拼多多 (PDD) 2023 Q2 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to PDD Holdings, Inc. Second Quarter 2023 Earnings Conference Call. (Operator Instructions). I must advise you that this conference is being recorded today. I would now like to hand the conference over to your host today, Mr. Cheng Peng. Sir, please go ahead.

女士們，先生們，感謝各位的支持，歡迎參加拼多多控股有限公司2023年第二季業績電話會議。 （操作員指示）。我必須提醒大家，今天的會議正在錄製中。現在，我想將會議交給今天的主持人程鵬先生。先生，請開始。

Thank you, operator. Hello, everyone, and thank you for joining us today. My name is Cheng and I will help host earnings call. PDD Holdings' earnings release was distributed earlier and is available on our website at investor.pddholdings.com as well as through GlobeNewswire services.

謝謝接線生。大家好，感謝您今天的參與。我叫程先生，我將協助主持財報電話會議。拼多多控股的財報已於早些時候發布，您可以在我們的網站 investor.pddholdings.com 以及 GlobeNewswire 服務上查閱。

Before we begin, I would like to refer you to our safe harbor statement in earnings press release, which applies to this call as we will make certain forward-looking statements. Also, this call includes discussions of certain non-GAAP financial measures. Please refer to our earnings release, which contains a reconciliation of non-GAAP measures to GAAP measures.

在開始之前，我想請您參閱我們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陳述。此外，本次電話會議也討論了某些非公認會計準則 (non-GAAP) 財務指標。請參閱我們的收益報告，其中包含非公認會計準則 (non-GAAP) 指標與公認會計準則 (GAAP) 指標的對帳表。

Joining us today on the call are Chen Lei, our Chairman and Co-Chief Executive Officer; Zhao Jiazhen, our Executive Director and Co-Chief Executive Officer; Liu Jun, our VP of Finance. Lei and Jiazhen will make some general remarks on our performance for the past quarter and our strategic focus. Jun will then walk us through our financial results for the second quarter ended June 30, 2023.

今天參加電話會議的嘉賓包括：董事長兼聯席執行長陳雷、執行董事兼聯席執行長趙家珍以及財務副總裁劉軍。陳雷和趙家珍將就公司上一季的業績和策略重點進行一些概述。劉軍隨後將介紹截至2023年6月30日的第二季財務表現。

During the Q&A session, Lei and Jiazhen will answer questions in Chinese, and we will help translate. Please kindly note that all translations provided are for reference purpose only. In case of any discrepancy between the original remarks and the translate version, statements in the regional language should prevail. Now it's my pleasure to introduce our Chairman and Co-Chief Executive Officer, Chen Lei. Lei, please go ahead.

在問答環節，雷先生和家珍先生將用中文回答問題，我們將協助翻譯。請注意，所有翻譯僅供參考。若原文與翻譯版本有任何差異，請以當地語言的發言為準。現在，我很高興介紹我們的董事長兼聯合執行長陳雷先生。雷先生，請開始。

Hello, everyone. Thank you for joining our earnings call for the second quarter of 2023. I will start by giving a brief overview of our second quarter results. We achieved a total of RMB 52.3 billion in revenue this quarter, representing a 66% year-on-year increase. This reflects the growing trust that consumers place in our products and services. During the past quarter, we observed a continued improvement in consumer sentiment, resulting in increasing consumer demand across multiple product categories.

大家好。感謝大家參加我們2023年第二季的業績電話會議。首先，我將簡要介紹我們第二季的業績。本季度，我們實現總收入人民幣523億元，年增66%。這反映出消費者對我們產品和服務的信任度不斷提升。在過去一個季度，我們觀察到消費者信心持續改善，帶動多個產品類別的消費需求成長。

We also actively launched various promotional initiatives that boosted consumer demand. For instance, we supported June 18 shopping festival with attractive promotions and discount coupons to encourage spending. The response from consumers was positive. Recognizing this trend, we remain devoted to connecting products directly with consumers so that they can enjoy a wide range of quality products at attractive value with great service satisfaction.

我們也積極推出各種促銷活動，以刺激消費需求。例如，我們支持「6·18」購物節，推出了誘人的促銷活動和優惠券，以鼓勵消費。消費者的反響積極。我們深知這一趨勢，始終致力於將產品與消費者直接連接，讓他們能夠以優惠的價格享受到種類繁多的優質產品和卓越的服務體驗。

Since the start of 2023, our main focus has been high-quality development. The results from this quarter offer concrete evidence that our strategy is starting to bear fruit. This gives us more confidence that we are on the right path that our investments are laying the foundation for continued quality growth.

自2023年伊始，我們始終將高品質發展作為工作重點。本季的業績有力地證明了我們的策略正在取得成效。這讓我們更加堅信，我們正走在正確的道路上，我們的投資正在為持續的高品質成長奠定基礎。

A cornerstone for achieving high-quality growth is our commitment to research and development, which is the lifeblood of innovation. Over the past 12 months, our R&D expenditure exceeded RMB 10 billion with Q2's R&D spending hitting a new high, reflecting our dedication to investing in the future. We will continue to increase our investments in R&D as innovation represents the future engine of growth for the company.

實現高品質成長的基石是我們對研發的投入，研發是創新的生命線。過去12個月，我們的研發支出已超過100億元人民幣，第二季研發支出再創新高，反映了我們投資未來的決心。我們將繼續加大研發投入，因為創新是公司未來的成長引擎。

As a company with its growth in agriculture, we have been first-hand witnesses to how technology can transform and drive farming practices through technological advancement, we have optimized the matching of demand and supply helping farmers to sell their products and consumers to get fresher produced. A key driving force behind our emphasis in agriculture is our belief and social impact of innovation. This has motivated us to support talent cultivation, promoting adoption of practical and cost-effective technology and transform scientific research into tangible commercially viable solutions.

作為一家在農業領域蓬勃發展的公司，我們親眼見證了科技如何透過技術進步改變和推動農業實踐，並優化了供需匹配，幫助農民銷售產品，並幫助消費者獲得更新鮮的農產品。我們專注於農業的關鍵驅動力在於我們對創新的信念及其社會影響力。這促使我們支持人才培養，推廣實用且經濟高效的技術，並將科學研究成果轉化為實際的商業解決方案。

For the past 3 years, our annual Smart Agriculture Competition has been a platform to advance precision funding. We partnered with leading agronomic institutes including China Agriculture University, Zhejiang University, FAO China and the Shanghai Academy of Agricultural Sciences. The latest iteration involves the use of compact spaces like shipping containers for vertical funding, aspiring teams challenge themselves to come up with cost-effective ways to growing and marketing high-quality grid. With our help, many teams has turned the innovation into real-time applications.

過去三年來，我們每年舉辦的智慧農業競賽一直是推動精準融資的平台。我們與中國農業大學、浙江大學、聯合國糧農組織駐華代表處和上海市農業科學院等領先的農學機構合作。最新一屆的競賽利用貨櫃等緊湊空間進行垂直融資，面向有抱負的團隊挑戰自我，提出經濟高效的種植和推廣高品質電網的方法。在我們的幫助下，許多團隊已將創新成果轉化為實際應用。

For example, a pioneering team from our inaugural competition deploy 40 cutting-edge systems in powering farmers to boost their yield by 30%. We achieved this while at the same time, reducing overhead costs related to labor, fertilizer and plant protection. A team from this year's event is in the process of utilizing the algorithm that moderate neutron combinations with the aim to make it easy for more people to use.

例如，我們首屆比賽中的一支先鋒團隊部署了40個尖端系統，為農民提供動力，使其產量提高了30%。我們實現了這一目標，同時降低了與勞動力、肥料和植物保護相關的間接成本。今年比賽的一個團隊正在開發一種調節中子組合的演算法，旨在讓更多人輕鬆使用。

Our diverse projects and to bridge the gap between research and real-time application. We have supported the creation of many agritech demonstration hubs. These centers of excellence served us fertile ground to combust [dynamic] learning with hands-on experience. By giving medical sciences, the platform to validate their research and the real-world conditions, we envisage speeding up the digital transformation of agriculture to the collective benefit of society. We also strive to help push the boundary of agritech to our support for fundamental research.

我們致力於開展多元化項目，彌合研究與實際應用之間的差距。我們支持創建了許多農業科技示範中心。這些卓越中心為我們提供了沃土，讓我們能夠將動態學習與實務經驗結合。透過為醫學科學提供驗證其研究成果的平台和實際應用，我們期望加速農業數位轉型，造福社會。我們也致力於拓展農業科技的邊界，支持基礎研究。

In May to further accelerate the pace of innovation, we made a donation of RMB 100 million to China Agriculture University. As a part of our 10 Billion Agriculture Initiative, this contribution established a dedicated research fund aimed at addressing critical needs in agriculture. Additionally, we have partnered with FAO China to start a 3-year research program that focuses on 4 key themes, namely agriculture modelization, precision funding, sustainability and health nutrition.

今年5月，為了進一步加快創新步伐，我們向中國農業大學捐贈1億元人民幣。作為「百億農業計畫」的一部分，這筆捐款設立了專項研究基金，旨在解決農業領域的關鍵需求。此外，我們還與聯合國糧農組織駐華代表處合作，啟動了一項為期三年的研究項目，重點關注農業模式化、精準資助、永續性和健康營養四個關鍵主題。

Here, I'm happy to announce the appointment of Professor Ivonne Rietjens independent director to PDD (inaudible). For a solution, with the long-standing tenure since 2001 was a professor at Wageningen University and currently a department head of toxicology is a well-respected expert in food tech research. For 3-decade, expertise in food safety will no doubt be huge support to our Agritech initiatives. With her on board, our Board of Directors now have 7 members and the majority is being independent directors.

在此，我很高興地宣布任命 Ivonne Rietjens 教授為 PDD（聽不清楚）獨立董事。她自2001年以來長期擔任瓦赫寧根大學教授，現任毒理學系主任，並且是食品科技研究領域備受尊敬的專家。 30年來，她在食品安全方面的專業知識無疑將為我們的農業科技計畫提供巨大支持。隨著她的加入，我們的董事會現在有7名成員，其中大多數是獨立董事。

Third appointment not only English our Board of expertise, but also adds to its diversity. In addition, to strengthen our global footprint and operations, we will set up a legal and compliance committee to build an overseas regional, legal and compliance committee given their complexity and different requirements of each region. Agriculture Committee, which will replace the general counsel role at function.

第三次任命不僅提升了我們董事會的專業知識，也增強了董事會的多元化。此外，為了加強我們的全球影響力和運營，我們將設立法律與合規委員會，並根據各地區的複雜性和不同要求，組成海外區域法律與合規委員會。農業委員會將取代總法律顧問的職能。

As we stated in our IPO latter, PDD is still a young organization that will continue to adapt as it strives to be a mature global institution. During this journey, our goals remain the same. We will continue to champion innovation, nurture emerging talents and constantly seek to bring on the best people to guide us towards our goal of seeking quality development. And now I will hand over to our co-CEO, Jiazhen, who will go into more details about our quality development.

正如我們在IPO後期所言，拼多多仍是一家年輕的公司，我們將不斷適應變化，並努力成為一家成熟的全球性機構。在過程中，我們的目標始終如一。我們將繼續倡導創新，培養新興人才，並不斷尋求引進最優秀的人才，引領我們朝著高品質發展的目標邁進。現在，我將把發言權交給我們的聯合執行長賈振，他將更詳細地介紹我們的高品質發展。

[Interpreted] Thank you, Lei. Hello, everybody. This is Zhao Jiazhen. In Q2, with various pro consumption policies, we observed a clear trend of consumption settlement improvement. To support consumption in this year's June 18 promotion, we increased our efforts. We received positive responses and saw a further increase in consumer demand on the Pinduoduo platform.

[口譯] 謝謝雷總。大家好，我是趙佳珍。第二季度，隨著各項消費扶持政策的出台，我們觀察到消費結算改善趨勢明顯。為了在今年「6·18」促銷活動中支持消費，我們加大了力度。我們獲得了正面的回應，拼多多平台的消費需求進一步成長。

Riding on the encouraging industry trend, we proactively seize the opportunities to fully embrace high-quality development. Our strategy includes the following aspects.

乘著產業向好的勢頭，我們積極把握機遇，全面實現高品質發展。我們的策略包括以下幾個面向。

First, high-quality consumption to meet consumers' continued growing demand for quality, we strive to better serve consumers with more savings, better services and upgraded consumer protection. Second, high-quality supply. We go deep in the industrial and agriculture production areas, leverage our tech capabilities to support digital transformation and bring more quality products to the national and global markets; third, high-quality ecosystem.

一是高品質消費。為了滿足消費者日益增長的品質需求，我們努力以更低的成本、更優質的服務和更完善的消費者保障，更好地服務消費者。二是高品質供給。我們深入工農業生產領域，利用科技支撐數位轉型，為國內外市場提供更多優質產品。三是高品質生態。

We shoulder our social responsibilities and further refine our platform governance capability by supporting quality merchants with our 10 Billion Ecosystem Initiative we promote our virtuous cycle, which accelerates the upgrade of our platform ecosystem.

我們積極承擔社會責任，進一步完善平台治理能力，透過百億生態計畫扶持優質商家，促進良性循環，加速平台生態升級。

We are fully aware that high-quality development requires patient investment. Over the past quarter, we have seen some encouraging early results from our efforts in giving back to consumers, supporting quality merchants and enhancing our platform ecosystem. Our business also delivered decent growth.

我們深知高品質發展需要耐心投入。過去一個季度，我們在回饋消費者、扶持優質商家和優化平台生態等方面的努力取得了一些令人鼓舞的初步成果。我們的業務也實現了可觀的成長。

Now let me walk you through some specific measures that my team and I are actively implementing under our high-quality development strategy. First, for high-quality consumption, we are working hard to deepen more savings and better services so that we can give good experience. This improves consumer trust in our platform, which in turn stimulates spending.

現在，我來向大家介紹我和我的團隊在高品質發展策略下正在積極實施的一些具體措施。首先，為了促進高品質消費，我們正在努力深化儲蓄，提供更優質的服務，從而提供良好的體驗。這將提升消費者對我們平台的信任，進而刺激消費。

In Q2, we continued to promote a wide range of merchandise of consumers' preference. As mentioned, during this year's June 18 promotion, we increased efforts to give back to consumers. The promotions cover a full range of product categories, including electronics, cosmetics, fresh produce as of apparel. This stimulated full category consumption demand.

第二季度，我們持續推廣消費者喜愛的各類商品。如前文所述，在今年的618大促中，我們加強了回饋消費者的力道。促銷活動涵蓋了電子產品、化妝品、生鮮農產品以及服飾等全品類，刺激了全品類的消費需求。

In addition to solidifying more savings, we continue to provide better services, which increased consumer trust in our platform. For example, during June 18, we upgraded logistics and aftersales services, such as price protection, 10x compensation for counterfeit and to door delivery. These measures make sure consumers can buy with confidence and return with ease. We also cooperate with established insurance companies and brands to offer quality guarantee insurance, which covers situations such as inaccurte, product descriptions or product quality issues. .

除了進一步節省開支外，我們還持續提供更優質的服務，提升了消費者對我們平台的信任。例如，在6月18日，我們升級了物流和售後服務，包括價格保障、假貨10倍賠償以及送貨上門等服務。這些措施確保消費者可以放心購買，輕鬆退貨。我們也與知名保險公司和品牌合作，提供品質保證保險，涵蓋產品描述不準確或產品品質問題等情況。

After the June 18 promotion, we remain focused on adjusting fundamental consumer needs and continued with our (inaudible) approach. We provided quality products and services at good prices, consumer demand potential to support new product categories. As our platform continues to gain trust and recognition, we are delighted to see that a growing number of brands across multiple categories have started to cooperate with Pinduoduo as the primary channel to reach consumers.

6月18日促銷活動之後，我們依然專注於調整消費者的根本需求，並延續了我們（聽不清楚）的策略。我們以優惠的價格提供優質的產品和服務，並挖掘消費者的需求潛力，以支持新的產品類別。隨著我們平台不斷贏得信任和認可，我們很高興看到越來越多來自不同品類的品牌開始與拼多多合作，將其作為觸達消費者的主要管道。

Another crucial aspect of high-quality development is the co-development and integration of the digital economy and the traditional industries so that more quality products can reach the national and global markets. This is what we call high-quality supply.

高品質發展的另一個重要方面，是數位經濟和傳統產業的協同發展和深度融合，讓更多優質產品走向全國乃至全球市場，這就是我們所謂的高品質供給。

Pinduoduo has deep root in agriculture, it will continue to be a focal point in our pursuit of high-quality development as we bring more agri produce to market. Innovation is the key to enhancing quality and creating added value. So it is crucial to meet consumers' growing demand for high-quality, safe and healthy agriculture produce through innovation and the adoption of Agritech.

拼多多深耕農業領域，將繼續成為我們高品質發展的重點，為市場提供更多農產品。創新是提升品質、創造附加價值的關鍵。因此，透過創新和農業科技的應用，滿足消費者對優質、安全、健康農產品日益增長的需求至關重要。

In Q2, we launched the third smart agriculture competition and a second Pinduoduo Crop Growing competition. Through this initiative, we are actively engaged in agritech innovation and support technology adoption in agriculture. Our vision is to further improve the quality and the efficiency of agricultural production through technology. At the same time, we are stepping out support for products enabled by agritech, on our platform to accelerate our research funding translate into products.

第二季度，我們推出了第三屆智慧農業比賽和第二屆拼多多作物種植大賽。透過這些舉措，我們積極參與農業科技創新，並支持科技在農業領域的應用。我們的願景是透過科技進一步提高農業生產的品質和效率。同時，我們正加大對平台上農業科技賦能產品的支持力度，加速科研資金轉化為產品。

For the more driving the digital transformation of manufacturing with new tools and new models leveraging our consumer insights and tech capabilities will help manufacturers that understand evolving consumer demand and improve production efficiency. Last quarter, our team went into industrial belts and launched a series of live streaming events to showcase the broad selection of local products to consumers. This helps consumers learn about the product tangibly and enhance their trusting online shopping.

為了更好地利用新工具和新模式，推動製造業的數位轉型，並充分利用我們的消費者洞察和技術能力，幫助製造商更好地了解不斷變化的消費者需求，並提高生產效率。上個季度，我們的團隊深入產業帶，推出了一系列直播活動，向消費者展示豐富的本地產品選擇。這有助於消費者切實了解產品，並增強他們對線上購物的信任。

We are also deep in collaboration with merchants in areas such as product design and marketing so they can better meet diverse consumer needs. This is welcomed by many merchants. For example, we recently partnered with a well-known liquor brand. Together, we experimented with online plus offline approach, which has offline pop-up shops. This format led to their record-breaking sales of our platform. And, at the same time, enable the brand to reach young consumers effectively and obtain valuable consumer insights.

我們也與商家在產品設計和行銷等領域進行深度合作，幫助他們更能滿足多樣化的消費者需求。這受到了許多商家的歡迎。例如，我們最近與知名酒類品牌合作，共同探索線上線下結合的模式，即開設線下快閃店。這種模式幫助他們在我們平台上的銷售額創下了紀錄。同時，也使該品牌能夠有效地觸及年輕消費者，並獲得寶貴的消費者洞察。

High-quality ecosystem is the foundation that nurtures the sustainable and mutually beneficial growth of the platform and all its participants.

優質的生態系統是培育平台及所有參與者可持續、互利成長的基礎。

Last quarter, we launched a 10 Billion Ecosystem Initiative to support quality merchants and products. This initiative provides incentives for SME merchants and quality merchants to upgrade their service offerings. Thereby creating a robust environment to drive up efficiency and service quality of the entire ecosystem.

上季度，我們啟動了“百億生態計劃”，以支持優質商家和產品。該計劃將激勵中小企業商家和優質商家升級其服務，從而創造良好的環境，提升整個生態系統的效率和服務品質。

We also made significant efforts in platform governance areas such as food and drug safety, model protection and live streaming compliance.

我們在食品藥品安全、模特兒保護、直播合規等平台治理方面也做出了重要努力。

We hope to accelerate the positive momentum in platform ecosystem with both the 10 Billion Ecosystem Initiative and our platform governance efforts.

我們希望透過百億生態系統計畫和平台治理工作來加速平台生態系統的積極勢頭。

For example, we collaborated with major publishing houses and book brands to launch the (inaudible). We continue to invest hundreds of millions of RMB in coupons in an effort to promote a sustainable online authentic book market and to strengthen IP protection. Our efforts covered 6 million copies of (inaudible), connecting quality content directly with consumers. As of today, over 2,700 publishing houses, food companies and distributors have joined the Pinduoduo platform.

例如，我們與各大出版社和圖書品牌合作推出了（聽不清楚）。我們持續投入數億元人民幣用於優惠券，致力於促進線上正版圖書市場的永續發展，並加強智慧財產權保護。我們的努力涵蓋了600萬冊（聽不清楚），將優質內容直接與消費者連結。截至目前，已有超過2700家出版社、食品公司和分銷商加入拼多多平台。

Throughout our journey to a high-quality development, we are always looking for opportunities to show them more social responsibilities and create value for the society. Earlier this month, the (inaudible) region was hit by severe rainfall. (inaudible) RMB 30 million to support the flood relief efforts. At the same time, in partnership with People Sale, we launched a dedicated relief campaign to help businesses in the affected regions, reduced losses from production disruptions and inventory damage and help them get back to normal operations quickly.

在高品質發展的旅程中，我們始終致力於展現更多社會責任，為社會創造價值。本月初，該地區遭受強降雨襲擊。我們已撥款3000萬元人民幣支持抗洪救災工作。同時，我們與People Sale合作，開展了一項專項援助活動，幫助受災地區的企業減少生產中斷和庫存損失，並幫助他們迅速恢復正常運作。

Furthermore, to help book merchants in [Duo Duo], we set up a dedicated book selling channel and provided relief measures such as traffic support and 0 commission policy to help these merchants reduce losses and resume normal operations.

此外，為幫助【多多】書店商家，我們設立了專屬售書管道，並提供流量扶持、0佣金政策等紓困措施，幫助商家減少損失，恢復正常經營。

We are well aware that our value creation is acceptable from our long-term strategy of high-quality development. Our focus on high-quality development and ecosystem and also we lay a solid foundation for the future, but also earns immediate policy feedback from consumers and merchants. Looking forward, we will continue to support quality merchants and SMEs and to promote digital inclusion agriculture. We will keep doing the right things and keep up our investments in the key areas to speed up our progress towards high-quality development. Now I'll hand it over to Jun. She will provide you with an update on our financial performance.

我們深知，從我們長期高品質發展策略來看，我們的價值創造是可以接受的。我們專注於高品質發展和生態系統，這不僅為未來奠定了堅實的基礎，也獲得了消費者和商家的即時政策回饋。展望未來，我們將繼續支持優質商家和中小企業，並推動數位包容性農業。我們將繼續做正確的事情，並持續在關鍵領域投入，以加快我們向高品質發展的步伐。現在，我將把時間交給Jun。她將向您介紹我們最新的財務表現。

Thank you, Jiazhen. Hello, everyone. Let me walk you through our financial performance for the second quarter ended June 30, 2023. In terms of income statement, in the second quarter, our total revenues increased 66% year-over-year to RMB 52.3 billion. Our top line growth was mainly driven by consumption recovery and the early feedback from excluding our high-cost development strategy. .

謝謝佳珍。大家好。我先來介紹一下我們截至2023年6月30日的第二季財務表現。就損益表而言，第二季我們的總營收年增66%，達到人民幣523億元。我們的營收成長主要得益於消費復甦以及我們取消高成本發展策略後的早期回饋。

Revenues from online marketing services and others to RMB 37.9 billion this quarter, up 50% from the same quarter of 2022. Revenues from transaction services this quarter were RMB 14.3 billion, up 131% from the same quarter of 2022.

本季網路行銷服務及其他收入為人民幣379億元，較2022年同期成長50%。本季交易服務收入為人民幣143億元，較2022年同期成長131%。

Moving on to costs and expenses. Our total cost of revenues increased 135% from RMB 8 billion in Q2 2022 to RMB 18.7 billion this quarter, mainly due to increase in fulfillment fees and payment processing fees.

再來說說成本和費用。我們的總收入成本從2022年第二季的80億元人民幣增加了135%，達到本季的187億元人民幣，主要是由於配送費和支付處理費的增加。

On a GAAP basis, total operating expenses this quarter increased 41% to RMB 20.9 billion from RMB 14.8 billion in the same quarter of 2022. On a non-GAAP basis, our total operating expenses increased to RMB 19 billion this quarter from RMB 12.9 billion in Q2 2022.

以美國通用會計準則 (GAAP) 計算，本季總營運費用較 2022 年同期的 148 億元 148 億元成長 41% 至 209 億元。以非美國通用會計準則 (Non-GAAP) 計算，我們的總營運費用較 2022 年第二季的 129 億元人民幣增長至本季的 190 億元。

In the fourth quarter, we seized the opportunities of favorable consumption trends by investing family and responsibly to support our long-term high-quality development. Our total non-GAAP operating expenses as a percentage of total revenue this quarter was 36% compared to 41% in the same quarter last year.

第四季度，我們抓住消費趨勢利好機遇，積極投資家庭和負責任的事業，支持公司長期高品質發展。本季度，非公認會計準則下的總營運費用佔總收入的36%，去年同期為41%。

Looking into specific expense items. Our non-GAAP sales and marketing expenses this quarter were RMB [16.6] billion, up 53% compared to the same quarter last year. On a non-GAAP basis, our sales and marketing expenses as a percentage of our revenue this quarter was 32% compared with 34% for same quarter in 2022.

具體費用項目如下。本季度，我們非公認會計準則下的銷售及行銷費用為人民幣166億元，較去年同期成長53%。以非公認會計準則計算，本季我們銷售及行銷費用佔營收的32%，而2022年同期為34%。

In Q2, we stepped up efforts during the June 18 shopping festival and throughout the entire quarter to provide more savings to consumers. We also improved our service quality to deliver better services and support consumption.

第二季度，我們加大「6·18」購物節及整個季度的力度，為消費者提供更多優惠，並提升服務品質，提供更優質的服務，支持消費。

Our non-GAAP general administrative expenses were RMB 370.2 million versus RMB 164.7 million in the same quarter of 2022. Our research and development expenses were RMB 2.1 billion this quarter on a non-GAAP basis and RMB 2.7 billion on a GAAP basis, setting a new high.

我們的非美國通用會計準則一般管理費用為人民幣 3.702 億元，而 2022 年同期為 1.647 億元。本季我們的研發費用以非美國通用會計準則計算為人民幣 21 億元，以美國通用會計準則計算為人民幣 27 億元，創下新高。

R&D is fundamental to the high-quality development of our platform ecosystem. We will continue to grow our R&D capabilities so that we can understand consumer moving demand and serve them better.

研發是我們平台生態系統高品質發展的基石。我們將繼續提升研發能力，以更好地理解消費者的動態需求，並更好地服務他們。

Operating profit for the quarter was RMB 12.7 billion on a GAAP basis compared with RMB 8.7 billion in the same quarter last year. Non-GAAP operating profit was RMB 14.6 billion versus RMB 10.5 billion in the same quarter last year. Non-GAAP operating profit margin was 28% this quarter, compared with 34% for the same quarter last year.

本季以美國通用會計準則計算的營業利潤為人民幣127億元，去年同期為人民幣87億元。以非美國通用會計準則計算的營業利潤為人民幣146億元，去年同期為人民幣105億元。本季以非美國通用會計準則計算的營業利潤率為28%，去年同期為34%。

Net income attributable to ordinary shareholders was RMB 13.1 billion for the quarter, compared to RMB 8.9 billion in the same quarter last year.

本季歸屬於普通股股東的淨利為人民幣131億元，去年同期為人民幣89億元。

Basic earnings per ADS was RMB 9.64 and earnings per ADS and diluted earnings per ADS was RMB 9 versus basic earnings per ADS of RMB 7.06 and diluted earnings per ADS of RMB 6.22 in the same quarter of 2022. Non-GAAP net income attributable to ordinary shareholders was RMB 15.3 billion compared with RMB 10.8 billion in the same quarter last year. Non-GAAP diluted earnings per ADS was RMB 10.47 versus RMB 7.54 in the second quarter of 2022.

每股美國存託憑證基本收益為人民幣9.64元，每股美國存託憑證攤薄收益為人民幣9元，而2022年同期每股美國存託憑證基本收益為人民幣7.06元，每股美國存託憑證攤薄收益為人民幣6.22元。非美國通用會計準則下，歸屬於普通股股東的淨利為人民幣153億元，去年同期為人民幣108億元。非美國通用會計準則下，每股美國存託憑證攤薄收益為人民幣10.47元，而2022年第二季為人民幣7.54元。

To sum up, over the past quarter, we delivered solid financial results and high quality development began to show impact. Looking ahead, we will continue to invest with determination and patience to execute our high-quality development strategy. We also react positively to competition by keeping our more savings and better services capabilities.

總而言之，過去一個季度，我們取得了穩健的財務業績，高品質發展已初見成效。展望未來，我們將繼續堅定不移地投入，耐心推進高品質發展策略。同時，我們也將積極應對競爭，維持更高的成本投入和更優的服務能力。

That completes the income statement. Now let me move on to cash flow. Our net cash flow generated from operating activities was RMB 23.4 billion, compared with RMB 19.4 billion in the same quarter last year. As of June 30, 2023, we have RMB 179.5 billion in cash, cash equivalents and short-term investments. Thank you. This concludes my prepared remarks.

損益表到此結束。現在我來談談現金流。我們經營活動產生的淨現金流為人民幣234億元，去年同期為人民幣194億元。截至2023年6月30日，我們擁有人民幣1,795億元的現金、現金等價物及短期投資。謝謝。我的發言到此結束。

Thank you, Jun. Next, we will move on to the Q&A session. Today's Q&A session, Lei, Jiazhen and Jun will take questions from analysts on the line. We could take a maximum of 2 questions by analysts, Lei and Jiazhen will answer questions in Chinese, and we will help translate the remarks for easier reference. Operator, we may now take questions on the line. .

謝謝Jun。接下來，我們進入問答環節。今天的問答環節，Lei、Jiazhen和Jun將在線上回答分析師的問題。我們最多可以回答兩位分析師的提問，Lei和Jiazhen將用中文回答問題，我們也會幫忙翻譯發言內容，以便於參考。接線員，我們現在可以在線上回答問題了。

(Operator Instructions) Your first question will come from Joyce Ju of Bank of America.

（操作員指示）您的第一個問題來自美國銀行的 Joyce Ju。

My first question is, we note Pinduoduo has started a new long-term strategy of focusing on high-quality growth since last quarter. Could management elaborate a bit more on the implementation of this strategy. What business measurement and movement having been taken and how this strategy is going to affect company's financial outlook in the near and longer term. .

我的第一個問題是，我們注意到拼多多自上個季度起啟動了一項新的長期策略，專注於高品質成長。管理階層能否進一步闡述該戰略的實施？採取了哪些業務措施和措施？該策略將如何影響公司近期和長期的財務前景？

My second question is that we understand agriculture has been Pinduoduo's key strategy for a very long time. And it is also a core merchandise category for the platform, how this strategy and how agriculture fit under the company's new strategy of high-quality developments. What impact will it have on the company's operations and financials. Will company address your investment budget and pace in the corresponding areas .

我的第二個問題是，我們了解農業長期以來一直是拼多多的核心策略，也是平台的核心商品類別。請問農業策略如何與公司新的高品質發展策略相契合？這將對公司的營運和財務狀況產生什麼影響？公司是否會在相應領域公佈投資預算和進度？

[Interpreted] This is Jiazhen. I'll answer your question on our high-quality development strategy.

[口譯]我是家珍。我來回答您關於我們高品質發展策略的問題。

So over the past few years, we gradually transitioned from fast growth to solid development from marketing-driven to R&D driven. And starting from the first half of this year, we fully embraced the high-quality development strategy. And this helps a new development phase for us, which prioritizes quality .

所以，過去幾年，我們逐步從高速成長轉向穩健發展，從市場驅動轉向研發驅動。今年上半年，我們全面實施高品質發展策略，這幫助我們進入了以品質為先的新發展階段。

We are in the development stage, and there are still many areas to improve in terms of certain consumer as well and building driving ecosystem. So strengthening our capability and embracing high-quality development is a necessary path to take to further deepen our value.

我們正處於發展階段，在特定消費者和驅動生態系統建構方面仍有許多需要改進的地方。因此，增強自身能力，擁抱高品質發展是進一步深化我們價值的必經之路。

As I have mentioned earlier, implementing this strategy mainly involves 3 key areas. First is high-quality consumption. We are always consumer-centric. We work hard to strengthen our capability to give more savings and better services. So we can deliver a 360-degree good experience to consumers and meet their diversified demand.

正如我之前提到的，實施這項策略主要涉及三個關鍵領域。首先是高品質消費。我們始終以消費者為中心，努力增強提供更多優惠和更優質服務的能力，從而為消費者提供360度的優質體驗，滿足消費者多樣化的需求。

Second is high-quality supply. We leverage our tech expertise, and we go deep in the supply chains. We promote digital inclusion in manufacturing and also agriculture sectors, and we hope to directly connect more quality products to the nationwide and also the global market.

第二是高品質供應。我們利用技術專長，深入供應鏈。我們推動製造業和農業領域的數位包容性，希望將更多優質產品直接連接到全國乃至全球市場。

Third is high-quality ecosystem. With our 10 billion Ecosystem Initiative, we actively support quality merchants, SME businesses and pharma merchants. And we also enhance our overall platform governance.

第三是打造優質生態。我們透過百億生態計劃，積極扶持優質商家、中小企業和醫藥商家，並持續提昇平台整體治理水準。

And for the foreseeable future, Lei and I will lead our team together to invest in these areas persistently and also patiently. We strive to enhance consumer experience, optimize efficiency of the agriculture and manufacturing supply chains and also reinforce the positive trend of our platform ecosystem, and execute our high-quality development strategy in every single detail of our operations.

在可預見的未來，我和雷軍將帶領團隊在這些領域持續投入，並保持耐心。我們致力於提升消費者體驗，優化農業和製造業供應鏈效率，鞏固平台生態的積極態勢，並將高品質的發展策略落實到每個細節。

[Interpreted] This is Lei. I will take your question on agriculture strategy. Pinduoduo started out in agriculture, and our development is deeply connected with this agricultural supply chain. We are proactively leveraging our tax background to promote digital inclusion in agriculture.

[口譯]我是雷總。我來回答您關於農業策略的問題。拼多多起步於農業，我們的發展與農業供應鏈緊密相連。我們正在積極利用我們的稅務背景，推動農業領域的數位包容性。

Online penetration of agricultural produce remains relatively low. There is a lot of room to streamline the agricultural supply chain, and we can create our unique value by using our tech capabilities to facilitate the development of agriculture. Going forward, agriculture will continue to be a major focus for us.

農產品的線上滲透率仍相對較低。農業供應鏈的最佳化空間很大，我們可以利用自己的技術能力促進農業發展，創造獨特的價值。未來，農業仍將是我們的重點發展領域。

Recently, we continued our efforts in bringing together industry and academia. We hosted several advertised competitions, such as the Smart Agriculture competition, Pinduoduo Crop Growing competition and the Global Agriculture Innovative competition. We are happy to see our contribution to the commercialization of research funding.

近期，我們持續致力於產學合作。我們舉辦了許多公開賽，例如智慧農業比賽、拼多多作物種植比賽和全球農業創新比賽。我們很高興看到我們為科研資金的商業化做出了貢獻。

As I mentioned, it is our pleasure to welcome Professor Ivonne Rietjens to join our Board as Independent Director. She has been a 10-year provider at Wageningen University since 2001, and she currently serves as the Head of Toxicology Department. The Netherlands is an agricultural powerhouse and Wageningen University is a globally renowned institution in agronomic research.

正如我之前提到的，我們非常榮幸地歡迎Ivonne Rietjens教授加入我們的董事會，擔任獨立董事。她自2001年以來一直在瓦赫寧根大學任教十年，目前擔任該校毒理學系主任。荷蘭是農業強國，而瓦赫寧根大學是全球知名的農業研究機構。

Ivonne has decades of experience in food safety. She will bring to our Board deep expertise in food technology and cutting-edge agritech research trends. With Ivonne on board, we look forward to deepening our contribution in the modernization of agriculture. Thank you.

Ivonne 在食品安全領域擁有數十年經驗。她將為我們的董事會帶來深厚的食品技術專業知識和前沿的農業科技研究趨勢。隨著 Ivonne 的加入，我們期待在農業現代化領域做出更大貢獻。謝謝。

Operator, we can move to the next analyst on the line.

接線員，我們可以轉到下一位分析師了。

Our next question today will come from Yang Bai of CICC.

今天的下一個問題來自中金公司的楊白。

I have 2 questions on financials. You booked total revenue growth of 66% and the online marketing service growth of 50%.What do you think contributed to that highlight in the past quarter, and do you think this momentum will continue into the second half of the year?

我有兩個關於財務的問題。你們公佈的總收入成長了66%，網路行銷服務成長了50%。您認為是什麼促成了上個季度的這一亮點？您認為這種勢頭會持續到下半年嗎？

My second question is, we noticed your profit margin decreased slightly year-on-year. What are some of the key areas you are putting results into? And how should we understand the fluctuation of your profit margin as industry competition further intensified.

我的第二個問題是，我們注意到貴公司的利潤率較去年同期略有下降。請問貴公司在哪些關鍵領域投入了心力？隨著產業競爭進一步加劇，我們該如何理解利潤率的波動？

[Interpreted] This is Jiazhen, and I'll take the question on growth rate first. So in short, growth this quarter can be attributed to 2 factors. The first is the positive industry trends. And second is the early positive feedback towards our high-quality development strategy.

[譯]我是賈振，我先回答關於成長率的問題。簡而言之，本季的成長可以歸因於兩個因素。第一是正向的行業趨勢。第二是對我們高品質發展策略的早期正向回饋。

Our business is closely tied to the overall consumption market. And we noticed a continued improvement in the market trends and also consumers increasing witness to shop. We think this is inseparable from the introduction and also implementation of various promote consumption support measures.

我們的業務與整體消費市場緊密相連。我們注意到市場趨勢持續改善，消費者購物意願也不斷增強。我們認為這與各項促進消費的扶持措施的推出和實施密不可分。

In Q2, we seized opportunities to enhance our capability to gain more savings and better services. We expanded our valuable money product choices. And also we executed our high-quality development strategy with determination. For example, during the June 18 event, we increased promotions and also invested billions in coupon to give back to consumers. And this helped stimulate demand for all merchandise categories. And beyond this promotional event, we also follow through with our concept of (inaudible) June 18 and has provided consumers with savings nonstop.

在第二季度，我們抓住機遇，提升了獲得更多優惠和更優質服務的能力。我們豐富了寶貴的貨幣產品選擇，並堅定地執行了高品質的發展策略。例如，在6月18日活動期間，我們加強了促銷力度，並投入了數十億美元的優惠券回饋消費者。這有助於刺激所有商品類別的需求。除了這次促銷活動之外，我們也堅持6月18日（聽不清楚）的理念，持續為消費者提供優惠。

And our efforts improved consumption settlement, and this in turn generated more sales opportunities for the merchants, also our support for quality merchants encourage them to invest resources and collaborate with us serving customers well together. So as a result, we recorded decent revenue growth.

我們的努力改善了消費結算，從而為商家創造了更多的銷售機會。同時，我們對優質商家的支持也鼓勵他們投入資源，與我們合作，共同為客戶提供更好的服務。因此，我們的收入實現了可觀的成長。

We believe that revenue is a natural result of our value creation and high-quality development is our long-term strategy. We do not prioritize growth over a single quarter. We think that if we can better serve the diverse consumer needs with enhanced services and better savings, and if we can build our robust ecosystem, I think our platform will naturally achieve sustainable and high-quality development.

我們相信收入是我們價值創造的自然結果，高品質發展是我們的長期策略。我們不會將成長局限於單一季度。我們認為，如果我們能夠透過更優質的服務和更優惠的價格來更好地滿足多樣化的消費者需求，並建立強大的生態系統，我們的平台自然會實現可持續的高品質發展。

This is Jun. Thanks. Let me take your second question. Well, first, we are still in the development phase. Profitability itself is not our priority. As Jiazhen just mentioned, it's a natural result of the value we create. So with that said, in Q2, we saw different financial results, showing the early results from our high-quality development strategy. And in this process of executing our high-quality development strategy, we are stepping up investment in many key investment areas. For example, giving back to consumers, supporting SME merchants investing with cultural and, manufacturing supply chains and 10 billion Ecosystem Initiative to many [areas]. These efforts are reflecting in our financial results.

我是Jun。謝謝。我來回答你的第二個問題。首先，我們仍處於發展階段。獲利本身並非我們的首要任務。正如Jiazhen剛才提到的，獲利是我們創造價值的自然結果。話雖如此，在第二季度，我們看到了不同的財務業績，這展現了我們高品質發展策略的初步成效。在執行高品質發展策略的過程中，我們正在加大對許多關鍵領域的投資。例如，回饋消費者，支持中小企業商家投資文化和製造業供應鏈，以及向許多領域投入100億的生態系統計畫。這些努力都反映在我們的財務表現上。

Also, as competition further intensified, we will react positively by enhancing our board savings and better service core capabilities and giving back to our consumers and merchants.

此外，隨著競爭進一步加劇，我們將積極應對，提高董事會節約和更好的服務核心能力，回饋我們的消費者和商家。

I'll now go to high-quality developments. When we see opportunities to create long-term value, we will continue to exercise financial prudence and invest with determination. Thank you.

現在，我將談談高品質的發展。當我們發現能夠創造長期價值的機會時，我們將繼續保持財務審慎，並堅定地進行投資。謝謝。

Operator, I think we have time for 1 more analyst.

接線員，我想我們還有時間再接聽 1 位分析師。

Our next question will come from Ellie Jiang of Macquarie.

我們的下一個問題來自麥格理的 Ellie Jiang。

Let me quickly translate myself. My first question is on the competition. So we're seeing a lot of the competitors putting more emphasis towards the promotions and low pricing categories. Also, we are seeing pretty strong active buyers and merchant data from the peers. How do management evaluate the impact on our operations? Are we feeling more pressure, and that would potentially impact our strategy going forward. .

讓我快速翻譯一下。我的第一個問題是關於競爭的。我們看到很多競爭對手更重視促銷和低價類別。此外，我們看到同業的活躍買家和商家數據相當強勁。管理階層如何評估這對我們營運的影響？我們是否感受到更大的壓力，這可能會影響我們未來的策略。

And the second question is on Temu. We have seen Temu, following Temu closely in the recent period. We understand that this is still very early stage and might have limited financial contribution. But I wonder if management could share with us the latest progress of Temu and talk about the overall strategy, any financial contribution management can share.

第二個問題是關於 Temu 的。我們最近一直在密切關注 Temu 的發展。我們知道目前還處於早期階段，財務貢獻可能有限。但我想請問管理階層能否與我們分享 Temu 的最新進展，並談談整體策略，以及管理階層能否分享的財務貢獻。

[Interpreted] This is Jiazhen, and thanks for the questions, and I'll share some thoughts on competition first. We noticed changes in the industry. And as consumption covers and consumers show stranded demand, it's not surprising for us to see peers setting up on subsidies. Competition is indeed becoming more intense. And we believe that healthy competition, which is driven by consumer-centric goal can benefit the industry, which includes not only the consumers, but also the platforms as well.

[翻譯] 我是佳珍，感謝您的提問，我首先想分享一些關於競爭的想法。我們注意到產業正在改變。隨著消費覆蓋率擴大，消費者需求出現滯留，我們看到同行開始補貼也就不足為奇了。競爭確實越來越激烈。我們相信，以消費者為中心的良性競爭能夠惠及整個產業，不僅惠及消費者，也惠及平台。

The e-commerce industry is always rapidly evolving. And for us, the key to adapting to the rapid changes is not to focus on what our competitors are doing. Instead, it is to stay laser-focused on consumer demand and shop our own skills and also to face competition directly and also briefly. We channel competitive pressure into more motivation to strengthen our core competencies and focus on implementing our high-quality development strategy.

電商產業瞬息萬變。對我們來說，適應快速變化的關鍵在於不去專注於競爭對手的行動，而是專注於消費者需求，發揮自身優勢，面對競爭，並保持競爭力。我們將競爭壓力轉化為更大的動力，強化核心競爭力，並專注於實施高品質發展策略。

And serving customers well is at the core of our value creation. We are deepening our capabilities of providing more services, more savings remains very important to us. And last quarter, for example, we invested $1 billion in the generating promotion to cover all product categories and make sure consumers have access to quality products at affordable prices. And positive consumer experience requires a comprehensive effort. It is not just about price, and we continue to focus on R&D to understand and also adapt to consumers' evolving needs to help consumers shop with a peace of mind. We also work very hard to provide better services, which includes, for example, upgrading logistics and also after-sale support.

優質服務客戶是我們價值創造的核心。我們正在深化提供更多服務的能力，節省更多成本對我們來說仍然非常重要。例如，上個季度，我們投入了10億美元用於推廣活動，涵蓋所有產品類別，確保消費者能夠以實惠的價格獲得優質的產品。良好的消費者體驗需要全方位的努力。這不僅是價格的問題，我們將繼續專注於研發，以了解並適應消費者不斷變化的需求，幫助消費者安心購物。我們也非常努力地提供更好的服務，例如昇級物流和售後支援。

And high-quality supply is for merchants to offer value for money product. And we are promoting digital transformation agriculture and also manufacturing. Our team is active in the field and also in the factories to help farmers and also SME manufacturers standardize and also improve design, production as well as logistics.

高品質的供應有助於商家提供物有所值的產品。我們正在推動農業和製造業的數位轉型。我們的團隊活躍在田間和工廠，幫助農民和中小型製造商實現設計、生產和物流的標準化和改進。

With our 10 Billion Ecosystem Initiative, we also provide support to quality merchants and products. And this incentivizes them to improve product and service quality. I think this in turn promotes a healthy and high-quality development of our platform ecosystem.

透過“百億生態計劃”，我們也為優質商家和產品提供支持，激勵他們提升產品和服務品質。我認為這反過來又會促進我們平台生態系統的健康高品質發展。

We received positive feedback from these efforts. And this gives us confidence to continue on this path of high-quality development. Our strategy is very, very clear, but executing well is not that easy. It actually requires a long-term commitment, and we will need to do the right things and also do things right. We will continue to stick to our benefit, improve ourselves in the face of competition and create greater value. Thank you. .

這些努力得到了正面的回饋。這讓我們對繼續走高品質發展道路充滿信心。我們的策略非常清晰，但執行起來並非易事。這其實需要長期投入，我們需要做正確的事情，也要把事情做好。我們將持續堅守自身優勢，在競爭中不斷提升自我，創造更大的價值。謝謝。

Thanks for your question. Let me address your second question in Temu.

謝謝你的提問。讓我用 Temu 來回答你的第二個問題。

Well, for our global initiative, Temu is currently in a learning stage. Our key focus right now is how we can apply our expertise to create our unique value? Would you not focus position or the financial metrics at the current stage. We hope to leverage our tax background and supply chain know-how to bring quality products at good prices to consumers in various markets globally. And this presents us with both challenges and learning opportunities.

Temu 的全球計畫目前處於學習階段。我們目前的重點是如何運用我們的專業知識來創造獨特的價值？目前階段，您不會關注公司的地位或財務指標嗎？我們希望利用我們的稅務背景和供應鏈專業知識，為全球各個市場的消費者提供價格合理的優質產品。這既給我們帶來了挑戰，也為我們帶來了學習的機會。

Currently, our team is laser focused on understanding and accepting to different cultural preferences, social environment and consumer demand in different markets with the aim of creating more unique value.

目前，我們的團隊專注於理解和接受不同市場的不同文化偏好、社會環境和消費者需求，旨在創造更多獨特的價值。

As we continue to understand and explore the consumer demand from the different markets, we carefully evaluate the investment opportunity and make responsible capital allocation decisions.

隨著我們不斷了解和探索不同市場的消費者需求，我們會仔細評估投資機會並做出負責任的資本配置決策。

Thank you, everybody, for joining us on the conference call today. It's about time. Thank you and have a great day.

感謝各位今天參加我們的電話會議。時間到了。謝謝大家，祝大家有美好的一天。

The conference has now concluded. We do thank you for attending the presentation today. You may now disconnect.

會議現已結束。感謝您參加今天的演講。現在您可以斷開連線了。

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

[本記錄中標記為 [已翻譯] 的部分由現場翻譯人員朗讀。 ]