Q1 2024 PDD Holdings Inc Earnings Call
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Operator: Ladies and gentlemen, thank you for standing by, and welcome to PDD Holdings Inc.'s first quarter 2024 earnings conference call. At this time, all participants are in listen-only mode.
Speaker Change: Ladies and gentlemen, thank you for standing by and welcome to Pee Dee Dee Holdings, Inc. First quarter 2024 earnings conference call.
Speaker Change: At this time, all participants are in listen only mode.
Operator: 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. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your host today. Sir, please go ahead.
Speaker Change: That 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 one on your telephone.
Speaker Change: Please be advised that today's conference is being recorded.
Speaker Change: I would now like to hand, the conference over to your host today. So please go ahead.
Unknown Executive: Thank you, operator. Hello, everyone. And thank you for joining us today. The PDD Holdings earnings release was distributed earlier, and it's available on our website at investor.pddholdings.com, as well as through the Globe News Wide service. Before we begin, I would like to refer you to our safe harbor statement in the earnings price release, which also applies to this call, as we will make certain forward-looking statements. Also, this call includes discussions of certain non-GAAP financial measures.
Speaker Change: Thank you operator, Hello, everyone and thank you for joining us today.
Speaker Change: Could you be holdings earnings release was distributed earlier and is available on our website at Investor PDD Holdings Dot com.
Speaker Change: Right.
Speaker Change: Newswire services.
Speaker Change: Before we begin I would like to refer you to our safe Harbor statement in the earnings press release, which also applies to this call as we will make certain forward looking statements.
Also this call includes discussions of certain non-GAAP financial measures.
Unknown Executive: Please refer to our earnings release, which contains a reconciliation of non-GAAP measures to GAAP measures. Joining us today on the call are Mr. Chen Lei, our Chairman and Co-Chief Executive Officer. Mr. Zhao Jiazhen, our Executive Director and Co-Chief Executive Officer, as well as Nithya Jain, 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 21, 2021, and during the Q&A session, Lei and Jiazhen will answer questions in Chinese and will help translate.
Speaker Change: Please refer to our earnings release, which contains a reconciliation of non-GAAP measures to GAAP measures.
Speaker Change: Joining us today on the call are Mr. Shan, Li our chairman and co Chief Executive Officer.
Speaker Change: Alright, exactly there, okay and co Chief Executive Officer.
Jim: That's right Jim.
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Speaker Change: Les and Joe will make some general remarks outperformance for the popcorn.
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Ingo: Ingo then walk through our financial results for the third.
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Speaker Change: 2024.
Greg: And during the Q&A session Les and Joe Jim to answer a question from Chinese will help thanks, Greg.
Speaker Change: Please note that the English translation for reference only and in case of any of them.
Speaker Change: In the original language should prevail.
Unknown Executive: Please note that the English translation is for reference only, and in case of any discrepancy, statements in the original language should prevail. Now, it's my pleasure to introduce our chairman and co-chief executive officer, Chen Lei. Mr. Lei, please go ahead.
Speaker Change: Now, it's my pleasure to introduce our chairman and co Chief Executive Officer.
Speaker Change: Please go ahead.
Lei Chen: Hello everyone. Thank you all for joining our early call for the first quarter of 2024. 2023 was the first year ONG was driving towards high-quality development. We are encouraged by the positive feedback from our users and merchants, and are most confident in our strategic direction. 2024 is a critical year to deepen our education.
Speaker Change: Hello, everyone.
Speaker Change: You'll all earnings call fourth quarter 2024.
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High quality rock.
Speaker Change: We are encouraged by the positive feedback from our users.
Speaker Change: Okay.
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Lei Chen: In the first quarter, we benefited from an improving macro environment and achieved steady growth. Our total value reached IMD 86.8 billion, which represents a 161 percent year-on-year increase. Looking ahead, we will continue to work on the fundamentals of our business through our investment in supporting high-quality consumption, broadening high-quality supply, and promoting a high-quality ecosystem. Our proactive transition to high-quality development will inevitably bring challenges and difficulties. Thank you.
Speaker Change: In the first quarter, we benefited.
Speaker Change: An important macro imbalance.
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Speaker Change: We continue to work all of that by the Msos.
Speaker Change: Our investment in supporting high quality consultant broadly high quality supply.
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Speaker Change: Thank you Sam two high court.
Speaker Change: Negligible.
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Lei Chen: We decided to embark on a mission and are determined to execute it well because we are seeing a few irreversible long-term market shifts. First of all, we clearly see a trend of consumer upgrade. And in response to this, we are innovating our survey offering to cover more consumer scenarios and, at the same time, actively engaging with our merchants to broaden our product line. For example, this year, we are deepening our collaboration with top brands from around the world to bring a new product from the South East to our platform.
Speaker Change: We decided we bought all of these good.
Speaker Change: And I think currently the way.
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Speaker Change: But long term.
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Speaker Change: First of all we clearly train all consumption upgrade.
Speaker Change: And it was the bulk of it.
Speaker Change: Right.
Speaker Change: Clearly also willing to cover more consumption.
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For example, this year, we are deepening our cooperation with top brands. So as all the work to bring a new card that Oh crap.
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Lei Chen: In addition to meeting consumers' demand for more savings and better services, we hope to deepen connections with our consumers and strengthen our platform with MyShare in new product categories and among new customer groups. High-quality construction will now be possible without short-circuit stability.
Speaker Change: In addition to meeting consumer demand for more savings embedded Debbie.
Speaker Change: We hope to deeply connected with our consumers.
Speaker Change: Well, Mike Shea, new product category, and my new customer group.
Speaker Change: Hi, Kaki consumption.
Speaker Change: All results GUL pricing stability.
Lei Chen: Over the years, we have built out valuable experience across the entire e-commerce market, focusing on technological innovation and investment in research and development. Our supply chain know-how is transformed into easy-to-use tools and services to empower our merchants with cost-saving digital solutions. These measures have proven to be effective.
Over the years, we have built our value.
Speaker Change: Across the entire e-commerce biotech.
Speaker Change: Technology innovation and investment in research and development.
Speaker Change: After blacks and Knowhow.
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Speaker Change: In power.
Speaker Change: With cost savings of digital below.
Speaker Change: This is America has proven to be effective.
Lei Chen: In terms of attracting more merchants to our platform, broadening our product selection, and reducing product costs, which are essential to support high-quality consumption. And lastly, an ecosystem that encourages compliant business conduct is the foundation for the long-term growth of our practice. As commerce integrates with digital technology at a rapid pace, consumers and regulators are holding e-commerce platforms accountable for higher standards.
Speaker Change: In terms of attracting more of a trade off that ball broadening our partner Lockheed.
Speaker Change: And we do see quite a dot com.
Speaker Change: Off a week.
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Speaker Change: And lastly, and ecosystem in Qatar, we comply with the code.
Speaker Change: That is the foundation to long term growth off that ball.
Speaker Change: Let's call it easy great with digital technology, and a record pace.
Speaker Change: Consumers and regulators are holding e-commerce platform the council or higher.
Lei Chen: And we are taking the initiative to build an industry-leading compliance program and to leverage our technology capability in our SMT business with our compliance. This is to foster a healthy environment that attracts quality merchants that are willing to play by the rules and do their best, thereby creating a positive E-value. When it comes to consumer well-being and economic interests, we always stand behind the foreman.
Speaker Change: And we are taking in the niche here to build an industry, leading compliance program and to leverage our technology capability.
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Speaker Change: Our compliance with no.
Speaker Change: This is to foster a healthy goodbye.
Speaker Change: Quality metrics.
Speaker Change: Really we play by the rules and drive our best actor.
Speaker Change: Thereby creating a positive feedback.
Speaker Change: When it comes to consumer wellbeing and economy.
Speaker Change: We always that'd be highly format.
Lei Chen: We are focused on building long-lasting trust with our consumers and not on short-term gains. We also adopt a similar long-term orientation to other aspects of RW. As a company that is still in a growth mode, we will continue to focus on long-term value creation and invest firmly in opportunities with great potential. We are not guided by short-term goals, and this is also reflected in how we manage our global business.
Speaker Change: We are focused on building the long term.
Speaker Change: With our consumer and not a restructuring gain.
Speaker Change: We also adopted.
Speaker Change: Our long term orientation.
Speaker Change: Our bedroom.
Speaker Change: The company.
Speaker Change: In a growth mode.
Speaker Change: We will continue to focus on long term value creation.
Speaker Change: One of the leading to opportunities with great potential.
Speaker Change: We are not guided by short term goals.
Speaker Change: And this is also reflected in how we manage our global business.
Lei Chen: Our global business is still in the exploration stage, and there's plenty of room for improvement. We are prepared to respond positively to challenges, and we view these as important opportunities to improve ourselves. We are in this for the long term, and we will not be distracted by short-term results.
Speaker Change: Our global business.
Exploration stage, and there's plenty of room for improvement.
Speaker Change: We are prepared to respond positively to trailing period.
Speaker Change: We view these important opportunities.
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Speaker Change: We are in deep for a long time, and we will not be distracted by Chuck kind of rebound.
Lei Chen: With that, we will focus our efforts on building our key capabilities. Firstly, the supply chain capability. We will continue to roll out tailored fulfillment solutions in different markets to improve supply chain efficiency and reduce costs. We welcome quality merchants from around the world to join us in providing a rich variety of quality products for consumers worldwide. Secondly, legal is a compliance capability; with the goal of building an industry-leading compliance program, we will make a fund investment to create a safe and trustworthy shopping environment for our users, uphold our compliance standards, which will conduct forward-looking research into laws and regulations in the market we operate in, and transform our know-how into tools that can be easily assessed at our merchants.
Speaker Change: With that we'll be a bulk.
Speaker Change: And building our key capabilities.
Speaker Change: Firstly proprietary capabilities.
Speaker Change: We will continue to roll out.
Speaker Change: Fulfillment solutions in different market.
Speaker Change: Pricing efficiently and reduce costs.
Speaker Change: We will kind of quality merchants around the world who joined <unk> in.
Speaker Change: In providing a rich variety of quality, probably bad for consumers worldwide.
Speaker Change: Secondly, legal and compliance capability.
Speaker Change: We set a goal of building an industry leading compliance program.
Speaker Change: We'll make an investment to create a safe and trustworthy shopping environment for our users.
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Speaker Change: We will conduct forward looking research into law and regulations in a market that we operate.
Speaker Change: And transport are no.
Speaker Change: These are tools that can be easily assess.
Speaker Change: Okay.
Lei Chen: And thirdly, service capability in response to the diverse needs and quality standards of global users. We will keep up our investment, technology, and operations to improve the overall user experience. But we bring more value to consumers and merchants that are on the growth. We are hopeful that our platform will be increasingly recognized and welcomed by the local communities we serve. We do not expect this to be easy as we are prepared for investments over the long run.
Speaker Change: And thirdly service capability.
Speaker Change: In response to a diverse and aquatic extenders of Glu.
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Speaker Change: We will keep that.
Speaker Change: Technology and operations.
Speaker Change: Overall user experience.
We bring more value to consumers and merchants around the growth.
Speaker Change: We are hopeful that our platform will be increasingly recognized and welcomed by local communities we serve.
Speaker Change: We do look at these.
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Speaker Change: Over the long run.
Speaker Change: Finally.
Lei Chen: Finally, I would like to say that we are operating in a constantly evolving industry, and competition and opportunities are both emerging at a rapid pace. Competition has been intensifying in the past quarter, which will inevitably increase our expenses and affect some organic growth. On the other hand, new technologies and new markets also offer us tremendous opportunities for growth. [inaudible] I want to read our first shareholder letter when the company went public.
Speaker Change: I would like to state that we are operating we are constantly evolving.
With competition and opportunities are both emerging at rapid pace.
Speaker Change: Competition can be intensifying.
Speaker Change: At least in the past.
Speaker Change: Last quarter.
Speaker Change: Next I believe increased our expenses and affect some organic growth.
Oh, Alihan, new technologies and new market also offers tremendous opportunity for growth.
Speaker Change: And at the moment.
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Lei Chen: We are not a conventional company, and we hope to show you the true colors of our company, no matter how bumpy or rough the numbers may seem to be. Our business does not follow a linear path, and our earnings will almost certainly fluctuate. Therefore, we suggest our shareholders not measure our overall performance with the results from a few quarters.
Speaker Change: We are not a conventional company and we hope to show you a full coverage of our company no matter, how bumpy a rough numbers may seem to be.
Speaker Change: Our business portfolio.
Speaker Change: Paulo and media.
Speaker Change: Our earnings will almost certainly fluctuate.
Speaker Change: Therefore.
We suggest our shareholders not to measure our overall performance with the result for a few quarters.
Jiazhen Zhao: Our financial performance may beat or miss market expectations on account, but as long as we keep focusing on long-term value creation. Ultimately, this short-term fluctuation will converge on our growing intrinsic value. And now, I will hand it over to our co-CEO, Jiazhen Ding. Thank you, Chen Lei. Hello everyone, I am Dai Jiazhen. Thank you for participating in Pinduoduo Group's first quarter sales conference in 2024. Thank you, Lei.
Speaker Change: Our financial performance may be on mute marketing Asian economy.
Speaker Change: Laura.
Speaker Change: Focusing on long term value creation.
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Speaker Change: Growing intrinsic value.
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Jiazhen Zhao: Hello everyone, this is Zhao Jiazhen. Thank you all for joining our earnings call for the first quarter of 2020. ????????,??????????????,??????????,??????????????? [inaudible] ?????????????????????,???????????????? [inaudible] This year is a year for consumption promotion. The consumer market in the first quarter has made a good start. Online consumption remains strong and online retail penetration continues to rise. We proactively responded to the consumption promotion policy, and launched a series of promotional activities, to meet users' shopping needs during the Spring Festival and other seasonal events. This further relieves consumption potential and benefits merchants.
Speaker Change: Thank you Li Hello, everyone. This is Joe Jackson. Thank you all for joining our earnings call for the first quarter of 2024.
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This year is a year for consumption promotion.
Speaker Change: Assume a market in the first quarter has made a good start unlike.
Speaker Change: Unlike consumption remained strong and online retail penetration continues to rise.
We proactively responded to the consumption promotion policies.
Speaker Change: And launched a series of promotional activities to meet us at shopping needs during the spring festival and other seasonal events.
Speaker Change: This further relief consumption potential and benefits merchants.
Jiazhen Zhao: Driven by both the macro-environment and our effective promotional event, we achieved solid growth in the first quarter. We are confident in the consumer market in China.
Speaker Change: Driven by both macro environment and our effective promotional event.
Speaker Change: Achieved solid growth in the first quarter.
Speaker Change: In the consumer market in China.
Jiazhen Zhao: As introduced by Chen, the platform will continue to deepen the high-quality development strategy this year and further enhance the investment. High-volume development is our long-term strategy. In the future, we will continue to strengthen the three aspects of consumption, supply, and platform ecology to ensure high-quality supply and service while consolidating multistakeholderism. As Lei mentioned, this year, we will step up our investment to deepen the execution of our high-quality development strategy. High-quality development is our long-term strategy.
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Speaker Change: As Larry mentioned this year, we will step up our investment to deepen the execution of high quality development strategy high quality development is our long term strategy.
Jiazhen Zhao: Going forward, we will continue to direct our efforts into three key areas, which are consumption, Supply, Compliance, and Platform Equality. We are offering more savings to consumers. We also focus on delivering high-quality supply and services to more consumers. Based on this strategy, in the first quarter of the consumer group, we will continue to stick to being a third-party consumer, approaching both multi-time and good services, providing the most realistic feedback for users.
Speaker Change: Going forward, we will continue to direct our efforts into three key areas, which are consumption.
Speaker Change: <unk> compliance and a platform ecosystem.
Speaker Change: Offering more savings to consumers. We are also focused on delivering high quality supply and services to more consumers.
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Jiazhen Zhao: [inaudible] Guided by this strategy, on the consumer side, in the first quarter, we remain committed to putting consumers first, focusing on more savings and better service. We continue to give back the most tangible rewards to our U.S. For example, we step up our investment in a 10 billion program and partner with millions of quality merchants during the spring festival shopping season and the May Day Shop to fulfill consumers' demand for more.
Speaker Change: Got it by this Jackie on the consumer side in the first quarter, we remain committed to putting for consumers first.
Speaker Change: Focusing on more savings and better services will continue to give back the most tangible rewards to our users.
Example, we step up our investment in a <unk> 10 billion program and partner with millions of quality merchants during the spring Festival shopping season, and the May day shopping festival.
Speaker Change: Consumer demand for more savings.
Jiazhen Zhao: In terms of good service, Consumables Revitalization Initiative is an important provider of consumer goods nationwide this year. [inaudible] ?????????? [inaudible] ?????????? [inaudible] ???????????????? ??????,???????,??????????? And for better services, the Consumer Goods Trading Program is one of the initiatives driving this year's nationwide consumption promotion effort. We have been actively working with third-party service platforms to provide users with convenient trading services, covering mobile phones, electronics, air conditioners, refrigerators, washing machines, TVs and other categories.
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Speaker Change: As for better services consumer goods trade in program is one of the initiatives driving this year's national wide consumption promotional efforts.
Speaker Change: We have been actively working with third party service platform to provide users with a convenient should in services.
Speaker Change: Spring mobile phones electronics air conditioners, refrigerators washing machines Tvs and other categories.
Jiazhen Zhao: Today, we have served more than 10 million customers. Our trading services also extend to popular products under the 10 billion program, which offers consumers attractive, As we make it even easier for consumers to upgrade their consumption, their shopping experience is further enhanced. In addition, in order to allow consumers in remote areas to enjoy the shopping experience of the Baoyou District, we upgraded our express delivery service in the first quarter of this year.
Speaker Change: To date, we have served more than 10 million customers.
Speaker Change: Our trading services also extend to popular products under the 10 billion program, which offer to consumers attractive discounts.
Speaker Change: As we make it even easier for consumers to upgrade their consumption. They're shopping experience is further in house.
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Jiazhen Zhao: We are the first company in Tianyuan Province to provide free delivery of e-commerce packages., Therefore, the order volume of the platform in these areas has increased rapidly. [inaudible] In addition, we wanted to make sure that consumers in remote areas could also enjoy the free shipping shopping experience. So, in the first quarter, we upgraded our shopping and shipping services and Pioneered Free Shipping to Villages in Remote Provinces. Our efforts have brought Last Mail Delivery Post even closer to the consumer, with most now within two kilometers of reading.
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Speaker Change: In addition, we wanted to make sure that consumers in remote areas because it also enjoy the free shipping shopping experience.
Speaker Change: So in the first quarter, we upgraded our shopping and shipping services.
Speaker Change: And pioneer free shipping to villages in remote provinces.
Speaker Change: <unk> last mile delivery post even closer to the consumers with most now within two kilometers radius.
Jiazhen Zhao: Such innovation has led to a rapid year-on-year growth of order volume. We're happy to see that our service improvements are further driving our growth. At the supply end, we continue to increase investment and grow together with brands and businesses. In the first quarter, we focus on national goods and... [inaudible] On the support side, we continue our investment to support and grow together with the brand and merchandise. In the first quarter, we focused on the theme of trending national brands and allocated platform resources, such as traffic support to high-quality...
Speaker Change: Such innovation led to a rapid year on year growth of order volume from these regions.
Speaker Change: We're happy to see that our service improvements are further driving our growth.
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Speaker Change: On the supply side, we continue our investment to support and grow together with the brands and merchants in the first quarter with folks on the theme of changing national brands allocated platform resources, such as traffic score to high quality merchants.
Jiazhen Zhao: This not only ensure the high quality supply, but also help boost our merchant's business. ????????,???????????????,?????????? ???Pinduoduo??????,???Pinduoduo??????, With the support of the platform, this new product will soon be ranked first in the hot search list of products. For example, during the spring festival shopping season, a dairy product brand launched a limited edition offering for the Year of the Dragon, inspired by New Year traditions, and chose our platform for the product launch.
Speaker Change: This not only ensure the high quality supply, but it also helped boost our merchant businesses.
Speaker Change: And at what time, they order it again.
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Speaker Change: For example, during the Spring Festival shopping season dairy product brand launched a limited edition offerings for the year of the Dragon inspired by new your new year traditions and chose our platform for the product launch with the support of our class forms resources the product quickly gained popularity and <unk>.
Jiazhen Zhao: With the support of our platform's resources, the product quickly gained popularity and became a top seller in the dairy category. Pinduoduo is the foundation of agriculture, and we will continue to invest heavily in agriculture for a long time. In the first quarter, we will continue to participate in the innovation of agricultural technology. Pinduoduo has opened the 4th annual Pinduoduo Agricultural Science and Technology Competition.
Speaker Change: The top seller in the dairy category.
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Jiazhen Zhao: We deeply support Pinduoduo to win the final of the 2nd Science and Technology Competition. We are committed to investing in this important sector over the long run. In the first quarter, we continued to support agricultural technology innovation by launching the fourth Smart Agriculture Competition and the second Duoduo Academy growing competition. This helps to explore new productive forces in agriculture. to Anhui, Yunnan, Guangxi, Shandong and other places to provide e-commerce operations for local businesses. In addition, we have co-operated with more than 1,000 high-quality agricultural areas in all provinces and cities across the country to organize the New Year Festival.
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Speaker Change: Agriculture is our foundation, we are committed to invest in this important sector of the long run in the first quarter. We continue to support agriculture technology innovation by launching the fourth smart agriculture competition and the second total Academy growing competition. This helps to explore EU productive.
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Jiazhen Zhao: , During the May 5th shopping festival, we started a 100 million subsidized special delivery live broadcast to highly recommend the Yunnan local farmers' market, such as blueberry flowers, to promote the scale and brand development of local agricultural industries. At the same time, our Agriculture Cloud Initiative has been steadily advancing in production regions such as Anhui, Yunnan, Guangxi, and Shandong to bring e- In addition, during our Spring Festival shopping, We collaborated with more than 1,000 quality agricultural production regions across the country, which not only brought more specialty agricultural products to our platform but also boosted farmer's income. During the May Day Shopping Festival, we launched the dedicated live streaming sessions under the 10 Billion Program for Agriculture, with a particular focus on Yunnan specialties such as blueberries and flowers.
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Speaker Change: At the same time, our agriculture initiative has been steadily advancing in production regions, such as employee none quashee Shandong to bring ecommerce cleaning and a one on one consultation to local farmer merchant yes.
Speaker Change: In addition, during our spring festival shopping season, we collaborated with more than 1000 quality agriculture production regions.
Speaker Change: The nation, which not only brought more specialty agricultural products to our platform, but it also pushed.
Speaker Change: Farmers income during the May day shopping festival, we launched a dedicated live streaming sessions under the 10 billion program for agriculture products.
Speaker Change: With a particular focus on getting that agriculture specialties, such as blueberries and flowers, we supported a scaling of original production and the branding of local agricultural products.
Jiazhen Zhao: We supported the scaling of regional production and branding of local agricultural products. We attach great importance to the development of high-quality ecosystems. In the first quarter, the platform continued to promote the 100-billion-dollar special project and implemented a series of special project governance actions. The high-quality ecosystem is critical to our transformation to high-quality development. Only a healthy ecosystem with well-designed platform policies can support the long-term sustainable growth of an e-commerce platform.
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Speaker Change: Our high quality ecosystem is critical to our transformation to high quality development.
Speaker Change: Let me a healthy ecosystem with well design platform policies to support the long term sustainable growth and E Commerce platform.
Jiazhen Zhao: In the first quarter, we continued to invest in the 10 billion ecosystem initiative and carry out a series of compliance projects. For example, our trust and safety team utilized technological means to further enhance the efficient automated review of product information on our platform. , , ,, As an e-commerce platform serving a vast and diverse consumer base, we also actively utilize our own unique resources to take on more social responsibilities.
Speaker Change: In the first quarter, we continued to invest in the 10 billion ecosystem initiative and carry out a series of compliance projects.
Speaker Change: For example, our trust and 50 team utilize the technological means to further in house the efficient automated it with you of product information on our platform.
Speaker Change: So if all chip I'm not sure whether I can having time.
Speaker Change: To assist in Sudan.
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Speaker Change: <unk> says wait down analysis using don't file.
Speaker Change: While on the entry into tangible dose or are renting out later.
Speaker Change: So if you go to Hulu.
Speaker Change: So I hope that you don't Wanna DTE towards bottles.
Speaker Change: And what we're hearing is that come up with here Phil.
Speaker Change: And of course with Hanmi San Jose.
Speaker Change: So it's disappointed our fleet.
Speaker Change: As an e-commerce platform, serving a vast and diverse consumer base. We're also actively utilize our own unique resources to take on more social responsibilities.
Jiazhen Zhao: Since the beginning of this year, we have continued to support the Key to Home Nationwide, caring for the elderly and helping lost seniors return home safely. On World Reading Day, we launched the 7th Duoduo Reading Month and provided direct discounts on tens of thousands of book products, enabling more people to enjoy the benefits of knowledge sharing.
Speaker Change: Since the beginning of this year, we have continued to support the key to home nationwide campaign.
Speaker Change: Caring for the elderly and how lasting is return home safely.
Speaker Change: Around the World waiting days, we launched seven total rating now and provided direct discount to tens of thousands of products, enabling more people to enjoy the benefits of knowledge sharing.
Jiazhen Zhao: Pinduoduo's high-quality development is a long-term, large-scale, and complex strategic plan. We will work together with all parties to promote and implement the Hengzhua project to create more value for our consumers and businesses. Our high-quality development strategy is a long-term, massive, and complex project. We will bring together the efforts and resources from all ecosystem participants to deepen our execution and create more value for our consumers and merchants. Next, I'll give the floor to Jun Liu, who will talk about our financial statements for the first quarter. Now, let me hand it over to Jun. She will provide you with an update on our financial performance for the first quarter. Hello everyone.
Speaker Change: So you sound currency panned out for that asset in a long time.
Speaker Change: While the downward curve on me now concentrating on diagnosis well My service centre how.
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Speaker Change: Our high quality development strategy is a long term massive and complex project, we will bring together the efforts and resources from all ecosystem participants to deepen our execution and create more value for our consumers and merchants.
Jun Liu: Transcribed by https://otter.ai, The first quarter ended March 31st. In terms of income statements, in the first quarter, our total revenues increased 131% year-on-year. This was mainly driven by an increase in revenues from online marketing services and transactions. Revenues from online marketing services and others will reach RMB42.5 billion, up 56% from the same quarter. Revenues from transaction services were RMB44.4 billion, 327% from the same quarter last year. Our total cost of revenues increased 194% from RMB11.1 billion.
Speaker Change: Okay.
Yes, I got it.
Speaker Change: I will now.
Jane: Now, let me hand, it over to Jane She will provide you with an update on our financial performance in the first quarter.
Thank you Jackie.
Jun Liu: RMB 32.7 billion, Many due to an increase in fulfillment. Processing Fees, Maintenance Costs, and Cost and Expenses. Total operating expenses this quarter increased 44% to RMB28.1 billion, from RMB19.6 billion in the same quarter, on a non-GAP basis.
Jane She: Hello, everyone.
Jane She: Let me walk you through our financial performance for the first quarter ended March 31st 2024.
Jane She: In terms of income statements and.
Jane She: Last quarter, our total revenues increased 131% yes.
Jane She: RMB 86 8 billion.
Jane She: This was mainly driven by an increase in revenues from online marketing services and transaction services.
Jane She: Revenues from online marketing services and August were RMB 42, 5 billion this quarter.
Jane She: Up 56% from the same quarter of 2023.
Jane She: Revenues from transaction services, RMB 44, 4 billion up 327% from the same quarter last year.
Speaker Change: Well, we aren't your caution on expenses.
Speaker Change: Our total cost of revenues increased 194% from RMB 11, 1 billion in Q1 2022.
Speaker Change: To RMB 32, 7 billion this quarter.
Speaker Change: Mainly due to increase in fulfillment fees payment processing fees maintain of course and quotient expenses.
Speaker Change: On a GAAP basis.
Speaker Change: Total operating expenses this quarter increased 44% to RMB $28 1 billion.
Speaker Change: From RMB 19, 6 billion in the same quarter of 2023.
Speaker Change: On a non-GAAP basis.
Jun Liu: Operating Expenses Increased to RMB25.6 billion from RMB 18.1 billion in Q1 2023. Invested decisively in key strategic initiatives, such as giving back. Our total known gap of rate, The percentage of total revenue this quarter was $20 billion, held 2-4-G-A-B-I-N-G. Looking to specific expense items, Unknown Gap Sales and Marketing Expenses for R&B were 22.0, up 44% versus the same quarter last year. We continue to give back to consumers through a series of digital promotions and increased advertising to promote our brand.
Speaker Change: Total operating expenses increased to RMB 25, 6 billion in this quarter.
Speaker Change: From RMB 18, 1 billion in Q1 2023.
Speaker Change: And the fourth quarter.
We embark to decisively in key strategic initiatives, such as giving back to the consumers.
Speaker Change: Investing now of our service offerings.
Speaker Change: Promoting brand awareness and R&D.
Speaker Change: Our total non-GAAP operating expenses as a percentage of total revenues this quarter was 29%.
Speaker Change: Compared to 48% in chemical to last year.
Speaker Change: Looking to specific expense items.
Speaker Change: Our non-GAAP sales and marketing expenses this quarter were RMB 22 7 billion.
Speaker Change: Up 44% versus the same quarter last year.
Speaker Change: Throughout the past quarter, we continue to give back to consumers of our series F 15, a promotional campaign.
Speaker Change: An increase of what pricing to promote our brands.
Speaker Change: Our non-GAAP basis.
Jun Liu: Our sales and marketing expenses as a percentage of our revenue... versus 42% for the same quarter last year. Unknown GAAP General and Administrative Expenses for R&D 570 million, versus RMB338 million. Our research and development expenses were RMB 2.3 billion and RMB 2.9 billion on a gap basis. Thank you.
Speaker Change: Our sales and marketing expenses as a percentage of our revenue this quarter was 26%.
Speaker Change: First is 42% for the same quarter last year.
Speaker Change: Our non-GAAP general and administrative expenses were RMB 572 million.
Speaker Change: Vantage RMB $338 million in the same quarter of 2023.
Speaker Change: Our research and development expenses were RMB, two 3 billion this quarter on a non-GAAP basis.
And RMB, two 9 billion on a GAAP basis.
Speaker Change: Up 16%, yes.
Jun Liu: Technologies are the core of our high-quality development. We will continue our investment in R&D to provide our users with a more satisfying shopping experience and to build a robust compliance control on agape. Operating process for the quota with RMB... British RMB 6.9 billion in the same quarter last year. Operating profit with RMB 28.6 billion, versus RMB 8.5 billion in the same quarter last year. Gasol Freight and Profit Margin, Net income attributable to ordinary shareholders was RMB28 billion for the quarter, compared with RMBA $0.1 billion in the same quarter last year. Basic allowance for ADS was RMB 20.6.
Speaker Change: Technologies at a quarter of our high quality development strategy.
Speaker Change: We will continue our investment in R&D to provide our users with a more satisfying shopping experience.
Speaker Change: Improved supply chain efficiency.
<unk> robust compliance program.
Speaker Change: On a GAAP basis.
Speaker Change: Operating profit for the quarter was RMB 26 billion.
Speaker Change: So it is RMB six 9 billion in the same quarter last year.
Speaker Change: non-GAAP operating profit was RMB 28 6 billion.
Speaker Change: Does this RMB eight 5 billion in the same quarter last year.
Speaker Change: non-GAAP operating profit margin was 33% this quarter.
Compared with 22% for the same quarter last year.
Speaker Change: Net income attributable to ordinary shareholders, which RMB 28 billion for the quarter.
Speaker Change: Compel to the RMB eight 1 billion in the same quarter last year.
Speaker Change: Basic earnings per ads was RMB <unk> 33, and diluted earnings per ads was RMB 18 96.
Jun Liu: And the logit earnings per ADS was RMB18.92, but the basic endings per ADS of RMB 6.0, and the loaded earnings per ADS of RMB5.55 in the same quarter of 2020. Get Net Income Attributable to Ordinary Shareholders of RMB30.6, compared to RMB 10.1 billion in the same quarter last year. On GAAP, the load earnings per ADS was RMB20.72 versus RMB6.92 in the second quarter of 2023.
Speaker Change: Basic earnings per ads of RMB, six <unk> and diluted earnings per ads of RMB 555 in second quarter of 2023.
Speaker Change: non-GAAP net income attributable to ordinary shareholders was RMB 30.
Speaker Change: 6 billion.
Speaker Change: But just RMB 10, 1 billion in the same quarter last year.
Speaker Change: non-GAAP diluted earnings per ads was RMB 28, 72 dosage RMB 692 in the same quarter of 2023.
Speaker Change: As I mentioned.
Jun Liu: Our business does not follow a name yet; how? This quarter's financial data does not pre-present. [inaudible] Suggesting factors not to forecast job growth solely based on results that complete the income. Now, let me move on to cash flow. Our net cash generated from operating activities was RMB21.1 billion, compared with RMB1.3 billion in the same quarter last year.
Speaker Change: Our business does not follow anemia to house.
Speaker Change: This quarter's financial data does not represent a future.
Speaker Change: Fluctuations evitable.
Speaker Change: The suggestion factors not to forecast our growth solely based on results from a few quarters.
Speaker Change: That completes the income statements.
Speaker Change: Now, let me move on to cash flow.
Our net cash generated from operating activities was RMB 21 1 billion.
Speaker Change: Compared with RMB, one 3 billion in the same quarter last year.
Jun Liu: As of March 31, 2024, we have RMB242.1 billion in cash, cash equivalents, and short-term investments. Thank you. This concludes my prepared remarks. Thank you, June.
Speaker Change: As of March 31st 2024, we have RMB $242 1 billion in cash cash equivalents and short term investments.
Speaker Change: Thank you. This concludes my prepared remarks.
Thank you Jean.
Unknown Executive: Now let's move on to the Q&A session. In today's Q&A session, Lei, Jiazhen, and Jun will take questions from panelists on the line. We could take a maximum of two questions from each analyst. Lei and Jiazhen will answer questions in Chinese and will help translate for convenience purposes. Operator, we are open to questions. Thank you.
Speaker Change: Now, let's move on to the Q&A session and today's Q&A session Le <unk> and gene will take questions from analysts on the line.
Speaker Change: We could take a maximum of two questions from each analyst.
Speaker Change: Ladies and gentlemen will answer questions in Chinese I will help translate for convenience purposes.
Speaker Change: Operator, we are open for questions.
Operator: 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.
Speaker Change: Thank you ladies and gentlemen, we will now begin the question and answer session. If you wish to ask a question. Please press star one on your telephone and wait for your name to be announced if.
If you wish to cancel your request please press star two.
Alicia Yap: Participants are requested to restrict themselves to two questions at each time. Your first question comes from Alicia Yap from Citigroup. Please ask your question. Hi, thank you, Guan Li Chen. Good evening. Thank you for accepting my question. Congratulations on your strong performance. I have two questions.
Speaker Change: Participants are requested to restrict to two questions at each time.
Speaker Change: First question comes from Alicia Yapp from Citigroup. Please ask your question.
Alicia Yapp: Hi, Thank you Bonnie churn like Shanghai.
Speaker Change: That Sheila <unk>.
Alicia Yap: The first question is, we have seen that over the past year, various e-commerce platforms have been actively adjusting their own prices and service systems. Guan Li Chen, please share with us how your company assesses the current competitive trend in the industry and what aspects of Pinduoduo's business strategy will be focused on in such a competitive environment. The second question is, we have noticed that Guan Li Chen has placed return on investment and the ecosystem of the platform at a very important position in the past few business meetings.
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Alicia Yap: The market is also very concerned about what kind of work the company has done in this area. Can Guan Li Chen tell us more about what specific measures the company has taken in this area and what kind of goal it wants to achieve? I will translate it myself.
Speaker Change: Hey, John one thing grocers as our foam insulation Yamana com.
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Speaker Change: Thanks management for taking my questions. Congrats on the strong results two questions first is regarding the domestic competition. So over the past year, we have seen e-commerce platform.
Alicia Yap: Thanks, management, for taking my question. Congratulations on the strong results. Two questions. First, regarding domestic competition. So, over the past year, we have seen e-commerce platforms actively adjusting their strategies in terms of pricing and service. Can management share their view on how they evaluate the competitive landscape in such an environment? What would be the strategic focus for Pinduoduo's business going forward? Second, question is related to compliance.
Speaker Change: Tiffany adjusting best strategy in terms of the pricing and service can management share your view on how you evaluate the competitive landscape.
Speaker Change: In such an environment, what would be the strategic focus of <unk> business going forward.
Speaker Change: Second question is related to.
Speaker Change #100: Compliance I think we noticed on the reasons earnings call management spend quite a bit of time talking about compliance related matters.
Alicia Yap: I think we noticed on the earnings call last week that management spent quite a bit of time talking about compliance-related matters. Obviously, the market is also paying close attention to the work that you are doing in this area. Can management explain a little bit more about the efforts you have made so far and what goals you want to achieve? Thank you. Hello, Alicia.
Speaker Change #101: Obviously markets is also paying close attention to that.
Speaker Change #102: What that you are doing in this area can management explain a little bit more about the efforts you have made so far.
Speaker Change #103: <unk> goes you wanted to achieve thank you.
Speaker Change #103: Yes.
Speaker Change #103: No.
Speaker Change #103: No.
Speaker Change #103: When.
Speaker Change #103: T O.
Lei Chen: I'm Chen Wei. Let me answer your question. Hi Alicia, this is Chen Lei. Let me take your question. First of all, it's about strategic competition. From the perspective of the competitive industry, we can see that consumers have formed a habit of cross-platform consumption. ,,,,,,,, As regards your first question on strategy and competition, as for competition, we find that consumers are getting used to making purchases from different platforms. And before they decide which platform to choose from to shop from, consumers compare the overall shopping experience across different platforms in a few areas.
Charlie: Hi, Alicia this is Charlie let me take your question.
Speaker Change #105: So Joseph <unk>.
Speaker Change #106: Number two higher it seems a little handle on what we see that you cannot shelf.
Speaker Change #105: <unk>.
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Speaker Change #108: Shopping go at that.
Speaker Change #108: Yes.
Speaker Change #108: Counting the peak rate shopko.
Speaker Change #108: A global way.
Speaker Change #108: <unk>, yes.
Speaker Change #109: Appreciate it.
Speaker Change #110: I mean, it's Alan attrition.
Speaker Change #110: And our ability to win.
Speaker Change #110: Yes.
Speaker Change #110:
Speaker Change #111: And regarding your first question about strategy and competition.
Speaker Change #111: As for competition, we find that consumers are getting used to making purchases from different platform.
Before they decide which platform to coupon to transform consumer compared to overall shopping experience across different platforms.
Speaker Change #111: Eric.
Lei Chen: For example, on product selection, on pricing, and also on services. And given this trend during the first quarter, we are seeing that our industry peers have significantly stepped up their efforts. ,,, After our long-term investment, we can clearly see that our platform is becoming more and more affordable and has a better service quality. But at the same time, we also clearly understand that the real needs of consumers are constantly changing, so we must be rational. And we welcome healthy competition.
Speaker Change #111: For example product selection.
Speaker Change #111: And also on our services.
Speaker Change #111: Given this trend during the third quarter.
Speaker Change #111: We are seeing that our industry peers have significantly stepped up their efforts.
Speaker Change #112: No I think the team.
Speaker Change #112: And we have meetings.
Speaker Change #112: <unk>.
Speaker Change #112: This <unk> going to <unk>.
Speaker Change #113: Susan it's equal to 12 weeks.
Speaker Change #113: And with this industrial economy.
Speaker Change #112: For the year.
Speaker Change #114: <unk> I'll get a whole lot.
Speaker Change #112: Okay.
Speaker Change #112: Yes.
Speaker Change #112: How would the senior group.
Speaker Change #115: The solar team.
<unk> now what we are seeing desktop so hopefully that does as usual.
Speaker Change #115: 300 <unk>.
Lei Chen: And in response to competition, we always put our consumers first. Our survival depends on the value we create while using it. And with our continued investment over the years, we are very pleased to see that our value proposition of more savings and better services is being increasingly recognized and accepted by our consumers. But at the same time, we also realize that consumer demand is constantly changing. And we must do our best to keep up with it.
Speaker Change #115: And.
Speaker Change #115: We welcome the competition and in response to competition, we always put our consumers but.
Speaker Change #115: Our survival it depends on the Saudi recreate part uses.
And with our continued investments over the years.
Mark David: You see that our value proposition Mark David embedded services.
Mark David: Increasingly recognized and accepted.
Mark David: While consumers.
Mark David: But at the same time, we also realized that consumer demand currently.
Mark David: And we must do our best to keep up with.
Lei Chen: At this stage, the consumer's demand presents a rational and distributed trend. This requires us to better meet the consumer's demand for higher-quality products and richer consumption scenarios on a cost-effective basis. ,,,, [inaudible] Currently, consumer demands are becoming more rational and also more diversified. And this means, in addition to offering more savings, we're also expected to meet consumers' needs for higher quality products and also more varied consumption scenarios, and therefore, on top of deepening our more savings and better services capability, we will also work on boosting the supply of high quality products on our platform
Mark David: The machine.
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Mark David: Yes.
Mark David: Topics, we can go to the <unk>.
Mark David: Eagle Ford itself is healthy.
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Speaker Change #117: Thank you.
Mark David: Cost increases for sure.
Mark David: I wish it will go into full <unk>.
Mark David: Physicals.
Speaker Change #118: Will you walk through vehicles, yet to mature now.
Speaker Change #119: Do you agree.
Speaker Change #120: <unk> seen it.
Speaker Change #120: And currently consumer demand.
Speaker Change #120: Coming more rationale and open more diversified and this means in addition to operating more savings. We are also expected to meet consumers' needs for higher quality products and also more varied.
Speaker Change #120: And therefore.
Speaker Change #121: And how about deepening our merger savings embedded services capabilities.
Speaker Change #121: I also will come boosting the supply of high quality product on the Aqua.
Lei Chen: And by improving the overall shopping experience, we hope we can further deepen our users' trust in us.??, [inaudible] Unknown Speaker 0, In order to create a safe and secure shopping environment for our users, we have invested a large amount of resources in the past period of time to strengthen our business.
Speaker Change #121: By improving the overall shopping experience we hope we can further deeper argues its trough.
Speaker Change #122: We have appointed Yahoo.
Speaker Change #122: We've conducted.
Speaker Change #123: I'm not sure either co CEO even faster.
Speaker Change #124: What kind of dollars itself are you good good.
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Speaker Change #124: All of them.
Speaker Change #124: The more we look at will.
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Speaker Change #124: The more locally.
Speaker Change #125: We got the deal <unk>.
Speaker Change #126: Hello there.
Speaker Change #126: A trend showed us crohns genre.
Speaker Change #125: Steve.
Speaker Change #125: In the property.
Speaker Change #125: Within the bundle.
Speaker Change #127: <unk> barcode.
Speaker Change #127: Now I'll go through that.
Speaker Change #127: We're doing more so.
Colin Lee: Colin Lee with <unk>.
Lei Chen: , , , And regarding your second question on compliance, as our business grows, consumers and regulatory bodies are holding us accountable for ever higher compliance requirements, and also on the merchants doing business with us. And in order to create a trustworthy shopping environment for users, compliance is an area where we're committed to improving and where we have invested significant resources over the past few projects. Major regulatory frameworks around the world are evolving, and new laws and regulations are being introduced.
Colin Lee: And regarding your second question.
Colin Lee: Yes.
Colin Lee: As our business grows consumers any revenue trade bodies are holding us accountable for our higher compliance requirement.
Colin Lee: So on.
Colin Lee: The merchants doing business with us.
Colin Lee: And we wanted to create a trustworthy companies environment by users.
Colin Lee: Combined.
Colin Lee: Yes.
Colin Lee: It has improved and we are we have invested significant resources over the past few quarters.
Colin Lee: Bakery revenues create frameworks around the world.
Speaker Change #129: Avi and new laws and regulations.
Lei Chen: And therefore, we see compliance capability as an important aspect of our high-quality development strategy and also compliance capabilities as one of our core capabilities of our platform. In the last quarter, we talked about the learning mindset and actively communicated with regulatory agencies in various countries. In this process, we actively promote the harmonization of the system, invest a lot of resources and energy, and conduct in-depth research on regulatory rules in various markets. These research results are quickly implemented into business regulations through a dedicated team.
Speaker Change #129: And therefore with the combined capability of an important aspect of our high quality development strategy and also combined capabilities is one of our corporate liquidity.
Speaker Change #129: Output.
Kyle: The mythology, Bob This is Kyle.
Speaker Change #131: Good quarter seems like you got Google.
Doug: Thanks, Doug.
Doug: Or.
Speaker Change #133: To build at Houston to Syndicate Windows.
Speaker Change #134: But do you need.
Speaker Change #134: Yes.
Sylvia: Thank you Sylvia.
Speaker Change #136: If you look from Gordon who will.
Speaker Change #137: That's the lowest dollar.
Speaker Change #136: Yes.
Speaker Change #136: During last quarter's earnings call. We also communicated that we are learning about that we are actively engaging with regulatory bodies for various countries and during this process. We are proactively strengthening our combined capabilities we.
Lei Chen: And during last quarter's earnings call, we also communicated that, with a learning mindset, we are actively engaging with regulatory bodies in various countries, and during this process, we are proactively strengthening our compliance capability. We are also investing heavily in researching and understanding the regulations of each market, and we have dedicated teams to apply these research findings to all aspects of our business. [inaudible], They are constantly promoting small and medium-sized businesses on the platform, increasing the return on investment, and high-quality management, and others.
Speaker Change #136: We are also investing heavily researching and understanding the reputations of each market.
Speaker Change #136: And we have dedicated teams to apply these future fundings.
Speaker Change #136: Our business.
Speaker Change #136: The Muskogee.
Speaker Change #138: Looking at bulk core Mackay.
Kevin glass: Kevin glass.
Kevin glass: Bulk water.
Kevin glass: Okay.
Kevin glass: Great.
Kevin glass: Yeah.
Kevin glass: Brian that we don't.
Kevin glass: Yeah, Hey, Jeff locally counted on that soon.
Kevin glass: Congrats on China, Yes, Gulf could we see the market.
Lei Chen: And our initiatives in the compliance area not only cover those regulations related to our platform's own operations, for example, data-related regulations, but they also include those related to merchants' operations as well, for example, product compliance and consumer protection.
Kevin glass: And our initiatives.
Speaker Change #140: That area not only cover.
Speaker Change #140: Those regulations related to our platforms on the operation.
Speaker Change #140: For example data related regulations.
Speaker Change #140: But it also your crude.
Related to merchandise operations as well for example.
Speaker Change #140: For consumer protection.
Lei Chen: And at the same time, we're also providing the necessary incentives for small and medium-sized merchants to conduct their businesses in a more compliant and high-quality manner, which benefits the sustainable development of our platform ecosystem. The growth of our high-quality partners will bring more products to our platform and He Guilin, and good platform development can guarantee a long-term and sustainable platform development. The two are helpful for us to further satisfy users' multi-dimensional, multi-layered, high-quality consumer needs.
Speaker Change #140: And at the same time, we are also providing.
Speaker Change #140: Necessary incentives for small and medium sized merchants to conduct their businesses are more compliant and.
High quality manner.
Speaker Change #140: Which benefits the sustainable development of our platform ecosystem.
Speaker Change #140: And then you also got a tradeoff.
Speaker Change #140: With <unk>.
Speaker Change #140: Good.
Speaker Change #140: Both globally.
Speaker Change #140: And good luck.
Speaker Change #140: How do you see that could see the other.
Speaker Change #141: I'm gonna be altered.
Speaker Change #143: <unk> seen some demand.
Speaker Change #142: Do you know what.
Speaker Change #142: So that goes to their coverage as.
Lei Chen: ,, And the growing high-quality merchant base will bring more quality product offerings to our platform. And while compliant operations and a healthy ecosystem are fundamental to the long-term development of our platform, both of which will support us in better satisfying consumers' diverse needs for high quality consumption and thereby forming a virtuous cycle. This is my view on complex matters.
Speaker Change #142: As far as income.
Speaker Change #142: And that's it.
Speaker Change #142: In addition, as we look at.
Speaker Change #142: And the growing high quality merchant base will bring more currency product.
Speaker Change #142: And while our combined operation and a healthy ecosystem.
Speaker Change #142: <unk> long term development effort.
Speaker Change #142: All of which will support our.
Speaker Change #142: Competitive satisfying consumers diverse needs.
Speaker Change #142: For high quality consumption and thereby forming.
Speaker Change #142: Through cycle.
Speaker Change #144: This is my view.
Speaker Change #145: Thank you.
Speaker Change #145: Thank you.
Unknown Executive: Thank you. Thank you. Operator, we can move on to the next panelist on the line. Thank you.
Speaker Change #146: Operator, we can move on to the next analyst on the line.
Yang Bai: Your next question comes from Yang Bai with CICC. Please ask your question. The first question is about growth. We see that the company's income growth rate this quarter is still very good. I would like to ask Manager Chen to share his thoughts on the company's growth space. How should we look at the future growth rate? Then my second question is about the globalization of the company. Can you talk about your thoughts on this business strategy? Can you also help us look forward to what kind of results will appear in the next five years? I have two questions.
Speaker Change #147: Thank you. Your next question comes from young by with the ICC. Please ask your question.
Speaker Change #147: Okay.
Speaker Change #148: These are declining.
Speaker Change #149: Condo consistency to the short answer yes.
Brian: Thank you Brian.
Speaker Change #151: To conclude the call.
Speaker Change #152: And <unk>.
Linda: Linda you mentioned client you're going to the channel partners.
Speaker Change #154: <unk> seen peloton Ponta <unk> will join us on the call.
Speaker Change #155: Obama challenge, Google when I want yen, which we can go much amount of terminal.
Speaker Change #154: Yes.
Speaker Change #156: I have two question.
Yang Bai: The first one is about growth. The company delivered decent top-line growth for this quarter. Please can management share their thoughts on the growth potential of the business? Is there still room to grow?
Speaker Change #157: So that ends up on the growth of the company.
Speaker Change #158: <unk> delivered a decent top line growth for the quarter it.
Speaker Change #159: Can management share your thoughts on the growth potential of that business.
Yang Bai: How should we think about its growth rate going forward? And my second question is about the global business. Could management talk a bit more about your latest thinking around the strategy of your global business? What would this business look like in five years? Thank you.
Speaker Change #160: There's still room to grow how should we think about this growth rate going forward.
Speaker Change #160: My second question is about the global business.
Speaker Change #161: The management talk a bit more about your latest thinking around the strategy of <unk> global business.
Speaker Change #162: Today's business look like in five years. Thank you.
Jay: Hi, Brian This is Jay Thanks for your questions I'll take your first question about the growth.
Lei Chen: [inaudible] questions, I will take your first question about, Well, rather than being captivated by short-term financial results, we have always focused on long-term investments and creating long-lasting... In the long run, we still see many areas to improve in the consumer market. Transcribed by https://otter.ai, and in addition to the potential of the overall consumer market, we also see that the online retail industry is growing quickly.
Speaker Change #162: Well.
Speaker Change #162: Rather than being okay.
Speaker Change #162: Short term financial results, we have always focused on long term investments and creating long lasting <unk>.
Speaker Change #162: <unk>.
Speaker Change #162: And in the long run we still see many areas too.
Speaker Change #164: Sure thing that consumption market.
Speaker Change #164: The consumption market actually offers plenty of opportunities for platforms.
Speaker Change #164: <unk>.
Speaker Change #164: And in addition to the potential of the overall consumer market. We also see that the online video industry is growing quickly.
Lei Chen: E-commerce infrastructure continues to improve, and new e-commerce models continue to emerge. We're absolutely innovating and exploring new models to create greater value for our company. We believe there's still a lot of potential for online retail penetration.
Speaker Change #164: E Commerce infrastructure continues to improve and e-commerce models continue to emerge.
Speaker Change #164: We absolutely know waiting and exploring new models to create greater value for our consumers.
Speaker Change #164: In the long term.
Speaker Change #164: We believe there's still a large potential in all our retail penetration.
Lei Chen: We are keeping improving our services to consumers. From the merchant side, we are also improving the scope and value of our services, and we continue to allocate resources to support high quality marriage. We are willing to do business properly. By doing so, we hope you grow together with the Merger and further broaden the selection of quality products on our platform. Positive feedback loops are achieved when these factors work together in such a rising industry.
Speaker Change #164: We were keeping proofing our service sales to.
Speaker Change #164: To consumers.
Speaker Change #164: From the merchant side, we are also improving the scope and volume for all of our services.
Speaker Change #164: We continue to allocate resources to support high quality merchants.
Speaker Change #164: And to do business properly.
Speaker Change #164: By doing so we hope to grow together based imaging and further broaden the selection of quality production in all of our platforms.
Speaker Change #164: The positive thing about <unk> is achieved when this factors will pick up that.
Speaker Change #164: In such a rising industry, we need to keep all the how strong and focused on execution.
Lei Chen: I need to keep all the hats on and focus on execution, faced with more competition. Our constant focus is to deliver more value for our consumers and merchants. We believe that the value we create for consumers and merchants will ultimately be reflected in our financial results. Hello, I am Chen Lei. Let me answer the question about our globalization strategy. Hi Yang, this is Lei.
Speaker Change #164: Phase two is more competition.
Speaker Change #164: Our constant focus is to deliver more value for our consumers.
Speaker Change #164: <unk>.
Speaker Change #164: We believe that the value we create for consumers and merchants will ultimately be reflected in our financial results.
Speaker Change #164: Thank you.
Speaker Change #164:
Speaker Change #164: Yes.
Speaker Change #165: No what I believe.
Speaker Change #164: <unk>.
Lei Chen: Let me take your question on global business strategy. First of all, our globalization business is a very light business. At this stage, we are still in the process of constantly exploring and learning to work hard to promote the development of high-quality business as soon as possible. [inaudible] After we determine the strategic goal, we will do our best to achieve it. And first of all, our global business is still quite new, and we're working very hard to grow the business in a high-quality way while, at the same time, still learning more about new business models. And we are a company that focuses heavily on execution. And after setting a strategic direction, we'll do our best to execute.
Speaker Change #164: Hi, Brian.
Let me take your question on the global business strategy.
Speaker Change #164: The missile general between your high yield.
Speaker Change #164: <unk>.
Speaker Change #166: The machines, you don't know EMEA and emotional recently reported June two leader, Jim quite healthily on the tweaking yoga products.
Speaker Change #166: When we see good transition to <unk>.
Speaker Change #166: And with that should be done it will go.
Speaker Change #166: <unk>.
Speaker Change #166: And first of all.
Speaker Change #166: Our global business is still quite new.
Speaker Change #166: We are working very hard to grow the business in a high quality way.
Speaker Change #166: While at the same time still learning more about new business models, and we are a company that focuses heavily on execution and also setting the strategic direction, we will do our best to execute.
Lei Chen: As we have communicated in the past few quarters, we will continue to focus on improving our own supply chain, service capability, and return capability. In terms of supply chain, our goal is to further extend and deepen our supply chain capabilities, jing yi bu de tuo huang pin mei ???????????, ????????,??????????,???????????????????,????????,??????????,???????????????????, And as we communicated in the past few quarters, looking ahead, we will continue to focus on enhancing our supply chain capabilities, our service capabilities, and compliance capabilities.
Speaker Change #167: Well, Sheila if you could see two globally.
Speaker Change #167: Will be equally strong.
Speaker Change #167: <unk> million dollars.
Speaker Change #168: Fortunately, we didn't know that you said.
Speaker Change #169: The medical you may have for me.
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Speaker Change #171: Got it changeable Youll do the Chogyal did you use of the <unk>.
Speaker Change #172: Are you able to pull hunky dory.
Speaker Change #172: From a cautionary I'll kick off the chart.
Speaker Change #172: Yes.
Speaker Change #172: Good.
John: John do you have the two we're trying to do.
Speaker Change #174: But not only trained to the shelf.
John: Yes.
Speaker Change #175: And as we've communicated in the past few quarters looking ahead, we will continue to focus on.
Speaker Change #175: Supply chain capabilities.
Speaker Change #175: Obviously visibility and combined.
Lei Chen: And in terms of the supply chain, our goal is to further extend and deepen our supply chain to connect with high-quality merchants and high-quality suppliers around the world and to further broaden the product offerings on our platform. And at the same time, we're improving the efficiency of the supply chain to make it easier for merchants to sell their products and also to lower their cost of doing business. And therefore, all consumers and merchants worldwide will be able to benefit from it., In terms of service capability, we will try different ways of traveling.
Speaker Change #175: And in terms of supply chain.
Speaker Change #175: So as to further extend and deepen our supply chain to connect with high quality merchants and high quality supply around the world and to further broaden our product offerings on our platform.
Speaker Change #175: And at the same time will improve the efficiency of the supply chain to make it easier merchants to sell their product and also the ability of the cost of doing business.
And therefore, we can.
Speaker Change #175: Consumers and merchants worldwide will be able to benefit from this.
Speaker Change #175: And so one of the least hardware will produce.
Speaker Change #175: Follow suit.
Lei Chen: , ,, In terms of service capabilities, we are exploring different fulfillment solutions to improve efficiency and also to serve more diverse consumption scenarios. And, in addition, we are also leveraging our technology capabilities to improve our customer service and the overall shopping experience. As for the ability to return, as I mentioned just now, this is the premise of platform, high-quality, and sustainable development. [inaudible]?? And as for compliance, we talked about it earlier on this call, that this is the key to platform, high-quality, and sustainable development. And it is also the foundation for creating a safe shopping environment for our users, and we will continue to invest firmly in this area.
Speaker Change #175: The next one.
Speaker Change #176: Key golf to Sean.
Speaker Change #177: Hawkins, Don young chocolate homes.
Speaker Change #177: <unk> lineup or me as a cohort.
Speaker Change #177: Jonathan.
You will watch all three goals.
Speaker Change #177: And in terms of service capabilities.
Speaker Change #177: It is growing.
Speaker Change #177: <unk> fulfillment solutions to improve efficiency and also to serve more.
Speaker Change #177: Diverse consumption scenario and in addition, we are also leveraging our technology to the abilities to improve our customer service and the overall economy scale.
Speaker Change #177: No.
Speaker Change #177: Okay.
Speaker Change #178: <unk> got really quick.
Speaker Change #179: So we celebrate carnival understood.
Speaker Change #179: Yes.
Speaker Change #179: One more point.
Speaker Change #179: <unk>.
Speaker Change #179: And the asphalt compliant.
Speaker Change #179: Think about it early on this call.
Speaker Change #179: It is the key to the high quality and sustainable development platform and it is also the foundation for creating a safe environment for our users.
Speaker Change #179: And we will continue to invest firmly in this area.
Lei Chen: In conclusion, I want to emphasize that the purpose of our investment is to provide more good prices and goods to global consumers and to provide them with safe, interesting, and differentiated work. And finally, the purpose of us doing all these investments is always to bring more quality products at affordable prices to consumers worldwide and to offer them a safe, enjoyable, and unique shopping experience. Operator, let's move on to the next panelist on the line. Thank you.
Speaker Change #179: Yes.
Speaker Change #179: Yes.
Speaker Change #180: All right.
Speaker Change #180: Total weight without later this.
Speaker Change #180: This year <unk> daughter.
Speaker Change #180: We come and go and create.
Speaker Change #180: Hi.
Speaker Change #180: And finally the purpose.
Speaker Change #180: Are these investments, it's always to bring more quality product.
Speaker Change #180: Core prices to consumers worldwide.
Speaker Change #180: To offer them, I'd say enjoyable and unique shopping period.
And operator, let's move on to the next analyst on the line.
Kenneth Fong: Your next question comes from Kenneth Fong from UBS. Please ask your question. Good evening.
Speaker Change #181: Thank you. Your next question comes from Kenneth toll from UBS. Please ask your question.
Kenneth Fong: Thank you for accepting my question, Dr. Kwang. I have two questions. The first one is about profitability. Under the background of competition, our company has achieved a good level of profitability this quarter. In terms of marketing costs, we also see a good business sense. Does this mean that the company's investment in the future will slow down? Can you talk about the company's plans for future investment costs?
Speaker Change #180: Okay.
Speaker Change #182: Your question, Jason why don't you want wherever they go and Pete do you grew up on you you need from Endo com.
Speaker Change #183: <unk> charged you debating in shock when got see too high she sent up which would've initially being used.
Speaker Change #184: Hopefully you'll find that when they are kind of on how that Jean <unk>.
Speaker Change #185: So copel uhm Congresses that we that you can tilt.
Speaker Change #186: My my phone why no okay.
Speaker Change #185: Sure.
Speaker Change #185: So maybe a quick one.
Kenneth Fong: The first is on profitability. The company can still achieve profitability growth in the first quarter despite intensified competition. We are also seeing good operating leverage in terms of sales and marketing expenses. Does this mean the company is slowing down the investment in marketing? More broadly, can management talk about your plan for resource allocation?
Speaker Change #187: What Thiago <unk>.
Speaker Change #187: End of <unk>.
Speaker Change #188: Can we get from Antelope, one is young Ku fragile. So do you have any union Daniel Furtado turns on hold yet.
Speaker Change #189: They showed me a concert you beat up Simona Yoshino well defined Asia.
Thank you management for taking my question.
Speaker Change #190: I have two questions. The first is on profitability.
Speaker Change #191: The company can do achieve a pulpit 30 growth in the first quarter. Despite intensified competition. We are also seeing good operating leverage in terms of sales and marketing expenses does it mean the company is slowing down the investment in marketing more broadly can management talk about your plan and resources allocation and my second.
Speaker Change #192: <unk> is on a recovery strategy.
Speaker Change #193: During a recovery.
Speaker Change #194: Management share how would you think about the broad potential of agricultural product category and also how do you value your key competitive advantage in this area. Thank you.
Kenneth Fong: And my second question is on agricultural strategy. Regarding agriculture, could management share how they think about the growth potential of the agricultural product category? And also, how do they evaluate their key competitive advantage in this area? Thank you. Hi, Kenny. Thanks for your caption. This is Jane.
James: Hi, Kenny Thanks for your Catherine this is James.
Jun Liu: Let me first answer your question about profitability. Well, regarding profitability, we mentioned in our pre-pandemic remarks that the company's business does not follow a linear pattern, will beat market expectations in some quarters and miss expectations in others. We suggest investors not forecast our future growth completely based on results from a fecal... We always focus on the long-term growth of the company's intrinsic value, and we do not smooth out short-term financial data. Business Execution, will we compare the return on investment in different markets? and make prudent plans for resource allocation will not increase or decrease expenditure items solely based on a preset.
James: Let me first answer your question about profitability.
James: Regarding profitability, we mentioned in our prepared remarks about the Companys business does not follow a linear path.
James: And with each market.
James: Expectation in some quarters and.
James: Expectation notice.
James: With suggestions asked us not to forecast our future growth comfortably based on results from the few quarters.
James: Yes.
James: We're always focused on the long term grow the shaft, the company's intrinsic value and we're not soon without short term financial data.
James: And business execution.
James: We're compelled to return enough investment in different markets.
James: And make prudent plans for our resources allocation.
James: We will not increase or decrease in expense items solely based on our pre SaaS in our factory.
Jun Liu: The company's investment in each quarter depends on the specific investment opportunities we see in the market. Currently, we are still in growth. If we see good value creation opportunities in the future, will our investments fund them?
James: The companys investment in each quarter it depends on the specific investment opportunities, we see in the market.
Currently we are still in growth phase a residual value creation opportunities in the future.
Investment suddenly.
Jun Liu: These investments might bring fluctuations to shorten profitability but will help us grow intrinsic value in the long run. This is our view on profitability. Hello, I am Jiazhen Zhao. Let me answer some questions about agriculture.
James: These investments might bring fluctuations to short term profitability.
James: But will help us grow intrinsic value in the long run.
James: This is all of you on profitability.
Speaker Change #196: Thank you.
James: Anyhow.
All I can say that I cited one linear.
Jiazhen Zhao: Let me take your question on agriculture. Pinduoduo, We also did a lot of model research around agriculture. For example, the production and distribution of agricultural products, and Duoduo Grocery, which we founded, have built the local supply chain to supply agricultural products. Agriculture is our foundation. We started our business with retailing agriculture. We have been investing in agriculture for many years, and we initiated the new model of good purchase for agriculture.
Josh: Hi, This is Josh.
Speaker Change #197: Let me take your question.
Josh: Sure.
Speaker Change #198: So I wonder if you notice in Manhattan.
Speaker Change #198: As you know the only type of anything and so what you got.
Speaker Change #198: <unk>.
Speaker Change #198: And then not known yet.
Speaker Change #199: Yeah, Penalize Costar doesn't know anything until that seamlessly.
Speaker Change #200: Oh, no I'm told I've been on board a little more advertising.
Speaker Change #200: 100 <unk>.
Speaker Change #200: With all of them as Honeywell total Manhattan <unk> been considering.
Speaker Change #201: Agriculture is our foundation, we started our business retailing of agriculture products.
Speaker Change #201: <unk> been investing in agriculture for many years and.
We initiated a new model of good purchase for agricultural products.
Jiazhen Zhao: We have also innovated many agricultural solutions, such as the direct delivery of agricultural products from the place of origin and our dodo grasses, building up a platform that connects local supply to local demand. The agricultural sector is a very difficult industry to work in due to its low standardization, difficult transportation, and scattered supply.
Speaker Change #201: We have also innovated many agricultural solutions such as <unk>.
Speaker Change #201: Direct delivery of agricultural products from the place operation and our total grocery.
Speaker Change #201: Building up a platform that connects with local supply to local demand.
Speaker Change #202: In Louisiana, Seeger and alcohol, yeah, you'll use it as hunting kind of Ibs D for each country.
Speaker Change #203: Sure going to be able to often sanjay.
Jiazhen Zhao: At this stage, there is still a lot of room for improvement in terms of agricultural products' online penetration rate and the digitalization of farmers. Therefore, we have no choice but to do it ourselves to serve agriculture well. We are deeply involved in the agricultural supply chain transformation. In this process, we have also accumulated a lot of valuable experience and trained our team.
Speaker Change #203: Yes.
Speaker Change #204: I said the only unknown for US was the hot Nelina Omidria at the higher end artisan home game.
Speaker Change #205: Using 400, yes, let me <unk>.
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Mr. Hu: Well, Mr. Hu, the tiny analytical unit development.
Speaker Change #207: And don't know when they are delayed at all on that.
Speaker Change #207: Everything yes.
Speaker Change #207: Lee.
Jiazhen Zhao: Agriculture is a challenging industry, with Low Product Standardization and Decentralized [inaudible]. Currently, the online penetration rate of agricultural products remains relatively low, and there's still plenty of room for improvement in digitalizing farmers' operations. Therefore, we have taken it upon ourselves to invest in this industry and dive deep into transforming the agricultural product. Throughout this journey, we have accumulated a lot of valuable experience and enhanced our team's capability. The agricultural product is now a very important high-end product.
Speaker Change #208: Agriculture is a challenging industry with low product standardization standardization and decentralized to supply.
Speaker Change #208: Barring entrance for transporting agricultural products can be quite difficult.
Speaker Change #208: Currently the online penetration rate of agriculture product remains relative alone and Theres still plenty of room for improvement in <unk> farmers operation.
Speaker Change #208: Therefore, we have taken it upon ourselves to invest in this industry and dive deep into transforming the agricultural supply chain.
Speaker Change #208: Throughout this journey, we have accumulated a lot of valuable experience and enhanced our team's capabilities.
Speaker Change #208: I was hoping that I can answer you guys, saying that something else, that's causing the delay.
Speaker Change #209: <unk> I don't see any way to us or the churn.
Speaker Change #209: And it does have impact.
Speaker Change #209: Notwithstanding that we have financial toll roads.
Jiazhen Zhao: Pinduoduo has always been an all-product e-commerce platform with agricultural products as its signature. Duoduo Last month's opening of the 4th Duoduo Agricultural Science and Technology Competition, [inaudible], Agricultural products are now a very important high-frequency, And Pinduoduo has always been a full category e-commerce platform featuring agriculture. We're still making firm investment in agriculture. In the fourth Smart Agriculture competition launched last year, we focus on AI planting and encourage to explore optimization and commercialization of agricultural products.
Speaker Change #210: Suddenly got hammered adhesives, yeah, total OEM, because he thought that momentum.
Speaker Change #209: Yeah.
Speaker Change #209: 40 801 nine.
Speaker Change #209: No not being send out youll file if I ought to losing.
Speaker Change #209: Not knowing anything on the tissue that dosing because there's no country.
Speaker Change #209: Without going into all four actually it was the hottest NDA file.
Speaker Change #211: Well, let us handle yes, intaglio tone, because 100, a rule, but I know the West Virginia D C.
Speaker Change #212: Agricultural products and now a very important high frequency category and <unk>.
Speaker Change #212: Total has always been a full category e-commerce platform fishing agriculture for that.
Speaker Change #212: We're still banking firm investment in agriculture.
Speaker Change #213: In the fourth smart agriculture competition launched last mile with folks on AI planting and encourage participants to explore optimization and commercialization of agricultural production.
Jiazhen Zhao: Our Agriculture Cloud Initiative also continues to bring digital solutions to farmers in various agricultural production regions. We will continue to invest in diverse aspects of agricultural production and supply chain in the future. ,,, Through continuous investment in agriculture, we hope to promote modernization of the agricultural industry and enhance the quality and efficiency of the supply chain. At the same time, we help farmers increase their value and income, and create local jobs, thereby supporting the overall revitalization of rural communities.
Speaker Change #213: Our agriculture cloud initiatives also continue to bring digital solutions to farmers in various agricultural production regions.
Speaker Change #213: We will continue to invest in diverse aspects of agricultural production and supply chain in the future.
Speaker Change #214: Or trading ammonia deficit rule melanomas.
Speaker Change #215: I will miss him on the <unk> session that has truly galena cheeses, and Chad Holsinger now more bundling them in central and south annually.
Speaker Change #216: Yes vishal.
Speaker Change #216: <unk> total medical market.
Speaker Change #216: Through continued investment in agriculture, we hope to promote modernization of the agriculture industry.
Speaker Change #216: The quality and efficiency of the supply chain.
Speaker Change #216: At the same time, we help farmers increase their value and income.
Speaker Change #216: Create local jobs, thereby supporting the overall revitalization of rural communities.
Speaker Change #216: Q.
Speaker Change #216: Yes.
Jiazhen Zhao: Thank you. Thank you, Jiazhen. And also, thank you, Kenny. Thank you all once again for joining us today. And it's about time.
Speaker Change #217: Thank you Jonathan and also thank you Kenny.
Unknown Executive: And if you have any further questions, please reach out to our investor relations team. And thank you and have a great day. Ladies and gentlemen, that does conclude our conference for today. Thank you for participating. You may all disconnect. Transcribed by https://otter.ai, [inaudible] Transcribed by https://otter.ai, Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music Thomas Chong, Yang Bai, Jun Liu, Lixin Ju, Natalie Wu, Kenneth Fong, Yang Bai, Jun Liu, Jiazhen Zhao, Pinduoduo Inc, [inaudible] Thomas Chong, Yang Bai, Jun Liu, Jiazhen Zhao, Pinduoduo Inc Thomas Chong, Yang Bai, Jun Liu, Jiazhen Zhao, Pinduoduo Inc, Thomas Chong, Yang Bai, Jun Liu, Jiazhen Zhao, Pinduoduo Inc Thomas Chong, Yang Bai, Jun Liu, Jiazhen Zhao, Pinduoduo Inc Thomas Chong, Yang Bai, Jun Liu, Jiazhen Zhao, Pinduoduo Inc Thomas Chong, Yang Bai, Jun Liu, Jiazhen Zhao, Pinduoduo Inc Thomas Chong, Yang Bai, Jun Liu, Jiazhen Zhao, Pinduoduo Inc, [inaudible]
Speaker Change #218: Thank you all once again for joining us today.
Speaker Change #218: And if you have any further questions. Please reach out to our Investor relations team and thank you and have a great day.
Speaker Change #218: Okay.
Speaker Change #219: Ladies and gentlemen that does conclude our conference for today. Thank you for participating you may all disconnect.
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Speaker Change #219: Okay.
Speaker Change #219: Okay.
Speaker Change #219: Okay.
Speaker Change #219: [music].
Speaker Change #219: Okay.
Speaker Change #219: Okay.
Speaker Change #219: Okay.
Speaker Change #219: Yes.
Speaker Change #219: Okay.
Speaker Change #219: Okay.
Speaker Change #219: Okay.
Speaker Change #219: Yes.
Speaker Change #219: Great.
Speaker Change #219: Okay.
Speaker Change #219: [music].
Okay.
Speaker Change #219: Okay.
Speaker Change #219: Okay.
Speaker Change #219: Okay.
Speaker Change #219: Sure.
Speaker Change #219: Yes.
Speaker Change #219: [music].
Speaker Change #219: Okay.
Speaker Change #219: Okay.
Speaker Change #219: [music].
Speaker Change #219: [music].
Speaker Change #219: Okay.
Speaker Change #219: Yes.
Speaker Change #219: Okay.
Speaker Change #219: Okay.
Okay.
Speaker Change #219: Yes.
Speaker Change #219: Sure.
Speaker Change #219: Okay.
Speaker Change #219: Okay.
Speaker Change #219: Yes.
Speaker Change #219: Sure.
Speaker Change #219: Yes.
Speaker Change #219: [music].
Speaker Change #219: Okay.
Speaker Change #219: Yeah.
Speaker Change #219: Okay.
Speaker Change #219: Yes.
Speaker Change #219: Okay.
Speaker Change #219: [music].
Speaker Change #219: Yes.
Speaker Change #219: Okay.
Speaker Change #219: Okay.
Speaker Change #219: Okay.
Speaker Change #219: Yes.
Speaker Change #219: Okay.
Speaker Change #219: [music].