拼多多 (PDD) 2025 Q1 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to PDD Holdings Inc.'s first-quarter 2025 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 2025 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.

現在我想將會議交給今天的主持人。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 上查閱，也可透過 GlobeNewswire 服務查閱。

Before we start, I'd like to refer you to our Safe Harbor statement in the earnings press release, which applies to this call, as well as 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適用於本次電話會議的安全港聲明，並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指標。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; and 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 first quarter ended March 31, 2025.

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、我們的執行董事兼聯合執行長趙家振先生以及我們的財務副總裁劉軍女士。雷和家珍將對我們上個季度的業績和策略重點做一些總體評價。然後，Jun 將向我們介紹截至 2025 年 3 月 31 日的第一季財務表現。

During the Q&A session, Lei and Jiazhen will answer questions in Chinese and will help translate. Please kindly note that 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，雷和家珍將以中文回答問題並協助翻譯。請注意，英文翻譯僅供參考，如有任何差異，應以原文為準。

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

現在，我很高興介紹我們的董事長兼聯合執行長陳雷。雷，請說。

Hello, everyone. Thank you for joining our earnings call for the first quarter 2025.

大家好。感謝您參加我們 2025 年第一季的財報電話會議。

Over the past year, we accelerated the execution of a high-quality development strategy, extending our efforts from platform operations to a broader ecosystem and covering both the supply side and demand side. Through initiatives such as a RMB10 billion fee reduction program, logistic support for the remote regions, and high-quality supply initiatives, we broadened the product selection for consumers and accelerated supply chain transformation. This marks a new chapter in the e-commerce sector that prioritizes merchant support and ecosystem investments.

一年來，我們加快實施高品質發展策略，從平台運作向更廣泛的生態體系延伸，覆蓋供給面和需求面。透過百億降費、偏遠地區物流支援、優質供應等舉措，拓寬了消費者的產品選擇，加速了供應鏈轉型。這標誌著電子商務領域開啟了優先考慮商家支援和生態系統投資的新篇章。

Starting at the beginning of this year, we made substantial investments in our platform ecosystem and made a rapid shift in external environment. To increase merchant support, we established the Merchant Rights Protection Committee and launched the RMB100 billion support program, which is a major strategic decision for the next phase of our high-quality development strategy.

從今年年初開始，我們對平台生態系統進行了大量投資，並迅速改變了外部環境。加大商戶扶持力度，成立商戶維權委員會，啟動千億扶持計劃，這是下一階段高品質發展策略的重大策略決策。

On one hand, the program is designed to further lower fees for our merchants, improving the business environment of our platform. On the other hand, we will also invest more to drive sales for our merchants and to help them better adapt to new challenges.

一方面，該計劃旨在進一步降低商家的費用，並改善我們平台的經營環境。另一方面，我們也將加大投入，推動商家的銷售，幫助他們更適應新的挑戰。

In Q1, our revenues were RMB95.7 billion, which slowed down notably amid rapid trends in the external environment and, at the same, time due to the mismatch between business investment and return cycles. Through our revenue growth and our substantial ecosystem investments led to a significant drop in profit.

一季度，我們的營業收入為957億元，受外部環境快速變化的影響，同時由於業務投入與回報週期不匹配，營業收入增速明顯放緩。由於我們的收入成長和大量的生態系統投資導致利潤大幅下降。

As communicated a few times in the past quarters, as our revenues grow and new challenges emerge, a slowdown in growth rate is inevitable. This trend has been further accelerated by the trends in the external environment in the past quarter.

正如過去幾季多次傳達的那樣，隨著我們的收入成長和新挑戰的出現，成長率放緩是不可避免的。過去一個季度外部環境的變化趨勢進一步加速了這一趨勢。

While a disproportionate drop in profit this quarter can be attributed to three different factors, they all trace back to one underlying consideration. And that is, during a period of uncertainties, when merchants face difficulties, we choose to invest more to help our merchants grow their business and reduce costs.

雖然本季利潤的大幅下降可以歸因於三個不同的因素，但它們都歸結於一個根本考慮因素。那就是，在不確定的時期，當商家面臨困難時，我們選擇投入更多資金來幫助我們的商家發展業務並降低成本。

Looking at the factors one by one, at first, competitions in Chinese e-commerce sectors have further intensified. As a third-party marketplace, we face inherent limitations when it comes to passing on policy incentives to consumers, which puts our merchants at a clear disadvantage compared to our competitors that have a first-party business. While this issue has been discussed last year, the challenge is still here due to a limitation in our team's capabilities.

分因素來看，首先，中國電子商務領域的競爭進一步加劇。作為第三方市場，我們在將政策誘因傳遞給消費者時面臨著固有的限制，這使得我們的商家與擁有第一方業務的競爭對手相比處於明顯的劣勢。雖然去年已經討論過這個問題，但由於我們團隊能力的限制，挑戰仍然存在。

And second, in our global business, radical trends in external policy environments, such as tariffs, have created significant pressure for our merchants, who often lack the capability to adapt quickly and effectively. And third, since the second half of last year, we significantly expanded our fee reduction program for merchants under the RMB10 billion fee reduction program, which is a key initiative in driving the high-quality development of the platform ecosystem.

其次，在我們的全球業務中，關稅等外部政策環境的激進趨勢給我們的商家帶來了巨大壓力，他們往往缺乏快速有效的適應能力。第三，自去年下半年以來，我們大幅擴大了百億減費計畫中對商家的減費範圍，這是推動平台生態高品質發展的重要措施。

And this year, after it has become increasingly clear that the merchants are expected to face further pressure and convinced in the long-term value of our merchant support initiatives, the management team made the strategic decision to launch the RMB100 billion support program. Under this updated program, we are committing significant resources to support the platform ecosystem through uncertain times.

今年，在越來越清楚地認識到商家面臨的進一步壓力，並確信我們的商家支援措施的長期價值後，管理團隊做出了推出人民幣 1000 億元支援計畫的策略決策。根據這項更新後的計劃，我們將投入大量資源來支持平台生態系統度過不確定的時期。

This is not an empty slogan, but a real commitment backed by tangible investments. We understand a marketplace platform is built on collective success of its merchants. In challenging times like these, it is essential for us to step forward and to help our merchants endure and emerge more resilient. If we do nothing, merchants could be overwhelmed by these external shocks. Only when merchants strive can consumers receive quality products and services, and only then can the platform achieve long-term sustainable development.

這不是一句空洞的口號，而是實實在在的承諾，有實質的投資支撐。我們明白，市場平台是建立在其商家的集體成功之上的。在這樣充滿挑戰的時期，我們必須挺身而出，幫助我們的商家堅持下去，變得更有韌性。如果我們不採取任何措施，商家可能會被這些外部衝擊所淹沒。只有商家努力，消費者才能獲得優質的產品和服務，平台才能實現長期永續發展。

Our management team believes that, in a fast-changing market where merchants are facing challenges, it is our obligation to invest decisively to support consumers and merchants, putting their needs ahead of those of the platform. And we believe that these initiatives are investments that will ultimately lead to a stronger and higher quality merchant ecosystem over the long run. These efforts will likely weigh on our profitability in the short term and even for a considerable period of time to come.

我們的管理團隊認為，在快速變化的市場中，商家面臨挑戰，我們有義務果斷投資以支持消費者和商家，將他們的需求置於平台需求之上。我們相信，這些措施和投資最終將在長期內帶來更強大、更高品質的商家生態系統。這些努力可能會在短期甚至相當長的一段時間內對我們的獲利能力造成影響。

However, as stated in our first shareholder letter, we are not a conventional company and we do not evaluate our strategic decisions based on quarterly financial results. Instead, our focus is on long-term intrinsic value over five years, 10 years, or even longer, and we believe our long-term investors will share this perspective.

然而，正如我們在第一封給股東的信中所說，我們不是一家傳統公司，我們不會根據季度財務表現來評估我們的策略決策。相反，我們關注的是五年、十年甚至更長的長期內在價值，我們相信我們的長期投資者也會認同這一觀點。

When seen from another angle, the decline in profit this quarter can be attributed to one overarching factor, which we consider our merchant support initiatives long-term investment. They are treated as accounting expenses. A timing mismatch between when expenses are recorded and when the long-term returns materialize is expected to persist for some time to come and will continue to weigh on our profitability.

從另一個角度來看，本季利潤的下降可以歸因於一個總體因素，我們認為我們的商家支援計劃是長期投資。它們被視為會計費用。預計費用記錄時間與長期回報實現時間之間的時間不匹配將持續一段時間，並將繼續影響我們的獲利能力。

We are firmly committed to long-term investments in our platform ecosystem and to deepening our execution of high-quality development strategies. And we believe by prioritizing the needs and interests of our merchants and consumers through these uncertainties, we can help them emerge stronger and create the room for focus on high-quality sustainable growth.

我們堅定不移地對平台生態進行長期投資，並深入實施高品質發展策略。我們相信，透過在這些不確定性中優先考慮商家和消費者的需求和利益，我們可以幫助他們變得更加強大，並為專注於高品質的永續成長創造空間。

And now, I will hand it over to our Co-CEO, Zhao Jiazhen, to share more about our development plans in 2025.

現在，我將把時間交給我們的聯合執行長趙家珍，請他進一步分享我們2025年的發展計畫。

(interpreted) Thank you, Lei. Hello, everyone. This is Zhao Jiazhen. Thank you for joining our first-quarter 2025 earnings call.

（翻譯）謝謝你，雷。大家好。這是趙家珍。感謝您參加我們的 2025 年第一季財報電話會議。

Over the past few quarters, our high-quality development strategy has entered a new phase. A series of initiatives such as fee reductions and merchant support programs have delivered solid results. Our fully-committed efforts to build a win-win ecosystem are now generating tangible benefits to a broad base of users and tens of millions of merchants.

過去幾個季度，我們的高品質發展策略進入了新的階段。降低費用、支持商家計畫等一系列措施都取得了實際成效。我們全力建構共贏生態，正在為廣大用戶和數千萬商家帶來實質的利益。

Since the beginning of this year, as Chen Lei mentioned, to tackle new challenges together with our merchants, we have scaled up our commitment to high-quality development and upgraded initiatives such as the RMB10 billion fee reduction program to the more comprehensive RMB100 billion support program. This upgraded strategy calls for the entire company to work together and fully devote ourselves to take on our social responsibilities as a platform at such a critical stage, providing merchants with greater certainty and offering consumers a more trustworthy shopping environment.

今年以來，正如陳雷所說，為了與商家攜手應對新的挑戰，我們加大了高品質發展的力度，將百億降費等措施升級為更為全面的千億支持計畫。此次策略升級，要求全公司上下同心協力，在關鍵時刻全力承擔平台的社會責任，為商家提供更放心的服務，為消費者提供更放心的購物環境。

On the supply side, under the RMB100 billion support program, we will further increase investment in high-quality supply, expanding our support for high-quality merchants from top and mid-tier merchants to small and medium-sized. We are committed to focusing more on supporting the smaller merchants, which is the heart of critical steps toward achieving high-quality growth.

供給面方面，在千億扶持計畫下，我們將進一步加大對優質供給的投入，對優質商戶的支持範圍從頭部、中端商戶向中小型商家拓展。我們致力於更加重視支持小商家，這是實現高品質成長的關鍵步驟的核心。

On one hand, we will continue exploring more fee reduction initiatives to help merchants lower costs and create more room for cost flexibility, business growth, and innovation. On the other hand, we will extend comprehensive support, including traffic resources, black label premium store programs, digital resources, and technology capabilities, to empower small and medium-sized merchants, unlock their potential, and drive broader, higher-quality upgrades across the supply chain.

一方面，我們將持續探索更多的降費舉措，幫助商家降低成本，為成本彈性、業務成長和創新創造更多空間。另一方面，我們將透過流量資源、黑標精品店計畫、數位化資源、技術能力等全方位的支持，賦能中小商家，釋放其潛力，推動整個供應鏈更廣泛、更高品質的升級。

Since the beginning of this year, our dedicated team for high-quality merchant support programs has visited frontline manufacturing bases such as Coupwear in Yongkang, Women's Fitwear in Wenzhou, Consumer Electronics in Shenzhen, Athletic Shoes in Jingjiang, and Running Shoes in Jing'an. We are pleased to see that the merchants and the broader supply chain have made notable progress in transformation with the platform's comprehensive support.

今年以來，我們專門的優質商家扶持計畫團隊先後走訪了永康童裝、溫州女裝、深圳消費電子、靖江運動鞋、靜安跑鞋等一線製造基地。我們很高興地看到，在平台的全面支援下，商家以及更廣泛的供應鏈轉型取得了顯著進展。

Many merchants are transitioning from traditional OEM and distribution mindsets toward user-oriented and brand-driven approaches. This shift has enabled them to pursue differentiated development paths amid homogeneous competition. Moreover, fee savings are being reinvested into new product development, warehouse upgrades, and supply chain transformation, accelerating high-quality transitions across major industries.

許多商家正在從傳統的OEM和分銷思維模式轉向以用戶為中心和品牌驅動的方式。這種轉變使得它們能夠在同質化競爭中走差異化的發展之路。此外，節省下來的費用被重新投資到新產品開發、倉庫升級和供應鏈轉型中，加速了主要產業的高品質轉型。

As a platform rooted in agriculture, our RMB100 billion support program will also enhance support for agricultural products. Recently, we officially launched the 2025 Duoduo Specialty initiative. The first phase of the initiative has covered key agricultural regions including Jiangsu Lianyungang, Fujian Ningde, Hainan Wanning, Shanxi Yuncheng, Guangdong Maoming, Sichuan Chengdu, and Liaoning Dalian.

作為根植於農業的平台，我們的千億扶持計畫也會加強對農產品的支持。近日，我們正式啟動2025多多特色行動。第一階段涵蓋江蘇連雲港、福建寧德、海南萬寧、山西運城、廣東茂名、四川成都、遼寧大連等重點農業地區。

We are implementing tailored strategies across agricultural product categories such as local farm products, fruits, seafood, and poultry, deeply integrating with regional agricultural industries and providing one-on-one guidance to small merchants. Through these initiatives, we aim to explore new models for agricultural product distribution, enhance value-add, and drive production and income growth across the agricultural industry.

針對本土農產品、水果、水產、禽肉等農產品品類實施差異化策略，深度整合區域農業產業，對小商家進行一對一指導。透過這些舉措，我們力求探索農產品流通新模式，提高農產品附加價值，並推動農業全產業增產增收。

In the papaya-producing region of Yunnan Mengzi, with the support from our platform, local merchants have developed a digital system for agricultural product operation, enabling automation across harvesting, listing, pricing, logistics, after-sales services, and traceability. This system addresses key industry pain points such as unclear pricing and high spoilage rates, driving the transition from experience-based to data-driven operations and enabling the modernization of the traditional agriculture supply chain.

在木瓜主產區雲南蒙自，透過平台的支持，當地商家已經建立了農產品數位化營運系統，實現了採摘、上架、定價、物流、售後服務、追溯等環節的自動化。該系統解決了定價不明確、損耗率高等行業關鍵痛點，推動了從經驗型運營向數據驅動型運營的轉變，實現了傳統農業供應鏈的現代化。

On the demand side, the RMB10 billion support program has also launched several giveback initiatives to benefit consumers. Our RMB10 billion program has introduced a new RMB10 billion merchant giveback program, rolling out RMB10 billion consumer coupons. Through dedicated campaigns such as the RMB10 billion coupon program and RMB10 billion level-up program, we deliver additional coupons across all product categories to meet consumers' functional and personalized needs, while improving supply-demand matching efficiency and supporting business growth for high-quality merchants and brands.

在需求側，百億扶持計畫也推出了多項回饋舉措，惠及消費者。我們的百億計劃推出了全新的百億商家回饋計劃，發放了百億消費券。透過百億優惠券計畫、百億升級計畫等專案活動，向所有商品類別投放優惠券，滿足消費者功能性和個人需求，提升供需搭配效率，支援優質商家和品牌業務成長。

In addition, we further enhanced our direct discount program. While fully safeguarding merchants' interests, we benchmarked prices against the national subsidy program across multiple categories to provide real savings to consumers and stimulate consumer demand, aiming at compensating for the disadvantages under the national subsidy schemes and support merchants in strengthening their overall market position. While such investments may weigh on short-term profitability, we believe they are necessary and worthwhile as they help create unique opportunities to achieve high-quality growth for the small and medium-sized merchants on our platform.

此外，我們進一步加強了直接折扣計劃。在充分保障商家利益的同時，對多個品類實施價格對標國補貼，實際為消費者省錢，刺激消費需求，彌補國補貼的劣勢，支持商家提升整體市場地位。雖然此類投資可能會影響短期獲利能力，但我們認為它們是必要且值得的，因為它們有助於為我們平台上的中小商家創造實現高品質成長的獨特機會。

In the face of a complex and evolving environment, we remain committed to building a business ecosystem in which users, merchants, and the platform thrive together. We will continue to increase investments on both the supply and demand side to help our merchants emerge stronger from these uncertainties, create more valuable experiences for consumers, and generate greater positive impact for the society.

面對複雜多變的環境，我們始終致力於建構使用者、商家、平台共同繁榮的商業生態系統。我們將繼續增加對供給面和需求面的投入，幫助我們的商家在不確定性中變得更加強大，為消費者創造更有價值的體驗，並為社會產生更大的正面影響。

I will now hand it over to Jun. She will provide you with an update on our Q1 financial performance.

現在我將把時間交給 Jun。她將向您通報我們第一季的財務表現。

Thank you, Jiazhen. Hello, everyone. Let me walk you through our financial performance for the first quarter ended March 31, 2025.

謝謝你，家珍。大家好。讓我向您介紹我們截至 2025 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 10% year over year to RMB95.7 billion. This was mainly driven by an increase in revenues from online marketing services and transaction services. Revenues from online marketing services and others were RMB48.7 billion this quarter, up 15% from the same quarter of 2024. Revenues from transaction services were RMB47 billion, up 6% from the same quarter last year.

從損益表來看，第一季度，我們的總營收年增10%，達到人民幣957億元。這主要得益於網路行銷服務和交易服務收入的成長。本季網路行銷服務及其他收入為人民幣487億元，較2024年同期成長15%。交易服務收入為470億元人民幣，較去年同期成長6%。

Moving on to costs and expenses. Our total cost of revenues increased 25% from RMB32.7 billion in Q1 2024 to RMB40.9 billion this quarter, mainly due to increase in fulfillment fees and payment processing fees. On a GAAP basis, total operating expenses this quarter increased 37% to RMB38.6 billion from RMB28.1 billion in same quarter of 2024. On a non-GAAP basis, total operating expenses increased to RMB36.5 billion this quarter from RMB25.6 billion in Q1 2024.

繼續討論成本和費用。我們的總收入成本從 2024 年第一季的 327 億元 327 億元成長 25% 至本季的 409 億元，主要原因是履行費和支付處理費增加。以美國通用會計準則計算，本季總營運費用較 2024 年同期的 281 億元成長 37% 至 386 億元。以非公認會計準則計算，本季總營運費用從 2024 年第一季的 256 億元人民幣增至 365 億元。

In the first quarter, we further increased our platform ecosystem investments through expanded merchant support initiatives to help merchants increase sales and reduce costs. Our total non-GAAP operating expenses as a percentage of total revenues this quarter was 38% compared to 29% in the same quarter last year.

第一季度，我們透過擴大商家支援計畫進一步增加了平台生態系統投資，以幫助商家增加銷售額並降低成本。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 38%，而去年同期為 29%。

Looking to specific expense items. Our non-GAAP sales and marketing expenses this quarter were RMB32.8 billion, up 44% versus the same quarter last year. In the first quarter, we continued to give back to consumers through promotional programs and increased marketing support for high-quality margins to help grow their businesses. On a non-GAAP basis, our sales and marketing expenses as a percentage of our revenues this quarter was 34%, versus 26% for the same quarter last year.

查看具體的費用項目。本季我們的非美國通用會計準則銷售及行銷費用為人民幣328億元，較去年同期成長44%。第一季度，我們持續透過促銷計畫回饋消費者，並加強行銷支援力度，以提供優質利潤，幫助他們的業務成長。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 34%，而去年同期為 26%。

Our non-GAAP general and administrative expenses were RMB735 million versus RMB572 million in the same quarter of 2024. Our research and development expenses were RMB3 billion this quarter on a non-GAAP basis and RMB3.6 billion on a GAAP basis, up 23% year over year.

我們的非公認會計準則一般及行政開支為人民幣 7.35 億元，而 2024 年同期為 5.72 億元。本季我們的研發費用以非美國通用會計準則計算為 30 億元人民幣，以美國通用會計準則計算為 36 億元人民幣，較去年同期成長 23%。

On a GAAP basis, operating profit for the quarter was RMB16.1 billion versus RMB26 billion in the same quarter last year. Non-GAAP operating profit was RMB18.3 billion versus RMB28.6 billion in the same quarter last year. Non-GAAP operating profit margin was 19% this quarter, down from 33% for the same quarter last year.

以美國通用會計準則計算，本季營業利潤為人民幣161億元，去年同期為人民幣260億元。非美國通用會計準則營業利潤為 183 億元，去年同期為 286 億元。本季非公認會計準則營業利益率為 19%，低於去年同期的 33%。

Net income attributable to ordinary shareholders was RMB14.7 billion for the quarter, compared to RMB28 billion in the same quarter last year.

本季歸屬於普通股股東的淨利為人民幣147億元，去年同期為人民幣280億元。

Basic earnings per ADS was RMB10.59 and diluted earnings per ADS was RMB9.94, versus basic earnings per ADS of RMB20.33 and diluted earnings per ADS of RMB18.96 in the same quarter of 2024. Non-GAAP net income attributable to ordinary shareholders was RMB16.9 billion versus RMB30.6 billion in the same quarter last year. Non-GAAP diluted earnings per ADS was RMB11.41 versus RMB20.72 in the same quarter of 2024.

每股美國存託憑證基本收益為人民幣 10.59 元，每股美國存託憑證攤薄收益為人民幣 9.94 元，而 2024 年同期每股美國存託憑證基本收益為人民幣 20.33 元，每股美國收益存託憑證攤薄為人民幣 18.96 元。非美國通用會計準則下，歸屬於普通股股東的淨利為169億元人民幣，去年同期為306億元。非公認會計準則每股美國存託憑證攤薄收益為 11.41 元人民幣，而 2024 年同期為 20.72 元。

In the first quarter, we see a slowdown in revenue growth as our business scales and challenges emerge. Looking ahead, our financial results may continue to reflect the impact of sustained investments in ecosystems as we support merchants and consumers through uncertain times. That concludes the income statement.

第一季度，隨著業務規模擴大和挑戰顯現，我們的營收成長放緩。展望未來，隨著我們在不確定的時期為商家和消費者提供支持，我們的財務表現可能會繼續反映對生態系統持續投資的影響。這就是損益表的全部內容。

Now, let me move on to cash flow. Our net cash generated from operating activities was RMB15.5 billion compared with RMB21.1 billion in the same quarter last year. As of March 31, 2025, we have RMB364.5 billion in cash, cash equivalents, and short-term investments.

現在，讓我來談談現金流。我們的經營活動產生的淨現金為人民幣155億元，去年同期為人民幣211億元。截至2025年3月31日，我們擁有現金、現金等價物及短期投資人民幣3,645億元。

Thank you. This concludes my prepared remarks.

謝謝。我的準備好的發言到此結束。

Thank you, Jun.

謝謝你，Jun。

Next, we'll move on to the Q&A session. Today's Q&A session, Lei, Jiazhen, and Jun will take questions from analysts on the line. We will take a maximum of two questions from each analyst. Lei and Jiazhen will answer questions in Chinese, and we will help translate for convenience purpose.

接下來我們進入問答環節。今天的問答環節，雷佳珍、王軍將在線上回答分析師的提問。我們將向每位分析師最多回答兩個問題。雷和嘉珍會用中文回答問題，我們會幫忙翻譯方便大家。

Operator, we're open for questions.

接線員，我們可以回答問題。

(Operator Instructions) Alicia Yap, Citigroup.

（操作員指示）花旗集團的 Alicia Yap。

(spoken in foreign language) I have two questions. First is that, we noticed in management's prepared remarks that recent macro policy changes, including the tariffs, have placed considerable pressures on the merchants. And the market is also keen to understand what preparations and measure the platform has taken in response to such a highly uncertain external environment. How are we adjusting our business model in certain markets? And also, what's the current progress?

（外語）我有兩個問題。首先，我們在管理階層的準備好的評論中註意到，最近的宏觀政策變化，包括關稅，給商家帶來了相當大的壓力。而市場也迫切希望了解，面對如此高度不確定的外部環境，平台做了哪些準備和舉措。我們如何在某些市場調整我們的商業模式？另外，目前進展如何？

The second question is, on this quarter, we obviously noticed a very significant decline in the company's net profit margins, along with a year-over-year decrease in the net profit number. Can management elaborate a little bit more on the factors that contributing to this decline? And what are we seeing in the second quarter? Does the management expect this trend to continue? Thank you.

第二個問題是，本季我們明顯注意到公司的淨利潤率出現了非常明顯的下降，同時淨利潤數字也較去年同期下降。管理階層能否進一步詳細說明導致這種下降的因素？那我們在第二季看到了什麼？管理階層是否預期這一趨勢會持續下去？謝謝。

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

（翻譯）嗨，艾莉西亞。我是陳磊。讓我來回答你的第一個問題。

As we have emphasized in the past few quarters, in response to macro policy changes and external headwinds, we will continue to take proactive actions while strictly upholding regulatory compliance. Over the past few years, our long-term investments in the supply chain, together with our work in advancing new business models, have enabled us to accumulate substantial supply chain and operational know-how. And guided by our high-quality development strategy and operating under strict regulatory compliance, we'll stay focused on our core business and enhance our competitive strength through sustained investments in supply chain, service capabilities, and the platform ecosystem.

正如我們在過去幾季所強調的，為應對宏觀政策變化和外部不利因素，我們將繼續採取積極行動，同時嚴格遵守監管規定。過去幾年，我們在供應鏈方面的長期投入以及新商業模式的推進，使我們累積了大量的供應鏈和營運經驗。我們將在高品質發展策略的指引下，在嚴格合規的經營下，專注於核心業務，透過對供應鏈、服務能力、平台生態的持續投入，提升競爭實力。

Our merchants are under considerable pressure given the recent policy changes, and many like the capability to respond effectively, making it very challenging for them to keep up. In light of these circumstances, we believe it is our obligation as a platform to increase support for merchants and invest platform resources to support their businesses.

鑑於最近的政策變化，我們的商家承受著相當大的壓力，許多商家都希望能夠有效應對，這使得他們很難跟上政策變化。有鑑於這些情況，我們認為身為平台我們有義務加強對商家的支持力度，投入平台資源支持他們的業務。

The RMB100 billion support program we mentioned earlier is designed for this exact reason and to increase our support efforts for small and medium-sized merchants. And through stabilizing sales and lowering cost for them, we seek -- help them manage risks arising from the rapidly evolving market environment and giving them the time and flexibility that will be necessary to pursue sustained growth.

我們剛才講的千億扶持計畫就是為了這個目的，加大對中小商家的扶持力道。透過穩定銷售和降低成本，我們尋求幫助他們管理快速變化的市場環境所帶來的風險，並給予他們追求持續成長所需的時間和靈活性。

In addition, we will continue to explore new business models, deepen our market presence, and expand into new product categories and services to build a more robust platform ecosystem. Amid a rapidly changing external environment, our global business is working with merchants across the region to bring stable prices and abundant supply to consumers around the world.

此外，我們將持續探索新的商業模式，深化市場影響力，拓展新的產品類別與服務，建構更強大的平台生態系統。在快速變化的外部環境中，我們的全球業務正在與整個區域的商家合作，為全球消費者帶來穩定的價格和充足的供應。

No matter how policies shift, we'll continue to strengthen our operations in the markets we serve, helping more local merchants grow on our platform and enabling more orders to be fulfilled from local warehouses. And right now, we are seeing these merchants becoming more proactive with better stock inventory and more value passed on to consumers through differentiated products and services.

無論政策如何變化，我們都將繼續加強我們在所服務市場的運營，幫助更多本地商家在我們的平台上發展，並使更多訂單能夠從本地倉庫完成。現在，我們看到這些商家變得更加積極主動，他們擁有更好的庫存，並透過差異化的產品和服務為消費者帶來更多價值。

Platform is a collective of merchants. We believe only when merchants achieve long-term sustainable growth can our consumers receive high-quality products and services. And therefore, in times of external shocks of policy changes, where merchants face difficulties, we feel a strong obligation to support our merchants to navigate through these external uncertainties. And this is why we launched the RMB100 billion support program to foster a long-term and healthy merchant ecosystem that will be essential to achieving high-quality development.

平台是商家的集合。我們相信，只有商家實現長期永續成長，我們的消費者才能獲得高品質的產品和服務。因此，在政策變化等外部衝擊時期，當商家面臨困難時，我們有強烈的義務支持我們的商家度過這些外部不確定性。這就是為什麼我們推出千億扶持計劃，以培育長期健康的商家生態系統，這對於實現高品質發展至關重要。

Thank you.

謝謝。

Hello, Alicia. This is Jun. Let me take your second question regarding profitability.

你好，艾莉西亞。我是 Jun。讓我來回答您關於盈利能力的第二個問題。

As we have communicated over the past few quarters, a slowdown in growth rate is inevitable, as our business scales, competition intensifies and external uncertainties emerge. This trend has been further accelerated by the changes in the external environment in the first quarter, and our revenue growth has slowed significantly. At the same time, the slowing revenue growth and our continuous ecosystem investments result in a significant drop in profit this quarter. This is mainly due to the mismatch between the business investment and return cycles.

正如我們在過去幾季中所傳達的那樣，隨著業務規模的擴大、競爭的加劇以及外部不確定性的出現，成長率放緩是不可避免的。這一趨勢因第一季外部環境的變化而進一步加速，我們的營收成長明顯放緩。同時，營收成長放緩以及我們持續的生態系統投入導致本季利潤大幅下降。這主要是由於企業投入與回報週期不匹配所造成的。

As mentioned in our prepared remarks, the market is undergoing rapid changes at the moment. As an e-commerce platform, merchants and platforms work together in serving our consumers. It has done adapt to such changes. We have increased our investments in the platform ecosystem, putting our consumers and merchants first. We believe this is a responsibility the platform must take on in this environment. And only by doing so, we can build an ecosystem that benefits all stakeholders in the long term.

正如我們在準備好的評論中所提到的，當前市場正在快速變化。作為電商平台，商家和平台共同為我們的消費者服務。它確實適應了這種變化。我們加大了對平台生態系統的投資，把消費者和商家放在第一位。我們認為這是平台在這種環境下必須承擔的責任。只有這樣，我們才能建構一個長期惠及所有利害關係人的生態系統。

Our initiatives to support emerging ecosystems include merchant fee reduction and marketing support for high-quality merchants. This will have financial impacts on revenue growth and expenses. While we view these expenses with long-term investments, there remains a mismatch between the return and business investment cycles. Therefore, our profitability is likely to face challenges in the near term and potentially over a longer period.

我們支持新興生態系統的措施包括降低商家費用和為優質商家提供行銷支援。這將對收入成長和支出產生財務影響。雖然我們將這些費用視為長期投資，但回報和商業投資週期之間仍然存在不匹配。因此，我們的獲利能力在短期內甚至更長時間內都可能面臨挑戰。

As I mentioned, we're not a conventional company. In our investment decisions, we do not place too much emphasis on financial performance in a single quarter, but prioritize long-term intrinsic value. Certain fluctuations will not change our focus on long-term value creation.

正如我所提到的，我們不是一家傳統公司。我們在投資決策中並不太注重單一季度的財務表現，而是優先考慮長期的內在價值。某些波動不會改變我們對長期價值創造的關注。

In the past two quarters, through initiatives such as the RMB10 billion fee reduction program, we're already seeing positive impacts on ecosystems. Going forward, we will expand the reach of our merchant support initiatives to benefit more SME businesses, helping them navigate market cycles and achieve high-quality growth.

過去兩個季度，透過實施100億元減費計畫等舉措，我們已經看到對生態系統的正面影響。未來，我們將擴大商家扶持力度，惠及更多中小企業，幫助他們應對市場週期，達到高品質成長。

Thank you.

謝謝。

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

接線員，讓我們轉到下一位分析師。

Kenneth Fong, UBS.

瑞銀的 Kenneth Fong。

(spoken in foreign language) Thank you, management, for taking my question. We noted that following the company's substantial support for the merchants through the RMB10 billion fee reduction program last year, you have initiated an upgraded RMB100 billion support program. The market is keen to understand how this initiative will be delivered to the merchants. And would that be -- and how would you think about the long-term impact on the company's financial performance?

（以外語說）謝謝管理階層回答我的問題。我們注意到，繼去年公司透過百億減費計畫大力扶持商戶之後，貴行又啟動升級版千億扶持計畫。市場迫切希望了解這項措施將如何傳遞給商家。那會怎麼樣呢？您認為這會對公司的財務表現產生什麼長期影響？

The second question is, a few quarters ago and the prepared remarks just now, management mentioned that the company has certain limitation and disadvantage when it comes to benefiting from the macro policy initiative. Could management elaborate on how the company responds to the policies such as the national subsidies program? And what plans are in place to address the current situation? Thank you.

第二個問題是，幾個季度前以及剛才的準備好的評論中，管理層提到公司在受益於宏觀政策舉措方面存在一定的限制和劣勢。管理階層能否詳細說明公司如何因應國家補貼計畫等政策？針對當前情勢，有哪些計畫？謝謝。

(interpreted) Hello. This is Zhao Jiazhen. Let me take your question on RMB100 billion support program.

（翻譯）你好。這是趙家珍。我來回答你關於千億扶持計畫的問題。

Since the second half of last year, our merchant support initiatives, including the RMB10 billion fee reduction program, logistics support for remote regions, and the high-quality merchant support program, have delivered solid results, enabling tens of millions of merchants to enhance operational efficiency and reduce costs and building merchants and the broader supply chain transition towards a new stage of high-quality supply. We're fully aware that our investments in the merchant ecosystem and supporting measures for supply chain transformation will ultimately translate into higher-quality product offerings and services, which benefit consumers and create a win-win platform ecosystem. We believe this is the path to long-term healthy development for our platform.

自去年下半年以來，百億手續費減免、偏遠地區物流扶持、優質商家扶持計畫等商家扶持措施成效顯著，協助數千萬商家提升營運效率、降低成本，推動商家及整個供應鏈邁向優質供應的新階段。我們深知，我們對商家生態的投入和對供應鏈轉型的配套措施，最終將轉化為更優質的產品和服務，造福消費者，打造互利共贏的平台生態。我們相信這是我們平台長期健康發展的道路。

In the face of increasing external uncertainties, we believe it is our responsibility as a platform to strengthen ecosystem support and prioritize the interests of merchants and consumers. Therefore, our upgraded RMB100 billion support program will be backed by substantial financial commitment and is not an empty slogan. The core of the upgraded RMB100 billion support program is the significant increase in investment on bare feet supply and demand side.

面對日益增加的外部不確定性，我們認為作為平台，我們有責任加強生態系統支持，並將商家和消費者的利益放在首位。因此，我們升級後的1000億支持計劃將有實質的資金投入，而不是一句空洞的口號。此次升級的千億扶持計畫的核心是大幅增加對赤腳供需側的投入。

On the supply side, more merchants will receive our support as we extend the coverage of high-quality merchant support program from top and mid-tier merchants to small and medium-sized ones. This means more high-quality merchants will benefit from the platform's high-quality development. We aim to help release the full potential of these smaller merchants and drive broader and higher-quality supply chain upgrades across the platform.

在供給側，隨著優質商家扶持計畫的覆蓋範圍從中高端商戶向中小型商家延伸，更多的商家將得到我們的支持。這意味著更多優質商家將受益於平台的高品質發展。我們的目標是幫助這些小型商家充分釋放潛力，推動整個平台更廣泛、更高品質的供應鏈升級。

On the demand side, beyond the improvement in product and service quality brought by the supply side upgrade, the RMB100 billion support program also includes a range of new giveback initiatives. For example, under the RMB10 billion program, we launched a new RMB10 billion merchant giveback program, offering additional coupons across all categories to meet diverse consumer demand. In addition, we have further upgraded our direct discount programs by benchmarking prices against the national subsidy program across multiple categories, offering real savings to consumers while improving sales for merchants, fostering a healthier operating environment.

在需求側，除了供給面升級帶來的產品和服務品質提升外，千億支援計畫還包括一系列新的回饋措施。例如，在百億計劃下，我們推出了新的百億商家回饋計劃，為所有品類提供額外優惠券，滿足多樣化的消費者需求。此外，我們進一步升級了直降方案，將多個品類的價格與國家補貼方案進行對標，在為消費者帶來真正優惠的同時，也為商家提升了銷量，營造了更健康的經營環境。

We are a platform that is a collective of merchants. Looking together with merchants to deliver high-quality products and services to consumers is the foundation of our business development. We believe that long-term investment in the platform ecosystems and prioritizing the needs of consumers and merchants amid external uncertainties is the only path to achieving long-term, high-quality and sustainable growth in today's environment.

我們是商家集合的平台。與商家共同期待為消費者提供優質的產品和服務是我們業務發展的基石。我們相信，在外部不確定的環境下，長期投資平台生態系統並優先考慮消費者和商家的需求是實現當今環境下長期、高品質和永續成長的唯一途徑。

Regarding your second question, as stated in our prepared remarks, our third-party marketplace model has inherent limitations when it comes to certain policy incentives, and we are at disadvantages compared to platforms that primarily operate under the third-party model. This also affects the price competitiveness of our merchants in certain categories.

關於你的第二個問題，正如我們在準備好的評論中提到的，我們的第三方市場模式在某些政策激勵方面存在著固有的局限性，與主要以第三方模式運營的平台相比，我們處於劣勢。這也影響了我們商家在某些類別的價格競爭力。

To protect the interest of both consumers and merchants on our platform, we have leveraged internal resources and responded resolutely with increased investments, helping our merchants and medium-sized merchants maintain competitiveness and increase sales. Since January this year, we have launched a dedicated page for the national subsidy program.

為了保障平台消費者和商家的利益，我們整合內部資源，果斷應對，加大投入，幫助我們的商家和中型商家保持競爭力，提高銷售額。自今年1月起，我們推出了國家補貼計畫的專屬頁面。

In addition, a (inaudible) support for merchants under the RMB100 billion program, we are also enhancing our promotional efforts on the consumer side. Currently, our dedicated national subsidy channel already covers more than 20 provinces and we provide additional coupons on top of the government subsidies, delivering further savings directly to consumers.

此外，（聽不清楚）在千億計畫下對商家的支持，我們也在加強消費者方面的促銷。目前，我們的全國專線補貼管道已經涵蓋20多個省份，並且在政府補貼的基礎上，我們還提供額外優惠券，直接為消費者帶來更多優惠。

Moreover, the platform will continue to benchmark prices against the national subsidy program and expand the promotion coverage to categories such as daily necessities. These measures aim to provide more savings to consumers, stimulate broader consumer demand, and create incremental market opportunities for the merchants. While such investments may weigh on short-term profitability, we believe they are necessary and worthwhile as they help the merchants improve inventory position, manage capacity, and get the small and medium-sized merchants the room to focus on high-quality, differentiated growth on our platform.

此外，平台將持續對標國家補貼價格，並將促銷範圍擴大至生活必需品等類別。這些措施旨在為消費者提供更多節省，刺激更廣泛的消費需求，並為商家創造增量市場機會。雖然此類投資可能會影響短期獲利能力，但我們認為它們是必要且值得的，因為它們可以幫助商家改善庫存狀況，管理產能，並為中小型商家提供空間，專注於我們平台上的高品質、差異化成長。

Thank you.

謝謝。

Thank you, Kenny. Operator, let's move on to the next analyst.

謝謝你，肯尼。接線員，我們繼續聯繫下一位分析師。

Joyce Ju, Bank of America.

美國銀行的 Joyce Ju。

(spoken in foreign language) First, we know China's e-commerce competition remains intense. And as management mentioned, Duoduo is facing challenge in competing with first-party online retailers due to disadvantage in getting trading subsidies. How does management view competition in current market environment? And what are strengths and limitations of your third-party platform model?

（外語）首先，我們知道中國的電子商務競爭仍然很激烈。正如管理層所提到的，由於在獲得交易補貼方面處於劣勢，多多在與第一方線上零售商的競爭中面臨挑戰。管理階層如何看待當前市場環境下的競爭？你們的第三方平台模式的優點和限制是什麼？

Secondly, may we have an update on overall consumption momentum? As this year's June promotion already underway, could management share some colors on platform performance and also key trends observed so far? Thank you very much.

第二，我們能否了解一下整體消費動能的最新情況？由於今年 6 月的促銷活動已經開始，管理層能否分享一些平台表現以及迄今為止觀察到的主要趨勢？非常感謝。

(interpreted) Hello. This is Chen Lei. Let me take your first question.

（翻譯）你好。我是陳磊。讓我來回答你的第一個問題。

As we mentioned earlier in the prepared remarks, our platform is a collective of its merchants and our development cannot be separated from the health of the merchant ecosystem. And in today's environment, with increasingly intensifying competition and rapidly evolving policy landscape, many of the merchants lack the capabilities to respond and adapt and are indeed facing challenges.

正如我們之前在準備好的評論中提到的，我們的平台是商家的集體，我們的發展離不開商家生態系統的健康。而在當今環境下，競爭日益激烈，政策環境快速變化，許多商家缺乏應對和適應的能力，確實面臨挑戰。

As an e-commerce platform, we are very aware that we and the merchants are in this together. Our business model is a marketplace naturally shaped and simpler and more direct response to the challenges we face. If the platform fails to step in and offer support when merchants are experiencing difficulties, the merchants may be overwhelmed by the short-term market volatilities.

作為一個電商平台，我們非常清楚，我們和商家是在一起的。我們的商業模式是一個自然形成的市場，對我們面臨的挑戰做出更簡單、更直接的反應。如果平台在商家遇到困難時未能及時介入並提供支持，商家可能會被短期的市場波動所淹沒。

It is only when merchants are doing well that can we deliver high-quality products and services to consumers and meet their increasingly diverse consumption needs. We believe this is not only the responsibility that e-commerce platform should take on, but also fundamental to building a healthy and sustainable e-commerce ecosystem.

只有商家做好了，才能提供消費者優質的產品與服務，滿足消費者日益多樣化的消費需求。我們相信這不僅是電商平台應承擔的責任，也是建構健康、永續發展的電商生態系統的根本。

And over the years, in order to better serve the merchants, we have rooted ourselves in the e-commerce supply chain and made substantial investments. And leveraging our technology economies of scale and the platform's digital capabilities and resources, we supported merchants to innovate in the product development, technology and operations, and we'll help them expand market reach. And these long-term efforts have allowed us to accumulate the relevant supply chain know-hows and capabilities.

並且多年來，為了更好地服務商家，我們紮根電商供應鏈，並進行了大量的投入。我們利用技術規模經濟和平台的數位化能力和資源，支援商家在產品開發、技術和營運方面進行創新，並協助他們擴大市場範圍。透過長期的努力，我們累積了相關的供應鏈專業知識和能力。

We saw encouraging results from the RMB10 billion fee reduction program launched in the second half of last year, which brought tangible benefits for our merchants. And building on this foundation, we decided to launch the updated RMB100 billion support program to further expand the coverage of our merchant support efforts. And these initiatives will extend support to more small and medium-sized merchants, enabling more high-quality merchants to benefit from the platform's high-quality development.

去年下半年推出的100億減費計畫成效顯著，為商家帶來了實質的利益。在此基礎上，我們決定推出升級版千億商家扶持計劃，進一步擴大商家扶持覆蓋率。這些措施也將支持更多中小型商家，讓更多優質商家享受到平台高品質發展帶來的紅利。

And in this current environment, we believe it is the platform's responsibility to invest more to help merchants navigate the market cycles. We are confident that such efforts will ultimately lead to a more robust merchant ecosystem over the long run.

在當前環境下，我們認為平台有責任投入更多資金來幫助商家應對市場週期。我們相信，從長遠來看，這些努力最終將帶來更強大的商家生態系統。

(interpreted) Hello. This is Zhao Jiazhen. Let me take your second question.

（翻譯）你好。這是趙家珍。我來回答你的第二個問題。

When it comes to shopping festivals, what consumers value are simplified mechanisms and real savings, which is the philosophy that aligns with our approach we've always taken on the consumer side. We've continued to uphold this principle in this year's June 16 shopping festival. By combining the campaign with our RMB10 billion program, we are enabling consumers to access high-quality products at compelling prices while driving sales for our merchants.

對於購物節來說，消費者看重的是簡化的機制和真正的節省，這與我們一直以來在消費者方面採取的理念是一致的。今年的6·16購物節我們繼續秉持這項原則。透過將此次活動與我們的 100 億元計畫結合，我們讓消費者能夠以極具吸引力的價格購買高品質的產品，同時推動商家的銷售。

Building on this, we are also enhancing quality and services to better cater to consumers' evolving needs. This year, we've introduced the price drop protection service for products participating the June 16 promotion to further improve consumers' shopping experience. We hope that our platform and our merchants can, together, excel in quality and service, build consumer trust, safeguard consumer rights, and, in turn, drive sustainable sales growth. This is part of our vision for a win-win e-commerce ecosystem that benefits all stakeholders.

在此基礎上，我們也正在提高品質和服務，以更好地滿足消費者不斷變化的需求。今年我們針對「6·16」促銷活動商品推出了降價保障服務，進一步提升消費者的購物體驗。我們希望平台和商家能夠共同提升品質和服務，建立消費者信任，維護消費者權益，進而推動銷售的永續成長。這是我們實現所有利害關係人共贏的電子商務生態系統願景的一部分。

Thank you.

謝謝。

Thank you, Joyce, and thank you all for joining us today. It's about time, and we look forward to speaking with you again next quarter. Thank you, and have a great day.

謝謝你，喬伊斯，也謝謝大家今天加入我們。現在是時候了，我們期待下個季度再次與您交談。謝謝您，祝您有愉快的一天。

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. The interpreter was provided by the company sponsoring this event.

本記錄中標記（翻譯）的部分是由現場通話中的翻譯人員說的。翻譯由贊助此活動的公司提供。