拼多多 (PDD) 2023 Q4 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to PDD Holdings, Inc. Fourth Quarter and Fiscal Year 2023 Earnings Conference Call. (Operator Instructions).

女士們、先生們，感謝大家的支持，歡迎參加 PDD Holdings, Inc. 第四季和 2023 財年收益電話會議。 （操作員說明）。

Please be advised that today's conference is being recorded. I would now like to hand the conference over to your host today. Sir, please go ahead.

請注意，今天的會議正在錄製中。我現在想把今天的會議交給東道主。先生，請繼續。

Thank you, operator. Hello, everyone, and thank you for joining us today. PDD Holdings earnings release was distributed earlier, and is available on our website at investor.pddholdings.com as well as through the GlobeNewswire services.

謝謝你，接線生。大家好，感謝您今天加入我們。 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 服務上取得。

Before we begin, we would like to refer you to our safe harbor statement in the earnings press release, which applies to this call as well. 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，我們想請您參閱收益新聞稿中的安全港聲明，該聲明也適用於本次電話會議。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 Mr. Chen Lei, our Chairman and Chief Executive Officer; Mr. Zhao Jiazhen, our Executive Director and Co-Chief Executive Officer; as well as Ms. 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 fourth quarter and fiscal year ended December 31, 2023.

今天加入我們電話會議的還有我們的董事長兼執行長陳雷先生；趙家楨先生，我們的執行董事兼聯合執行長；以及我們的財務副總裁劉軍女士。雷和家震將對我們上一季的業績以及我們的策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 12 月 31 日的第四季和財年的財務表現。

During the Q&A session, Lei and Jiazhen will answer questions in Chinese and will help translate. Please kindly note that English translation is for reference only. In case of a discrepancy, statements in the original 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，雷和家珍將用中文回答問題並幫忙翻譯。請注意，英文翻譯僅供參考。如有差異，以原文為準。現在我很高興向大家介紹我們的董事長兼聯席執行長陳雷。雷，請繼續。

Hello, everyone. Thank you for joining our earnings call for the fourth quarter and the fiscal year of 2023. 2023 was an important year for PDD Holding. We began a journey dedicated to high-quality development. Aligned with our strategy, we rolled out a series of initiatives to empower businesses and enhance consumer value. This effort has resonated well with our users and merchants learning their positive feedback and support. Driven by a rebounding consumer market, our total revenue in the fourth quarter was RMB 88.9 billion which represents 123% year-on-year increase. GAAP net income for this quarter was RMB 23.3 billion.

大家好。感謝您參加我們第四季和 2023 財年的財報電話會議。2023 年對於拼多多控股來說是重要的一年。我們開啟了高品質發展旅程。根據我們的策略，我們推出了一系列舉措，為企業賦能並提升消費者價值。這項努力得到了我們的用戶和商家的正面回饋和支持，產生了良好的共鳴。受消費市場回溫帶動，第四季總營收889億元，年增123%。本季 GAAP 淨利潤為 233 億元。

Over the past year, our revenue was RMB 247.6 billion, which represents a 90% year-on-year increase. In 2023, amid a positive consumer sentiment, our platform saw a healthy resurgence in demand. In the fourth quarter, we focused on improving consumer well-being by making high core higher-quality products more accessible. This was achieved through a series of events such as a Double 11 and Double 12 shopping festival. Our goal has always been clear; to unlock unrealized consumer potential and empower individuals to retrieve higher quality of life.

過去一年，我們營收2,476億元，年增90%。 2023 年，在正面的消費者情緒下，我們的平台看到了需求的健康復甦。第四季度，我們致力於透過讓高核心、高品質的產品更容易獲得來改善消費者的福祉。這是透過雙11、雙12購物節等一系列活動實現的。我們的目標始終明確；釋放未實現的消費者潛力，讓個人重獲更高的生活品質。

As a result of these efforts, we have seen sustained growth in consumer engagement in our platform throughout the fourth quarter. In 2024, we will continue to ramp up our support for high-quality supply and enhance our ability to deliver good value and excellent service.

由於這些努力，我們看到整個第四季消費者對我們平台的參與度持續成長。 2024年，我們將持續加強對優質供應的支持力度，並增強提供優質價值和優質服務的能力。

We will refine our supply chain insight and the technology capabilities to help manufacturers reduce costs, increase efficiency and develop more product and resonate deeply with consumers. Our support for a new generation of farmers and merchants skilled in both agriculture and e-commerce is unwavering. This is part of our ongoing effort to boost local employment and increase farmer's income.

我們將完善供應鏈洞察和技術能力，幫助製造商降低成本、提高效率、開發更多產品並與消費者產生深度共鳴。我們對精通農業和電子商務的新一代農民和商人的支持堅定不移。這是我們持續促進當地就業、增加農民收入的一部分。

Through our RMB 10 billion ecosystem initiative, we grow alongside our high-quality merchants, brands and small to medium-size businesses to build a more sustainable ecosystem. R&D is at the core of our growth as a technology company. And last year, we continue to invest in technology innovation with R&D expense reaching RMB 11 billion.

透過百億生態圈計劃，我們與優質商家、品牌和中小企業共同成長，打造更永續的生態圈。研發是我們作為一家科技公司發展的核心。去年，我們持續投入技術創新，研發費用達110億元。

This is the second consecutive year that our R&D expense has surpassed RMB 10 billion. In the fourth quarter, R&D expenses grew by 19% reaching RMB 2.9 billion. This year, we continue to channel investments into new drivers of high-quality development. We are dedicated to advancing the role of cutting-edge technology in agriculture and in manufacturing.

這是我們的研發費用連續第二年突破100億元。第四季研發費用成長19%，達到29億元。今年，我們持續把投資注入高品質發展新動能。我們致力於提升尖端技術在農業和製造業中的作用。

In the fourth quarter, we reinforced our agriculture strategy through supporting projects such as the agricultural cloud initiative and Pinduoduo Academy growing competition. We hope to encourage the development of more resilient digital agriculture region to further revitalize rural community. Taking the Pinduoduo Academy growing competition as an example, it provides a platform for college students to showcase their agricultural innovation. Pinduoduo has been an active supporter for this event for the past year running and we also pay close attention towards development of agriculture products driven by technology for instance, Pinduoduo offer support for specialty agriculture products through initiatives such as 0 commission and RMB 10 billion program for agriculture producers such as orange and green food sector.

第四季度，我們透過支持農業雲、拼多多學院等計畫強化農業策略。我們希望鼓勵發展更具韌性的數位農業地區，進一步振興農村社區。以拼多多學院成長比賽為例，它為大學生提供了一個展示農業創新的平台。拼多多連續一年積極支持這項活動，我們也非常關注科技驅動農產品的發展，比如拼多多通過零佣金、百億計劃等舉措對特色農產品進行支持。農業生產者，如橙色和綠色食品部門。

We formed a strategic partnership with certain producers to broaden their market reach and provide continuous platform support. We also actively fulfill our social responsibility. In December last year, as earthquake struck Gansu Province, we promptly donated RMB 20 million. The donation will aid in purchase of reduced prices and post-disaster reconstruction.

我們與某些生產商建立了策略合作夥伴關係，以擴大他們的市場範圍並提供持續的平台支援。我們也積極履行社會責任。去年12月，甘肅發生地震，我們及時捐款2,000萬元。這筆捐款將用於幫助降價採購和災後重建。

We set ourselves accountable for making positive contributions to our communities. As for our global operations, since launching in September 2022, we have expanded into 5 countries, 50 countries and regions. As a new comer, we are excited to learn from our diverse global consumers and markets as we explore technology innovation. With our supply chain expertise, we are dedicated to helping each consumer live a more fruitfully (inaudible) and we remain committed to this mission.

我們有責任為我們的社區做出積極貢獻。至於我們的全球業務，自2022年9月啟動以來，我們已擴展到5個國家、50個國家和地區。作為新來者，我們很高興在探索技術創新時向多元化的全球消費者和市場學習。憑藉我們的供應鏈專業知識，我們致力於幫助每個消費者生活得更有成效（聽不清楚），並且我們將繼續致力於這項使命。

2023 remarks the eighth year since the founding of PDD Holdings. Since our inception, we have always stayed closely to our focus on e-commerce. We have always put consumers first and embrace innovation with an open mind. Throughout this journey, our team has experienced remarkable growth and development, and we have seen ambitious young leaders emerge, ready to take on greater responsibilities. Our companies drive on creativity and energy of the younger generation, giving us the confidence to create unique value for our growing consumer base.

2023年是拼多多控股成立第八年。自成立以來，我們始終專注於電子商務。我們始終把消費者放在第一位，以開放的心態擁抱創新。在這段旅程中，我們的團隊經歷了顯著的成長和發展，我們看到雄心勃勃的年輕領導者湧現，準備承擔更大的責任。我們的公司激發年輕一代的創造力和活力，讓我們有信心為不斷成長的消費者群創造獨特的價值。

And now I will hand it over to our Co-CEO, Zhao Jiazhen, to further talk about our high-quality development strategy.

下面我就請我們的聯席CEO趙家臻進一步談談我們的高品質發展策略。

[Interpreted] Thank you, Lei, and hello, everyone. This is Zhao Jiazhen. Thank you all for joining the fourth quarter and full year '23 earnings call. 2023 is a year of recovery guided by the King principles of recovery, benefit of an innovation, we proactively responded to consumption recovery policies by bringing together the supply of quality products and the demand of consumption upgrade. We played a part in releasing consumption potential. We achieved decent growth in 2023, which we believe is the combined result of our effective promotional activities and the overall recovery of consumption.

[解讀]謝謝雷老師，大家好。這是趙家珍。感謝大家參加 23 年第四季和全年財報電話會議。 2023年是復甦之年，我們以復甦為王、創新為王，積極響應消費復甦政策，匯聚優質產品供給與消費升級需求。發揮消費潛能釋放作用。 2023年我們取得了不錯的成長，我們認為這是有效的促銷活動和消費整體復甦的綜合結果。

Pinduoduo is built to serve the need of a vast and diverse consumer base. In recent years, through interactions with our users, we are observing a growing demand of consumption upgrades. But at the same time, we also noticed that our consumers are looking for ways to upgrade in a more rational manner. Consumption upgrade is not about high consumption or overspending. It is more about offering our users better products and services at more accessible prices to bring more savings.

拼多多的建立是為了滿足廣大且多樣化的消費者群體的需求。近年來，透過與用戶的互動，我們看到消費升級的需求不斷增長。但同時我們也注意到，我們的消費者正在尋找更理性的升級方式。消費升級不是高消費、超支。更重要的是以更實惠的價格為我們的用戶提供更好的產品和服務，從而帶來更多的節省。

Being this trend, we paid special attention to broadening selection of quality products sold on our platform and focused on promotional efforts on premium consumer goods, such as trending national brands, imported goods and high-quality products.

順應此一趨勢，我們特別注重拓寬平台優質商品的選擇，並專注於對國家品牌、進口商品、精品等優質消費品進行促銷。

For example, through our RMB 10 billion program, we are making it increasingly easy to enjoy imported products, and we are also investing firmly to support national brands. During the Singles Day last year, we helped our merchants sell more and our user save more. Our Flash sale channel acted as a growth engine for over 100,000 SME merchants. And by the end of the event, more than 40 product categories, solid sales doubled. These included agricultural products, national branded products and quality imported goods. The number of merchants selling agriculture products and national branded goods that benefited from our RMB 10 billion program more than doubled. In our total growth, worldwide channel dedicated to imported products, 21 out of the top 100 brands achieved a year-on-year growth of over 300%. 59 items recorded daily sales of over RMB 1 million during Singles Day.

例如，透過我們的百億計劃，我們讓進口產品變得越來越容易享受，我們也堅定地投資支持國家品牌。去年雙十一期間，我們幫助我們的商家銷售更多，我們的用戶節省更多。我們的限時搶購通路成為超過 10 萬家中小企業商家的成長引擎。而到活動結束，超過40個產品品類，銷售量實實在在的翻了一番。其中包括農產品、國家品牌產品和優質進口商品。受益百億計畫的農產品和民族品牌商品商戶數量增加一倍以上。在我們專注於進口產品的全球通路的總成長中，前100名品牌中有21個實現了同比增長超過300%。 「雙11」日銷售額突破100萬元的單品有59個。

These numbers also show that the growth of our platform is the result of the value we create for our consumers and merchants. 2024 will be a year of consumption promotion as always, guided by the principle of Consumer First. We will continue to improve the variety of products and services offered on our platform, deepen our value for money mind share, upgrade our shopping experience and enhance user activity. And as a result, we will be able to offer more visibility and sales opportunities for quality merchants, thereby strengthening the positive feedback on our platform.

這些數字也表明，我們平台的成長是我們為消費者和商家創造價值的結果。 2024年將一如既往地是促進消費的一年，我們將堅持消費者至上的原則。我們將持續完善平台上提供的產品與服務種類，深化物超所值的心智分享，升級購物體驗，增強使用者活躍度。因此，我們將能夠為優質商家提供更多的知名度和銷售機會，從而加強我們平台上的正面回饋。

2023 proved to be a pivotal year for us as we embark on the journey towards high-quality development. And 2024 will be another critical year to implement this strategy to every part of our operations. We will step up our investments in the 3 key areas of high quality consumption, supply and platform ecosystem to further optimize our capabilities in offering more savings and better services.

2023年是我們開啟高品質發展旅程的關鍵一年。 2024 年將是將該策略落實到我們營運各環節的另一個關鍵一年。我們將增加對優質消費、優質供給、平台生態三大重點領域的投入，進一步優化節省成本、提供優質服務的能力。

In terms of high-quality consumption, we will continue to put ourselves in consumers' truths and adjust our product offerings following closely the changes in consumer demand with tailored promotional events, featuring holidays, seasons and special product categories, we will make it easier for consumers to fulfill their demand for high-quality products at attractive prices.

在高品質消費方面，我們將繼續站在消費者的立場上，緊跟消費者需求的變化，調整產品結構，量身訂製假日、季節、特色品類的促銷活動，讓消費者更容易買到優質的產品。消費者以有吸引力的價格滿足他們對高品質產品的需求。

In addition to more savings, we also continue to upgrade our services. We have rolled out a series of initiatives that benefit consumers, strengthen consumer protection and further improve the shopping experience for remote areas and on the privileged groups.

除了更多的節省之外，我們還不斷升級我們的服務。我們推出了一系列惠及消費者的舉措，加強消費者保護，進一步改善偏遠地區和特權族群的購物體驗。

In terms of high-quality supply, since Q4, we have been allocating platform resources such as traffic support and coupons to help manufacturing brands expand their inflows through a series of promotional activities such as dedicated live streaming sessions and then the national goods festival, our merchants made great progress on our platform.

在優質供給方面，從第四季度開始，我們就透過流量支援、優惠券等平台資源的配置，透過直播專場、國貨節等一系列促銷活動，幫助製造業品牌擴大流入。商家在我們的平台上取得了長足的進步。

The rise of national brands to industry-leading positions requires the joint efforts from both the brands and our platform. This year, in partnership with new and established national brands, we will continue to explore new market opportunities and bring to our consumers better products and a high-quality shopping experience.

民族品牌的崛起需要品牌和平台的共同努力。今年，我們將與新舊民族品牌合作，持續開拓新的市場機會，為消費者帶來更好的產品和高品質的購物體驗。

Agriculture is the foundation of Pinduoduo as the largest agriculture platform in China. In Q4, we continued our support for the Pinduoduo Academy growing competition. We also provided ongoing traffic support and other platform resources for agritech enabled products backed by participating teams. By doing so, our goal is to promote a real-world application of research findings and to accelerate the improvement in farming productivity.

農業是拼多多作為中國最大農業平台的立身之本。第四季度，我們繼續支持拼多多學院成長競賽。我們也為參與團隊支援的農業科技產品提供持續的流量支援和其他平台資源。透過這樣做，我們的目標是促進研究成果在現實世界中的應用，並加速農業生產力的提升。

Last year, our agricultural cloud initiative went into production regions in Shaanxi, Sichuan, Shanxi, Yunnan, Hubei, Fujian, Shandong and Jiangsu bringing e-commerce training and up one-on-one consultation to local agriculture merchants. This year, we will increase our investments in agriculture 2 projects such as the cloud agricultural cloud initiative and a smart agriculture competition. To continue to bring digitization solutions to local producers to improve the resilience and the competitiveness of the local supply chain, thereby supporting rural revitalization and increasing farmers' income.

去年，我們的農業雲計畫深入陝西、四川、山西、雲南、湖北、福建、山東、江蘇等產區，為當地農商提供電商培訓和一對一諮詢。今年我們將加大對雲端農業雲倡議、智慧農業比賽等農業2個計畫的投入。持續為當地生產者帶來數位化解決方案，提高當地供應鏈的韌性和競爭力，從而支持鄉村振興和農民增收。

Building a high-quality platform ecosystem will remain our top priority this year. Through the RMB 10 billion ecosystem initiative and platform governance policies, we will continue to foster an environment that encourages high-quality supply and services, advancing a green, healthy and modern platform ecosystem.

打造優質平台生態仍將是我們今年的首要任務。我們將透過百億生態建設和平台治理政策，持續營造優質供應和優質服務的環境，推動綠色、健康、現代化的平台生態建設。

Now let me hand over to Jun, she will provide you with an update on our financial performance.

現在讓我把時間交給 Jun，她將為您提供我們財務表現的最新情況。

Thank you, Jiazhen. Hello, everyone. Now let me walk you through our financial performance in the fourth quarter and fiscal year ended December 31, 2023. In terms of income statement in Q4, our total revenues increased 123% year-over-year to RMB 88.9 billion and 90% year-over-year to RMB 247.6 billion for full year 2023. This was mainly driven by an increase in revenues from online marketing services and the transaction services.

謝謝你，家珍。大家好。現在讓我向您介紹我們第四季度和截至2023年12月31日的財年的財務業績。就第四季度的損益表而言，我們的總收入同比增長123％至人民幣889億元，年增90％ 2023年全年同比增至人民幣2,476億元。這主要是由於線上行銷服務和交易服務收入的增長所致。

Revenues from online marketing services and others were RMB 48.7 billion this quarter up 57% compared to the same period of 2022. Our transaction services revenue this quarter were RMB 40.2 billion, up 357% versus the same period of 2022.

本季網路行銷服務及其他營收為 487 億元，較 2022 年同期成長 57%。本季交易服務營收為 402 億元，較 2022 年同期成長 357%。

Moving on to costs and expenses. Our total cost of revenues increased 293% from RMB 8.9 billion in Q4 2022 to RMB 35.1 billion this quarter. For the full year, our total coal ship revenues increased 192% to RMB 91.7 billion, mainly due to increased fulfillment fees, payment processing fees, maintenance cost and call center expenses.

繼續討論成本和費用。我們的總收入成本從 2022 年第四季的 89 億元增加到本季的 351 億元人民幣，成長了 293%。全年，我們的煤炭船總收入增加 192% 至 917 億元，主要由於履行費用、支付處理費用、維護成本和呼叫中心費用增加。

On a GAAP basis total operating expense for this quarter increased 44% to RMB 31.4 billion from RMB 21.8 billion in the same quarter of 2022. On a non-GAAP basis, our total operating expenses increased to RMB 29.3 billion this quarter from RMB 19.3 billion in Q4 2022.

以 GAAP 計算，本季的總營運費用從 2022 年同季的 218 億元人民幣增至 314 億元人民幣。以非 GAAP 計算，本季的總營運費用從 193 億元增至 293 億元人民幣2022年第四季。

During the fourth quarter, we continue to focus on key areas critical to the high-quality development of our platform, such as investing in our more savings (inaudible) our brands and our R&D capabilities.

第四季度，我們繼續專注於對平台高品質發展至關重要的關鍵領域，例如投資於我們的品牌和研發能力。

Our total non-GAAP operating expenses as a percentage of total revenues was 33% in Q4 compared to 48% same quarter 2022. For full year 2023, total non-GAAP operating expenses were RMB 90.3 billion up from RMB 61 billion in 2022. Looking into specific expense items. Our non-GAAP sales and marketing expenses this quarter were RMB 26.2 billion, up 53% versus the same quarter of 2022. During Q4, we stepped up our investment in series of year-end promotion wins to give up -- to give back to consumers and increase in advertising to promote our brands.

我們第四季的非GAAP 營運支出總額佔總收入的比例為33%，而2022 年同季為48%。2023 年全年，非GAAP 營運支出總額為903 億元人民幣，高於2022 年的610億元人民幣。計入具體費用項目。本季我們的非 GAAP 銷售和行銷費用為 262 億元人民幣，較 2022 年同季度增長 53%。第四季度，我們加大了對一系列年終促銷勝利的投資力度，以回饋消費者並增加廣告來宣傳我們的品牌。

On a non-GAAP basis, our sales and marketing expenses as a percentage of our revenue this quarter was 30% versus 43% for the same quarter in 2022. For full year, non-GAAP sales and marketing expenses increased from RMB 52.2 billion to RMB 79.8 billion in 2023. Our non-GAAP G&A expenses were RMB 674.5 million in Q4 versus RMB 360.8 million in the second quarter of 2022.

以非 GAAP 計算，本季我們的銷售和行銷費用佔收入的百分比為 30%，而 2022 年同季為 43%。全年，非 GAAP 銷售和行銷費用從 522 億元增加到2023 年 798億元人民幣。第四季的非GAAP 一般管理費用為6.745 億元人民幣，而2022 年第二季為3.608 億元。

Our annual non-GAAP G&A expenses were RMB 1.8 billion, in 2023 versus RMB 1 billion last year. Our research and development expenses were RMB 2.4 billion in the fourth quarter on a non-GAAP basis, and RMB 2.9 billion on a GAAP basis. For full year 2023, our annual GAAP R&D expenses surpassed RMB 10 billion for the second consecutive year.

2023 年，我們的年度非 GAAP 一般管理費用為 18 億元人民幣，而去年為 10 億元。以非美國通用會計準則計算，第四季我們的研發費用為 24 億元，以美國通用會計準則計算，我們的研發費用為 29 億元。 2023年全年，我們的年度GAAP研發費用連續第二年超過100億元。

Technology is at the core of everything we do. We will continue to build on our R&D capabilities to promote type adoption in agriculture and manufacturing sectors to improve supply chain efficiency, an intent of our consumers' growing selection of quality products at attractive prices.

科技是我們所做一切的核心。我們將繼續加強我們的研發能力，促進農業和製造業的類型採用，以提高供應鏈效率，這是我們的消費者越來越多地選擇價格有吸引力的優質產品的意圖。

On a GAAP basis, operating profit for the quarter was RMB 22.4 billion versus RMB 9.1 billion in the same quarter 2022. Non-GAAP operating profit was RMB 24.6 billion versus RMB 11.6 billion in the same quarter 2022. Non-GAAP operating profit margin was 28% this quarter compared with 29% for the same quarter 2022. For the full year, nonoperating profit increased from RMB 38.1 billion to RMB 65.8 billion in 2023.

以GAAP 計算，本季營業利潤為224 億元人民幣，而2022 年同季為91 億元人民幣。非GAAP 營業利潤為246 億元人民幣，2022 年同季為116 億元人民幣。非GAAP 營業利潤率為本季成長 28%，而 2022 年同季成長 29%。全年營業外利潤從 381 億元增加到 2023 年的 658 億元。

Net income attributable to ordinary shareholders was RMB 23.3 billion for the quarter and RMB 60 billion for the full year. In the fourth quarter, base earnings per ADS was RMB 17 and diluted earnings per ADS was RMB 15.83 versus base earnings per ADS of RMB 7.42 and diluted earnings per ADS of RMB 6.52 in the same quarter of 2022.

本季歸屬於普通股股東的淨利為人民幣233億元，全年為人民幣600億元。第四季，每股美國存託股基本收益為人民幣17元，稀釋後每股美國存託股收益為人民幣15.83元，而2022年同季度每股美國存託股基本收益為人民幣7.42元，稀釋後每股美國存託股收益為人民幣6.52元。

Non-GAAP net income attributable to ordinary shareholders was RMB 25.5 billion for the quarter and RMB 67.9 billion for the full year. In the fourth quarter, non-GAAP diluted earnings per ADS was RMB 17.32 versus RMB 8.34 in the same quarter of 2022. As Lei mentioned, 2023 is the first year on our part towards high-quality development, and we're encouraged by the early results. Looking ahead, while we are excited about the new journey, there are challenges and uncertainties along the way. And we need to be prepared to invest decisively for the long-term value of our platforms.

本季非美國通用會計準則歸屬於普通股股東的淨利為人民幣 255 億元，全年為 679 億元。第四季度，非美國通用會計準則攤薄後每股美國存託憑證收益為人民幣17.32 元，而2022 年同季度為人民幣8.34 元。正如雷軍所提到的，2023 年是我們邁向高品質發展的元年，我們對早期結果。展望未來，我們在對新旅程感到興奮的同時，也面臨挑戰和不確定性。我們需要做好果斷投資的準備，以實現我們平台的長期價值。

Our financial results may continue to fluctuate and past performance may not serve as a benchmark for future quarters. That completes the income statement. Now let me move on to cash flow. Our net cash flow generated from operating activities was RMB 36.9 billion in Q4 and RMB 94.2 billion for the full year of 2023 compared with RMB 26 billion in the same quarter of 2022 and RMB 48.5 billion in 2022. As of December 31, 2023, the company had RMB 217.2 billion in cash, cash equivalents and short-term investments. Thank you. This concludes my prepared remarks.

我們的財務表現可能會持續波動，過去的業績可能無法作為未來幾季的基準。這樣就完成損益表了。現在讓我繼續討論現金流。我們第四季經營活動產生的現金流量淨額為人民幣369 億元，2023 年全年為人民幣942 億元，而2022 年同季為人民幣260 億元，2022 年為人民幣485 億元。截至2023 年12 月31 日，公司擁有現金、現金等價物及短期投資2,172億元。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. We could take a maximum of 2 questions from each analyst. Lei and Jiazhen will answer in Chinese and will help translate for convenience purposes. Operator, we are open for questions.

謝謝Jun。接下來我們進入問答環節。今天的問答環節，雷家震、Jun將回答分析師的提問。我們最多可以向每位分析師提出 2 個問題。雷和家珍會用中文回答，並會幫忙翻譯以方便起見。接線員，我們歡迎提問。

(Operator Instructions) Your first question comes from Joyce Ju with Bank of America.

（操作員指示） 您的第一個問題來自美國銀行的 Joyce Ju。

I have 2 questions today. Firstly, as management mentioned in the opening remarks, 2023 was a very important year for PDD from the strategic perspective. Looking back at the fourth quarter and the full year 2023, could the management share how you would evaluate your execution of the past year strategies? And how does the actual results are compared against the team's original expectations.

我今天有 2 個問題。首先，正如管理階層在開場白中所提到的，從策略角度來看，2023年對於拼多多來說是非常重要的一年。回顧2023年第四季和全年，管理階層能否分享您如何評價過去一年策略的執行情況？實際結果與團隊最初的預期相比如何？

For 2024, will there be any like major change in your strategic focus. And my second question was actually about the fourth quarter promotions. We all know the fourth quarter is the peak season for the e-commerce platforms. How would management assess PDD's performance in the fourth quarter shopping fasteners? Are there any interesting trends of consumers, merchants or platforms can be shared with us. Also, could you also help us a little bit in terms of understanding the relationship between the promotional season, seasonality and your very strong fourth quarter results.

2024 年，您的策略重點是否會發生類似的重大變化？我的第二個問題其實是關於第四季的促銷活動。眾所周知，第四季是電商平台的旺季。管理階層將如何評估PDD第四季採購緊固件的業績？消費者、商家或平台有什麼有趣的趨勢可以跟我們分享嗎？另外，您能否幫助我們了解促銷季節、季節性與強勁的第四季業績之間的關係。

[Interpreted] This is Chen Lei. Let me take your question on strategy. As mentioned in our remarks, 2023 marks the beginning of our high-quality development strategy. After year of dedicated execution, we have seen positive outcomes on the consumption side, supply side and within our platform ecosystem. This further reaffirms our lasting commitment in high-quality development.

[解讀]我是陳雷。讓我回答你關於策略的問題。正如我們在致詞中所提到的，2023年是我們高品質發展策略的開局之年。經過一年的專注執行，我們在消費端、供應端以及我們的平台生態系統中都看到了積極的成果。這進一步堅定了我們堅持高品質發展的堅定決心。

As we expanded into multiple countries and regions, we encountered diverse consumer habits, cultures and rapidly evolving market landscape. We firmly believe that the consumers' demand for more savings and better services is universal. Therefore, in Q4, we continued our investment in alignment with our high-quality development strategy.

隨著我們擴展到多個國家和地區，我們遇到了不同的消費者習慣、文化和快速變化的市場模式。我們堅信，消費者對更多儲蓄和更好服務的需求是普遍的。因此，第四季我們根據高品質發展策略繼續加大投入。

First, from the consumer side, our top priority has always been to understand and meet consumer needs. During the peak season in Q4, we introduced tailored promotional activities across different markets, featuring innovative, direct and engaging campaigns. These initiatives allow consumers to improve their quality of life with ease and quick savings, making it easier for our consumers to achieve high-quality consumption. The response to these promotions has been positive.

首先，從消費者方面來說，我們的首要任務始終是了解並滿足消費者的需求。在第四季旺季期間，我們在不同市場推出了量身訂製的促銷活動，其特點是創新、直接、有吸引力。這些措施讓消費者輕鬆快速地儲蓄，提升生活質量，讓我們的消費者更容易實現高品質消費。這些促銷活動得到了正面的迴響。

On the supply side, we continue to allocate platform resources towards high-quality products and reputable merchants to offer consumers more quality products. In addition, we also have merchants drive volume, improve turnover efficiency, reduce operating costs, minimize product risk and consequently lower product prices, forming a virtuous cycle.

在供給端，我們持續將平台資源向優質產品和信譽商家傾斜，為消費者提供更多優質產品。此外，我們也為商家帶動了銷量，提高了周轉效率，降低了營運成本，最大限度地降低了產品風險，從而降低了產品價格，形成良性循環。

A healthy ecosystem is the fundamental for the sustainable growth of the platform, and we are determined to put more efforts in this area. We continue to make forward-looking investments in platform governance, employing technology to identify risk early and respond quickly. We carry out product screening and merchant review on issues such as (inaudible), IP protection and product compliance and achieved favorable outcome.

健康的生態系統是平台永續發展的根本，我們決心在這方面做出更多的努力。我們繼續在平台治理方面進行前瞻性投資，利用技術及早識別風險並快速回應。我們針對（聽不清楚）、智慧財產權保護、產品合規等問題進行產品篩選和商家審核，取得了良好的效果。

Moving ahead, we will continue to take social responsibilities, fostering a favorable environment for both consumers and merchants.

下一步，我們將繼續承擔社會責任，為消費者和商家創造良好的環境。

After a year of execution, we are delighted to see the positive changes brought about by our high-quality development strategy. Going forward, we will stick to our strategic focus, deepen and strengthen our strategy, further refined platform capabilities and deliver our unique value to consumers and society. Thank you.

經過一年的實施，我們很高興地看到高品質發展策略帶來的正面改變。未來，我們將堅守策略定點，深化強化策略，進一步完善平台能力，為消費者和社會傳遞獨特價值。謝謝。

[Interpreted] This is Jiazhen Zhao. Let me take your question on shopping festival.

[解說]我是趙家珍。我來回答你關於購物節的問題。

As always, during last year's Singles Day and Double 12, we provided consumers with straightforward price discount to strengthen our more savings mind share. For example, during the Double 11 last year, for the first time, we introduced direct price reduction on top of our RMB 10 billion program for the -- so we also expanded the brands and products covered by our promotions. This is to meet the growing demand for upgrades.

一如既往，在去年的雙十一和雙十二期間，我們為消費者提供了直接的價格折扣，以增強我們更多的儲蓄意識份額。例如去年雙11期間，我們在百億計畫的基礎上首次推出了直接降價，所以我們也擴大了促銷的品牌和產品範圍。這是為了滿足不斷增長的升級需求。

We received positive feedback from our continued efforts. And during Singles Day, over 620 million consumers benefited from RMB 10 billion program with order volume more than doubled. At the same time, we are happy to see that the value of our platform has been increasingly recognized by our merchants. The number of merchants, brands and products participating in our promotional activities reached the new height. Our merchants are growing together with our platform.

我們的持續努力得到了正面的回饋。雙十一期間，超6.2億消費者受益百億計劃，訂單量增加一倍以上。同時，我們很高興看到我們平台的價值越來越被商家認可。參與促銷活動的商家、品牌、產品數量再創新高。我們的商家與我們的平台一起成長。

And while we are very pleased to see the results from our shopping festivals, our team actually chooses to pay more attention to the ongoing improvement in our platform's capabilities and how we can better meet consumers' demand for quality products at attractive prices all year round.

雖然我們很高興看到購物節的成果，但我們的團隊實際上選擇更多地關注我們平台能力的持續改進，以及如何更好地滿足消費者全年對優質產品和有吸引力價格的需求。

Since the founding of Pinduoduo 8 years ago, we have always kept our focus on our core e-commerce business. By patiently given back to the consumers we serve, we've gradually earned a positive user mind share. I think the results we have today is not only brought by the promotions in the past quarter, but also the return on investments we made in the past.

拼多多成立8年來，始終專注於核心電商業務。透過耐心回饋我們所服務的消費者，我們逐漸贏得了積極的用戶心智份額。我想我們今天的成績不僅是過去一個季度的促銷活動帶來的，也是我們過去的投資得到的回報。

From the consumer side, we continue to see the growing trust from our users. And in addition to serving more new users, we are also expanding the volume share of our existing users. We believe it's the result of our growing capabilities in offering more savings and better services. This very encouraging trend strengthens our confidence in the overall direction of the high-quality development strategy.

從消費者方面來看，我們不斷看到用戶的信任不斷增長。除了服務更多新用戶之外，我們還擴大現有用戶的數量份額。我們相信，這是我們提供更多節省和更好服務的能力不斷增強的結果。這一令人鼓舞的態勢，堅定了我們對高品質發展策略整體方向的信心。

And from the supply side, we leverage our technology and scale to provide differentiated services for our SME merchants. And through these services, we help SME merchants expand their market reach and at the same time, broadening the product selection available on our platform. And by doing so, we create a virtuous cycle. And looking ahead, we will continue to invest firmly and patiently to create long-term value for our consumers and merchants and also to build a solid foundation for the next phase of our journey. Thank you.

而從供給端來說，我們利用我們的技術和規模，為中小企業商家提供差異化的服務。透過這些服務，我們幫助中小企業商家擴大市場範圍，同時擴大我們平台上的產品選擇。透過這樣做，我們創造了一個良性循環。展望未來，我們將繼續堅定、耐心地投資，為消費者和商家創造長期價值，為下一階段的旅程奠定堅實的基礎。謝謝。

Operator, we are ready for the next question.

接線員，我們準備好回答下一個問題。

Your next question comes from Kenneth Fong with UBS.

您的下一個問題來自瑞銀集團的 Kenneth Fong。

[Interpreted] My first question is regarding Pinduoduo domestic business. Can management share your view on the overall consumption market in the upcoming year? What are the new trends that you're seeing in the first quarter?

[解讀]我的第一個問題是關於拼多多國內業務的。管理階層能否分享您對來年整體消費市場的看法？您在第一季看到了哪些新趨勢？

My second question is on the shareholder return and margin. In fourth quarter, the company achieved a decent profitability against the best drop of intensified competition and rapid growth of your global business. Can management share your view of how we should think about the margin in 2024 and going forward? And meanwhile, on shareholder return, we saw that you have a very strong balance sheet and then cash flow given peers have announced large increase in share buyback and dividends. Do we have similar plans?

我的第二個問題是關於股東回報和利潤率。第四季度，在競爭加劇和全球業務快速成長的情況下，公司實現了較好的獲利能力。管理階層能否分享一下您對我們應該如何考慮 2024 年及未來利潤率的看法？同時，在股東回報方面，我們看到你們擁有非常強勁的資產負債表和現金流，因為同業已經宣布大幅增加股票回購和股利。我們有類似的計劃嗎？

[Interpreted] This is Jiazhen. Let me take your question on the consumption market. In the past year, we actually clearly felt the depth with and also the resilience of the China consumer market, and we are very confident in its future.

【解說】這是家珍。我來回答你關於消費市場的問題。在過去的一年裡，我們確實清楚地感受到了中國消費市場的深度和韌性，我們對它的未來非常有信心。

And also from the activities we see on our platform, we clearly feel the improving consumer sentiment, and we look forward to seeing that trend continuing to this year with the support of more macro policies.

而且從我們平台上看到的活動中，我們明顯感受到消費者情緒的改善，我們期待看到這種趨勢在更多宏觀政策的支持下持續到今年。

We see many long-term driving forces behind the positive consumption trends. And first of all, consumers have desired for a better life, which lays a solid foundation for consumption growth. And secondly, we see new retail formats and business models emerged with the technology innovation, which also drives online penetration of retail sales. This supports the industry's long-term prospects as well. And thirdly, we see tremendous potential in a large number of quality national brands and agricultural products. And this also offers further opportunities for our platform.

我們看到正面的消費趨勢背後有許多長期驅動力。首先，消費者對美好生活的嚮往，為消費成長奠定了堅實的基礎。其次，隨著技術創新，新的零售業態和商業模式不斷湧現，也推動了零售業的線上滲透。這也支持了該行業的長期前景。三是大批優質民族品牌和農產品潛力巨大。這也為我們的平台提供了更多的機會。

And in this favorable consumption environment, we will continue our investment to enhance our service capabilities, collaborate with more merchants to serve our consumers well and also improve the platform ecosystem. And by doing so, we hope we can create greater value for our society. Thank you.

在這個良好的消費環境下，我們將持續投入，提升服務能力，與更多商家合作，服務好消費者，完善平台生態。透過這樣做，我們希望能為社會創造更大的價值。謝謝。

Ken, this is Jun. Let me take your question about the profitability and shareholder return. Well, regarding profitability, we always emphasize though we are still in the development stage. Profitability is not our priority. Considering our current stage of development, our strategic focus remains on the high-quality development of the platform. So we will focus on building the platform's long-term value, which is consistent with the interest of our investors.

Ken，我是 Jun。讓我回答你關於獲利能力和股東回報的問題。那麼，關於獲利能力，我們一直強調，儘管我們仍處於發展階段。獲利不是我們的首要任務。從我們現階段的發展來看，我們的策略重點仍然是平台的高品質發展。因此，我們將專注於打造平台的長期價值，這與我們投資者的利益是一致的。

Over the past years, guided by our strategy of high-quality development. We have made some investments in a few key areas. For example, we have continued to give back to consumers to deepen our mind share. We also remain committed to R&D, which R&D exceeding RMB 10 billion for the second consecutive year. This investment have yielded favorable initial returns. Moving forward, we will continue to make a decisive and patient investments where we see long-term ROI potential.

多年來，我們以高品質發展策略為指引。我們在幾個關鍵領域進行了一些投資。例如，我們持續回饋消費者，深化我們的心靈分享。我們也持續致力於研發，研發投入連續第二年超過100億元。這項投資已取得了良好的初步回報。展望未來，我們將繼續在看到長期投資回報潛力的領域進行果斷而耐心的投資。

And our business execution cycle is affected by various factors and may not align with our financial reporting cycle. Profitability on a quarterly basis, we are in eligibly fluctuate based on the different investment opportunities we identify. So the financial results in Q4 may not serve as a benchmark for future quarters.

我們的業務執行週期受到多種因素的影響，可能與我們的財務報告週期不一致。按季度計算的獲利能力會根據我們發現的不同投資機會而發生適當的波動。因此，第四季度的財務表現可能無法作為未來幾季的基準。

And regarding the share repurchase and dividends, you're basically asking about our overall capital allocation, which is also affected by the stage of forward department. Each company is at a different stage of department. And for us, we are still in the investment phase. So we -- our current focus is still to invest in our long-term value.

至於股票回購和股息，你基本上是在問我們整體的資本配置，這也受到遠期部門階段的影響。每個公司都處於不同的部門階段。對我們來說，我們仍處於投資階段。因此，我們目前的重點仍然是投資於我們的長期價值。

Your next question comes from Thomas Chong with Jefferies.

您的下一個問題來自 Jefferies 的 Thomas Chong。

[Interpreted] My first question is that we saw your global business has gained good momentum in the past year. Could you please share any of your view on the future plan for global business. Moreover, the market also pays attention to the company's position on compliance. How would the company balance legal and compliance with your business development?

[解讀]我的第一個問題是，我們看到你們的全球業務在過去的一年裡取得了良好的勢頭。您能否分享一下您對未來全球業務計畫的看法？此外，市場也關注公司在合規方面的立場。公司將如何平衡法律與合規與您的業務發展？

My second question is about domestic competition. In the past year, many of your major competitors have pivoted in their strategies, putting more emphasis on price competitiveness, how does the management will be positioning of your competitors? Are you concerned that it might impact the market share of Pinduoduo? How do you adjust your own strategy in such competition.

我的第二個問題是關於國內競爭的。在過去的一年裡，你們的許多主要競爭對手的策略都發生了轉變，更加重視價格競爭力，管理階層將如何定位你們的競爭對手？您是否擔心這會影響拼多多的市佔率？在這樣的競爭中你如何調整自己的策略？

[Interpreted] Thomas, this is Chen Lei. Let me take your question on global business. Our vision for global business is to utilize our supply chain and technological capabilities to bring outstanding merchants and high-quality products all over the world to global consumers, helping consumers from all backgrounds to achieve their dreams. Currently, the business is at a relatively early stage, taking many uncertainties and challenges ahead.

[解說]湯瑪斯，我是陳雷。讓我回答你關於全球業務的問題。我們的全球業務願景是利用我們的供應鏈和技術能力，將世界各地的優秀商家和優質產品帶給全球消費者，幫助不同背景的消費者實現夢想。目前，該業務仍處於相對早期階段，面臨許多不確定性和挑戰。

To address these uncertainties, we must constantly improve ourselves with a genuine desire to learn from consumers in the market, we're actively seek more innovations in technology and operation models to increase market competition and overcome challenges.

為了因應這些不確定性，我們必須不斷提升自己，真誠地向市場消費者學習，並積極尋求更多技術和營運模式的創新，以增加市場競爭，克服挑戰。

As I mentioned earlier, despite shifts in the market environment and competitive landscape, consumers demand for more savings and better services is universal. Therefore, we will be dedicated to integrating our high-quality development strategy into our global operations and be prepared for long-term investments. We have confidence in the unique value of our platform and welcome like many partners to join us in creating more value for consumers globally.

正如我剛才提到的，儘管市場環境和競爭格局發生了變化，但消費者對更多儲蓄和更好服務的需求是普遍的。因此，我們將致力於將高品質發展策略融入全球經營，並做好長期投資的準備。我們對平台的獨特價值充滿信心，歡迎許多合作夥伴加入我們，為全球消費者創造更多價值。

You also mentioned compliance, legal and compliance has always been fundamental to our business. It's a big part of our strategic planning and the management team has put in extensive efforts in this area. Last year, we established a legal and compliance committee chaired by myself to reinforce our legal and compliance capabilities across regions.

您也提到合規、法律和合規一直是我們業務的基礎。這是我們策略規劃的重要組成部分，管理團隊在這方面付出了廣泛的努力。去年，我們成立了由我擔任主席的法律合規委員會，以加強我們跨區域的法律合規能力。

Through our continued efforts, we enhanced our internal compliance mechanisms and processes. With the humble attitude, we strive to stay abreast of the latest industry laws and regulations and maintain communication and cooperation with regulatory bodies in the countries where we operate.

透過持續努力，我們強化了內部合規機制和流程。我們以謙虛的態度，努力隨時了解最新的行業法律法規，並與業務所在國的監管機構保持溝通與合作。

We aim to align with high industry standards in the field of legal and compliance. We will continue to conduct research and investment in this area to lay a solid foundation for our long-term healthy development.

我們的目標是在法律和合規領域符合高行業標準。我們將繼續在這方面進行研究和投入，為我們的長期健康發展打下堅實的基礎。

[Interpreted] This is Zhao Jiazhen. Let me take your question on competition. As we mentioned earlier on this call, in 2023, we saw sustained recovery in consumer sentiment and at the same time, consumers started to care more and more about achieving upgrade at attractive prices. And in this background, we think it is normal to see e-commerce platforms increased promotional efforts and also focus more on price competitiveness.

[解讀]我是趙家珍。讓我回答你關於競爭的問題。正如我們之前在本次電話會議中提到的，2023 年，我們看到消費者信心持續復甦，同時消費者開始越來越關心以有吸引力的價格實現升級。在這樣的背景下，我們認為電商平台加強促銷並更加重視價格競爭力是正常的。

And competition is inevitable in our industry. In the phase of competition, we always focus on understanding and meeting the needs of consumers and keep working on our own capabilities. Over the past year, we have built good momentum on our high-quality development strategy, and we are confident in the overall strategic interaction. And moving ahead, we'll be focusing on implementing our strategy in every aspect of our platform operation.

我們這個產業的競爭是不可避免的。在競爭階段，我們始終注重了解並滿足消費者的需求，並不斷發揮自己的能力。一年來，我們高品質發展策略動能良好，對整體策略連結充滿信心。展望未來，我們將專注於在平台營運的各個方面實施我們的策略。

First, we'll continue to deepen our consumer mind share and we do so by offering more savings to our users. We will very closely follow consumer needs and launch very simple and direct promotional activities targeting the most desirable product categories and price ranges. This is the foundation that we need to keep investing in.

首先，我們將繼續深化我們的消費者心智份額，並透過為用戶提供更多優惠來實現這一目標。我們將非常密切地關註消費者的需求，針對最理想的產品類別和價格範圍，推出非常簡單直接的促銷活動。這是我們需要持續投資的基礎。

And of course, a good consumer experience is not only about price. In terms of services, we also continue to refine our entire shopping experience from presale consultation, fulfillment, aftersales services to consumer protection. Our goal is to offer a safe and enjoyable shopping experience for our users.

當然，良好的消費者體驗不僅僅取決於價格。在服務方面，我們也不斷完善從售前諮詢、履單、售後服務到消費者保障的整個購物體驗。我們的目標是為用戶提供安全、愉快的購物體驗。

And at the same time, as a tech company, we'll increase our investment in R&D and we are guided by the principle of tech for goods, and we'll continue to strengthen our capabilities to empower a wide range of SMEs, promote the digitization of the various industries and also introduce more popular products to the market.

同時，作為一家科技公司，我們會加大研發投入，以科技為商品的原則為指導，不斷增強賦能廣大中小企業的能力，推動中小企業的發展。各行業的數位化，並向市場推出更多受歡迎的產品。

And high-quality supply is a key component of the platform ecosystem and its essential to serving our users well. And from this angle, we hope that R&D will further drive the positive development of our ecosystem. And we believe that by focusing on these areas that critical to long-term value creation. We can remain calm in a fiercely competitive environment and continue to improve ourselves and create greater value for the consumers and the society. Thank you.

而高品質的供給是平台生態系統的關鍵組成部分，也是服務好用戶的關鍵。從這個角度來說，我們希望研發能進一步推動我們生態系統的良性發展。我們相信，透過關注這些對於長期價值創造至關重要的領域。我們能夠在激烈的競爭環境中保持冷靜，不斷提升自我，為消費者和社會創造更大的價值。謝謝。

Okay. Operator, it's above time, and I want to thank you all for -- again for joining us today. And if you have any further questions, please reach out to our team, and thank you. I'll see you next quarter.

好的。接線員，時間已經到了，我想再次感謝你們今天加入我們。如果您還有任何其他問題，請聯絡我們的團隊，謝謝。下季見。

Ladies and gentlemen, that does conclude our conference for today. Thank you for participating. You may now disconnect.

女士們、先生們，今天的會議到此結束。感謝您的參與。您現在可以斷開連線。

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

本文字記錄中標記為[已翻譯]的部分是由現場通話中的口譯員朗讀的。