拼多多 (PDD) 2021 Q2 法說會逐字稿

Good day and thank you for standing by. Welcome to the Pinduoduo Second Quarter 2021 Earnings Conference Call. (Operator Instructions)

您好，感謝您的支持。歡迎參加拼多多2021年第二季業績電話會議。 （操作員指令）

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

請注意，今天的會議正在錄音。 （操作員指令）

I would now like to hand the conference over to your speaker today, [Jason Xu]. Please go ahead.

現在我想將會議交給今天的發言人 [Jason Xu]。請繼續。

All right. Thank you, operator. Hello, everyone, and thank you for joining us today. Pinduoduo earnings release was distributed earlier and is available on the IR website at investor.pinduoduo.com as well as through GlobeNewswire services.

好的。謝謝您，接線生。大家好，感謝大家今天加入我們。拼多多收益報告已於早些時候發布，可在 IR 網站 investor.pinduoduo.com 以及 GlobeNewswire 服務上查閱。

On today's call, our Chairman and Chief Executive Officer, Chen Lei, will make some general remarks on our performance for the past quarter and our strategic focus going forward. Our VP of Finance, Tony Ma, will then elaborate further on specific strategic initiatives and take us through our financial results for the second quarter ended June 30, 2021.

在今天的電話會議上，我們的董事長兼執行長陳雷將對我們上個季度的業績以及未來的策略重點發表一些總體評論。我們的財務副總裁 Tony Ma 將進一步闡述具體的策略舉措，並向我們介紹截至 2021 年 6 月 30 日的第二季財務業績。

Before we begin, I would like to refer you to our safe harbor statement in the 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 the non-GAAP measures to GAAP measures.

在我們開始之前，我想請您參閱適用於本次電話會議的收益新聞稿中的安全港聲明，因為我們將做出某些前瞻性陳述。此外，本次電話會議也包括某些非公認會計準則財務指標的討論。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。

So 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, Jason. Hello, everyone, and thank you for joining our results announcement for the second quarter of 2021.

謝謝你，傑森。大家好，感謝您參加我們的2021年第二季業績發表會。

Thanks to our users' trust, our total revenue for this quarter, excluding revenue from merchandise sales, was RMB 21.1 billion. This represents a year-on-year increase of 73%. Our active buyers reached 849.9 million for the 12 months ending on June 30. Over the quarter, average MAU increased to 738.5 million, representing 87% of our annual active buyers.

感謝用戶的信任，本季我們不包括商品銷售收入的總收入為人民幣211億元。這比去年同期增長了 73%。截至 6 月 30 日的 12 個月內，我們的活躍買家數量達到 8.499 億。

Our results this quarter demonstrate our enduring commitment to serve our users as well as their trust in us. We feel fortunate and are grateful for their consistent support, and we will continue to do our best to serve them and all our stakeholders.

本季的業績證明了我們持續致力於服務使用者的承諾以及使用者對我們的信任。我們感到幸運並感謝他們一貫的支持，我們將繼續竭盡全力為他們和我們所有的利害關係人提供服務。

Pinduoduo takes our responsibility to our users and society very seriously. Without them and their support, we will not be where we are today. This is why we are always there with them and for them in their times of need. After heavy rains struck Hunan province last month, we immediately mobilized our networks, our partners to provide relief. Close to 20,000 Duo Duo Grocery pickup points in those city helped to distribute emergency supplies to residents living in their vicinity.

拼多多高度重視對使用者和社會的責任。如果沒有他們和他們的支持，我們就不會有今天的成就。這就是為什麼我們總是在他們需要的時候陪伴在他們身邊並為他們提供幫助。上個月湖南省遭遇強降雨後，我們立即調動我們的網路和合作夥伴提供救災物資。這些城市有近 20,000 個 Duo Duo Grocery 提貨點協助向周邊居民分發緊急物資。

With Hunan's agriculture supplies disrupted by COVID-19 and the rain, we linked up Hunan's Duo Duo Grocery network with neighboring networks, including Shandong and Anhui, to ensure that residents continue to have the supplies they needed at stable prices. As user demand in Hunan rose significantly, we also increased our warehousing by 4x and doubled our manpower there. In addition to these efforts, we contributed RMB 100 million towards the rescue and relief efforts.

由於湖南的農業供應受到新冠肺炎疫情和降雨的影響，我們將湖南的多多雜貨網絡與山東、安徽等周邊地區的網絡連接起來，確保居民繼續以穩定的價格獲得所需的供應。隨著湖南省用戶需求大幅上升，我們也將湖南省的倉儲規模擴大了4倍，人力也增加了一倍。除此之外，我們也為救援工作捐款1億元人民幣。

Our support for Hunan is in the same spirit as our earlier initiatives to leverage our platform to contribute to society. When COVID-19 disrupted traditional agricultural supply chains last year, we launched our Help the Farmers initiative, connecting farmers directly with consumers across the country. Through our various efforts, we helped over 1.13 million farmers sell over 2.06 million tons of agricultural produce by end of 2020. This helped farmers reduce spoilage and losses and consumers get what they needed.

我們對湖南的支持，與我們之前利用我們的平台為社會做出貢獻的精神是一樣的。去年，當新冠疫情擾亂了傳統農業供應鏈時，我們啟動了「幫助農民」計劃，將農民與全國各地的消費者直接聯繫起來。透過多種形式，截至2020年底，我們幫助113萬餘農戶銷售農產品206萬餘噸，幫助農民減少了損失，並保障了消費者的購買需求。

As consumers turn to online grocery shopping to minimize contact, existing delivery systems become overwhelmed, resulting in significant backlog. We responded by launching Duo Duo Grocery, a next-day self-pickup service that connects local demand and supply. Duo Duo Grocery unclogged the backlog, providing users more affordable and fresher produce in an efficient manner. It has since become an important offering to our users, helping to create and preserve millions of jobs around the entire agri-food value chain in the process. It has also proven it works as a support network in times of need. And so we will continue to improve it to benefit users, farmers and their communities.

隨著消費者轉向線上購物以盡量減少接觸，現有的配送系統變得不堪重負，導致大量積壓。為了因應這項變化，我們推出了 Duo Duo Grocery，這是一項連接本地需求和供應的隔日自提服務。 Duo Duo Grocery 解決了庫存積壓問題，有效地為使用者提供更實惠、更新鮮的農產品。它已成為我們向用戶提供的重要產品，幫助在整個農業食品價值鏈中創造和保留了數百萬個就業機會。事實證明，它在需要的時候可以充當支持網絡。因此，我們將繼續改進它，使用戶、農民和他們的社區受益。

Improving agriculture has been at the front and center of our business from the very beginning. Agriculture touches the daily lives of everyone and has a relatively low digitization rate. with many of our teams being engineers by training, we hope to apply technology to agriculture so as to make a large positive impact on society and contribute to a -- the national effort to modernize agriculture and Vitalize rural communities.

從一開始，改善農業就是我們業務的首要任務。農業與每個人的日常生活息息相關，數位化率相對較低。我們團隊中的許多人都是受過訓練的工程師，我們希望將技術應用於農業，從而對社會產生巨大的積極影響，並為國家實現農業現代化和農村社區振興的努力做出貢獻。

Applying technology to agriculture is the best way for us to achieve our mission, which is to benefit all, to put people first and to be more open. We are gratified that Duo Duo serves over 16 million farmers, acting as their portal to a digital economy. Farmers are the bedrock of agri-food systems. To help them thrive is to help our agri-food system and society at large thrive.

將科技應用於農業是我們實現惠及全體人民、以人為本、更開放的使命的最佳方式。我們很高興看到多多服務了1600多萬農民，成為他們走向數位經濟的門戶。農民是農業食品體系的基石。幫助他們繁榮發展就是幫助我們的農業食品體系和整個社會繁榮發展。

We have seen firsthand how online agriculture retail and technology have benefited farmers. We are pleased that farmers and our partners recognize it, too, which is why they have spread the word and helped a number of farmers on our platform grow so quickly.

我們親眼目睹了網路農業零售和技術如何使農民受益。我們很高興農民和我們的合作夥伴也認識到這一點，這就是為什麼他們傳播這個消息並幫助我們平台上的許多農民如此快速成長。

We want to bring even more farmers on board and work with them to improve their lives and livelihoods. This is possible only if we also worked for our users and society at large. This is why we are focusing on playing a role in strengthening food security, safety and technology. And now let me elaborate.

我們希望吸引更多的農民加入並與他們合作，改善他們的生活和生計。只有我們也為使用者和整個社會服務才有可能實現這一點。這就是為什麼我們致力於在加強糧食安全和技術方面發揮作用。現在讓我詳細說明一下。

First, for the security. It's important to secure consumer access to a wide variety of affordable and nutritious food. For this, we need to help our farmers sell better and earn more so that they can cultivate more efficiently and sustainably. On the supply side, we need to up new farmers, as we have been doing, through Duo Duo Academy and in partnership with local governments and agronomic institutes to apply new technology.

第一，為了安全。確保消費者能夠獲得各種價格實惠又營養豐富的食品非常重要。為此，我們需要幫助我們的農民賣出更好的產品並賺更多的錢，以便他們能夠更有效率、更永續地種植。在供給方面，我們需要培養新農民，正如我們一直在做的那樣，透過多多學院並與當地政府和農藝機構合作，應用新技術。

On the demand side, we need to create awareness of their produce to aggregate demand to them. While China has a diverse selection of unique agricultural products, consumers often do not know about many of them. We want to change this by promoting their rich offerings nationwide. This is -- it is in this spirit that we recently launched our third harvest festival, leveraging our CNY 10 billion program and the flash sale. This year's edition featured over 1,000 unique quality produce from 400 quality agricultural production region.

在需求方面，我們需要提高他們對產品的認識，以聚集對他們的需求。儘管中國擁有多種獨特的農產品，但消費者對其中的許多產品往往並不了解。我們希望透過在全國推廣其豐富的產品來改變這種狀況。正是本著這種精神，我們最近利用我們的 100 億元人民幣計畫和限時搶購活動，推出了第三個豐收節。今年的展會展出了來自 400 個優質農業生產區的 1,000 多種獨特優質農產品。

Since inception of the CNY 10 billion program, our 0 commission policy for agricultural produce has attracted over 10,000 quality agri merchants to the program, selling over 20,000 agricultural SKUs. I want to take this opportunity to pledge that we will maintain our 0 commission policy for agricultural products to help farmers build a more resilient, efficient and profitable business.

百億計畫自啟動以來，農產品零佣金政策已吸引超萬家優質農商進駐，銷售農產品SKU超2萬個。我想藉此機會承諾，我們將維持農產品零佣金政策，幫助農民建立更有彈性、更有效率、更有利可圖的業務。

Second, food safety. We want to help improve standard across agri-food systems. Our supply chain itself will continue to help build up the agri-focused infrastructure. We are investing to improve demand and supply matching, [quoting] integration and smarter route planning. These efforts will also reduce agriculture's environmental footprint by cutting resource use and emissions from storage and transportation. We are still at the very beginning of this infrastructure buildup. However, we are confident of its long-term benefits.

第二，食品安全。我們希望幫助提高整個農業食品系統的標準。我們的供應鏈本身將繼續幫助建立以農業為重點的基礎設施。我們正在進行投資以改善需求和供應匹配、整合和更智慧的路線規劃。這些努力也將透過減少資源使用和儲存和運輸過程中的排放來減少農業對環境的影響。我們仍處於基礎建設的起步階段。但我們對其長期效益充滿信心。

Third, food technology or agri-food technology. We can only create a vibrant and sustainable agri-food system by seeking solutions from the cutting edge of science and working with farmers to apply these solutions. I would like to highlight the work we are doing in precision farming.

第三，食品技術或農業食品技術。我們只有從科學前沿尋找解決方案並與農民合作應用這些解決方案，才能創造一個充滿活力且永續的農業食品體系。我想強調一下我們在精準農業領域所做的工作。

Early this month, we launched the second Smart Agriculture Competition together with China Agricultural University and Zhejiang University.

本月初，我們與中國農業大學、浙江大學聯合啟動了第二屆智慧農業比賽。

We challenged teams from around the world to plant tomatoes. Last year, we challenged teams to deliver cost-effective productivity improvements with strawberries.

我們向來自世界各地的團隊發起了種植西紅柿的挑戰。去年，我們向各團隊發起挑戰，要求他們利用草莓來實現具有成本效益的生產力改進。

The technology teams performed very well, demonstrating the cost-adjusted benefits of adopting precision farming by producing 3x more fruit than the experienced farmers. Two of these teams have since started to commercialize their technology, which will result in real productivity gains for farmers.

技術團隊表現非常出色，證明了精準農業的成本調整效益，生產出的水果比經驗豐富的農民多 3 倍。其中兩個團隊已開始將其技術商業化，這將為農民帶來真正的生產力提升。

After last year's successful run, we are stepping up our criteria. On top of cost-effective productivity improvements, teams will need to demonstrate their farming technology to improve the tomato's nutritional profile while exerting less impact on the environment. We welcome all interesting teams with relevant skills to join this competition.

繼去年的成功舉辦之後，我們正在提高我們的標準。除了具有成本效益的生產力改進之外，團隊還需要展示他們的種植技術，以改善番茄的營養成分，同時減少對環境的影響。我們歡迎所有有趣的、具有相關技能的團隊參加本次比賽。

Third, agritech will make agriculture more attractive to the tech-savvy, Internet-native, younger generation. We want to help them apply their tech skills in agriculture. To date, we have directly contributed to over 100,000 new farmers returning and working in their hometowns. We will continue to strengthen our training for new farmers, and we are targeting to train another 100,000 of them over the next 5 years.

第三，農業科技將使農業對精通科技、熟悉網路的年輕一代更具吸引力。我們希望幫助他們將技術技能應用於農業。截至目前，我們已直接帶動10萬多名新農民返鄉就業。我們將持續加強新型農民的培訓，目標在未來5年內再培訓10萬名新型農民。

While we have made headway in our agriculture improvement initiatives, there is still a lot to be done to support our farmers and apply technology to agriculture to make it smarter, more resilient, more sustainable and benefit all.

雖然我們在農業改進措施方面取得了進展，但仍有許多工作要做，以支持我們的農民並將技術應用於農業，使其更加聰明、更具彈性、更永續並造福所有人。

As China's largest online agriculture platform, we launched a dedicated 10 Billion Agriculture Initiative today, which seeks to face and address the critical needs in agricultural sectors and rural areas. Commercial values of properties are not a goal, but rather we strive to facilitate advancement of agri-tech, promote digital inclusion and provide agritech talents and workers with greater motivation and sense of achievement.

作為中國最大的線上農業平台，我們今天專門推出了“百億農業計劃”，旨在面對和解決農業和農村地區的關鍵需求。我們不以物業的商業價值為目的，而是努力促進農業科技的進步，促進數位包容，並為農業科技人才和工作者提供更大的動力和成就感。

Although the 10 Billion Agriculture Initiative will clearly impact the short-term earnings per share for shareholders, it has already received the support and approval of the Board of Directors, and it will be personally overseen by myself. We will then hold a shareholder meeting to seek the support of the majority of shareholders. This is an important and challenging task, which we will invest impatiently.

百億農業計畫雖然在短期內對股東每股盈餘會有明顯影響，但已經得到董事會的支持和批准，而且將由我親自監督。隨後我們將召開股東大會，尋求多數股東的支持。這是一個重要又富有挑戰性的任務，我們將不遺餘力地投入其中。

All our profits from Q2 and any potential profits in the future quarters will first be allocated towards this initiative until a total of CNY 10 billion commitment is fulfilled.

我們第二季的所有利潤以及未來幾季的任何潛在利潤將首先用於此計劃，直至實現總計 100 億元人民幣的承諾。

Thank you. And now let me pass it on to Tony.

謝謝。現在讓我把它傳給托尼。

Thank you, Lei. Hello, everyone. Let me begin by providing an update on our progress in improving agriculture by applying technology and elaborate on how we will continue to deploy resources to do so, so as to achieve our mission to benefit all. And I will then discuss our financials this quarter.

謝謝你，雷。大家好。首先，我向大家介紹我們在應用科技改善農業方面的進展，並闡述我們將如何繼續部署資源來實現這一目標，從而實現造福所有人的使命。然後我將討論本季的財務狀況。

First, our efforts on digital and technological inclusion on farmers and agri merchants. We are firm believers in online agriculture retail and have already connected over 16 million farmers. We are committed to do more of that for them and bring more farmers on board and into the digital economy.

首先，我們致力於將數位化和技術融入農民和農商。我們堅信線上農業零售，並且已經連結了超過 1,600 萬名農民。我們致力於為他們做更多的事情，並讓更多的農民加入數位經濟。

Many farmers are small holders and may not be digital natives. We will be directing resources to make it simple and worthwhile for them to embrace tech-enabled agriculture. Our platform helps farmers sell effectively online by making China's rich and diverse agricultural produce discoverable and accessible to our 850 million annual users whose demand with then aggregate. As a foundation, we are committed to keeping our CNY 10 billion program completely free for all agricultural produce.

許多農民都是小農戶，可能不是數位原生代。我們將投入資源，讓他們能夠簡單且有價值地接受科技型農業。我們的平台讓每年 8.5 億用戶能夠發現和獲取中國豐富多樣的農產品，從而幫助農民進行有效的線上銷售，而這些用戶的需求也將隨之匯總。作為一個基金會，我們致力於讓我們的 100 億元人民幣計劃對所有農產品完全免費。

Further to that, we will be focusing on promoting quality agricultural produce. We have seen encouraging results from our third harvest festival last week. This year, presale orders nearly tripled within the same time frame with our users learning about and trying more special products, including vegetables from Sichuan needlecraft from Hunter Lake and matsutake mushroom from Shangri-La.

此外，我們將致力於推廣優質農產品。上週我們的第三次豐收節取得了令人鼓舞的成果。今年，預售訂單在同一時間段內增長了近兩倍，我們的用戶了解並嘗試了更多特色產品，包括來自四川的蔬菜、來自獵人湖的針織品和來自香格里拉的松茸。

We see great potential for Pinduoduo to be the go-to place to discover unique produce and learn and experience China's rich agricultural diversity. We will continue to invest heavily to make this a reality. We will apply C2M to help them cultivate better and build their brands.

我們看到拼多多具有巨大的潛力，它可以成為發現獨特產品以及學習和體驗中國豐富農業多樣性的首選。我們將繼續投入大量資金來實現這一目標。我們會用C2M的方式來幫助他們更好的培育和打造他們的品牌。

Our pioneering C2M model was recently recognized by the Retail Asia Awards for helping many export-oriented OEMs to pivot to the domestic market after COVID-19 disrupted the demand from abroad. Through C2M, they tailored their products to Chinese consumers and built strong brands to sell them.

我們開創性的 C2M 模式最近獲得了亞洲零售大獎的認可，因為它幫助許多出口導向 OEM 在 COVID-19 擾亂了國外需求後轉向國內市場。透過C2M，他們根據中國消費者客製化產品，並建立強大的品牌來銷售產品。

We will be applying C2M to agriculture. We're working with farmers to understand their customers better and to tailor their produce and packaging accordingly, thereby increasing demand while reducing waste, environmental footprint and advertising spend. This will also help users access more fresh produce that are better, fresher and cheaper.

我們將把 C2M 應用於農業。我們正在與農民合作，以更好地了解他們的客戶，並相應地定制他們的產品和包裝，從而增加需求，同時減少浪費、環境足跡和廣告支出。這也將幫助用戶獲得更多更好、更新鮮、更便宜的新鮮農產品。

An early example of our work in this area is Tieguanyin tea producers in Anxi. Tieguanyin is a premium oolong tea originated from Anxi, Fujian. And Tieguanyin from this area is considered to be the best quality tea within its category.

我們在這個領域開展工作的一個早期例子是安溪的鐵觀音茶生產商。鐵觀音是原產於福建安溪的優質烏龍茶。該地區出產的鐵觀音被認為是同類茶葉中品質最好的。

Under the Anxi County Tea Industry New Brand Alliance, we partnered with 10 leading Tieguanyin producers in Anxi and analyzed the consumers' preference to provide optimization feedback on size, packaging and the price of their product. In addition, we helped them to establish a new brand image of quality tea is not expensive among consumers. This helped to increase sales significantly.

在安溪縣茶葉產業新品牌聯盟下，我們與安溪10家鐵觀音龍頭生產商合作，分析消費者的喜好，對產品的尺寸、包裝、價格等進行優化回饋。另外，我們也幫助他們在消費者中建立了優質茶不貴的新品牌形象。這有助於大幅提高銷售量。

Deepening the human capital pool in agriculture is also key to the long-term success of our efforts. And we seek to empower farmers and agri merchants to grow and sell better through Duo Duo Academy and promote new technologies in partnership with local governments and agronomists.

深化農業人力資本庫也是我們努力長期成功的關鍵。我們希望透過多多學院幫助農民和農民更好地種植和銷售，並與當地政府和農學家合作推廣新技術。

We also help to nurture and showcase agritech solutions through our global Smart Agriculture Competition, thereafter encouraging their wider adoption in China. After successful inaugural event in 2020, we launched the second edition earlier this month. We are very honored that China Agricultural University, Zhejiang University have joined us and provided their strong support. We have also put together a judging panel composed of distinguished experts and growers with backgrounds in horticulture, crop modeling, algorithm design and policymaking, reflecting the importance of interdisciplinary collaboration to modernize agriculture to benefit all. We hope that this year's competition will spotlight ideas and techniques that can be applied by farmers to improve their farming.

我們也透過全球智慧農業比賽幫助培育和展示農業科技解決方案，並鼓勵它們在中國得到更廣泛的應用。繼 2020 年成功舉辦首屆活動後，我們於本月初推出了第二屆活動。我們非常榮幸得到中國農業大學、浙江大學的加盟和大力支持。我們也組成了一個評審團，由具有園藝、作物模型、演算法設計和政策制定背景的傑出專家和種植者組成，體現了跨學科合作對於實現農業現代化、造福所有人的重要性。我們希望今年的比賽能聚焦於農民可以應用的改善農業生產的想法和技術。

Second, retooling logistics for agriculture. We will be allocating resources to improve agri-focused logistics for affordability and efficiency and to reduce its carbon footprint. We will make it well adapted to online agriculture retail.

二是改造農業物流。我們將投入資源，提高農業物流的性價比和效率，並減少其碳足跡。我們將使其很好地適應線上農業零售。

We have made good strides in this area, incorporating our route planning technology to our network and solutions. At present, our work has already helped to expand the range of delicate fruits and vegetables that can be sold online at affordable prices. With it, our user enjoy more options because more farmers and agri merchants have joined the digital economy. At the same time, our distribution networks that support these sales have also created many new economic opportunities, catalyzing over 1 million jobs along the way. These improvements have also greened the agriculture supply chain by cutting down carbon emissions through more efficient routing and matching of supply and demand as well as reducing food spoilage and waste in the distribution process.

我們在這一領域取得了長足進步，將我們的路線規劃技術融入我們的網路和解決方案中。目前，我們的工作已經幫助擴大了可以以實惠的價格在網上銷售的精緻水果和蔬菜的範圍。有了它，我們的用戶享受了更多的選擇，因為更多的農民和農民加入了數位經濟。同時，支持這些銷售的分銷網絡也創造了許多新的經濟機會，催化了超過100萬個就業機會。這些改進還透過更有效率的路線和供需匹配來減少碳排放，以及減少分銷過程中的食物腐敗和浪費，從而使農業供應鏈變得綠色。

Well, we are encouraged to see the benefits that our logistics solutions have brought to many stakeholders and the environment. There is still much to do and accomplish. Nevertheless, we are determined to play our part and are committed to make significant long-term investments in it alongside like-minded partners.

嗯，我們很高興看到我們的物流解決方案為許多利害關係人和環境帶來的好處。還有很多事情要做，還有很多事情要完成。儘管如此，我們決心發揮自己的作用，並承諾與志同道合的合作夥伴一起進行長期重大投資。

It is our strategic priority to modernize the agri-food system to serve all stakeholders better and become more environmentally sustainable. We are committed to invest any profit and resources into realizing it. Our efforts are still in early days, and we will be patient for our investments to show results.

我們的策略重點是實現農業食品體系的現代化，以便更好地服務所有利益相關者，並實現更環境的可持續性。我們致力於投入任何利潤和資源來實現它。我們的努力仍處於早期階段，我們將耐心等待我們的投資取得成果。

Now let me talk through the financial highlights of the second quarter of 2021.

現在，讓我來談談 2021 年第二季的財務亮點。

We continued to see healthy user growth in Q2 and are happy with the progress we are making in improving trust and winning mindshare with our users. Our annual active buyers for the last 12 months ending June 30, 2021, increased to 849.9 million, up 26.1 million from the prior quarter. Our MAU in Q2 reached 738.5 million. This is up 30% compared to the same quarter in 2020. Our MAU as a percentage of our annual active buyers was 87% in the quarter, reflecting continued healthy engagement with our users.

我們在第二季度繼續看到健康的用戶成長，我們對在提高信任和贏得用戶心智方面所取得的進展感到高興。截至 2021 年 6 月 30 日的過去 12 個月，我們的年度活躍買家增加至 8.499 億，較上一季增加 2,610 萬。我們第二季的每月活躍用戶達到了7.385億。與 2020 年同期相比，這一數字增長了 30%。

In terms of P&L, our total revenues in the quarter ended June 30, 2021, were RMB 23 billion, up 89% from RMB 12.2 billion in the same quarter last year. Excluding revenues from our 1P trials, our total revenues grew by 73% to RMB 21.1 billion in Q2 2021. The main driver of this growth was our online marketing services.

從損益表來看，我們截至2021年6月30日當季的總收入為人民幣230億元，較去年同期的人民幣122億元成長89%。不計1P試驗的收入，我們2021年第二季的總收入成長73%，達到人民幣211億元。

Online marketing services revenue was RMB 18.1 billion this quarter, up 8 -- 64% compared to the same period last year due primarily to continued increase in merchant activities. We have seen merchants spending more and exploring new ways to engage with users and our users browsing more and discovering more items of interest. We can attribute these at least in part to improvements in the advertising products and analytical tools we offer to our merchants, which have helped them to meet and exceed their ROI targets. We are pleased to see the growing endorsement by our merchants and our users.

本季網路行銷服務營收為 181 億元，比去年同期成長 8-64%，主要由於商家活動持續增加。我們看到商家花費更多並探索與用戶互動的新方式，而我們的用戶則瀏覽更多並發現更多感興趣的商品。我們至少可以部分地將這些歸功於我們為商家提供的廣告產品和分析工具的改進，這些改進幫助他們達到並超越了他們的投資報酬率目標。我們很高興看到我們的商家和用戶越來越認可我們。

Our transaction service revenues this quarter amounted to RMB 3 billion, which is up 164% 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 our GMV in Q2; and number two, the service revenues that we recognized in connection with Duo Duo Grocery for which we provide fulfillment and other related services.

本季，我們的交易服務收入達到30億元人民幣，比去年同期成長164%。我們的交易服務收入的成長主要歸因於兩個因素：第一，我們第二季的GMV的成長；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。

We also record RMB 2 billion in merchandise sales for our 1P trials in Q2 2021 as compared to RMB 5.1 billion in the preceding quarter. As we have stated from the outset, our 1P business is meant to temporarily meet user demand of specific products which our merchants are unable to fulfill. Therefore, this number may fluctuate from quarter-to-quarter. Our strategy on 1P remains unchanged, and it will remain a very small part of our business.

2021 年第二季度，我們的 1P 試驗商品銷售額也達到 20 億元，而上一季為 51 億元。我們從一開始就聲明，我們的1P業務是為了暫時滿足用戶對商家無法滿足的特定產品的需求。因此，該數字可能每季都會有所波動。我們對 1P 的策略保持不變，它仍​​將是我們業務的一小部分。

Now moving on to costs and expenses. Our total cost of revenues increased from RMB 2.7 billion in Q2 2020 to RMB 7.9 billion this quarter. The increase was mainly due to the costs and the expenses attributable to 1P merchandise sales, higher cost of payment processing fees, cloud service 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 年第二季的 27 億元人民幣增加到本季的 79 億元人民幣。成長的主要原因是1P商品銷售產生的成本和費用、支付處理費、雲端服務費以及配送和倉儲費的增加。

Total operating expenses this quarter were RMB 13.2 billion as compared to RMB 11.2 billion in the same quarter of 2020. On a total non-GAAP basis, operating expenses were RMB 12 billion as compared to RMB 10.3 billion in the same quarter a year ago.

本季總營運費用為人民幣 132 億元，而 2020 年同期為人民幣 112 億元。

Our non-GAAP sales and marketing expenses this quarter increased 13% to RMB 10 billion from RMB 8.9 billion in the same quarter of 2020. This was mainly due to an increase in promotion and coupon expenses as we continued to invest in user engagement and mindshare.

本季度，我們的非公認會計準則銷售和行銷費用從 2020 年同期的人民幣 89 億元增加 13% 至人民幣 100 億元。

June is traditionally a festival month for online retail. At Pinduoduo, we do not emphasize on shopping festivals but wish to deliver value-for-money merchandise across all categories to our consumers every day. At the same time, we have detailed internal ROI guidelines on spending and are committed to make investments that meet such ROI guidelines. As a result, we see moderated growth in sales and marketing expenses in this quarter, consistent with historical Q2 spending.

六月傳統上是網路零售的節慶月。在拼多多，我們並不強調購物節，而是希望每天為消費者提供各個品類物有所值的商品。同時，我們在支出方面有詳細的內部投資報酬率指導方針，並致力於進行符合此類投資報酬率指導方針的投資。因此，我們看到本季銷售和行銷費用成長放緩，與歷史第二季支出一致。

Looking forward, we are committed to make meaningful investments into categories that we think could help strengthen consumer mindshare and benefit all in long term. On this front, we will continue to make it free for agriculture products and fresh produce to be featured in our CNY 10 billion program.

展望未來，我們致力於對那些我們認為有助於增強消費者心智並使所有人受益的類別進行有意義的投資。在此方面，我們將繼續免費將農產品和新鮮農產品納入我們的100億計劃。

On a non-GAAP basis, our sales and marketing expenses as a percentage of our revenue, excluding 1P trials, this quarter was 47% as compared to 81% and 73% for the same quarter in 2019 and in 2020. The reduction in sales and marketing expenses as a percentage of revenue is a reflection of our economics of scale and the consistent efforts to stick to a high standard of ROI guidelines. However, as we continue to invest into our user mindshare and in light of the upcoming festival season, we expect the sales and marketing expenses to increase, hence impact the bottom line.

以非公認會計準則計算，本季我們的銷售和行銷費用佔收入的百分比（不包括 1P 試驗）為 47%，而 2019 年同期和 2020 年同期分別為 81% 和 73%。然而，隨著我們繼續投資於用戶心智份額，並考慮到即將到來的節日季，我們預計銷售和行銷費用將會增加，從而影響底線。

On a non-GAAP basis, our general and administrative expenses were RMB 214 million, an increase of 57% from RMB 137 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 2.14 億元，較 2020 年同期的人民幣 1.37 億元增長 57%。

Our non-GAAP research and development expenses were RMB 1.8 billion, an increase of 39% from RMB 1.3 billion in the same quarter of 2020. The increase was primarily due to an increase in the headcount, the recruitment of more experienced R&D personnel and an increase in R&D-related cloud services expenses.

我們的非公認會計準則研發費用為人民幣 18 億元，較 2020 年同期的 13 億元人民幣增長 39%。

To sum up, operating profit for this quarter was RMB 2 billion on a GAAP basis compared with operating loss of RMB 1.6 billion in the same quarter of 2020. Non-GAAP operating profit was RMB 3.2 billion compared with operating loss of RMB 725.1 million in the same quarter of 2020. Our non-GAAP operating profit as a percentage of our revenue improved from minus 6% in Q2 2020 to 14% in Q2 2021.

綜上所述，本季按美國通用會計準則計算的營業利潤為人民幣 20 億元，而 2020 年同期的營業虧損為人民幣 16 億元。 21 年第二季的 14%。

Net income attributable to ordinary shareholders was RMB 2.4 billion as compared to net loss of RMB 899.3 million in the same quarter last year.

歸屬於普通股股東的淨利為24億元人民幣，去年同期的淨虧損為8.993億元。

Basic earnings per ADS was RMB 1.93, and the diluted earnings per ADS was RMB 1.69 compared with basic and diluted net loss per ADS of RMB 0.75 in the same quarter of 2020.

每股美國存託憑證基本收益為人民幣 1.93 元，每股美國存託憑證攤薄收益為人民幣 1.69 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 0.75 元。

Non-GAAP net income attributable to ordinary shareholders was RMB 4.1 billion compared with net loss of RMB 77.2 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41億元人民幣，去年同期淨虧損為7,720萬元。

Non-GAAP diluted earnings per ADS was RMB 2.85 compared with non-GAAP diluted net loss per ADS of RMB 0.06 in the same quarter of 2020.

非美國通用會計準則下每股美國存託憑證攤薄收益為 2.85 元人民幣，而 2020 年同期非美國通用會計準則下每股美國存託憑證攤薄淨虧損為 0.06 元人民幣。

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

這樣就完成了第二季的損益支付。

Net cash flow provided by the operating activities was RMB 7.4 billion compared with RMB 5.5 billion in the same quarter of 2020 primarily due to an increase in online marketing service revenues.

經營活動產生的淨現金流為人民幣 74 億元，而 2020 年同期為 55 億元，主要由於網路行銷服務收入增加。

As of June 30, 2021, the company had RMB 92.2 billion in cash, cash equivalents and short-term investments.

截至2021年6月30日，本公司擁有現金、現金等價物及短期投資人民幣922億元。

As of the end of July 2021, USD 773.7 million of our 0% convertible bonds due in 2024 have been converted into equity.

截至 2021 年 7 月底，我們 2024 年到期的 7.737 億美元 0% 可轉換債券已轉換為股權。

With that, I conclude my prepared remarks. Operator, we can take questions now.

我的發言到此結束。接線員，我們現在可以回答問題。

(Operator Instructions) Your first question comes from the line of Eddy Wang from Morgan Stanley.

（操作員指示）您的第一個問題來自摩根士丹利的 Eddy Wang。

Congratulations on the strong earnings. So I have 2 quick questions. First is about the consumption. So can you share some of your view or the -- so far, what have you witnessed for the consumption in China in the third quarter? Because I think some of the e-commerce -- leading e-commerce players have indicated that the consumption quite -- is a little bit weak. But another leading e-commerce platform report yesterday actually indicated very strong, resilient consumption. So I just want to check what you have seen on the consumption side, especially for the third quarter-to-date situation. This is the first question.

恭喜您獲得豐厚的收入。我有兩個簡單的問題。第一是關於消費。那麼您能否分享一些您的看法，或者到目前為止，您對中國第三季的消費情況有何看法？因為我認為一些電子商務——領先的電子商務參與者已經表示消費相當——有點疲軟。但昨日另一份領先的電子商務平台報告實際上顯示消費非常強勁且具彈性。所以我只是想檢查一下你在消費方面看到的情況，特別是第三季迄今為止的情況。這是第一個問題。

And the second question actually is about your profitability. I think if I remember correctly, the -- this is the first time that we have seen a very meaningful the profitability for PDD on quarterly basis. And the non-GAAP net margin is 18%. That's very impressive. So given that our business model has been more and more mature, should we expect that -- the profitability pattern in this quarter to be more stable going forward and is more expected going forward? Yes.

第二個問題其實是關於你的獲利能力。我想如果我沒記錯的話，這是我們第一次看到拼多多的季度獲利能力如此顯著。非公認會計準則淨利率為18%。這真是令人印象深刻。那麼，鑑於我們的商業模式已經越來越成熟，我們是否應該預期——本季的獲利模式在未來會更加穩定，並且在未來更具可預期性？是的。

Okay. Thank you, Eddy, for the question. Let me try to answer these 2 questions.

好的。謝謝 Eddy 提出這個問題。讓我試著回答這兩個問題。

Regarding your first question on the consumption, I think before we go to the third quarter, let's just recap what happened in Q2.

關於您第一個關於消費的問題，我想在進入第三季之前，讓我們先回顧一下第二季發生的情況。

I think in general, with the COVID-19 pandemic under control in Q2, it is natural to see off-line retail actually rebounded faster. At the same time, in 2020, the second quarter represents a much higher base as online retail grew faster due to the COVID-19-related stay-at-home measures. We are encouraged to see the continued and normalized growth in Q2 this year, considering Q2 is usually a busy quarter for e-commerce players.

我認為總體而言，隨著第二季新冠疫情得到控制，線下零售實際上會更快反彈，這是很自然的。同時，2020 年第二季的基數更高，因為受新冠疫情相關的居家措施影響，網路零售成長更快。考慮到第二季度通常對於電子商務參與者來說是一個繁忙的季度，我們很高興看到今年第二季度繼續正常成長。

In the past quarter, we continued to see this healthy improvement in our user engagement and growth on our platform. And our revenue in this quarter grew 89% year-over-year as a whole. And if we take out the 1P merchandise sales, they increased 73% year-over-year. So I would say that the growth is still very strong.

在過去的一個季度中，我們繼續看到平台用戶參與度和成長的健康改善。我們本季的營收年增了89%。如果我們去掉 1P 商品的銷售額，其年增了 73%。因此我想說成長仍然非常強勁。

But coming to your question on the third quarter -- Q3, I think we are still small compared to some of our peers in the sector. So we might not be a good barometer of the overall market growth. We are more focusing on ourselves because our growth is fueled by 2 main drivers. One is the user growth and as well as their mindshare.

但回到你關於第三季的問題——我認為與業內的一些同行相比，我們的規模仍然較小。因此，我們可能不是整體市場成長的良好晴雨表。我們更關注自己，因為我們的成長受到兩大主要驅動力的推動。一是使用者成長及其心智份額。

And as we stated in the remarks, our user base has already reached 850 million, and this growth will be inevitably slowed down. So we shifted the focus really on how to -- serving our users better and steadily building and getting strengthened on their mindshare with the platform. And we see there's still much room to further build and strengthen the trust that our users have in us. And such a progress will take time.

而且正如我們在評論中所說，我們的用戶群已經達到了8.5億，這種成長不可避免地會放緩。因此，我們真正將重點轉移到如何更好地服務用戶，並穩步建立和加強用戶對平台的認知。我們看到，我們還有很大空間可以進一步建立和加強使用者對我們的信任。而這樣的進展需要時間。

And coming to your second question on the profitability. And our profit in this quarter was mainly attributable to the operating leverage from the sales and marketing expenses, as I just stated in the remarks, due to the seasonality. It is a unique quarter as Q2 is typically a low season for us with less sales and marketing spending. And we do not think that this quarter's profitability should be an indicator or a reference for our future investment in user mindshare and as well as the agri-focused infrastructure. We are seeing more investment coming in the coming quarter. And as we invest more into agriculture, we do not expect profitability to continue.

接下來是關於獲利能力的第二個問題。正如我剛才在評論中提到的，由於季節性因素，本季的利潤主要歸因於銷售和行銷費用帶來的經營槓桿。這是一個特別的季度，因為第二季度通常是我們的淡季，銷售和行銷支出較少。我們不認為本季的獲利能力應成為我們未來對使用者心智份額以及農業基礎設施投資的指標或參考。我們預計下個季度將會有更多的投資。儘管我們對農業的投入不斷增加，但我們預計獲利能力不會持續下去。

And let me just add one more comment on this. We will keep maintaining the 0 commission policy on our agriculture produce to help more farmers and agri merchants, and this type of investment will continue. Thank you.

對此我再補充一則評論。我們將繼續維持農產品0佣金政策，幫助更多的農民和農商，這種投資將持續下去。謝謝。

Your next question comes from the line of Natalie Wu from Haitong International.

您的下一個問題來自海通國際的 Natalie Wu。

Congratulations on another solid quarter. So I have 2 questions from my side. Firstly, last quarter, we cast on your views regarding the competitive landscape. But given that recently we've noticed that your peer is spending more aggressively and new players like [Beline] are also being are also gaining traction in e-commerce. So just wonder if you can elaborate more on the latest competitive landscape dynamics. And how do you think this will affect your strategy?

恭喜您又一個季度取得豐碩成果。所以我有兩個問題。首先，上個季度，我們對競爭格局發表了看法。但考慮到最近我們注意到您的同行正在更積極地支出，而像 [Beline] 這樣的新玩家也在電子商務領域獲得關注。所以我想知道您是否可以詳細說明最新的競爭格局動態。您認為這會對您的策略產生什麼影響？

And secondly, regarding the CNY 10 billion investment programming to agriculture you just announced, just wondering, can management share a bit more color on this program? How will this impact your company's financial statement looking forward? Thank you.

第二，關於您剛剛宣布的 100 億元人民幣農業投資計劃，我想知道管理層能否詳細介紹一下這個計劃？這將對貴公司未來的財務報表產生什麼影響？謝謝。

[Interpreted] Thanks for your question, Natalie. Let me address your question. I believe your first question is related to the competitive landscape.

[翻譯]謝謝你的提問，娜塔莉。讓我來回答你的問題。我認為您的第一個問題與競爭格局有關。

So if we were to look at e-commerce as a whole, this is a fairly large industry. So as you mentioned, we think the rise of players like short-video e-commerce is not really surprising given they have a huge user base, high usage frequency, and they also have very high user content.

因此，如果我們從整體上看待電子商務，這是一個相當大的行業。所以正如你所提到的，我們認為短視訊電商等參與者的崛起並不令人驚訝，因為他們擁有龐大的用戶群、高使用頻率，並且還擁有非常高的用戶內容。

So based on our sort of operating observation, we are seeing the competition is becoming more intensified. There are more and more platform companies that's joining e-commerce, that's entering e-commerce and not only specific to the short-video sites, but we expect more players to enter this field.

因此，根據我們的營運觀察，我們發現競爭變得更加激烈。越來越多的平台公司加入電子商務，進入電子商務領域並不局限於短影片網站，我們預計會有更多的參與者進入這個領域。

So consumer demands actually are very multidimensional and constantly evolving. Six years ago when we started -- when we first started, we chose to build a mobile-only platform that's around our 1P model. And this is a model that we built that was quite distinct from the other players.

因此，消費者的需求實際上是多維的並且不斷發展。六年前，當我們剛開始創業時，我們選擇建立一個圍繞我們的 1P 模型的純移動平台。這是我們建立的與其他參與者截然不同的模式。

So if you were to ask is this model still the most innovative one that meets consumers' demand, we're also constantly discussing this, and I think you may observe this from the decelerating trend of our user growth.

所以如果你要問這種模式是否仍然是最具創新性的、能夠滿足消費者需求的模式，我們也在不斷討論這個問題，我想你可以從我們的用戶成長減速趨勢中觀察到這一點。

So as you know, that we have been undergoing management transition in the past couple of months, and the new management is asking the question about whether our team can adjust with the maximum speed to meet this evolving needs of our users. And also, will our current model still be relevant maybe 5, 7 or even 10 years later? We are working really hard on this, and there will be many challenges and unforeseeable difficulties.

如你所知，我們在過去幾個月中一直在經歷管理層的變動，新管理層正在詢問我們的團隊是否能夠以最快的速度進行調整以滿足用戶不斷變化的需求。而且，5 年後、7 年後甚至 10 年後，我們目前的模型是否仍然適用？我們正在為此努力，其中還會有很多挑戰和難以預見的困難。

But I would also like to add that the Chinese market is extremely dynamic and vibrant. In this world's largest consumer and retail market, the emergence of new business models actually do demonstrate the appeal and innovation potential of this market.

但我還想補充一點，中國市場非常活躍且充滿活力。在這個全球最大的消費和零售市場中，新商業模式的出現其實確實彰顯了這個市場的吸引力和創新潛力。

So regardless of the competition, I think it's really important for us to stick with our principle of benefit all people first and being more open. At the same time, we should continue to be user centric and focused on the needs of our consumers. This, in the end, will be more important than the competition itself.

因此，無論競爭如何，我認為堅持惠及全體人民和更開放的原則對我們來說非常重要。同時，我們要繼續以使用者為中心，專注於消費者的需求。最終，這比比賽本身更為重要。

So on your second question regarding the CNY 10 billion agri initiative, let me first give you some color on this, and Tony will follow up with more detail.

關於您提出的第二個問題，即 100 億元農業計劃，我首先向您介紹一下這一情況，然後 Tony 會提供更多細節。

So Pinduoduo is China's largest online agriculture platform, and we launched a dedicated 10 Billion Agriculture Initiative at this time.

所以拼多多是中國最大的線上農業平台，我們這次推出了專門的百億農業計畫。

So we hope this initiative will seek to face and address the critical needs in the agriculture sector and rural areas. And commercial value or profits are not the goal, but rather we strive to facilitate the advancement of agri-tech and promote digital inclusion and provide agri-tech talent and workers with greater motivation and a sense of achievement.

因此，我們希望這項倡議能夠努力面對和解決農業部門和農村地區的關鍵需求。我們不是以商業價值或利潤為目的，而是致力於推動農業科技進步和數位包容，為農業科技人才和從業者提供更大的激勵和成就感。

This initiative will clearly impact the short-term earnings per share for shareholders. We have received the support and approval of the Board of Directors, and I personally will be leading this project.

這項舉措將明顯影響股東的短期每股盈餘。我們得到了董事會的支持和批准，我自己將領導這個專案。

Next, we will convene a shareholder meeting to seek the support of majority shareholders. This is a very important and challenging task which we will invest in patiently.

下一步，我們將召開股東大會，尋求多數股東的支持。這是一項非常重要且富有挑戰性的任務，我們將耐心投入。

(foreign language)

（外語）

Okay. I think let me add some color onto this, Natalie, on your question on the impact on our financial statement.

好的。納塔莉，我想讓我就你提出的對我們的財務報表的影響的問題補充一些說明。

I think, as Lei mentioned in his remarks, basically the idea is to reinvest the profits of this quarter and any future potential profit into this CNY 10 billion agri initiative. And in terms of the areas of interest of this investment, we are identifying like 3 key pillars, namely food security, food safety and agri-food technologies.

我認為，正如雷軍在演講中提到的那樣，我們的想法基本上是將本季的利潤以及任何未來的潛在利潤重新投資到這個價值 100 億元人民幣的農業計劃中。就這項投資的興趣領域而言，我們確定了三大支柱，即糧食安全、食品安全和農業食品技術。

And this investment will certainly have an impact on the bottom line in the medium- to long-term perspective. But in terms of which line will be affected in the P&L, it really depends on the nature of the spending. It could be a hit on the research and development expenses or intangible assets when the software or technology is capitalized, or it could be sitting in our balance sheet like a long-term investment.

而這項投資從中長期來看肯定會對底線產生影響。但至於損益表中哪一行會受到影響，實際上取決於支出的性質。當軟體或技術被資本化時，它可能會對研發費用或無形資產造成打擊，或者它可能會像長期投資一樣留在我們的資產負債表中。

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

您的下一個問題來自 Jefferies 的 Thomas Chong。

I have 2 questions. The first question is about the online marketplace take-rate outlook as well as the measures to support the merchants in coming quarters. And my second question is about the competitive landscape in the online grocery space. Can management share about the recent developments as well as the business trends for Duo Duo Maicai?

我有兩個問題。第一個問題是關於線上市場接受率的前景以及未來幾季支持商家的措施。我的第二個問題是關於網路雜貨領域的競爭格局。管理階層能否分享多多買菜的最新發展以及業務趨勢？

[Interpreted] Thomas, let me address the second question on competitive landscape for Duo Duo Grocery first.

[口譯] Thomas，我先來回答第二個問題，關於多多雜貨店的競爭格局。

So from the day that we started Duo Duo Grocery, we have been saying the intention behind this business is to meet the diversified needs of our user, and it's a natural extension of our business.

所以從我們創辦多多雜貨店的那一天起，我們就在說，這項業務背後的意圖是滿足用戶的多樣化需求，這是我們業務的自然延伸。

It's also part of our continued effort in agriculture. So you know that this is -- this business -- the Duo Duo Grocery business is quite different from what we have been doing for 6 years at Pinduoduo, and Duo Duo Grocery is heavier on operation. And our team is also constantly learning through trial and error, and I think we are still in early days.

這也是我們在農業領域持續努力的一部分。所以你知道這個業務——多多買菜業務與我們在拼多多六年來所做的業務有很大不同，多多買菜的運營重量更重。而且我們的團隊也不斷地透過反覆試驗來學習，我認為我們還處於早期階段。

So I think it's not really necessary or important for us to pay too much attention on the competition right now. But rather, we should focus on user demand and how to better serve them and whether our services are meeting their expectations.

所以我認為現在我們沒必要或不需要太關注比賽。但我們應該關注用戶需求以及如何更好地為他們服務以及我們的服務是否滿足他們的期望。

So let me give you a specific example. So in terms of fulfillment experiences in the business of Duo Duo Grocery, whether dropping it off too early or too late at a pickup point for consumers will affect their user experiences.

讓我給你舉一個具體的例子。所以從多多買菜業務的履行體驗來看，對於消費者來說，太早或太晚將商品送到提貨點都會影響到使用者體驗。

So how we should serve our users better and to improve in the areas that we are not doing a great job, these are the areas that we, as a management, are focusing on, on a daily basis rather than paying attention to the competition with others.

那麼我們如何更好地服務用戶，如何在我們做得不好的地方進行改進，這些是我們作為管理層每天關注的重點，而不是關注與其他人的競爭。

(foreign language)

（外語）

Yes, sure. Thank you, Lei. Regarding your question on take rate, Thomas, our strategy has always been serving our users. We believe that growth and monetization are a natural result of that.

是的，當然。謝謝你，雷。關於你提到的接受率問題，Thomas，我們的策略一直是為使用者服務。我們相信成長和貨幣化是自然的結果。

Merchants' ROI is already reflected in our revenues. As you can see, our revenue this quarter continued to grow, which is an affirmation of the healthy ROI merchants are seeing as they sell more on our platform. We also keep launching new features that merchants can use to help themselves understand their target users better and, therefore, enhance their ROI.

商家的投資報酬率已經反映在我們的收入中。如您所見，我們本季的收入持續成長，這是對商家在我們的平台上銷售更多產品時獲得的健康投資報酬率的肯定。我們也持續推出新功能，商家可以使用這些功能來幫助自己更了解目標用戶，進而提高投資報酬率。

Specifically on our CNY 10 billion program. We continue to be committed to delivering the best value-for-money products through this channel. As we mentioned in the prepared remarks, we are raising the bar on the quality of merchants and products to meet our users' needs. Now that being said, we are committed to keeping a 0 commission policy for agriculture and fresh produce. And in fact, we will increase our investment in agriculture products, and we will see some of the impact in the near future.

具體來說就是我們的100億元人民幣計畫。我們將繼續致力於透過該管道提供最物有所值的產品。正如我們在準備好的評論中所提到的，我們正在提高商家和產品的品質標準，以滿足使用者的需求。話雖如此，我們致力於對農業和新鮮農產品保持零佣金政策。事實上，我們將增加對農產品的投資，不久的將來我們將會看到一些影響。

To give you an example, in Q1 this year, the number of agricultural produce SKUs with more than 100,000 orders exceeded 2,600. And in the recent launch, the harvest festival, the presales data of quality agricultural produce showed over 200% growth year-over-year on a single day. We are very encouraged by this and are committed to do more.

舉個例子，今年一季度，訂單量在10萬以上的農產品SKU超過2600個。而在剛啟動的豐收節中，優質農產品預售數據單日較去年同期成長超過200%。我們對此感到非常鼓舞，並致力於做得更多。

So coming back to your question on the take rate growth, we do not focus on this on a quarterly basis as we believe monetization is a result of user satisfaction and merchants' ROI. And our monetization rate has fluctuated in the past, as you know.

所以回到你關於收費率成長的問題，我們不會按季度關注這個問題，因為我們認為貨幣化是用戶滿意度和商家投資回報率的結果。如您所知，我們的貨幣化率過去一直存在波動。

Your next question comes from the line of Robin Zhu from Bernstein.

您的下一個問題來自伯恩斯坦的 Robin Zhu。

Can I just ask 2 questions, please? The first one on ARPU growth and cohort growth among your users. Especially, any color on where ARPU is now on the platform, excluding the very new users that have joined in the, say, the last 1 year, where that now stands, where you think that can go?

我可以只問 2 個問題嗎？第一個是關於用戶的 ARPU 成長和群組成長。特別是，目前平台上的 ARPU 在哪裡，不包括過去 1 年內加入的新用戶，現在的 ARPU 處於什麼水平，您認為會達到什麼水平？

Second question. We've noticed that the new personal information protection regulations and some of the platform teams make it more difficult for merchants to grab user information. Just wanted to get your thoughts on how that impacts the merchants' reliance on the PDD platform, the merchants' demand for advertising tools on your platform and how you guys plan to address their need to capture sort of direct-to-consumer relationships.

第二個問題。我們注意到，新的個人資訊保護規定和一些平台團隊的做法，使得商家抓取使用者資訊變得更加困難。只是想聽聽您對這會如何影響商家對 PDD 平台的依賴、商家對您平台上的廣告工具的需求的看法，以及你們計劃如何滿足他們獲取直接面向消費者關係的需求。

[Interpreted] Let me address the second part of your question relating to data protection.

[口譯]我來回答你關於資料保護的問題的第二部分。

So I think the recently issued laws and regulations around data security and data protection have provided guidelines for all companies dealing with data.

所以我認為最近發布的有關資料安全和資料保護的法律法規為所有處理資料的公司提供了指導方針。

We think these guidelines are beneficial to the long-term healthy development of companies, platforms and consumers within the entire sector.

我們認為這些指導方針有利於整個產業的企業、平台和消費者的長期健康發展。

So in the short to medium term, I do think that we'll see some impact from these changes depending on the different model, whether that's advertising that you mentioned. But in the longer term, we think these measures are beneficial.

因此，在短期到中期內，我確實認為我們會看到這些變化帶來的一些影響，這取決於不同的模式，無論它是否是您所提到的廣告。但從長遠來看，我們認為這些措施是有益的。

As you know, we have always been strictly compliant with China's data security standards as regulators and the industry as a whole continue to raise the bar on data security and data protection. We will also keep holding ourselves to the higher standards. This is to help provide to our users and merchants a safe and efficient shopping environment.

眾所周知，隨著監管機構和整個行業不斷提高資料安全和資料保護的標準，我們始終嚴格遵守中國的資料安全標準。我們也將繼續以更高的標準嚴格要求自己。這有助於為我們的用戶和商家提供安全且有效率的購物環境。

So we are currently working diligently to master the detailed policy requirements and would adjust our the operational products related to data acquiring.

因此，我們正在努力掌握詳細的政策要求，並將調整與資料收集相關的營運產品。

Okay. Robin, let me come to your question on the ARPU. First, let me clarify. As we continue to improve our product offering and the user experience, users on our platform tend to trust us more and, therefore, support us more. This is a function of our user gaining greater familiarity and building more trust with our presence.

好的。羅賓，讓我來回答你關於 ARPU 的問題。首先，讓我澄清一下。隨著我們不斷改進產品和使用者體驗，我們平台上的使用者更加信任我們，因此也更加支持我們。這是我們的用戶對我們的熟悉度不斷提高、信任度不斷提升的功能。

We are also working to increase the breadth and depth of our product selection across all product categories and price points. We believe that as we provide the users with more options and keep meeting their demands, the ARPU will naturally increase.

我們也致力於增加所有產品類別和價格點的產品選擇的廣度和深度。我們相信，隨著我們為用戶提供更多選擇並不斷滿足他們的需求，ARPU 自然會增加。

You put it very right, we have an enormous number of new users coming less than 12 months. And this is actually our key task, and it's a challenge for us as well to understand the needs of these new users. It takes more time for the new users to get familiar with our platform, to build their mindshare with the platform. And even for users more than 2 years, 3 years, their demands are also evolving.

你說得很對，我們在不到 12 個月的時間內就吸引了大量的新用戶。這其實是我們的重點任務，了解這些新用戶的需求對我們來說也是一個挑戰。新用戶需要更多時間來熟悉我們的平台，並在平台上建立他們的認知份額。即使是2年、3年以上的用戶，他們的需求也不斷發展。

So putting the user needs at the heart of our strategy and to fulfill their experience, providing the better service. And therefore, we will continue to invest in the coming quarters when the high season is coming, be it sales and marketing spending or other investments. These are our priorities to come, and not just the ARPU as a KPI itself is the focus.

因此，我們把使用者需求放在我們策略的核心位置，以滿足他們的體驗，提供更好的服務。因此，在旺季到來的未來幾個季度，我們將繼續投資，無論是銷售和行銷支出還是其他投資。這些是我們未來的重點，而不只是ARPU，因為KPI本身才是重點。

Your last question comes from the line of Piyush Mubayi from Goldman Sachs.

您的最後一個問題來自高盛的 Piyush Mubayi。

When I look at your CNY 10 billion initiative where you're talking about spending your profits on agriculture monetization -- modernization as well as the rural vitalization and I look at that in combination with the fact that your customer growth numbers are reaching that point where further growth is going to be harder and harder and the visible profitability in the second quarter, are we at that point of time where the business model outside the CNY 10 billion initiative is at that stage where the continued profitability is inevitable and it's going to be hard to hide away from? And that CNY 10 billion is going to come out from further profits? Or is that CNY 10 billion going to be over and above the profitability that the business is likely to generate?

當我看到你們的百億計劃時，你們談到將利潤用於農業貨幣化、現代化以及鄉村振興，再加上你們的客戶增長數量已經達到一個臨界點，進一步增長將越來越難，而第二季度的盈利能力已經明顯，我們是否正處於百億計劃之外的商業模式已經處於持續盈利是必然的、難以迴避的階段？那這100億是來自於進一步的利潤嗎？或者說，100億元人民幣是否超出了該業務可能產生的獲利能力？

Well, between the lines, do I read you right when you said that sales and marketing spend is likely to rise in the third and the fourth quarter, potentially taking away or eating away profitability in the next couple of quarters? So I wasn't sure I understood fully. If you could just elaborate to the extent you can, I'll be grateful.

那麼，從字裡行間來看，您說的銷售和行銷支出在第三季和第四季可能會增加，從而有可能在接下來的幾個季度中奪走或蠶食盈利能力，我理解得對嗎？所以我不確定我是否完全理解了。如果您能盡可能詳細說明的話，我將不勝感激。

Thank you, Piyush, for the question. I think in general, it's about the overall agriculture investment you're talking about. The COVID-19 has really challenged the whole current logistic and distribution network and surfaced some of the pressing issues. So there's demand for new logistics network that could better support the distribution of fresh produce and agricultural products.

感謝 Piyush 提出這個問題。我認為總的來說，您談論的是整體農業投資。新冠肺炎疫情確實對當前整個物流和配送網絡提出了挑戰，也暴露了一些迫切的問題。因此需要新的物流網絡來更好地支援新鮮農產品和農產品的分銷。

And this is a complex system that requires innovation and then some trial and error. To give you some color, let me give you some questions that we keep asking ourselves in the management when I think of the improvement in this sector, which obviously is the #1 priority -- strategic priority for us for now.

這是一個複雜的系統，需要創新，然後不斷反覆試驗。為了讓您了解一些情況，讓我給您一些問題，當我想到這個領域的改進時，我們在管理層中不斷問自己的問題，這顯然是目前的首要任務——戰略重點。

Examples like how can we use technology to reduce the waste and environmental footprint. And what type of route planning can cut the food waste and transportation emission? What kind of transportation and storage condition could ensure longer shelf life and better preservation of nutrition value of the agriculture produce? And what technology might be needed to realize such conditions?

例如我們如何利用科技來減少浪費和環境影響。而什麼樣的路線規劃可以減少食物浪費和運輸排放？什麼樣的運輸和儲存條件才能確保農產品有更長的保質期和更好的保存其營養價值？要實現這樣的條件需要什麼技術呢？

So this is a huge whitespace that requires patience and long-term investment. So there's a lot of areas we are looking at for the moment, and we are at the very beginning of it.

所以這是一個巨大的空白，需要耐心和長期投入。目前我們正在關注很多領域，而我們才剛開始。

So I think in Lei's remark, we mentioned that the CNY 10 billion agri initiative actually profitability and any commercial KPIs are not being considered. So we are only at the very beginning of the stage. We are very committed to invest into the future and into this sector for a long-term period of time.

因此，我認為在雷的評論中，我們提到 100 億元人民幣的農業計劃實際上並沒有考慮盈利能力和任何商業 KPI。所以我們才剛處於這個階段的開始階段。我們致力於長期投資未來和該領域。

And could I just ask the scale of the -- of grocery in the quarter? Or give us a feel for agriculture in terms of importance, either percentage of GMV or any other metric you could share with us. That'd be great.

我可以問一下本季食品雜貨的規模嗎？或者從重要性的角度向我們介紹農業，無論是 GMV 的百分比還是您可以與我們分享的任何其他指標。那太棒了。

Thank you, Piyush, for the question. But as you know, at the end of Q4 last year, we adopted -- as a market practice, we stopped disclosing any GMV. So I'm not in a position to share this number.

感謝 Piyush 提出這個問題。但正如您所知，去年第四季末，我們按照市場慣例，停止披露任何 GMV。因此我無法分享這個號碼。

Okay. Operator, thank you so much. This concludes the earnings call for this season. Thank you so much for everyone joining. Have a good day.

好的。接線員，非常感謝您。本季的收益電話會議到此結束。非常感謝大家的加入。祝你有美好的一天。

Thank you all.

謝謝大家。

Thank you. This concludes our conference for today. Thank you for participating. You may all disconnect. [Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]

謝謝。今天的會議到此結束。感謝您的參與。你們都可以斷開連線。 [本記錄中標記為[已翻譯]的部分由現場翻譯人員朗讀。