Q4 2022 PDD Holdings Inc Earnings Call

March 20, 2023

Speaker 1: We TR TR.

Speaker 1: Thank.

Speaker 2: Ladies and gentlemen, thank you for standing by and welcome to PDD's Holdings Inc. fourth quarter and fiscal year 2022 earnings conference call. At this time all participants are in a listen only mode. There will be a presentation followed by a question and answer session.

Speaker 2: At which time if you wish to ask a question, you will need to press star 1 on your telephone. I must advise that today's conference is being recorded. I would now like to hand the conference over to your host today, Mr Chen Peng. Sir, please go ahead.

Speaker 3: Thank you operator. Hello everyone and thank you for joining us today. My name is Chen and I will help host the earnings call.

Speaker 3: PDD Holdings earnings release was distributed earlier and is available on our website at investor.pddholdings.com as well as through Global News

Speaker 3: 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.

Speaker 3: Tony asked today on the call are Chen Lei, our Chairman and Chief Executive Officer, and Liu Jun, our VP of Finance. Lei will make some general remarks on our performance for the past quarter and our strategic focus. And, thanks Sy dance.

Speaker 3: Jin will then take us through our financial results for the fourth quarter and fiscal year ended December 31, 2022. During the Q&A session, Lei will answer questions in Chinese and I will help translate.

Speaker 3: Please kindly note that all translations provided are for reference purposes only. In case of any discrepancy between their original remarks and the translated version, statements in the original language should prevail. Now, it is my pleasure to introduce our Chairman and Chief Executive Officer, Chen Lei.

Speaker 3: Lei, please go ahead.

Speaker 4: Hello everyone.

Speaker 5: Thank you all for joining us on our early call for the fourth quarter and the fiscal year of 2022.

Speaker 5: Let me begin by summarizing our results for Q4 and a full year of 2022.

Speaker 5: Our total revenue for this quarter was RMB 39.8 billion, which is a 46% increase compared to the previous year. Our total revenue for this quarter was RMB 39.8 billion, which is a 46% increase compared

Speaker 5: Our total revenue for the past year was RMB 130.6 billion, which represents the growth of 39% over year.

Speaker 5: In 2022, we focus on strengthening our core capabilities.

Speaker 5: We invested over RMB 10 billion in research and development last year.

Speaker 5: which is the highest amount since our establishment.

Speaker 5: Our goal is to further improve our technological know-how and bring the benefit of digitalization to our users and ecosystem partners.

Speaker 5: is to further improve our technological know-how and bring the benefit of digitalization to our users and ecosystem partners.

Speaker 5: We will continue to invest in R&D as a long-term commitment.

Speaker 5: to better serve our users and supply IT as a whole.

Speaker 5: During the past year,

Speaker 5: We are encouraged to see many of our young colleagues take on more responsibilities.

Speaker 5: can step into bigger roles.

Speaker 5: These young talents are full of passion and creativity to have demonstrated their ability to take on new challenges

Speaker 5: explore different possibilities.

Speaker 5: and asking our veterans with patience and determination.

Speaker 5: We will continue to provide more personal environment opportunities for them to grow as future leaders.

Speaker 5: of environment opportunities for them to grow as future leaders.

Speaker 5: But the young company still in the investment stage...

Speaker 5: We will remain agile and energetic as we move forward.

Speaker 5: And we are committed to adapting to trends in consumer preferences.

Speaker 5: and we are committed to adapting to trends in consumer preferences.

Speaker 5: My team and I are eager to keep exploring and identifying the right opportunities.

Speaker 5: only by the right opportunities.

Speaker 5: who invest and execute relentlessly.

Speaker 5: to create value for consumers and the society.

Speaker 5: In Q4, we observe the rising sentiment among our users.

Speaker 5: To support consumption recovery, we actively elaborate resources in a pin-to-do platform.

Speaker 5: We actively elaborate resources in a pin-doodle platform.

Speaker 5: using a promotion

Speaker 5: We stepped up our investment to further improve consumer engagement and build their trust.

Speaker 5: For example, during the double 11 period, last quarter.

Speaker 5: We provided robot coupons and discounts in a simple and straightforward way.

Speaker 5: making shopping easier and more enjoyable for our consumers.

Speaker 5: more enjoyable for our consumers.

Speaker 5: We are also working hard to enlarge the diversity of products on our platform.

Speaker 5: to address our consumers' diversity.

Speaker 5: With efforts of our platform as well as merchants,

Speaker 5: We saw decent performance across various categories during promotion season.

Speaker 5: For example, categories such as mobile phones

Speaker 5: and cosmetics, so encouraging growth among users with different demographics.

Speaker 5: The auto volume of many seasonal agricultural products more than doubled, which helped to boost consumer awareness of various local agricultural production regions.

Speaker 5: The Chinese New Year happened earlier this year.

Speaker 5: We launched the Chinese New Year promotion in late December to meet consumer needs. We worked closely with merchants all over the world who curated more product selections for consumers.

Speaker 5: And we are happy to see that our efforts have paid off.

Speaker 5: with many imported produce such as curry from Chile and salmon from Norway, receiving very positive feedback.

Speaker 5: We are glad to contribute to in supporting consumer confidence.

Speaker 5: As the consumption continues to recover and consumer sentiment continues to improve, everyone can see the potential opportunities in this market.

Speaker 5: to recover and consumer sentiment continues to improve. Everyone can see the potential opportunities in this market.

Speaker 5: As the industry evolves, we notice a number of recent moves that appear. I believe how the competition is beneficial for the English industry.

Speaker 5: As the industry evolves, we notice a number of recent moves that appear. I believe healthy competition is beneficial for the industry. But sometimes...

Speaker 5: Will competition intensify?

Speaker 5: Some companies may take different actions.

Speaker 5: Some companies may take different actions. For us,

Speaker 5: We will always adhere to our firm's beauty as a company, focused on our own sustainable environment.

Speaker 5: embrace competition even when sometimes he involves unsustainable practices from peers.

Speaker 5: We always think about how to better serve our consumers.

Speaker 5: We are also fully aware that we still have a long way to go before we can fully meet consumers evolving needs. We are committed to deepening our value proposition of more savings, more fun.

Speaker 5: In addition, we will continue investing in supply chain.

Speaker 5: to improve supply chain efficiency and satisfy consumers' increasing needs for quality products.

Speaker 5: In a manufacturing sector, for example.

Speaker 5: Tindodo can quickly gather consumer insight to help manufacturers make more informed decisions

Speaker 5: on project design and production.

Speaker 5: This enables the creation of products that better match consumer needs and positive on savings to consumers.

Speaker 5: to the creation of products that better match consumer needs and pauses on the savings to consumers. In the pastARM tissue requested by the blatantly St edge as a K Gin

Speaker 5: We wrote out multiple initiatives.

Speaker 5: to help manufacturers directly engage with end consumers.

Speaker 5: Take a manufacturer in the personal care sector as an example.

Speaker 5: We use our insights to identify opportunities or personalize quality products among younger generations.

Speaker 5: As a result, the manufacturer developed personal care products with present features and designs.

Speaker 5: We should receive excellent market feedback.

Speaker 5: This also helped manufacturers to gradually establish its own brand.

Speaker 5: Over the past several years,

Speaker 5: We have helped incubate thousands of manufacturers' brands in this way. Our price and insights and technology has helped manufacturers better position themselves. We have developed popular products in a rapid changing market and reduced uncertainty in production.

Speaker 5: We are dedicated to build a platform that is accessible to all merchants and brands regardless of time.

Speaker 5: to build a platform that is accessible to all merchants and brands regardless of size.

Speaker 5: In the agricultural sector,

Speaker 5: We continue to utilize our resources and technology to promote digital inclusion and generate a positive impact.

Speaker 5: We devote ourselves to facilitating the adoption of agri-tech solutions.

Speaker 5: the other option of agri-tech solutions.

Since 2020, Tindodo has hosted a flagship smart agriculture competition for three consecutive years, offering a stage for young agricultural researchers and growers.

to explore practical technology solutions.

that improve yield, shorten production cycle.

promote sustainability.

We also have teams from previous competitions to commercialize their technical solutions on a large scale. By promoting AgriTech adoption...

We hope to push forward agricultural modernization.

Another key driving force is the training of new partners.

These young new farmers have returned to their hometown after years of experience in life studies. They have checked studies about the latest tools such as live streaming.

Can they have full of energy and drive?

with the help of insights from our platform.

It is a very good understanding of consumer needs and play an important role in their local communities. It is a very good understanding of consumer needs and play an important role in their local communities.

On average, one such new farmer can bring 5 to 10 other young people into e-commerce.

creating around 50 local job opportunities.

the local job opportunities directly or indirectly.

In addition, our efforts in supply chain have generated a meaningful positive impact for the society. For example, last quarter, bad weather in winter caused a supply chain disruption.

which prompted us to quickly assemble a dedicated team and launch a nationwide campaign with people's daily.

Through our Help on the Farmer channel on Pinduoduo platform, we provided dedicated traffic support to help affected farmers to sell their unsold seasonal produce by reaching more end consumers in a short period of time.

Our do-do grocery teams all across the country also helped spread an important role as each team visited various agricultural production regions in their harvest. The cause also produced directly from farmers and quickly matched it to the market.

with local consumer demands to sell it. We are team's strong effort.

We were able to sell nearly 15,000 tons of agricultural produce nationwide during this campaign.

And we are encouraged to see that our surprising capabilities can create tangible value for the sector in its past.

We are proud to receive the FAO 2022 Innovation Award from the United Nations Food and Agriculture Organization, which recognizes innovation that creates an impact in agricultural supply chain.

This award is a vote of confidence in our holistic and proactive approach to agriculture. And it motivates us to keep forging ahead so that more and more people can enjoy the benefits of digital inclusion and technology production in agriculture.

a vote of confidence in our holistic and proactive approach to agriculture. And it motivates us to keep forging ahead so that more and more people can enjoy the benefits of digital inclusion and technology of production in agriculture.

Here, I would also like to provide an update on Timo, a new global online marketplace that we launched in September 2022.

Timo and Pinoto are sister companies under the parent company PVD Holdings.

which has built the sourcing, logistics, and fulfillment capabilities

The web to support its various businesses.

to various businesses.

We try to create our own unique value with TV.

So we always start from the fundamental consumer needs and explore how we can deliver them well.

People will stick to the values of empowerment, diversity and inclusion, integrity, as well as social responsibility.

As we enter the new year, we remain committed to creating value for all stakeholders.

Therefore, we will remain patient and in that for the long term.

Our goal is to further improve the service it provides.

to further improve the services they provide to consumers.

and bring more businesses into a digital economy to increase opportunities for local communities and small businesses.

Thank you for your continued support. And now let me turn it over to June to update you on our financial performance.

Thank you, Leigh. Hello, everyone. Now let me walk you through our financial performance and fiscal year ended December 31, 2022.

In terms of income statement our total revenue has improved to 46% year-over-year trying to be 39.8 billion in the fourth quarter.

and 39% year-over-year can be $130.6 billion for the full year of 2022. This was mainly driven by an increase in revenues from online marketing services and transaction services.

Revenues from online marketing services and others won the 31 billion discorder of 38% compared to the same periods of 2021. This was primarily due to an increase in merchant activities as a result of improvements in consumer sentiment.

Revenues from online marketing services and others won the 31 billion this quarter, up 38% compared to the same periods of 2021. This was primarily due to an increase in merchant activities as a result of improvements in customer sentiment.

Our transaction services revenue this quarter was $8.8 billion, up 86% by the same period of 2021.

When we own the cost and expenses, our total cost of revenue increased 37% from RMB $6.5 billion in Q4 2021 to RMB $8.9 billion this quarter. The total cost of revenue increased 37% from RMB $6.5 billion in Q4 2021 to RMB $8.9 billion this quarter.

For the full year, our total cost of revenue decreased 1% through RMB 31.5 billion.

Total operating expenses for this quarter were RMB21.8 billion on a GAAP basis versus RMB13.8 billion in the semi-quarter of 2021.

On a non-GAAP basis, our total operating expenses increased to RMB 19.3 billion this quarter, from RMB 12.3 billion in Q4 2021. During the past quarter, we devoted more resources to better address user needs, and encouraged their consumption of confidence.

as well as step up investments in our long-term focus areas, such as R&D and agriculture.

As such, our total non-gap operating expenses as a percentage of total revenues have increased from 45% in Q4 2021 to 48% in this quarter.

For the full year of 2022, total gap operating expenses were RMB68.7 billion.

from RMB 55.3 billion last year.

Next slide. Looking into specific expense items. Our known gap sales in the Maxine Expenses this quarter were RMB 17.2 billion, up 50 nautical cents versus the 7th quarter of 2021. We offered various forms of promotion.

and subsidies and increased advertising spending in Q4 to support consumption recovery. On a long gap basis, our sales and marketing expenses as a percentage of our revenues this quarter was 43%, compared with 40% for the same quarter in 2021.

For full year, non-gap sales and maximum expenses increased from RMB43.2 billion in 2021 to RMB32.2 billion in 2022.

Unknown gaps, general and un-traded expenses will be $360.8 million in Q4.

versus RMB 100 in October 2021. Our annual non-GAV General and Administrative Expenses were RMB 1 billion in 2022 versus RMB 748.4 million last year.

and development expenses were under $1.7 billion in the fourth quarter, an increase of 34% from under $1.3 billion in the same quarter of 2021. The increase was primarily due to the internet trade in Stockholm and the recruitment of more experienced R&D personnel.

and Silver Coast.

As a technology driven company, the value we create cannot be achieved without our R&D efforts. We need to further grow our R&D capabilities to understand the constantly evolving customer demands and drive innovation to satisfy their needs more effectively.

In addition, we continue to leverage our technology background to improve digital technology adoption success such as agriculture and manufacturing. Also, it is worth noting that for a full year, our annual gap R&D expenses to past R&D 10 to last Strategically, We had M.A. and PhDsn, while TOEFL and OM

on a non-GAAT basis and RMB 11.6 plan on non-GAAT basis.

Net income attributable to ordinary shareholders was RMB$9.5 billion for the quarter and RMB31.5 billion for the food year. In the fourth quarter, space earnings for ADS was RMB7.4 to 2.

and the dilutely anions per ADH was RMB6.52. There is a specific anions per ADH of RMB5.26 and the dilutely anions per ADH of RMB4.66 in the same quarter of 2021.

non-GAAP net income attributable to ordinary shareholders was RMB 12.1 billion for the quarter. In the fourth quarter, non-GAAP dilute earnings per ADS was RMB 8.34 versus RMB 5.88 in the quarter of 2021.

not income attributable to ordinary shareholders with RMB 12.1 billion for the quarter. In the fourth quarter, non-GAAP dilute earnings per ADS was RMB 8.34 versus RMB 5.88 in the same quarter of 2021. That concludes the income statement.

Now, let me move on to cash flow. Our net cash flow generated from operating activities will find $26.6 billion for Q4.

and RMB48.5 billion for full year of 2022, compared with RMB16.4 billion in the same quarter of 2021, and RMB28.8 billion in 2021, primarily due to the increase in net income and the changes in working capital.

for the full year of 2022, compared with RMB 16.4 billion in the same quarter of 2021 and RMB 28.8 billion in 2021 primarily due to the increase in net income and the changes in working capital.

As of December 31, 2022, the company had earned $149.4 billion in cash, cash equivalents, and short-term investments. Thank you. This concludes my prepared remarks.

Thank you, Jing. Next, we will move on to the Q&A session. For today's Q&A session, we will take questions from analysts on the line.

We could take a maximum of two questions per analyst. Lei will answer questions in Chinese, and I will help translate his remarks for easier reference. Operator, we may now take questions online.

of two questions per analyst. And Lei will answer questions in Chinese and I will help translate his remarks for easier reference. Operator, we may now take questions online.

Ladies and gentlemen, we will now begin the question and answer session.

Ladies and gentlemen, we will now begin the question and answer session. If you wish to ask a question, please...

please press star 1 on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star 2. Participants are requested to restrict two questions at each time.

telephone and wait for your name to be announced. If you wish to cancel your request, please press star 2. Participants are requested to restrict two questions at each time. Your first question comes from...

I'm Joyce Ju with Bank of America.

Please ask your question.

Thanks, management, for taking my questions. I have two questions. The first one is, as now Pingoduo developed into an e-commerce conglomerate with multiple business initiatives globally, how could management actually prioritize different business lines and can management share more information about the business?

Your online marketing service revenue growth 38% year-over-year last quarter ahead of the industry growth and peers. But at the same time, we have seen this represent a deceleration from the third quarter. How should we understand the growth and how should we actually expand the momentum going forward?

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Hello, Joyce, and thank you for your questions, and I can take your question on strategy first.

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First of all, we are still in our development stage instead of a stabilized phase. And we still have a long way to go in terms of serving consumers well and to better serve consumers. We are still in our development stage instead of a stabilized phase.

we will firmly stick to our strategy, which is to create long-term value through R&D and technology.

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We are a technology driven company and more than half of our employees are engineers. Also, many of our core management team members

also from a technical background.

So from the perspective of creating more value for users, many areas such as understanding rapidly changing user preferences and continuously iterating our services.

All these areas are inseparably linked to our R&D capabilities.

And we firmly believe that the key to serving our users well in the future is to further strengthen our R&D capabilities.

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And at the same time, we will continue to focus on supporting the agriculture and manufacturing industries. We will continue to focus on supporting the agriculture and manufacturing industries.

through technology.

For agriculture, we will continue to invest in the various links along the agriculture value chain with our technical expertise.

so that we can facilitate the efficient distribution of agricultural produce.

And we will also leverage our resources on the Pringleduo platform to bring more Agri-Tech solutions to the market faster. As for the manufacturing sector, we will devote...

more resources and help many more manufacturers as well as factories to go through digital transformation and improve their efficiency.

help many more manufacturers as well as factories to go through digital transformation and improve the air efficiency.

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And we have a very clear long term strategy to strengthen our R&D capabilities and to improve the efficiency of agricultural and manufacturing supply chains.

Our strategic direction as well as the investment level will not be affected by short-term external trends or fluctuations and we will continue to make long-term and patient investments.

strategic direction as well as the investment level will not be affected by short-term external trends or fluctuations. And we will continue to make long-term and patient investment.

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And as for your second question regarding our revenue growth, well throughout the past quarter we saw a strong resilience and also bigger in the consumption market. And we are confident toward the prospects.

of this market. During events such as the W11 and the Chinese New Year promotion, we collaborated with more merchants and also brands and provided consumers with the best quality products.

with a broader selection of high quality products. Many consumers showed good shopping demand at the same time.

Thank you.

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And under the backdrop of consumption recovery, we have also devoted more resources to better fulfill consumer demand. In the fourth quarter, the Pinot Noir platform leveraged its focus.

serving the fundamental needs of users. And sales volume of daily essential products on the platform showed steady growth. Furthermore, as consumer demand toward high quality merchandise is growing.

categories including mobile phones, beauty cosmetics, and maternal and baby care products or had decent growth.

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At the same time, we are fully aware that the competition in the market is is intense and consumers have many different e-commerce platform.

and shopping formats to choose from.

We still have a lot to further improve. So as a result, our team must continue to work hard and we plan to step up investment, strengthen our core competencies.

and continue to provide consumers with more savings, more fun shopping experience. Thank you. Hi, operator. We can take that question online.

Thank you. Your next question comes from Kenneth Fong with Credit Suisse. Please ask your question.

Hi, thank you management for taking my question. I have two questions. First is a management comment on the latest competitive landscape. Specifically, we saw a number of your peers stress the importance of low price. Do you have any plan or program in response?

How do you position yourself to achieve quality growth in such an environment? And my second question is about sales to marketing, which we saw an acceleration in sales to marketing expenses of 56% year-over-year to around $18 billion in the fourth quarter. So what investment opportunities did you see as consumer sentiment improved?

Are you becoming more aggressive in terms of investment, or does it just reflect a temporary seasonal hike?

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In the meantime, we'd like to thank you all! We'll see you again in the next session

Hi, Kenneth. So I will first share my views on your question on competition. The e-commerce market in China is huge and it is full of energy. Also with the optimization, the market is not only a good place to be, but also a good place to be. So I think that the market is a good place to be. I think that the market is a good place to be. I think that the market is a good place to be.

in pandemic control measures. It continues to show strong resilience. And I believe it is easy for everybody to see the opportunities in this market. Therefore, I think it is natural and also logical.

for e-commerce peers to choose to raise lending, which makes competition more intense as a result.

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Also, we have noticed the recent moves in the industry.

and we saw that different companies may form different strategies in face of competition. And as I have mentioned in my remarks, we believe that healthy competition is a very important tool for the competition.

is beneficial to consumers and the entire industry. But when competition intensifies, sometimes peers' reaction could go in a different direction. And we will always keep our duty in mind.

focus on our own healthy development and embrace industry competition, even when sometimes it involves unsustainable practices from peers.

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For us, we believe that serving consumers better is the key to creating long-term value. And we will continue to provide consumers with a better life.

a more savings, more fun shopping experience. Therefore, we start from our own unique value propositions. And our team and I are exploring how to provide more value to consumers. And toward this end, we'll be able to provide more value to consumers. And we'll be able to provide more value to consumers.

we will continue to focus on R&D so that we can better understand the new needs and preferences of consumers, improve their shopping experience. And in this way, we can increase consumer satisfaction.

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At the same time, we are fully aware that we still have a lot to improve. So as a result,

we will further step up investments, especially in the areas of agriculture and manufacturing sectors, as well as improve supply chain efficiency so that we can create more values for consumers.

and deepen our more savings, more farm proposition. So this is my view on industry competition. As for your question on sales and marketing expenses, I will leave it to Jun to answer your question. Thank you.

Hi Kenneth, this is Rui. Let me take the question on sales and marketing expenses. Well, during the course quarter, we saw consumption recovery trends continue. Given this background, we offered various types of promotions.

and subsidies to support consumption, as I just mentioned in that remarks. And these are those are reflected in the financial number. And you can see that our sales and marketing expenses in Q4 increased and

Actually, we always carefully evaluate the ROI for area investments for all of our projects. We hope to allocate resources to places that can generate long-term, high-quality development. Basically, good opportunities that can create value.

We invest firmly. Thank you.

Thank you. Hi, I'm Peter. We can go to the next panelists on the line.

Thank you. Your next question comes from Ellie Jang with Macquarie. Please ask your question. Thank you, management, for taking my questions. I have two regarding our overseas product, Timu. We saw that you are now introducing Timu to Canada and Australia. Also, we saw that the website in commercial is being put out on Super Bowl.

Can management share with us some latest developments and operational updates? How would Timo differentiate from the more well-established players in the current market? The second question is on the relative impact on the fourth quarter financials. How did Timo's revenue being booked? Any operating metrics that management could share?

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Hi, Ali. Let me take your question on global business.

So for this initiative, we aspire to create our own unique value. For example, using our supply chain know-how that we have accumulated over the years, we can offer consumers a curated selection of quality goods.

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and since we launched this platform in September of last year,

It has only been about half a year. And instead of focusing too much on competitors right now, we actually pay more attention to our own development and product iteration.

We see that different markets in different regions, they have many differences. And we still have a lot to learn and a lot to improve. So we will remain patient.

iterate constantly and strive to create long-term value. The next question, from

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In addition, we also appreciate the support coming from consumers and merchants who have chosen our platform at this early stage of its development.

Their support motivates us to do this business well. And they have also given us many valuable advices to improve our services. As for the second part of the question,

on the financial revenue booking and financial impact of our Timu business. I will hand it over to Jing to further discuss. Okay, let me address the questions on revenue booking and financial impact of our global business. So, let me go on to Timu.

Well, it just started out roughly half a year ago and given its early stage nature and the financial impact from this business into fall is relatively small. In terms of revenue looking, this business is recorded as a 3P model.

We are entering new markets, so we need to understand customer demand better and experiment how to make their demand effectively. We are not driven by financial metrics. Instead, the most essential thing for us right now is to build our own unique value of the long-term.

Over time, financial metrics are just a reflection of the value we can generate. And in terms of future investment and financial impact, as always, we will continue to carefully evaluate different opportunities to our investment disciplines.

and keep up with our high ROI standards. Thank you. Okay, hi operator. I think we still have time to take two questions for one more analyst.

are high ROI standards. Thank you. Hi, operator. I think we still have time to take two questions from one more analyst.

Thank you. Your next question comes from Yang Bai with VICC. Please ask your question. Hi, thank you for taking my question. My first question, I'm trying to share with us some tips on your total grocery business.

We understand that online grocery business is slowing down. Are you still expanding this business? Or do you focus more on efficiency and cost control right now? My second question is about the profitability. We noticed that your profitability margin decreased from the last two quarters.

Given Q4 is usually a strong culture in terms of profits, does that mean that you have shifted focus on more to growth? And what opportunities are you spending extra?

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Hi, Baiang. Let me take your question on our dual grocery business.

Pingdao dual started by selling agricultural products and agriculture is one of our key long term strategies. Through our total grocery business we leverage technology to improve agricultural.

distribution efficiency and match local supply and demand effectively. This business plays a very critical role for leveraging our unique positioning in agriculture and creating our own unique value.

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And in our total grocery business, we have seen the value that we can generate by improving supply chain efficiency in areas such as offering more choices of local produce.

increasing fulfillment efficiency and improving user experience. At the same time, the total grocery business also creates positive social values.

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and the local teams of the grocery went upstream into the agricultural production region.

to source agricultural produce directly and match these products efficiently with local demands.

agricultural produce directly and match these products efficiently with local demands.

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We are still in the early stage in our agriculture investments. And we see a lot of areas that can be further improved with technology. So for total grocery, we are still far away from the best level of services.

and there are still a lot to improve. As a result, we will remain down to earth and continue to make long-term investments in order to further create values for consumers. Thank you. This is Jane. Let me take your question on the profitability.

And while we are in our development stage, we still see many areas to improve and create more value for users. We continue to step up and invest in key areas to strengthen our R&D capabilities, support agriculture and manufacturing.

through technology and improve our service offerings to users. And profitability is not our current priority. With that said, we always practice financial prudence for every investment. Be careful about your ITRI and ask ourselves if it can...

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

I have you.

The.

or participants are in a listen-only mode. There will be a presentation followed by a question and answer session, at which time if you wish to ask a question you will need to press star 1 on your telephone. I must advise that today's conference is being recorded. I would now like to hand the conference over to your host today, Mr Chen Peng. Sir, please go ahead.

There will be a presentation followed by a question and answer session at which time if you wish to ask a question You will need to press star 1 on your telephone. I Must advise that today's conference is being recorded. I Would now like to hand the conference over to your host today. Mr. Chen Peng, sir, please go ahead

Thank you operator. Hello everyone and thank you for joining us today. My name is Chen and I will help host the earnings call. PDD Holdings earnings release was distributed earlier and is available on our website at investor.pddholdings.com as well as through global newsreel services. Before we begin, I would like to refer you to our safe harbor statements 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 the non-GAAP measures to GAAP measures. Joining us today on the call are Chen Lei, our Chairman and Chief Executive Officer, and Liu Jun, our VP of Finance. Lei will make some general remarks.

on our performance for the past quarter and our strategic focus. Jing will then take us through our financial results for the fourth quarter and fiscal year ended December 31, 2022. During the Q&A session, Lei will answer questions in Chinese and I will help translate. Please kindly note that all translations provided are for reference purpose only.

Thank you all for joining us on our early call for the fourth quarter and the fiscal year of 2022. Let me begin by summarizing our results for Q4 and the full year of 2022. Our total revenue for this quarter was RMB $2.5 million.

39.8 billion, which is a 46% increase compared to the previous year. Our total revenue for the past year was RMB, 130.6 billion, which represents the growth of 39% year-over-year.

In 2022, we focus on strengthening our core capabilities.

We invested over RMB 10 billion in research and development last year, which is the highest amount since our establishment.

Our goal is to further improve our technological know-how and bring the benefit of digitalization to our users and ecosystem partners.

We will continue to invest in R&D as a long-term commitment to better serve our users and society as a whole.

continue to invest in R&D as a long-term commitment to better serve our users and society as a whole. During the past year,

We are encouraged to see many of our young colleagues take on more responsibilities and step into bigger roles. These young talents are full of passion and creativity.

to have demonstrated their ability to take on new challenges, explore different possibilities, and asking our vision with patience and determination..

We will continue to provide more personal environment opportunities for them to grow as future leaders. As a young company still in the environment stage, we will remain agile and energetic as we move forward.

and we are committed to adapting to trends in consumer preferences. My team and I are eager to keep exploring and identifying the right opportunities.

When we find the right opportunities, we will invest and execute their landl

In Q4, we observed rising sentiment among our users. To support consumption recovery, we discovered rising sentiment among our users.

We actively leverage resources in a pin-the-door platform. During the promotion season, we set up our investment to further improve consumer engagement and rebuild their trust. For example, during the inflicted smiles in time of a loose reunion between Sujol SUYORI permission of salesmen in government de-ATH duct,t 11th year, we're in last quarter.

We provided robot coupons and discounts in a simple and straightforward way.

making shopping easier and more enjoyable for our consumers. We are also working hard to enlarge the diversity of products on our platform to address our consumers' diversity.

and shopping easier and more enjoyable for our consumers. We are also working hard to enlarge the diversity of products of our platform to address our consumers' diversity.

With efforts of our platform as well as merchants, we saw decent performance across various categories through the promotion season. For example, categories such as mobile phones and cosmetics saw encouraging growth among users with different demographics. The auto volume of many seasonal agricultural products more than doubled.

which helped to boost consumer awareness of various local agricultural production regions. As the Chinese New Year happened earlier this year, we launched the Chinese New Year promotion in late December to meet consumer needs. We worked closely with merchants all over the world to meet the needs of the Chinese.

who curate more product selections for consumers. And we are happy to see that our efforts have paid off with many imported produce such as curry from Chile and the salmon from Norway, receiving very positive feedbacks. We are glad to contribute to in supporting consumer confidence.

As consumption continues to recover and consumer sentiment continues to improve, everyone can see the potential opportunities in this market.

As the industry evolves, we notice a number of recent moves that are here. I believe healthy competition is beneficial for the Indian industry.

As the industry evolves, we notice a number of recent moves that appear. I believe healthy competition is beneficial for the industry. But sometimes...

When competition intensifies, some companies may take different actions. For us, we will always adhere to our firm's beauty as a company. Focus on our own sustainable environment. Embrace competition even when sometimes...

he involved unsustainable practices from peers. We always think about how to better serve our consumers. We are also fully aware that we still have a long way to go before we can fully meet consumers evolving needs.

We are committed to deepening our value proposition of more savings, more funds. In addition, we will continue to invest in supply chain.

improve supply chain efficiency, and satisfy consumers' increasing needs for quality products.

and satisfy consumers' increasing needs for quality products.

In the manufacturing sector, for example, TindoDoo can quickly gather consumer insights to help manufacturers make more informed decisions on project design and production.

This enables the creation of products that better match consumer needs and positive on savings to consumers.

This enables the creation of products that better match consumer needs and positive on what savings to consumers.

to the creation of products that better match consumer needs and passes on savings to consumers.

We roll out multiple initiatives to help manufacturers directly engage with end consumers. Take a manufacturer in the personal care sector as an example. We use our insights to identify opportunities for personalized quality products among the younger generation. That's the result.

the manufacturer developed personal care products with present features and designs, which received excellent market feedbacks. This also helped the manufacturers to gradually establish its own brand. Over the past several years,

We have helped incubate thousands of manufacturers' brands in this way. Ospreyton Insights and Technology has helped manufacturers better position themselves. We have developed popular products in the rapid changing market and reduced uncertainty in production.

We are dedicated to build a platform that is accessible to all merchants and brands regardless of size. In the agricultural sector, we have a lot of purchases built in.

We continue to utilize our resources and technology to promote digital inclusion and generate a positive impact.

We devote ourselves to facilitating the adoption of agri-tech solutions. Since 2020, Tindodo has hosted a flagship smart agriculture competition for three consecutive years.

offering a stage for young agricultural researchers and growers.

a stage for young agricultural researchers and growers to explore practical technology solutions.

that improve yield, shorten production cycle, and promote sustainability. We also have teams who improve their competition.

to commercialize their technical solutions on a large scale. By promoting agri-tech adoption, we hope to push forward agricultural modernization.

Another key driving force is the training of new farmers. These young new farmers have returned to their hometown after years of experience in logistics. There are texts that lead about the latest tools such as live streaming.

and they are full of energy and drive. With the help of Insights from our platform,

It is a very good understanding of consumer needs and play an important role in the local communities.

On average, one such new farmer can bring 5 to 10 other young people into e-commerce.

creating around 50 local job opportunities directly or indirectly. In addition, our efforts in supply chain have generated a meaningful positive impact for the society. For example, last quarter, bad weather in winter caused a supply chain disruption.

which prompted us to quickly assemble a dedicated team and launch a nationwide campaign with people's daily.

Our doodle grocery teams all across the country also helped spread an important role as each team visited various agricultural production regions in their farmers. Soars also produced directly from farmers and quickly matched it with local consumer demands to sell it. For more information visit www.fema.gov

teams all across the country also helped spread an important role of each team visited various agricultural production regions in their harvest. Soils also produced directly from farmers and quickly matched it with local consumer demands to sell it. So let's see how this process will adapt so the thematic THERM

With our team's strong efforts, we were able to sell nearly 15,000 tons of agricultural produce nationwide during this campaign. And we are encouraged to see that our supply chain capabilities can create tangible value for the sector and society.

We are proud to receive the FAO 2022 Innovation Award from the United Nations Food and Agriculture Organization, which recognize innovation that creates an impact in agricultural supply chain. This award is a vote of confidence in our holistic...

and proactive approach to agriculture. And it motivates us to keep forging ahead so that more and more people can enjoy the benefits of digital inclusion and technology adoption in agriculture. And.... category five message that all farmers canSafely protect E argument with you as a thank you to laughter... to our communities...

I would also like to provide an update on Timo, a new global online marketplace that we launched in September 2022. Timo and Pimoduo are sister companies under the parent company PVD Holdings, which have built the sourcing, logistics, and fulfillment capabilities of PVD Holdings.

In fact, to support its various businesses, we try to create our own unique value with cost- impaired businesses.

So we always start from the fundamental consumer needs and explore how we can serve them well. People will stick to the values of empowerment, diversity and inclusion, integrity as well as social responsibility.

we start from the fundamental consumer need and explore how we can serve them well. People will stick to the values of empowerment, diversity and inclusion, integrity, as well as social responsibility.

As we enter the new year, we remain committed to creating value for all stakeholders. Therefore, we will remain patient and invest for the long term. Our goal is to further improve the service they provide to consumers.

and bring more businesses into a digital economy to increase opportunities for local communities and small businesses. Thank you for your continued support. And now, let me turn it over to Jim to update you on our financial performance.

and bring more businesses into a digital economy to increase opportunities for local communities and small businesses. Thank you for your continued support. And now let me turn it over to Jun to update you on our financial performance.

Thank you, Le. Hello, everyone. Now, let me walk you through our financial performance in the fourth quarter and fiscal year ended December 31, 2022. In terms of income statement, our total revenues increased 46% year-over-year, which would be 39.8 billion in the fourth quarter, and 39% year-over-year, which would be 130.6 billion for the full year of 2022.

This was mainly driven by an increase in revenues from online marketing services and transaction services. Revenues from online marketing services and others were under 31 billion this quarter of 38% compared to the same period of 2021. This was primarily due to an increase in merchant activities.

as a result of improvements in consumer sentiment. Our transaction services revenue fiscal tax won the $8.8 billion, up 86% of 2021.

When we own the cost and expenses, our total cost of revenue decreased 37% from RMB 6.5 billion in Q4 2021 to RMB 8.9 billion this quarter. For the full year, our total cost of revenue decreased 1% to RMB 31.5 billion.

Total operating expenses for RMB 21.8 billion on a GAAP basis versus RMB 13.8 billion in the same quarter of 2021. On a non-GAAP basis, our total operating expenses increased to RMB 19.3 billion this quarter.

areas such as R&D and agriculture.

As such, our total non-gap operating expenses as a percentage of total revenues have increased from 45% in Q4 2021 to 48% in this quarter. This is the full year of 2022.

Total gap operating expenses were RMB68.7 billion, up from RMB55.3 billion last year.

We are looking into specific expense items. Our known gap sales in the Maxine Expenses Fifth Quarter, or RMB 17.3 billion, of 50,000% versus the Fifth Quarter of 2021. We offered various forms of promotion and subsidies and increased advertising spending.

in Q4 to support consumption and recovery. On a non-GAAP basis, our sales and marketing expenses as a percentage of our revenues this quarter was 43%, compared with 40% for the same quarter in 2021. For full year, non-GAAP sales and marketing expenses increased from RMB43.2 billion in 2021.

in 2022 versus RMB 748.4 million last year. Our non-GAAP research and development expenses were RMB 1.7 billion in both quarters. An increase of 34% from RMB 1.3 billion in the same quarter of 2019.

our R&D efforts. We need to further grow our R&D capabilities to understand the constantly evolving customer demands and driving innovation to satisfy their needs more effectively. In addition, we continue to leverage our technology background to improve digital technology adoption factors.

such as agriculture and manufacturing. Also, it is worth noting that for a full year, our annual GAAP R&D expenses surpassed R&D 10 billion for the first time. We aim to continue to step up the investment in this area.

to form a solid foundation for our long-term development. Operating profit for the quarter was RMB$9.1 billion on a gap basis and RMB$11.6 billion on a long gap basis. Net income attributable to ordinary shareholders was RMB$9.5 billion for the quarter on a hard to afford

and RMB31.5 billion for the food year. In the fourth quarter, face-to-earnings per ADS was RMB7.42 and dilutely-earnings per ADS was RMB6.52. The face-to-earnings per ADS of RMB5.26

and diluted earnings per ADS of RMB 4.66 in the same quarter of 2021. non-GAAP net income attributed to ordinary shareholders was RMB 12.1 billion for the quarter. In the fourth quarter, non-GAAP diluted earnings per ADS was RMB 8.34.

versus RMP53-ATA in the same quarter of 2021.

That completes the income statement. Now let me move on to cash flow. Our net cash flow generated from operating activities was only $26.6 billion for Q4, and only $48.5 billion for full year of 2022.

compared with RMB 16.4 billion in the same quarter of 2021, and RMB 28.8 billion in 2021, primarily due to the increase in net income and the changes in working capital. As of December 31, 2022, RMB 16.4 billion in the same quarter of 2021, and RMB 28.8 billion in the same quarter of 2021,

The company had already 149.4 billion in cash, cash equivalent and short-term investments. Thank you. This concludes my prepared remarks. Thank you, Jing. Next, we will move on to the Q&A session.

For today's Q&A session, Lei and Jill will take questions from analysts on the line. We could take a maximum of two questions per analyst.

and Lei will answer questions in Chinese and I will help translate his remarks for easier reference. Operator, we may now take questions online.

questions in Chinese and I will help translate his remarks for easier reference. Operator, we may now take questions online.

Ladies and gentlemen, we will now begin the question and answer session. If you wish to ask a question, please press star 1 on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star 2. Participants are requested to restrict two questions at each time.

We will now begin the question and answer session. If you wish to ask a question, please press star 1 on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star 2. Participants are requested to restrict two questions at each time. Your first question comes from the audience.

from Joyce Ju with Bank of America. Please ask your question. Thanks management for taking my questions. I have two questions. The first one is, as now Pinduoduo developed into an e-commerce conglomerate with multiple business initiatives globally, how could management actually prioritize different business lines and can management share more about your latest strategies going forward? And have you shifted your strategy after you have expanded your business lines globally?

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Hello, Joyce, and thank you for your questions. I can take your question on strategy first.

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First of all, we are still in our development stage instead of a stabilized phase. And we still have a long way to go in terms of serving consumers well.

and to better serve consumers. We will firmly stick to our strategy, which is to create long-term value through R&D and technology.

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We are a technology driven company and more than half of our employees are engineers. Also, many of our core management team members are also from a technical background.

So from the perspective of creating more value for users, many areas such as understanding rapidly changing user preferences and continuously iterating our services.

All these areas are inseparably linked to our R&D capabilities. And we firmly believe that the key to serving our users well in the future is to further strengthen our R&D capabilities.

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At the same time, we will continue to focus on supporting the agriculture and manufacturing industries through technology. For agriculture, we will continue to invest in the various links along the agriculture value chain. For more information, visit www.cctexas.gov

with our technical expertise so that we can facilitate the efficient distribution of agricultural produce.

And we will also leverage other resources on the Pringleduo platform to bring more Agri-Tech solutions to the market faster. As for the manufacturing sector, we will devote more resources and help many more manufacturers.

as well as factories to go through digital transformation and improve their efficiency.

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And we have a very clear long term strategy to strengthen our R&D capabilities and to improve the efficiency of the agricultural and manufacturing supply chain. Our strategic direction as well as the investment level will not be affected by short term external trends or fluctuations.

and we will continue to make long-term and patient investment.

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This is to address the fees. The As for your second question regarding upper revenue growth.

We collaborated with more merchants and also brands and provided consumers with a broader selection of high quality products. Many consumers showed good shopping demand at the same time.

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sales volume of daily essential products on the platform showed steady growth. Furthermore, as consumer demand toward high quality merchandise is growing, categories including mobile phones, beauty cosmetics, and maternal and baby care products all had decent growth.

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We are fully aware that the competition in the market is intense. And consumers have many different e-commerce platforms and shopping formats to choose from. We still have a lot to further improve.

So as a result, our team must continue to work hard and we plan to step up investment, strengthen our core competencies and continue to provide consumers with more savings, more fun shopping experience. Thank you. Hi operator, we can take next question on the line.

Thank you. Your next question comes from Kenneth Fong with Credit Suisse. Please ask your question. Hi. Thank you management for taking my question. I have two questions. First is a management comment on the latest competitive landscape.

Specifically, we saw a number of your peers dressed to importance of low price. Do you have any plan or program in response? How do you position yourself to achieve quality growth in such an environment? And my second question is about sales and marketing. We saw an acceleration in sales and marketing expenses of 56% year over year to around $18 billion in the fourth quarter.

So what investment opportunities did you see? As consumer sentiment improved, are you becoming more aggressive in terms of investment or does it just reflect a temporary seasonal hike?

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So, I will first share my views on your question on competition. The e-commerce market in China is huge and it is full of energy.

Also, with the optimization in pandemic control measures, it continues to show strong resilience. And I believe it is easy for everybody to see the opportunities in this market. You

I think it is natural and also logical for e-commerce peers to choose to raise lending which makes competition more intense as a result.

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the recent moves in the industry. And we saw that different companies may form different strategies in face of competition. And as I have mentioned in my remarks, we believe that healthy competition is beneficial to consumers.

and the entire industry. But when competition intensifies, sometimes peers' reaction could go in a different direction. And we will always keep our duty in mind, focus on our own healthy development, and embrace many areas that we may not otherwise consider.

industry competition, even when sometimes eating loss unsustainable practices from peers.

competition even when sometimes it involves unsustainable practices from peers.

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We believe that serving consumers better is the key to creating long-term value. And we will continue to provide consumers with a more saving small-fun shopping experience. Therefore, we start from our own unique value propositions. And our team and I are exploring how to provide more value to consumers.

Toward this end, we will continue to focus on R&D so that we can better understand the new needs and preferences of consumers, improve their shopping experience. In this way, we can increase consumer satisfaction. Thank you.

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At the same time, we are fully aware that we still have a lot to improve. So as a result, we will further step up investments, especially in the areas of agriculture and manufacturing sectors.

as well as improve supply chain efficiency so that we can create more values for consumers and deepen our more savings, more farm proposition. So this is my view of industry competition.

ask for your question on sales and marketing expenses, I will leave it to June to answer your question. Thank you. Hi Kenneth, this is June . Let me take the question on sales and marketing expenses. Well, during the course quarter, we saw consumption recovery trend continue. And given this background, we offered a rare list type of promotions.

and subsidies to support consumption, as I just mentioned in that remarks. And these offers are reflected in the financial number, and you can see that our sales and marketing expenses in Q4 increased. And actually, we always carefully evaluate the ROI for area investments for all of our projects.

We hope to allocate resources to places that can generate long-term, high-quality development. When we see good opportunities that can create value, we invest firmly. Thank you. Hi, I'm Peter. We can go to the next silence on the line.

Thank you. Your next question comes from Ellie Jiang with Macquarie. Please ask your question. Thank you, management, for taking my questions. I have two regarding our overseas product, Timu. We saw that you're now introducing Timu to Canada and Australia. Also, we saw exciting commercials being put out on Super Bowl.

Can management share with us some latest developments and operational updates? How would TMO differentiate from the more well established players in the current market? The second question is on the relative impact on the fourth quarter financials. How did TMO's revenue being booked? Any operating metrics that management could share regarding the estimated loss levels, order size or unit economics? Do we have any GMV or growth targets for TMO going forward? Thank you.

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Hi, Ali. So let me take your question of global business.

So for this initiative, we aspire to create our own unique value. For example, using our supply chain know-how that we have accumulated over the years, we can offer our consumers.

curated selection of quality goods at attractive prices. And also through evolving our product features, we hope to improve consumers shopping experience.

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um and uh since we launched this platform in September of last year it has only been about half a year and instead of focusing too much.

on competitors right now. We actually pay more attention to our own development and product iteration. We see that different markets in different regions, they have many differences, and we still have a lot to learn and a lot to improve. So we will remain patient.

iterate constantly and create a strive to create a long term value.

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In addition, we also appreciate the support coming from consumers and merchants who have chosen our platform at this early stage of its development. Their support motivates us to do this business well, and they have also given us many valuable advices.

to improve our services. As for the second part of the question, the financial booking, revenue booking and financial impact of our Timbuk business, I will hand it over to Jing to further discuss. Okay, along with your three questions on revenue booking and financial impact of our global business, how big a difference did our financial domestics make? That was something that I felt that they Had to started to do it in a way that they were myself. So I'll move right into Angela's Sound STEPS at the end and let her begin the presentation. In the last 30 minutes,

and keep up with our high ROI standards. Thank you. Okay, hi, operator. I think we still have time to take two questions from one more analyst.

and keep up with our high ROI standards. Thank you. Okay, hi, operator. I think we still have time to take two questions for one more analyst.

Thank you. Your next question comes from Yang Bai with VICC. Please ask your question. Hi, thank you for taking my question. My first question, I managed to share with us some updates on your total grocery business. We understand that online grocery business is slowing down and are you still expanding this business?

or do you focus more on efficiency and cost control right now? My second question is about the profitability. We noticed that your profitability margin decreased from the last two quarters. Given Q4 is usually a strong quarter in terms of profits, does that mean that you have shifted focus?

more to growth and what opportunities are you spending extra? Mabling shows broader gaps in numbers over Wireless.

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And then, we'll go to the next question. So, let me take your question on our do-it-your-grocery business. Pinduoduo started by selling agricultural products, and agriculture is one of our key long-term strategies. Through our do-it-your-grocery business,

We leverage technology to improve agricultural distribution efficiency and match local supply and demand effectively. This business plays a very critical role for leveraging our unique positioning in agriculture.

and creating our own unique value.

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And in our total grocery business, we have seen the value that we can generate by improving supply chain efficiency in areas such as offering more choices of local produce, increasing fulfillment efficiency, and improving user experience.

At the same time, the total grocery business also creates positive social values.

the total grocery business also creates positive social values.

Now, if you believe, I'm not sure that you do not. Don't know my time. We do the last week. Don't. I'm sure you don't see various other known company.

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Let me give you a recent example here that in the fourth quarter, we launched a dedicated campaign to help us out through.

seasonal on-sold agricultural products to consumers directly. And the local teams of the grocery went upstream into the agricultural production region to source agricultural produce directly and match these products efficiently with local demands.

sold agricultural products to consumers directly. And the local teams of the grocery went upstream into the agricultural production region to source agricultural produce directly and match these products efficiently with local demands.

Now fair me a whole Don to without she mckindalg and door. If you twent what like? He's in the countryulturein M doghter, my her foodod Chair, So if she could to. She's a high bit on to wal creating. We all have a deformthe means northquake she. How much the whole LO the she trans up. Condo some with the juds she. We are to in the early stage in agr culture eleftment.

and we see a lot of areas that can be further improved with technology. So for total grocery, we are still far away from the best level of services, and there are still a lot to improve. As a result, we will remain down to earth and continue to make long-term investments.

in order to further create values for consumers. Thank you. This is Jane. Let me take your question on the profitability. And while we are in our development stage, we still see many areas to improve and create and more value for users.

We will continue to step up and invest in key areas to strengthen our R&D capabilities, support agriculture and manufacturing through technology and improve our service offerings to users. Thank you for your attention.

and profitability is not our current priority. With that said, we always practice financial prudence for every investment. We carefully evaluate ERI and ask ourselves if it can create long-term high quality development for us. We seek good opportunities and invest firmly. Thank you.

Okay, thank you everybody for joining us on the conference call today. That concludes the call and have a great day. Ladies and gentlemen, that does conclude our conference for today. Thank you all for participating. You may now disconnect.

Q4 2022 PDD Holdings Inc Earnings Call

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