希望年輕的團隊領導者能迎接挑戰，並繼續以創新的方式服務使用者的需求。

In terms of P&L, our total revenues in the quarter end September 30, 2021 were RMB 21.5 billion, up 51% from RMB 14.2 billion in the same quarter last year. Excluding revenues from our 1P trials, our total revenue grew by 55% to RMB 21.4 billion in Q3 2021, and the key driver was online marketing services.

就損益而言，我們截至 2021 年 9 月 30 日的季度總收入為 215 億元，較去年同期的 142 億元成長 51%。不計1P試驗的收入，2021年第三季我們的總收入成長55%，達到人民幣214億元，主要驅動力是網路行銷服務。

Online marketing services revenue was RMB 17.9 billion this quarter, up 44% compared to the same period last year, primarily due to the increase in merchant activities.

本季網路行銷服務營收為 179 億元，較去年同期成長 44%，主要因商家活動增加。

Our transaction service revenues this quarter amounted to RMB 3.5 billion, which is up 161% compared with the same period last year. The increase in our transaction service revenues was due to 2 primary factors: number one, the increase in transaction processing fees; number two, the service revenues that we recognized in connection with Duo Duo Grocery for which we provided fulfillment and other related services.

本季我們的交易服務收入達35億元人民幣，比去年同期成長161%。我們的交易服務收入的成長主要歸因於兩個因素：第一，交易處理費的增加；第二，我們確認的與多多雜貨相關的服務收入，我們為其提供履行和其他相關服務。

Revenue from the merchandise sales from our 1P trials was [RMB 82.1 million] (corrected by company after the call) in Q3 2021 as compared to RMB 2 billion in the preceding quarter. Our 1P business was a temporary solution to meet the demand of our users on products which our merchants could not fulfill. As we see more products offering from our merchants, we expect contribution from 1P trials to be insignificant.

2021 年第三季度，我們 1P 試驗的商品銷售收入為 [人民幣 8,210 萬元]（電話會議後公司已更正），而上一季為人民幣 20 億元。我們的1P業務是為了滿足用戶對商家無法滿足的產品的需求而採取的臨時解決方案。隨著我們看到商家提供的產品越來越多，我們預計 1P 試用的貢獻將變得微不足道。

Now moving on to costs and expenses. Our total cost of revenues increased from RMB 3.3 billion in Q3 2020 to RMB 6.6 billion this quarter. The increase was primarily due to higher cost of payment processing fees, cloud services fees and delivery and storage fees.

現在討論成本和費用。我們的總收入成本從 2020 年第三季的 33 億元人民幣增加到本季的 66 億元。成長的主要原因是支付處理費、雲端服務費以及運送和倉儲費的成本增加。

Total operating expenses this quarter were RMB 12.8 billion as compared to RMB 12.2 billion in the same quarter of 2020. On a total non-GAAP basis, operating expenses were RMB 11.7 billion as compared to RMB 11.3 billion in the same quarter a year ago.

本季總營運費用為 128 億元，而 2020 年同期為 122 億元。以非美國通用會計準則計算，本季營業費用為 117 億元，去年同期為 113 億元。

Our non-GAAP sales and marketing expenses this quarter is RMB 9.7 billion, decreasing 1% compared to the same quarter of 2020. On a non-GAAP basis, our sales and marketing expenses as a percentage of our revenues this quarter was about 45% as compared to 89% and the 69% for the same quarter in 2019 and in 2020. The continued reduction in sales and marketing expenses as a percentage of revenue reflects our efforts to proactively reduce sales and marketing expenses as we gravitate towards more investment on R&D.

本季我們的非公認會計準則銷售和行銷費用為人民幣 97 億元，較 2020 年同期下降 1%。依照非公認會計準則，本季我們的銷售和行銷費用佔收入的百分比約為 45%，而 2019 年同期和 2020 年同期分別為 89% 和 69%。銷售和行銷費用佔收入的百分比持續下降反映了我們積極減少銷售和行銷費用的努力，因為我們傾向於在研發上投入更多資金。

On a non-GAAP basis, our general and administrative expenses was RMB 178.1 million compared to RMB 132.6 million in the same quarter of 2020.

以非公認會計準則計算，我們的一般及行政開支為人民幣 1.781 億元，而 2020 年同期為人民幣 1.326 億元。

Our non-GAAP research and development expenses were RMB 1.9 billion, an increase of 30% from RMB 1.4 billion in the same quarter of 2020. This increase in R&D was primarily due to an increase in headcount and the recruitment of more experienced R&D personnel.

我們的非公認會計準則研發費用為 19 億元，較 2020 年同期的 14 億元人民幣成長 30%。研發費用的增加主要是因為員工數量的增加和招募更有經驗的研發人員。

As we continue to strengthen our technique bench to lay the foundation for future sustainable growth and continue improving our services to meet the evolving user demands, we are committed to expand our investments in R&D and expect a continued increase in R&D expenses.

隨著我們不斷加強技術基礎，為未來的永續成長奠定基礎，並不斷改進我們的服務以滿足不斷變化的用戶需求，我們致力於擴大對研發的投資，並預計研發費用將繼續增加。

To sum up, operating profit for the quarter was RMB 2.1 billion on a GAAP basis compared with operating loss of RMB 1.3 billion in the same quarter of 2020. Non-GAAP operating profit was RMB 3.3 billion, compared with operating loss of RMB 339.8 million in the same quarter of 2020. Our non-GAAP operating profit as a percentage of our revenue improved from minus 2.4% in Q3 2020 to 15.2% in Q3 2021.

綜上所述，本季以美國通用會計準則計算的營業利潤為 21 億元，而 2020 年同期的營業虧損為 13 億元人民幣。非美國通用會計準則營業利潤為人民幣 33 億元，而 2020 年同期營業虧損為 3.398 億元。我們的非公認會計準則營業利潤佔收入的百分比從 2020 年第三季的-2.4% 提高到 2021 年第三季的 15.2%。

Net income attributable to ordinary shareholders was RMB 1.6 billion as compared to net loss of RMB 784.7 million in the same quarter last year.

歸屬於普通股股東的淨利為16億元人民幣，去年同期的淨虧損為7.847億元。

Basic earnings per ADS was RMB 1.31 and the diluted earnings per ADS was RMB 1.15 compared with basic and diluted net loss per ADS of RMB 0.66 in the same quarter of 2020.

每股美國存託憑證基本收益為人民幣 1.31 元，每股美國存託憑證攤薄收益為人民幣 1.15 元，而 2020 年同期每股美國存託憑證基本和攤薄淨虧損均為人民幣 0.66 元。

Non-GAAP net income attributable to ordinary shareholders was RMB 3.2 billion compared with net income of RMB 466.4 million in the same quarter last year.

非美國通用會計準則下，歸屬於普通股股東的淨利為32億元人民幣，去年同期淨利為4.664億元。

Non-GAAP diluted earnings per ADS was RMB 2.18 compared with non-GAAP diluted net earnings per ADS of RMB 0.33 in the same quarter of 2020.

非美國通用會計準則每股美國存託憑證攤薄收益為 2.18 元人民幣，而 2020 年同期非美國通用會計準則每股美國存託憑證攤薄淨收益為 0.33 元。

In August, we announced the launch of 10 Billion Agriculture Initiative, which aims to address the critical needs in the agricultural sector and the rural areas. The initiative would not be driven by profits or commercial goals, but strive to facilitate the advancement of agritech, promote digital inclusion and provide agritech talent with greater motivation and a sense of achievement. The initiative received shareholders' approval at the EGM held at the end of September. Profits from the third quarter will also go into this initiative. We expect the initiative to have a near-term impact on earnings per share for shareholders. That completes the profit and loss statement for the third quarter.

今年8月，我們宣布啟動“百億農業計劃”，旨在解決農業和農村地區的關鍵需求。該計劃不以盈利或商業目標為驅動，而是致力於促進農業科技進步，促進數位包容，為農業科技人才提供更大的動力和成就感。該倡議在九月底舉行的臨時股東大會上獲得了股東的批准。第三季的利潤也將用於這項計劃。我們預計此舉措將對股東每股盈餘產生短期影響。這樣就完成了第三季的損益表。

Net cash flow provided by operating activities was RMB 8.7 billion compared with RMB 8.3 billion in the same quarter of 2020.

經營活動產生的淨現金流為人民幣87億元，2020年同期為人民幣83億元。

As of September 30, 2021, the company had RMB 97.9 billion in cash, cash equivalents and short-term investments.

截至2021年9月30日，本公司擁有現金、現金等價物及短期投資979億元人民幣。

With that, I conclude my prepared remarks.

我的發言就此結束。

Thank you, Tony. For today's Q&A session, we have Lei, our Chairman and Chief Executive Officer; and Tony, our VP of Finance on the line. Preston will help translate Lei's remarks in Chinese to English for ease of reference. Operator, we may now take questions from the first analyst on the line.

謝謝你，托尼。今天的問答環節，我們邀請到了董事長兼執行長雷軍；我們的財務副總裁托尼接聽了電話。普雷斯頓將幫助雷軍的演講從中文翻譯成英文，以便於參考。接線員，我們現在可以回答第一位分析師的問題。

(Operator Instructions) Your first question comes from the line of Natalie Wu of Haitong International.

（操作員指示）您的第一個問題來自海通國際的 Natalie Wu。

I have two questions here. First of all, it seems that your sales and marketing expenses is tapering off. Just wondering, are you changing your ROI for sales and marketing spending? How should investors understand your future sales and marketing strategies?

我這裡有兩個問題。首先，看起來你們的銷售和行銷費用正在逐漸減少。只是想知道，您是否會改變銷售和行銷支出的投資報酬率？投資人應該如何理解您未來的銷售和行銷策略？

This is also the second consecutive quarter that your company is showing both non-GAAP and GAAP profit. Just wondering, are you prioritizing profitability over growth going forward? And should the investors expect full year profitability for 2021 and going onwards as well?

這也是貴公司連續第二季同時實現非 GAAP 和 GAAP 利潤。只是想知道，您是否優先考慮盈利能力而不是未來的成長？投資者是否應該預期 2021 年及以後全年都能獲利？

And my second question is regarding the agriculture initiatives. Just wondering, Lei Chen, can you provide an update on the CNY 10 billion initiative you started last quarter? Has any investments been reflected in the latest financial results? Which financial line items has been affected?

我的第二個問題是關於農業的措施。我只是想知道，陳雷，您能否提供上個季度啟動的 100 億元人民幣計劃的最新進展？最新的財務結果是否反映出任何投資？哪些財務項目受到了影響？

[Interpreted] Thank you, Natalie, for the question. And to answer your question, our high standards for sales and marketing investments ROI have not changed. But as our user base expands and our user needs diversify, we are also constantly applying micro adjustment to our ROI model. And the goal is actually to better serve our users' diversified demand.

[口譯] 娜塔莉，謝謝你的提問。回答您的問題，我們對銷售和行銷投資回報率的高標準沒有改變。但隨著用戶群的擴大和用戶需求的多樣化，我們也不斷對ROI模型進行微調。而目標其實是為了更能滿足用戶的多樣化需求。

So when we were just starting, we were hoping that with the application of technology, we can serve the wider consumer pool for our principle of benefit all. So when our user base was relatively small, the investment goal was actually to attract more users to get to know about us, try different features and also try out our platform.

所以我們在剛開始的時候，是希望透過科技的應用，能夠服務到更廣大的消費者群體，實現我們惠及所有人的原則。因此，當我們的用戶群相對較小時，投資目標實際上是吸引更多用戶了解我們、嘗試不同的功能並試用我們的平台。

Now as our user base is much larger, with more and more users starting to use Pinduoduo, our new challenges now is how can we constantly encourage them to try out new categories to explore new experiences and how can we actually meet their changing and much higher expectations of us so that we can improve our trust and build longer-term user mindshare.

現在，隨著我們的用戶群越來越大，越來越多的用戶開始使用拼多多，我們現在面臨的新挑戰是如何不斷鼓勵他們嘗試新的類別，探索新的體驗，以及如何真正滿足他們不斷變化和更高的期望，以便我們能夠提高信任度並建立更長期的用戶認知。

It is a challenging task to constantly satisfy users, especially given that we have such a large and diversified base of users. It is also the challenge for our new generation of leaders. We are also learning and adjusting through iteration. But one thing that is not changing is that we will continue to hold ourselves to high ROI standards in terms of sales and marketing and spend our sales and marketing dollars in a highly disciplined manner.

不斷讓用戶滿意是一項具有挑戰性的任務，特別是考慮到我們擁有如此龐大且多樣化的用戶群。這也是我們新一代領導人面臨的挑戰。我們也在透過迭代來學習和調整。但有一件事是不會改變的，那就是我們將繼續在銷售和行銷方面堅持高投資回報率標準，並以高度自律的方式花費我們的銷售和行銷資金。

At the same time, we are also stepping up our investments and investing patiently for long-term development of our company. You may have noticed that we are increasing our R&D investments, which is a key area for our future investments.

同時，我們也在加大投入，為公司的長遠發展耐心投入。大家可能已經注意到，我們正在加大研發投入，這是我們未來投資的重點領域。

And in your question, you also touched upon profitability, so let me ask Tony to help address that.

在您的問題中，您還談到了盈利能力，因此請托尼幫助解決這個問題。

Okay. Natalie, coming back to your question regarding the consecutive being profitable for the past 2 quarters, the main contribution of our profitability in the past 2 quarters is the leverage efforts from sales and marketing expenses showing a decline in percentage of revenue.

好的。娜塔莉，回到你關於過去兩個季度連續盈利的問題，過去兩個季度我們盈利的主要貢獻是銷售和營銷費用的槓桿作用，收入百分比下降。

But for us, the profitability is not any team's KPI internally. We are more focused on the long-term investment to address users' fundamental needs.

但對我們來說，獲利能力並不是任何球隊內部的KPI。我們更注重長期投入，解決用戶的根本需求。

As we have been communicating with the market, to us, investment into sales and marketing is similar in nature to capital expenditure which crystallize as user mindshare, a long-term assets for us. So this is a strategy that we have been digitally executing for the first 5 years and an area where we will continue to practice financial prudence.

正如我們一直與市場溝通的那樣，對我們來說，對銷售和行銷的投資本質上類似於資本支出，它具體化為用戶心智份額，這對我們來說是一項長期資產。因此，這是我們在數位化領域前五年一直執行的策略，也是我們將繼續實行財務審慎的領域。

It is worth highlighting that we are shifting our focus and investments towards R&D and expect to step up our investment there to lay the foundation for the solid long-term growth. As a result, we will expect R&D expenses to increase going forward.

值得強調的是，我們正在將重點和投資轉向研發，並希望加大研發投入，為長期穩固的成長奠定基礎。因此，我們預計未來研發費用將會增加。

Coming to your second question, I think Lei will address that question, but let me just point out one comment on that. I think you mentioned about the financial impact in the third quarter for the CNY 10 billion program. Since this program has only get the EGM approval at the end of September, so in the Q3 financial results, there's nothing has been booked or reflected yet.

關於你的第二個問題，我想雷會回答這個問題，但我只想指出一點評論。我想您提到了100億元人民幣計劃在第三季的財務影響。由於該計劃僅在 9 月底獲得 EGM 批准，因此在第三季財務結果中尚未登記或反映任何內容。

Lei, I pass the floor back to you.

雷，我現在把發言權交還給你。

[Interpreted] I'd like to add one more point here. So after we announced our CNY 10 billion agri initiative last quarter, we have received many quality product proposals and advices from various stakeholders in the industry. So together with my team, I'm also diligently starting various proposals. And so that will conclude the answer for this.

[翻譯]我想在這裡補充一點。因此，自從我們上個季度宣布了 100 億元人民幣的農業計劃後，我們收到了許多來自行業各個利益相關者的優質產品提案和建議。所以我和我的團隊也在努力開始各種提案。這樣，這個問題的答案就結束了。

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

您的下一個問題來自 Jefferies 的 Thomas Chong。

I have two questions. The first question is about the competitive landscape in online shopping as well as the impact to our site due to the increase in popularity in live streaming online shopping.

我有兩個問題。第一個問題是關於網上購物的競爭格局以及直播網購的流行對我們網站的影響。

And my second question is about our support measures. Can management highlight about the support measures for merchants? And how should we expect the growth rate between GMV and advertising due to the support measures?

我的第二個問題是關於我們的支持措施。管理階層能否重點介紹一下對商家的支持措施？那麼，在支持措施的帶動下，GMV和廣告的成長率該如何預期呢？

[Interpreted] Thank you, Thomas, for your question. Let me address this question.

[口譯] 湯瑪斯，謝謝你的提問。讓我來回答這個問題。

So in my view, e-commerce in China is a huge industry, full of vibrancy and potential. As we see mobile technologies continue to develop and the relevant infrastructure continues to mature, and also, at the same time, consumer demand is also constantly evolving. With all these moving pieces and these changes, commercially, we do expect more and more platforms entering this space, and this would make commercial sense.

所以在我看來，中國的電子商務是一個巨大的產業，充滿活力和潛力。我們看到行動技術不斷發展，相關基礎設施不斷成熟，同時消費者需求也不斷發展。隨著所有這些活動部件和變化，從商業角度來看，我們確實預計會有越來越多的平台進入這個領域，而且這具有商業意義。

At the same time, we also noticed that the recent issued rules and regulatory measures are promoting healthy competition and the orderly development of the entire e-commerce sector. In our view, we think that more competition is always good in terms of promoting positive benefits and providing benefits to users, the industries and all the companies involved.

同時，我們也注意到，近期推出的規則和監管措施正在促進整個電子商務產業的良性競爭和有序發展。我們認為，更多的競爭總是好的，因為它能帶來正面的效益，為使用者、產業和所有相關公司帶來好處。

For example, we have seen platform companies, including the short video platforms entering the e-commerce sector. And to us, it is not surprising to see these companies with such a huge user base and high user frequency, such as the short video platforms, to enter this space. At the same time, we are also seeing more and more platforms with sizable user base and engagement level entering this space.

例如我們看到平台公司，包括短視頻平台進入電商領域。對於我們來說，看到短視頻平台等擁有龐大用戶群和高使用頻率的公司進入這個領域並不奇怪。同時，我們也看到越來越多擁有龐大用戶群和參與度的平台進入這一領域。

So just now discussed external factors, but I think it's always important to come back and zoom in into ourselves and see what kind of value are we providing. So Pinduoduo actually started off from selling agricultural produce. We always aim to help address users' daily necessity and basic needs. So in my view, this sets us apart from the other e-commerce players and potential new entrants.

剛才討論了外部因素，但我認為回過頭來審視我們自己並看看我們能提供什麼樣的價值總是很重要的。所以拼多多其實是從賣農產品起家的。我們始終致力於協助解決使用者的日常必需品和基本需求。因此，在我看來，這使我們有別於其他電子商務參與者和潛在的新進入者。

And so for us, how to serve our nearly 870 million users better and remain user-centric is our Ben Fen as a company. And so the question that we constantly ask ourselves are, how could we continuously iterate to serve our users better? At the same time, are we creating value for the society? Are we promoting a green environment and sustainability? So for us, our key strategy as a company has always been to gain user trust and to create value for society, which we believe will also become our long-term assets.

那麼對我們來說，如何更好地服務我們近8.7億用戶，始終以用戶為中心，是我們作為一個公司的本分。因此，我們不斷問自己的問題是，我們如何不斷迭代以更好地為用戶服務？同時，我們是否為社會創造了價值？我們是否在促進綠色環境和永續發展？因此，對我們來說，作為一家公司，我們的關鍵策略一直是贏得用戶信任並為社會創造價值，我們相信這也將成為我們的長期資產。

My next question is about how should we think about the support measures to merchants and the growth rate between GMV and advertising as a result of the support measures?

我的下一個問題是，我們應該如何看待對商家的支持措施，以及支持措施帶來的GMV和廣告之間的成長率？

Thank you, Thomas. Let me try to address your question. I think your question is pretty much linked to the outlook of monetization. Let me share some of our views.

謝謝你，托馬斯。讓我嘗試回答你的問題。我認為您的問題與貨幣化的前景密切相關。我來分享一下我們的一些觀點。

Our strategy has always been serving our users well, as Lei just mentioned in his response. We believe the revenue growth and monetization are a natural result of that. And our merchants ROI is already reflected in our revenues. As you can see, our revenue performance this quarter shows the healthy ROI merchants are seeing when they sell more on our platform.

我們的策略一直是服務好用戶，正如剛才雷總的回答中所提到的。我們相信收入成長和貨幣化是自然的結果。我們的商家投資報酬率已經反映在我們的收入中。如您所見，我們本季的收入表現表明，當商家在我們的平台上銷售更多產品時，他們獲得了健康的投資報酬率。

We do not focus on the monetization on a quarterly basis. It is a result of user satisfaction and merchant ROI. And our merchant, the monetization rate has been fluctuated in the past and it will be the case going forward.

我們並不關注按季度進行的貨幣化。這是用戶滿意度和商家投資報酬率的結果。我們的商家，貨幣化率在過去一直處於波動狀態，未來也將如此。

We are also raising the bar on the quality of merchants and the products to meet our users' needs to help promote agriculture produce to users and strengthen PDD as a go-to platform for agricultural products. Therefore, we are committed to keeping a 0 commission policy for agriculture and fresh produce.

我們也正在提高商家和產品的品質標準，以滿足使用者的需求，協助向使用者推廣農產品，並加強拼多多作為農產品首選平台的地位。因此，我們致力於對農業和新鮮農產品保持0佣金政策。

Your next question comes from the line of Eddy Wang of Morgan Stanley.

您的下一個問題來自摩根士丹利的 Eddy Wang。

I also have two questions. The first one is regarding the -- our efforts to attract more brands and branded products merchants on our platform. we noticed that the merchandise sales actually declined significantly on a quarter-on-quarter basis. Should we suppose that this is a very ideal progress for us in the last quarter actually attract more the branded brands in our platform? That's question number one.

我也有兩個問題。第一個是關於我們努力吸引更多品牌和品牌產品商家加入我們的平台。我們注意到，商品銷售額實際上比去年同期大幅下降。我們是否應該認為這對我們上個季度來說是一個非常理想的進展，實際上在我們的平台上吸引了更多的品牌？這是第一個問題。

And the second question is about the rather weak consumption environment in China since the third quarter. So as we see that some of the competitor platform, they actually have been affected by this weak consumption significantly but seem to be very resilient. I just want to hear your view on how this -- the weak consumption had been affect on PDD, especially given that we have higher exposure to the agriculture products and the -- for example, value for money. Does that mean that our GMV growth or revenue growth actually is more resilient under this environment?

第二個問題，第三季以來，中國的消費環境比較疲軟。因此，我們看到一些競爭對手的平台實際上受到了這種疲軟消費的嚴重影響，但似乎具有很強的韌性。我只是想聽聽你對疲軟的消費對 PDD 造成的影響的看法，特別是考慮到我們對農產品的曝險較大，而且——例如，物有所值。這是否意味著我們的 GMV 成長或營收成長在這種環境下實際上更具彈性？

[Interpreted] So let me answer your question. I believe your first question is on brand. So as our user base increased, we are noticing that our users need and demand are also becoming more and more diversified. And at the same time, we are observing that our users' needs, they do require more and they also require more abundant supply of product offering and brand. So from our view, we do think that in terms of getting more brands, this process will do take some time.

[翻譯] 那麼讓我來回答你的問題。我相信您的第一個問題是關於品牌的。因此，隨著用戶群的增加，我們注意到用戶的需求也變得越來越多樣化。同時，我們觀察到用戶的需求，他們確實需要更多，也需要更豐富的產品和品牌供應。因此，從我們的角度來看，我們確實認為，就獲得更多品牌而言，這個過程確實需要一些時間。

At the same time, the recent anti-two-choose-one measures have may -- had some initial impact, whereby we have noticed that a number of brands finally there to come to the platform and start to operate. And -- but however, store opening is a gradual process, which requires both the platform and the brands to put in resources, energy and time and to build trust and foster a successful partnership. So we do expect this to take some time and the process to be more gradual.

同時，最近的反二選一措施可能已經產生了一些初步影響，我們注意到一些品牌最終來到該平台並開始營運。但是，開店是一個漸進的過程，需要平台和品牌投入資源、精力和時間，建立信任並促進成功的合作關係。因此，我們確實預計這將需要一些時間，並且這個過程將更加漸進。

Please hold and the conference will resume shortly. Thank you for your patience.

請稍候，會議即將恢復。感謝您的耐心。

(technical difficulty)

（技術難度）

(Operator Instructions) Your next question comes from the line of Joyce Ju of Bank of America.

（操作員指示）您的下一個問題來自美國銀行的 Joyce Ju。

I have two questions. My first question is related to the regulatory environment. Could management give us an update on the recent regulatory environment, specifically the Tencent, Alibaba opening up affect our operations? May you also share some colors on if there are any regulatory measures that affect your operations.

我有兩個問題。我的第一個問題與監管環境有關。管理階層能否向我們介紹最近的監管環境，特別是騰訊、阿里巴巴的開放對我們營運的影響？您是否也想分享一些有關是否有任何監管措施影響您營運的資訊？

And second, my question is we have seen our 1P business continue to decline in the third quarter. Does this mean that you have winded down this business? Any comment on the future 1P business contribution?

其次，我的問題是，我們發現我們的 1P 業務在第三季繼續下滑。這是否意味著您已經結束了這項業務？對未來 1P 業務貢獻有何評論？

[Interpreted] So we think the recent series of regulatory measures would help to promote the high-quality growth of the platform economy and the entire industry. So we have always been fully embracing and supporting the regulatory measures, and we'll continue to firmly and thoroughly implement all relevant guidance and measure.

[解讀]所以我們認為，近期一系列監管措施，有助於促進平台經濟和整個產業的高品質成長。因此，我們始終全力擁護和支持監管措施，並將繼續堅定、徹底地執行所有相關指導和措施。

We saw that many companies are taking action and continuing to optimize under the backdrop of these changes brought forth by regulations in the industry. We are one of these companies. Our company as a whole is proactively taking this as an opportunity to improve ourselves and also to further enhance compliance with regulation.

我們看到，在產業法規帶來的變化背景下，許多企業都在行動，不斷優化。我們就是其中一家公司。我們整個公司正積極以此為契機來完善自己，並進一步提高對法規的遵守程度。

So in the short term, you may notice the impact from these changes. But in the medium to longer term though, we believe that these changes would be very beneficial to users, the industry and the companies involved in this industry.

因此在短期內，您可能會注意到這些變化的影響。但從中長期來看，我們相信這些變化將對用戶、行業以及參與該行業的公司非常有利。

Joyce, let me...

喬伊斯，讓我…

[Interpreted] We are also following up the development of opening up as you mentioned, as we believe that such measure would set a great example for platform companies and the entire sector. So we believe such measures would eventually be very beneficial for the users and the healthy development of the sector in the long run.

[翻譯]正如您所說，我們也在關注開放的進展，因為我們相信這樣的舉措將為平台公司和整個行業樹立良好的榜樣。因此，我們相信，從長遠來看，這些措施最終將對用戶和該行業的健康發展非常有利。

Joyce, let me come to address your question regarding the 1P business. As we mentioned at the outset, when we started this 1P business, we already stated very clearly our 1P trial is a temporary measure to offer products that our consumers want but our merchants cannot offer at that time. So 1P is not a strategic priority for us. As we see more product offering from merchants on our platform, we do not expect a significant revenue contribution from 1P going forward.

喬伊斯，讓我來回答你關於 1P 業務的問題。正如我們一開始提到的，當我們開始這項 1P 業務時，我們已經非常明確地表示，我們的 1P 試用是一種臨時措施，用於提供消費者想要但商家當時無法提供的產品。因此 1P 對我們來說不是戰略重點。隨著我們看到平台上商家提供的產品越來越多，我們預計未來 1P 不會帶來顯著的收入貢獻。

Thank you, everyone, for joining us on the conference call today. If you have any further questions, please refer to our IR team's e-mail address. Thank you, and have a great day.

感謝大家今天參加我們的電話會議。如果您有任何其他問題，請參閱我們的 IR 團隊的電子郵件地址。謝謝您，祝您有愉快的一天。

This concludes today's conference call. Thank you for participating. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。

[Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]

[本記錄中標記為 [已翻譯] 的部分由現場翻譯人員朗讀。 ]