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，感謝大家的支持，歡迎參加 PDD Holdings, Inc. 2023 年第二季度收益電話會議。 （操作員說明）。我必須告訴你，今天的會議正在錄製。現在我想把今天的會議交給主持人程鵬先生。先生，請繼續。

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.

謝謝你，接線員。大家好，感謝您今天加入我們。我叫程，我將幫助主持財報電話會議。 PDD Holdings 的收益報告已於早些時候發布，可在我們的網站 Investor.pddholdings.com 以及 GlobeNewswire 服務上獲取。

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.

在我們開始之前，我想請您參閱我們在收益新聞稿中的安全港聲明，該聲明適用於本次電話會議，因為我們將做出某些前瞻性聲明。此外，本次電話會議還討論了某些非公認會計準則財務措施。請參閱我們的收益報告，其中包含非公認會計原則措施與公認會計原則措施的調節表。

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.

今天加入我們電話會議的還有我們的董事長兼聯席首席執行官陳雷；趙家珍，我們的執行董事兼聯席首席執行官；劉軍，我們的財務副總裁。雷和家震將對我們上一季度的業績以及我們的戰略重點進行一些總體評價。接下來，Jun 將向我們介紹截至 2023 年 6 月 30 日的第二季度財務業績。

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.

問答環節，雷和家珍會用中文回答問題，我們會幫忙翻譯。請注意，提供的所有翻譯僅供參考。如果原文與翻譯版本有任何差異，應以當地語言的表述為準。現在我很高興向大家介紹我們的董事長兼聯席首席執行官陳雷。雷，請繼續。

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。感謝您參加我們 2023 年第二季度的財報電話會議。我將首先簡要概述我們第二季度的業績。本季度我們共實現收入523億元人民幣，同比增長66%。這反映出消費者對我們的產品和服務越來越信任。在過去的季度中，我們觀察到消費者信心持續改善，導致多個產品類別的消費者需求不斷增加。

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.

我們還積極開展各類促銷活動，刺激消費需求。例如，我們為 6 月 18 日購物節提供有吸引力的促銷和折扣券以鼓勵消費。消費者的反應是積極的。認識到這一趨勢，我們始終致力於將產品與消費者直接聯繫起來，以便他們能夠以有吸引力的價值享受各種優質產品，並獲得極大的服務滿意度。

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.

2023年以來，我們的主線是高質量發展。本季度的結果提供了具體證據，表明我們的戰略已開始取得成果。這讓我們更有信心，我們正走在正確的道路上，我們的投資正在為持續的高質量增長奠定基礎。

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.

研發是實現高質量發展的基石，是創新的命脈。過去12個月，我們的研發支出突破100億元人民幣，二季度研發支出再創新高，體現了我們對未來的投入。我們將繼續加大研發投入，創新是公司未來增長的引擎。

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成長的公司，我們親眼目睹了技術如何通過技術進步來改變和驅動農業實踐，我們優化了供需匹配，幫助農民銷售產品，幫助消費者獲得更新鮮的產品。我們重視農業的關鍵驅動力是我們的信念和創新的社會影響。這激勵我們支持人才培養，促進採用實用且具有成本效益的技術，並將科學研究轉化為切實可行的商業解決方案。

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，我們每年一度的智慧農業大賽一直是推進精準資助的平台。我們與中國農業大學、浙江大學、聯合國糧農組織中國和上海農業科學院等領先農藝機構合作。最新的迭代涉及使用集裝箱等緊湊空間進行垂直融資，有抱負的團隊挑戰自己，想出具有成本效益的方法來發展和營銷高質量的電網。在我們的幫助下，許多團隊已將創新轉化為實時應用程序。

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，我們首屆競賽的一支先鋒團隊部署了 40 個尖端系統，幫助農民將產量提高 30%。我們實現這一目標的同時，還降低了與勞動力、化肥和植物保護相關的間接成本。今年活動的一個團隊正在利用調節中子組合的算法，目的是讓更多人能夠輕鬆使用。

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.

我們的多樣化項目旨在彌合研究和實時應用之間的差距。我們支持創建許多農業科技示範中心。這些卓越中心為我們提供了肥沃的土壤，讓我們能夠通過實踐經驗來燃燒[動態]學習。通過為醫學提供驗證其研究和現實條件的平台，我們設想加快農業的數字化轉型，以造福社會的集體利益。我們還努力幫助推動農業技術的發展，以支持基礎研究。

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.

5月，為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。作為我們百億農業計劃的一部分，這筆捐款設立了一個專門的研究基金，旨在解決農業的關鍵需求。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計劃，重點關註四個關鍵主題，即農業模型化、精準資助、可持續性和健康營養。

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 獨立董事（聽不清）。為了解決這個問題，自 2001 年起長期擔任瓦赫寧根大學教授、現任毒理學系主任的他是食品技術研究領域備受尊敬的專家。未來三年，食品安全方面的專業知識無疑將為我們的農業科技計劃提供巨大支持。有了她的加入，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.

第三次任命不僅增強了我們董事會的專業知識，而且還增加了其多樣性。此外，為了加強我們的全球足跡和運營，我們將設立法律與合規委員會，考慮到每個地區的複雜性和不同要求，建立海外區域、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.

正如我們在後者的 IPO 中所說，PDD 仍然是一個年輕的組織，將繼續適應，努力成為一個成熟的全球機構。在這段旅程中，我們的目標保持不變。我們將繼續引領創新，培養優秀人才，不斷引進優秀人才，引領我們朝著高質量發展的目標邁進。現在我將交給我們的聯席首席執行官賈震，他將詳細介紹我們的質量發展。

[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.

[解讀]謝謝你，雷。大家好。這是趙家珍。二季度，在各項促消費政策的推動下，消費結算改善趨勢明顯。在今年的6月18日促銷活動中，我們加大了支持消費的力度。我們收到了積極的回應，並看到拼多多平台上的消費者需求進一步增加。

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

乘著行業向好態勢，我們積極搶抓機遇，全面擁抱高質量發展。我們的戰略包括以下資產。

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.

一是高質量消費，滿足消費者持續增長的品質需求，努力以更多的節約、更好的服務、升級的消費保障更好地服務消費者。二是優質供給。我們深入工農業生產領域，利用科技能力支撐數字化轉型，為全國和全球市場帶來更多優質產品；三是優質生態系統。

We showed 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.

我們踐行社會責任，進一步提昇平台治理能力，通過百億生態計劃扶持優質商家，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.

我們深知高質量發展需要耐心投入。過去一個季度，我們在回饋消費者、支持優質商家和增強平台生態系統方面的努力取得了一些令人鼓舞的早期成果。我們的業務也取得了不錯的增長。

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.

下面我就向大家介紹一下我和我的團隊在高質量發展戰略下積極落實的一些具體舉措。第一，針對高質量消費，我們正在努力深化更多儲蓄、更好服務，讓大家有更好的體驗。這提高了消費者對我們平台的信任，進而刺激支出。

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，我們繼續推廣消費者喜愛的多種商品。如前所述，今年6月18日促銷期間，我們加大了回饋消費者的力度。促銷活動涵蓋全系列產品類別，包括電子產品、化妝品、生鮮農產品和服裝。這刺激了全品類消費需求。

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. .

除了節省更多費用外，我們還繼續提供更好的服務，從而增加了消費者對我們平台的信任。例如，6月18日期間，我們升級了物流和售後服務，如價格保護、假冒十倍賠償和送貨上門等。這些措施確保消費者買得放心，退貨得放心。我們還與知名保險公司和品牌合作，提供質量保證保險，涵蓋產品描述不准確或產品質量問題等情況。 。

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，我們仍然專注於調整消費者的基本需求，並繼續我們的（聽不清）方法。我們以優惠的價格提供優質的產品和服務，支持消費者潛在的需求新產品類別。隨著我們的平台不斷獲得信任和認可，我們很高興看到越來越多的跨品類品牌開始與拼多多合作，作為接觸消費者的主要渠道。

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.

高質量發展的另一個重要方面是數字經濟與傳統產業共同發展融合，讓更多優質產品進入全國和全球市場。這就是我們所說的優質供應。

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，隨著更多農產品走向市場，拼多多將繼續成為我們追求高質量發展的著力點。創新是提升品質、創造附加值的關鍵。因此，通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大賽和第二屆拼多多種植大賽。通過這一舉措，我們積極參與農業科技創新並支持農業技術應用。我們的願景是通過科技進一步提高農業生產的質量和效率。與此同時，我們正在我們的平台上加大對農業科技產品的支持，以加速我們的研究資金轉化為產品。

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.

為了進一步推動製造業的數字化轉型，利用我們的消費者洞察和技術能力的新工具和新模式將幫助製造商了解不斷變化的消費者需求並提高生產效率。上季度，我們的團隊深入產業帶，開展了一系列直播活動，向消費者展示當地豐富的產品。這有助於消費者切實了解產品並增強他們對網上購物的信任。

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.

我們還與商家在產品設計和營銷等方面進行深入合作，以便他們更好地滿足多樣化的消費者需求。此舉受到不少商家的歡迎。例如，我們最近與一家知名白酒品牌合作。我們一起嘗試了線上加線下的方式，即開設線下快閃店。這種形式導致我們平台的銷量打破了記錄。同時，使品牌能夠有效觸達年輕消費者，獲得有價值的消費者洞察。

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持續互利發展的基礎。

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系統計劃，以支持優質商家和產品。該舉措為中小企業商家和優質商家提供激勵，以升級其服務產品。從而創建一個強大的環境來提高整個生態系統的效率和服務質量。

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

我們還在食品藥品安全、模特保護、直播合規等平台治理領域做出了重大努力。

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

我們希望通過百億生態計劃和平台治理努力，加速平台生態的積極勢頭。

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，我們與主要出版社和圖書品牌合作推出（聽不清）。我們持續投入數億元優惠券，推動網絡正版書市場可持續發展，加強知識產權保護。我們的努力覆蓋了 600 萬份（聽不清），將優質內容直接與消費者聯繫起來。截至目前，已有超過2700家出版社、食品公司和經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.

在高質量發展的征程中，我們始終尋找機會，讓他們承擔更多的社會責任，為社會創造價值。本月早些時候，（聽不清）地區遭遇了強降雨。 （聽不清）3000萬元支持抗洪救災。同時，我們與People Sale合作，發起了專門的救援活動，幫助受災地區的企業減少生產中斷和庫存損壞造成的損失，幫助他們迅速恢復正常運營。

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，為了幫助【多多】的書商，我們設立了專門的圖書銷售渠道，並提供流量支持、0佣金政策等紓困措施，幫助這些商戶減少損失，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，我們的價值創造是與高質量發展的長期戰略相適應的。我們對高質量發展和生態系統的關注，為未來奠定了堅實的基礎，也得到了消費者和商家的即時政策反饋。展望未來，我們將繼續支持優質商家和中小企業，推動數字普惠農業。我們將繼續做正確的事，持續加大重點領域投入，加快推動高質量發展。現在我將把它交給 Jun。她將為您提供我們財務業績的最新信息。

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. .

謝謝你，家珍。大家好。讓我向您介紹一下我們截至2023年6月30日的第二季度的財務業績。從損益表來看，第二季度我們的總收入同比增長66%，達到人民幣523億元。我們的收入增長主要是由消費復甦以及排除高成本發展戰略的早期反饋推動的。 。

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.

本季度在線營銷服務及其他收入為人民幣379億元，較2022年同季度增長50%。本季度交易服務收入為人民幣143億元，較2022年同季度增長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.

繼續討論成本和費用。我們的總收入成本從 2022 年第二季度的 80 億元人民幣增加到本季度的 187 億元人民幣，增長了 135%，主要是由於履行費用和支付處理費用的增加。

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.

按公認會計準則計算，本季度總運營費用從2022 年同季度的148 億元人民幣增加41% 至209 億元人民幣。按非公認會計準則計算，本季度我們的總運營費用從129 億元人民幣增至190 億元人民幣2022 年第二季度。

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.

四季度，我們抓住消費利好機遇，投資家庭、負責任地支撐企業長期高質量發展。本季度我們的非 GAAP 總運營費用佔總收入的百分比為 36%，而去年同期為 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.

調查具體費用項目。本季度我們的非 GAAP 銷售和營銷費用為人民幣 [166] 億元，比去年同期增長 53%。按非公認會計原則計算，本季度我們的銷售和營銷費用佔收入的百分比為 32%，而 2022 年同一季度為 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，我們在6月18日購物節期間以及整個季度加大力度，為消費者提供更多優惠。提升服務質量，更好服務、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GAAP 一般管理費用為3.702 億元人民幣，而2022 年同一季度為1.647 億元人民幣。本季度我們的研發費用（非GAAP 基礎上）為21 億元人民幣，按GAAP 基礎上為27 億元人民幣，設定了新高。

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.

研發是平台生態高質量發展的根本。我們將不斷增強研發能力，了解消費者的搬家需求，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.

按公認會計準則計算，本季度營業利潤為人民幣 127 億元，而去年同期為人民幣 87 億元。非 GAAP 營業利潤為人民幣 146 億元，去年同期為人民幣 105 億元。本季度非 GAAP 營業利潤率為 28%，而去年同期為 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.

本季度歸屬於普通股股東的淨利潤為人民幣131億元，而去年同期為人民幣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.

每份美國存託憑證基本盈利為人民幣9.64 元，每份美國存託憑證盈利和稀釋後每份美國存託憑證盈利為人民幣9 元，而2022 年同一季度每份美國存託憑證基本盈利為人民幣7.06 元，稀釋後每份美國存託憑證盈利為人民幣6.22 元。股東權益為人民幣153億元，而去年同期為人民幣108億元。非 GAAP 稀釋後每股美國存託憑證收益為人民幣 10.47 元，而 2022 年第二季度為人民幣 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.

綜上所述，一個季度，我們取得了較好的業績，高質量發展初顯成效。展望未來，我們將繼續以決心和耐心投入，實施高質量發展戰略。我們還通過保持更多的儲蓄和更好的服務能力來積極應對競爭。

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.

這樣就完成了損益表。現在讓我繼續討論現金流。經營活動產生的現金流量淨額為人民幣234億元，而去年同期為人民幣194億元。截至2023年6月30日，我們擁有現金、現金等價物和短期投資人民幣1,795億元。謝謝。我準備好的發言到此結束。

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，雷家震、君將在線回答分析師的提問。我們最多可以回答2個分析師的問題，雷和家珍會用中文回答問題，我們會幫助翻譯言論以方便參考。接線員，我們現在可以在線提問。 。

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

（操作員說明） 您的第一個問題將由美國銀行的 Joyce Ju 提出。

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季度以來啟動了新的長期戰略，聚焦高質量增長。管理層能否詳細說明這一戰略的實施情況？採取了哪些業務衡量和行動以及該策略將如何影響公司的近期和長期財務前景。 。

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關鍵戰略。而且也是平台的核心品類，這個戰略和農業如何契合公司高質量發展的新戰略。將對公司的運營和財務產生什麼影響？公司將解決您在相應領域的投資預算和步伐。

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

【解說】這是家珍。我就高質量發展戰略回答你的問題。

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 .

所以這幾年我們逐漸從快速增長轉向穩健發展，從營銷驅動轉向研發驅動。今年上半年以來，我們全面實施高質量發展戰略。這有助於我們進入新的發展階段，即質量優先。

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、駕駛生態建設等方面還有很多需要改進的地方。增強自身能力，擁抱高質量發展，是進一步深化價值的必由之路。

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.

正如我前面提到的，實施這一戰略主要涉及三個關鍵領域。一是高質量消費。我們始終以消費者為中心。我們努力增強提供更多儲蓄和更好服務的能力。為消費者提供360度的良好體驗，滿足他們多樣化的需求。

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.

二是優質供給。我們利用我們的技術專業知識，深入供應鏈。我們推動製造業和農業領域的數字化包容，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.

三是優質生態系統。我們通過百億生態計劃，積極支持優質商家、中小企業和醫藥商家。我們還加強了整體平台治理。

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.

而在可以預見的未來，我和雷軍將帶領我們的團隊共同在這些領域持續、耐心地投入。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，鞏固平台生態的良好趨勢，將高質量發展戰略落實到運營的每一個細節中。

[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.

[解讀]這是雷。我將回答你關於農業戰略的問題。拼多多起家於農業，我們的發展與農業供應鏈有著深厚的聯繫。我們正在積極利用我們的稅務背景來促進農業的數字包容性。

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.

農產品線上滲透率仍然較低。農業供應鏈還有很大的優化空間，我們可以利用我們的科技能力來創造我們獨特的價值，促進農業的發展。展望未來，農業仍將是我們的重點。

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.

最近，我們繼續努力將工業界和學術界結合起來。我們舉辦了一些廣告競賽，例如智慧農業大賽、拼多多作物種植大賽和全球農業創新大賽。我們很高興看到我們對研究經費商業化的貢獻。

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.

正如我所提到的，我們很高興歡迎 Ivonne Rietjens 教授作為獨立董事加入我們的董事會。她自 2001 年起在瓦赫寧根大學擔任了 10 年的提供者，目前擔任毒理學系主任。荷蘭是農業強國，瓦赫寧根大學是全球知名的農藝研究機構。

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 在食品安全方面擁有數十年的經驗。她將為我們的董事會帶來食品技術和尖端農業技術研究趨勢方面的深厚專業知識。隨著伊馮娜的加入，我們期待著加深對農業現代化的貢獻。謝謝。

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

接線員，我們可以轉到線路上的下一位分析師。

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

今天我們的下一個問題將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。您的總收入增長了 66%，在線營銷服務增長了 50%。您認為是什麼促成了上一季度的這一亮點？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，我們注意到你們的利潤率同比略有下降。您將成果投入到哪些關鍵領域？隨著行業競爭的進一步加劇，我們應該如何理解你們的利潤率波動。

[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.

[解讀]我是家珍，我先回答關於增長率的問題。簡而言之，本季度的增長可歸因於兩個因素。首先是積極的行業趨勢。二是高質量發展戰略早日得到積極反饋。

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.

我們的業務與整個消費市場緊密相連。我們注意到市場趨勢持續改善，消費者見證購物的數量也在增加。我們認為這與各項促消費支持措施的出台和落實密不可分。

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.

第二季度，我們抓住機遇，提升能力，獲得更多的節約和更好的服務。我們擴大了有價值的貨幣產品選擇。我們堅定不移地實施高質量發展戰略。比如6月18日活動期間，我們加大了促銷力度，還投入了數十億的優惠券回饋消費者。這有助於刺激對所有商品類別的需求。除了這次促銷活動之外，我們還貫徹了（聽不清）6 月 18 日的理念，不間斷地為消費者提供優惠。

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，這反過來又為商家帶來了更多的銷售機會，同時我們對優質商家的支持鼓勵他們投入資源，與我們合作，共同服務好客戶。因此，我們實現了可觀的收入增長。

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，高質量發展是我們的長期戰略。我們不會優先考慮單個季度的增長。我們認為，如果我們能夠通過加強服務和更好的節省來更好地服務多樣化的消費者需求，如果我們能夠構建強大的生態系統，我認為我們的平台自然會實現可持續的高質量發展。

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。讓我回答你的第二個問題。嗯，首先，我們仍處於開發階段。盈利本身並不是我們的首要任務。正如家珍剛才提到的，這是我們創造價值的自然結果。所以說，第二季度我們看到了不同的財務業績，體現了我們高質量發展戰略的初步成果。在實施高質量發展戰略的過程中，我們正在加大對很多重點投資領域的投資力度。比如回饋消費者，支持中小企業商家投資文化、製造供應鏈以及百億生態系統倡議到很多領域。這些努力反映在我們的財務業績中。

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，隨著競爭的進一步加劇，我們將積極應對，增強董事會節省和更好的服務核心能力，回饋消費者和商家。

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.

我現在要講的是高質量發展。當我們看到創造長期價值的機會時，我們將繼續審慎理財，堅定投資。謝謝。

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

接線員，我想我們還有時間再聘請 1 位分析師。

Our next question will come from Ellie Jiang of Macquarie.

我們的下一個問題將來自麥格理的 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. .

讓我快速翻譯一下自己。我的第一個問題是關於比賽的。因此，我們看到許多競爭對手更加重視促銷和低價類別。此外，我們還看到來自同行的相當強勁的活躍買家和商家數據。管理層如何評估對我們運營的影響？我們是否感受到更大的壓力，這可能會影響我們未來的戰略。 。

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。我們看到了Temu，最近一段時間緊隨Temu。我們知道這仍處於早期階段，財務貢獻可能有限。但我想知道管理層是否可以與我們分享Temu的最新進展並談論總體策略，任何財務貢獻管理層都可以分享。

[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.

【解讀】我是家珍，謝謝提問，我先分享一些關於比賽的想法。我們注意到行業的變化。隨著消費覆蓋和消費者表現出擱淺的需求，我們看到同行開始接受補貼也就不足為奇了。競爭確實越來越激烈。我們相信，以消費者為中心的目標驅動的良性競爭可以使整個行業受益，這不僅包括消費者，也包括平台。

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.

電子商務行業總是在快速發展。對於我們來說，適應快速變化的關鍵不是關注競爭對手在做什麼。相反，它是要始終專注於消費者需求並培養我們自己的技能，並直接且短暫地面對競爭。我們把競爭壓力轉化為增強核心能力的動力，著力實施高質量發展戰略。

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.

為客戶提供優質服務是我們創造價值的核心。我們正在深化提供更多服務的能力，更多節省對我們來說仍然非常重要。例如，上個季度，我們投資了 10 億美元進行促銷，以覆蓋所有產品類別，並確保消費者能夠以實惠的價格獲得優質產品。而積極的消費者體驗需要全面的努力。這不僅僅是價格的問題，我們繼續專注於研發，了解並適應消費者不斷變化的需求，幫助消費者安心購物。我們還非常努力提供更好的服務，例如昇級物流和售後支持。

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.

而優質的貨源就是為商家提供物超所值的產品。我們正在推動農業和製造業的數字化轉型。我們的團隊活躍在現場和工廠，幫助農民和中小企業製造商標準化並改進設計、生產和物流。

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.

通過我們的百億生態系統計劃，我們還為優質商家和產品提供支持。這激勵他們提高產品和服務質量。我認為這反過來又促進了我們平台生態的健康高質量發展。

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. .

我們從這些努力中得到了積極的反饋。這讓我們有信心繼續走高質量發展道路。我們的戰略非常非常明確，但執行得好卻並不那麼容易。這實際上需要一個長期的承諾，我們需要做正確的事，也要做正確的事。我們將繼續堅守效益，在競爭中提升自我，創造更大價值。謝謝。 。

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

謝謝你的提問。讓我在 Temu 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.

嗯，對於我們的全球計劃來說，Temu 目前正處於學習階段。我們現在的重點是如何運用我們的專業知識來創造我們獨特的價值？您現階段是否不關注倉位或財務指標？我們希望利用我們的稅務背景和供應鏈專業知識，以優惠的價格為全球各個市場的消費者提供優質的產品。這既給我們帶來了挑戰，也給我們帶來了學習機會。

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.

感謝大家參加今天的電話會議。是時候了。謝謝您，祝您有美好的一天。

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

會議現已結束。我們非常感謝您參加今天的演講。您現在可以斷開連接。