拼多多 (PDD) 2020 Q2 法說會逐字稿

Hello, ladies and gentlemen.

女士們、先生們，大家好。

Welcome to Pinduoduo Second Quarter 2020 Earnings Conference Call.

歡迎參加拼多多2020年第二季度業績電話會議。

(Operator Instructions)

（操作員說明）

Today's conference call is being recorded.

今天的電話會議正在錄音。

I would now like to turn the conference over to your speaker today, Mr. Hua Deng.

現在我想把會議交給今天的發言者鄧華先生。

Thank you.

謝謝。

Please go ahead.

請繼續。

Thank you, Rachel.

謝謝你，雷切爾。

Hello, everyone, and thank you for joining us today.

大家好，感謝您今天加入我們。

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

拼多多的財報已於早些時候發布，可通過投資者關係網站 Investor.pinduoduo.com 以及 GlobeNewswire 服務獲取。

On today's call, our CEO, Chen Lei, will make some general remarks on our performance for the second quarter of 2020 and his primary areas of focus going forward.

在今天的電話會議上，我們的首席執行官陳雷將對我們 2020 年第二季度的業績以及他未來的主要關注領域發表一些一般性評論。

Our VP of Strategy, David Liu, will then elaborate further on our specific strategic initiatives.

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。

Last but not least, our VP of Finance, Tony Ma, will take us through our financial results for the second quarter ended June 30, 2020.

最後但並非最不重要的一點是，我們的財務副總裁 Tony Ma 將向我們介紹截至 2020 年 6 月 30 日的第二季度的財務業績。

Before we begin, I'd like to remind you that this conference contains forward-looking statements within the meaning of Section 21E of the U.S. Securities Exchange Act of 1934, as amended and as defined in the U.S. Private Securities Litigation Reform Act of 1995.

在開始之前，我想提醒您，本次會議包含 1934 年美國證券交易法第 21E 條（經 1995 年美國私人證券訴訟改革法修訂和定義）含義內的前瞻性陳述。

These forward-looking statements can be identified by terminologies such as will, anticipate and similar statements.

這些前瞻性陳述可以通過意願、預期和類似陳述等術語來識別。

Such statements are based upon management's current expectations, the current market operating conditions and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the company's control, which may cause the company's actual results, performance and achievements to differ materially from those in the forward-looking statements.

此類陳述基於管理層當前的預期、當前的市場運營狀況，並涉及涉及已知或未知風險、不確定性和其他因素的事件，所有這些因素都難以預測，並且其中許多因素超出了公司的控制範圍，這可能會導致公司的實際業績、業績和成就與前瞻性陳述存在重大差異。

Further information regarding these and other risks, uncertainties or factors are included in the company's filings with the U.S. Securities and Exchange Commission.

有關這些和其他風險、不確定性或因素的更多信息包含在該公司向美國證券交易委員會提交的文件中。

The company does not undertake any obligation to update any forward-looking statements as a result of new information, future events or otherwise except as required under applicable law.

除適用法律要求外，公司不承擔因新信息、未來事件或其他原因而更新任何前瞻性陳述的義務。

Now it is my pleasure to introduce our Chief Executive Officer, Chen Lei.

現在我很高興向大家介紹我們的首席執行官陳雷。

Lei, please go ahead.

雷，請繼續。

Hello, everyone.

大家好。

It's a pleasure to welcome all of you to our second quarter 2020 results announcement.

很高興歡迎大家收聽我們 2020 年第二季度業績公告。

This is my first time communicating with investors around the world as CEO, even though I met many of you 2 years ago in our IPO road show.

這是我第一次作為首席執行官與世界各地的投資者進行交流，儘管我在兩年前的 IPO 路演中認識了你們中的許多人。

It's great to reconnect, and I look forward to working together again and building ongoing dialogue.

重新建立聯繫真是太好了，我期待著再次合作並建立持續的對話。

I'm joined today by our Vice President of Strategy, David Liu; and our Vice President of Finance, Tony Ma.

今天我們的戰略副總裁 David Liu 也加入了我的行列。以及我們的財務副總裁 Tony Ma。

In the past 1.5 months, we have been busy with the management transition that was announced on July 1. It was an evolving process that started 3 years ago, and the recent decision was made with the full support of our Board.

在過去的 1.5 個月裡，我們一直忙於 7 月 1 日宣布的管理層過渡。這是一個從 3 年前開始的不斷演變的過程，最近的決定是在董事會的全力支持下做出的。

We've always been thinking about how to create more opportunities to grow the next generation of leaders, how to keep this organization young, vibrant and increasingly institutionalized.

我們一直在思考如何創造更多機會培養下一代領導者，如何讓這個組織保持年輕、充滿活力並日益制度化。

This is especially important in our fast-changing technologies.

這對於我們快速變化的技術尤其重要。

We challenge ourselves continuously and incorporate fresh perspective so as to constantly satisfy and serve our users' needs.

我們不斷挑戰自我，融入新的視角，不斷滿足和服務用戶的需求。

At the same time, we need to build a solid foundation for long-term and sustainable development of the organization.

同時，我們需要為組織的長期可持續發展奠定堅實的基礎。

Having built Pinduoduo into one of the bigger platforms in China and building numerous initiatives by the team during the pandemic, we feel the timing was right to pass on to our younger generation of leaders more responsibility.

我們將拼多多打造成中國較大的平台之一，並在疫情期間制定了眾多舉措，我們認為現在是時候向年輕一代領導人傳遞更多責任了。

Pinduoduo has grown at an extraordinary pace in the past 5 years.

過去5年，拼多多以驚人的速度增長。

We are laser focused on our survival and growth.

我們專注於我們的生存和發展。

However, in the next few years, my goal is to translate this platform into a next level, one that is vibrant, innovative, energetic and institutionalized.

然而，在接下來的幾年裡，我的目標是將這個平台提升到一個新的水平，一個充滿活力、創新、充滿活力和製度化的平台。

The management and the Board hope to lay the strong foundation over the next few years to create a long-lasting innovation and ecosystem that serve our society.

管理層和董事會希望在未來幾年奠定堅實的基礎，創建一個服務於社會的持久創新和生態系統。

Colin has taken a step back from the day-to-day management responsibility of a CEO, but he continues to be fully engaged and has been working closely with the Board and the management to explore the company's future strategic courses and organizational structure.

科林已經從首席執行官的日常管理職責中退了一步，但他繼續全力投入，並一直與董事會和管理層密切合作，探索公司未來的戰略路線和組織結構。

Colin is also devoting more time to invest in and support foundational -- fundamental research in areas that become the future driver of our company such as agri-tech.

科林還投入更多時間投資和支持農業技術等成為我們公司未來驅動力的領域的基礎研究。

We believe this new division of labor allow Colin and I to cooperate efficiently and steer the company in its next phase of growth and development.

我們相信，這種新的分工使科林和我能夠高效合作，並引導公司進入下一階段的增長和發展。

With over RMB 1 trillion of GMV and 683 million annual active buyers, Pinduoduo is operating at significantly larger scale and with much greater complexity today.

拼多多擁有超過 1 萬億元人民幣的 GMV 和 6.83 億年度活躍買家，如今的運營規模和復雜性都顯著提高。

We have demonstrated that our user-centric strategy works, and we will continue to do what we do well to offer value for money products to our users through a fun and interactive experience.

我們已經證明了以用戶為中心的策略是有效的，我們將繼續盡我們所能，通過有趣的互動體驗為用戶提供物有所值的產品。

As we continue to see significant potential ahead for our platform, my priority as CEO are the various internal and external initiatives that we deem necessary to support and generate long-term sustainable value for our platform.

隨著我們繼續看到我們平台的巨大潛力，作為首席執行官，我的首要任務是採取我們認為支持我們平台並創造長期可持續價值所必需的各種內部和外部舉措。

Internally, it's important that we continue to make operational decisions efficiently despite our growing number of business units and employees.

在內部，儘管我們的業務部門和員工數量不斷增加，但繼續高效地做出運營決策非常重要。

I'm working with our team to leverage more technology to streamline internal processes and institutionalize best practices.

我正在與我們的團隊合作，利用更多技術來簡化內部流程並將最佳實踐制度化。

We are also focused on hiring the best talent and employing personnel development.

我們還注重聘用最優秀的人才並進行人才發展。

We continue to encourage mobility within our organization and motivate our employees to generate new ideas and compete for resources.

我們繼續鼓勵組織內部的流動性，並激勵員工產生新想法並競爭資源。

Externally, we are going to increase strategic investments in our ecosystem, particularly in agricultural value chain.

對外，我們將增加對生態系統的戰略投資，特別是在農業價值鏈上。

Our investment in the past 5 years has been primarily on our users via our sales and marketing expenses.

過去 5 年我們的投資主要通過銷售和營銷費用投入到用戶身上。

And we have successfully built a very substantial user base of nearly [700] (corrected by the company after the call) million in record time.

我們已經在創紀錄的時間內成功建立了近[700]（由公司在通話後更正）百萬的龐大用戶群。

Our average daily parcel volume accounts for approximately 25% of China's daily parcel shipment.

我們日均包裹量約佔中國每日包裹發貨量的25%。

However, in terms of our spending per active buyers, we still see substantial upside potential.

然而，就我們每個活躍買家的支出而言，我們仍然看到巨大的上升潛力。

We will continue to invest in building user engagement and make sure to grow our user frequency of purchases at average order value.

我們將繼續投資於建立用戶參與度，並確保以平均訂單價值提高用戶的購買頻率。

At the same time, we plan to pursue more strategic investment and partnership opportunities that allow us to accelerate digitization of our supply chain and enhance efficiency and values that can be shared with our consumers.

與此同時，我們計劃尋求更多的戰略投資和合作機會，使我們能夠加速供應鏈的數字化，提高效率和可與消費者分享的價值。

In particular, we started our business in agriculture, and we plan to continue our focus in agriculture as our next strategic product.

特別是，我們的業務始於農業，我們計劃繼續將農業作為我們的下一個戰略產品。

Agriculture is a sector that touches largest number of people and yet has had the least amount of digitization in the past decade.

農業是一個涉及人口最多但在過去十年中數字化程度最低的行業。

Any technology that can improve productivity and efficiency of an agricultural value chain will have a huge impact.

任何能夠提高農業價值鏈生產力和效率的技術都會產生巨大影響。

Pinduoduo is already one of China's leading online distribution platforms for agricultural produce and agricultural products.

拼多多已經是中國領先的農產品及農產品在線分銷平台之一。

We are uniquely positioned to drive trends in China's agriculture system.

我們擁有獨特的優勢，能夠推動中國農業系統的發展趨勢。

We combine consumer demand on our platform to create scale, and we can leverage consumer insights we gain to help farmers make more informed decisions across planting cycles, including what to plant and when to harvest.

我們結合平台上的消費者需求來創造規模，我們可以利用我們獲得的消費者洞察來幫助農民在整個種植週期中做出更明智的決策，包括種植什麼和何時收穫。

We are prepared to invest in technology and operations across different parts of an agriculture value chain in order to assess the e-commerce penetration for the category and generate more value for both the farmers and the consumers.

我們準備投資農業價值鏈不同部分的技術和運營，以評估該類別的電子商務滲透率，並為農民和消費者創造更多價值。

Our aim is to further consolidate our position as China's #1 online agriculture platform and to build a worldwide presence in agriculture.

我們的目標是進一步鞏固我們作為中國第一在線農業平台的地位，並在農業領域建立全球影響力。

Let me now turn over to David to discuss some of our specific thoughts around agriculture.

現在讓我請大衛討論我們關於農業的一些具體想法。

Thank you, Lei.

謝謝你，雷。

1 in 4 Chinese workers work in agriculture, but the industry makes up less than 10% of China's GDP.

四分之一的中國工人從事農業，但該行業佔中國GDP的比例不到10%。

This is because agriculture has lagged behind other industries in digitalization.

這是因為農業在數字化方面落後於其他行業。

Nearly 98% of farmers in China work on farms smaller than 2 hectares.

中國近98%的農民在面積小於2公頃的農場工作。

It is difficult to standardize growing practices and achieve economies of scale.

標準化種植實踐並實現規模經濟是很困難的。

The rural workforce is aging and in decline as young people choose to work in the cities.

隨著年輕人選擇到城市工作，農村勞動力正在老齡化和減少。

The lack of coordination for food production makes farmers vulnerable to price swings, while wastage and high incremental distribution costs add to consumers' burden.

糧食生產缺乏協調使農民容易受到價格波動的影響，而浪費和高增量分配成本則增加了消費者的負擔。

Those are the challenges.

這些就是挑戰。

And the opportunity is that agricultural e-commerce can solve a number of these problems.

而機遇在於，農業電子商務可以解決其中的一些問題。

Based on figures from the Ministry of Commerce, the implied total addressable market in 2019 for PBOC agricultural goods sales in China was RMB 8.1 trillion, with less than 7% of these sales taking place online.

根據商務部的數據，2019年中國人民銀行在中國農產品銷售的潛在潛在市場總額為8.1萬億元人民幣，其中在線銷售的比例不到7%。

In contrast, the online penetration for physical goods in total was 23% in 2019.

相比之下，2019 年實體商品的在線滲透率為 23%。

Pinduoduo is already one of the leading e-commerce platforms for agriculture.

拼多多已經是領先的農業電子商務平台之一。

In 2019, we generated RMB 136.4 billion or 13.6% of our GMV from agriculture produce and related goods.

2019年，我們的農產品及相關產品創造了人民幣1,364億元，佔GMV的13.6%。

Over 240 million or 38% of our annual active buyers purchased in this category last year with a 70% repurchase rate.

去年，超過 2.4 億（占我們年度活躍買家的 38%）購買了此類商品，复購率高達 70%。

Pinduoduo has become the go-to destination for high-quality, great-value agriculture products.

拼多多已成為高品質、高價值農產品的首選地。

This recognition deepened through the pandemic.

這種認識隨著疫情的蔓延而加深。

During 6.18, we saw orders for agriculture products grew 136% to CNY 380 million.

6.18期間，農產品訂單增長136%至3.8億元。

Nearly 3/4 of the orders came from Tier 1 and Tier 2 city users.

近3/4的訂單來自一二線城市用戶。

We expect to continue gaining market share in agriculture, and we see potential for our agriculture GMV to exceed RMB 1 trillion in 5 years.

我們預計農業市場份額將繼續擴大，我們認為農業GMV有潛力在5年內突破1萬億元人民幣。

Why do we think agriculture e-commerce can be tackled -- can tackle the challenges outlined earlier?

為什麼我們認為農業電子商務可以解決——可以解決前面概述的挑戰？

Well, put simply, only when you digitalize demand and supply then can you drive efficiency and gains through the value chain in between.

簡而言之，只有當需求和供應數字化時，才能通過其間的價值鏈提高效率和收益。

Online retail has an advantage in terms of greater visibility.

在線零售在可見度方面具有優勢。

From production all the way to distribution, we have a unique position to make the value chain more efficient and bring more value to producers and consumers through investment and partnership that can also unlock commercial opportunities.

從生產一直到分銷，我們擁有獨特的地位，可以通過投資和合作來提高價值鏈效率，為生產者和消費者帶來更多價值，同時釋放商業機會。

Our vision is to realize the economic potential from China vast agricultural resources by improving its overall quality and production efficiency.

我們的願景是通過提高農業資源的整體質量和生產效率，發揮中國豐富農業資源的經濟潛力。

Starting with production.

從生產開始。

Our efforts thus far have centered around the development of human capital through farmer training as well as initiation of pilot farms in our Duo Duo Farms program.

迄今為止，我們的努力主要集中在通過農民培訓以及在“多多農場”計劃中啟動試點農場來開發人力資本。

Together with partner institutions such as China Agriculture University, we have been part of farming knowledge and business training to almost 90,000 new farmers thus far, who tend to be younger and more digitally savvy.

迄今為止，我們與中國農業大學等合作機構一起，為近 90,000 名新農民提供了農業知識和商業培訓，他們往往更年輕、更懂數字化。

We see this initiative as a way to see a new generation of farmers who are more adaptive to new technologies.

我們認為這一舉措是讓新一代農民更能適應新技術的一種方式。

Duo Duo Farms is a demonstration of how reorganizing resources through cooperatives and bringing our economic expertise can help farmers living in impoverished regions sustainably improve their productivity and household income.

多多農場展示瞭如何通過合作社重組資源並利用我們的經濟專業知識幫助生活在貧困地區的農民可持續地提高生產力和家庭收入。

Duo Duo Farms serves as a testbed for us to introduce technologies to farmers such as drip irrigation while also introducing changes to existing farming practices to drive meaningful change.

多多農場是我們向農民介紹滴灌等技術的試驗台，同時也對現有農業實踐進行變革，以推動有意義的變革。

Building upon these experiences, we plan to invest in technology necessary to implement precision farming such as robotics, IoT sensors and low-power data transmission.

基於這些經驗，我們計劃投資實施精準農業所需的技術，例如機器人、物聯網傳感器和低功耗數據傳輸。

Precision farming can help optimize inputs, better control diseases and reduce production costs.

精準農業有助於優化投入、更好地控制疾病並降低生產成本。

Our ongoing Smart Agriculture Competition jointly organized with the Agricultural University of China and with the support of UN's Food and Agriculture Organization exemplifies our interest to identify cost-efficient and scalable technology that can be promoted as standardized solution across China.

我們正在與中國農業大學聯合舉辦並在聯合國糧食及農業組織的支持下舉辦的智能農業競賽，這體現了我們對尋找具有成本效益且可擴展的技術的興趣，這些技術可以作為標準化解決方案在中國推廣。

Global teams are competing over 14 weeks to remotely grow strawberries using sensors and machine learning algorithms.

全球團隊正在展開為期 14 週的競賽，利用傳感器和機器學習算法遠程種植草莓。

The objective is to derive the most cost-efficient techniques to improve yield by integrating technology with traditional growing practices.

目標是通過將技術與傳統種植實踐相結合，獲得最具成本效益的技術來提高產量。

We also plan to further invest in and develop our proprietary agriculture analytics system.

我們還計劃進一步投資和開發我們專有的農業分析系統。

By considering historical and projected data, such as price, quantity, geographic distribution and logistical availability, the system will better advise farmers on which crops of high economic value to plant, how to optimize quality over quantity and how to achieve more timely distribution.

通過考慮價格、數量、地理分佈和物流可用性等歷史和預測數據，該系統將更好地向農民提供關於種植哪些經濟價值高的作物、如何優化數量而非數量以及如何實現更及時分配的建議。

The system will also help refine our recommendations to consumers to reduce mismatch in supply and demand.

該系統還將幫助完善我們向消費者提供的建議，以減少供需不匹配。

Traditionally, agriculture produce go through at least 5 layers of distribution before reaching consumers.

傳統上，農產品在到達消費者手中之前至少要經過5層分銷。

Industry research estimates as much as 105% added cost, 37% wastage across the chain for vegetables.

行業研究估計，整個蔬菜供應鏈的成本增加高達 105%，浪費高達 37%。

Pinduoduo team purchase model aggregates scattered interest into sizable coordinated demand and connect sellers directly with consumers to eliminate unnecessary costs.

拼多多團購模式將分散的利益聚合成規模可觀的協調需求，直接連接賣家和消費者，消除不必要的成本。

The next step is to find further -- is further optimize logistics for agriculture produce.

下一步是進一步優化農產品物流。

From how it is packaged, handled and routed, there are hardly any cost-effective specialized solution for agriculture produce today.

從包裝、處理和路線的方式來看，目前幾乎沒有任何針對農產品的具有成本效益的專業解決方案。

We plan to partner with logistic services providers to develop logistics dedicated to agriculture.

我們計劃與物流服務提供商合作，發展農業物流。

As we can forecast demand by region, we can develop technology solutions with logistics partners to optimize delivery routes, coordinate delivery schedules, implement better-quality service standards and optimize loading to and from the rural areas of China.

由於我們可以按地區預測需求，因此我們可以與物流合作夥伴開發技術解決方案，以優化配送路線、協調配送時間表、實施更高質量的服務標準並優化往返中國農村地區的裝載。

We are also looking at advanced packaging solutions to offer our sellers and considering opportunities in warehousing technology and temperature controlled logistics.

我們還在尋找為我們的賣家提供的先進包裝解決方案，並考慮倉儲技術和溫控物流方面的機會。

We will also invest in technology for quality control and food safety.

我們還將投資質量控制和食品安全技術。

Unlike manufactured goods, it is more difficult to provide assurance on the quality and safety of agriculture produce.

與製成品不同，農產品的質量和安全保證更加困難。

As consumers in China become more health conscious, we expect more will be willing to pay a premium for quality and safety.

隨著中國消費者的健康意識日益增強，我們預計會有更多人願意為質量和安全支付更高的費用。

We intend to address such needs through a combination of technology and certification backed by credible platforms.

我們打算通過可信平台支持的技術和認證相結合來滿足這些需求。

We started collaborating this year with a research institution to develop a cost-effective, robust method for testing fresh produce for contaminants like pesticides.

我們今年開始與一家研究機構合作，開發一種經濟高效、穩健的方法來測試新鮮農產品中農藥等污染物。

We envision deploying such test across a wide array of produce and at various points of the supply chain to provide greater assurance on food safety.

我們設想在各種農產品和供應鏈的各個環節部署此類測試，以更好地保證食品安全。

We can offer such testing solutions and certification as value-added services to our farmers and merchants.

我們可以為我們的農民和商人提供此類測試解決方案和認證作為增值服務。

Certified products will receive preferential traffic support and command a premium from our users.

通過認證的產品將獲得優惠的流量支持，並獲得用戶的溢價。

Our ability to differentiate such products will allow us to curate and price SKUs based on quality and recommend them to the relevant target users.

我們區分此類產品的能力將使我們能夠根據質量來策劃和定價 SKU，並將其推薦給相關目標用戶。

With better-quality products, it is equally or perhaps more important to invest in marketing to grow brand awareness.

對於質量更好的產品，投資營銷以提高品牌知名度同樣重要，甚至可能更重要。

Take the French region of Champagne as an example.

以法國香檳地區為例。

Sparkling wines made in Champagne are tightly regulated and must be made from a few prescribed bottles using traditional methods to ensure consistent quality.

用香檳釀造的起泡酒受到嚴格監管，必須使用傳統方法在少數規定的瓶子中釀造，以確保質量穩定。

Its sterling, rigorously defended reputation fuels consumers' willingness to pay a premium.

其良好且受到嚴格維護的聲譽激發了消費者支付溢價的意願。

Similarly in China, given its vast agricultural resources, we see opportunities to help create new brands for consistently high-quality produce from the various geographic indications around the country.

同樣，在中國，鑑於其豐富的農業資源，我們看到了幫助創建新品牌的機會，為來自全國各地的各種地理標誌的始終如一的高品質農產品創造新品牌。

In fact, one of our Duo Duo Farm projects in Hunan is working to establish a nationally recognized designation for yacon grown there.

事實上，我們在湖南的多多農場項目之一正在努力為當地種植的雪蓮果建立一個國家認可的名稱。

To meet the designation, farmers will have to standardize and improve their farming practices.

為了達到這一目標，農民必須標準化並改進他們的耕作方式。

Farmers are incentivized to improve their practices in exchange for their products fetching a premium.

農民被激勵改進他們的做法，以換取他們的產品獲得溢價。

And we as a platform can provide more visibility to farmers on sales volume and pricing.

我們作為一個平台可以為農民提供更多關於銷售量和定價的可見性。

We can help build awareness to promote origin stories to marketing, including virtual live streaming tours.

我們可以幫助提高意識，將起源故事推廣到營銷中，包括虛擬直播旅遊。

The recognition of quality provides further opportunity to develop related subindustries, from selling oranges to making marmalade and from selling peaches to validating ecotourism.

對質量的認可為發展相關子產業提供了進一步的機會，從銷售橙子到製作果醬，從銷售桃子到驗證生態旅遊。

We see potential to work with farmers and distributors to develop branding for their produce and to address other value-added opportunities leveraging our consumer insights.

我們看到了與農民和分銷商合作的潛力，為他們的產品開髮品牌，並利用我們的消費者洞察來解決其他增值機會。

While this may be a long journey, we are committed to invest in agriculture and agri-tech as it enables us to truly benefit all of our platform's participants.

雖然這可能是一個漫長的旅程，但我們致力於投資農業和農業技術，因為它使我們能夠真正使我們平台的所有參與者受益。

Now let me pass it to Tony to discuss our financial results for the second quarter.

現在讓我把它交給托尼，討論我們第二季度的財務業績。

Thank you, David.

謝謝你，大衛。

For the 12 months ended June 30, 2020, our GMV increased 79% to RMB 1.27 trillion from RMB 709 billion a year ago as a result of higher user engagement and increased spending per user.

截至 2020 年 6 月 30 日的 12 個月，由於用戶參與度提高和每用戶支出增加，我們的 GMV 從一年前的人民幣 7090 億元增長 79% 至人民幣 1.27 萬億元。

We report GMV on the same basis as other industry players to provide a meaningful comparison with that of our peers.

我們在與其他行業參與者相同的基礎上報告 GMV，以便與同行進行有意義的比較。

The industry definition includes canceled and returned orders.

行業定義包括取消和退回的訂單。

Comparing our GMV in Q2 versus Q1, the level of canceled and returned orders has returned to normal historical levels as China recovers from the pandemic.

比較第二季度和第一季度的 GMV，隨著中國從疫情中恢復，取消和退貨的訂單水平已恢復到正常的歷史水平。

Our average monthly active users in the second quarter increased by 81 million from the previous quarter to 569 million or an increase of 55% from a year ago.

第二季度平均月活躍用戶數較上季度增加 8100 萬，達到 5.69 億，同比增長 55%。

Our annual active buyers for the 12 months ended June 30 grew 41% year-over-year to reach 683 million.

截至 6 月 30 日的 12 個月，我們的年度活躍買家數量同比增長 41%，達到 6.83 億。

This represents a net add of more than 200 million in the past 12 months.

這意味著過去12個月淨增超過2億。

The average spending per active buyer in the 12-month period ended June 30, 2020, increased 27% to RMB 1,857 from RMB 1,468 for the same period in 2019.

截至 2020 年 6 月 30 日的 12 個月內，每位活躍買家的平均支出從 2019 年同期的 1,468 元人民幣增長 27% 至 1,857 元人民幣。

The increase in annual spending per active buyer was moderated by a significant number of new users added, who contributed less than 12 months of purchases to our GMV.

每個活躍買家的年度支出增長受到大量新用戶增加的影響，這些新用戶為我們的 GMV 貢獻了不到 12 個月的購買量。

During Q2, China's economy continued its recovery from the disruption caused by the pandemic.

二季度，中國經濟繼續從疫情衝擊中復蘇。

According to National Bureau of Statistics, online sales growth of physical goods accelerated in the second quarter, resulting in a 14.3% increase for the 6 months ended June 30, 2020, from a year ago.

國家統計局數據顯示，二季度實物商品網上銷售增速加快，截至2020年6月30日止6個月同比增長14.3%。

This is up significantly from 5.9% growth for the 3-month period ending in March.

這比 3 月份結束的 3 個月期間的 5.9% 的增長率顯著上升。

Consumer staples and household goods were significant growth contributors during this period.

消費必需品和家庭用品是這一時期增長的重要貢獻者。

We observed a similar recovery trend on our platform.

我們在我們的平台上觀察到類似的複蘇趨勢。

In Q2, our users have strong demand for household necessities and agricultural products and continued to be more selective and cautious on their discretionary spending.

第二季度，用戶對生活必需品和農產品的需求強勁，對可自由支配的支出繼續更加挑剔和謹慎。

To address their needs, we expanded our promotional offering under the June 18 campaign to cover more household necessities, food and beverage products and agriculture produce.

為了滿足他們的需求，我們在 6 月 18 日的活動中擴大了促銷範圍，涵蓋更多家庭必需品、食品和飲料產品以及農產品。

We're continuing our efforts to provide compelling value in these categories together with China Consumers Association in early July.

七月初，我們將繼續與中國消費者協會合作，在這些類別中提供令人信服的價值。

Our total revenue in June quarter were RMB 12.2 billion, representing an increase of 67% from RMB 7.3 billion in the same quarter last year.

6月份季度的總收入為人民幣122億元，比去年同期的人民幣73億元增長67%。

The increase was driven primarily by the strong momentum in online marketing services.

這一增長主要是由在線營銷服務的強勁勢頭推動的。

Our online marketing services revenue grew 71% to RMB 11.1 billion, and our transaction service revenue increased 38% to RMB 1.1 billion.

我們的在線營銷服務收入增長71%至人民幣111億元，交易服務收入增長38%至人民幣11億元。

We continued our support for certain SME merchants in Q2 by offering discounted transaction fees but in general observed a healthy recovery in merchant advertising activities.

我們在第二季度繼續通過提供折扣交易費來支持某些中小企業商戶，但總體而言，商戶廣告活動出現了健康復蘇。

We benefited from merchants' pent-up demand and deferred marketing budgets from the previous quarter.

我們受益於商家被壓抑的需求和上一季度推遲的營銷預算。

We also attribute higher advertising activities to better merchant ROIs due to higher user engagement on our platform and more compelling advertising products.

由於我們平台上更高的用戶參與度和更引人注目的廣告產品，我們還將更高的廣告活動歸因於更好的商戶投資回報率。

The implied monetization rate, defined as total revenue divided by GMV, for the last 12 months ended June 30, 2020, was 2.9%, in line with the same period in 2019.

截至 2020 年 6 月 30 日的過去 12 個月，隱含貨幣化率（定義為總收入除以 GMV）為 2.9%，與 2019 年同期一致。

Now moving on to cost.

現在轉向成本。

Our total cost of revenue this quarter increased by 67% from RMB 1.6 billion in the same period last year to RMB 2.6 -- RMB 2.7 billion this quarter, translating to a gross margin of 78%.

本季度我們的總收入成本從去年同期的 16 億元人民幣增長了 67% 至本季度的 2.6 至 27 億元人民幣，相當於毛利率為 78%。

Total cost of revenues increased mainly due to higher cost for cloud services, call center and merchant support services.

總收入成本增加主要是由於雲服務、呼叫中心和商戶支持服務的成本增加。

Total operating expenses this quarter were RMB 11.2 billion as compared to RMB 7.2 billion in the same quarter in 2019.

本季度總運營費用為 112 億元人民幣，而 2019 年同一季度為 72 億元人民幣。

Our sales and marketing expenses this quarter increased 49% to RMB 9.1 billion from RMB 6.1 billion in the same quarter of 2019.

本季度我們的銷售和營銷費用從 2019 年同季度的 61 億元人民幣增長 49% 至 91 億元人民幣。

On a non-GAAP basis, our sales and marketing expenses as a percentage of our revenue were 73% as compared to 81% for the same quarter last year.

按非公認會計原則計算，我們的銷售和營銷費用佔收入的百分比為 73%，而去年同期為 81%。

We manage our sales and marketing spending dynamically based on expected ROI.

我們根據預期投資回報率動態管理我們的銷售和營銷支出。

Recognizing the fierce market dynamic in this year's 6.18 promotion event, we decided to moderate our investment during the second quarter.

考慮到今年6.18促銷活動的激烈市場動態，我們決定在第二季度適度投資。

We continued with our CNY 10 billion program and expanded our offering to cover household staples that our users were looking for.

我們繼續實施 100 億元人民幣計劃，並擴大我們的產品範圍，涵蓋用戶正在尋找的家庭必需品。

Looking ahead, we see significant potential to improve our users' annual spending on our platform by building more user mind share and trust.

展望未來，我們看到通過建立更多用戶心智份額和信任來提高用戶在我們平台上的年度支出的巨大潛力。

We expect to continue our sales and marketing investments in the second half of 2020 to drive more user engagement.

我們預計在 2020 年下半年繼續進行銷售和營銷投資，以提高用戶參與度。

We will continue to spend whenever we see attractive opportunities that meet our internal ROI hurdles.

只要我們看到能夠滿足我們內部投資回報率障礙的有吸引力的機會，我們就會繼續支出。

General and administrative expenses were RMB 395 million, an increase of 42% from RMB 278 million in the same quarter of 2019 primarily due to an increase in headcount.

一般及行政費用為人民幣3.95億元，較2019年同季度的人民幣2.78億元增長42%，主要由於員工人數增加。

On a non-GAAP basis, our G&A expenses as a percentage of our revenue was 1.1% in Q2.

按照非 GAAP 計算，第二季度我們的 G&A 費用佔收入的百分比為 1.1%。

Research and development expenses were RMB 1.7 billion, an increase of 107% from RMB 804 million in the same quarter of 2019.

研發費用為人民幣17億元，較2019年同季度的人民幣8.04億元增長107%。

The increase was primarily due to an increase in headcount and the recruitment of more experienced R&D personnel and an increase in R&D-related cloud service expenses.

這一增長主要是由於人員數量的增加和招聘經驗豐富的研發人員以及研發相關雲服務費用的增加。

On a non-GAAP basis, our R&D expenses as a percentage of our revenues was 10.4% in Q2.

按非公認會計原則計算，第二季度我們的研發費用佔收入的百分比為 10.4%。

Technology is fundamental to our operations, and we plan to increase our spending on engineering talent and technological capabilities going forward.

技術是我們運營的基礎，我們計劃未來增加在工程人才和技術能力方面的支出。

Some of our key R&D initiatives include developing our demand forecasting system for agriculture, database for C2M manufacturers and the logistics planning system.

我們的一些關鍵研發舉措包括開發農業需求預測系統、C2M 製造商數據庫和物流規劃系統。

As a result, our operating loss for the quarter was RMB 1.6 billion on a GAAP basis compared with operating loss of RMB 1.5 billion in the same quarter of 2019.

因此，按 GAAP 計算，我們本季度的運營虧損為 16 億元人民幣，而 2019 年同季度的運營虧損為 15 億元人民幣。

Non-GAAP operating loss for the quarter was RMB 725 million compared with RMB 898 million in the same quarter of 2019.

該季度非公認會計準則運營虧損為人民幣 7.25 億元，而 2019 年同季度為人民幣 8.98 億元。

For the quarter ended June 30, 2020, we recorded net nonoperating income of RMB 740 million compared with RMB 487 million in the same quarter in 2019.

截至2020年6月30日的季度，我們的營業外收入淨額為人民幣7.4億元，而2019年同期為人民幣4.87億元。

The increase primarily reflects the net impact of higher interest income, interest expenses from amortization of our outstanding convertible bonds and gains on fair market value change from long-term investments.

這一增長主要反映了利息收入增加、未償還可轉換債券攤銷產生的利息支出以及長期投資公平市場價值變動收益的淨影響。

We excluded the later 2 items in addition to share-based compensation in our presentation of non-GAAP metrics.

在非公認會計準則指標的表述中，除了基於股票的薪酬之外，我們還排除了後兩項。

To sum up, our net loss attributable to ordinary shareholders was RMB 899 million on a GAAP basis as compared to net loss of RMB 1 billion in the same quarter of 2019.

綜上所述，按美國通用會計準則計算，我們歸屬於普通股股東的淨虧損為人民幣 8.99 億元，而 2019 年同一季度的淨虧損為人民幣 10 億元。

Basic and diluted net loss per ADS was RMB 0.75 on a GAAP basis compared with RMB 0.88 in the same quarter of 2019.

按美國通用會計準則計算，每股美國存託股的基本和攤薄淨虧損為人民幣 0.75 元，而 2019 年同季度為人民幣 0.88 元。

Non-GAAP net loss attributable to ordinary shareholders was RMB 77 million compared with RMB 411 million in the same quarter last year.

非美國通用會計準則歸屬於普通股股東的淨虧損為人民幣 7700 萬元，而去年同期為人民幣 4.11 億元。

Non-GAAP basic and diluted net loss per ADS were RMB 0.06 compared with RMB 0.36 in the same quarter of 2019.

非美國通用會計準則每股美國存託股基本和攤薄淨虧損為人民幣 0.06 元，而 2019 年同季度為人民幣 0.36 元。

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

第二季度的損益表就這樣完成了。

Now on the cash flow.

現在談現金流。

Our net cash flow generated by operating activities was RMB 5.5 billion as compared to RMB 4.1 billion in the same quarter of 2019 primarily due to an increase in online marketing service revenues.

我們的經營活動產生的現金流量淨額為人民幣55億元，而2019年同期為人民幣41億元，主要是由於在線營銷服務收入的增加。

As of June 30, 2020, the company's cash reserve comprising of cash, cash equivalents and short-term investments was RMB 49 billion as compared to RMB 41.1 billion at the end of December 2019.

截至2020年6月30日，公司現金儲備由現金、現金等價物和短期投資組成，為人民幣490億元，而截至2019年12月末為人民幣411億元。

We allocated most of our cash reserves to highly liquid, short-term investment to receive better cash yield and maintain flexibility to withdraw and deploy capital strategically as necessary.

我們將大部分現金儲備分配給高流動性的短期投資，以獲得更好的現金收益，並保持在必要時戰略性提取和部署資本的靈活性。

Finally, let me touch on the ongoing development in the U.S. to prohibit foreign issuers' access to U.S. capital market if sufficient audit access cannot be provided to the U.S. Public Company Accounting Oversight Board.

最後，讓我談談美國正在採取的措施：如果不能向美國上市公司會計監督委員會提供足夠的審計准入，則禁止外國發行人進入美國資本市場。

On August 6, the President's working group on financial market released its report recommending SEC to implement rules that would require issuers to grant PCAOB access to work papers of the principal audit firm in order to maintain listing by January 1, 2022.

8 月 6 日，總統金融市場工作組發布報告，建議 SEC 實施規則，要求發行人授予 PCAOB 查閱主要審計公司工作底稿的權限，以便在 2022 年 1 月 1 日之前維持上市。

Their recommendations also provide an option for companies to provide a co-audit from an audit firm that meets PCAOB's inspection requirements.

他們的建議還為公司提供了一個選擇，即由符合 PCAOB 檢查要求的審計公司提供聯合審計。

The administration's recommendation, if adopted, would still require SEC to design and put in place detailed implementation rules.

政府的建議如果被採納，仍將要求美國證券交易委員會設計並實施詳細的實施規則。

We continue to monitor the situation closely and are prepared to work with relevant regulators in China and the U.S. to address these concerns when there's more clarity.

我們將繼續密切關注事態發展，並準備與中國和美國的相關監管機構合作，在情況更加明朗時解決這些擔憂。

We completed our SOX internal control audit for 2019 with no material deficiency identified.

我們完成了 2019 年 SOX 內部控制審計，未發現重大缺陷。

We are confident of the quality of our disclosure and the financial reporting, and we are committed to continuing our efforts to provide a high degree of integrity in our accounting.

我們對我們的披露和財務報告的質量充滿信心，並且我們致力於繼續努力提供高度誠信的會計。

This concludes our prepared remarks.

我們準備好的發言到此結束。

Operator, we are ready for questions.

接線員，我們準備好回答問題了。

(Operator Instructions) Your first question comes from the line of Gregory Zhao of Barclays.

（操作員說明） 您的第一個問題來自巴克萊銀行的 Gregory Zhu。

Sorry, I was muted.

抱歉，我被靜音了。

So we saw PDD make some efforts to move up to the high-end market and started to sell some luxury products, including Tesla cars.

所以我們看到拼多多做了一些向高端市場邁進的努力，開始銷售一些奢侈品，包括特斯拉汽車。

So I just want to understand a bit more about how this will help you improve the ARPU and help you to get expanded into the high-end market.

所以我只是想更多地了解這將如何幫助您提高 ARPU 並幫助您擴展到高端市場。

A quick one on the year-over-year growth of the GMV growth.

快速了解 GMV 同比增長情況。

So we know last year was the first time you joined the 6.18 promotion season.

所以我們知道去年是你們第一次參加6.18促銷季。

So how shall we think about the relatively high base, the impact to your 2Q GMV growth?

那麼我們如何看待相對較高的基數，對你們二季度GMV增長的影響呢？

Gregory, thanks for the question.

格雷戈里，謝謝你的提問。

Let me take your first question around brands and products.

讓我回答你關於品牌和產品的第一個問題。

Our product and brand strategy is actually oriented around giving users what they want and serving them well.

我們的產品和品牌戰略實際上是圍繞為用戶提供他們想要的東西並為他們提供良好的服務。

So it was not our intention to build or engaging in the type of promotion that you have seen.

因此，我們無意建立或參與您所看到的那種促銷活動。

The intention is not to drive AOV.

目的不是驅動 AOV。

The aim is actually to build Pinduoduo into a destination for quality, authentic and value-for-money product across categories and price points.

其目的實際上是將拼多多打造成跨品類、跨價位的優質、正品、物超所值的產品目的地。

So we are continuing to grow the depth of -- and breadth of SKU across the platform and whether they are branded or unbranded.

因此，我們正在繼續擴大整個平台上 SKU 的深度和廣度，無論它們是品牌還是非品牌。

In fact, as I highlighted in my comments earlier, we are highlighting agriculture as a product category where we think we can strategically add a lot of value over the next few years by investing in the supply chain and making available higher-quality and better product for our users.

事實上，正如我之前在評論中強調的那樣，我們強調農業作為一個產品類別，我們認為我們可以通過投資供應鏈並提供更高質量和更好的產品，在未來幾年戰略性地增加大量價值對於我們的用戶。

And with regard to your question on GMV, first of all, I would like to just remind the audience that comparing our GMV growth in the second quarter versus first quarter isn't meaningful because of the impact of the pandemic.

關於你提到的GMV問題，首先我想提醒大家，由於疫情的影響，我們第二季度和第一季度的GMV增長沒有任何意義。

In fact, we are very pleased with our GMV growth this quarter and particularly in a context of having added 100 million of active buyers since the beginning of this year.

事實上，我們對本季度 GMV 的增長感到非常滿意，特別是在今年年初以來活躍買家數量增加了 1 億的情況下。

Our focus as a company this year in terms of our strategy is to continue to invest in user engagement and to build that mind share.

作為一家公司，我們今年的戰略重點是繼續投資於用戶參與度並建立這種思維份額。

Because as you look at the scale of the user base we have accumulated, 683 million active buyer, we believe that what we need to do is continue to improve engagement with them and to grow their mind share.

因為當你看到我們積累的用戶群規模（6.83 億活躍買家）時，我們相信我們需要做的是繼續提高與他們的互動並增加他們的心智份額。

The GMV for the second quarter are impacted.

第二季度的GMV受到影響。

I will also note the changes in consumer spending.

我還將注意到消費者支出的變化。

We saw a pickup in consumer activity since the first quarter as the economy recovered.

隨著經濟復甦，我們看到自第一季度以來消費者活動有所回升。

However, we did notice that consumer spending was much more value conscious, and consumers were looking for more household necessities such as FMCGs and agriculture produce among our platform.

然而，我們確實注意到消費者支出更加註重價值，消費者正在我們的平台上尋找更多的家庭必需品，例如快速消費品和農產品。

So as you saw in our 6.18 campaign, we actually expanded our coverage in the campaign to cover more products in these categories, and we are continuing to support the consumers in these efforts.

正如您在我們的 6.18 活動中看到的那樣，我們實際上擴大了活動的覆蓋範圍，涵蓋了這些類別中的更多產品，並且我們將繼續在這些努力中為消費者提供支持。

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

你的下一個問題來自高盛的 Piyush Mubayi。

May I just ask a couple of deals on how the transaction commission revenues, marketing services revenues are progressing and how that take rate has evolved?

我可以問幾筆交易的交易佣金收入、營銷服務收入進展情況以及轉化率如何變化嗎？

Your marketing service take rate seems to have gone up to 3.2% in the quarter, which is a huge improvement year-on-year on any other metric, probably the highest ever.

本季度您的營銷服務利用率似乎上升到了 3.2%，與任何其他指標相比，這都是同比的巨大進步，可能是有史以來最高的。

Should we then think of that as a number that we can expect for you to continue to maintain in the future?

那麼我們是否應該將其視為我們可以期望您在未來繼續保持的數字？

And also, when you look at the growth rates in transaction commissions, which was 76% in 1Q, that slowed down to 38%.

此外，當你看看交易佣金的增長率時，第一季度為 76%，現在放緩至 38%。

Is there anything there that's different that would lead us -- lead to that slow growth rate?

是否有什麼不同之處會導致我們——導致緩慢的增長率？

And in a similar manner, the marketing services revenue, which is at 78 -- 71%, is meaningfully higher than the pace of growth that you're seeing in the GMV for the quarter.

同樣，營銷服務收入為 78% - 71%，明顯高於您在本季度 GMV 中看到的增長速度。

So if you could just take us through what's going on there.

所以如果你能帶我們了解一下那裡發生了什麼。

Then I have a few questions in agriculture, if I might.

如果可以的話，我有幾個關於農業的問題。

Okay.

好的。

Let me take this one then.

那我就拿這個吧。

We do saw a stronger-than-expected recovery in merchant advertising in Q2.

我們確實看到第二季度商家廣告的複蘇強於預期。

Our merchants had more budget to spend given limited activities in Q1.

鑑於第一季度的活動有限，我們的商家有更多的預算可以支出。

And they were eager to make up for their loss in Q1, and higher user activities and better advertising also helped to improve the advertising returns.

他們急於彌補第一季度的損失，更高的用戶活躍度和更好的廣告也有助於提高廣告回報。

Our higher take rate in Q2 reflects the supply-demand dynamic post the pandemic actually.

我們第二季度較高的採用率實際上反映了大流行後的供需動態。

The level of returns and unpaid order also returned to their normal level.

退貨和未付款訂單的水平也恢復到正常水平。

If we take together our Q1 and Q2 number as an aggregate level, the takeaway for the first half of the year actually is 2.9%, in line with our historical results.

如果我們將第一季度和第二季度的數據匯總起來，上半年的實際增長為 2.9%，與我們的歷史結果一致。

Takeaway for us, it's now output, not an KPI we try to optimize.

對我們來說，它現在是輸出，而不是我們試圖優化的 KPI。

Our priority is on our user engagement.

我們的首要任務是用戶參與度。

With stronger user engagement, merchants would naturally want to advertise more.

隨著用戶參與度的提高，商家自然會想要做更多的廣告。

We will continue to support good-quality merchants and incentivize them to improve their service and provide better value to our users.

我們將繼續支持優質商家，激勵他們改進服務，為用戶提供更好的價值。

And regarding your second question or the question on the transaction service revenue, the transaction service revenue comprised primarily of what we previously termed commission fees, the payment process fees, which we charge as a standard rec rate of 0.6%.

關於你的第二個問題，即交易服務收入的問題，交易服務收入主要包括我們之前所說的佣金、支付流程費，我們收取的標準費率為0.6%。

However, we continue to offer a preferential rate for certain merchants as incentive.

然而，我們繼續為某些商戶提供優惠費率作為激勵。

And may I just ask a follow-up question?

我可以問一個後續問題嗎？

Just wanted to understand where -- what percentage of the GMV today is agriculture, say, for the second quarter.

只是想了解第二季度農業在當前 GMV 中所佔的百分比是多少。

And when you talk about RMB 1 trillion 5 years out, we presume that's about 15% to 20% of GMV at that point of time?

當你談論5年後的1萬億元人民幣時，我們假設這大約是當時GMV的15%到20%？

Would that be the right mix to think through for agriculture?

這對於農業來說是正確的組合嗎？

And if you could just give us a feel for what the sort of take rate that we could earn from the business.

如果您能讓我們了解一下我們可以從這項業務中獲得什麼樣的收入。

Would be it commensurate to or comparable to the 3.2% for example, that you've shown us in Q2, 5 years down the line, I mean?

我的意思是，它是否與您在第二季度向我們展示的 5 年後的 3.2% 相稱或相當？

Piyush, thank you for that.

Piyush，謝謝你。

Let me just also add a little bit to our context around the take rate.

讓我也補充一點有關獲取率的背景信息。

As we have communicated to the market previously, the take rate really is an output.

正如我們之前向市場傳達的那樣，採用率實際上是一種產出。

It's a function of the merchants advertising on our platform and seeing the right levels of return.

這是商家在我們平台上做廣告並看到適當回報水平的一個功能。

So we actually saw in the second quarter very strong merchant activities as merchants tried to some more -- move more inventories and goods in the second quarter.

因此，我們實際上在第二季度看到了非常強勁的商業活動，因為商家試圖在第二季度轉移更多庫存和貨物。

And as a result, we saw very strong advertising demand, which we think actually contributed to that take rate.

結果，我們看到了非常強勁的廣告需求，我們認為這實際上有助於提高轉化率。

Similarly, we -- I would note that on our platform, it's the -- on our platform, we are seeing advertising activities really across the board from many different sectors.

同樣，我要指出的是，在我們的平台上，我們看到來自許多不同領域的全面廣告活動。

So it isn't any particular categories per se.

所以它本身並不是任何特定的類別。

And similarly, we do believe there are potentials in agriculture merchants -- I mean, distributors to contribute to advertising as long as they are able to actually offer the type of premium product that allows them to generate the type of return.

同樣，我們確實相信農業商人也有潛力——我的意思是，只要分銷商能夠真正提供優質產品，使他們能夠產生一定的回報，他們就可以為廣告做出貢獻。

So what we are seeing is given the low e-commerce penetration rate in agriculture, we actually see substantial opportunity for us to invest in the supply chain and to drive more value creation down the road.

因此，鑑於農業電子商務滲透率較低，我們實際上看到了投資供應鏈並推動未來創造更多價值的巨大機會。

So yes, we do believe that certainly, generating the type of return commensurate with what the platform is generating today is possible in agriculture, but that may come in the form of both advertising and also us providing technology solutions to the participants in our ecosystem.

所以，是的，我們確實相信，在農業領域產生與平台今天產生的回報相稱的回報是可能的，但這可能以廣告的形式出現，也可能以我們向生態系統參與者提供技術解決方案的形式出現。

Our next question comes from the line of Alicia Yap of Citigroup.

我們的下一個問題來自花旗集團的 Alicia Yap。

I have a question related to more medium, longer term.

我有一個與更中期、更長期有關的問題。

So how will PDD attract broader varieties of merchants and brands to join the platform when you indeed now have a larger base of merchants and then you also have your user base also reaching a quite large number?

那麼，當你現在確實擁有更大的商家基礎，並且你的用戶基礎也達到相當大的數量時，拼多多將如何吸引更廣泛的商家和品牌加入平台呢？

So how do you balance and ensure all the merchants will receive the relevant exposure?

那麼如何平衡並確保所有商家都能獲得相關曝光呢？

And what does PDD need to do to serve this broader range of the merchants?

那麼拼多多需要做什麼來服務更廣泛的商戶呢？

And how will the team purchase model evolve if we get more branded products or branded merchants on our platform?

如果我們的平台上有更多的品牌產品或品牌商家，團購模式將如何演變？

Thank you, Alicia.

謝謝你，艾麗西亞。

Our strategy around products and brands have not changed.

我們圍繞產品和品牌的策略沒有改變。

In fact, as I mentioned earlier today, the idea is to continue to focus on providing what the users want.

事實上，正如我今天早些時候提到的，我們的想法是繼續專注於提供用戶想要的東西。

So from that perspective, what we are seeing is the team purchase model working, and this is the reason why we have been able to accumulate 700 million users within such short period of time.

所以從這個角度來看，我們看到的是團購模式在發揮作用，這也是我們能夠在這麼短的時間內積累到7億用戶的原因。

And this continues to work because we are a recommendation-based business model focusing on specific SKUs as opposed on brands, right?

這之所以會持續下去，是因為我們是基於推薦的商業模式，專注於特定的 SKU，而不是品牌，對嗎？

So we do believe that as -- everyone's demand on the platform really ranges across different price points for different categories.

因此，我們確實相信，每個人對該平台的需求確實涵蓋不同類別的不同價格點。

And through -- as we continue to get better at our recommendation, we understand the users better.

通過——隨著我們不斷改進我們的推薦，我們更好地了解用戶。

We are able to push them the most relevant product at the most relevant price points.

我們能夠以最相關的價格向他們推送最相關的產品。

And as the user activities and user engagement grow, the merchants naturally are coming to our platform seeking for growth and more opportunities.

隨著用戶活動和用戶參與度的增長，商家自然會來到我們的平台尋求增長和更多機會。

And the merchants themselves would be able to get the right level of traffic if they are able to offer the right value for their customer base.

如果商家能夠為其客戶群提供適當的價值，他們自己也將能夠獲得適當的流量。

So what we are doing is through the algorithms and through our recommendation, working with the merchants to help them provide more suitable products that are targeted at the users.

所以我們所做的就是通過算法，通過我們的推薦，與商家合作，幫助他們提供更適合用戶的產品。

And we believe the algorithm is working and continuing over time while recommendation will get better.

我們相信，隨著時間的推移，該算法正在發揮作用並持續下去，而推薦也會變得更好。

And through a combination of offering the right product and also advertising on the platform, we believe the merchants will continue to see the attractive returns on their investments.

通過提供合適的產品和在平台上做廣告相結合，我們相信商家將繼續看到誘人的投資回報。

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

你的下一個問題來自 Jefferies 的 Thomas Chong。

My question is about the business momentum in July and August across the different product categories.

我的問題是關於七月和八月不同產品類別的業務勢頭。

Sorry, Gary -- sorry, Thomas.

對不起，加里——對不起，托馬斯。

Hey, Thomas, is the question around our strategy or the trends we're seeing across different categories?

嘿，托馬斯，問題是圍繞我們的戰略還是我們在不同類別中看到的趨勢？

(technical difficulty)

（技術難度）

Operator, maybe we can take the next question first before we take Thomas back.

接線員，也許我們可以先回答下一個問題，然後再帶托馬斯回來。

Certainly.

當然。

Your next question comes from the line of Tina Long of Crédit Suisse.

您的下一個問題來自瑞士信貸銀行的蒂娜·朗（Tina Long）。

I have 2 questions.

我有 2 個問題。

The first one is on the sales and marketing.

第一個是關於銷售和營銷。

Because in your prepared remarks, you mentioned that you intentionally moderated the sales and marketing spending due to, I think, probably peers actually have been pretty aggressive.

因為在您準備好的講話中，您提到您有意調整了銷售和營銷支出，因為我認為，同行實際上可能相當激進。

And also, you expanded the CNY 10 billion program to some (inaudible).

而且，您將 100 億元人民幣的計劃擴大到了一些（聽不清）。

So I want to know, in the next 2 quarters, third quarter and fourth quarter, what are the plans for your sales and marketing?

所以我想知道，在接下來的兩個季度，第三季度和第四季度，你們的銷售和營銷計劃是什麼？

And under what circumstances you will actually step up the sales and marketing?

在什麼情況下你會真正加強銷售和營銷？

That's the first question.

這是第一個問題。

I'll do the second one after that.

之後我會做第二個。

Sure, Tina.

當然，蒂娜。

Let me ask Tony to address the question.

讓我請託尼回答這個問題。

First of all, the Q2 on sales and marketing expenses, we say to moderate our sales and marketing spending is when we observe this aggressive promotion spending by our peers on electronics.

首先，在第二季度的銷售和營銷費用方面，我們說，當我們觀察到同行在電子產品上的積極促銷支出時，我們會調整我們的銷售和營銷支出。

Relative to that, we saw household goods as more attractive opportunity to advance user engagement.

相對而言，我們認為家居用品是提高用戶參與度的更有吸引力的機會。

Therefore, households good actually has a higher purchase frequency than electronics.

因此，家庭用品實際上比電子產品的購買頻率更高。

So we chose a different strategy to invest in Q2.

所以我們在第二季度選擇了不同的投資策略。

We actually plan to deepen our user engagement going forward so that we will continue to spend on sales and marketing in the coming quarters to grow the mind share and trust among our users.

實際上，我們計劃進一步深化用戶參與度，以便我們在未來幾個季度繼續在銷售和營銷方面投入資金，以提高用戶的認知度和信任度。

We expect to increase our sales and marketing investment in second half of 2020 in a prudent manner, as well as we spend whenever we see opportunity meets our internal ROI hurdles.

我們預計將在 2020 年下半年謹慎增加銷售和營銷投資，並在看到機會滿足內部投資回報率障礙時進行投資。

Our annual spending per active user are still -- lags behind our peers.

我們的每位活躍用戶的年度支出仍然落後於我們的同行。

We believe we can narrow that difference by growing our mind share with users and gain -- to get more wallet share.

我們相信，通過增加我們與用戶的心智份額並獲得更多的錢包份額，我們可以縮小這種差異。

That's why we have to continue this type of investment.

這就是為什麼我們必須繼續這種投資。

Okay.

好的。

Yes, my first question is sort of related to this because I think based on the public data, the actual volume is actually very strong from PDD.

是的，我的第一個問題與此有關，因為我認為根據公開數據，PDD 的實際交易量實際上非常強勁。

So -- but the GMV actually was sort of -- is lower.

所以——但 GMV 實際上有點——較低。

So does that imply -- the average order size, is that actually trending down?

那麼這是否意味著平均訂單規模實際上呈下降趨勢？

And can you share a little bit more about the average order size and also outlook?

您能否分享更多有關平均訂單規模和前景的信息？

Because if you continue to allocate more traffic to the household goods, so will we continue to see the average order size to be -- to stay at a low level?

因為如果你繼續將更多流量分配給家庭用品，那麼我們是否會繼續看到平均訂單規模保持在較低水平？

Let me take this.

讓我拿著這個。

Users tends to associate Pinduoduo as their go-to platform for great savings every day.

用戶傾向於將拼多多視為每天節省大量費用的首選平台。

So for us, we also tend to have less of a concentrated spike in GMV the user activities around shopping promotions unlike our users -- our peers.

因此，對於我們來說，與我們的用戶（我們的同行）不同，我們圍繞購物促銷的用戶活動的 GMV 也往往不太集中。

Our user engagement tends to trend in a steady fashion and reflective which -- reflective of our gain in building our mind share.

我們的用戶參與度趨向於穩定的趨勢，並且反映出我們在建立心智份額方面所取得的成果。

And we will continue to invest in the user mind share to build on high frequency of engagement.

我們將繼續投資於用戶心智份額，以建立高頻率的參與度。

In fact, that's what we did in Q2.

事實上，這就是我們在第二季度所做的。

We noticed the consumer spending was more value cautious and the consumer were looking for more household necessities and including FMCG, agriculture produce.

我們注意到消費者支出更加謹慎，消費者正在尋找更多的家庭必需品，包括快速消費品、農產品。

That's why we dedicated our promotional program during the June 18 to include more products in these categories.

這就是為什麼我們在 6 月 18 日期間專門開展促銷計劃，以將更多產品納入這些類別。

This definitely have an impact on the AOV.

這肯定會對 AOV 產生影響。

Also, we add almost 100 million active buyers since beginning of this year, and these users are just getting to know Pinduoduo.

此外，今年以來我們新增了近1億活躍買家，而這些用戶才剛剛開始了解拼多多。

And actually, their contribution to GMV is less than 12 months.

而實際上，他們對 GMV 的貢獻還不到 12 個月。

Also, they are still developing their spending behavior on our platform.

此外，他們仍在我們的平台上發展他們的消費行為。

Okay.

好的。

So does that mean the outlook of AOV will stay at a lower level for a longer period of time?

那麼這是否意味著AOV的前景將在較長一段時間內保持在較低水平？

Tina, so what we have seen in the second quarter is growth across the categories.

蒂娜，我們在第二季度看到的是各個類別的增長。

But as I mentioned, the consumer behaviors in the second quarter were more value conscious, and we adapted the marketing strategy accordingly.

但正如我提到的，第二季度的消費者行為更加註重價值，我們相應地調整了營銷策略。

So we do believe that Pinduoduo -- many users associate Pinduoduo as a platform where they would go for great-value product, and we have seen people coming to us in the second quarter particularly looking for that -- for those products.

因此，我們確實相信拼多多——許多用戶將拼多多視為一個他們會購買超值產品的平台，我們看到人們在第二季度專門尋找這些產品。

We find the supply categories to be quite compelling in a sense because they have very high frequency, high engagement.

我們發現供應類別在某種意義上非常引人注目，因為它們的頻率非常高，參與度也很高。

And we do believe that over time, the AOV will continue to grow as they build their shopping behavior, their spending behavior on our platform over time.

我們確實相信，隨著時間的推移，隨著他們在我們平台上建立購物行為和消費行為，AOV 將繼續增長。

Your next question comes from Thomas Chong of Jefferies.

您的下一個問題來自 Jefferies 的 Thomas Chong。

Can you comment about the livestreaming online shopping strategies?

您能評價一下直播網購的策略嗎？

Thomas, in terms of livestreaming, we have seen continuing adoption of our merchants using the livestreaming as a feature to create engagement with their consumers on our platform.

托馬斯，就直播而言，我們看到商家不斷採用直播作為一項功能，在我們的平台上與消費者建立互動。

However, as -- however, we do not position or do not consider livestreaming to be a separate marketing tool.

然而，我們並不將直播定位為或不認為直播是一種單獨的營銷工具。

We consider really as part of the integrated experience on our platform.

我們確實將其視為我們平台上集成體驗的一部分。

So -- also, on Pinduoduo, as you will note, that we don't have actually a dedicated channel of entrance for livestreaming.

所以，在拼多多上，正如你會注意到的，我們實際上沒有專門的直播入口渠道。

Instead, you actually are -- our users come in contact or come in access to the livestreaming road through their browsing experiences.

相反，你實際上是——我們的用戶通過他們的瀏覽體驗接觸或進入了直播之路。

As they explore the SKUs, they will notice that a particular SKU may be in a livestreaming, and they will click into livestreaming and view the product being introduced.

當他們探索 SKU 時，他們會注意到某個特定的 SKU 可能正在直播中，他們會點擊進入直播並查看正在介紹的產品。

In that context, they may choose to purchase or they may choose to bookmark the seller.

在這種情況下，他們可能會選擇購買，也可能會選擇為賣家添加書籤。

Or actually, they may have seen something through their browsing; next time, they end up purchasing.

或者實際上，他們可能通過瀏覽看到了一些東西；下次，他們最終會購買。

So we do -- and we position intentionally livestreaming to be part of the holistic experiences that our merchant can offer to our users and begin to add to that exploration -- exploratory experiences our users have on the platform.

因此，我們有意將直播定位為我們的商家可以為用戶提供的整體體驗的一部分，並開始增加用戶在平台上的探索性體驗。

Yes.

是的。

One more thing I'd like to add is livestreaming will be one of the demands our customer post -- in this year.

我還想補充的一件事是，直播將成為我們的客戶今年提出的要求之一。

And actually, there are many others.

事實上，還有很多其他的。

And we try to have a full understanding about our customers, and we actually have more than just one features, try to capture different kind of needs, different kind of demand our customer has had since the starting of this year.

我們試圖充分了解我們的客戶，實際上我們擁有的不僅僅是一個功能，我們試圖捕捉不同類型的需求，我們的客戶自今年年初以來就有的不同類型的需求。

So I believe that livestreaming just is one of them but not all of them.

所以我認為直播只是其中之一，但不是全部。

Your last question comes from the line of Binnie Wong of HSBC.

你的最後一個問題來自匯豐銀行的 Binnie Wong。

Congrats on a strong improvement in the bottom line.

恭喜您的盈利有了顯著改善。

I have 2 questions here.

我這裡有兩個問題。

First question is on the monetization rate.

第一個問題是關於貨幣化率。

It's true that 3 -- I mean, the second quarter demonetization rates sharply increased to 3.2%.

確實如此，3——我的意思是，第二季度非貨幣化率急劇上升至 3.2%。

But if we look at on a half year basis, right, that is only -- that's around 2.5%, which is just similar to what we have done in the past years.

但如果我們以半年為基礎來看，對吧，那隻是——大約 2.5%，這與我們過去幾年所做的類似。

So should we just think of it this is more about a rise in spending from the pent-up demand?

那麼我們是否應該認為這更多是因為被壓抑的需求導致支出增加？

Or should we think about second quarter as there's some structural positive drivers that can last into the second half of the year?

或者我們是否應該考慮第二季度，因為有一些結構性積極驅動因素可以持續到下半年？

So just directionally thinking about it.

所以只是定向思考一下。

And then following on, on that is that if you're thinking about the rising online marketing, from which pool -- which advertising category?

接下來，如果您正在考慮不斷增長的在線營銷，那麼來自哪個池子——哪個廣告類別？

Is it because there we also do more -- management said about the agricultural advertiser and FMCG.

是不是因為我們在那裡做得更多——管理層談到農業廣告商和快速消費品時說道。

Do they tend to see bigger ad spending?

他們是否傾向於看到更大的廣告支出？

Like do they have a bigger ad pocket?

比如他們有更大的廣告口袋嗎？

And I just have a quick follow-up.

我只是進行了快速跟進。

Thank you for the question.

感謝你的提問。

Your question around the take rate.

你的問題是關於採納率的。

I would say that -- and as I -- I will say that take rate itself really is a function of merchant investing or pay -- and buying advertising to generate return for their sales.

我會說，正如我一樣，我會說，採取率本身實際上是商家投資或支付的函數，併購買廣告以產生銷售回報。

And as many of you have noted in your interviews with merchants, the advertising return on our platform are better than that relative to our peers'.

正如你們許多人在採訪商家時所指出的那樣，我們平台上的廣告回報比我們的同行要好。

So it is -- I would consider -- I want you to consider the advertising spend from merchants from that perspective. .

因此，我會考慮，我希望您從這個角度考慮商家的廣告支出。 。

Of course, it is true that because in the first quarter, the merchants weren't in a position to spend their advertising budget.

當然，這是事實，因為一季度商家的廣告預算花不完。

So we did benefit from some of that pent-up demand.

因此，我們確實從一些被壓抑的需求中受益。

But our conviction is that as long as we continue to deliver better or good, solid, attractive advertising return to the merchants, they will continue to advertise.

但我們堅信，只要我們繼續為商家提供更好或良好、紮實、有吸引力的廣告回報，他們就會繼續做廣告。

So we're doing this both in terms of improving our recommendation algorithm but also improving better advertising products.

因此，我們這樣做既是為了改進我們的推薦算法，也是為了改進更好的廣告產品。

So as an example, we rolled out at the end of last year a product that helps -- a smart tool that helps merchants to optimize their advertising return, as an example.

舉個例子，我們在去年年底推出了一款有幫助的產品——一個可以幫助商家優化廣告回報的智能工具。

So many of the merchants on our platform may not be as savvy and they don't really understand how to optimize for keywords or for banner app.

我們平台上的許多商家可能不那麼精明，他們並不真正了解如何優化關鍵字或橫幅應用程序。

However, by using our automated system, they at least are guaranteed a minimum threshold return, so they are in a better position and more willing to spend.

然而，通過使用我們的自動化系統，他們至少可以保證最低門檻回報，因此他們處於更好的位置並且更願意花錢。

So we do think that part of that pickup has to do with the better advertising products we are providing.

因此，我們確實認為，這種增長的部分原因與我們提供的更好的廣告產品有關。

And also, of course, you cannot do this without a very, very active user.

當然，如果沒有非常非常活躍的用戶，你就無法做到這一點。

So as I mentioned on our call, our strategy this year is to continue to invest in user engagement.

正如我在電話會議中提到的，我們今年的策略是繼續投資於用戶參與度。

And with user engagement, we believe the return to merchants advertising will continue to be attractive, and they will continue to have that demand over time.

隨著用戶的參與，我們相信商家廣告的回報將繼續具有吸引力，並且隨著時間的推移，他們將繼續有這種需求。

As to your question specifically around advertising tools, as you know, we started our business -- advertising business in -- primarily in search.

至於你提出的關於廣告工具的問題，如你所知，我們的業務——廣告業務——主要是在搜索領域開始的。

But as our business model focuses on recommendation, we have seen pickup, and we expect to continue to see pickup, see advertising as a contributor to the online marketing services revenue.

但由於我們的業務模式側重於推薦，我們已經看到了增長，並且我們預計將繼續看到增長，將廣告視為在線營銷服務收入的貢獻者。

Okay.

好的。

And just a quick question here is that is a -- I mean, it's a very good quarter that we see the operating margin is historically the narrowest in terms of the losses.

這裡有一個簡單的問題是——我的意思是，這是一個非常好的季度，我們看到營業利潤率在虧損方面是歷史上最窄的。

It's a significant improvement in the operating margin side.

這是營業利潤率方面的顯著改善。

Do you think this is something that we can extrapolate because of this efficiency and we reached kind of like an equilibrium as to how much we spend and then how much we can grow our top line?

您認為由於這種效率，我們可以推斷出這一點嗎？我們在支出多少以及收入增長多少方面達到了某種平衡？

Or is it that we should expect some quarterly fluctuation?

或者我們應該預期會出現一些季度波動？

Because I do understand sales and marketing is -- that's quite impacted by seasonality.

因為我確實了解銷售和營銷受季節性的影響很大。

So should we think about this to extrapolate into the second half?

那麼我們是否應該考慮這一點以推斷下半年？

And is that something that is kind of like we reached this inflection point already?

這是否有點像我們已經達到了這個拐點？

Yes.

是的。

I think you're talking about the profitability question here.

我認為你在這裡談論的是盈利能力問題。

Yes.

是的。

That's right.

這是正確的。

Our Q2 results do demonstrate how leverageable our business model is and how we could deliver profitability in the short term.

我們第二季度的業績確實證明了我們的業務模式的槓桿作用以及我們如何在短期內實現盈利。

But we don't believe it is the right strategy to focus on short-term profit over a sustainable, long-term value.

但我們認為，關注短期利潤而不是可持續的長期價值並不是正確的策略。

Our vision is to offer value-for-money products to all users through fun and interactive shopping experience.

我們的願景是通過有趣的互動購物體驗為所有用戶提供物有所值的產品。

We still need to continue our investment to grow user mind share and engagement, as we mentioned several times in the prepared remarks.

正如我們在準備好的發言中多次提到的那樣，我們仍然需要繼續投資以增加用戶的心智份額和參與度。

So we are not considering profitability this year.

所以我們今年不考慮盈利能力。

Okay.

好的。

Actually, we also plan to step up our investment in our ecosystem through strategic partnership and capital investment to better support our merchant in offering better value and better service to our users.

實際上，我們還計劃通過戰略合作夥伴關係和資本投資來加大對生態系統的投資，以更好地支持我們的商家為我們的用戶提供更好的價值和更好的服務。

I would now like to hand the conference back to the presenters for their closing remarks.

現在我想將會議交還給主持人，讓他們發表閉幕詞。

Please go ahead.

請繼續。

Thanks, operator, and thanks, everyone, for joining us on the conference call today.

謝謝接線員，也謝謝大家參加今天的電話會議。

If you have any further follow-up questions, please feel free to reach out to the IR team.

如果您還有任何後續問題，請隨時聯繫 IR 團隊。

We are always here for you.

我們隨時為您服務。

Thank you and have a good weekend.

謝謝您，祝週末愉快。

Ladies and gentlemen, that does conclude our conference for today.

女士們、先生們，今天的會議到此結束。

Thank you for participating.

感謝您的參與。

You may now all disconnect.

你們現在可以斷開連接了。