Q2 2024 PDD Holdings Inc Earnings Call

August 26, 2024

Okay.

[music].

Speaker Change: Ladies and gentlemen, thank you for standing by and welcome to <unk> Holdings, Inc. Second quarter 'twenty 'twenty four earnings conference call.

Speaker Change: At this time all participants are in a listen only mode 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. Please be advised that today's conference is being recorded.

I'd now like to hand, the conference over to your host Tonight, but please go ahead.

Speaker Change: Thank you operator, Hello, everyone and thank you for joining us today.

Speaker Change: <unk> Holdings earnings release was distributed earlier and is available on our website at investors <unk> holdings Dot com as well as food the newswire services.

Speaker Change: Before we begin.

Speaker Change: I would like to refer you to our safe Harbor statement in the earnings press release, which applies to this call as well.

Speaker Change: We'll make certain forward looking statements.

Speaker Change: Also this call includes discussions of certain non-GAAP financial measures.

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 Mr. Kenneth at.

Speaker Change: Our chairman and co Chief Executive Officer Mr.

Speaker Change: Mr. Joe John Alright, Executive Director and co Chief Executive Officer.

Why somebody Celgene, our VP of finance.

Speaker Change: Les and Joe Joe will make some general remarks on our performance for the past quarter.

Speaker Change: Our strategic focus.

Speaker Change: Gene will then walk us through our financial results for the second quarter ended June 30.

Speaker Change: 2024.

Speaker Change: During the Q&A session, Les and Joe I'll answer the questions in Chinese.

I'll help translate.

Speaker Change: He is currently known about the English translation is for graphics and in case of any discrepancy statement in the original language should prevail.

Speaker Change: Now, it's my pleasure to introduce our chairman and co Chief Executive Officer, Mr. Chairman.

Mr. Chairman: Please go ahead.

Unknown Executive: [inaudible] Jiazhen Zhao, Jiazhen Zhao, Jiazhen Zhao, Jiazhen[inaudible] During the Q&A session, Lei and Jiazhen will answer questions in Chinese that will help translate.

Mr. Chairman: Yep.

Mr. Chairman: Hello, everyone.

Mr. Chairman: You all for joining our earnings call for the second quarter 2024.

Mr. Chairman: Well the first half of 2024.

Mr. Chairman: We remain committed to our high quality development strategy.

Mr. Chairman: <unk> our platform ecosystem.

Mr. Chairman: We received positive feedback for these efforts.

Mr. Chairman: And our services continued to improve.

Mr. Chairman: You may choose and put that have grown significantly.

Mr. Chairman: And as far as the needs of the diverse needs of all consumer.

This quarter, we benefited from the improving macro environment and achieved robust financial results.

Our total revenues reached RMB 19 7 billion.

Mr. Chairman: Which will represent a year over year increase of 86%.

Speaker Change: However, we are seeing maybe you try and do that.

Well I'm changing consumer demand and intensified competition.

Speaker Change: And I said increase in global environment.

Speaker Change: As a result, we will enter a new phase of high quality development and costs fall equally investments.

Speaker Change: Our profitability.

Speaker Change: As a result.

Speaker Change: Since the beginning of this year, we are seeing is that a consumer preference is has become more diverse.

Speaker Change: Oh, one and consumers are increasingly choosing <unk>.

Speaker Change: Means base consumption Oba material purchases.

Allison: Hey, Allison.

Allison: Yes, the gross emphases on rationale consumption.

Allison: Consumers are making more softballs decisions to balance quality is bad.

Baas: English baas.

Speaker Change: Carnival and maintain high quality brands and manufacturers to create a customized products.

Speaker Change: Tuesday's tablet demand.

Speaker Change: This approach has not only propelled by the new brands to success.

Speaker Change: Also we bought the popularity of many established brands.

Speaker Change: And this is just one example of how digital technology and manufacturing can come together to create new opportunities.

Speaker Change: As small as.

Speaker Change: Competition among e-commerce platforms is quickly escalating.

Therefore, even more important that we go back to the basics all supply chain improvements.

Speaker Change: Certainly surprised with efficiencies.

Speaker Change: This will be the key focus for our high quality development going forward.

Unknown Executive: Please kindly note that English translation is for reference only and in case of any discrepancy, statements in the original language should prevail.

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

Speaker Change: For example in the second quarter. Our teams continued to bring our agricultural call me say Gabe to mainly through our production.

Lei Chen: Now it's my pleasure to introduce our chairman and co-chief Executive Officer Mr. Chen Lei.

Lei Chen: Now it's my pleasure to introduce our chairman and co-chief Executive Officer Mr. Chen Lei. Lei, please go ahead. Thank you. Hello, everyone. Thank you all for joining our early call for the second quarter of 2024. In the first half of 2024, I will remain committed to our high-quality development strategy and consistently invited to our platform ecosystem. We received positive feedback for these efforts. Can you see the experience and our services are continuing to improve a number of new merchants and products have grown significantly.

Chen Lei: Now it's my pleasure to introduce our chairman and co-chief executive officer, Mr. Chen Lei. Please go ahead. Thank you. Hello everyone. Thank you all for joining our second quarter of 2024. In the first half of 2024, I will remain committed to our high-quality development strategy and consistently exempted in our platform ecosystem. We received positive feedback for these efforts, case-of-experience and our services, and continuing to improve a number of new merchants and products have grown significantly.

Speaker Change: In helping local growers to bring seasonal foods directly to People's Hearts.

Lei Chen: Lei, please go ahead.

Speaker Change: And in this precise promoting local agricultural Brad.

Lei Chen: Thank you.

Speaker Change: Yes.

Speaker Change: To further include agriculture supply chain.

Lei Chen: Hello, everyone.

Speaker Change: These are tenants and promote with technology inclusion.

Speaker Change: We continue to support the small equity cultural competition L. A piece a little bit Academy growing competition.

Lisa: Agricultural Lisa it's fun, we established in cooperation with China, Agriculture University and also started to bear fruit.

Lisa: On the manufacturing side, we are pleased to find that many small and medium sized businesses.

Lei Chen: This version means the diverse needs of our consumers. This quarter, we benefited from the improving market environment and attribute of our financial results. Our total revenue reached INB 97 billion, which represents a year-only increase of 86%. However, we are seeing many new changes ahead. From changing consumer demand, intensifying competition and uncertainties in global environment. As a result, we will enter a new phase of high-quality development that calls for increase in residence.

Chen Lei: This further means that worth needs of our consumers. This quarter, we benefited from the improving market environment and attributable financial results. Our total revenue reached INB 97 billion, which represents a year-only increase of 86%. However, we are seeing many new changes ahead. From changing consumer demand, intensifying competition, and uncertainties in global environment. As a result, we will enter a new phase of high-quality development that calls for increase in residents. Our profitability will affect it as a result.

Lisa: Using our digital capabilities.

Lei Chen: Thank you all for joining our early call for the second quarter of 2024.

Lisa: All to support.

Iteration and innovation.

Lisa: These process have not only emerge stronger for all the competition, but also let the local industries towards high quality departments.

Lei Chen: In the first half of 2024, I will remain committed to our high-quality development strategy and consistently invited to our platform ecosystem. We received positive feedback for these efforts. Can you see the experience and our services are continuing to improve a number of new merchants and products have grown significantly.

Speaker Change: This is resolved.

Speaker Change: And our commitment to further investing in high quality didnt have it.

We have communicated a number of locations that the property goes.

Speaker Change: Last few quarters should not be used as a long term guidance.

It is a result of mismatch between our business investments and their financial reporting cycles.

Lei Chen: Our profitability will affect it as a result. Since the beginning of this year, we are seeing that consumer preferences have become more diverse. On one hand, consumers are increasingly choosing experience-based consumption over material purchases. On the other hand, there is a growing emphasis on rational consumption. Consumers are making more thoughtful decisions to balance quality and value. In response, we have collaborated with high-quality brands and manufacturers to create a customized product that catered to these diverse demands.

So we enter in your investment in Phase I.

Chen Lei: Since the beginning of this year, we have seen that consumer preferences have become more diverse. On one hand, consumers are increasingly choosing experience-based consumption over material purchases. On the other hand, there is a growing emphasis on rational consumption. Consumers are making more thoughtful decisions to balance quality and value. In response, we have collaborated with high-quality brands and manufacturers to create a customized product that catered to these diverse demands. This approach has not only propelled but in new brands to success.

Lei Chen: This version means the diverse needs of our consumers.

Speaker Change: I can make it clear all at all in.

Speaker Change: Investors that our process will gradually trend down starting in Q3.

Speaker Change: And they'll be Saatchi art.

Speaker Change: A rebound in construction.

Speaker Change: In the long run the decline in profitability is inevitable.

Speaker Change: I believe our preference has it reached a considerable scale.

We remain committed to high quality development, and a focus on creating a healthy and sustainable platform ecosystem.

Speaker Change: And two were leased and we adopt policies.

Speaker Change: Policies to a degree so you support high quality merchandise and tackle local coupons.

Lei Chen: This approach has not only prepared but in new brands to success. It also revived the popularity of many established brands. Since this is just one example of how digital technology and manufacturing can come together to create new opportunities. At this moment, the competition among e-commerce platforms is quickly escalating. Therefore, it is even more important that we go back to the basics of supply chain improvement and invest firmly in supply chain efficiencies.

Speaker Change: From a supply side.

Chen Lei: It also relies on the popularity of many established brands. Since this is just one example of how digital technology and manufacturing can come together to create new opportunities. At its moment, the competition among e-commerce platforms is quickly escalating. Therefore, it is even more important that we go back to the basics of supply chain improvement and invest firmly in supply chain efficiencies. This will be the key focus for our high-quality development going forward.

Speaker Change: We'll invest.

Speaker Change: Substantially resources to support high quality machines, while waiting to eat.

Speaker Change: And equally qualities.

Speaker Change: And we will offer significant transaction fees a reduction to these metrics.

Speaker Change: The initial target of $10 billion in the first year.

Doing so our goal is to provide clear.

Speaker Change: Incentives for our merchants are enjoying high quality demand.

Speaker Change: And we have further deepened our trust and safety capabilities to improve our merchant ecosystem and strengthen our supply chain.

Lei Chen: This will be the key focus for our high-quality development going forward. For example, in the second quarter, our team is continuing to bring our agricultural cloud initiative to manage your production regions, to helping local growers to bring seasonal foods directly to people's homes. And in this process, promote the local agricultural brand. In addition, to further improve agricultural supply chain, neutral research talents and promote technology inclusion, we continue to support a smart agricultural competition and a team-buildal economy growing competition.

Speaker Change: Yeah, actually I think identifying and removing unlawful bad actor is for our customers.

Chen Lei: For example, in the second quarter, our team is continuing to bring our agricultural cloud initiative to manage your production regions, to helping local growers to bring seasonal foods directly to people's homes. And in this process, promoted the local agricultural brand. In addition, to further improve agricultural supply chain, neutral research talents and promote technology inclusion, we continue to support a smart agricultural competition and a Pinduoduo Academy growing competition. The agricultural research fund we established in collaboration with China Agricultural University has also started to bear fruit.

Speaker Change: Continue to strengthen this effort.

Speaker Change: For the moment, we have already started a new round of investment operation and R&D to streamline our merchant Onboarding and product listing process leveraging technology.

Speaker Change: Gradually improving the quality of our products sold on our platform and create a fair and transparent and the business environment for Amish.

Speaker Change: In this process.

Speaker Change: Believes that sacrifice second with pricing thoughts and processes if necessary.

Speaker Change: So create downward trend in prostate.

Lei Chen: The agricultural research fund, which established incorporation with China Agricultural University, has also started to bear food. On a manufacturing side, we are pleased to find that many small and medium-sized businesses have been using the digital capabilities from our platform to support production, iteration and innovation. Through this process, they have not only emerged stronger from the competition, but also led the local industries towards high-quality development. This result has strengthened our commitment to further investing in high-quality development.

Speaker Change: Yeah.

Speaker Change: But we are prepared to invest firmly in the pace to be eating that performs lungs in house.

Speaker Change: This is a decision that has to be received unanimous support from all our management team.

Chen Lei: On the manufacturing side, we are pleased to find that many small and medium-sized businesses have been using the digital capabilities from our platform to support production, iteration and innovation. Through this process, they have not only emerged stronger from the competition, but also led the local industries towards high-quality development. This results have strengthened our commitment to further investing in high-quality development. We have communicated or a number of occasions that the product growth in our past few quarters should not use as a long-term guidance.

Speaker Change: And now moving on to our global business.

Speaker Change: In the past few quarters.

Nokia: Nokia is rapidly shifts external environment, which brought significantly greater uncertainty.

Nokia: Operations has also been talk increasingly affected by non business factors.

Nokia: Wow the competition, we face is growing stronger competition is here to stay and is expected to intensify in our industry.

Lei Chen: We have communicated or a number of occasions that the product growth in our past few quarters should not use as a long-term guidance. And it is a result of mismatch between the business investment and the financial reporting cycles. So we enter a new investment in the face. I would like to make it clear to our investors that our process will gradually trend down starting in QC, and there will be such issues or rebounds in the short term, in the long run, that decline in profitability is inevitable.

Nokia: Our global business is facing significant uncertainties intense competition and evolving suddenly battery.

Chen Lei: And it is a result of mismatch between the business investment and the financial reporting cycles. So we enter a new investment in the face. I would like to make it clear to our investors that our process will gradually trend down starting in QC. Can there be such issues or rebounds in the short term, in the long run, that decline in profitability is inevitable? Finally, our platforms have reached a considerable scale. They will remain committed to high-quality development and focus on creating a healthy and sustainable platform ecosystem.

Nokia: These factors combined will inevitably caused such pieces to our business.

Nokia: Yes.

Nokia: As shown in this quarters results.

Speaker Change: Revenue growth is not sustainable and the downward trend in property policy stability navigable.

Speaker Change: And finally.

Speaker Change: I believe environment evolves and our company continues to grow.

Speaker Change: All of the management team and I, often discuss how we can better fulfill our corporate social responsibilities.

Lei Chen: Finally, our platforms have reached a considerable scale that will remain committed to high-quality development and focus on creating a healthy and sustainable platform ecosystem. And to this end, we adopt the net net policies to rigorously support high-quality emissions and tackle low-quality ones. On the supply side, we will invest the substantial resources to support high-quality emissions while we need to innovate technical priorities, and we will offer significant transaction fee reduction to these emissions, with an initial target of 10 billion in the first year.

Speaker Change: We believe there's still many things that can be done for example, so in housing calling his doctor.

Speaker Change: Ingredient dossiers.

Speaker Change: Adapt to the changing times.

Chen Lei: And to this end, we adopt the net net policies to rigorously support high-quality emissions and tackle low-quality ones. On the supply side, we will invest the substantial resources to support high-quality emissions while we need to innovate technical priorities. And we will offer significant transaction fee reduction to these emissions, with an initial target of 10 billion in the first few. By doing so, our goals provide clear initiative for merchants to join high-quality development.

Speaker Change: We can also do more to get back towards the five T, who support agriculture, and other industry sectors and offer greater support for the people who need the most.

Speaker Change: We fully recognize that simply marketing our company's performance by certain capital B twos, no longer aligned with where we are today.

Speaker Change: As a global company.

Speaker Change: We are committed to driving innovation.

Lei Chen: By doing so, our goals provide clear initiative for merchants to join high-quality development. On our hand, we will first deepen our trust and safety capabilities to improve our merchant ecosystem and strengthen our supply chain. We are actually identifying and removing our novel net actors from our platforms. and will continue to strengthen this effort. As the moment we have already started a new round of investments in operations and R&D to streamline emerging onboarding and product listing process and leveraging technology, we will gradually improve the quality of the products sold on our platforms and create a fair and transparent business environment for our merchants. In this process, we believe that sacrificing certain profits is necessary. A career downward trend in profit is expected, but we are prepared to invest firmly and efficiently in a platform's long-term health.

Speaker Change: That team to trends and taking on greater social responsibilities.

Speaker Change: The region the profitable.

Chen Lei: On our hand, we will first deepen our trust and safety capabilities to improve our merchant ecosystem and strengthen our supply chain. We are actually identifying and removing a lot of the actors from our customers, and will continue to strengthen these efforts. As for the moment, we have already started a new round of investments in operations and R&D to streamline emerging onboarding and product listing process. A leveraging technology will gradually improve the quality of products sold on our platforms and create a fair and transparent business environment for our merchants.

Speaker Change: Now I will hand, it over to our co CEO.

Speaker Change: To talk more about our operations in the second quarter.

Speaker Change: Okay, Oh, what's that here.

Speaker Change: I'm, telling you if you don't know what these arent interested in do you have to keep it.

Thank you.

Speaker Change: Hello, everyone.

Speaker Change: As Joe Jackson. Thank you all for joining our earnings call for the second quarter of 'twenty 'twenty four.

Speaker Change: Yes, I'm on an ordinary share hernia in front of me I can circle back.

Speaker Change: Then in San Francisco on Afrezza, and food I assume that's something that.

Speaker Change: What did I say, yes, they do.

Speaker Change: Well, maybe if you somehow unless the Gartner quadrant foundry cantina heating times, you don't root cause he raping neither country not so great.

Chen Lei: In this process, we believe that sacrificing such a profit is necessary. A career downward trend in profits is expected, but we are prepared to invest firmly and efficiently in a platform's long-term health. This is a position that has received unanimous support from all our management team.

Speaker Change: And right now that's one currency listen when it comes to town.

Speaker Change: In the first half of 15 on language or in China continued to perform well, bringing fresh and it's due to the overall consumption market.

Speaker Change: Over the past quarter, we continued to advance our high quality demand chassis, making steady long term investments to support both supply and demand side of our platforms.

Lei Chen: This is a decision that has received unanimous support from all our management teams. And now, moving on to the global business. In the past few quarters, we have noticed the rapid shifts in external environment, which brought significantly greater uncertainty. Our operations have also been constantly affected by non-business factors and meanwhile, the competition we face is growing stronger. Competition is here to stay and is expected to intensify in our industry. Our global business is seeking significant uncertainties from intense competition and evolving external environment.

Unknown Executive: And now, moving on to the global business. In the past few quarters, we have noticed the rapid shifts in external environments, which brought significantly greater uncertainty. Our operations have also been constantly affected by long business factors.

Speaker Change: Looking ahead to the second quarter of this year and beyond.

Speaker Change: We're very confident in the future, but at the time.

Speaker Change: This consumer market.

Speaker Change: And we do well the TCE reshuffle, she told me about.

So there's huge amount of doors to say Oh well.

Speaker Change: Well done on my side since you're so what you see.

Unknown Executive: And meanwhile, the competition we face is growing stronger, competition is here to stay and is expected to intensify in our industry. Our global business is seeking significant uncertainties from intense competition and evolving external environments. This factor combined will inevitably cause fluctuations to our business as shown in this quarter's results.

Speaker Change: Let's see.

Speaker Change: I'll Botch again, well then things, hence not somebody that actually ends up faithful don't go wishing Wipeout Trina Harmon will not change we have made.

So we don't find ourselves like retail.

Jonathan Chen: Yeah, Jonathan Chen they own backhaul demand out there that can make some of those African intensive training.

Speaker Change: So you don't go shopping center.

Lei Chen: This factor combined will inevitably cause fluctuations to our business, as shown in this quarter's results. Higher revenue growth is not sustainable and a downward trend in profitability is inevitable. And finally, our fleet environment involves that our company continues to grow.

Speaker Change: This quarter, we continued to focus on consumer demand.

Speaker Change: The in house, our more savings and embedded services capabilities and upgraded our after sales services to provide consumers with more value and more enjoyable shopping experiences.

Unknown Executive: High revenue growth is not sustainable and a downward trend in profit possibility is inevitable. And finally, the environment involved in our company continue to grow. The RM management team and I often discuss how we can better fulfill our corporate social responsibilities. We believe that there are still many things that can be done, for example, so enhancing our governance structure and constructing resources can better adapt to our changing times. We can also do more to give back to our society to support agriculture and other industry sectors and offer greater support to the people who need the most.

Speaker Change: In the junior agents promotion, we continue to provide consumers with straightforward saving and introduced the new promotions to meet the increasingly diverse consumer preferences.

Unknown Executive: The RM management team and I open to discuss how we can better fulfill our corporate social responsibilities. We believe that there are still many things that can be done, for example, so enhancing our governance structure and extracting resources can better adapt to our changing times. We can also do more to give back to our society to support agriculture in other industry sectors and offer greater support to the people who need the most.

Speaker Change: We're also broad product categories like fresh produce they didn't necessities.

Speaker Change: And high end acquaintance into third and fourth tier cities and lead our country of huge fusion to consumption upgrades across the regions.

Speaker Change: Uh huh.

Speaker Change: So this is John not to use the same jobs behind us with a needle.

Speaker Change: Yeah, Yeah. So I don't know now using deep without helix a whole D. G. Here.

Unknown Executive: We fully recognize that simply imagining our company's performance by certain capital returns no longer aligns with where we are today. As a global company in this area, we are committed to driving innovation, adapting to change, and taking on greater social responsibilities in the region across the globe.

Unknown Executive: We fully recognize that simply imagining our company's performance by certain capital returns no longer aligns with where we are today. As a global company in this area, we are committed to driving innovation, adapting to change and taking on greater social responsibility in the region across the globe.

Speaker Change: So what was the diesel which is handling that sort of thing that Saddam children.

Speaker Change: No time to tie things Huntington Beach.

You can do to them.

Speaker Change: Oh, yeah yeah.

Speaker Change: Yeah.

Speaker Change: On the supply side, we stepped up our support for quanta merchants and brands directing more traffic to high quality products. So the 10 billion program and fresh food fresh.

Speaker Change: Fresh sales we have also focused on housing the quality and efficiency of the supply chain bring even more value to the agricultural area and industry regions.

Jiazhen Zhao: Now, I will hand it over to our co-CEO Zhao Jiazhen to talk more about our operations in the second quarter. Thank you for joining our earnings call for the second quarter of 10th. In the first half of this year, online retail in China continues to perform well. Bringing fresh energy to the overall consumption market. Over the past quarter, we continue to advance our high-quality development strategy, making steady long-term investments to support both supply and the downsides of our platforms.

Jiazhen Zhao: Now, I will hand it over to our co-CEO, Zhao Jiazhen, to talk more about our operations in the second quarter. For the second quarter of 2021. In the first half of this year, online retail in China continues to perform well. Now, bringing fresh energy to the overall consumption market. Over the past quarter, we continued to advance our high-quality development strategy, making steady long-term investments to support both supply and demand sites of our platforms.

Speaker Change: These benefits more producers quality agricultural and domestic.

Speaker Change: Well actually I didn't catch all your pricing right now.

Lucy Emerald: Also so pivotal Lucy Emerald here.

Speaker Change: Oh My God here before then chartered in Canada through the local Hockenbury instances in our Colorado Center.

Speaker Change: Well, let her need I think are doing in Oklahoma I think by you.

Speaker Change: You're talking about the other superficial kindred.

Speaker Change: As usual.

Tom cause I'm Gonna bulking doses in a football game.

Speaker Change: Campbell, who was looking to match or yeah yeah.

Speaker Change: I'm talking about what are they seeing them down.

Speaker Change: To support our countryside home appliance program and their consumer good chicken.

Speaker Change: We invested 1 billion RMB during the first week of the June 18.

Speaker Change: They're supposed to lead to remarkable growth for many local brands in categories, such as electronics home appliances kitchen Ware and household products.

Lei Chen: This quarter, we benefited from the improving market environment and attribute of our financial results.

Jiazhen Zhao: Looking ahead to the second quarter of this year and beyond, we're very confident in the future of the China's consumer market. [inaudible] and further enhanced our more-sivings and better services capabilities, and upgraded our up-to-fail services to provide consumers with more value and more enjoyable shopping experiences. During the during-agent promotion, we continue to provide consumers with three forward cities and introduce new promotions to meet the increasingly diverse consumer preferences. We also brought product categories like fresh produce, daily necessities, and high-end appointments into third and fourth tier cities, and made our contribution to consumption upgrades across the regions.

Jiazhen Zhao: Looking ahead to the second quarter of this year and beyond, we're very confident in the future of the China's consumer market. This quarter, we continue to continue to continue to work together, and we're very confident in the future of the China's consumer market. We hope some consumer demand further enhanced our more savings and better services capabilities, and upgraded our after-fail services to provide consumers with more value and more enjoyable shopping experiences.

Speaker Change: Example, utilizing our digital technology with hot what helps our local brand with 30 to 60 years of history to understand the latest much of the lungs and returned to growth with a blockbuster product.

Speaker Change: It achieved 100 meters on the Intel after joining the platform, but just you know.

Speaker Change: Goodbye.

Suzanne: Suzanne things went out that can handle it.

Speaker Change: And for your OE schedule.

Speaker Change: So it's all I ever hear that somehow slow down and just tell me how you sell some.

Speaker Change: Kind of anything else Hunan told me he didn't have time deposits that Shlomo.

Speaker Change: Oh, My God damn it I didn't totally understand yes.

Speaker Change: So it all has been done.

Speaker Change: In addition, the number of new merchants and even predict supplies our platforms suddenly some meaningful growth in the first week of June 18th.

Speaker Change: And as mentioned participating in a 10 billion program grow that over 90% year on year and the number of agricultural merchants increased by 83% year on year.

Jiazhen Zhao: During the during-agent promotion, we continue to provide consumers with three forward savings and introduce new promotions to meet the increasingly diverse consumer preferences. We also brought product categories like fresh produce, daily necessities, and high-end appointments into third and fourth-tier TVs, and made our contribution to consumption upgrades across the regions. On the supply side, we step up our support for quality merchants and brands, directing more traffic to high-quality products through the term-building program and fresh sales. We have also focused on enhancing the quality and efficiency of the supply chain, bringing more value to the agricultural areas and industry regions, and benefiting more producers of quality agricultural and domestic goods.

Speaker Change: Our platform also attracted a great number of new merchants and categories such as electronics.

Speaker Change: Classes and cosmetics.

Speaker Change: When are there you'll see the kind of guy he's alcohol opinion R&D.

Speaker Change: Oh, yes, yes.

Speaker Change: Yes, Jason I seen an untold route.

Speaker Change: He then chances are you in that you know that have written at least close NSA team.

You will remember that in your hearth I know he will do.

Speaker Change: I mean, you always have.

Speaker Change: He ended up I'm glad I didn't put up pretty sharply.

I think they'll go with yet.

Speaker Change: To create a better business environment for high quality merchants.

Speaker Change: Sort of a new round of investments in operations and R&D. Our goal is to build industry, leading compliance capabilities and foster healthy platform ecosystem.

Jiazhen Zhao: On the supply side, we step up our support for quality merchants and brands directing more traffic to high quality products through the term-building program and fresh sales. We have also focused on enhancing the quality and efficiency of the supply chain, bringing more value to the agricultural areas and industry regions, and benefiting more producers of quality agricultural and domestic goods. Lei Liu, Meng Le Chen, Lee, Lee, Lee, Lee, Lee, Lee, Lee, Lee, Lee, Lee, Lee, Lee[inaudible] to better control product quality and offer consumers a safe and reliable shopping experience.

Speaker Change: For example, we continue to streamline our merchant onboarding and productive lifting processes to better control protocol T and offer consumers, a safe and reliable shopping experience.

Speaker Change: So that so you can find out of country with only a few times that you're at home no public.

George do you want a sense of whether you end up on one of them says pools and goes through the countries and I found out.

George: Well it goes away.

Speaker Change: We integrate our magics technology for product screening the thorough manual reviews, our trust and safety King is a quote insurance regrows oversight on product compliance, we're avoiding unintended penalties for quality products and merchants.

Jiazhen Zhao: [inaudible] Lee, Lee, Lee[inaudible] Lee Lee Lee Lee Lee Lee[inaudible] At the same time, we have invested heavily in developing, comprehended user-friendly training materials for merchants to boost their compliance capabilities. This effort ends to enhance our supply chain quality while helping merchants lower compliance costs and expand their market range. We also deeply recognize that building a healthy platform ecosystem and achieving high-quality development is a gradual process, especially given the cultural scale of our platforms.

Speaker Change: Oh sure well then total finance again.

Speaker Change: Is there a phone forge houses or you don't have right now because you know that's the team I believe has done to the husband.

Julien: Julien I cannot be held with a minute answer yes. It was kind of out of home clients had been assumed.

Speaker Change: At the same time, we have invested heavily in developing comprehensive user fairly tuning materials, but merchant support their compliance capabilities.

This effort and to enhance our supply chain quality, well, how can merchants lower compliance costs and expand your market rates.

Speaker Change: Alright, well I mean, since you can't tell us that much.

Speaker Change: So again talking about saga.

Speaker Change: The easy one.

Speaker Change: You don't you're sitting that is anyway more notice.

Speaker Change: Yeah.

Speaker Change: Well, yeah it sounds.

Speaker Change: Sounds like since that.

If I may and find out what's so you'll just on yeah, Steve I'm here in Kansas City.

Speaker Change: Yeah.

Speaker Change: So as you talked about Ken Tom Constantino said that.

Speaker Change: We also did see recognize that eating healthy pack, one ecosystem and achieving high quality vitamins is a gradual process, especially given the cultural skill of our classrooms. So we're committed to adult approach one site, providing strong support to high quality merchants well addressing issues.

Speaker Change: Real quick one.

Speaker Change: This way, we aim to create healthy and a sustainable ecosystem.

Speaker Change: So that was what time zone, when Peter and I have worked with us and at that time.

Speaker Change: That's why the finance anything that kind of answer.

Speaker Change: Hitachi they can cost, which was two times like I said that right.

Speaker Change: Great answer.

Speaker Change: For the one five times.

Speaker Change #100: Challenging excuses opinion.

Speaker Change #101: In this context, we will inevitably works with short term cost absolutely has mentioned.

Speaker Change #102: Our lending team is fully committed to investing heavily for the long term health of our platforms well.

Speaker Change #103: Well profit might vary or even with down in the next few quarters.

Speaker Change #103: It's all a waveform that's profitability will trend lower over the long term.

Speaker Change #104: Sorry for maybe 3000 was asking exactly the nine.

Speaker Change #105: And do you do with tissue some primary Italia.

Tani: And then tani.

Speaker Change #107: So you're talking it hasn't really been a pretty savvy in Campbell.

Speaker Change #107: Yeah, Hi, it's Angela and getting it cleaned hunting crunchy pieces, yet so don't know about that.

Speaker Change #108: Got it.

Speaker Change #108: Truly no yeah, clean and simple and it's a high yield.

Speaker Change #108: Don't you want to know not being cancelled kind of thing.

Speaker Change #109: As the largest platform for agricultural products in China. This quarter, we further advanced our agricultural strategy, we announced the science and technology courtyard project in mind body, and Shanghai 14, and also kicked off before smart agricultural competition in collaboration with top with.

Speaker Change #109: Search teams from around the world.

Speaker Change #109: We'll continue to increase investment in agricultural research to promote the commercial application with the research funding.

Jiazhen Zhao: [inaudible] At the same time, we have invested heavily in developing, comprehended user-friendly training materials for merchants to boost their compliance capabilities. This effort ends to enhance our supply chain quality while helping merchants lower compliance costs and expand their market range. We also deeply recognize that building a healthy platform ecosystem and achieving high-quality development is a gradual process, especially given the cultural scale of our platforms. So we are committed to a draw approach, one side providing strong support to high-quality merchants while addressing issues with low-quality ones.

Speaker Change #109: <unk> accelerated market adoption of high quality agricultural products.

Speaker Change #110: Well I mean, it's all been about wiping that Kennedy Wilson.

Speaker Change #110: That's exactly right yeah.

Speaker Change #110: Yeah.

Speaker Change #112: She says you know what those will do for you.

Speaker Change #112: Total event, because we're digging Jack I'm humbled here.

Speaker Change #112: Some of those countries seeking ventana.

I'm going to go down and then goes out. So this is the way to 40.

Speaker Change #113: Meanwhile, we also leverage our strength as a platform working with ecosystem partners to proactively take a more social responsibilities.

Speaker Change #113: We invested tens of meetings and reading sounds and subsidies to launch a sense total reading now.

This initiative provides direct discounts on thousands of good products, making knowledge more accessible to more people.

Speaker Change #114: Yeah. So in the last week talking to our partner and its only on yet.

Dan: And then Dan country, you can imagine that content.

Dan: So as you can.

Speaker Change #116: Well he said that he wants to go.

Speaker Change #116: This is colton, we hadn't gotten off on that until the movie out magazine.

Speaker Change #117: 'twenty 'twenty four is a critical year, a path towards high quality development well.

Jiazhen Zhao: So we are committed to a draw approach, one side providing strong support to high-quality merchants while addressing issues with low-quality ones. This way, we're in to create healthy and sustainable ecosystem. In this process, we will, in efforts with short-term costs, as Lei has mentioned, our 19 team is fully committed to investing heavily for the long-term help of our platforms. While profits might vary or even rebound in the next few quarters, it's unavoidable that profitability will turn lower over the long-term.

Speaker Change #118: Well folks on creating healthy and sustainable platform ecosystem and empowering our ecosystem partners with more platform resources and technical support.

Speaker Change #119: Together, we will lay a solid foundation towards the high close to many of our classrooms.

Speaker Change #120: Is that Oh, my God how.

Speaker Change #121: I gotcha.

Jiazhen Zhao: This way, we're in to create healthy and sustainable ecosystem. In this process, we will inevitably get short-term costs. As Lei has mentioned, our marketing team is fully committed to investing heavily for the long-term help of our platforms, where profits might vary or even rebound in the next few quarters. It's unavoidable that profitability will turn lower over the long-term.

Speaker Change #121: Next I will hand over to Jim Sheehan will provide an update on our financial performance for the second quarter.

Speaker Change #121: Okay.

Jim Sheehan: Thank you Jackie.

Jim Sheehan: Hello, everyone.

Let me walk you through our financial performance for the second quarter ended June 30.

Jim Sheehan: 2024.

Jim Sheehan: In terms of income statements and the second quarter.

Jim Sheehan: Our total revenues increased 86%, yes, again to RMB 97 1 billion.

Jim Sheehan: This was mainly driven by an increase in revenues from online marketing services and transaction services.

Jim Sheehan: Revenues from online marketing services, and others were RMB $49 1 billion this quarter.

Jim Sheehan: 29% from the same quarter of 2023.

Jim Sheehan: Revenues from transaction services for RMB 47, 9 billion.

Jim Sheehan: 234% from the same quarter last year.

Jim Sheehan: Yeah.

Jim Sheehan: In Q2.

Jim Sheehan: Topline brands slowed down significantly.

Jiazhen Zhao: As the largest platform for agricultural products in China, this quarter, with further advance our agricultural strategy, we launched the Science and Technology Quartier project in Yunnan Valley and Shanxi, for being and also picked off the first smart agricultural competition in collaboration with top research teams from around the world.

Jiazhen Zhao: As the largest platform for agricultural products in China, this quarter will further advance our agricultural products in China We will launch the Science and Technology Quartier project in Yunnan Valley and Shanxi for being and also picked off the first smart agricultural competition in collaboration with top research teams from around the world. We will continue to increase investments in agricultural research, to promote the commercial application with research findings and accelerate the multi-adoption of high-quality agricultural products.

Steve Katz: Steve Katz.

Speaker Change #124: So that slowed down and it's inevitable as a result of competition and global uncertainties.

Speaker Change #125: We aren't your costs and expenses.

Speaker Change #126: How much of the cost of revenue increased 8% from RMB 18, 7 billion in Q2 2023 to RMB $33 7 billion this quarter.

Jiazhen Zhao: We will continue to increase investments in agricultural research to promote the commercial application with research findings and accelerate the multi-adoption of high-quality agricultural products.

Meaning do you drink tracing fulfillment fees and payment processing fees.

Speaker Change #126: On a GAAP basis total operating expenses this quarter increased 48% to RMB $38 million.

Jiazhen Zhao: In this process, we will also increase the increase in agricultural research and accelerate the multi-adoption of high-quality agricultural products. Lin, Yao, we also leverage our strength as a platform working with ecosystem partners to proactively take on more social responsibilities. We invested tons of millions in reading sound and subsidies to launch the same total reading now. This initiative provides direct discounts on thousands of good products making knowledge more accessible to more people.

Speaker Change #126: From RMB 29 billion in the same would have 2023.

Speaker Change #126: On non-GAAP basis total operating expenses increased to RMB $28 4 billion this quarter.

Speaker Change #126: From RMB 19 billion in Q2 2020 feet.

Unknown Executive: [inaudible] Next, I will hand over to Jim. He will provide an update on our financial performance for the second quarter. Thank you, Ja Ja.

Speaker Change #127: Thank you Kim will continue to invest keep family to support high quality departments of our platforms.

Speaker Change #127: Our total non-GAAP operating expenses as a percentage of total revenues this quarter was 29% compared to 36% in fourth quarter last year.

Looking at specific expense items.

Speaker Change #127: non-GAAP sales and marketing expenses this quarter were RMB 25 4 billion.

Speaker Change #127: Up 54% versus the same quarter last year.

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

Speaker Change #127: Okay.

Speaker Change #127: Throughout Q2.

Speaker Change #127: We stepped up our promotional efforts to give back to consume less.

Speaker Change #127: And investing in marketing to promote our platforms.

Speaker Change #127: non-GAAP basis.

Speaker Change #127: Selling and marketing expenses as a percentage of our revenues this quarter was 26%.

Speaker Change #127: That's a 32% for same quarter last year.

Unknown Executive: Next, I will hand over to Jim. He will provide an update on financial performance for the second quarter. Thank you, Jiazhen.

Our non-GAAP general and administrative expenses were RMB 594 million.

Lei Chen: Our total revenue reached INB 97 billion, which represents a year-only increase of 86%.

Speaker Change #127: That's RMB 370 million and final quarter of 2023.

Lei Chen: However, we are seeing many new changes ahead.

Jun Liu: Hello, everyone. Let me walk you through our financial performance for the second quarter ended June 30, 2024. Renews from online marketing services and others will earn before 9.1 billion this quarter of 29% from the same quarter of 2023. Renews from transaction services will earn before 7.9 billion up 234% from the same quarter last year. In Q2, our total fine breads slowed down significantly, but it's a lot of stakeholders. So that slowed down as inevitable as a result of competition and global uncertainties.

Jim: Hello, everyone. Let me walk you through our financial performance for the second quarter ended June 30, 2024. In terms of income statements in the second quarter, our total revenues increased 86% year after year due to our 97.1 billion. This was mainly driven by an increase in revenues from online marketing services and transaction services. Renews from online marketing services and others will earn before $9.1 billion this quarter, up 29% from the same quarter of 2023.

Speaker Change #127: Our research and development expenses were RMB two point full by this quarter on a non-GAAP basis.

Speaker Change #128: 15%, yes, yes.

Speaker Change #128: And RMB, two 9 billion on a GAAP basis.

Speaker Change #129: It's critical that we maintain our long term focus and continue to invest in R&D to drive supply chain efficiency and customer experience.

Speaker Change #129: On a GAAP basis operating profit for the quarter was RMB $32 6 billion.

Speaker Change #129: Well, if it's RMB $12 7 billion in same quarter last year.

Jim: Renews from transaction services will earn before $7.9 billion, up 234% from the same quarter last year. [inaudible] Thank you, Jiazhen. On a non-gap basis, total operating expenses increased to RMB 28.4 billion this quarter. From RMB 19 billion in 2002 to 2023. In 2002, one continued to invest it firmly to support the high quality development of our platforms. Our total non-gap operating expenses as a percentage of total revenue of this quarter was 29%, compared to 36% in some quarter last year.

Speaker Change #129: non-GAAP operating profit was RMB 35 billion, but it is RMB 14 6 billion in the same quarter last year.

Speaker Change #129: non-GAAP operating profit margin was 36% this quarter.

Lei Chen: From changing consumer demand, intensifying competition and uncertainties in global environment.

Speaker Change #129: <unk> to be 28% for same quarter last year.

Speaker Change #129: Net income attributed much ordinary shareholders was RMB, two 2 billion for the quarter.

Jun Liu: We launch your course 10 expenses. Our total course of revenues increased 80% from RMB 18.7 billion in Q2 2023 to RMB 33.7 billion this quarter. Meaning due to increasing fulfillment fees and payment processing fees. From a gap basis, total operating expenses that's causing increased 48% to RMB 30.8 billion. From RMB 20.9 billion in the same quarter of 2023. On a known gap basis, total operating expenses increased to RMB 28.4 billion this quarter.

Speaker Change #129: Compelled to RMB 13, 1 billion in the same quarter last year.

And it's a D. S was RMB 23, 14 and diluted earnings per ads was RMB 21 61.

Basic earnings per ads of RMB, 960 fold and diluted earnings per ads, just RMB nine and its Tim Cortes 2023.

Speaker Change #129: Okay.

Speaker Change #129: non-GAAP net income attributable to ordinary shareholders was RMB $34 4 billion.

That was RMB 15, 3 billion innocent port last year.

Speaker Change #129: non-GAAP diluted earnings per ads was RMB 23.

Speaker Change #129: 24.

Jun Liu: From RMB 19 billion in 2002 to 2023. Thank you, too, we'll continue to invest it firmly to support the high-quality development of our platforms. Our total known gap operating expenses as a percentage of total revenue of this quarter was 29%, compared to 36% in some quarter last year. Looking just with this expense items, our known gap sales in the market in the expenses of this quarter will RMB 25.4 billion. Up 54% versus the same quarter last year.

Speaker Change #129: Does this RMB 10 47 in the same quarter of 2023.

Lei Chen: As a result, we will enter a new phase of high-quality development that calls for increase in residence.

Speaker Change #129: I noted last quarter, our business does not follow a linear path.

And of course, the bullets in the last few quarters does not represent future.

Speaker Change #129: Looking at cash, we reinvest to support a healthy ecosystem that encourage its high quality elections.

Speaker Change #129: Our profitability makes it a lot changed in a short time.

Jim: Looking just with this expense items, our non-gap sales in the market expenses this quarter will earn RMB 25.4 billion. Up 54% thus is the same quarter last year. Through our Q2, we step up all of our promotion efforts to give back to consumers and invest in marketing to promote our platforms. From non-gap basis, our sales in the market expenses as a percentage of our revenue of this quarter was 26%. Those are 32% but some quarter last year.

Speaker Change #129: We are gradually lowering and a long run.

Speaker Change #129: This inevitable actually focused on the long term high quality development of our platforms.

Speaker Change #130: That completes the income statements.

Jun Liu: Through our Q2, we step up all of our promotion efforts to give back to consumers and invest in marketing to promote our platforms. From the young gap basis, our sales in the market in the expenses as a percentage of our revenue of this quarter was 26%, versus 32% for the same quarter last year. Our known gap general and administrative expenses will RMB 594 million, versus RMB 370 million in the quarter of 2023.

Speaker Change #130: Now, let me move on to free cash flow.

Speaker Change #130: On that cash generated from operating activities was RMB $43 8 billion.

Speaker Change #130: Compared with RMB $23 4 billion in the same quarter last year.

As of June <unk> 2024, we have RMB $284 9 million in cash cash equivalents. Unfortunately last months.

Jim: Our non-gap general and administrative expenses will earn RMB 5.94 million. Those are RMB 370 million in some quarter of 2023. Our research and development expenses will earn RMB 2.4 billion on a non-gap basis. Up 15% year-of-year and RMB 2.9 billion on a gap basis. Next critical that we maintain our long-term focus and continue to invest in RMB to drive supply chain efficiency and customer experience. On a gap basis, operating profit for a quarter was RMB 32.6 billion versus RMB 12.7 billion in some quarter last year.

Speaker Change #130: This concludes my prepared remarks.

Ricky: Thank you Ricky next.

Ricky: Next we will move on to the Q&A session.

Jun Liu: Our research and development expenses will RMB 2.4 billion on a known gap basis. Up 15% year-to-year, and RMB 2.9 billion on a gap basis. As critical that we maintain our long-term focus and continue to invest in RMD to drive supply chain efficiency and customer experience. On a gap basis, operating profit for the quarter was RMB 32.6 billion, versus RMB 12.7 billion in the same quarter last year. The young gap operating profit was RMB 35 billion, versus RMB 14.6 billion in the same quarter last year.

Ricky: <unk> Q&A session late.

Speaker Change #132: And we'll take questions from analysts on the line.

Speaker Change #133: We would take a maximum of two questions from each analyst.

Speaker Change #133: John will answer your questions in Chinese I will help trying to pay for convenience purpose.

Speaker Change #133: Operator, we're open for questions.

Speaker Change #134: Thank you ladies and gentlemen, we will now begin the question and answer session.

Speaker Change #135: We wish to ask a question. Please press star one on your telephone and wait and see a name to be announced if you wish to cancel your request. Please press Star then two.

Speaker Change #136: Participants are requested to restrict the number of questions to two at each time. Your first question comes from Joyce Ju from Bank of America. Please go ahead.

Jim: The non-gap operating profit was RMB 35 billion versus RMB 14.6 billion in some quarter last year. The non-gap operating profit margin was 36% this quarter, compelled to be 28% for some quarter last year. Nothing come my typical to ordinary shareholders with RMB 32 billion for the quarter, compelled to RMB 13.1 billion in the same quarter last year. The rate annual per adias was RMB 23.14 and the lowly annual per adias was RMB 21.61.

Speaker Change #137: Ladies and gentlemen, Jim IHOP judicial with ex U S. D go which sounds when he comes in is that that wasn't the case, but could you send out past the banking tax Oh My God. He tells me that what you see.

Jun Liu: The young gap operating profit margin was 36% this quarter, compared to with 28% for the same quarter last year. Nothing can contribute to ordinary shareholders, which RMB 32 billion for the quarter, compared to RMB 13.1 billion in the same quarter last year. The rate annual per adias was RMB 23.14, and the lowly annual per adias was RMB 21.61, versus the basic annual per adias of RMB 9.64, and the lowly annual per adias of RMB 9 in the same quarter of 2023.

Speaker Change #138: Now you'll know that you said that it's also a great school cluster count and it also goes to the new fit here.

Speaker Change #138: Number two will change the leverage you should go with it.

Speaker Change #138: Yeah, it should be flat.

But sometimes it does help them be up on PD.

Speaker Change #139: I don't get that don't quite all of them, yet and I'm Gonna math I'm glad. He tells you that a copy to you. So are you male Waco, Apache, though kind of it seems like that.

Speaker Change #139: Yeah I'll go with events you should at least I thought why don't you tell us I am bound on what we thought would take a Q2 I'd be outdoor going back from Washington, Dan Shaw Ultra sound out of which would come from.

Jim: Versus basic earnings per adias of RMB 9.64 and the lowly annual per adias of RMB 9 in some quarter of 2023. The non-gap net income attributable to ordinary shareholders was RMB 34.4 billion. Versus RMB 15.3 billion in some quarter last year. Longyap, Delute Annance, per ADS, was R&B 23.24, versus R&B 10.47, in the same quarter of 2023. Let me note it, last quarter, our business does not follow a nanny at cost, and the profitability in the large few quarters does not represent future. Looking at that, we re-invest terminally to support a healthy ecosystem that encourages high quality margins. Our profitability makes large rates in the short term, while we are gradually trying to lower and alone run.

Speaker Change #140: No one knows when he comes in for things that they think are some dash them head on.

Jun Liu: No gaps, nothing can contribute to ordinary shareholders was RMB 34.4 billion, versus RMB 15.3 billion in the same quarter last year. Longgak Delute Annance, per ADS, was R&B 23.24, versus R&B 10.47 in the same quarter of 2023. Let me note it, last quarter, our business does not follow a nanny at cost, and the profitability in the large few quarters does not represent future. Looking at that, we re-invest terminally to support a healthy ecosystem that encourages high-quality merchants. Our profitability makes fluctuate in the short term, while we are gradually trying to lower and along run.

Speaker Change #140: Hi.

Speaker Change #140: Got you got you had thought no one would like.

Speaker Change #140: So beyond that yet.

Speaker Change #141: I will translate for myself.

Speaker Change #142: I have two questions. My first question and we have seen Dorothy I'll say growth, but think about past quarter.

Pet remark management mentioned that wont be increased investment at a possibility fluctuations caused by the competition.

Lei Chen: Our profitability will affect it as a result.

Speaker Change #143: <unk> had months yeah, how you assess the profit class in the future. In addition in terms of shareholder return.

Lei Chen: Since the beginning of this year, we are seeing that consumer preferences have become more diverse. On one hand, consumers are increasingly choosing experience-based consumption over material purchases.

If management have any plan for share buyback or dividend payout.

My second question is in the prepared remark, we noticed that management emphasize a lot on the merchant ecosystem and the merchant supporting policy could.

Lei Chen: On the other hand, there is a growing emphasis on rational consumption. Consumers are making more thoughtful decisions to balance quality and value. In response, we have collaborated with high-quality brands and manufacturers to create a customized product that catered to these diverse demands.

Speaker Change #144: Could you please elaborate a bit on your interest.

Lei Chen: This approach has not only prepared but in new brands to success.

Jun Liu: This inevitable as we focus on the long term high-quality development of our platforms. That concludes the income statements.

Jim: This inevitable as we focus on the long term high quality development of our platforms. That concludes the income statements.

Speaker Change #145: Standing on the housing merchant equals the ecosystem.

Speaker Change #146: How do you read for you is how to understand it and why is this well called the focus of the platform in the next stage. Thanks a lot.

Lei Chen: It also revived the popularity of many established brands.

Jun Liu: Now, let me move on to cash flow. Our net cash generated from operating activities was R&B 43.8 billion, compared with R&B 23.4 billion in the same quarter last year. As of June 30, 2024, we have R&B 284.9 billion in cash, cash at columns, and short term investments. Thank you, this concludes my prepared remarks.

Jim: Now let me move on to cash flow. Our net cash generated from operating activities was R&B 43.8 billion, compared with R&B 23.4 billion in the same quarter last year. That of June 30, 2024, we have R&B 284.9 billion in cash, cash at columns and short term investments.

Lei Chen: Since this is just one example of how digital technology and manufacturing can come together to create new opportunities.

Speaker Change #147: It's always nice when he told me he won't leave.

I saw the Eagle.

Speaker Change #147: Hi, This is Charlie let me take your first question.

Speaker Change #147: Yeah.

Speaker Change #148: Oh of course, you don't see the templates are a challenge at all.

Speaker Change #148: Okay.

Jim: Thank you, this concludes my prepared remarks. Thank you, James.

Jun Liu: Thank you, this concludes my prepared remarks. Thank you, Jun.

Speaker Change #148: Thank you all.

Speaker Change #150: She told me that don't you.

C J: C J.

Speaker Change #151: People put the mutual Hitachi Lindsey.

Unknown Executive: Thank you, Jun.

Unknown Executive: Next, we will move on to the Q&A session. In today's Q&A session, Lei, Jiajun, and Jun, will take questions from analysts online. We will take a maximum of two questions from each analyst. Lei and Jiajun will answer questions in Chinese, and we will help translate for convenience purposes. Operator, we are open for questions. 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 telephiring and wait for your name to be announced. If you wish to cancel your request, please press star then two. Participants are requested to restrict the number of questions to two at each time.

Unknown Executive: Next, we will move on to the Q&A session. In today's Q&A session, Lei, Jiajian, and Jing will take questions from analysts online. We will take a maximum of two questions from each analyst. Lei and Jiajian will answer questions in Chinese, and we will help translate for convenience purposes. Operator, we are open for questions. 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 the telephone and wait for your name to be announced. If you wish to cancel your request, please press star then two. Participants are requested to restrict the number of questions to two at each time.

Joyce Jew: Your first question comes from Joyce Jew from Bank of America. Please go ahead.

Speaker Change #152: We have communicated on a number of locations that are public wells in the past few quarters.

Speaker Change #153: Should not be used as a long term guidance.

Speaker Change #154: It was the result of the mismatch between the business investment and financial reporting cycles.

Speaker Change #154: And if so why.

Speaker Change #155: Does that give you that season. So you see at what point do you use.

Speaker Change #154: So the use here.

Speaker Change #154: It's Ian Zaffino, I only want to deal with.

Speaker Change #156: Got it.

Speaker Change #156: So that's an example of that we.

Speaker Change #156: That's all.

Joyce Zhu: Your first question comes from Joyce Zhu from Bank of America. Please go ahead. [inaudible] Hello, I am Chen Lei.

Speaker Change #156: In addition.

Speaker Change #156: <unk> business is currently facing intense competition.

Joyce Jew: Lei, Jiajian, Jing, welcome to the Q&A session. First, I would like to thank you for your hard work. This is a very good background. Just now, I have mentioned a lot of investment and market factors in the future. There will be a lot of activities in the company. Can you share this experience with us? How do we get to the end?

Speaker Change #156: Shifting excess external factors.

Speaker Change #156: Which will inevitably bring fluctuations to our business and also slow down our top line growth.

Speaker Change #156: Yeah.

Speaker Change #157: The balance you know well this will you do anything that's why you see in golf and a father. Thank you thought.

Speaker Change #157: So now you're seeing thank you.

Tom: Hi, Tom.

Speaker Change #159: Kidney function.

Speaker Change #159: Okay.

Absolutely.

Speaker Change #160: So if he has some kind of course, if your father.

I just thought I'd give you may not want to wait.

Speaker Change #161: I thought you told me.

Speaker Change #162: He also about job.

Speaker Change #163: Right now what it means.

Speaker Change #164: I believe were about HIFU with little to deal with.

Speaker Change #165: Starting on the top on the shelves of competing with them.

Chen Lei: [inaudible] Hello, I'm Chen Lei. I'm going to answer your first question Let me take your first question We have communicated on a number of locations that the public will be in the past few It should now be used as a long-term guidance and it was the result of the mismatch between the business investment and financial reporting cycles In addition, our business is currently facing intense competition and shifting external factors, which will inevitably bring fluctuations to our business and also slow down our top-down growth[inaudible] and we have developed a long-term development of our business and we have developed a long-term development of our business So, in the past few years, we think that the company has been in the same phase as the company's business.

Speaker Change #166: We are now introducing a new phase of steady transformation towards high quality development.

Speaker Change #166: And we need to invest patiently in the platforms long term health.

And to support a sustainable development of our pipeline system ecosystem.

Speaker Change #166: We'll invest substantial resources over the next 12 months to support high quality merchants.

Speaker Change #166: And looking at our profitability may fluctuate in the short run.

Speaker Change #167: Directionally how it works.

That's what you're into a downward trend.

Speaker Change #167: Yes.

Speaker Change #168: What does he found that the local banking.

Speaker Change #168: So of course, you have on 'twenty.

Speaker Change #168: He goes to the ankle with you that yes sure adopting.

Speaker Change #170: The document posted on Hain has in China.

Speaker Change #170: But how should I call you suddenly go through GM, Shanghai Shenzhen Suzhou.

Speaker Change #170: That's required.

Speaker Change #171: He said that he would cause.

Speaker Change #171: What are you sure.

Speaker Change #172: Hey al.

Nikko: <unk> Nikko.

Nikko: Cool.

Speaker Change #174: And empowering and supporting merchant is crucial to building a high quality supply chain.

Speaker Change #174: And also creating a robust platform ecosystem.

Speaker Change #174: Over the long run this is going to start off the virtuous cycle for the platform and therefore, we will remain committed to patient investments, even though short term profits will be affected.

Lei Chen: I will answer your first question. Hi, this is Chen Lei. Let me take your first question. We have communicated on a number of locations that a public world in the past few quarters should not be used as long-term guidance. And it was the result of the mismatch between the business investment and financial reporting cycles. In addition, our business is currently facing intense competition and shifting its external factors, which will inevitably bring fluctuations to our business and also slow down our top-down growth.

Speaker Change #175: I'm not giving you both on the amount of inventory that bounce here.

Speaker Change #176: Actually he told US he had one.

Speaker Change #177: Closed the year with no debt towards yet.

Speaker Change #178: The teams are.

Speaker Change #179: And things like that.

Speaker Change #180: Thank you.

Speaker Change #180: Now while you do see how their bodies.

Speaker Change #180: Okay.

Speaker Change #180: <unk> I mean, if we go with a full home so bullish about.

Speaker Change #181: I thought one wireless.

Speaker Change #181: Yes.

Speaker Change #181: I'm going to be all tissue.

Speaker Change #181: In terms of shareholder return.

Speaker Change #182: Company is still in the investments the investment phase and we are facing intense competition on different fronts.

Speaker Change #182: I also understand there is some external factors.

And therefore, our management team and I unanimously believed.

Speaker Change #182: It is not an appropriate time for share purchase for share repurchases or dividends.

Speaker Change #182: And in the foreseeable years that had a we also do not see such a neat. Thank you.

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

And how does that then.

Speaker Change #183: What I can tell you that last time, that's another MTR.

Josh: Hi, This is Josh.

Speaker Change #185: Let me take your question on merchant ecosystem.

Speaker Change #186: Well one of them.

Speaker Change #186: So those are the same guys on the whole neither an easy to use.

Speaker Change #187: So chi.

Joshua: I'm, Joshua I'm, calling calling for harsh Africa, that's only out for that.

Our platform is a mutually dependent community as merchants consumers and our operation teams.

Joshua: Merchant, our key partners in our joint efforts to serve consumers.

Joshua: So it doesn't even under the high end it seems that in countries like if they were and because it's such a pronounced with what ive seen in also.

Guy: A question that's already been Guy.

So I don't think so.

Speaker Change #190: If I'm here now with me out you end up on clients I mean, it's predominantly food.

Speaker Change #190: So Jay you said somehow.

Speaker Change #190: I haven't done it yet Steve.

Lei Chen: We are now introducing a new phase of steady transformation towards high-quality development, and we need to invest patiently in the platforms' long-term health. And to support sustainable development of our platform ecosystem, we will invest substantial resources over the next 12 months to support high-quality merchants. And looking ahead, our profitability may fluctuate in the short run, but directionally, it will gradually enter a downward trend. And empowering and supporting merchants is crucial to building our high-quality supply chain and also creating a robust platform ecosystem.

Speaker Change #190: If I'm in L. A and that's what I was holding on to it.

Speaker Change #191: So again this doesn't mean that goes without saying that will go down because of the household.

Speaker Change #191: I, sometimes I say my father.

Speaker Change #193: The increased competition in our industry brings new demands on our community in this process, we feel a strong sense of responsibility.

Speaker Change #191:

Speaker Change #194: On one side, we must ensure strict oversight protocols each presents the substandard.

Speaker Change #194: And protect consumer right.

Speaker Change #194: On the other side it must ensure friendly so that so that dedicated high quality merchants to earn meaningful reward which is essential for the healthy development of the travel ecosystem.

Speaker Change #195: When a dog or a synthetic enzyme.

Speaker Change #196: I can tell you again.

Speaker Change #197: <unk> got enough either way.

So now, let's turn to the city Councilwoman do you have that final in Korea.

Speaker Change #198: So like what do you tell them that you're finding are down in total by eats again.

Again.

Speaker Change #199: Saudi to flex it feels hunting cecil's, having that he does he or she is assigned out like that.

Speaker Change #200: Welcome to the genuine users.

Lei Chen: Over the long run, this will start off a virtuous cycle for the platform. And therefore, we will remain committed to patient investments, even though short-term profits will be affected. [inaudible] We have no choice but to firmly transition towards high quality development. Therefore, we will adopt the mandatory policy to provide strong support to high quality merchants while tempering low quality ones. On the support side, we will strongly support merchants with product and technology innovation capabilities.

Speaker Change #199: Right.

Speaker Change #201: Yeah, no one easy way than anybody.

Thanks, John.

Speaker Change #202: Gotcha Gotcha.

Speaker Change #202: But at the same time television.

Speaker Change #203: To achieve sellers in the ecosystem, we have no choice, but to firmly transition towards high quality development.

Lei Chen: This will be the key focus for our high-quality development going forward.

Speaker Change #204: Therefore, we will adopt a necessary policies to provide strong support to high quality merchants, well 10, calling low quantity of one.

Chen Lei: The company has been in the same phase as the company's economic and foreign environment. Therefore, we have been in the same position as others. In the past, we have been in the same position as the company's business. In terms of shareholder returns, the company is still in the investment phase, and we are facing intense competition on different fronts and also uncertainties from external factors. Therefore, our management team and I unanimously believe that it is not an appropriate time for share repurchases or dividends. In the foreseeable years, we also do not see such a need.

Speaker Change #204: On the supply side, we were strongly support merchants with product and technology innovation capabilities.

Speaker Change #204: Significantly reduce transaction fees for this high quality merchants.

Speaker Change #204: Expected amount of some data RMB in the following years.

Continue to in house incentive for merchants to drive our high quality development of ecosystem.

Yes.

Speaker Change #205: I mean, if I'm in a downturn.

Speaker Change #206: Kindred at DCP tie all the signs out of capacity.

Speaker Change #207: Can you provide that will be sent out.

Speaker Change #208: So you don't have to convince.

Speaker Change #208: Steve or you're constantly going at it.

Speaker Change #208: Okay now what does that mean that you didn't do you think that you know you know until the.

Speaker Change #208: So I know you will do for US I mean second idea okay.

Speaker Change #208: And here at home what he does all that younger up our lost time incident.

Speaker Change #209: Okay users on Yahoo, and docking hardware.

Speaker Change #210: On the other side, we will further imports strong governance of our platform and merchants.

Unknown Executive: Thank you.

Jiazhen Zhao: Hi, this is Zhao Zhajun. Let me take your question on merchant ecosystem. Our platform is the mutual independent community of merchants, consumers, and our operation teams. Merchants are our key partners in our joint effort to serve consumers. In the past few years, we have been in the same position as the company's business. In the past, we have been in the same position as the company's business. The increased competition in our industry brings new demands on our community.

Speaker Change #210: This includes <unk>.

Speaker Change #211: Finding and removing unlawful merchants from our platforms to strengthen our supply chain.

Speaker Change #211: As of now we have already started a new round of investments in operations and technology to optimize the merchant onboarding and product listing purposes.

Speaker Change #211: Use advanced technology to ensure product quality control and create a better environment for our high quality merchants.

Speaker Change #211: Yes.

Speaker Change #212: Well many users on doubtful that it goes on.

Speaker Change #213: Okay away from that is that means that cause on yields at Etame Russell.

Speaker Change #214: So I don't know, where it finished sometime kind of Amazon and Sony.

Speaker Change #214: That's how you get to kind of Q1.

Speaker Change #215: All of them into the surgery time, She's got her father and signed yet.

Speaker Change #216: We grow together with our high quality merchants Hungary working.

Speaker Change #217: Working together to offer consumers high quality products and services.

Speaker Change #218: Consumers can intensely new growth opportunities to the ecosystem, creating a virtuous cycle, which is the key to the long term healthy development of our communities.

Jiazhen Zhao: In this process, we feel a strong sense of responsibility as a platform. On one side, we must ensure strict oversight of product quality to prevent sub-dender goods and protect consumer rights. On the other side, we must ensure fairness so that dedicated high quality merchants can earn meaningful rewards. Which is essential for the healthy development of platform ecosystem? To achieve balance in the ecosystem. We have no choice but to firmly transition towards high quality development.

Speaker Change #219: Well, that's kind of standouts in fact, I was gonna find out like a mobile.

Speaker Change #220: And I'm almost.

Speaker Change #221: Sounds good. Thank those who are considered held rule comes out telecom cause either connecting back.

Speaker Change #222: To achieve the goal of high quality developments at the merchant ecosystem. Our management has reached the consensus to firmly commit to long term investments and create a healthy sustainable platform ecosystem. Thank you all.

Speaker Change #223: Operator, let's move on to the next kind of it sounded like.

Speaker Change #224: Thank you. The next question is from Yang by from C. ICC. Please go ahead.

Speaker Change #224: Okay.

Lindsay: Oh, no I'm Lindsay.

Lindsay: Sure.

Yes.

Speaker Change #226: Kind of.

Speaker Change #226: Consequently, it will guarantee a corridor.

Tony: So thank you Tony could you kind of thought that goes into Chicago.

Speaker Change #227: Oh go ahead.

Through the downturn.

Sanjay: I know how you win I know Sanjay you can push out someday timna.

Well so this is jose.

Jiazhen Zhao: Therefore, we will adopt a mandatory policy to provide strong support to high quality merchants, while tempering low quality ones. On the support side, we will strongly support merchants with product and technology innovation capabilities. We will significantly reduce transaction fees for this high quality merchant with an expected amount of time dating R&B in the following years. We will continue to enhance incentive for merchants to drive our high quality development of ecosystem. On the other side, we will further import strong governance of our platform and merchants.

Sanjay: Countries.

Sanjay: Net income.

Sanjay: And then they come in and talk about that.

Speaker Change #230: Doug Linde T shirt Bronco.

Speaker Change #230: Glenn how about don't yeah.

Speaker Change #230: Okay.

Yeah sure.

Speaker Change #230: Thanks.

Lei Chen: We will significantly reduce transaction fees for this high quality merchants with an expected amount of time dating R&B in the following years. We will continue to enhance incentive for merchants to drive our high quality development of eco-systems. On the other side, we will further import strong governance of our platform and merchants. This includes identifying and removing unlawful merchants from our platform to strengthen our support chain. As of now, we have already started a new realm investment in operations and technology to optimize the merchant onboarding and product listing processes.

Speaker Change #230: Jonathan.

Speaker Change #231: Uh huh.

So don't get closer mobile.

Speaker Change #231: So you're going to ship.

Speaker Change #232: But I think that Oh, Thank you management I have two question the first one.

Speaker Change #233: We have observed that the growth of your global business remains strong, but some external data that suggested that.

Speaker Change #234: Growth rates I know, you're mad men in certain markets are slowing down.

Speaker Change #234: Mark We also noted that the company take a relatively cautious approach towards the future development of our global business.

Mark: We're constantly trying to manage some risks proactively could.

Speaker Change #236: <unk> management elaborate on your thinking in this breakdown.

That's in line with.

Speaker Change #237: So that's it.

Speaker Change #238: Oh competitive environment is quite intense has caused the impact on the company's growth.

Jiazhen Zhao: This includes identifying and removing unlawful merchants from our platform to strengthen our support chain. As of now, we have already started a new realm investment in operations and technology to optimize the merchant onboarding and product listing processes. Use advanced nut technology to ensure strict product quality control and create a better environment for our high quality merchants. We grow together with our high quality merchant partners, working together to offer consumers high quality products and services. The consumers can intern three new growth opportunities to the ecosystem, creating a virtual cycle, which is the key to the long-term healthy development of our communities.

Gotcha competitive environments, how real is that company adjust the York immerse them in such a priority and how does the management think about to your organization.

Speaker Change #238: Yeah.

Lei Chen: Use advanced nut technology to ensure strict product quality control and create a better environment for our high quality merchants. We grow together with our high quality merchant partners, working together to offer consumers high quality products and services. The consumers can intern three new growth opportunities to the eco-system, creating a virtual cycle, which is the key to the long-term healthy development of our communities.

Speaker Change #238: Okay.

Daniel: Hello, Daniel.

Daniel: So we're seeing all these ICI youll Guan.

Daniel: Thank you.

Speaker Change #240: Hi, This is <unk>, let me take your question on the global business.

Speaker Change #240: Change about Michigan.

Speaker Change #241: Is that right.

Doug: Hi, Doug.

Speaker Change #243: Madame Chair.

Midrange of our yield even though she's a little this is Tom.

Speaker Change #244: No no no that you told us what controlling.

Speaker Change #244: Locally the way.

Speaker Change #245: Two options.

Speaker Change #246: So what did you guys gain when Tom was talking about.

Speaker Change #246: See you in two short years untrue function the whole pending.

Speaker Change #247: Our global business is still evolving and we are actively exploring new opportunities.

Unknown Executive: To achieve the goal of high quality development of the merchant eco-systems, our management partner, let's move on to the next panelist on the line.

Unknown Executive: To achieve the goal of high quality development of the merchant eco-systems, our management partner, let's move on to the next panelist on the line. Thank you.

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

Speaker Change #248: Currently our global business has entered over 70 markets and during this growth we have always prioritized compliance and see it as the foundation for our development.

And over the past few quarters, we have invested significant resources in.

Unknown Executive: Thank you all.

Unknown Executive: Operator, let's move on to the next panelist on the line. Thank you.

Speaker Change #248: Building, a safe shopping environment.

Ying Bai: Thank you. The next question is from Ying Bai from CICC. Please go ahead. Thank you, management. I have two questions. The first one, we have observed that the growth of your global business remains strong. Some external data suggests that the growth rates and the investment in certain markets are slowing down. Ying Bai prepared remark. We also notice that the company takes a relatively cautious approach towards the future development of your global business.

Ying Bai: The next question is from Ying Bai from CICC. Please go ahead. Thank you, management.

Wang Bai: The next question is from Wang Bai from CIC. Please go ahead. I have two questions. The first one we have observed is the growth of your global business remains strong. Some external data suggests that the growth rates and the investment in certain markets are slowing down. We also notice that the company takes a relatively cautious approach towards the future development of your global business. The other company trying to manage some risks proactively because the management plays the leverage on your thinking in this regard.

Speaker Change #249: Almost a year with a father.

Speaker Change #249: So Paul why it ended up being a bottleneck alstom.

Speaker Change #250: Oh <unk> Philadelphia.

Speaker Change #251: That'd be a dual trading.

Speaker Change #250: <unk> seen a shift towards India.

Speaker Change #250: How are you supposed to do it in.

Speaker Change #250: In EMEA that is R&D.

Speaker Change #250: Doug.

Speaker Change #252: So we get behind it from Treasury.

Speaker Change #253: Any other.

Speaker Change #253: As our business develops we have noticed the changes.

Speaker Change #254: I don't know environment are accelerating.

Speaker Change #254: Our operations are increasingly affected by some non business sectors.

Speaker Change #254: And we are seeing a significant increasing uncertainty.

Speaker Change #254: And Meanwhile, competition is a constant theme e-commerce industry and <unk>.

He is expected to intensify.

Speaker Change #254: Yeah.

Speaker Change #255: Amazon Tien Tsin, Hi, Anthony David Smith.

Ying Bai: I have two questions. The first one, we have observed that the growth of your global business remains strong. Some external data suggests that the growth rates and the investment in certain markets are slowing down. Ying Bai prepared remark. We also notice that the company takes a relatively cautious approach towards the future development of your global business. These are companies trying to manage some risks proactively. Could the management please elaborate on your thinking in this regard.

Speaker Change #255: Each year and.

Speaker Change #255: Equally detail.

Speaker Change #255: Example, convenient.

Got it.

Hey, Bob.

Speaker Change #256: And the change of our yields are pushing since you online strategy, it's all visa Philadelphia can choose from.

Speaker Change #256: And I was just lucky.

Speaker Change #256: Got you.

Speaker Change #256: Okay.

Speaker Change #256: At this moment such intense competition.

Ying Bai: These are companies trying to manage some risks proactively. Could the management please elaborate on your thinking in this regard. The second one is we saw that the overall competitive environment is quite intense. Has this caused an impact on the company's growth in actual competitive environments? How will the company adjust your investment for priority and how does the management think about your position? Thank you.

Speaker Change #256: Combined with the impact of external factors.

Speaker Change #258: Inevitably lead to disruption on our global business.

Wang Bai: The second one is we saw that the overall competitive environment is quite intense. Has this caused any impact on the company's growth in actual competitive environments? How will the company adjust your investment to priorities and how does the management think about your position? Thank you. Hi, this is Lei. Let me take your question on the global business. Our global business is still evolving and we are actively exploring new opportunities. Currently, our global business has entered over 70 markets and during this growth, we have already prioritized compliance and see it as the foundation for our development.

Lei Chen: The second one is we saw that the overall competitive environment is quite intense. Has this caused an impact on the company's growth in actual competitive environments? How will the company adjust your investment for priority and how does the management think about your position? Thank you.

But nevertheless, we remain committed to our vision of allowing more consumers worldwide.

Speaker Change #258: Enjoy the benefits of the digital economy, and this has not changed.

Speaker Change #259: So let me address how that funding will begin an alkylate trying to.

Speaker Change #260: So you see that cycle.

Speaker Change #261: Well hopefully maybe.

Speaker Change #262: So as you look who you work with.

Speaker Change #261: Hello.

Vishal: So vishal Caesar piece would be onshore.

Michelle: Michelle and changeover.

D.C.: D C.

Lei Chen: Hi, this is Lei, let me take your question on the global business[inaudible] are still in a short period of time, we are still in a short period And in response to the complex environment, we will focus on our core strength and continue to improve our capabilities in supply chain, customer services, and compliance. To better meet the expectations of consumers around the world. Also achieve high quality development in our global business. Thank you.

D.C.: And.

Speaker Change #266: In response to the contact environment, we will focus on our core strength and continuously improve our capabilities in supply chain customer services and compliance.

Speaker Change #267: To better meet the expectations of consumers around the world and also achieve a high quality development and our global business. Thank you.

Speaker Change #268: Our new house at him right now.

Jasmine: I play that I tell you I think that event yeah, Hi, This is jasmine.

Speaker Change #270: Let me take your question on competition.

Speaker Change #271: And that's what he did because people know they need it and things of that but on a country there.

Speaker Change #272: I think that until it because it gives a halo to xiaomi on the grid as a book opinions.

Speaker Change #272: So I'd say on that together.

Speaker Change #273: Well I'm looking at something that kind of with all of them.

That'd be look unfortunately, I need to know when they feel that this will not do it can't do the catwalk until you're swimming golf olefins out a bunch of it because we see them.

Wang Bai: Over the past few quarters, we have invested significant resources in building a safe shopping environment. As our business develops, we have noticed that changes in the external environment are accelerating and our operations are increasingly affected by some non-business factors and we are seeing a significant increase in uncertainty. Meanwhile, competition is a constant thing in the economy industry and it is expected to intensify. At this moment, such intense competition, combined with the impact of external factors, will inevitably lead to disruptions on our global business. Nevertheless, we remain committed to our vision of allowing more consumers worldwide to enjoy the benefits of the digital economy and this has not changed.

Speaker Change #274: Over the past few quarters. The competition has been intensifying, which is natural to the e-commerce sector.

Speaker Change #275: It's such a competitive environment, our revenue growth may slow down for instance, in the second quarter, our revenue growth decline, indicating the high revenue growth is not sustainable.

Speaker Change #276: Well done cannot cover it is frequently a shootout Antonio.

Speaker Change #277: Because again I mean, I know there's activity out there and it's harder and I see that if somebody does have a future.

Speaker Change #277: But because of the night, though of course it is a good figure how silly.

Speaker Change #278: For the man, who you haven't got a feel for what I thought I didn't see it.

Speaker Change #278: Cause I say on a well maintained.

So we didn't even go faster, that's losing talked enough about the mentality.

Speaker Change #279: Conversely, consumer demand is becoming more diversified and E. Commerce platforms are actively adjusting their strategies to meet these evolving needs.

Speaker Change #280: Each platform has its own strengths and the competitive edge and accompanied substantial resources to kitchen to consumer demands.

Speaker Change #281: At this moment, we need to focus on our core strength and continue on our path to high quality bonds.

Speaker Change #282: So it is I mean that is going to handle any answer for why we haven't done a turnkey.

Speaker Change #283: Oh wait them out until we have it.

Speaker Change #284: It's really a lot of fetal globin.

Speaker Change #285: Sounds like you do on the quicker you can bet that.

Galena has done what are you kind of thing.

Speaker Change #286: The woman.

Speaker Change #287: So if you say you got a new country.

Speaker Change #288: So of course, I don't I mean I think.

Speaker Change #289: How did it impact.

Speaker Change #290: It's only down without any Sanjay I think that's a modality.

Speaker Change #291: So e-commerce platforms and robust supply chain is essential to providing services to consumers.

To meet the diversified needs of consumers.

Speaker Change #291: We remain focused on the fundamentals and strive for innovation in the supply chain.

Speaker Change #291: In the second quarter, our teams continued to bring agricultural initiatives two major production regions, how can local agricultural food.

Speaker Change #291: Their brand and empowering small and medium sized agricultural merchant <unk>.

Speaker Change #291: <unk> marketing efforts.

Speaker Change #292: So no nothing Salina El Nino team, where they can sit out here at a time.

Good afternoon.

Speaker Change #293: Before you go to the north or another times out there Mohit 17, Nee and Walnut Creek, a couple of things at our company.

Chen Lei: [inaudible] We will also achieve high quality development in our global business. Thank you. Hi, this is Zhao Dagen. Let me take your question on competition. Over the past three quarters, the competition has been intensified. Which is natural to the e-commerce sector. In such a competitive environment, our revenue growth may slow down. For instance, in the second quarter, our revenue growth decline, indicating that high revenue growth is not sustainable. Currently, consumer demand is becoming more diversified.

Speaker Change #293: Got it okay that was pricing.

Happy by Sundown, both within our country for that.

Speaker Change #295: Apart from agricultural products, we have expanded our support to the manufacturer through digitalization.

Speaker Change #296: By collaborating with high quality National brands and manufacturers, we have successfully launched tailored products for niche categories.

Jiazhen Zhao: Hi, this is Zhao Dagen. Let me take your question on competition. Over the past three quarters, the competition has been intensified. Which is natural to the e-commerce sector. In such a competitive environment, our revenue growth may slow down. For instance, in the second quarter, our revenue growth has declined, indicating that high revenue growth is not sustainable. Currently, consumer demand is becoming more diversified. And e-commerce platforms are actively adjusting their strategies to meet this evolving needs.

Speaker Change #296: This brand and merchant have achieved higher quality development through continuous technological updates and product innovation.

Speaker Change #297: And then they can enjoy saying you're tracking that you'll just hang out on me.

Speaker Change #297: Okay.

Speaker Change #298: Korea, what's it.

Hello.

Speaker Change #299: So although you're right.

mckamie: Where users on desktop although mckamie.

mckamie: So what you're saying.

Susan: On the highlights of shoot I'm looking at Susan Theyre going in early.

Susan: <unk> got the pieces in.

Susan: Craig I'm, just I guess I'm trying to think Cynthia that causing a problem.

Speaker Change #302: We will strongly encourage and support high quality merchants, who are dedicated to their business and innovation. In addition to the significant reduction in transaction fees that we plan to offer.

Speaker Change #302: We will continue to leverage our platform and supply chain capabilities to help merchants improve quality and efficiency and guide manufacture towards innovative and high quality bonds.

Well my son called I guess at all.

Speaker Change #302: And when you go under your watch Lindsay.

Speaker Change #303: Well, it's always a citizens this retailer that had against it it's equal.

Speaker Change #304: And in truth, and Peanuts, and that's how you're thinking about that.

Yeah, well no quake to archive C 19, it'll cause here.

Speaker Change #305: We fully understand the only by optimizing and upgrading the supply chain is essential to meeting deeper consumer needs and ensuring long term healthy growth of our platform ecosystem.

Chen Lei: And e-commerce platforms are actively adjusting their strategies to meet this evolving needs. Each platform has its own strength and competitive edge and commits substantial resources to cater to consumer demands. At this moment, we need to focus on our core strength and continue our path to high quality environments. For e-commerce platforms, we need to focus on our core strength and continue our path to high quality environments. For e-commerce platforms, a robust wide chain is essential to providing good services to consumers.

Jiazhen Zhao: Each platform has its own strength and a competitive edge, and a company's substantial resources to cater to consumer demands. At this moment, we need to focus on our core strength and continue on our path to high quality development. In the future, we need to focus on our core strength and continue on our path to high quality development. For e-commerce platforms, a robust wide chain is essential to providing good services to consumers.

Speaker Change #305: We're committed to making long term in a patient investments.

Speaker Change #306: Thank you all.

Tien Tsin: And thank you Tien tsin.

Speaker Change #308: Thank you all for joining US today, we look forward to speaking with you again next quarter and thank you how can I say.

Speaker Change #309: Thank you, ladies and gentlemen that does conclude our conference for today. Thank you for participating you may all now disconnect.

Speaker Change #309: [noise].

Chen Lei: To meet the diversified needs as consumers, we remain focused on the fundamentals and strive for innovation in the supply chain. In the second quarter, our teams continue to bring agricultural core initiative to major production regions, helping local agricultural products build their brand and empowering small and medium-sized agricultural merchants to collective marketing efforts.

Jiazhen Zhao: To meet the diversified needs as consumers, we remain focused on the fundamentals and strive for innovation in the supply chain. In the second quarter, our teams continue to bring agricultural core initiative to major production regions, helping local agricultural products build their brand, and empowering small and medium-sized agricultural merchants to collect market assets.

Lei Chen: For example, in the second quarter, our team is continuing to bring our agricultural cloud initiative to manage your production regions, to helping local growers to bring seasonal foods directly to people's homes. And in this process, promote the local agricultural brand.

Speaker Change #309: Yeah.

Speaker Change #309:

Speaker Change #309: Okay.

Speaker Change #309:

Speaker Change #309: [noise].

Unknown Executive: [inaudible] the industry, the industry, the industry, the industry,[inaudible] Jiazhen Zhao, Jiazhen Zhao, Jiazhen Zhao, Jiazhen[inaudible][inaudible] you, thank you,[inaudible] Thank you, operator.

Unknown Executive: [inaudible] the industry, the industry, the industry, the industry,[inaudible] Jiazhen Zhao, Jiazhen[inaudible] Jiazhen Zhao, Jiazhen Thank you for watching. Thank you for watching. Thank you, Operator. Hello, everyone, and thank you for joining us today. PDD Holdings' Ernest Relief was distributed earlier and is available on our website at investors. PDDholdings.com as well as through the scope news-wide services. Before we begin, I would like to refer you to our safe public statements in earnings press release, which applies to this call, as we will make certain for-looking statements. Also, this call includes discussions of certain non-gap financial measures. Please refer to our earnings release, which contains a reconciliation of non-gap measures to gap measures.

Speaker Change #309: No.

Speaker Change #309: Yeah.

Speaker Change #309: Okay.