拼多多 (PDD) 2024 Q2 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to PDD Holdings Inc., second-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公司 2024 年第二季財報電話會議。（操作員指示）請注意，今天的會議正在錄音。

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

現在我想將會議移交給今天的主持人。先生，請說。

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 investors.pddholdings.com, as well as through the GlobeNewswire services.

謝謝您，接線生。大家好，感謝大家今天加入我們。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 以及透過 GlobeNewswire 服務上查閱。

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

在我們開始之前，我想請您參閱收益新聞稿中的安全港聲明，該聲明適用於本次電話會議，因為我們將做出某些前瞻性陳述。此外，本次電話會議也包括某些非公認會計準則財務指標的討論。請參閱我們的收益報告，其中包含非 GAAP 指標與 GAAP 指標的對帳。

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. 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, 2024.

今天參加電話會議的有我們的董事長兼聯席執行長陳雷先生；趙家振先生，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。雷和家珍將對我們過去一個季度的表現和戰略重點做一些總體評價。然後，Jun 將向我們介紹截至 2024 年 6 月 30 日的第二季財務表現。

During the Q&A session, Lei and Jiazhen will answer questions in Chinese that will help translate. Please kindly note that the English translation is for reference only. And in case of any discrepancy, statements in the original language should prevail.

在問答環節，雷和家珍將用中文回答問題，以幫助翻譯。請注意，英文翻譯僅供參考。若有任何差異，應以原文表述為準。

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

現在我很高興介紹我們的董事長兼聯合執行長陳雷先生。雷，請說。

Thank you. Hello, everyone. Thank you, all, for joining our earnings call for the second quarter of 2024. In the first half of 2024, we have remained committed to our high-quality development strategy and consistently invested in our platform ecosystem.

謝謝。大家好。感謝大家參加我們 2024 年第二季的財報電話會議。2024年上半年，我們堅持高品質發展策略，持續投入平台生態。

We received positive feedback for these efforts. Consumer experience and our services have continued to improve. A number of new merchants and products have grown significantly. This further meets the diverse needs of our consumers.

我們這些努力得到了正面的回饋。消費者體驗和我們的服務不斷改善。新商家、新產品數量大幅成長。這進一步滿足了我們消費者的多樣化需求。

This quarter, we benefited from the improving macro environment and achieved robust financial results. Our total revenues reach RMB97 billion, which represents a year-on-year increase of 86%. However, we are seeing many new challenges ahead, from changing consumer demand, intensifying competition, and uncertainties in global environment.

本季度，我們受惠於宏觀環境的改善，並取得了強勁的財務表現。我們的總收入達到人民幣970億元，年增86%。然而，我們也看到未來仍有許多新的挑戰，包括消費者需求的變化、競爭的加劇以及全球環境的不確定性。

As a result, we will enter a new phase of high-quality development that calls for increased investments. And our profitability will affect it as a result. Since the beginning of this year, we are seeing that consumer preferences have become more diverse.

因此，我們將進入需要加大投入的高品質發展的新階段。我們的獲利能力也會因此受到影響。今年以來，我們看到消費者的偏好變得更加多元。

On one hand, consumers are increasingly choosing experience-based consumption over material purchases. On the other hand, there is a growing emphasis on rational consumption. Consumers are making more thoughtful decisions to balance quality and value.

一方面，消費者越來越多地選擇體驗式消費而非物質購買。另一方面，人們越來越重視理性消費。消費者正在做出更深思熟慮的決定來平衡品質和價值。

In response, we have collaborated with high-quality brands and manufacturers to create customized products that cater to these diverse demands. This approach has not only propelled many new brands to success, but also revived the popularity of many established brands. So this is just one example of how digital technology and manufacturing can come together to create new opportunities.

作為回應，我們與優質品牌和製造商合作，打造滿足這些多樣化需求的客製化產品。這一做法不僅推動了許多新品牌獲得成功，也恢復了許多老牌品牌的知名度。這只是數位科技和製造業如何結合在一起創造新機會的一個例子。

At this moment, the competition among e-commerce platforms is quickly escalating. And therefore, it's even more important that we go back to the basics of supply chain improvement and invest firmly in supply chain efficiencies.

目前，電商平台之間的競爭正在迅速升級。因此，我們更重要的是回歸供應鏈改善的基礎並堅定地投資於供應鏈效率。

This will be the key focus for our high-quality development going forward. For example, in the second quarter, our team continued to bring our agriculture cloud initiative to major production regions, helping local growers to bring seasonal foods directly to people's homes and in this process, promoting local agricultural brands.

這將是我們下一步高品質發展的重點。例如，在第二季度，我們的團隊繼續將農業雲計畫推廣到主要產區，幫助當地種植者將時令食品直接送到人們的家中，並在此過程中推廣當地的農業品牌。

In addition, to further improve the agricultural supply chain, nurture research talents, and promote technology inclusion, we continue to support the Smart Agriculture Competition and the Pinduoduo Academy Growing Competition. The agriculture research fund we established, in cooperation with China Agricultural University, has also started to bear fruit.

此外，為進一步完善農業供應鏈、培養科研人才、促進技術普惠，我們持續支持智慧農業比賽和拼多多學院種植比賽。我們與中國農業大學合作設立的農業研究基金也開始達到成效。

On the manufacturing side, we are pleased to find that many small- and medium-sized businesses have been using the digital capabilities from our platform to support product iteration and innovation. Through this process, they have not only emerged stronger from the competition, but also led the local industries towards high-quality development.

在製造方面，我們很高興地發現許多中小企業已經在利用我們平台的數位化能力來支援產品的迭代和創新。他們不僅在競爭中脫穎而出，也引領當地產業邁向高品質發展。

These results have strengthened our commitment to further invest in high-quality development. We have communicated on a number of occasions that the profit growth in the past few quarters should not be used as a long-term guidance. And it is a result of mismatch between the business investment and the financial reporting cycles.

這些成果堅定了我們進一步投入高品質發展的決心。我們已多次表示，過去幾季的利潤成長不應作為長期指引。這是由於企業投資與財務報告週期不符所造成的。

As we enter a new investment phase, I would like to make it clear to our investors that our process will gradually trend down starting in Q3, and there will be fluctuations or rebounds in the short term. In the long run, the decline in profitability is inevitable.

當我們進入新的投資階段時，我想向我們的投資者明確一點，從第三季開始，我們的進程將逐漸呈下降趨勢，短期內會出現波動或反彈。從長期來看，獲利能力下滑是不可避免的。

Currently, our platforms have reached a considerable scale. They will remain committed to high-quality development and a focus on creating a healthy and sustainable platform ecosystem. And to this end, we adopt the necessary policies to vigorously support high-quality merchants and tackle low-quality ones.

目前我們的平台已經達到了相當的規模。他們將繼續致力於高品質發展，致力於打造健康、永續的平台生態系統。為此，我們採取必要政策，大力扶持優質商戶，打擊劣質商戶。

On the supply side, we will invest substantial resources to support high-quality merchants who are willing to innovate and improve quality. And we will offer a significant transaction fee reduction to these merchants, with an initial target of RMB10 billion in the first year. By doing so, our goal is to provide clear initial incentives for the merchants to join high-quality developments.

在供給側，我們會投入大量資源，扶持勇於創新、提升品質的優質商家。我們將為這些商家提供大幅的交易費用減免，第一年的初步目標是達到100億元。透過這樣做，我們的目標是為商家加入高品質發展提供明確的初步誘因。

On the other hand, we will further deepen our trust and safety capabilities to improve our merchant ecosystem and strengthen our supply chain. We are actively identifying and removing a lot of bad actors from our platforms, and we will continue to strengthen these efforts.

另一方面，我們將進一步深化信任和安全能力，以改善我們的商家生態系統並加強我們的供應鏈。我們正在積極識別和清除我們平台上的許多不良行為者，我們將繼續加強這些努力。

At the moment, we have already started a new round of investments in operations and R&D to streamline the merchant onboarding and product listing process. Leveraging technology, we will gradually improve the quality of the products sold on our platforms and create a fair and transparent business environment for our merchants.

目前，我們已經開始了新一輪的營運和研發投入，以簡化商家入職和產品上架流程。我們將運用科技手段，逐步提昇平台商品的質量，為商家創造公平、透明的經營環境。

In this process, we believe that sacrificing short-term profits is necessary. A clear downward trend in profits is expected. We are prepared to invest firmly and patiently in the platform's long-term health. This is a decision that has received unanimous support from all our management team.

在這個過程中，我們認為犧牲短期利潤是必要的。預計利潤將出現明顯下降趨勢。我們準備堅定而耐心地投資於該平台的長期健康。這項決定得到了我們整個管理團隊的一致支持。

And now, moving on to the global business. In the past few quarters, we have noticed the rapid shift in external environment, which brought significantly greater uncertainty. Our operations have also become increasingly affected by non-business factors. And meanwhile, the competition we face is growing stronger. Competition is here to stay and is expected to intensify in our industry.

現在，我們來談談全球業務。過去幾個季度，我們注意到外部環境迅速轉變，帶來的不確定性顯著增加。我們的營運也越來越受到非商業因素的影響。同時，我們面臨的競爭也日益激烈。我們行業的競爭將持續下去，而且預計還會更加激烈。

Our global business is facing significant uncertainty from intense competition and evolving external environment. These factors combined will inevitably cause fluctuations to our business. As shown in this quarter's results, high revenue growth is not sustainable. And a downward trend in profitability is inevitable.

由於競爭激烈和外部環境不斷變化，我們的全球業務面臨巨大的不確定性。這些因素結合在一起將不可避免地為我們的業務帶來波動。從本季的業績可以看出，高收入成長是不可持續的。獲利能力下滑的趨勢也是不可避免的。

And finally, as the environment evolves and our company continues to grow, our management team and I often discuss how we can better fulfill our corporate social responsibilities. We believe there is still many things that can be done, for example, through enhancing our governance structure and adjusting resources to better adapt to a changing times.

最後，隨著環境的變化和公司的發展，我和我們的管理團隊經常討論如何更好地履行企業社會責任。我們相信還有很多事情可以做，例如透過完善我們的治理結構和調整資源以更好地適應時代的變化。

We can also do more to give back to society to support agriculture and other industry sectors, and offer greater support to the people who need it most. We fully recognize that simply measuring our company's performance by short-term capital returns no longer aligns with where we are today. As a global company in this era, we are committed to driving innovation, adapting to change, and taking on greater social responsibilities in the regions across the globe.

我們也可以做更多回饋社會的事情，支持農業和其他產業部門，並向最需要幫助的人提供更多支持。我們充分認識到，僅僅透過短期資本回報來衡量公司績效已不再適合我們目前的狀況。作為時代的全球性公司，我們致力於推動創新，適應變化，並在全球各個地區承擔更大的社會責任。

Now, I will hand it over to our Co-CEO, Zhao Jiazhen, to talk more about our operations in the second quarter.

現在，我將把時間交給我們的聯席執行長趙家珍，來進一步介紹我們第二季的營運情況。

(interpreted) Thank you, Lei. Hello, everyone. This is Zhao Jiazhen. Thank you, all, for joining our earnings call for the second quarter of 2024.

（翻譯）謝謝你，雷。大家好。我是趙家珍。感謝大家參加我們 2024 年第二季的財報電話會議。

In the first half of this year, online retail in China continues to perform well, bringing fresh energy to the overall consumption market. Over the past quarter, we continue to advance our high-quality development strategy, making steady long-term investments to support both supply and demand side of our platforms. Looking ahead to the second quarter of this year and beyond, we're very confident in the future of the Chinese consumer market.

今年上半年，我國網路零售持續表現良好，為整體消費市場注入了新的活力。過去一個季度，我們持續推動高品質發展策略，穩步進行長期投入，支援平台的供給側和需求側。展望今年第二季及以後，我們對中國消費市場的未來非常有信心。

This quarter, we continued to focus on consumer demand, further enhanced our more savings and better services capabilities, and upgraded our after-sales services to provide consumers with more value and more enjoyable shopping experiences.

本季，我們持續關註消費者需求，進一步增強省心、優服務能力，升級售後服務，為消費者提供更有價值、更愉快的購物體驗。

During the agents promotion, we continue to provide consumers with straightforward savings and introduced new promotions to meet the increasingly diverse consumer preferences. We also brought product categories like fresh produce, daily necessities, and high-end appliances into third-and fourth-tier cities, and made our contribution to consumption upgrades across the regions.

在代理商促銷期間，我們持續為消費者提供直覺的優惠，並推出新的促銷活動，以滿足日益多樣化的消費者偏好。我們也將生鮮、日用百貨、高端家電等品類帶入三、四線城市，為區域消費升級做出貢獻。

On the supply side, we stepped up our support for quality merchants and brands, directing more traffic to high-quality products through the 10 Billion Program and fresh sales. We have also focused on enhancing the quality and efficiency of the supply chain, bringing more value to the agricultural areas and industry regions, and benefiting more producers of quality agricultural and domestic goods.

供給面方面，加大對優質商家和品牌的扶持力度，透過百億計畫、生鮮等方式為優質商品引流。我們也著重提升供應鏈品質和效率，為農業地區和工業區域創造更多價值，讓更多優質農產品和國內商品生產者受益。

To support the countryside home appliance program and the consumer goods trade-in, we invested RMB1 billion during the first week of June 18. This boost led to remarkable growth for many local brands in categories such as electronics, home appliances, kitchenware, and household products.

為支持家電下鄉和消費品以舊換新，我們在6月18日第一週就投入了10億元。這一推動力帶動了電子、家電、廚具和家居用品等類別的許多本土品牌實現了顯著增長。

For example, utilizing our digital technology, we helped a local brand with 36 years of history, to understand the latest market demand and return to growth with a blockbuster product. It achieved RMB100 million in sales after joining the platform for just two months.

例如，我們利用數位技術幫助一個擁有36年歷史的本土品牌了解最新的市場需求，並透過一款轟動一時的產品恢復成長。入駐平台僅兩個月，銷售額就突破1億元。

In addition, the number of new merchants and new products supplies on our platforms saw meaningful growth. In the first week of June 18, the number of merchants participating in the 10 Billion Program grew by over 90% year on year. And the number of agricultural merchants increased by 83% year on year. Our platform also attracted a great number of new merchants in categories such as electronics, home appliances, and cosmetics.

此外，我們平台上的新商家和新產品供應數量也實現了顯著成長。6月18日首周，參與百億計畫的商家數量較去年同期成長超90%。其中農業商戶數量較去年同期成長83%。我們的平台也吸引了大量電子、家電、化妝品等類別的新商家。

To create a better business environment for high-quality merchants, we have started a new round of investments in operations and R&D. Our goal is to build industry-leading compliance capabilities and foster a healthy platform ecosystem. For example, we continue to streamline our merchant onboarding and product listing processes to better control product quality and offer consumers a safe and reliable shopping experience.

為了為優質商家創造更好的營商環境，我們已啟動新一輪的營運和研發投入。我們的目標是打造業界領先的合規能力，培育健康的平台生態系統。例如，我們繼續簡化商家入職和產品清單流程，以更好地控制產品品質並為消費者提供安全可靠的購物體驗。

We integrate automatic technology for product screening with thorough manual reviews by our trust and safety chain. This approach ensures rigorous oversight on product compliance while avoiding unintended penalties for quality products and merchants.

我們將自動化產品篩選技術與信任和安全鏈的全面人工審查相結合。這種方法可確保對產品合規性進行嚴格監督，同時避免對優質產品和商家造成意外的處罰。

At the same time, we have invested heavily in developing comprehensive user-friendly training materials for merchants to boost their compliance capabilities. This effort aims to enhance our supply chain quality, while helping merchants lower compliance costs and expand their market reach.

同時，我們投入大量資金為商家開發全面、易用的培訓材料，提升商家的合規能力。此舉旨在提高我們的供應鏈質量，同時幫助商家降低合規成本並擴大市場範圍。

We also deeply recognize that building a healthy platform ecosystem and achieving high-quality development is a gradual process, especially given the considerable scale of our platforms. So we are committed to a dual approach, one side providing strong support to high-quality merchants while addressing issues with low-quality ones. This way, we aim to create a healthy and sustainable ecosystem.

我們也深刻認識到，建立健康的平台生態、實現高品質的發展是一個漸進的過程，特別是考慮到我們平台的規模相當大。因此，我們致力於雙管齊下，一方面為優質商家提供強而有力的支持，另一方面解決低品質商家的問題。透過這種方式，我們的目標是創造一個健康、永續的生態系統。

In this process, we will inevitably face short-term costs. As Lei has mentioned, our managing team is fully committed to investing heavily for the long-term health of our platforms. While profits might vary or even rebound in the next few quarters, it's unavoidable that profitability will turn lower over the long term.

在這個過程中，我們不可避免地會面臨短期成本。正如雷所提到的，我們的管理團隊全心投入，以確保我們平台的長期健康發展。儘管未來幾季利潤可能會有所變化甚至反彈，但長期來看獲利能力下降是不可避免的。

As the largest platform for agricultural products in China, this quarter, we further advanced our agricultural strategy. We launched the Science and Technology Courtyard project in Yunnan, Dali; and Shaanxi, Foping, and also kicked off the fourth Smart Agricultural Competition in collaboration with top research teams from around the world. We will continue to increase investments in agricultural research to promote the commercial application of research findings and accelerate the market adoption of high-quality agricultural products.

作為國內最大的農產品平台，本季我們進一步推動農業戰略。在雲南大理啟動科技大院計畫；並與全球頂尖科學研究團隊合作，啟動第四屆智慧農業大賽。持續加大農業科研投入，促進科技成果轉化，加速優質農產品市場化。

Meanwhile, we also leverage our strength as a platform, working with ecosystem partners to proactively take on more social responsibilities. We invested tens of millions in [reading months] and subsidies to launch the seventh Duo Duo Reading Month. This initiative provides direct discounts on thousands of good products, making knowledge more accessible to more people.

同時，我們也發揮平台優勢，攜手生態夥伴積極承擔更多社會責任。我們投入數千萬元【讀書月】和補貼，開展第七屆多多讀書月。這項措施為數千種優質產品提供直接折扣，讓更多人獲得知識。

2024 is a critical year on our path towards high-quality development. We will focus on creating healthy and sustainable platform ecosystem and empowering our ecosystem partners with more platform resources and technical support. Together, we will lay a solid foundation towards the high-quality development of our platform.

2024年，是我們邁向高品質發展的關鍵一年。我們將致力於打造健康、永續的平台生態，為生態合作夥伴提供更多的平台資源和技術支援。我們將共同為平台的高品質發展奠定堅實的基礎。

Next, I will hand over to Jun. She will provide an update on our financial performance for the second quarter.

接下來，我將把時間交給 Jun，她將介紹我們第二季的財務表現。

Thank you, Jiazhen. Hello, everyone. Let me walk you through our financial performance for the second quarter ended June 30, 2024.

謝謝你，家珍。大家好。讓我向您介紹我們截至 2024 年 6 月 30 日的第二季的財務表現。

In terms of income statements in the second quarter, our total revenues increased 86% year over year to RMB97.1 billion. This was mainly driven by an increase in revenues from online marketing services and transaction services.

從第二季的損益表來看，我們的總營收年增86%至人民幣971億元。這主要得益於網路行銷服務和交易服務收入的成長。

Revenues from online marketing services and others were RMB49.1 billion this quarter, up 29% from the same quarter of 2023. Revenues from transaction services were RMB47.9 billion, up 234% from the same quarter last year. In Q2, our top-line growth slowed down significantly versus the last few quarters. Further slowdown is inevitable as a result of competition and global uncertainties.

本季網路行銷服務及其他收入為人民幣491億元，較2023年同期成長29%。交易服務收入為479億元，較去年同期成長234%。第二季度，我們的營收成長與前幾季相比大幅放緩。由於競爭和全球不確定性，經濟進一步放緩是不可避免的。

Moving on to cost and expenses, total cost of revenues increased 80% from RMB18.7 billion in Q2 2023 to RMB33.7 billion this quarter, mainly due to increasing fulfillment fees and payment processing fees. On a GAAP basis, total operating expenses this quarter increased 48% to RMB30.8 billion from RMB20.9 billion in the same quarter of 2023.

談到成本和費用，總收入成本從 2023 年第二季度的人民幣 187 億元增加 80% 至本季度的 337 億元，主要是由於履行費和支付處理費的增加。以美國公認會計準則計算，本季總營運費用較 2023 年同期的 209 億元 209 億元增加 48% 至 308 億元。

On a GAAP basis, total operating expenses increased to RMB28.4 billion this quarter from RMB19 billion in Q2 2023. In Q2, we continued to invest firmly to support the high-quality developments of our platforms. Our total non-GAAP operating expenses as a percentage of total revenue this quarter was 29% compared to 36% in the second quarter last year.

依照美國公認會計準則，本季總營運費用從 2023 年第二季的 190 億元人民幣增至 284 億元。第二季度，我們持續堅定投入，支持平台高品質發展。本季我們的非公認會計準則總營業費用佔總收入的百分比為 29%，而去年第二季為 36%。

Looking into specific expense items, our non-GAAP sales and marketing expenses this quarter were RMB25.4 billion, up 54% versus the same quarter last year. Throughout Q2, we stepped up our promotional efforts to give back to consumers and investing marketing to promote our platforms. On a non-GAAP basis, our sales and marketing expenses as a percentage of our revenues this quarter was 26% versus 32% for the same quarter last year.

具體費用項目來看，本季我們的非美國通用會計準則銷售及行銷費用為254億元人民幣，較去年同期成長54%。在整個第二季度，我們加大了促銷力度，回饋消費者，並投入行銷來推廣我們的平台。根據非公認會計準則，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 32%。

Our non-GAAP general and administrative expenses were RMB594 million versus RMB370 million in the third quarter of 2023. Our research and development expenses were RMB2.4 billion this quarter on a non-GAAP basis, up 15% year over year, and RMB2.9 billion on a GAAP basis. It's critical that we maintain our long-term focus and continue to invest in R&D to drive supply chain efficiency and customer experience.

我們的非公認會計準則一般及行政費用為 5.94 億元，而 2023 年第三季為 3.7 億元。本季我們的研發費用以非美國通用會計準則計算為 24 億元，年增 15%；以美國通用會計準則計算為 29 億元。至關重要的是，我們要保持長期關注，並繼續投資研發，以提高供應鏈效率和客戶體驗。

On a GAAP basis, operating profit for the quarter was RMB32.6 billion versus RMB12.7 billion in the second quarter last year. Non-GAAP operating profit was RMB35 billion versus RMB14.6 billion in the same quarter last year. Non-GAAP operating profit margin was 36% this quarter compared with 28% for the same quarter last year.

根據美國通用會計準則，本季營業利潤為人民幣326億元，去年第二季為人民幣127億元。非美國通用會計準則營業利潤為350億元人民幣，去年同期為146億元。本季非公認會計準則營業利益率為 36%，去年同期為 28%。

Net income attributable to ordinary shareholders was RMB32 billion for the quarter compared to RMB13.1 billion in the same quarter last year. Diluted earnings per ADS was RMB23.14, and diluted earnings per ADS was RMB21.61 versus base earnings per ADS of RMB9.64 and diluted earnings per ADS of RMB9 in the same quarter of 2023.

本季歸屬於普通股股東的淨利為320億元人民幣，去年同期為131億元。每股美國存託憑證攤薄收益為人民幣 23.14 元，每股美國存託憑證攤薄收益為人民幣 21.61 元，而 2023 年同期每股美國存託憑證基本收益為人民幣 9.64 元，每股美國存託憑證攤薄收益為人民幣 9 元。

Non-GAAP net income attributable to ordinary shareholders was RMB34.4 billion versus RMB15.3 billion in the same quarter last year. Non-GAAP diluted earnings per ADS was RMB23.24 versus RMB10.47 in the same quarter of 2023. As noted last quarter, our business does not follow a linear path, and profitability in the last few quarters does not represent future.

非美國通用會計準則下歸屬於普通股股東的淨利為344億元人民幣，去年同期為153億元。非公認會計準則每股美國存託憑證攤薄收益為人民幣 23.24 元，而 2023 年同期為人民幣 10.47 元。正如上個季度所指出的，我們的業務並不遵循線性路徑，過去幾季的獲利能力並不代表未來。

Looking ahead, we will reinvest firmly to support a healthy ecosystem that encourages high-quality merchants. Our profitability may fluctuate in the short term, but will gradually trend lower in the long run. This is inevitable as we focus on the long-term, high-quality development of our platforms.

展望未來，我們將堅定地再投資，以支持鼓勵優質商家的健康生態系統。我們的獲利能力在短期內可能會出現波動，但長期來看會逐漸趨於下降。這是不可避免的，因為我們專注於平台的長期、高品質發展。

That concludes income statements. Now let me move on to cash flow. Our net cash generated from operating activities was RMB43.8 billion, compared with RMB23.4 billion in the same quarter last year. As of June 30, 2024, we have RMB284.9 billion in cash, cash equivalents, and short-term investments.

以上就是損益表的全部內容。現在讓我來談談現金流。我們經營活動產生的淨現金為438億元，去年同期為234億元。截至2024年6月30日，我們擁有現金、現金等價物及短期投資人民幣2,849億元。

Thank you. This concludes my prepared remarks.

謝謝。我的準備好的發言到此結束。

Thank you, Jun. Next, we will 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.

謝謝Jun。在今天的問答環節中，雷佳珍和王軍將在線上回答分析師的提問。

We will take a maximum of two questions from each analyst. Lei and Jiazhen will answer questions in Chinese and will help translate for convenience purpose. Operator, we are open for questions.

我們將向每位分析師最多回答兩個問題。雷和家珍將用中文回答問題，並協助翻譯以方便大家。接線員，我們願意回答您的問題。

(Operator Instructions) Joyce Ju, Bank of America.

(操作員指示) Joyce Ju，美國銀行。

(interpreted) I will translate for myself. I have two questions. My first question is, we have seen Duo Duo's profit growth remain robust this quarter. But in the prepared remarks, management mentioned there will be increased investment and profitability fluctuations caused by the competition.

（翻譯）我會親自翻譯。我有兩個問題。我的第一個問題是，我們看到本季多多的利潤成長保持強勁。但管理層在準備好的評論中提到，競爭會導致投資增加和獲利波動。

Could management share how you assess the profit plan in the future? In addition, in terms of shareholder returns, does management have any plan for share buyback or dividend payout?

管理階層能否分享您對未來獲利計畫的評估？此外，在股東回報方面，管理階層是否有股票回購或股利的計畫？

My second question is, in the prepared remarks, we noted that management emphasized a lot on the merchant ecosystem and the merchant-supporting policies. Could you please elaborate a bit on your understanding on how you see merchant ecosystem, how to review it, how to understand it, and why this will become the focus of the platform in the next stage? Thanks a lot.

我的第二個問題是，在準備好的評論中，我們注意到管理階層非常重視商家生態系統和商家支援政策。能否請您闡述您怎麼看待商家生態，如何評價它，如何理解它，以及為什麼它會成為平台下一階段的重點？多謝。

(interpreted) Hi, this is Chen Lei. Let me take your first question.

(翻譯) 大家好，我是陳磊。讓我回答你的第一個問題。

We have communicated on a number of occasions that profit growth in the past few quarters should not be used as long-term guidance. And it was a result of the mismatch between the business investment and financial reporting cycles. In addition, our business is currently facing intense competition and shifting external factors, which will inevitably bring fluctuations to our business and also slow down our top-line growth.

我們已多次表示，過去幾季的利潤成長不應作為長期指引。這是由於企業投資和財務報告週期不匹配所造成的。此外，我們的業務目前面臨著激烈的競爭和不斷變化的外部因素，這不可避免地會為我們的業務帶來波動，並減緩我們的營收成長。

We are now entering a new phase of a steady transformation towards high-quality development. And we need to invest patiently in the platform's long-term health. And to support a sustainable development of our platform ecosystem, we will invest substantial resources over the next 12 months to support high-quality merchants.

目前，我們正邁入穩定轉型、邁向高品質發展的新階段。我們需要耐心投資於該平台的長期健康。為了支持我們平台生態系統的永續發展，我們將在未來 12 個月內投入大量資源來支持優質商家。

And looking ahead, our profitability may fluctuate in the short run. But directionally, it will gradually enter a downward trend. And empowering and supporting merchants is crucial to building our high-quality supply chain and also creating a robust platform ecosystem.

展望未來，我們的獲利能力短期內可能會出現波動。但從方向來看，會逐漸進入下降趨勢。授權和支援商家對於我們打造高品質的供應鏈和強大的平台生態系統至關重要。

Over the long run, this will start off a virtuous cycle for the platform. And therefore, we will remain committed to patient investments even though short-term profits will be affected.

從長遠來看，這將為平台開啟良性循環。因此，即使短期利潤會受到影響，我們仍將繼續堅持耐心投資。

In terms of shareholder returns, the company is still in the investment phase. And we are facing intense competition on different fronts and also uncertainties from external factors. And therefore, our management team and I unanimously believe that it is not an appropriate time for share repurchases or dividends. And in the foreseeable years ahead, we also do not see such a need. Thank you.

從股東回報來看，公司仍處於投資階段。我們面臨著不同方面的激烈競爭，以及來自外部因素的不確定性。因此，我們的管理團隊和我一致認為現在不是回購股票或發放股利的適當時機。而且在未來可預見的幾年裡，我們也沒有看到這種需求。謝謝。

(interpreted) Hi, this is Zhao Jiazhen. Let me take your question on merchant ecosystem. Our platform is a mutually dependent community as merchants, consumers, and our operations teams. Merchants are our key partners in our joint efforts to serve consumers.

(翻譯)你好，我是趙家珍。讓我回答您關於商家生態系統的問題。我們的平台是一個由商家、消費者以及我們的營運團隊組成的相互依賴的社群。商家是我們共同服務消費者的重要夥伴。

The increased competition in our industry brings new demands on our community. In this process, we feel a strong sense of responsibility as a platform. On one side, we must ensure strict oversight of product quality to prevent substandard goods and protect consumer rights. On the other side, we must ensure fairness so that dedicated high-quality merchants can earn meaningful rewards, which is essential for the healthy development of platform ecosystem.

我們行業競爭的加劇為我們的社區帶來了新的要求。在這個過程中，我們作為平台感受到強烈的責任感。一方面，要嚴格產品品質監管，杜絕品質問題，保障消費者權益。另一方面，我們必須保證公平，讓認真負責的優質商家能夠獲得有意義的回報，這對於平台生態的健康發展至關重要。

To achieve balance in the ecosystem, we have no choice but to firmly transition towards high-quality development. Therefore, we will adopt the necessary policies to provide strong support to high-quality merchants while tackling low-quality ones.

要實現生態系統的平衡，我們別無選擇，必須堅定地轉向高品質發展。所以我們會採取必要的政策，對優質商家給予大力扶持，對劣質商戶進行嚴厲打擊。

On the supply side, we will strongly support merchants with product and technology innovation capabilities. We will significantly reduce transaction fees for these high-quality merchants with an expected amount of RMB10 billion in the following years. We will continue to enhance incentives for the merchants to drive our high-quality development of ecosystem.

在供給側，我們將大力支持有產品和技術創新能力的商家。對於這些優質商戶，我們將大幅降低交易費用，預計未來幾年將達到100億元。我們將繼續增強對商家的激勵，推動我們的生態系統高品質發展。

On the other side, we will further enforce strong governance of our platform and merchants. This includes identifying and removing unlawful merchants from our platform to strengthen our supply chain. As of now, we have already started a new round of investment in operations and technology to optimize the merchant onboarding and product listing processes, use advanced technology to ensure strict product quality control, and create a better environment for our high-quality merchants.

另一方面，我們將進一步加強對平台和商家的嚴格治理。這包括識別和刪除我們平台上的非法商家，以加強我們的供應鏈。目前，我們已經啟動新一輪營運和技術投入，優化商家入駐和上架流程，利用先進技術嚴把產品品質關，為優質商家創造更好的環境。

We grow together with our high-quality merchant partners, working together to offer consumers high-quality products and services. The consumers can in turn bring new growth opportunities to the ecosystem, creating a virtuous cycle, which is the key to the long-term healthy development of our community.

我們與優質商家夥伴共同成長，共同為消費者提供優質的產品與服務。消費者反過來可以為生態系統帶來新的成長機會，形成良性循環，這是我們社區長期健康發展的關鍵。

To achieve the goal of high-quality development of the merchant ecosystem, our management has reached the consensus to firmly commit to long-term investments and create a healthy, sustainable platform ecosystem. Thank you, all.

為實現商戶生態高品質發展的目標，我們的管理階層已達成共識，堅定致力於長期投入，打造健康、永續的平台生態。謝謝大家。

Operator, let's move on to the next analyst on the line.

接線員，讓我們接通下一位分析師。

Yang Bai, CICC.

白楊，中金公司。

(interpreted) Thank you, management. I have two questions. The first one, we have observed that the growth of your global business remains strong. Some external data suggests that the growth rates and the investment in certain markets are slowing down.

（翻譯）謝謝管理層。我有兩個問題。第一，我們觀察到你們全球業務的成長依然強勁。一些外部數據表明，某些市場的成長率和投資正在放緩。

In your prepared remarks, we also noticed that the company takes a relatively cautious approach towards the future development of your global business. Is the company trying to manage some risks proactively? Could the management please elaborate on your thinking in this regard?

從你們的準備好的發言中，我們也注意到，公司對未來全球業務的發展採取了相對謹慎的態度。公司是否正在嘗試主動管理一些風險？管理階層能否詳細闡述您在這方面的想法？

The second one is, we saw that the overall competitive environment is quite intense. Has it caused any impact on the company's growth? In such a competitive environment, how will the company adjust your investment priorities? And how does the management think about your position? Thank you.

第二，我們看到整體的競爭環境還是比較激烈的。這對公司的發展有影響嗎？在如此競爭的環境下，公司將如何調整投資重點？管理層如何看待您的職位？謝謝。

(interpreted) Hi, this is Lei. Let me take your question on the global business.

（翻譯）你好，我是雷。讓我回答您關於全球業務的問題。

Our global business is still evolving, and we are actively exploring new opportunities. Currently, our global business has entered over 70 markets. And during this call, we have always prioritized compliance and see it as the foundation for our development. And over the past few quarters, we have invested significant resources in building a safe shopping environment.

我們的全球業務仍在發展，我們正在積極探索新的機會。目前，我們的全球業務已進入70多個市場。在這通電話中，我們始終把合規放在第一位，並將其視為我們發展的基礎。在過去幾季中，我們投入了大量資源來打造安全的購物環境。

As our business develops, we have noticed that the changes in the external environment are accelerating. And our operations are increasingly affected by some non-business factors, and we are seeing a significant increase in uncertainty. And meanwhile, competition is a constant theme in the e-commerce industry and is expected to intensify.

隨著業務的發展，我們注意到外部環境的變化正在加快。而且我們的營運越來越受到一些非商業因素的影響，不確定性正在顯著增加。同時，競爭也是電子商務產業的永恆主題，預計競爭將會愈演愈烈。

At this moment, such intense competition, combined with the impact of external factors, will inevitably lead to disruptions on our global business. But nevertheless, we remain committed to our vision of allowing more consumers worldwide to enjoy the benefits of the digital economy, and this has not changed.

目前，如此激烈的競爭，加上外部因素的影響，不可避免地會導致我們的全球業務受到干擾。但儘管如此，我們仍然致力於我們的願景，讓全球更多的消費者享受數位經濟的好處，這一點沒有改變。

And in response to the complex environment, we will focus on our core strength and continuously improve our capabilities in supply chain, customer services, and compliance to better meet the expectations of consumers around the world and also achieve high-quality development in our global business. Thank you.

面對複雜的環境，我們將聚焦在核心優勢，不斷提升供應鏈、客戶服務、合規等方面的能力，更能滿足全球消費者的期待，實現全球業務的高品質發展。謝謝。

(interpreted) Hi, this is Zhao Jiazhen. Let me take your question on competition.

(翻譯)你好，我是趙家珍。讓我回答你關於競爭的問題。

Over the past few quarters, the competition has been intensifying, which is natural to the e-commerce sector. In such a competitive environment, our revenue growth may slow down. For instance, in the second quarter, our revenue growth declined indicating that high revenue growth is not sustainable.

過去幾個季度，競爭不斷加劇，這對電子商務產業來說很自然。在這樣的競爭環境下，我們的營收成長可能會放緩。例如，在第二季度，我們的收入成長下降，這表明高收入成長是不可持續的。

Currently, consumer demand is becoming more diversified, and e-commerce platforms are actively adjusting their strategies to meet this evolving need. Each platform has its own strength and competitive edge and commit substantial resources to cater to consumer demand. At this moment, we need to focus on our core strength and continue on our path to high-quality environment.

目前，消費者的需求日趨多樣化，電商平台也積極調整策略來滿足這種變化的需求。每個平台都有自己的優勢和競爭優勢，並投入大量資源來滿足消費者的需求。目前，我們需要聚焦核心優勢，繼續在建立優質環境的道路上前進。

For e-commerce platform, a robust supply chain is essential to providing good services to consumers. To meet the diversified needs of consumers, we remain focused on the fundamentals and strive for innovation in the supply chain.

對於電商平台來說，強大的供應鏈對於向消費者提供良好的服務至關重要。為滿足消費者多元需求，我們堅持聚焦基本面，大力推動供應鏈創新。

In the second quarter, our teams continue to bring agricultural quality initiatives to major production regions, helping local agricultural products build their brands, and empowering small- and medium-sized agricultural merchants through collective marketing efforts.

第二季度，我們的團隊繼續將農業品質行動深入主產區，幫助當地農產品打造品牌，並透過集體行銷賦能中小型農商。

Apart from agricultural products, we have expanded our support to the manufacturers through digitalization. By collaborating with high-quality national brands and manufacturers, we have successfully launched tailored products for niche categories. These brands and merchants have achieved higher-quality developments through continuous technological updates and product innovation.

除了農產品，我們也透過數位化擴大對製造商的支持。透過與優質國家品牌和製造商合作，我們成功推出了針對小眾類別的客製化產品。這些品牌和商家透過不斷的技術更新和產品創新，實現了更高品質的發展。

We will strongly encourage and support high-quality merchants who are dedicated to their business and innovation. In addition to the significant reduction in transaction fees that we plan to offer, we will continue to leverage our platform supply chain capabilities to help merchants improve quality and efficiency, and guide manufacturers towards innovative and high-quality developments.

我們將大力鼓勵並支持那些專心經營、勇於創新的優質商家。除了計畫大幅降低交易手續費以外，我們也將持續發揮平台供應鏈能力，幫助商家提質增效，引導廠商創新、優質發展。

We fully understand that only by optimizing and upgrading the supply chain is essential to meeting deeper consumer needs and ensuring the long-term healthy growth of our platform ecosystem. We are committed to making long-term and patient investments. Thank you, all.

我們深知，只有優化升級供應鏈，才能滿足消費者更深層的需求，才能確保平台生態的長期健康成長。我們致力於進行長期和耐心的投資。謝謝大家。

Thank you, Jiazhen, and thank you, all, for joining us today. We look forward to speaking with you again next quarter. And thank you. Have a nice day.

謝謝佳珍，也謝謝大家今天參加我們的活動。我們期待下個季度再次與您交談。謝謝你。祝你今天過得愉快。

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

謝謝。女士們、先生們，今天的會議到此結束。感謝您的參與。你們現在都可以斷開連結了。