拼多多 (PDD) 2024 Q1 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to PDD Holdings Inc. First Quarter 2024 Earnings Conference Call. (Operator Instructions) Please be advised that today's conference is being recorded.

女士們、先生們，感謝大家的支持，歡迎參加拼多多控股有限公司 2024 年第一季財報電話會議。 （操作員指示）請注意，今天的會議正在錄製中。

I would now like to hand the conference over to your host today. Sir, please go ahead.

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 Globe Newswire 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，可透過我們的網站 Investor.pddholdings.com 以及環球通訊社服務取得。

Before we begin, I would like to refer you to our safe harbor statement in earnings press release, which also applies to this call as we will make certain forward-looking statements.

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，該聲明也適用於本次電話會議，因為我們將做出某些前瞻性聲明。

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.

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。請參閱我們的收益發布，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 Co-Chief Executive Officer; Mr. Zhao Jiazhen, our Executive Director and Co-Chief Executive Officer; as well as Ms. Liu Jun, our VP of Finance.

今天加入我們電話會議的還有我們的董事長兼聯合執行長陳雷先生；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。

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 first quarter ended March 31, 2024. And during the Q&A session, Lei and Jiazhen will answer questions in Chinese I will help translate.

雷和家震將對我們上個季度的業績和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 2024 年 3 月 31 日的第一季財務表現。

Please note that the English translation is for reference only, and in case of discrepancy, statement in the original language should prevail.

請注意，英文翻譯僅供參考，如有差異，以原文為準。

Now it's my pleasure to introduce our Chairman and Co-Chief Executive Officer, Chen Lei. Lei, please go ahead.

現在我很高興向大家介紹我們的董事長兼聯席執行長陳雷。雷，請繼續。

Hello, everyone. Thank you all for joining our earnings call for the first quarter of 2024.

大家好。感謝大家參加我們 2024 年第一季的財報電話會議。

2023 was the first year on our journey towards high-quality development. We are encouraged by the positive feedback from our users and merchants and are more confident in our strategic direction.

2023年是我們邁向高品質發展的開局之年。用戶和商家的正面回饋令我們深受鼓舞，對我們的策略方向更加充滿信心。

2024 is a critical year to deepen our [access]. In the first quarter, we benefited from an improving macro demand and achieved steady growth. Our total revenue reached RMB 86.8 billion, which represents a 131% year-on-year increase.

2024年是深化我們[准入]的關鍵一年。一季度，受益宏觀需求改善，實現平穩成長。總收入達人民幣868億元，年增131%。

Looking ahead, we will continue to work on the fundamentals of our business through our investments in supporting high-quality consumption, broadening high-quality supply and promoting high-quality ecosystem.

展望未來，我們將繼續夯實基礎，透過投資支持高品質消費、擴大高品質供給、促進高品質生態。

Our proactive transition to high-quality development will inevitably [face] challenges and difficulties, but still we've decided to embark on this journey and are determined to executing well because we are seeing a few irreversible long-term market share.

我們主動向高品質發展轉型，難免會遇到挑戰和困難，但我們還是決定走上這條路，決心做好，因為我們看到了一些不可逆轉的長期市場份額。

First of all, we clearly see a trend of consumption upgrade, and in response to this, we are innovating our service offering to cover more consumption scenarios, and at the same time, actively engaging with our merchants to broaden our product lines. For example, this year, we are deepening our cooperation with top brands around the world to bring a new product (inaudible) to our platform.

首先，我們清楚地看到了消費升級的趨勢，針對這一趨勢，我們正在創新服務，涵蓋更多消費場景，同時積極與商家合作，拓寬我們的產品線。例如，今年，我們正在深化與世界各地頂級品牌的合作，將新產品（聽不清楚）帶到我們的平台上。

In addition to meeting consumer demand for more savings and better services, we hope the deepening connections with our consumers and strengthening our platform with [my share] in new product categories and among new customer groups.

除了滿足消費者對更多節省和更好服務的需求外，我們希望加深與消費者的聯繫，並透過[我的份額]在新產品類別和新客戶群中加強我們的平台。

High-quality consumption will not be possible without strong pricing capabilities. And over the years, we have built a valuable experience across the entire e-commerce pricing. Through technology innovation and investment in research and development, our supply chain know-how is transformed into easy-to-use tools and services to empower our merchants with cost-saving digital solutions. These measures have proved to be effective in terms of attracting more merchants on our platform, broadening our product (inaudible) and reducing product costs, all of which are essential to support high-quality consumption.

沒有強大的定價能力就不可能實現高品質消費。多年來，我們在整個電子商務定價方面累積了寶貴的經驗。透過技術創新和研發投資，我們的供應鏈專業知識轉化為易於使用的工具和服務，為我們的商家提供節省成本的數位解決方案。事實證明，這些措施在吸引更多商家入駐我們的平台、拓寬我們的產品範圍（聽不清楚）和降低產品成本方面是有效的，所有這些對於支持高品質消費至關重要。

And lastly, an ecosystem that encourages compliant business conduct is the foundation to long-term growth of our platform.

最後，鼓勵合規商業行為的生態系統是我們平台長期發展的基礎。

As commerce integrates with digital technology at a record pace, consumers and regulators are holding e-commerce platforms accountable for higher standards. And we are taking the initiative to build an industry-leading compliance program and to leverage our technology capabilities to empower SMB businesses with our compliance know-how. This is to foster a healthy environment that attract quality merchants that are willing to play by the rules and drive out bad actors, thereby creating a positive feedback. When it comes to consumer wellbeing and economic interest, we always stand behind the former. We are focused on building long-lasting trust with our consumers and not on short-term gains.

隨著商業與數位技術以創紀錄的速度融合，消費者和監管機構要求電子商務平台承擔更高的標準。我們正在主動建立領先業界的合規計劃，並利用我們的技術能力為中小企業企業提供我們的合規專業知識。這是為了營造一個健康的環境，吸引願意遵守規則的優質商家，驅逐不良行為者，從而產生正面的回饋。當談到消費者福祉和經濟利益時，我們始終支持前者。我們專注於與消費者建立長期信任，而不是短期利益。

We also adopt a similar long-term orientation to all aspects of our business. As a company that is still in a growth mode, we will continue to focus on long-term value creation and invest fully into opportunities with great potential.

我們也對業務的各個方面採取類似的長期定位。作為一家仍處於成長模式的公司，我們將繼續專注於長期價值創造，並充分投資於具有巨大潛力的機會。

We are not guided by short-term goals, and this is also reflected in how we manage our global business. Our global business is still in the exploration stage and there's plenty of room for improvement. We are prepared to respond positively to challenges, and we view these as important opportunities to improve ourselves.

我們不以短期目標為指導，這也反映在我們管理全球業務的方式。我們的全球業務仍處於探索階段，還有很大的進步空間。我們準備好積極應對挑戰，並將這些視為提升自我的重要機會。

We are in this for the long term and will not be distracted by short-term results. With that, we will focus our effort on building our key capabilities. Firstly, supply chain capabilities, we will continue to roll out tailored fulfillment solution in different markets to improve supply chain efficiency and reduce costs. We welcome quality merchants from around the world to join us in providing a rich variety of quality products for consumers worldwide.

我們著眼於長期發展，不會因短期結果而分心。這樣，我們將集中精力建立我們的關鍵能力。首先是供應鏈能力，我們將繼續在不同市場推出量身訂製的履行解決方案，以提高供應鏈效率並降低成本。我們歡迎世界各地優質商家加入我們，為全球消費者提供豐富多元的優質產品。

Secondly, legal and compliance capabilities. With the goal of building an industry-leading compliance program, we will make [plenty of] investments to create a safe and trustworthy shopping environment for our users.

其次，法律合規能力。為了建立業界領先的合規計劃，我們將進行[大量]投資，為用戶創造一個安全、值得信賴的購物環境。

To uphold our compliance centers, we will conduct forward-looking research into laws and regulation in the markets we operate and transform our know-how into tools that can easily assess our merchants.

為了維護我們的合規中心，我們將對我們營運的市場的法律法規進行前瞻性研究，並將我們的專業知識轉化為可以輕鬆評估我們商家的工具。

And thirdly, service capabilities. In response to diverse needs and quality standards of global users, we will keep up our investment in technology and operations to improve overall user experience.

第三，服務能力。針對全球用戶多樣化的需求和品質標準，我們將持續增加技術和營運投入，提升整體用戶體驗。

As we bring more value to consumers and merchants around the globe, we are hopeful that our platform will be increasingly recognized and welcomed by local communities we serve. We do not expect this to be easy and we are prepared for investments over the long run.

隨著我們為全球消費者和商家帶來更多價值，我們希望我們的平台能夠越來越受到我們所服務的當地社區的認可和歡迎。我們預計這並不容易，我們已做好長期投資的準備。

Finally, I would like to say that we are operating in a constantly evolving industry where competition and opportunities are both emerging at a rapid pace. Competition can be intensified in the past -- has been intensified in the past quarter, which will inevitably increase our expenses and affect some organic growth. On the other hand, new technologies and new markets also offer us tremendous opportunity for growth.

最後，我想說，我們身處一個不斷發展的產業，競爭和機會都在快速湧現。競爭在過去可能會加劇——在過去的一個季度加劇，這將不可避免地增加我們的開支並影響一些有機成長。另一方面，新技術、新市場也為我們提供了巨大的發展機會。

At this moment, I want to read our first shareholder letter when the company went public. We are not a conventional company, and we hope to show you the true colors of our company no matter how bumpy or rough the numbers may seem to be.

此時此刻，我想讀第一封我們公司上市時的股東信。我們不是一家傳統的公司，無論數字看起來多麼坎坷或粗糙，我們都希望向您展示我們公司的本來面目。

Our business does not follow a linear path and our earnings will almost certainly fluctuate. Therefore, we suggest our shareholders not to measure our overall performance with results from a few quarters. Our financial performance may beat or miss market expectations at times, but as long we keep focusing on long-term value creation, ultimately, this short-term fluctuation will convert to our growing intrinsic value.

我們的業務並不遵循線性路徑，我們的收入幾乎肯定會波動。因此，我們建議股東不要用幾季的業績來衡量我們的整體業績。我們的財務表現有時可能會超出或低於市場預期，但只要我們繼續專注於長期價值創造，最終，這種短期波動將轉化為我們不斷增長的內在價值。

And now I will hand it over to our Co-CEO, Jiazhen. Jiazhen, please.

現在我將把它交給我們的聯合執行長家珍。家珍請。

[Interpreted] Thank you, Lei. Hello, everyone. This is Zhao Jiazhen. Thank you all for joining our earnings call for the first quarter of 2024.

[解讀]謝謝你，雷。大家好。這是趙家珍。感謝大家參加我們 2024 年第一季的財報電話會議。

This year is a year for consumption promotion. The consumer market in the first quarter has made a good start. Online consumption remained strong, and online retail penetration continued to rise. We proactively responded to the consumption promotion policies and launched a series of promotional activities to meet users' shopping needs during the Spring Festival and other seasonal events.

今年是促進消費的一年。第一季消費市場開局良好。網路消費依然強勁，網路零售滲透率持續提升。我們積極回應消費促進政策，推出一系列促銷活動，滿足用戶春節等季節性活動的購物需求。

This further releases consumption potential and benefits merchants. Driven by both macro environment and our effective promotional events, we achieved solid growth in the first quarter. We are confident in the consumer market in China.

這進一步釋放了消費潛力，讓商家受益。在宏觀環境和有效促銷活動的推動下，我們第一季實現了穩健的成長。我們對中國的消費市場充滿信心。

As Lei mentioned, this year, we will step up our investment to deepen the execution of high-quality development strategy. High-quality development is our long-term strategy.

雷軍表示，今年我們將加大投入，深化實施高品質發展策略。高品質發展是我們的長期策略。

Going forward, we will continue to direct our efforts into 3 key areas, which are consumption, supply, compliance and platform ecosystem while offering more savings to consumers. We are also focused on delivering high-quality supply and services to more consumers.

未來，我們將持續在消費、供應、合規和平台生態三個關鍵領域發力，為消費者提供更多優惠。我們也致力於為更多消費者提供高品質的供應和服務。

Guided by this strategy, on the consumer side, in the first quarter, we remain committed to putting consumers first. Focusing on more savings and better services, we continue to give back the most tangible rewards to our users. For example, we stepped up our investment in a 10 billion program and partnered with millions of quality merchants during the Spring Festival shopping season and the May Day shopping festival to fulfill consumers' demand for more savings.

在這個策略的指導下，在消費者方面，第一季我們依然堅持消費者至上。我們專注於更多的節省和更好的服務，持續回饋用戶最真實的回報。例如，我們加大百億計畫投入，在春節、五一期間與數百萬優質商家合作，滿足消費者更多省錢的需求。

As for better services, the consumer goods trade-in program is one of the initiatives driving this year's nationwide consumption promotion efforts. We have been actively working with third-party service platforms to provide users with convenient trade-in services covering mobile phones, electronics, air-conditioners, refrigerators, washing machines, TVs and other categories. Today, we have served more than 10 million customers.

在服務方面，消費品以舊換新是今年全國促進消費的措施之一。我們一直積極與第三方服務平台合作，為用戶提供便利的以舊換新服務，涵蓋手機、電子產品、空調、冰箱、洗衣機、電視等類別。如今，我們已為超過 1,000 萬名客戶提供服務。

Our trade-in services also extend to popular products under the 10 billion program, which offers consumers attractive discounts. As we make it even easier for consumers to upgrade their consumption, their shopping experience is further enhanced.

我們的以舊換新服務也延伸至百億計畫下的熱門產品，為消費者提供極具吸引力的折扣。讓消費者更容易消費升級，購物體驗進一步提升。

In addition, we wanted to make sure that consumers in remote areas could also enjoy the free-shipping shopping experience. So in the first quarter, we upgraded our shopping and shipping services and pioneered free shipping to villages in remote provinces. Our efforts for last-mile delivery [post] even closer to the consumers with most now within 2 kilometers radius. Such innovation led to a rapid year-on-year growth of order volume from these regions. We're happy to see that our service improvements are further driving our growth.

此外，我們希望確保偏遠地區的消費者也能享受到免運費的購物體驗。因此，第一季度，我們升級了購物和運輸服務，並首創了免費送貨到偏遠省份的村莊。我們為最後一哩配送所做的努力[post]更加接近消費者，目前大多數配送半徑都在 2 公里以內。這種創新使得這些地區的訂單量較去年同期快速成長。我們很高興看到我們的服務改進正在進一步推動我們的成長。

On the supply side, we continued our investment to support and grow together with the branded merchants. In the first quarter, we focused on the theme of trending national brands and allocated platform resources such as traffic support to high-quality merchants. This not only ensured the high-quality supply, but also help boost our merchants' businesses.

在供給側，我們持續投入，支持品牌商家共同成長。一季度，我們圍繞著潮流民族品牌主題，向優質商家配置流量支援等平台資源。這既保證了優質貨源，也有利於商家生意興隆。

For example, during the Spring Festival shopping season, a dairy product brand launched a limited edition offering for the year of the dragon inspired by New Year traditions and chose our platform for the product launch. With the support of our platform's resources, the product quickly gained popularity and became a top seller in the dairy category.

例如，在春節購物季，某乳製品品牌受新年傳統啟發，推出了龍年限量版產品，並選擇了我們的平台進行產品發布。在平台資源的支持下，該產品迅速走紅，成為乳製品類別的暢銷產品。

Agriculture is our foundation. We are committed to invest in this important sector over the long run. In the first quarter, we continued to support agriculture technology innovation by launching the fourth Smart Agriculture Competition and the second Duo Duo Academy growing competition. This helps to explore new productive forces in agriculture.

農業是我們的基礎。我們致力於長期投資這一重要領域。一季度，我們持續支持農業科技創新，推出第四屆智慧農業比賽、第二屆多多學院成長大賽。這有利於探索農業新生產力。

At the same time, our agriculture cloud initiative has been steadily advancing in production regions such as Anhui, Hunan, Guangxi and Shandong to bring e-commerce screening and one-on-one consultation to local farmer merchants. In addition, during our Spring Festival shopping season, we collaborated with more than 1,000 quality agriculture production regions across the nation, which not only brought more specialty agriculture products to our platform, but also boost farmers' income.

同時，我們的農業雲舉措在安徽、湖南、廣西、山東等產區穩步推進，為當地農商戶帶來電商篩選和一對一諮詢。此外，春節購物季期間，我們與全國1000多個優質農業產區合作，不僅為我們的平台帶來了更多特色農產品，也增加了農民收入。

During the May Day shopping festival, we launched the dedicated live streaming sessions under the 10 billion program for agriculture products with a particular focus on (inaudible) agriculture specialties, such as blueberries and flowers. We supported the scaling of regional production and the branding of local agricultural products.

在五一購物節期間，我們推出了百億農產品專場直播，重點關注（聽不清楚）農產品，如藍莓、花卉等。支持地方農產品規模化生產和品牌化建設。

The high-quality ecosystem is critical to our transformation to high-quality development. Only a healthy ecosystem with well-designed platform policies can support the long-term sustainable growth of an e-commerce platform.

高品質生態系統是我們轉向高品質發展的關鍵。只有健康的生態系統和完善的平台政策才能支撐電商平台的長期永續發展。

In the first quarter, we continued to invest in the 10 billion ecosystem initiative and carried out a series of compliance projects. For example, our trust and safety team utilized the technological means to further enhance the efficient automated review of product information on our platform.

一季度，我們持續投入百億生態建設，進行了一系列合規計畫。例如，我們的信任與安全團隊利用科技手段，進一步提昇平台上產品資訊的高效自動化審核。

As an e-commerce platform serving a vast and diverse consumer base, we also actively utilized our own unique resources to take on more social responsibilities. Since the beginning of this year, we have continued to support the [Key to Home] nationwide campaign, caring for the elderly and help lost seniors return home safely.

作為服務廣大多元消費者群的電商平台，我們也積極運用自身獨特資源，承擔更多社會責任。今年以來，我們持續支持全國「家鑰匙」行動，關懷老人，幫助走失老人平安回家。

Around the World Reading Day, we launched the seventh Duo Duo Reading Month and provided direct discount to tens of thousands of book products, enabling more people to enjoy the benefits of knowledge sharing.

世界閱讀日前後，我們推出第七屆“多多閱讀月”，數萬種圖書產品直接折扣，讓更多人享受到知識分享的好處。

Our high-quality development strategy is a long-term massive and complex project. We will bring together the efforts and resources from all ecosystem participants to deepen our execution and create more value for our consumers and merchants.

高品質發展策略是一項長期、龐大、複雜的工程。我們將匯集所有生態系統參與者的努力和資源，深化我們的執行力，為我們的消費者和商家創造更多價值。

Now let me hand it over to Jun. She will provide you with an update on our financial performance in the first quarter.

現在讓我把它交給Jun。

Thank you, Jiazhen. Hello, everyone. Let me walk you through our financial performance for the first quarter ended March 31, 2024.

謝謝你，家珍。大家好。讓我向您介紹我們截至 2024 年 3 月 31 日的第一季的財務表現。

In terms of income statement, in the first quarter, our total revenues increased 131% year-over-year to RMB 86.8 billion. This was mainly driven by an increase in revenues from online marketing services and transaction services.

從損益表來看，第一季我們的總營收年增131%至868億元。這主要是由於線上行銷服務和交易服務收入的成長所致。

Revenues from online marketing services and others were RMB 42.5 billion this quarter, up 56% from the same quarter of 2023. Revenues from transaction services were RMB 44.4 billion, up 327% from the same quarter last year.

本季網路行銷服務及其他營收為人民幣425億元，較2023年同季成長56%。

Moving on to cost and expenses. Our total cost of revenue increased 194% from RMB 11.1 billion in Q1 2023 to RMB 32.7 billion this quarter, mainly due to increase in fulfillment fees, payment processing fees, maintenance costs and call center expenses.

繼續討論成本和費用。我們的總收入成本從 2023 年第一季的 111 億元增加到本季的 327 億元人民幣，成長了 194%，主要是由於履行費用、支付處理費用、維護成本和呼叫中心費用的增加。

On a GAAP basis, total operating expenses this quarter increased 44% to RMB 28.1 billion from RMB 19.6 billion in the same quarter of 2023. On a non-GAAP basis, total operating expenses increased to RMB 25.6 billion this quarter from RMB 18.1 billion in Q1 2023.

以美國通用會計準則計算，本季總營運費用從2023 年同季的196 億元人民幣增加至281 億元。元人民幣增至256 億元。

In the first quarter, we invested decisively in key strategic initiatives such as giving back to the consumers, investing in our service offerings, promoting brand awareness and R&D.

第一季度，我們果斷投資於關鍵策略舉措，例如回饋消費者、投資我們的服務、提升品牌知名度和研發。

Our total non-GAAP operating expenses as a percentage of total revenue this quarter was 29% compared to 48% in the same quarter last year.

本季我們的非 GAAP 總營運費用佔總收入的百分比為 29%，去年同期為 48%。

Looking to specific expense items. Our non-GAAP sales and marketing expenses this quarter were RMB 22.7 billion, up 44% versus the same quarter last year. Throughout the past quarter, we continued to give back to consumers over a series of business promotion campaigns, an increase of advertising to promote our brands.

尋找具體的支出項目。本季我們的非 GAAP 銷售和行銷費用為 227 億元人民幣，比去年同期成長 44%。在過去的一個季度，我們繼續透過一系列的商業促銷活動回饋消費者，增加廣告宣傳我們的品牌。

On a non-GAAP basis, our sales and marketing expenses as a percentage of our revenues this quarter was 26% versus 42% for the same quarter last year. Our non-GAAP general and administrative expenses were RMB 572 million versus RMB 338 million in the same quarter of 2023.

以非公認會計原則計算，本季我們的銷售和行銷費用佔收入的百分比為 26%，而去年同期為 42%。我們的非 GAAP 一般和管理費用為 5.72 億元，而 2023 年同一季度為人民幣 3.38 億元。

Our research and development expenses were RMB 2.3 billion this quarter on a non-GAAP basis and RMB 2.9 billion on a GAAP basis, up 16% year-over-year.

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 23 億元，以美國通用會計準則計算為人民幣 29 億元，較去年同期成長 16%。

Technology is at the core of our high-quality development strategy. We will continue our investment in R&D to provide our users with a more satisfying shopping experience, improve supply chain efficiency and to build a robust compliance program.

科技是我們高品質發展策略的核心。我們將繼續在研發方面進行投資，為用戶提供更滿意的購物體驗，提高供應鏈效率並建立強大的合規計畫。

On a GAAP basis, operating profit for the quarter was RMB 26 billion versus RMB 6.9 billion in the same quarter last year. Non-GAAP operating profit was RMB 28.6 billion versus RMB 8.5 billion in the same quarter last year. Non-GAAP operating profit margin was 33% this quarter compared with 22% for the same quarter last year.

以公認會計原則計算，本季營業利潤為 260 億元人民幣，而去年同期為 69 億元。非 GAAP 營業利潤為 286 億元，去年同期為 85 億元。本季非 GAAP 營業利益率為 33%，去年同期為 22%。

Net income attributable to ordinary shareholders was RMB 28 billion for the quarter compared to the RMB 8.1 billion in the same quarter last year.

本季歸屬於普通股股東的淨利為人民幣280億元，去年同期為人民幣81億元。

Basic earnings per ADS was RMB 20.33 and diluted earnings per ADS was RMB 18.96 versus basic earnings per ADS of RMB 6.13 and diluted earnings per ADS of RMB 5.55 in the same quarter of 2023.

每份美國存託股基本收益為人民幣20.33 元，稀釋後每份美國存託股收益為人民幣18.96 元，而2023 年同季每份美國存託股基本收益為人民幣6.13 元，稀釋後每份美國存託股收益為人民幣5.55 元。

Non-GAAP net income attributable to ordinary shareholders was RMB 30.6 billion versus RMB 10.1 billion in the same quarter last year. Non-GAAP diluted earnings per ADS was RMB 20.72 versus RMB 6.92 in the second quarter of 2023.

非美國通用會計準則歸屬於普通股股東的淨利為人民幣 306 億元，去年同期為 101 億元。非 GAAP 攤薄後每股美國存託憑證收益為 20.72 元，而 2023 年第二季為 6.92 元。

As Lei mentioned, our business does not follow a linear path. This quarter's financial data does not represent the future. Fluctuations are inevitable. We suggest investors not to forecast our growth solely based on results from a few quarters.

正如雷所提到的，我們的業務並不遵循線性路徑。本季的財務數據並不代表未來。波動是不可避免的。我們建議投資者不要只根據幾季的業績來預測我們的成長。

That completes the income statement.

這樣就完成損益表了。

Now let me move on to cash flow. Our net cash generated from operating activities was RMB 21.1 billion compared with RMB 1.3 billion in the same quarter last year. As of March 31, 2024, we have RMB 242.1 billion in cash, cash equivalents and short-term investments.

現在讓我繼續討論現金流。我們經營活動產生的現金淨額為人民幣211億元，去年同期為13億元人民幣。截至2024年3月31日，我們擁有現金、現金等價物及短期投資人民幣2,421億元。

Thank you. This concludes my prepared remarks.

謝謝。我準備好的發言到此結束。

Thank you, Jun. Now let's move on to the Q&A session. In 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 from each analysts. Lei and Jiazhen will answer questions in Chinese and we'll help translate for convenience purposes. Operator, we are open for questions.

謝謝你，Jun。在今天的問答環節中，雷家震、Jun將在線上回答分析師的提問。我們最多可以回答每位分析師 2 個問題。雷和家珍將用中文回答問題，為了方便起見，我們將幫忙翻譯。接線員，我們歡迎提問。

(Operator Instructions) Your first question comes from Alicia Yap from Citigroup.

（操作員說明） 您的第一個問題來自花旗集團的 Alicia Yap。

(foreign language) Congrats on the strong results. Two questions. First is regarding the domestic competition. So over the past year, we have seen e-commerce platform actively adjusting their strategies in terms of the pricing and service. Can management share your view on how you evaluate the competitive landscape? In such an environment, what would be the strategic focus for Pinduoduo business going forward?

（外語）恭喜取得優異成績。兩個問題。首先是關於國內競爭。所以在過去的一年裡，我們看到電商平台在定價和服務方面積極調整策略。管理階層能否分享您對如何評估競爭格局的看法？在這樣的環境下，拼多多業務未來的策略重點是什麼？

Second question is related to compliance. I think we noticed on the recent earnings call management spent quite a bit of time talking about compliance-related matters. Obviously, market is also paying close attention to the work that you are doing in this area. Can management explain a little bit more about the efforts you have made so far and what goals you wanted to achieve?

第二個問題與合規性有關。我想我們注意到，在最近的財報電話會議上，管理層花了相當多的時間討論與合規相關的問題。顯然，市場也密切關注你們在這方面所做的工作。管理層能否更多地解釋一下您迄今為止所做的努力以及您想要實現的目標？

[Interpreted] This is Chen Lei. Let me take your question. And regarding your first question on strategy and competition, as for competition, we find that consumers are getting used to making purchases from different platforms. And before they decide on which platform to choose from -- to shop from, consumers compare the overall shopping experience across different platforms in a few areas. For example, on product selection, pricing and also on services. And given this trend during the first quarter, we are seeing that our industry peers have significantly stepped up their efforts.

[解讀]我是陳雷。讓我回答你的問題。關於你的第一個問題，關於策略和競爭，至於競爭，我們發現消費者已經習慣了從不同的平台購買。在決定選擇哪個平台進行購物之前，消費者會在幾個方面比較不同平台的整體購物體驗。例如，產品選擇、定價和服務。鑑於第一季的這一趨勢，我們看到業界同業顯著加大了力度。

And we welcome healthy competition. And in response to competition, we always put our consumers first. Our survival depends on the value we create for our users. And with our continued investments over the years, we are very pleased to see that our value proposition of more savings and better services is being increasingly recognized and accepted by our consumers. But at the same time, we also realize that consumer demand is constantly changing and we must do our best to keep up with it.

我們歡迎良性競爭。為了因應競爭，我們始終將消費者放在第一位。我們的生存取決於我們為用戶創造的價值。隨著我們多年來的持續投資，我們非常高興地看到我們的更多節省和更好服務的價值主張越來越受到消費者的認可和接受。但同時我們也意識到消費者的需求不斷變化，我們必須盡力跟上。

And currently, consumer demands are becoming more [irrational] and also more diversified and this means, in addition to offering more savings, we are also expected to meet consumers' needs for higher quality products and also more varied consumption scenarios. And therefore, on top of deepening on more savings and better services capabilities, we also work on boosting the supply of high quality products on our platform. And by improving the overall shopping experience, we hope we can further deepen our user's trust in us.

而現在，消費者的需求越來越[非理性]，也越來越多元化，這意味著我們除了提供更多的優惠之外，還要滿足消費者對更高品質的產品、更多樣化的消費場景的需求。因此，除了深化更多的節省和更好的服務能力之外，我們還致力於增加平台上優質產品的供應。並且透過改善整體購物體驗，我們希望能夠進一步加深用戶對我們的信任。

And regarding your second question on compliance. As our business grows, consumers and regulatory bodies are holding us accountable for ever-higher compliance requirements and also the merchants doing business with us. And in order to create a trustworthy shopping environment for our users, compliance is an area where we're committed to improve and where we have invested significant resources over the past few quarters.

關於你關於合規性的第二個問題。隨著我們業務的成長，消費者和監管機構要求我們以及與我們開展業務的商家對更高的合規要求負責。為了為我們的用戶創造一個值得信賴的購物環境，合規性是我們致力於改進的一個領域，我們在過去幾季投入了大量資源。

Major regulatory framework around the world are evolving and new laws and regulations are being introduced. And therefore, we see combined capability as an important aspect of our high-quality development strategy and also compliance capabilities as one of our core capabilities of our platform.

世界各地的主要監管框架正在不斷發展，新的法律法規不斷出台。因此，我們將綜合能力視為高品質發展策略的重要組成部分，將合規能力視為平台的核心能力之一。

And during last quarter's earnings call, we also communicated that with a learning mindset, we are actively engaging with regulatory bodies in various countries. And during this process, we are proactively strengthening our compliance capabilities. We are also investing heavily in researching and understanding the regulations of each market, and we have dedicated teams to apply these research findings to all aspects of our business.

在上季的財報電話會議上，我們也表示，本著學習的心態，我們正積極與各國監管機構合作。而在這個過程中，我們也在積極強化我們的合規能力。我們也投入大量資金研究和了解每個市場的法規，我們有專門的團隊將這些研究成果應用到我們業務的各個方面。

And our initiatives in the compliance area not only cover those regulations related to our platform's own operation. For example, data-related regulations. But it also includes those related to merchant operations as well. For example, product compliance and consumer protection. And at the same time, we are also providing the necessary incentives for our small- and medium-sized merchants to conduct their businesses in a more compliant and high-quality manner, which benefits the sustainable development of our platform ecosystem.

我們在合規領域的措施不僅涵蓋與我們平台自身營運相關的法規。例如，與數據相關的法規。但它也包括與商業運營相關的內容。例如，產品合規性和消費者保護。同時，我們也為中小商家提供必要的激勵，讓他們更合規、高品質地開展業務，這有利於平台生態的永續發展。

And the growing high-quality merchant base will bring more quality product offerings onto our platform. And while compliant operations and a healthy ecosystem are fundamental to long-term development of our platform, both of which will support us in better satisfying consumers' diverse needs for high-quality consumption and thereby forming a virtuous cycle. This is my view on compliance matters. Thank you.

不斷成長的優質商家將為我們的平台帶來更多優質產品。合規營運和健康的生態系統是我們平台長期發展的基礎，這兩者都將支持我們更好地滿足消費者多樣化的高品質消費需求，從而形成良性循環。這是我對合規問題的看法。謝謝。

Your next question comes from Yang Bai with CICC.

你的下一個問題來自中金公司楊柏。

(foreign language) I have 2 questions. The first one is about the growth. The company delivered a decent top line growth for this quarter. Please, can the management share your thoughts on the growth potential of the business. Is there still room to grow? How should we think about this growth rate going forward?

（外語）我有兩個問題。第一個是關於成長。該公司本季實現了可觀的營收成長。請管理階層分享您對業務成長潛力的看法。還有成長空間嗎？我們該如何看待未來的成長率？

And my second question is about the global business. Could the management talk a bit more about your latest thinking around the strategy of your global business? How would this business look like in 5 years?

我的第二個問題是關於全球業務的。管理階層能否多談談您對全球業務策略的最新想法？ 5年後這個行業會是什麼樣子？

This is Jun. Thank you for your questions. I will take your first question about the growth. Well, rather than being upset by short-term financial results, we have always focused on long-term investments and creating long-lasting value. And in the long run, we still see many areas to improving the consumption market.

我是 Jun，謝謝您的提問。我將回答你關於成長的第一個問題。好吧，我們並沒有因短期財務表現而感到沮喪，而是始終專注於長期投資和創造長期價值。從長遠來看，我們仍然認為消費市場還有很多需要改善的地方。

The consumption market actually offers plenty of opportunities for platforms and merchants. And in addition to the potential of the overall consumer market, we also see that the online retail industry is growing quickly. E-commerce infrastructure continues to improve and new e-commerce models continue to emerge. We are actively innovating and exploring new models to create greater value for our consumers.

消費市場實際上為平台和商家提供了大量的機會。而除了整體消費市場的潛力外，我們還看到網路零售業正在快速成長。電子商務基礎設施不斷完善，電子商務新模式不斷湧現。我們積極創新、探索新模式，為消費者創造更大價值。

In the long term, we believe there's still large potential in online retail penetration. We will keep improving our services to consumers.

從長遠來看，我們認為線上零售滲透率仍有巨大潛力。我們將持續改善對消費者的服務。

From the merchant side, we are also improving the scale and the value of our services. We continue to allocate resources to support high-quality merchants who are willing to do business properly. By doing so, we hope to grow together with the merchants and further broaden the selection of quality products on our platform. A positive feedback loop is achieved when these factors work together.

從商家方面來說，我們也在提升服務的規模和價值。我們持續投入資源，支持願意好好做生意的優質商家。透過這樣做，我們希望與商家共同成長，進一步拓寬平台上優質產品的選擇。當這些因素共同作用時，就會實現正向回饋循環。

In such a rising industry, we need to keep our hats on and focus on execution faced with more competition. Our constant focus is to deliver more value for our consumers and merchants. We believe that the value we create for consumers and merchants will ultimately be reflected in our financial results. Thank you.

在這樣一個新興的行業，面對更多的競爭，我們需要保持警覺並專注於執行。我們始終致力於為消費者和商家提供更多價值。我們相信，我們為消費者和商家創造的價值最終將反映在我們的財務表現中。謝謝。

[Interpreted] This is Lei. Let me take your question on the global business strategy. First of all, our global business is still quite new and we are working very hard to grow the business in a high-quality way, while at the same time, still learning more about new business models. And we are a company that focuses heavily on execution, and after setting a strategic direction, we'll do our best to achieve it.

[解讀]這是雷。讓我回答你關於全球商業策略的問題。首先，我們的全球業務還很新，我們正在非常努力地以高品質的方式發展業務，同時仍在更多地了解新的商業模式。而我們是一家非常注重執行力的公司，制定了策略方向後，我們就會盡全力去實現它。

And as we communicated in the past few quarters, looking ahead, we will continue to focus on expanding our supply chain capabilities, our service capabilities and compliance capabilities. And in terms of supply chain, our goal is to further expand and deepen our supply chain to connect with high-quality merchants and high-quality suppliers around the world and to further broaden the product offerings on our platform.

正如我們在過去幾季所溝通的那樣，展望未來，我們將繼續專注於擴展我們的供應鏈能力、我們的服務能力和合規能力。而在供應鏈方面，我們的目標是進一步擴大和深化我們的供應鏈，連結世界各地的優質商家和優質供應商，進一步拓寬我們平台上的產品種類。

At the same time, we'll improve the efficiency of the supply chain to make it easier for merchants to sell their products and also to lower their cost of doing business. Therefore, we can -- consumers and merchants worldwide will be able to benefit from this.

同時，我們將提高供應鏈的效率，使商家更容易銷售他們的產品，並降低他們的經營成本。因此，我們可以──全世界的消費者和商家都將能夠從中受益。

In terms of service capabilities, we are exploring different fulfillment solutions to improve efficiency and also to serve more diverse consumption scenario. In addition, we are also leveraging our technology capabilities to improve our customer service and the overall shopping experience.

在服務能力方面，我們正在探索不同的履行方案，以提高效率，服務更多樣化的消費情境。此外，我們也利用我們的技術能力來改善我們的客戶服務和整體購物體驗。

And as for compliance, we have talked about it earlier on this call that this is the key to the high quality and sustainable development of our platform and it is also the foundation for creating a safe shopping environment for our users, and we will continue to invest firmly in this area.

至於合規性，我們剛才在這次電話會議上也談到了，這是我們平台高品質永續發展的關鍵，也是為用戶創造安全購物環境的基礎，我們會繼續堅定地在這一領域進行投資。

And finally, the purpose of us doing all these investments is always to bring more quality products at affordable prices to consumers worldwide and to offer them a safe, enjoyable and unique shopping experience.

最後，我們進行所有這些投資的目的始終是為全球消費者提供更多優質、價格實惠的產品，並為他們提供安全、愉快和獨特的購物體驗。

Your next question comes from Kenneth Fong from UBS.

您的下一個問題來自瑞銀集團的 Kenneth Fong。

(foreign language) I have 2 questions, the first is on profitability. The company can still achieve profitability growth in the first quarter despite intensified competition. We are also seeing good operating leverage in terms of sales and marketing expenses. Does it mean the company is slowing down the investment in marketing? More broadly, can management talk about your plan in resources allocation?

（外語）我有兩個問題，第一個問題是獲利能力。儘管競爭加劇，公司第一季仍能實現獲利成長。我們在銷售和行銷費用方面也看到了良好的營運槓桿。這是否意味著公司正在放緩行銷投入？更廣泛地說，管理階層能否談談你們的資源分配計畫？

And my second question is on agricultural strategy. Regarding agriculture, could management share how you think about the growth potential of agricultural product category? And also how do you evaluate your key competitive advantage in this area?

我的第二個問題是關於農業策略。關於農業，管理階層能否分享您如何看待農產品類別的成長潛力？您如何評價您在該領域的主要競爭優勢？

Thanks for your question. This is Jun. Let me first answer your question about profitability. Well, regarding profitability, we mentioned in our prepared remarks that the company's business does not follow a linear path. it will beat market expectation in some quarters and miss expectation in others. We suggest investors not to forecast our future growth completely based on results from few quarters.

謝謝你的提問。我是Jun，我先回答你關於獲利能力的問題。嗯，關於獲利能力，我們在準備好的發言中提到，公司的業務並不遵循線性路徑。某些季度會超出市場預期，而有些季度則會低於市場預期。我們建議投資者不要完全根據幾季的業績來預測我們未來的成長。

We always focus on the long-term growth of the company's intrinsic value and will not [smooth out] short-term financial data.

我們始終關注公司內在價值的長期成長，不會[平滑]短期財務數據。

In business execution, while we're compelled to return of investment in different markets and make prudent plans for resources allocation, we will not increase or decrease in expense items solely based on a preset budget. The company's investment in each quarter depends on the specific investment opportunities we see in the market.

在業務執行上，我們必須在不同的市場進行投資回報，審慎規劃資源配置，但我們不會僅根據預設的預算來增減費用項目。公司每季的投資取決於我們在市場上看到的特定投資機會。

Currently, we are still in a growth phase. If we see value-creation opportunities in the future, we will investment (inaudible). These investments marked bring fluctuations to short-term profitability, but will help us grow intrinsic value in the long run. This is our view on profitability. Thank you.

目前，我們仍處於成長期。如果我們看到未來的價值創造機會，我們就會投資（聽不清楚）。這些投資明顯會為短期獲利帶來波動，但長期來看將有助於我們增加內在價值。這是我們對獲利能力的看法。謝謝。

[Interpreted] This is Zhao Jiazhen. Let me take your question on agriculture. Agriculture is our foundation. We started our business with retailing of agriculture products. We have been investing in agriculture for many years, and we initiated the new model of group purchase for agriculture products. We have also innovated many agricultural solutions such as the direct delivery of agricultural products from the place of origin and our Duo Duo Grocery, building up a platform that connects local supply to local demand.

[解讀]我是趙家珍。讓我回答你關於農業的問題。農業是我們的基礎。我們的業務始於農產品零售。我們多年來一直投資農業，並首創農產品團購新模式。我們也創新了農產品產地直送、多多雜貨等農業解決方案，建構了本地供應與本地需求的對接平台。

Agriculture is a challenging industry. With low product standardization and decentralized supply, storing and transporting agricultural products can be quite difficult. Currently, the online penetration rate of agriculture products remains relatively low, and there is still plenty of room for improvement in digitalizing farmers' operations. Therefore, we have taken it upon ourselves to invest in this industry and dive deep into transforming the agricultural supply chain. Throughout this journey, we have accumulated a lot of valuable experience and enhanced our team's capabilities.

農業是一個充滿挑戰的行業。由於產品標準化程度低、供應分散，農產品儲存運輸難度高。目前，農產品線上滲透率仍較低，農民經營數位化仍有大幅提升空間。因此，我們主動投資這個產業，深耕農業供應鏈轉型。在這過程中，我們累積了許多寶貴的經驗，也提升了團隊的能力。

Agricultural products are now a very important high-frequency category, and Pinduoduo has always been a full category e-commerce platform featuring agriculture products.

農產品是現在非常重要的高頻品類，而拼多多一直是個以農產品為特色的全品類電商平台。

We're still making firm investments in agriculture. In the fourth Smart Agriculture Competition launched last month, we focused on AI planting and encouraged participants to explore optimization and commercialization of agriculture production. Our agriculture cloud initiative also continued to bring digital solutions to farmers in various agricultural production regions. We will continue to invest in diverse aspects of agricultural production and supply chain in the future.

我們仍在對農業進行堅定的投資。上個月啟動的第四屆智慧農業大賽，我們以人工智慧種植為主題，鼓勵參賽者探索農業生產的優化和商業化。我們的農業雲計畫也持續為各農業產區的農民帶來數位化解決方案。未來我們將繼續在農業生產和供應鏈的各個方面進行投資。

Through continued investment in agriculture, we hope to promote modernization of the agricultural industry and enhance the quality and efficiency of the supply chain. At the same time, we help farmers increase their value and income, create local jobs thereby supporting the overall revitalization of rural communities. Thank you.

我們希望透過對農業的持續投入，推動農業產業現代化，提升供應鏈品質與效率。同時，我們幫助農民增加價值和收入，為當地創造就業機會，並支持農村社區的整體振興。謝謝。

Thank you, Jiazhen. And also thank you, Kenny. Thank you all once again for joining us today, and it's about time. And if you have any further questions, please reach out to our Investor Relations team. Thank you, and have a great day.

謝謝你，家珍。也要謝謝你，肯尼。再次感謝大家今天加入我們，時間到了。如果您有任何其他問題，請聯絡我們的投資者關係團隊。謝謝您，祝您有美好的一天。

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

女士們、先生們，今天的會議到此結束。感謝您的參與。你們都可以斷開連線。

[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。