拼多多 (PDD) 2021 Q1 法說會逐字稿

Good day, and thank you for standing by. Welcome to the Pinduoduo First Quarter 2021 Earnings Conference Call. (Operator Instructions) Please be advised that today's conference call is being recorded. (Operator Instructions)

美好的一天，感謝您的支持。歡迎參加拼多多2021年第一季度業績電話會議。 （操作員說明）請注意，今天的電話會議正在錄音。 （操作員說明）

I would now like to hand the conference over to first speaker today, [Mr. Jason Zhu]. Please take over.

現在我想將會議交給今天的第一位發言者，[Mr.朱杰森].請接手。

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.

謝謝你，接線員。大家好，感謝您今天加入我們。拼多多財報已於早些時候發布，可在IR網站investor.pinduoduo.com以及Globenewswire服務上獲取。

So 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 Strategy, David Liu, will then elaborate further on our specific strategic initiatives. Our VP of Finance, Tony Ma, will then take us through our financial results for the first quarter ended March 31, 2021.

因此，在今天的電話會議上，我們的董事長兼首席執行官陳雷將對我們上一季度的業績以及未來的戰略重點發表一些一般性評論。我們的戰略副總裁 David Liu 將進一步闡述我們的具體戰略舉措。然後，我們的財務副總裁 Tony Ma 將向我們介紹截至 2021 年 3 月 31 日的第一季度的財務業績。

So 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.

因此，在我們開始之前，我想向您推薦我們在收益新聞稿中的安全港聲明，該聲明適用於本次電話會議，因為我們將做出某些前瞻性聲明。此外，本次電話會議還討論了某些非公認會計準則財務措施。請參閱我們的收益發布，其中包含非公認會計準則衡量標準與公認會計準則衡量標準的調節表。

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

現在我很高興向大家介紹我們的董事長兼首席執行官陳雷。雷，請繼續。

Thank you, Jason. Hello, everyone, and thank you for joining our first quarter 2021 results announcement. It has been over a year since the initial break of COVID-19. Since then, we have carefully moved towards normalcy, while respecting the necessary precautions and occasional measures to tamp down the flare up of the coronavirus.

謝謝你，傑森。大家好，感謝您參加我們的 2021 年第一季度業績發布會。自 COVID-19 首次爆發以來已經過去一年多了。從那時起，我們小心翼翼地恢復正常，同時遵守必要的預防措施和偶爾採取的措施，以遏制冠狀病毒的爆發。

After mostly staying in place over Lunar New Year holidays in February, Chinese consumers finally took a well-deserved break over the May day holidays, shopping and traveling along the country. With summer approaching, we hope that the global pandemic situation will continue to improve as more people receive their vaccinations.

在經歷了二月份的農曆新年假期後，中國消費者終於在五一假期得到了應有的休息，在全國各地購物和旅遊。隨著夏季的臨近，我們希望隨著更多人接種疫苗，全球疫情形勢繼續好轉。

I would like to thank the merchants and logistics partners who worked closely with us to serve our users throughout the period. Together, we created another industry first by staying open and serving users over the Lunar New Year. We provided users with cheer, by ensuring that they could get what they required over the holiday and easily send presents and care packages to their love ones back home with just a few clicks on our app.

感謝整個期間與我們密切合作、為用戶服務的商家和物流合作夥伴。我們共同創造了另一個行業第一，在農曆新年期間保持開放並為用戶提供服務。我們為用戶提供了歡樂，確保他們能夠在假期中獲得所需的東西，並且只需在我們的應用程序上點擊幾下即可輕鬆地將禮物和護理包發送給家鄉的親人。

According to the State Post Bureau, the total parcel volume over the period from 11th to 17th February stood at 660 million, growing by 260% over the same period last year. We are proud to have contributed towards keeping our users' spirit, while they kept themselves, their loved ones and their communities safe.

據國家郵政局統計，2月11日至17日期間，包裹總量達到6.6億件，比去年同期增長260%。我們很自豪能夠為保護用戶的精神做出貢獻，同時保護他們自己、親人和社區的安全。

Our overarching commitment to serving our users has helped us put yet another strong quarter. Our annual active buyers increased by 35.4 million from the December quarter to reach 823.8 million for the 12 months ending on the 31st March 2021.

我們對服務用戶的總體承諾幫助我們實現了又一個強勁的季度。截至 2021 年 3 月 31 日的 12 個月內，我們的年度活躍買家數量比去年第四季度增加了 3540 萬，達到 8.238 億。

We've continued to build trust and mind share with our users. User activity on our platform continued to increase. Over the last -- over the quarter, our MAU increased to 724.6 million, representing 88% of our annual active buyers. Total revenues excluding revenues from merchandise sales was RMB 17 billion, a year-on-year increase of 161%. Our growing scale gives us both greater capacity as well as responsibility to live our missions to benefit all. We constantly think about how we can best measure our resources and reach to catalyze improvements and bring more benefit to society.

我們繼續與用戶建立信任和思想共享。我們平台上的用戶活躍度持續增加。上一季度，我們的月活躍用戶數增加至 7.246 億，占我們年度活躍買家的 88%。扣除商品銷售收入後的總收入為人民幣170億元，同比增長161%。我們不斷擴大的規模賦予我們更大的能力和責任來履行我們造福所有人的使命。我們不斷思考如何最好地衡量我們的資源並促進改進並為社會帶來更多利益。

Our direct access to over 800 million consumers and our understanding of them as well as our network of over 8.6 billion merchants on our platform makes us uniquely well positioned to bring top minds from around the world together to develop practical solutions to real-world problems that our users encounter every day.

我們直接接觸超過8 億消費者，對他們的了解以及我們平台上超過86 億商戶的網絡，使我們處於獨特的優勢，能夠將世界各地的頂尖人才聚集在一起，為現實世界的問題開發切實可行的解決方案，我們的用戶每天都會遇到。

As we work towards our goal of becoming the world's largest agriculture and grocery platform, we must also seize the golden opportunity to transform and modernize the agri food system. We want to help consumers adopt healthier and more environmentally sustainable diets while improving other links of the supply chain and cost structure of agriculture industry.

在我們努力成為全球最大的農業和雜貨平台的目標的同時，我們還必須抓住農業食品系統轉型和現代化的黃金機遇。我們希望幫助消費者採用更健康、更環保的可持續飲食，同時改善供應鏈的其他環節和農業產業的成本結構。

And now let me touch on 2 points. First, we are pursuing partnerships to answer questions on the future of food. We have just entered a recent partnership to quantify the impact of plant-based meats on human health. As alternative proteins are a promising component of a more sustainable diet, it's useful to know how they affect us. And this is our first research partnership, and it will certainly not be our last. For example, a year ago, we started a project to develop a more portable and low-cost test for the pesticide residues. Upon commercialization, that project will improve food safety and quality, thereby benefiting many people.

現在讓我談兩點。首先，我們正在尋求合作夥伴關係來回答有關食品未來的問題。我們最近剛剛建立了合作夥伴關係，以量化植物性肉類對人類健康的影響。由於替代蛋白質是更可持續飲食的一個很有前景的組成部分，因此了解它們如何影響我們是很有用的。這是我們的第一次研究合作，也肯定不會是最後一次。例如，一年前，我們啟動了一個項目，開發一種更便攜、成本更低的農藥殘留檢測方法。該項目商業化後，將提高食品安全和質量，使更多人受益。

Second, we are rethinking logistics systems and infrastructure. We have the privilege of being the only exclusively mobile commerce players of this scale in the world. This unique characteristic of Pinduoduo has helped us to become world's largest commerce platform by the number of paying users.

其次，我們正在重新思考物流系統和基礎設施。我們有幸成為世界上唯一一家如此規模的移動商務參與者。拼多多的這一獨特特徵幫助我們成為全球付費用戶數量最大的商務平台。

This singular focus on mobile-only experience came about because we recognized back in 2015 the immense potential of ubiquitous mobile computing to drive trends in consumer behavior and usher in a totally new era of interactivity among users.

這種對純移動體驗的獨特關注是因為我們早在 2015 年就認識到無處不在的移動計算在推動消費者行為趨勢並開創用戶交互的全新時代方面具有巨大潛力。

Similarly with logistics systems and infrastructure, we are looking at how things can be done with a fresh pair of eyes with no preconceptions. Pinduoduo has an advantage in this area. We originate many parcels, over 1/3 of daily parcels in China last year, and have expertise in complex technological system design. We are already working on algorithm design, data analytics and a cold chain logistics development and optimization. We have applied for some patents as well. We hope to roll it out widely in actual operations and help logistic providers achieve higher efficiency and lower cost.

與物流系統和基礎設施類似，我們正在研究如何以全新的眼光、不帶偏見地完成工作。拼多多在這方面有優勢。我們發起的包裹數量較多，去年佔中國日均包裹量的1/3以上，並且擁有復雜技術系統設計的專業知識。我們已經在致力於算法設計、數據分析以及冷鏈物流的開發和優化。我們也申請了一些專利。我們希望在實際運營中廣泛推廣，幫助物流商實現更高的效率和更低的成本。

As we continue to grow, I believe that we can use our scale for good. As we search for solutions inside the logistics, we remain committed to becoming the world's largest agriculture and grocery platform. Our mobile-only and discovery-oriented platform as well as team purchase model are well suited for food items and daily essentials. We see strong demand for Duo Duo Grocery, which is giving consumers the chance to buy a greater variety of parcels directly from farmers and agri merchants located in the region.

隨著我們的不斷發展，我相信我們可以永遠利用我們的規模。當我們在物流內部尋找解決方案時，我們仍然致力於成為世界上最大的農業和雜貨平台。我們的僅限移動設備和以發現為導向的平台以及團隊購買模式非常適合食品和日常必需品。我們看到對多多雜貨店的強勁需求，這使消費者有機會直接從該地區的農民和農產品商人那裡購買更多種類的包裹。

We will continue to iterate our products and make grocery sourced around the world affordable and available to our growing number of users. We foresee Pinduoduo becoming an important force multiplier and enabler that can truly make a meaningful difference in the world. At the same time, we remain committed to our social inclusion effort and support for the virtualization of rural communities.

我們將繼續迭代我們的產品，讓越來越多的用戶能夠負擔得起並使用來自世界各地的雜貨。我們預計拼多多將成為重要的力量倍增器和推動者，能夠真正為世界帶來有意義的改變。與此同時，我們仍然致力於社會包容性努力並支持農村社區的虛擬化。

For any advancement to be truly durable, we must look out for all our stakeholders. It is critical that we partner and empower them with tech. This means that we will keep on helping farmers and agri merchants operate better and earn more. We will continue to provide training for them to harness the full suite of tools on our platform to optimize sales and benefit from our platform's visibility into final demand. We will help them increase their productivity by working with local governments and agronomic institutes to harness new technology. Since the beginning, we have brought approximately 100,000 new farmers back to their hometown, and we have committed to train another 100,000 new farmers over the next 5 years.

為了使任何進步真正持久，我們必須關注所有利益相關者。我們與他們合作並為他們提供技術支持至關重要。這意味著我們將繼續幫助農民和農商更好地經營、賺更多的錢。我們將繼續為他們提供培訓，以利用我們平台上的全套工具來優化銷售，並從我們平台對最終需求的可見性中受益。我們將與地方政府和農藝機構合作利用新技術，幫助他們提高生產力。從一開始，我們就已經帶動了大約10萬名新農民返鄉，並承諾在未來5年再培訓10萬名新農民。

We want to be a catalyst in this virtuous cycle. Only when farmers and agri merchants earn more, can invest in greener agriculture. In building China's first agri-focused infrastructure, our priority remains partnering existing third-party service providers, first and foremost, of arising from cold chain logistics, warehousing, sorting and delivery.

我們希望成為這個良性循環的催化劑。只有農民和農商賺更多錢，才能投資綠色農業。在建設中國第一個以農業為重點的基礎設施時，我們的首要任務仍然是與現有的第三方服務提供商合作，首先是冷鏈物流、倉儲、分揀和交付方面的服務。

For Duo Duo Grocery, we focus on partnering local communities closely. We work with existing shops, including mom-and-pop stores to serve as our pickup point, enabling them to gain extra income. We also provide courses to them to aid their digital transition. In fact, since the start of Duo Duo Grocery, we have catalyzed the creation of millions of jobs up and down the entire supply chain.

對於多多雜貨店，我們專注於與當地社區密切合作。我們與現有商店（包括夫妻店）合作，作為我們的提貨點，使他們能夠獲得額外收入。我們還為他們提供課程以幫助他們進行數字化轉型。事實上，自從多多雜貨店成立以來，我們已經在整個供應鏈上下游創造了數百萬個就業崗位。

We hope that the system we build will truly benefit all for a long time to come. This is in line with our core value of benfen or doing the right things. We hope that this helps you understand better where we are coming from and share our hope for a better tomorrow.

我們希望我們建立的系統能夠在未來很長一段時間內真正造福所有人。這符合我們“本分”或“做正確的事”的核心價值觀。我們希望這可以幫助您更好地了解我們的出發點，並分享我們對更美好明天的希望。

Thank you. Let me now hand over to David.

謝謝。現在讓我把時間交給大衛。

Thank you, Lei. Hello, everyone. So as per Lei, our overarching commitment is serving our users. We're laser-focused on understanding our users constantly changing needs and working with our partners and merchants to fulfill them in a way that is respectful of the community and the environment. With our aim of becoming the world's largest agriculture and grocery platform, we want to help create food systems that are greener, healthier, more inclusive and more resilient. We developed and assessed all our initiatives against those objectives.

謝謝你，雷。大家好。因此，雷表示，我們的首要承諾是為用戶服務。我們專注於了解用戶不斷變化的需求，並與我們的合作夥伴和商家合作，以尊重社區和環境的方式滿足這些需求。我們的目標是成為世界上最大的農業和雜貨平台，我們希望幫助創建更綠色、更健康、更包容和更有彈性的糧食系統。我們根據這些目標制定並評估了我們的所有舉措。

Let me elaborate on how this has worked in 3 key fronts. First, we are gratified by our positive early foray into agriculture-focused logistics infrastructure system. Duo Duo Grocery, our next-day self-pickup grocery service, is creating many social benefits. It intelligently connects our users directly to local farmers and increases the variety of fresh produce they can purchase online. It lowers cost by reducing spoilage from storage and transport and improves carbon emission and eliminates that from the last mile. Farmers sell more as well.

讓我詳細闡述一下這在 3 個關鍵方面是如何發揮作用的。首先，我們對我們早期積極進軍以農業為重點的物流基礎設施體系感到滿意。我們的次日自提雜貨服務 Duo Duo Grocery 正在創造許多社會效益。它智能地將我們的用戶直接與當地農民聯繫起來，並增加了他們可以在線購買的新鮮農產品的品種。它通過減少儲存和運輸造成的損壞來降低成本，並改善碳排放並消除最後一英里的碳排放。農民也賣得更多。

Along the way, we created new economic opportunities within the communities by tapping on existing shops to serve as collection points and through third-party service providers and warehouses that we have built to support it. We're happy that the growth momentum for Duo Duo Grocery remains very strong. We continue to see an increasing number of farmers and agri merchants as well as pickup points joining our platform. This will only amplify the social benefits that Duo Duo Grocery can bring.

一路走來，我們利用現有商店作為收集點，並通過我們為支持而建立的第三方服務提供商和倉庫，在社區內創造了新的經濟機會。我們很高興多多雜貨店的增長勢頭仍然非常強勁。我們繼續看到越來越多的農民和農產品商人以及提貨點加入我們的平台。這只會放大多多雜貨所能帶來的社會效益。

We have also applied for patents for our proprietary cold chain logistics network system that is aimed at minimizing the loss and quality degradation of agriculture products and other perishable products in transportation. The system applies novel technologies that can plan routes based on information of collection and distribution points, availability of cold chain infrastructure and transit points, among others. It is still early days, but we are optimistic that the solutions we develop and apply will be very -- bring very positive impact going forward.

我們還為專有的冷鏈物流網絡系統申請了專利，旨在最大限度地減少農產品和其他易腐產品在運輸過程中的損失和質量下降。該系統採用新技術，可以根據收集和配送點的信息、冷鏈基礎設施和中轉點的可用性等來規劃路線。現在還處於早期階段，但我們樂觀地認為，我們開發和應用的解決方案將給未來帶來非常積極的影響。

Second, we will introduce our consumer-to-manufacturer, or C2M, revolution to agriculture. We already enjoy a very good partnership with farmers and agri merchants. More than 12 million farmers sell through our platform. This relationship has deepened with initiatives such as Help the Farmers live-stream session last year when COVID-19 struck. We also have longer-term partnerships to plan, operate and sell better through Duo Duo Academy and Duo Duo Farms.

其次，我們將介紹我們的消費者到製造商（C2M）農業革命。我們已經與農民和農產品商人建立了非常良好的合作夥伴關係。超過 1200 萬農民通過我們的平台進行銷售。去年 COVID-19 爆發時，通過“幫助農民”直播會議等舉措，這種關係得到了深化。我們還建立了長期合作夥伴關係，通過多多學院和多多農場更好地規劃、運營和銷售。

It is time to elevate this partnership with C2M. Pinduoduo pioneers C2M, and in the process, recasts how Chinese manufacturers think of their value in the supply chain. We have helped factories build a new generation of brands that is delivering both quality and value for money to our users. By aggregating demand and spending patterns of over 800 million users on our platform, we create useful insights for manufacturers. They become more responsive to market trends by making what consumers indicate they need to and want. C2M also cuts down wastes and cost of distribution and marketing and provides better price for consumers. Our new brand initiative helped many export-oriented OEM partners survive the drought of international demand for their products during the COVID-19 pandemic.

現在是提升與 C2M 的合作關係的時候了。拼多多開創了C2M，並在此過程中重塑了中國製造商如何看待自己在供應鏈中的價值。我們幫助工廠打造新一代品牌，為用戶提供優質且物有所值的產品。通過匯總我們平台上超過 8 億用戶的需求和支出模式，我們為製造商提供了有用的見解。他們通過生產消費者表明需要和想要的產品，對市場趨勢更加敏感。 C2M還減少了浪費以及分銷和營銷成本，並為消費者提供了更好的價格。我們的新品牌計劃幫助許多出口導向型 OEM 合作夥伴度過了 COVID-19 大流行期間國際對其產品需求的枯竭期。

Agriculture will similarly benefit from C2M. Agriculture produce is diverse and unique. Much scale and effort go into cultivation. By helping farmers to sell directly to users on our platform instead of via multiple intermediaries, we give value to the diversity and uniqueness of their produce as well as sight over their final demand.

農業也將同樣受益於 C2M。農產品種類繁多、獨特。大量的規模和努力投入到種植中。通過幫助農民在我們的平台上直接向用戶銷售而不是通過多個中間商，我們賦予他們產品的多樣性和獨特性以及他們的最終需求的價值。

We're now focused on helping more farmers to sell better by sharing market insights. Just as we have helped manufacturers, we help farmers more appraised of market information. This enables them to be more responsive to market demand and develop agriculture brands that meet the needs of the market.

我們現在專注於通過分享市場見解來幫助更多農民更好地銷售。正如我們幫助製造商一樣，我們幫助農民更多地評估市場信息。這使他們能夠更好地響應市場需求，開發滿足市場需求的農業品牌。

China is a treasure trove of agriculture and culinary delights. There are plenty of gems hidden in plain sights waiting to be discovered by millions of consumers across the country. We will lend these growers and producers a helping hand to better market their products and develop brand recognition.

中國是農業和美食的寶庫。平淡的景像中隱藏著大量的瑰寶，等待著全國數百萬消費者的發現。我們將為這些種植者和生產者提供幫助，以更好地營銷他們的產品並提高品牌知名度。

Third, we are making headway in tapping on science to improve the food system. As Lei mentioned, we are backing a first of its kind study on the health impact of plant-based meat. There is growing recognition that current dietary patents are neither healthy nor environmentally sustainable. Replacing meat with plant-based alternative is a promising solution to both issues. When completed, the study will help consumers make informed choices on dietary transition and manufacturers refine their products correspondingly.

第三，我們在利用科學改善糧食系統方面取得進展。正如雷提到的，我們正在支持一項關於植物性肉類對健康影響的首次研究。人們越來越認識到，當前的飲食專利既不健康，也不具有環境可持續性。用植物性替代品代替肉類是解決這兩個問題的一個有希望的解決方案。完成後，該研究將幫助消費者在飲食轉變方面做出明智的選擇，並幫助製造商相應地改進其產品。

The spirit of this partnership is very much in line with our earlier partnership to develop a more portable and lower cost test for contaminates on produce, which will help improve food safety and consumer confidence. We will continue to actively look for collaboration opportunities on agri food tech with partners around the world.

此次合作的精神與我們之前的合作精神非常一致，即開發一種更便攜、成本更低的農產品污染物檢測方法，這將有助於提高食品安全和消費者信心。我們將繼續積極尋找與世界各地合作夥伴在農業食品技術方面的合作機會。

At the same time, we have also been active supporter of the initiatives to apply the most advanced technology in agriculture. We're proud to have jointly organized the first China Agricultural Robot Innovation Competition. The competition, which conducted with an award presentation -- concluded with an award presentation last week attracted over 195 participating teams to apply robotics to agriculture. We're proud to have supported this competition as robotics is at its early stage in agriculture in China, but holds a lot of promise. We are convinced that our holistic efforts will bring progress to our food systems and benefits stakeholders including our users, farmers and merchants, the communities we operate in and the planet.

同時，我們也積極支持在農業中應用最先進技術的舉措。我們很榮幸能夠聯合舉辦首屆中國農業機器人創新大賽。該競賽以頒獎形式進行，並於上週以頒獎形式結束，吸引了超過 195 個參賽團隊將機器人技術應用於農業。我們很自豪能夠支持這項競賽，因為機器人技術在中國農業領域還處於早期階段，但前景廣闊。我們相信，我們的整體努力將為我們的糧食系統帶來進步，並使利益相關者受益，包括我們的用戶、農民和商人、我們經營所在的社區和地球。

Finally, even as we place a lot of emphasis on agriculture and food, we have not lost sight of the need to nourish the mind. In April, we launched Duo Duo Reading Month. Through that, users could access classics like Moby Dick or Notre-Dame de Paris and purchase them at discount. Famous historians and writers join our live-streaming sessions to recommend books to readers.

最後，即使我們非常重視農業和糧食，我們也沒有忽視滋養心靈的必要性。 4月份，我們推出了“朵朵讀書月”。通過這種方式，用戶可以訪問《白鯨記》或《巴黎圣母院》等經典作品，並以折扣價購買。著名歷史學家和作家加入我們的直播環節，向讀者推薦書籍。

In conjunction with the Inaugural China International Consumer Products Expo at Haikou earlier this month, we partnered with CCTV News to bring our CNY 10 billion program live-streaming studio to Hainan. Through our live stream, users were transported to Hainan and learned about the specialty products, cuisine and foods -- fruits as well as interesting items to offer at the expo. We'll continue to bring color and new experiences to our users through similar initiatives going forward.

配合本月初在海口舉行的首屆中國國際消費品博覽會，我們與央視新聞合作，將我們耗資100億元人民幣的節目直播間帶到海南。通過我們的直播，用戶被帶到了海南，了解了海南的特產、美食、水果以及博覽會上提供的有趣物品。我們將繼續通過類似的舉措為用戶帶來色彩和新體驗。

Let me now hand it over to Tony.

現在讓我把它交給托尼。

Thank you, David. Now let me take you through our financial results for the first quarter 2021. We continue to see solid user growth in Q1 and are pleased with the progress we have made in building trust and winning mind share with our users.

謝謝你，大衛。現在讓我向您介紹我們 2021 年第一季度的財務業績。我們在第一季度繼續看到用戶的穩健增長，並對我們在與用戶建立信任和贏得心智分享方面取得的進展感到高興。

Our new active buyers for the last 12 months ending March 31, 2021, increased to 823.8 million, up 35.4 million from the prior quarter. Our MAU in Q1 reached 724.6 million from the prior quarter. This is up 49% compared to the same quarter in 2020. Our MAU as a percentage of our annual active buyers was 88% in the quarter, our highest engagement record achieved for any first quarter.

截至 2021 年 3 月 31 日的過去 12 個月，我們的新活躍買家增至 8.238 億，比上一季度增加 3540 萬。我們第一季度的月活躍用戶數較上一季度達到 7.246 億。與 2020 年同季度相比，增長了 49%。本季度我們的月活躍用戶佔年度活躍買家的比例為 88%，這是我們第一季度創下的最高參與度記錄。

According to National Bureau of Statistics, during the Q1, total retail sales in China grew 34% and online sales of physical goods increased 24% from the same quarter in 2020. The number of express delivery parcels in Q1 grew 75%. A significant growth rate in both online sales and -- of physical goods and the parcel shipment volume reflected a strong recovery in e-commerce activities from the low base in Q1 2020 due to the business interruption caused by the COVID-19 outbreak.

據國家統計局數據，2020年一季度，我國社會消費品零售總額同比增長34%，實物商品網上零售額同比增長24%。一季度快遞包裹數量增長75%。在線銷售以及實體商品和包裹運輸量的顯著增長反映出電子商務活動從 2020 年第一季度因 COVID-19 爆發導致業務中斷的低基數中強勁復甦。

We also saw less pronounced Chinese New Year holiday related seasonality in Q1 this year as more merchants stayed open in response to people staying put. We collaborated with merchants and logistics service providers to ensure uninterrupted order fulfillment and delivery during the quarter.

今年第一季度，我們還看到與農曆新年假期相關的季節性因素不太明顯，因為更多商家因人們留在原地而保持營業。我們與商家和物流服務提供商合作，確保本季度不間斷的訂單履行和交付。

In terms of P&L, our total revenues in the quarter ending March 31, 2021, were RMB 22.2 billion, up 239% from RMB 6.5 billion in the same quarter last year. Excluding revenues from our 1P trials, our total revenues grew by 161% to RMB 17 billion in Q1 2021. The main driver of this growth was our online marketing services.

就損益而言，截至2021年3月31日的季度，我們的總收入為222億元人民幣，比去年同期的65億元人民幣增長239%。不包括 1P 試驗的收入，我們的總收入在 2021 年第一季度增長了 161%，達到 170 億元人民幣。這一增長的主要驅動力是我們的在線營銷服務。

Online marketing services revenue was RMB 14.1 billion this quarter, up 157% compared to the same period last year due primarily to continued increase in merchant activities. We continue to offer better advertising products and analytic tools to our merchants, educate them on how to best leverage these features and improve their services to their targeted users, and thereby, help them meet and exceed their ROI targets. As a result, 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 are pleased to see the growing endorsement by our merchants and our users.

本季度在線營銷服務收入為人民幣141億元，同比增長157%，主要得益於商戶活動持續增加。我們繼續為商家提供更好的廣告產品和分析工具，教育他們如何最好地利用這些功能並改善對目標用戶的服務，從而幫助他們達到並超越投資回報率目標。因此，我們看到商家投入更多資金並探索與用戶互動的新方式，而我們的用戶則瀏覽更多內容並發現更多感興趣的商品。我們很高興看到我們的商家和用戶越來越多地認可。

Our transaction service revenues this quarter amounted to RMB 2.9 billion, which is up 180% 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 Q1; and number two, the service revenues that we recognized in connection with Duo Duo Grocery, for which we provide fulfillment and other related services.

本季度我們的交易服務收入為人民幣29億元，比去年同期增長180%。我們交易服務收入的增長有兩個主要因素：第一，第一季度 GMV 的增長；第二，我們確認了與多多雜貨店相關的服務收入，我們為其提供配送和其他相關服務。

We also recorded RMB 5.1 billion in merchandise sales from our 1P trials in Q1 2021 as compared to RMB 5.4 billion in the preceding quarter. This 1P trial is meant to temporarily meet the demand of our users on products which our merchants cannot fulfill. Therefore, this number may fluctuate from quarter to quarter. Our strategy is unchanged, and this will remain a very small part of the business.

2021 年第一季度，我們的 1P 試點商品銷售額也達到 51 億元人民幣，而上一季度為 54 億元人民幣。此次1P試用是為了暫時滿足用戶對商家無法滿足的產品的需求。因此，這個數字可能會隨著季度的變化而波動。我們的戰略沒有改變，這仍將是業務的一小部分。

Now moving on to costs. Our total cost of revenues increased from RMB 1.8 billion in Q1 2020 to RMB 10.7 billion this quarter. The increase was mainly due to the costs and expenses attributable to 1P merchandise sales, higher cost of payment processing fees, cloud service fees and delivery storage fees. Total operating expenses this quarter were RMB 15.6 billion as compared to RMB 9.1 billion in the same quarter of 2020. Our total non-GAAP basis operating expenses were RMB 14.6 billion as compared to RMB 8.3 billion in the same quarter a year ago.

現在轉向成本。我們的總收入成本從 2020 年第一季度的 18 億元人民幣增加到本季度的 107 億元人民幣。增加的主要原因是1P商品銷售的成本和費用、支付處理費、雲服務費和配送倉儲費的成本增加。本季度的總運營支出為 156 億元人民幣，而 2020 年同季度為 91 億元人民幣。我們的非 GAAP 基礎運營支出總額為 146 億元人民幣，而去年同期為 83 億元人民幣。

Our non-GAAP sales and marketing expenses this quarter increased 80% to RMB 12.7 billion from RMB 7.1 billion in the same quarter of 2020. This was mainly due to an increase in online and off-line advertisement and promotions as we continue to invest in user engagement and mind share.

本季度我們的非 GAAP 銷售和營銷費用從 2020 年同季度的 71 億元人民幣增長 80% 至 127 億元人民幣。這主要是由於我們繼續投資於線上和線下廣告和促銷活動而增加。用戶參與度和思想分享。

In the first quarter, we had an incentive program for merchants who could stay open and continue dispatching orders during the spring festival. We also recently marked the second anniversary of our hugely popular CNY 10 billion program, which has steadily expanded over time to cover all categories, including agriculture product and fresh produce.

一季度，我們對春節期間能夠繼續營業、繼續發貨的商家進行了激勵計劃。最近，我們還慶祝了廣受歡迎的百億計劃兩週年，該計劃隨著時間的推移穩步擴大，覆蓋了包括農產品和生鮮農產品在內的所有類別。

In line with our platform's vision of helping to accelerate the transformation of the agriculture sector, we will continue to make it free for agriculture products and fresh produce to be featured in this program. At the same time, we will continue to refine and improve the quality of our CNY 10 billion program by raising the standard required for merchants to participate. Our 824 million users trust us to deliver great value and quality to them, and we will constantly seek to improve to uphold their trust in us.

根據我們平台幫助加速農業轉型的願景，我們將繼續免費提供農產品和生鮮農產品。同時，我們將繼續細化和提升百億計劃的質量，提高商家參與標準。我們的 8.24 億用戶相信我們能夠為他們提供巨大的價值和質量，我們將不斷尋求改進以維持他們對我們的信任。

On a non-GAAP basis, our sales and marketing expenses as a percentage of our revenue, excluding 1P trials this quarter was 75% as compared to 103% and 108% for the same quarter in 2019 and in 2020. A reduction in sales and marketing expenses as a percentage of revenue is a reflection of our economic of scale and our consistent efforts of sticking to a high standard of ROI benchmarks.

按非公認會計原則計算，本季度我們的銷售和營銷費用佔收入的百分比（不包括 1P 試驗）為 75%，而 2019 年同季度和 2020 年同期分別為 103% 和 108%。營銷費用佔收入的百分比反映了我們的規模經濟以及我們堅持高標準投資回報率基準的一貫努力。

On a non-GAAP basis, our general and administrative expenses were RMB 161 million, an increase of 36% from RMB 118 million in the same quarter of 2020, primarily due to an increase in headcount. Our non-GAAP research and development expenses were RMB 1.7 billion, an increase of 55% from RMB 1.1 billion in the same quarter of 2020. The increase was primarily due to an increase in headcount and the recruitment of more experienced R&D personnel as well as increase in R&D-related cloud services expenses. On a non-GAAP basis, our R&D expenses as a percentage of our revenues, excluding 1P contribution, was 10% as compared to 17% for the same quarter last year.

按非公認會計原則計算，我們的一般及管理費用為人民幣 1.61 億元，較 2020 年同季度的人民幣 1.18 億元增長 36%，主要是由於員工人數的增加。我們的非公認會計準則研發費用為人民幣 17 億元，較 2020 年同季度的人民幣 11 億元增長 55%。這一增長主要是由於員工人數的增加以及招聘更有經驗的研發人員以及研發相關雲服務費用增加。按非公認會計準則計算，我們的研發費用佔收入的百分比（不包括 1P 貢獻）為 10%，而去年同期為 17%。

To sum up, operating loss for the quarter was RMB 4.1 billion on a GAAP basis compared with operating loss of RMB 4.4 billion in the same quarter of 2020. Non-GAAP operating loss was RMB 3.2 billion compared with operating loss of RMB 3.6 billion in the same quarter of 2020. Our non-GAAP operating loss as a percentage of our revenue improved from minus 55% in Q1 2020 to minus 14% in Q1 2021.

綜上所述，按GAAP 計算，本季度運營虧損為41 億元人民幣，而2020 年同季度的運營虧損為44 億元人民幣。非GAAP 運營虧損為32 億元人民幣，而2020 年同季度的運營虧損為36 億元人民幣。 2020 年同一季度。我們的非 GAAP 營業虧損佔收入的百分比從 2020 年第一季度的負 55% 改善到 2021 年第一季度的負 14%。

Net loss attributable to ordinary shareholders was RMB 2.9 billion as compared to net loss of RMB 4.1 billion in the same quarter last year. Basic and diluted net loss per ADS were RMB 2.33 compared with RMB 3.54 in the same quarter of 2020. Non-GAAP net loss attributable to ordinary shareholders was RMB 1.9 billion compared with RMB 3.2 billion in the same quarter last year. Non-GAAP basic and diluted net loss per ADS were RMB 1.52 compared with RMB 2.73 in the same quarter of 2020. That completes the profit and loss payment for the first quarter.

歸屬於普通股股東的淨虧損為人民幣29億元，而去年同期淨虧損為人民幣41億元。每份美國存託股基本和稀釋淨虧損為人民幣2.33 元，而2020 年同季度為人民幣3.54 元。非GAAP 歸屬於普通股股東的淨虧損為人民幣19 億元，而去年同期為人民幣32 億元。非 GAAP 每股美國存託股基本和攤薄淨虧損為人民幣 1.52 元，而 2020 年同季度為人民幣 2.73 元。第一季度損益支付完畢。

Our net cash flow used in operating activities was RMB 3.7 billion compared with outflow of RMB 567 million in the same quarter of 2020, primarily due to an increase in restricted cash outflow due to seasonality, offset by an increase in online marketing services revenues.

我們的經營活動使用的現金流量淨額為人民幣37億元，而2020年同季度的流出為人民幣5.67億元，主要是由於季節性導致現金流出受限增加，但被在線營銷服務收入的增加所抵消。

As of March 31, 2021, the company had RMB 83.4 billion in cash, cash equivalents and short-term investments. As of the end of April 2021, USD 756.4 million of our 0% convertible bonds due in 2024 have been converted into equity.

截至2021年3月31日，公司擁有現金、現金等價物和短期投資834億元人民幣。截至2021年4月底，2024年到期的0%可轉換債券中的7.564億美元已轉換為股權。

This concludes my prepared remarks. Operator, we are ready for questions. Thank you.

我準備好的發言到此結束。接線員，我們準備好回答問題了。謝謝。

(Operator Instructions) We have the first question coming from the line of Thomas Chong from Jefferies.

（操作員說明）我們的第一個問題來自 Jefferies 的 Thomas Chong。

I have 2 questions. The first question is about monetization. Can you comment about the feedback on our advertising products? And how we should think about the monetization rate going forward?

我有 2 個問題。第一個問題是關於貨幣化。您能否評論一下我們廣告產品的反饋？我們應該如何考慮未來的貨幣化率？

And my second question is about the 1P business. You said that the 1P GMV contribution to our overall GMV is around like 1%. And on the other hand, can you also comment about our non-GAAP net margin without the 1P business? And also, how about the non-GAAP net margin without 1P? And Duo Duo Maicai.

我的第二個問題是關於1P業務的。您說 1P GMV 對我們整體 GMV 的貢獻約為 1% 左右。另一方面，您能否評論一下我們不含 1P 業務的非 GAAP 淨利潤率？另外，沒有 1P 的非 GAAP 淨利潤率又如何呢？還有朵朵麥菜。

Okay. That sounds a little bit more than 2 questions. But let me try to address one by one. Thank you again for the questions. For the first question, I want to emphasize here, our strategy has always been serving our users well. That being said, we believe that either the growth or the monetization are a natural result of that. And then we also believe there's still a lot of room to grow from where we are now.

好的。這聽起來有點多於兩個問題。但讓我嘗試一一解決。再次感謝您的提問。對於第一個問題，我想在這裡強調一下，我們的策略一直是服務好我們的用戶。話雖這麼說，我們相信增長或貨幣化都是其自然結果。我們還相信，與現在相比，我們還有很大的成長空間。

Today, we see very strong growth performance in Q1 because of the merchants' ROI actually is reflected in our revenue. As you can see, our revenue in this quarter continued to grow, which is a reflection of our merchants' confidence with the platform and with -- the confidence in the ROI they achieved.

今天，我們看到第一季度的增長非常強勁，因為商家的投資回報率實際上反映在我們的收入中。正如您所看到的，我們本季度的收入持續增長，這反映了我們的商家對平台的信心以及對他們所實現的投資回報率的信心。

What the platform is providing is better design of various tools to help them to understand their target user better and -- so that they can leverage as well as the Duo Duo Academy to gain more insights on how the technology analysis can help them to enhance their ROI. I believe as long as this target can be achieved, naturally the growth and monetization will follow.

該平台提供的是各種工具的更好設計，以幫助他們更好地了解目標用戶，這樣他們就可以利用 Duo Duo 學院來獲得更多關於技術分析如何幫助他們提高自己的見解。投資回報率。我相信只要這個目標能夠實現，增長和貨幣化自然就會隨之而來。

On your second question on the 1P business, as I mentioned in the prepared remarks, our 1P business is a temporarily measurement to offer products that our consumer want, but for which our vendor cannot offer at that time. So this is another strategic priority for us. The GMV contribution of the 1P business is immaterial compared to the overall GMV of the platform.

關於你提到的第二個問題，關於1P業務，正如我在準備好的發言中提到的，我們的1P業務是一個臨時措施，提供我們的消費者想要的產品，但我們的供應商當時無法提供。所以這是我們的另一個戰略重點。與平台整體GMV相比，1P業務的GMV貢獻並不重要。

And I guess that's -- your third question on the margin profile, the 1P business contribution to this does have an impact, but stripping that out, our total platform margin profile will stay more or less the same range as previous quarters.

我想這是關於利潤狀況的第三個問題，1P 業務對此的貢獻確實有影響，但排除這一點，我們的總平台利潤狀況將或多或少與前幾個季度保持相同的範圍。

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

下一個問題來自海通國際的Natalie Wu。

Congratulations on a very solid quarter. Just curious how do you see the update of the competitive landscape change in the coming year? Given on the one hand, we've seen several antitrust-related regulatory departments lately. And on the other hand, the space seems to be getting more and more crowded with the entry of cross-border players like social content platforms and local live service providers. Just wondering does any of that affect your internal GMV target for this year?

祝賀本季度業績非常穩健。只是好奇您如何看待來年競爭格局的更新變化？一方面，最近我們看到了幾個反壟斷相關的監管部門。另一方面，隨著社交內容平台和本地直播服務提供商等跨境參與者的進入，這個空間似乎變得越來越擁擠。只是想知道這是否會影響您今年的內部 GMV 目標？

(foreign language)

（外語）

Thank you. Let me go ahead and address this question in Chinese, and David will translate into English this evening.

謝謝。讓我用中文回答這個問題，今晚大衛將翻譯成英文。

(foreign language)

（外語）

[Interpreted] So first, your question regarding competition. In China, the Internet space has always been very competitive. And it is also true that e-commerce in China is very advanced in terms of development ahead of the rest of the world. But many people underestimate the retail opportunity that comes about and the broad market potential that exists as the experiences improve.

[解讀]首先，你關於競爭的問題。在中國，互聯網領域的競爭一直非常激烈。誠然，中國的電子商務發展非常領先於世界其他地區。但許多人低估了隨之而來的零售機會以及隨著體驗改善而存在的廣泛市場潛力。

(foreign language)

（外語）

[Interpreted] So taking agriculture as an example, the digitalization of the industry remains low. And opportunities are abundant for those like PDD that can help drive efficiency and other fundamental changes.

【解讀】那麼以農業為例，行業的數字化程度仍然較低。對於像 PDD 這樣的人來說，機會很多，可以幫助提高效率和其他根本性變革。

(foreign language)

（外語）

[Interpreted] Looking back to 2015 when we entered this business, we foresaw that mobile Internet will lead to some very fundamental changes to consumer behaviors, making it more real-time, more spontaneous and making the access more ubiquitous. And we have decided to focus on the development of an entirely mobile product. And that meant we also had to make some very fundamental changes to the e-commerce product available at the time.

【解讀】回顧2015年我們進入這個行業的時候，我們預見到移動互聯網將會給消費者的行為帶來一些非常根本的改變，變得更加實時、更加自發、讓訪問更加無處不在。我們決定專注於開發完全移動的產品。這意味著我們還必須對當時可用的電子商務產品進行一些非常根本的改變。

(foreign language)

（外語）

[Interpreted] Consumers' behaviors can evolve quickly, and we believe that people always want to more -- have more choices. So to constantly serve our users better, we need to be aware of these constant changes in consumer trends and to invest in technology and business model innovation.

[解讀]消費者的行為可以快速演變，我們相信人們總是想要更多——擁有更多選擇。因此，為了不斷更好地服務我們的用戶，我們需要意識到消費者趨勢的不斷變化，並投資於技術和商業模式創新。

(foreign language)

（外語）

[Interpreted] Today, being the largest agriculture platform in China, Pinduoduo is well positioned to play another leading role in driving some change. The team is very excited about the value we can bring to the agriculture industry.

【解讀】如今，作為中國最大的農業平台，拼多多完全有能力在推動變革方面發揮又一個引領作用。該團隊對我們能為農業帶來的價值感到非常興奮。

(foreign language)

（外語）

[Interpreted] So going back to your question around competition, I believe that each company is unique. And ultimately, it boils down to the unique value proposition that each player represents to the consumers. For us, we have been focused on delivering value for many products with fun and interactive shopping experiences to our consumers through our mobile-only platform from day 1. User-centric is deeply rooted in our principles, and it's the first thing that we think of when we need to make tough decisions.

[解讀]回到你關於競爭的問題，我相信每家公司都是獨一無二的。最終，它歸結為每個參與者向消費者呈現的獨特價值主張。對我們來說，從第一天起，我們就致力於通過我們的移動平台為消費者提供有趣和互動的購物體驗，為許多產品提供價值。以用戶為中心深深紮根於我們的原則中，這是我們首先考慮的事情我們何時需要做出艱難的決定。

(foreign language)

（外語）

[Interpreted] The market potential is huge, and we are still in the early days, particularly early in a business like Duo Duo Grocery. As the service standards improves and the consumer experiences improve, we believe this new business model will be able to motivate more consumers and further expand the market -- addressable market.

【解讀】市場潛力巨大，而且我們還處於早期階段，尤其是像多多雜貨這樣的業務還處於早期階段。隨著服務標準的提高和消費者體驗的改善，我們相信這種新的商業模式將能夠激勵更多的消費者，進一步擴大市場——潛在市場。

(foreign language)

（外語）

[Interpreted] At the same time, we think healthy competition is a good thing, whether you are talking about the 2B side of the business or the 2C side of the business, because as more platforms develop, the users can get better services. And that is really fundamentally why we entered this business in the first place.

【解讀】同時，我們認為良性競爭是一件好事，無論是2B端業務還是2C端業務，因為隨著更多平台的發展，用戶可以獲得更好的服務。這就是我們最初進入這個行業的根本原因。

The next question comes from Robin Zhu from Bernstein.

下一個問題來自伯恩斯坦的朱羅賓。

(foreign language) So I have 2 questions. One is on bringing brands onto the PDD platform, and whether there's progress to be shared in Q1, some of the key bottlenecks and challenges that management might want to share.

（外語）所以我有兩個問題。其中一個是將品牌引入PDD平台，以及第一季度是否有進展可以分享，管理層可能希望分享的一些關鍵瓶頸和挑戰。

And then the second question is, again, on monetization rates in Q1 compared to the last few quarters and outlook, how quickly they think this can increase?

第二個問題是，與過去幾個季度相比，第一季度的貨幣化率和前景，他們認為這一增長速度會多快？

Sure, Robin. Thank you for your questions. Let me speak to the brand question that you raised, and then I will pass it over to Tony to talk about your question on monetization.

當然，羅賓。謝謝您的提問。讓我談談你提出的品牌問題，然後我將它轉給托尼來談談你關於貨幣化的問題。

So first and foremost, I would say that we are making steady progress with brands because we believe our user-centric mentality is very much aligned with how brand efforts in turn are looking for new channels to reach and serve their prospective customers. So as a user scale and engagement growth, we're seeing an increasing number of brands approaching us to collaborate.

因此，首先也是最重要的是，我想說我們正在與品牌取得穩步進展，因為我們相信我們以用戶為中心的心態與品牌努力尋找新渠道來接觸和服務潛在客戶的方式非常一致。因此，隨著用戶規模和參與度的增長，我們看到越來越多的品牌與我們接洽合作。

Since the beginning of the year, you have seen a number of notable new additions to our platform entering into fairly deep strategic collaborations. This includes brand names on the international side, Adidas, Johnson & Johnson and Unilever. And we have also entered into strategic collaborations with the likes of Midea and Ecovacs.

自今年年初以來，您已經看到我們平台上許多值得注意的新成員進入了相當深入的戰略合作。其中包括國際品牌阿迪達斯、強生和聯合利華。我們還與美的、科沃斯等公司達成戰略合作。

So you asked about challenges in terms of working with brands. I think it's really, really helping them to understand the incremental value that PDD as a platform can bring to brands and how we can work with them to better target and address new users and identify users in a very cost-efficient way and improve their own experiences and their own reach. As an example of that I will point to our efforts with Midea on the C2M side. We're working with them to deliver more value for money quality products to consumers on our platform by developing a co-customized line of washing machines. So these are the type of the differentiation and efforts of strategic collaborations that we can invest, and we're investing in brand partners who are working with us to grow their businesses on PDD.

所以您詢問了與品牌合作方面的挑戰。我認為這真的非常幫助他們了解PDD 作為一個平台可以為品牌帶來的增量價值，以及我們如何與他們合作，更好地定位和吸引新用戶，以非常經濟高效的方式識別用戶並改進他們自己的產品經驗和自己的影響力。作為一個例子，我會提到我們與美的在C2M方面所做的努力。我們正在與他們合作，通過開發共同定制的洗衣機系列，為我們平台上的消費者提供更多物有所值的優質產品。因此，這些是我們可以投資的差異化和戰略合作努力的類型，我們正在投資與我們合作在 PDD 上發展業務的品牌合作夥伴。

Let me then actually ask Tony to make some more comments on your question on monetization.

那麼，讓我實際上請託尼對你關於貨幣化的問題發表更多評論。

Yes, again, coming back to our vision and our key strategic priority for Pinduoduo is always focusing on the users, how to serve our users better. And as you know, we have 824 million users. And in the past few quarters, basically, we are having incremental new users coming to the platform, like around 15 million per quarter. And last quarter, it's around 35 million, close to 40 million. And these new users, they need time to build their mind share and trust with the platform. And what we are focusing now is really helping our merchants by providing them tools and help them to understand better, to reach their target first. Therefore, our users can benefit from there -- the service provided by our platform and the merchant. Then we can have this fun and interactive experience with us and stay longer time with us. And monetization will be a natural result coming out of this target being achieved.

是的，再次回到我們的願景，我們拼多多的戰略重點始終是圍繞用戶，如何更好地服務我們的用戶。如您所知，我們擁有 8.24 億用戶。基本上，在過去的幾個季度中，我們的平台新用戶不斷增加，大約每季度 1500 萬。上個季度，這個數字約為 3500 萬，接近 4000 萬。而這些新用戶，他們需要時間來建立他們對平台的認知和信任。我們現在關注的是真正幫助我們的商家，為他們提供工具，幫助他們更好地理解，首先實現他們的目標。因此，我們的用戶可以從中受益——我們的平台和商家提供的服務。然後我們就可以和我們一起享受這種有趣的互動體驗，並和我們呆更長時間。實現這一目標後，貨幣化將是自然而然的結果。

The next question comes from Jialong Shi from Nomura.

下一個問題來自野村證券的史嘉龍。

Management, congratulations on a very solid quarter. My question is, can you provide any colors to help us to understand the size of your community grocery business and its associated loss in 1Q? And earlier this year itself, we noticed on media several local governments issued warning to community grocery platforms due to the alleged excessive subsidies provided by platform for products sold. I just wonder after the intervention of the governments, have you guys seen any sort of de-escalation in the competition?

管理層，祝賀您度過了一個非常穩定的季度。我的問題是，您能否提供任何顏色來幫助我們了解您的社區雜貨業務的規模及其第一季度的相關損失？今年早些時候，我們在媒體上註意到，多個地方政府因社區雜貨平台涉嫌對所售產品提供過度補貼而向社區雜貨平台發出警告。我只是想知道，在政府乾預之後，你們是否看到競爭有所緩和？

Okay, let me take the first question. Let me just repeat the question you raised, is on the overall performance of Duo Duo Grocery business financially, I guess.

好的，我來回答第一個問題。讓我重複一下您提出的問題，我猜是關於多多雜貨業務的整體財務表現。

Yes.

是的。

First of all, I think we started the Duo Duo Grocery business around a little bit more than 2 quarters. This is still a very young business. And as previously mentioned by Lei and David in their remarks, Duo Duo Grocery is one of our strategic priorities, a very, very important initiative for us to help to review the agriculture sector, help to bring additional values to our users. So to me, this is a long journey, a journey full of challenge and excitement.

首先，我認為我們開始多多雜貨業務大約兩個季度多一點。這仍然是一個非常年輕的企業。正如雷雷和大衛之前在發言中提到的，多多雜貨是我們的戰略重點之一，對我們來說是一個非常非常重要的舉措，可以幫助我們重新審視農業領域，幫助我們為用戶帶來額外的價值。所以對我來說，這是一段漫長的旅程，一段充滿挑戰和興奮的旅程。

So up to now, I'd say that it's too early to tell the business model. And there's still a lot of room to improve operationally. So far, we have been quite disciplined in our investment in Duo Duo Grocery. And we evaluate every decision based against a set of internal ROI targets. We are quite pleased with the progress we have made to date. We will continue to evaluate the necessary investment on a case-by-case basis.

所以到目前為止，我想說現在判斷商業模式還為時過早。而且操作上還有很大的改進空間。到目前為止，我們對多多雜貨的投資一直相當嚴格。我們根據一組內部投資回報率目標評估每個決策。我們對迄今為止所取得的進展感到非常滿意。我們將繼續根據具體情況評估必要的投資。

One thing we need to highlight here, we will continue to invest in this area. Some of the areas in the remarks as I mentioned, things like logistic infrastructure technology and also technologies around how to better aggregate the demand in each of the location. All these type of investment, we will invest heavily.

我們需要在這裡強調的一件事是，我們將繼續在這一領域進行投資。正如我在評論中提到的一些領域，例如物流基礎設施技術以及如何更好地聚合每個地點的需求的技術。所有這些類型的投資，我們都會大量投資。

Jialong, let me just add up to Tony's comments and around your -- and your question around competition. I would say that, look, as we have conceived Duo Duo Grocery as an extension of our platform business, our priorities are really focused around how to give our users a more holistic and integrated experiences, whether they decide that fulfillment and the convenience through Duo Duo Grocery makes more sense or they decide to continue to shop or make purchases for some items on the overall platform.

Jialong，讓我補充一下托尼的評論以及您關於競爭的問題。我想說的是，看，當我們將Duo Duo Grocery 設想為我們平台業務的延伸時，我們的優先事項實際上集中在如何為我們的用戶提供更全面和綜合的體驗，無論他們是否通過Duo 來決定滿足感和便利性Duo Grocery 更有意義，或者他們決定繼續在整個平台上購物或購買某些商品。

So whilst the competition in the space continues to be intense, I think it's more important that we focus on serving our users well, and that's certainly what preoccupies us as opposed to looking at what other people are doing.

因此，儘管該領域的競爭仍然激烈，但我認為更重要的是我們專注於為用戶提供良好的服務，這當然是我們關注的事情，而不是關注其他人在做什麼。

The next question comes from Alicia Yap from Citigroup.

下一個問題來自花旗集團的 Alicia Yap。

Congratulations on the strong set of results. I have 2 questions. The first one is when we look at the transaction commission revenue line, is there any change of the payment rate? Or is that fair to assume all the incremental improvement in the revenue was mainly due to the fees that you're able to charge for the Duo Duo Grocery?

祝賀您取得瞭如此強勁的成績。我有 2 個問題。第一個是我們看交易佣金收入線，支付率有沒有變化？或者假設收入的所有增量增長主要是由於您可以向 Duo Duo 雜貨店收取的費用，這是否公平？

And then second question is how many of these new users that you were able to acquire or coming to our platform is just purely purchasing the Duo Duo Grocery produce only versus the original Duo Duo platform? Any color you can share would be great.

第二個問題是，與原來的 Duo Duo 平台相比，您能夠獲得或來到我們平台的新用戶中有多少只是純粹購買 Duo Duo Grocery 產品？任何你能分享的顏色都會很棒。

Okay. Thank you for the question. Let me go first on the transaction service revenue. Our transaction service revenue increased nearly 180% versus last year, the same period. The rate itself doesn't change. We didn't change the rate. And there's 2 factors that contribute to this increase. Number one is in line with the GMV growth in Q1. Number two is the revenue associated with Duo Duo Grocery.

好的。感謝你的提問。先說交易服務收入。我們的交易服務收入比去年同期增長了近180%。利率本身不會改變。我們沒有改變費率。有兩個因素導致了這一增長。第一與第一季度的 GMV 增長一致。第二是與多多雜貨店相關的收入。

And as for your second question, I will let David comment.

至於你的第二個問題，我會讓大衛評論一下。

Alicia, we have not disclosed, obviously, the breakdown of the users between Duo Duo Grocery versus our e-commerce platform because that's really not how we -- the management thinks about the business.

艾麗西亞，顯然，我們沒有透露多多雜貨店與我們的電子商務平台之間的用戶細分，因為這實際上不是我們管理層對業務的看法。

Well, with the introduction of Duo Duo Grocery, we saw improvement engagement -- in engagement and purchase frequency among our users. This is because the users' needs in fresh produce and groceries. They now have multiple channels to satisfy those needs, whether it is through the Duo Duo Grocery channels or continuing through the main app.

嗯，隨著 Duo Duo Grocery 的推出，我們看到了用戶參與度和購買頻率的改善。這是因為用戶對生鮮農產品和雜貨的需求。他們現在有多個渠道來滿足這些需求，無論是通過 Duo Duo Grocery 渠道還是繼續通過主應用程序。

From a user's perspective, we are looking at this really as satisfying their needs across different product categories and across different types of fulfillments. So this really is meant to be one integrated app. The orders mostly are generated to the Duo Duo Grocery channel through our app. So we don't focus on what percentage of our annual active buyer base uses Duo Duo Grocery only any more than we focus on how they are specific for any particular product categories.

從用戶的角度來看，我們實際上將其視為滿足他們對不同產品類別和不同類型履行的需求。所以這確實是一款集成應用程序。訂單大部分是通過我們的應用程序生成到 Duo Duo Grocery 渠道的。因此，我們不關注年度活躍買家群體中僅使用 Duo Duo Grocery 的百分比，就像我們關注它們如何針對任何特定產品類別一樣。

Next question comes from Jerry Liu from UBS.

下一個問題來自瑞銀集團（UBS）的劉傑瑞（Jerry Liu）。

Management, two parts. So the first is following up on the service fee. Could we just describe the accounting a little bit -- in a little bit more detail, especially if we're talking typical, say, RMB 10 or RMB 100 of GMV from Duo Duo Maicai, then how does that flow through in terms of the service fees? Is that just a markup for the platform?

管理，兩部分。所以首先是服務費的跟進。我們能否稍微詳細地描述一下會計處理，特別是如果我們談論典型的，比如說，多多買菜的 GMV 為 10 元或 100 元，那麼它是如何流動的？服務費？這只是平台的標記嗎？

And then secondarily, I just want to ask about the logistics investments. We saw the additional commentary in a separate press release. Where could any of these investments show up this year? Is it still pretty small or could we see R&D, CapEx or any other forms of investments?

其次，我想問一下物流投資的情況。我們在另一份新聞稿中看到了附加評論。今年這些投資會出現在哪裡？它仍然很小嗎？或者我們可以看到研發、資本支出或任何其他形式的投資嗎？

Okay, I would go with the first question. Actually, I don't get it very clear what your question is, but like I said, the transaction service revenue compose of the transaction service fees we are charging on the main platform, and also including a part coming from the Duo Duo Grocery. But the portion of the Duo Duo Grocery kind of transaction service revenue as a percentage of the total numbers are actually small. And I'm not quite sure I get what your question on the accounting treatment on this, probably you can rephrase your question a little bit. But probably, David, you can comment on the second one first.

好的，我會回答第一個問題。其實我不太清楚你的問題是什麼，但是就像我說的，交易服務收入是由我們在主平台上收取的交易服務費組成的，也包括來自多多雜貨店的一部分。但多多雜貨類交易服務收入佔總數的比例其實很小。我不太確定我明白你關於會計處理的問題是什麼，也許你可以稍微改一下你的問題。但大衛，你可能可以先評論第二個。

Yes, so Jerry, maybe if I can just jump in here a little bit. So Duo Duo Grocery, as you know, is a -- is really -- in providing the Duo Duo Grocery service, what we as a platform are offering incrementally is fulfillment and other transaction-related services. And for this, we do charge the merchants participating on our platform a service fee. So that fee is included or is being categorized as part of the transaction services revenue. So there isn't actually anything complicated from an accounting perspective per se. And the costs associated with that is booked under cost of goods -- as part of the cost of goods sold.

是的，所以傑瑞，也許我可以稍微插一下。所以，正如你所知，Duo Duo Grocery 是一個——確實是——在提供 Duo Duo Grocery 服務時，我們作為一個平台正在逐步提供的是履行和其他與交易相關的服務。為此，我們確實向參與我們平台的商家收取服務費。因此，該費用已包含或被歸類為交易服務收入的一部分。因此，從會計角度來看，實際上並沒有什麼複雜的事情。與此相關的成本記入商品成本，作為銷售商品成本的一部分。

So coming back to your question around logistics and investments over the long run, look, I mean, we are looking at logistics as -- really as a result of how consumer purchasing behaviors and fulfillment requirements have evolved over time, right? If you take a step back and look back to the rise of e-commerce in China, it's going to be -- it was quite hard for anybody to imagine China today will have an infrastructure that can serve or service -- handle 300 million daily parcels efficiently.

因此，回到您關於長期物流和投資的問題，我的意思是，我們將物流視為——實際上是消費者購買行為和履行要求如何隨著時間的推移而演變的結果，對嗎？如果你退後一步，回顧電子商務在中國的崛起，那麼任何人都很難想像今天的中國將擁有能夠服務或服務的基礎設施——每天處理 3 億人次高效包裹。

While the current system what we have today can cope with the scale, we do think that next wave of efficiency gains is going to come from a more flexible system, right? So more technology, more efficiency driven, that can help reduce the need, for example, multiple shipment needs or how to leverage the current infrastructure such that we can deliver greener logistics experience. So as we look at how the consumer experiences are changing and the new fulfillment methods and better technologies are becoming important, and this is an area where we are innovating.

雖然我們現有的系統可以應對規模，但我們確實認為下一波效率提升將來自更靈活的系統，對嗎？因此，更多的技術、更多的效率驅動，可以幫助減少需求，例如，多次運輸需求或如何利用當前的基礎設施，以便我們可以提供更綠色的物流體驗。因此，當我們看到消費者體驗如何變化時，新的履行方法和更好的技術變得越來越重要，這是我們正在創新的領域。

So from an investment perspective, I think for the time being, you will see us reflecting this mostly in R&D. You'll also see us looking at our Duo Duo Grocery infrastructure that we have today and looking at where we need to bulk up in terms of our ability to better provide for user experience. One example I can give you is that we have rented additional sorting facilities for fresh produce as a way to improve the service experiences that we can offer to our users. So that will be -- and that would result in higher cost of goods sold from a fulfillment perspective.

因此，從投資的角度來看，我認為目前，您會看到我們主要在研發方面體現這一點。您還將看到我們正在研究我們今天擁有的 Duo Duo Grocery 基礎設施，並研究我們需要在哪些方面增強我們的能力，以更好地提供用戶體驗。我可以舉的一個例子是，我們租用了額外的生鮮農產品分揀設施，作為改善我們為用戶提供的服務體驗的一種方式。因此，從履行的角度來看，這將導致銷售商品的成本更高。

But more specifically, though, we are looking ahead. We're looking at the long term where -- how we can invest. And we are looking at technology. So we've been investing, as Lei mentioned, working on algorithms, data analytics and on cold chain logistics development and optimization. So we'll continue to focus on innovation in the space to better serve our consumers.

但更具體地說，我們正在展望未來。我們正在著眼於長期投資——如何投資。我們正在關注技術。因此，正如雷提到的，我們一直在投資算法、數據分析以及冷鏈物流的開發和優化。因此，我們將繼續專注於該領域的創新，以更好地服務我們的消費者。

Operator, why don't we take one last question in the interest of time.

接線員，為了節省時間，我們為什麼不回答最後一個問題呢？

Certainly, sir. The last question comes from Piyush Mubayi from Goldman Sachs.

當然，先生。最後一個問題來自高盛的 Piyush Mubayi。

If I look at DDG and look at the scope of the business, could you take us through what the footprint is now? Could you take us through and give us a feel to what the investment line has been?

如果我看看 DDG 並看看業務範圍，您能否向我們介紹一下現在的業務範圍？您能帶我們了解一下投資線嗎？

If I look at the investment line that's been bobbing around quite a bit, and it's hard to discern how much of that is going into PP&E, how much is going into other areas of investment potentially because it's one line. So if you could help us better understand where we are.

如果我看一下一直在波動的投資線，很難辨別其中有多少進入了財產、建築和設備，有多少可能進入了其他投資領域，因為它只是一條線。因此，如果您能幫助我們更好地了解我們的處境。

And if you could also dwell on the overall impact of DDG on the business, and in particular, looking at sales and marketing spend in the recent quarter, which as a percentage of revenue, excluding 1P, seems to have risen after 2 or 3 quarters of holding steady. Those are my 3 questions.

如果您還可以詳細考慮 DDG 對業務的總體影響，特別是最近一個季度的銷售和營銷支出，其占收入的百分比（不包括 1P）似乎在 2 或 3 個季度後有所上升保持穩定。這是我的三個問題。

Piyush, thank you for the questions. So I think your question generally revolves around Duo Duo Grocery. So I will say this, as I mentioned on the last quarterly call, our service is now available nationwide across all the 300-plus major cities in China. So from a footprint expansion perspective, we have a footprint that we find sufficient and necessary. And we are adding to that gradually as the infrastructure on a local basis become more mature and can provide for the type of consumer experiences that we want.

Piyush，謝謝你的提問。所以我認為你的問題主要圍繞多多雜貨店。所以我要說的是，正如我在上一季度電話會議中提到的，我們的服務現已覆蓋全國 300 多個中國主要城市。因此，從足跡擴展的角度來看，我們擁有足夠且必要的足跡。隨著當地的基礎設施變得更加成熟並且可以提供我們想要的消費者體驗類​​型，我們正在逐漸增加這一點。

So that's -- and your question then around investment, I believe you are referring to the investing cash flow line. And there, maybe Tony can comment if I -- correct me if I'm wrong, but most of the investing you see in there is actually more from a cash management investment perspective as opposed to investment in hard capital assets. There are some of that infrastructure required in association to Duo Duo Grocery, but most of the investment to date has been really in build-out of the operations, which is reflected in the cost of goods sold as opposed to in capital assets and in PP&Es.

這就是您關於投資的問題，我相信您指的是投資現金流量線。在那裡，也許托尼可以發表評論，如果我錯了，請糾正我，但你看到的大多數投資實際上更多地是從現金管理投資的角度來看，而不是對硬資本資產的投資。 Duo Duo Grocery 需要一些基礎設施，但迄今為止，大部分投資實際上都用於運營業務的擴建，這反映在銷售商品的成本中，而不是資本資產和固定資產和設備上。

And then I think, Piyush, you asked -- the last question you asked was around sales and marketing expenses. I would encourage you to look at this really over a longer-term basis, right? So obviously, the number in the first quarter, first quarter being typically the weaker seasonality quarter, of course, this year because of the occasion in China, the seasonality is less pronounced. But if you look at this quarter versus the same quarter last year, the year before, sales and marketing intensity as a percentage of revenue, excluding the 1P, is coming down, right?

然後我想，Piyush，你問的最後一個問題是關於銷售和營銷費用的。我鼓勵您從更長遠的角度來看待這個問題，對嗎？所以很明顯，第一季度的數字，第一季度通常是季節性較弱的季度，當然，今年因為中國的情況，季節性不太明顯。但如果你將本季度與去年同期相比，前年的銷售和營銷強度佔收入的百分比（不包括 1P）正在下降，對嗎？

So I do think you need to take that synergy into account. We are seeing the efficiency from a sales and marketing perspective for us to continue to improve. And this is being done so in a way that's also inclusive of the Duo Duo Grocery as we think about these businesses quite holistically.

所以我確實認為你需要考慮這種協同作用。我們從銷售和營銷的角度看到效率需要我們繼續改進。這樣做的方式也包括了 Duo Duo Grocery，因為我們非常全面地考慮這些業務。

I realized I didn't specifically comment on your question on Duo Duo Grocery's impact on our business, and this may be a good way to just kind of touch upon that. The Duo Duo Grocery business, as we had alluded to earlier on this call, does allow us to extend the services that we can provide to each consumer on our platform, allowing us to better fulfill their grocery needs that requires a 24-hour type of fulfillment cycle.

我意識到我沒有具體評論您關於多多雜貨店對我們業務的影響的問題，這可能是一個很好的方式來觸及這個問題。正如我們之前在這次電話會議中提到的，Duo Duo 雜貨業務確實使我們能夠擴展我們可以為平台上的每個消費者提供的服務，使我們能夠更好地滿足他們需要24 小時服務的雜貨需求。履行週期。

What it also does mean is that the users who are participating in Duo Duo Grocery does have a higher frequency of purchase and higher level engagement activities on our platform. And that's synergistic with the overall activities on the platform and that does have some benefits when it comes to sales and marketing spend over the long run.

這也意味著參與多多雜貨的用戶在我們的平台上確實有更高的購買頻率和更高水平的參與活動。這與平台上的整體活動具有協同作用，從長遠來看，這確實對銷售和營銷支出有一些好處。

I have just one point to add, David, here. I think speak of the investment on Duo Duo Grocery, it's worth to mention as well investment on people, not just embedded in the lines under the cost of goods or PP&E. We have dedicated Pinduoduo teams deployed at each location we are operating. And also, our employees work closely with third-party contractors to ensure the Duo Duo Grocery service can be implemented in manners that meet our quality standards. Since the start of Duo Duo Grocery, we have catalyzed the creation of millions of jobs up and down the entire supply chain.

大衛，我在這裡只想補充一點。我認為說到對多多雜貨店的投資，值得一提的是對人的投資，而不僅僅是嵌入到商品或固定資產成本項下。我們在每個運營地點都部署了專門的拼多多團隊。此外，我們的員工與第三方承包商密切合作，確保多多雜貨服務能夠以符合我們質量標準的方式實施。自 Duo Duo Grocery 成立以來，我們在整個供應鏈上下游創造了數百萬個就業崗位。

Operator, in the interest of time, we will conclude the call here. Thank you, everyone, for taking the time to join us this evening. If you have any follow-up questions, please feel free to reach out to our IR team at investor@pinduoduo.com (sic) [investor.pinduoduo.com]. Thank you very much.

接線員，由於時間關係，我們就到這裡結束通話。謝謝大家今晚抽出時間來參加我們的活動。如果您有任何後續問題，請隨時聯繫我們的投資者關係團隊：investor@pinduoduo.com（原文如此）[investor.pinduoduo.com]。非常感謝。

Thank you.

謝謝。

Thank you. Ladies and gentlemen, that concludes our conference call for today. Thank you all for your participation. You may disconnect now.

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