Q2 2025 PDD Holdings Inc Earnings Call

At this time all participants are in listen only mode. There will be a presentation followed by a question and answer session at which time, if you wish to ask a question.

You will need to press the star key followed by the number one on your telephone. Please be advised that today's conference is being recorded I would now like to hand, the conference over to your host today. Sir. Please go ahead.

Okay.

Thank you operator, and Hello, everyone and thank you all for joining us today.

Speaker #1: Ladies and gentlemen, thank you for standing by, and welcome to the PDD Holdings Inc. second quarter 2025 earnings conference call. At this time, all participants are in listen-only mode.

Operator: Ladies and gentlemen, thank you for standing by and welcome to the PDD Holdings Inc. Q4 2025 earnings conference call. At this time, all participants are in listen-only mode. There will be a presentation followed by a question and answer session, at which time, if you wish to ask a question, you will need to press the star key followed by the number one on your telephone. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your host today. Sir, please go ahead.

PBT Holdings earnings release was distributed earlier and is available on our website Investor <unk> Holdings Dot com.

And also through the Globe Newswire services.

Before we begin I would like to refer you to our safe Harbor statement in earnings press release, which applies to this call as we will make certain forward looking statements.

Speaker #1: There will be a presentation followed by a question-and-answer session. At that time, if you wish to ask a question, you will need to press the star key followed by the number one on your telephone.

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

Speaker #1: Please be advised that today's conference is being recorded. I would now like to hand the conference over to your host today. Sir, please go ahead.

Please refer to our earnings press release, which contains a reconciliation of non-GAAP measures to GAAP measures.

Joining us today on the call on Mr. Charlie <unk>, our chairman and co Chief Executive Officer.

Speaker #2: Thank you, operator. And hello, everyone. Thank you for joining us today. PDD Holdings' earnings release was distributed earlier and is available on our website at investor.pddholdings.com.

Chen Lei: Thank you, operator, and hello everyone. Thank you for joining us today. PDD Holdings' earnings release was distributed earlier and is available on our website at investor.pddholdings.com and also through the Globe Newswire services. Before we begin, I would like to refer you to our safe harbor statement in earnings press release, which applies to this call, as we will make certain forward-looking statements. Also, this call includes discussions of certain non-GAAP financial measures. Please refer to our earnings press release, which contains a reconciliation of non-GAAP measures to GAAP measures. Joining us today on the call are Mr. Chen Lei, our Chairman and Co-Chief Executive Officer; Mr. Zhao Jiazhen, our Executive Director and Co-Chief Executive Officer; and Mr. Liu Jing, our VP of Finance. Lei and Jiazhen will make some general remarks on our performance for the past quarter and our strategic focus.

Mr Dugan, our executive director and co Chief Executive Officer.

And Mr lodging, our VP of finance.

Speaker #2: And also through the Globe Newswire services. Before we begin, I would like to refer you to our safe harbor statement in the earnings press release, which applies to this call.

Les and Joe will make some general remarks on our performance for the past quarter and our strategic focus.

Doing well walk us through our financial results for the second quarter ended June 32024.

Speaker #2: As we all make certain forward-looking statements, this call includes discussions of certain non-GAAP financial measures. Please refer to our earnings press release, which contains a reconciliation of non-GAAP measures to GAAP measures.

During the Q&A session layer and Giorgio will answer questions in Chinese.

Okay.

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

Speaker #2: Joining us today on the call are Mr. Chen Lei, our Chairman and Co-Chief Executive Officer, and Mr. Zhao Jiazhen, our Executive Director and Co-Chief Executive Officer.

Now, it's my pleasure to introduce our chairman and co Chief Executive Officer, Mr. Shan Li.

Please go ahead.

Hello, everyone and thank you for joining our second quarter 2025 earnings conference call.

Speaker #2: And Mr. Liu Jin, our VP of Finance. Lei and Jiazhen will make some general remarks on our performance for the past quarter and our strategic focus.

The first half of 2025 has seen rapid change in the external environment.

Speaker #2: Jin, walk us through our financial results for the second quarter ended June 30, 2024. During the Q&A session, Lei and Jiazhen will answer questions in Chinese, and we'll help translate.

Chen Lei: Jing will walk us through our financial results for the second quarter ended June 30, 2024. During the Q&A session, Lei and Jiazhen will answer questions in Chinese and will help translate. Please note that English translation is for reference only, and in case of any discrepancy, statements in the original language should prevail. Now, it's my pleasure to introduce our Chairman and Co-Chief Executive Officer, Mr. Chen Lei. Lei, please go ahead.

At this critical juncture when merchants doing business on our platform face challenges.

Speaker #2: Please note that the English translation is for reference only, and in case of any discrepancy, statements in the original language should prevail. Now, it’s my pleasure to introduce our Chairman and Co-Chief Executive Officer, Mr. Chen Lei.

We stepped up our commitment in high quality development and launch the hundred billions of call program.

Through this program.

Have invested and will continue to invest substantial resources to support the merchant ecosystem.

Speaker #2: Lei, please go ahead.

Speaker #3: Hello everyone, and thank you for joining our second quarter 2025 earnings conference call. The first half of 2025 has seen rapid changes in the external environment.

Operator: Hello, everyone, and thank you for joining our Q4 2025 earnings conference call. The first half of 2025 has seen rapid changes in the external environment. At this critical juncture, when merchants doing business on the platform face challenges, we stepped up our commitment in high-quality development and launched the $100 billion support program. Through this program, we have invested and will continue to invest substantial resources to support the merchant ecosystem. Together with our merchants, we are actively exploring new business models for the global business, seeking new growth opportunities, and navigating the ups and downs of the market cycles. This significant ecosystem investment was reflected in our Q2 financial performance. Revenue growth further moderated, and operating profit declined by 21% year-over-year. However, as we have emphasized in the past, we prioritize long-term value creation over short-term financial results.

Together with our veterans, yes actively exploring new business models for our global business seeking new growth opportunities and navigating the ups and downs of the market cycles.

Speaker #3: At this critical juncture, when merchants doing business on a platform face challenges, we stepped up our commitment to high-quality development and launched the $100 billion support program.

They are significant.

<unk> ecosystem investment were reflected in our Q2 financial performance.

Revenue growth further moderated and operating profit declined by 21% year over year.

Speaker #3: Through this program, we have invested and will continue to invest substantial resources to support the merchants' ecosystem. Together with our merchants, we are actively exploring new business models for the global business, seeking new growth opportunities, and navigating the ups and downs of the market cycles.

However, as we have emphasized in the past.

We prioritize long term value creation over short term financial results.

Our focus remains on investing for the long term such as strengthening the ecosystem.

Driving value chain upgrades.

And delivering tangible benefits to our consumers.

Speaker #3: This significant ecosystem investment will reflect in our Q2 financial performance. Revenue growth further moderated, and operating profit declined by 21 percent year over year.

As a result of our investments in a 100 billion support program.

We are pleased to see that as a platform ecosystem is making steady progress towards sustainable and high quality development.

Speaker #3: However, as we have emphasized in the past, we prioritize long-term value creation over short-term financial results. Our focus remains on investing for the long term, such as strengthening the ecosystem, driving value chain upgrades, and delivering tangible benefits to our consumers.

Since August last year, our 10 billion fee reduction initiative has brought substantial savings for our merchants, creating room for them to innovate and to offer a wider selection of high quality products to our consumers.

Operator: Our focus remains on investing for the long term, such as strengthening the ecosystem, driving value chain upgrades, and delivering tangible benefits to our consumers. As a result of our investments in the $100 billion support program, we are pleased to see that the platform ecosystem is making steady progress towards sustainable and high-quality development. Since August last year, our $10 billion fee reduction initiative has brought substantial savings for our merchants, creating room for them to innovate and to offer a wider selection of high-quality products to the consumers. At the same time, our logistics support initiative significantly reduced the cost of shipping to remote areas and led to a 40% growth in order numbers from the regions, injecting new energy into the economy.

L. A same time, our logistic support initiatives significantly reduce the cost of shipping to remote areas and led to a 40% growth in all the order numbers from the regions.

Speaker #3: As a result of our investments in the $100 billion support program, we are pleased to see that the platform ecosystem is making steady progress towards sustainable and high-quality development.

Injecting new energy into the economy.

In this past quarter.

Speaker #3: Since August last year, our $10 billion fee reduction initiative has brought substantial savings for our merchants, creating room for learning, innovating, and offering a wider selection of high-quality products to consumers.

Entire company rallied behind the 100 billion support program to deliver.

<unk> solutions to help merchants grow their business.

While further reducing costs and commissions for merchant.

Speaker #3: At the same time, our logistics support initiative significantly reduced the cost of shipping to remote areas and led to a 40% growth in order numbers from the regions, injecting new energy into the economy.

We are seeing business of all sizes from established brands to small merchant gaining new momentum in our ecosystem.

Yes.

A few examples.

We actually established consumer brands successfully meeting renting than sales by leveraging consumer insights to short term product launch cycles.

Speaker #3: In this past quarter, the entire company rallied behind the $100 billion support program to deliver innovative solutions to help merchants grow their business. While further reducing costs and commissions for merchants, we are seeing businesses of all sizes, from established brands to small merchants, gaining new momentum in our ecosystem.

Operator: In this past quarter, the entire company rallied behind the $100 billion support program to deliver innovative solutions to help merchants grow their business, while further reducing costs and commissions for merchants. We are seeing business of all sizes, from established brands to small merchants, gaining new momentum in our ecosystem. Let us look at a few examples. We are seeing established consumer brands successfully reinventing themselves by leveraging consumer insights to shorten product launch cycles, lower R&D costs, and enter into new market segments. Many industrial-built manufacturers were able to make the transition from white-label products to a branded offering, breaking away from commoditized competition. With the help of the Door-to-Door Premium Produce program, we are seeing farmers and growers earn higher margins by improving quality control and by moving into food processing to capture higher value adds. Alongside merchant support, we have also expanded our consumer give-back program.

Lower R&D costs and enter into new market segments.

Mainly industrial belt manufacturers were able to make a transition from a white label product for a branded offering breaking away from Commoditized competition.

With the help of the total premier produce program.

Speaker #3: Let us look at a few examples. We are seeing established consumer brands successfully reinventing themselves by leveraging consumer insights to shorten product launch cycles.

We are seeing farmers and growers and higher margins by improving quality control and by moving into the processing to capture higher value add.

Alongside merchants path.

Speaker #3: Lower R&D costs and entry into new market segments have allowed many industrial belt manufacturers to transition from white-label products to branded offerings, breaking away from commoditized competition.

We have also expanded our consumer give back program.

In addition, $2 10 billion program, we introduced new long term consumer campaigns, such as the $10 billion coupon program.

During this year's June 18th shopping festival.

Speaker #3: With the help of the door-to-door premium-produced program, we are seeing farmers and growers earn higher margins by improving quality control and by moving into food processing to capture higher value adds.

We provided additional coupons to top off on top of that.

National trading program driving record sales across multiple categories, including fresh produce in.

Electronics.

Applicants.

Speaker #3: Alongside merchant support, we have also expanded our consumer give-back program. In addition to the $10 billion program, we introduced new long-term consumer campaigns, such as the $10 billion coupon program.

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For a more value for our consumers.

Meanwhile, in our global business merchant and our platform faced more complex business environment.

Operator: In addition to the $10 billion program, we introduced new long-term consumer campaigns, such as the $10 billion coupon program. During this year's June 18 Shopping Festival, we provided additional coupons on top of the National Trading program, driving record sales across multiple categories, including fresh produce, electronics, home appliances, and apparel, offering more value for the consumers. Meanwhile, in our global business, merchants and our platform face a more complex business environment. To navigate through the market cycles, we are working together with merchants to explore new business models and new markets, while at the same time delivering innovative solutions to drive efficiency. As a platform that has its roots in agriculture, we continue to invest in agri-tech through initiatives like the Smart Agriculture Competition, which is now in its fifth iteration.

To navigate through the market cycles.

Working together with merchants to explore new business models, and new markets or else in time deliver innovative solutions to drive efficiencies.

Speaker #3: During this year's June 18 shopping festival, we provided additional coupons on top of the national trading program, driving record sales across multiple categories including fresh produce, electronics, home appliances, and apparel.

That's a platform that has its roots in agriculture.

Continue to invest in accurate tack through initiatives like the smart agriculture competition will.

Speaker #3: Offering more value for consumers is our priority. Meanwhile, in our global business, merchants and our platform face increasingly complex business environments. To navigate through market cycles, we are collaborating with merchants to explore new business models and new markets, while at the same time delivering innovative solutions to drive efficiency.

It is now in its fifth iteration.

46 global teams competed in a preliminary readout into line this year showcasing cutting edge technology in AI, Fahmi, hydroponics and echo necessary systems.

This event is emerging as an important platform agricultural technology research and application.

Speaker #3: As a platform that has its roots in agriculture, we continue to invest in agri-tech through initiatives like the Smart Agriculture Competition, which is now in its fifth iteration.

Later in this year's competition, the participants will bring their technology from labs to field.

Testing of commercial applications of Lam research funding.

Looking ahead as external environment, continuing to evolve our competition intensified.

Speaker #3: Forty-six global teams competed in the preliminary held in July this year, showcasing cutting-edge technology in AI farming, hydroponics, and air conditioning systems. This event is emerging as an important platform for agricultural technology research and application. Later in this year's competition, the participants will bring their technology from labs to fields.

Operator: Forty-six global teams competed in a preliminary held in July this year, showcasing cutting-edge technology in AI farming, hydroponics, and eco-nursery systems. This event is emerging as an important platform for agricultural technology research and application. Later in this year's competition, the participants will bring their technology from lab to field, testing the commercial applications of their research findings. Looking ahead, as the external environment continues to evolve and competition intensifies, we remain committed to long-term value creation over short-term results. Our team will prioritize high-quality growth by creating long-term opportunities for merchants and investing in consumer experience. As we ramp up our investments, profitability will inevitably fluctuate, and this quarter's results may not represent future earning trends. Now, I will hand it over to Zhao Jiazhen to share more details about our performance in the second quarter.

We remain committed to long term value creation over short term results.

Our team will prioritize high quality growth by creating long term opportunities for merchants.

<unk> consumer experience.

As we ramp up our investments.

Profitability or inevitably fluctuate quarterly.

Quarterly results may not represent future earnings trend.

Speaker #3: Testing the commercial applications of their research findings. Looking ahead, as the external environment continues to evolve and competition intensifies, we remain committed to long-term value creation over short-term results.

And now I will hand, it over to <unk> to share more details about.

Performance in the second quarter.

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Speaker #3: Our team will prioritize high-quality growth by creating long-term opportunities for merchants and investing in consumer experience. As we ramp up our investments, profitability will inevitably fluctuate, and this quarter's results may not represent future earning trends.

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Speaker #3: And now, I will hand it over to Zhao Jiazhen to share more details about our performance in the second quarter.

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Q2 to help merchants Taco emerging challenges, we actively leveraged our role as a platform to take on more social responsibilities.

Speaker #4: 谢谢陈磊, 大家好, 我是赵家珍, 感谢大家参与第二季度业绩的发布会。

Chen Lei: 谢谢陈雷。大家好, 我是赵亚真, 感谢大家参与第二季度业绩的发布会。Thank you, Lei Chen, and hello everyone, this is Jiazhen Zhao. Thank you for joining our Q4 2025 earnings call. 今年二季度, 为了与商家共同应对新挑战, 我们积极发挥平台企业的社会效能和责任担当。公司上下加速推进了千亿服饰的新战略, 将高质量发展的投入提升到了一个全新的量级, 也首次在电子行业呢, 开启了千亿级别的会商行动。In Q2, to help merchants tackle emerging challenges, we actively leveraged our role as a platform to take on more social responsibilities. We accelerated our execution of the $100 billion support program, which represents a significant commitment to high-quality development. This also marked the first merchant support program of this scale. 在真金白银的投入下呢, 本季度的营收和利润再次受到了一定程度的影响。如陈雷所说, 相较于短期业绩, 我们更加关注可以为平台生态带来长期回报的投入。这也是我们甘于牺牲利润、长期坚持长期反哺生态的原因。These substantial investments once again affected our quarterly revenue and profit. As Lei Chen noted, comparing to short-term financial performance, we focus more on investments that bring long-term value to the platform ecosystem. This is why we are willing to accept lower profits to consistently reinvest in the platform ecosystem in the long run.

We accelerated our execution of the 100 billion to core program, which represents a significant commitment to high quality development.

Speaker #2: Thank you, Lei, and hello everyone. This is Zhao Jiazhen. Thank you for joining our second quarter 2025 earnings call.

Speaker #4: 今年二季度, 为了与三家共同应对新挑战, 我们积极发挥平台企业的社会效能和责任担当, 公司上下加速推进了迁移服务的新战略, 将高质量发展的投入提升到了一个全新的量级, 也首次在电子行业开启了迁移级别的惠商行动。

Also marked the first merchant support program of this scale.

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Speaker #2: In Q2, to help merchants tackle emerging challenges, we actively leveraged our role as a platform to take on more social responsibilities. We accelerated our execution of the $100 billion support program, which represents a significant commitment to high-quality development.

These substantial investments once again affected our quarterly revenue and profit.

As Larry noted comparing to a short term financial performance.

It's more on investment that bring long term value to the platform ecosystem.

Speaker #2: This also marks the first merchant support program of this scale.

And this is why we are willing to accept lower profit to consistently reinvest in our platform ecosystem in the long run.

Speaker #4: 在真金白银的投入下, 本季度的营收和利润再次受到了一定程度的影响。如陈磊所说, 相较于短期业绩, 我们更加关注可以为平台生态带来长期回报的投入。这也是我们甘于牺牲利润、长期坚持长期反哺生态的原因。

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Speaker #2: These substantial investments, once again, affected our quarterly revenue and profit. As Lei noted, compared to short-term financial performance, we focused more on investments that bring long-term value to the platform ecosystem.

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Speaker #2: And this is why we're willing to accept lower profits to consistently reinvest in the platform ecosystem in the long run.

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This past quarter under the unprecedented investments through the 100 billion support program with dedicated significant resources to initiatives such as temporary salary reduction program.

Speaker #4: 过去这个季度, 基于迁移服务的空间投入, 我们在百亿减免、电商吸进、薪资供给等惠商行动上, 投入了更多的精力和资源。持续为千万三家降佣增效, 很多三家仅推广服务费的退返, 每年就能节省数百万元。为产业升级创造了更多动力和空间。在电商吸进的推动下, 东西部供需双向奔赴, 西部地区的订单量飞快增长, 极大丰富了偏远地区消费者的物质生活和精神生活。

Chen Lei: 过去这个季度, 基于千亿服饰的空间投入, 我们在百亿减免、电商吸金、薪资供给等会商行动上投入了更多的精力和资源, 持续为千万商家降佣增效。很多商家仅退款服务费的退款, 每年就能节省数百万元, 为产业升级创造了更多动力和空间。在电商吸金的推动下, 东西部供需双向奔赴, 西部地区的订单量飞快增长, 极大丰富了偏远地区消费者的物质生活和精神生活。This past quarter, under the unprecedented investments through the $100 billion support program, we dedicated significant resources to initiatives such as the $10 billion fee reduction program, logistics support initiative, and the new quality merchant support program. We continued to lower costs and increase efficiencies for millions of merchants. Many saved millions of RMB each year just from service fee reductions. These efforts created more momentum and space for industrial upgrades. The logistics support initiative also bridged supply and demand and helped drive rapid order volume growth from remote regions, greatly enriching the daily lives of consumers in these regions. 在供给侧, 千亿服饰全面扩大对中小商家、轻质商家以及品牌商家的服饰力度, 确保不同商家主体都能享受到平台的服饰政策。推动农产区产业带实现多层次、全方位的高质量发展, 以满足广大消费者的多元化需求。On the supply side, the $100 billion support program expanded support for SMEs, new quality merchants, and branded merchants, ensuring all types of businesses could benefit from the platform's resource support.

<unk> support initiative, a new quality merchant support program, we continue to lower costs and increase efficiencies for millions of merchants.

Many saved millions of RMB each year, just on the service fee reductions.

These efforts created more momentum in the space for industrial upgrades.

Just to support initiative auto grid supply and demand and help drive rapid order volume growth from remote regions Greater innovation the daily lives of consumers in these regions.

Speaker #2: This past quarter, under the unprecedented investment through the $100 billion support program, we dedicated significant resources to initiatives such as the $10 billion fee reduction program, logistics support initiative, and new quality merchant support program.

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Speaker #2: We continue to lower costs and increase efficiencies for millions of merchants. Many saved millions in R&D each year, just from service fee reductions. These efforts created more momentum and space for industrial upgrades.

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On the supply side, the 100 billion for core program expanded support for Smes, new quality merchants and branded merchants.

Speaker #2: The logistics support initiative also bridged supply and demand and helped drive rapid order volume growth from remote regions, greatly enriching the daily lives of consumers in these regions.

Sorry, all types of businesses could benefit from the platform's resource support.

This help agriculture and manufacturing regions achieved all rounded high quality development to meet diverse consumer needs.

Speaker #4: 在供给侧, 迁移服务全面扩大对中小三家新制三家以及品牌三家的扶持力度。确保不同三家主体都能享受到平台的扶持政策。推动农产区产业带实现多层次全方位的高质量发展, 以满足广大消费者的多元化需求。

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Speaker #2: On the supply side, the $100 billion support program expanded supports for SMEs, new quality merchants, and branded merchants, ensuring all types of businesses could benefit from the platform's resource support.

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Our total premium produce team visited multiple agricultural regions, including Swagel rice telephone potatoes, chromium flowers changzhou ex <unk> foochow seafood in Santa and Joe Shan and prickly pear Paris.

Speaker #2: This helped agricultural and manufacturing regions achieve all-rounded, high-quality development to meet diverse consumer needs.

Chen Lei: This helped agricultural and manufacturing regions achieve all-rounded high-quality development to meet diverse consumer needs. 在二季度以来, 我们的多多好特产专项团队先后走进随州稻米、昭通土豆、昆明鲜花、商丘鸡蛋、福州竹笋、仙桃水产、舟山海鲜、贵州刺梨等农特产区, 针对各地的商品特点、产业优势, 继续实施定制化服饰, 通过丰富产品、店铺矩阵, 解决深圳商家季节性供给不足的问题, 实现长效发展。Our Door-to-Door Premium Produce team visited multiple agricultural regions, including Suizhou Rice, Zhaotong Potatoes, Kunming Flowers, Shangqiu Eggs, Fuzhou Bamboo Shoots, Xiantao Aquatic Products, Zhoushan Seafood, and Guizhou Cili, to provide customized support based on local specialties and industry advantages. By enriching product offerings and store metrics, we helped fresh produce merchants overcome seasonal shortages and achieve sustainable growth. 在云南昭通的乌蒙山腹地, 当地盛产的环形土豆口味好, 营养丰富, 一直都是村民的主要收入来源, 但因受限于地理位置, 长期只能以初级农产品进行销售, 产业附加值低。最近几年, 我们的商家在当地开设工厂, 引进智能化生产设备, 将昭通土豆研发出了不同口味的薯片, 在平台的扶持下成功打开全国市场, 初步形成了网红薯片的品牌效应, 把小土豆做成了大产业, 还带动当地1.1万户农民增产增收。In Zhaotong, Yunnan, for example, local potatoes are particularly tasty and nutritious, and have been a main source of income for local farmers. However, due to geographic constraints, these potatoes were traditionally sold as low added value raw produce. In recent years, one of our merchants set up automated production to turn these potatoes into flavored chips.

Speaker #4: 在二季度以来, 我们的多多好特展专项团队先后走进随州稻米、交通土豆、昆明鲜花、山丘鸡蛋、福州竹笋、仙桃水产、舟山海鲜、贵州刺梨等农特产区。针对各地的商品特点, 产业优势, 继续实施定制化扶持, 通过丰富产品店铺矩阵解决生鲜商家季节性供给不足的问题, 实现长效发展。

Guizhou to provide customized support based on local specialties and industry advantages.

By enriching product offerings in store matrix, we helped produce motions overcome seasonal shortages and achieve sustainable growth.

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Speaker #2: Our door-to-premium produce team visited multiple agricultural regions, including Xuezhou rice, Jiaotong potatoes, Kunming flowers, Shanqiu eggs, bamboo shoots in Fuzhou, seafood in Shentao and Zhoushan, and prickly pears in Guizhou, to provide customized support based on local specialties and industry advantages.

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Speaker #2: By enriching product offerings and store matrix, we helped scratch produce merchants overcome seasonal shortages and achieve sustainable growth.

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In California for example, local producers are particularly tasty nutritious and has been the main source of income for local farmers.

Speaker #4: 在云南交通的雾蒙山腹地, 山地盛产的环形土豆口味好, 营养丰富, 一直都是村民的主要收入来源。但因受限于地理位置、长期只能以促进农产品进行销售, 产业附加值低, 最近几年, 我们的三家在当地开设工厂, 引进智能化生产设备, 将交通土豆研发出了不同口味的薯片, 在平台的扶持下成功打开全国市场。初步形成了网红薯片的品牌效应, 把小土豆做成了大产业。还带动当地1.1万户农民增产增收。

However, due to geographic constraints, these potatoes, where traditionally sold as low added value well produce.

In recent years, one of our merchants set up automated production to turn these potatoes into flavored chips.

With the platforms help.

<unk> national popularity, creating its own online following.

This turned agriculture produce into a key local industry that increased income for 11000 local farmers.

Speaker #2: In Jiaotong, Yunnan, for example, local potatoes are particularly tasty and nutritious and have been a main source of income for local farmers. However, due to geographic constraints, these potatoes were traditionally sold as low-added-value raw produce.

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Speaker #2: In recent years, one of our merchants set up automated production to turn these potatoes into flavored chips. With the platform's help, the product gained national popularity, creating its own online followings.

Chen Lei: With the platform's help, the product gained national popularity, creating its own online followings. This turned agricultural produce into a key local industry that increased income for 11,000 local farmers. 在本季度, 我们的亲自供给团队通过走访义乌小商品、定价零食、关云服饰、佛山童装、威海渔具等产业带, 深入了解商家的需求, 分析产业的发展困境, 然后利用平台的数字技术以及黑标店铺、多多视频等新方式, 积极探索产业升级的新思路、新模式。This quarter, new quality supply team also visited industrial belts such as Yiwu Small Merchandise, Xinjiang Snacks, Apparel in Guanyun, Children's Wear in Foshan, and Fishing Gears in Weihai. By making these visits, we gained a deeper understanding of merchant needs and the challenges faced by them. Following these visits, leveraging the platform's digital capabilities and promotional tools such as the Black Label Stores and Duoduo Short Videos, we were able to help merchants explore new growth models.

This quarter Nucor's. This apart typhoon also visited the industrial belt, such as new small merchandise.

Speaker #2: This turned agricultural produce into a key local industry that increased income for 11,000 local farmers.

And just nuc apparel and courtyard children's wear in foshan, and fishing gear and very hard.

Speaker #4: 在本季度, 我们的薪资供给团队通过走访义务小商品, 定价临时, 关于服饰、佛山童装、威海渔具等产业带, 深入了解商家的需求, 分析产业的发展困境, 然后利用平台的数字技术以及黑标店铺多多视频等新方式, 积极探索产业升级的新思路、新模式。

Making these visits we gained deeper understanding of merchant needs and challenges faced by them.

Following these visits leveraging the platforms digital capabilities and promotional tools, such as the black label stores and total short videos.

We're able to help merchants explore new growth models.

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Speaker #2: This quarter, the new quality supply team also visited industrial belts such as EU small merchandise, Xinjiang snacks, apparel in Guangyuan, children's wear in Foshan, and fishing gear in Weihai.

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Speaker #2: By making these visits, we gained a deeper understanding of merchant needs and the challenges they face. Following these visits, leveraging the platform's digital capabilities and promotional tools such as the Black Label stores and door-to-short videos, we were able to help merchants explore new growth models.

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In view after a decade of development the low local small merchandise market is facing intense commoditized competition with many merchants and factories operating with the same profit margins low barriers to entry.

Speaker #4: 在EU, 当地的小商品市场经过数十年的发展, 商品的同质化竞争愈演愈烈, 很多三家工厂陷入了低门槛、低利润的怪圈。我们的团队将三家系统进行升级, 在后台为三家精准筛选具备爆款潜质的产品, 并进行相应的资源扶持。大大降低了商家试错的成本。提高了新品研发的成功率。为广大商家带来了巨大的创新动力, 也加快了产业带转型的效率和质量。

Chen Lei: 在义乌, 当地的小商品市场经过数十年的发展, 商品的同质化竞争愈演愈烈, 很多商家工厂陷入了低门槛、低利润的怪圈。我们的团队将商家系统进行升级, 在后台为商家精准筛选具备爆款潜质的产品, 并进行相应的资源扶持, 大大降低了商家试错的成本, 提高了新品研发的成功率, 为广大商家带来了巨大的创新动力, 也加快了产业带转型的效率和质量。In Yiwu, after decades of development, the local small merchandise market is facing intense commoditized competition, with many merchants and factories operating with thin profit margins and low barriers to entry. Our team integrated the merchant systems with the platform's backend to help them identify hit products. Together with the resource support from the platform, this significantly improved the success rate of new product development, reducing the cost of trial and error. Our support measures created room for merchants to innovate and injected new energy in the transformation of the local industries. 除此以外呢, 千亿扶持也在积极地赋能品牌商家, 尤其是传统的国货品牌。面对消费市场的新变化, 传统品牌往往面临产品创新不足、市场质量乏力等问题。我们的业务团队基于对不同消费群体的需求洞察, 在产品规划、营销推广、店铺运营等方面, 与品牌商家展开全方位的合作, 助力品牌成功打开了年轻化、细分化的市场, 找到了新的增长曲线, 完成了战略转型。 In addition to merchants in agricultural regions and industry belts, the $100 billion support program is also empowering consumer brands, especially traditional national brands.

Our team integrated a merchant systems with the platform's backend to help them identify seat product.

Together with the ratio of support from the platform. This significantly improve the success rate of new product development, reducing the cost of trial and error.

Our support measures created room for merchants.

And injected new energy in the transformation of the local industries.

Speaker #2: In the EU, after a decade of development, the local small merchandise market is facing intense commoditized competition, with many merchants and factories operating with the same profit margins and low barriers to entry.

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Speaker #2: Our team integrated the merchant systems with the platform's backend to help them identify hit products. Together with the resource support from the platform, this significantly improved the success rate of new product development.

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Speaker #2: Reducing the cost of trial and error, our support measures created room for merchants to innovate and injected new energy into the transformation of the local industries.

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In addition to merchants in agricultural regions in industrial belts.

100 billion support program is also empowering consumer brand.

Speaker #4: 除此以外, 迁移服务也在积极的赋能品牌商家, 尤其是传统的国货品牌。面对消费市场的新变化, 传统品牌往往面临产品创新不足、市场震荡乏力等问题。我们的业务团队基于对不同消费群体的需求洞察, 在产品规划、营销推广、店铺运营等方面, 与品牌商家展开全方位的合作。助力品牌成功打开了年轻化、细分化的市场。找到了新的增长曲线, 完成了战略转型。

Robert.

Specialty traditional national brands.

Creating new consumer trends many of these for Theres no grant dealing with challenges such as lack of product innovation and slowing growth.

Leveraging deep consumer insights our team worked with brand partners on the end to end solution, covering and product planning marketing and store operations.

These partnerships have enable brands to successfully tapping into younger and niche market segments.

Unlocking new growth opportunities and achieving our strategic transformation.

Speaker #2: In addition to merchants in agricultural regions and industry belts, the $100 billion support program is also empowering consumer brands, especially traditional national brands facing new consumer trends.

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Chen Lei: Facing new consumer trends, many of these traditional brands are dealing with challenges such as lack of product innovation and slowing growth. Leveraging deep consumer insights, our team worked with brand partners on an end-to-end solution, covering product planning, marketing, and store operations. These partnerships have enabled brands to successfully tap into younger and niche market segments, unlocking new growth opportunities and achieving strategic transformation. 我们在供给侧的一系列的投入, 也进一步激发了需求侧的消费潜力。在618大促期间, 平台全域消费持续火热, 数十个类目的销量创下新高, 仅百亿补贴超级加倍补的活动的单日订单量就超过了376万单, 广大消费者日益丰富的新需求也得到了持续满足。 Our supply-side investments also stimulated consumption demand. During the June 18 Shopping Festival promotion, sales hit new heights across dozens of categories. The super double discount event alone reached over 3.76 million orders in a single day, meeting consumers' evolving needs. 目前, 电商行业正在围绕新业态进行新一轮的激烈竞争。我们坚持长期主义的理念不会变化, 我们将继续深入推进千亿扶持战略, 把真金白银用在提升用户体验、优化商家服务和促进产业升级上, 致力于构建多方共赢生态。我们也希望可以通过自身努力, 引导行业向着更普惠、更开放的方向不断迭代, 为社会创造更大的正向价值。 As competition in the e-commerce industry intensifies around new business models, we remain committed to long-term thinking.

Speaker #2: Many of these traditional brands are dealing with challenges such as a lack of product innovation and slowing growth. Leveraging deep consumer insights, our team worked with brand partners on an end-to-end solution, covering product planning, marketing, and store operations.

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Our supply chain investments also stimulated consumption demand during the June 18 promotion.

Speaker #2: These partnerships have enabled brands to successfully tap into younger and niche market segments, unlocking new growth opportunities and achieving strategic transformation.

<unk> hit new highs across dozens of pet categories.

The Super double discount event alone reached over 276 million orders in a single day meeting consumers' evolving needs.

Speaker #4: 我们在供给侧的一系列的投入, 也进一步激发了需求侧的消费潜力。在628大促期间, 平台全域消费持续火热, 数十个类目的销量创下新高, 仅百亿补贴, 超级加倍补的活动的单日订单量就超过了376万单。广大消费者日益丰富的新需求, 也得到了持续满足。

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Speaker #2: Our supply-side investments also stimulated consumption demand. During the June 18 promotion, sales hit new highs across dozens of categories. The super double discount event alone reached over 3.76 million orders in a single day.

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And as competition in the ecommerce industry intensifies around new business models, we remain committed to long term thinking.

Speaker #2: Meeting consumers' evolving needs.

Speaker #4: 目前, 电商行业正在围绕新业态进行新一轮的激烈竞争。我们坚持长期主义的理念不会变化, 我们将继续深入推进迁移服务战略, 把真金白银用在提升用户体验、优化商家服务和促进产业升级上。致力于构建多方共赢生态。我们也希望可以通过这些努力, 引导行业向着更普惠、更开放的方向, 不断迭代。为社会创造更大的真相价值。

We will continue to deepen the 100 billion support program.

Investing substantial resources in improving user experience merchant services and industrial upgrades to build a win win ecosystem.

We also help our efforts can help guide industry toward a more inclusive and more open environment, creating greater value for the society.

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I will now hand, it over to Jim <unk> will provide you with an update on our Q2 financial performance.

Speaker #2: And as competition in the e-commerce industry intensifies around new business models, we remain committed to long-term thinking. We will continue to deepen the $100 billion support program, investing substantial resources in improving user experience, merchant services, and industrial upgrades to build a win-win ecosystem.

Thank you, Ken and Hello, everyone.

Chen Lei: We will continue to deepen the $100 billion support program, investing substantial resources in improving user experience, merchant services, and industrial upgrades to build a win-win ecosystem. We also hope our efforts can help guide the industry toward a more inclusive and more open environment, creating greater value for the society. 接下来, 我把时间交给刘劲, 由他为大家介绍我们二季度的财务表现。 I will now hand it over to Jing, she will provide you with an update on our Q2 financial performance.

Let me walk you through our financial performance for the second quarter ended June 32025.

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Speaker #2: We also hope our efforts can help guide the industry toward a more inclusive and open environment, creating greater value for society.

Some statements and a second day.

Total revenue increased 7%.

RMB 104 billion.

Speaker #4: 接下来, 我们把时间交给刘俊, 由他为大家介绍我们二季度的财务表现。

This was driven by an increase in revenues from online marketing services and transaction services.

Speaker #2: I will now hand it over to Jun Liu. She will provide you with an update on our Q2 financial performance.

Revenues growth further motivate edge.

As competition intensified.

And as we have.

Speaker #1: Thank you, Jiazhen. Hello, everyone. Let me walk you through our financial performance for the second quarter ended June 30, 2025. In terms of income statements, in the second quarter, total revenues reached $7.8 billion and R&D expenses were $104 billion.

Liu Jing: Thank you, Jiazhen Zhao. Hello, everyone. Let me walk you through our financial performance for Q2 ended June 30, 2025. In terms of income statements, in Q2, total revenues increased 7% year-over-year to RMB 104 billion. This was driven by an increase in revenues from online marketing services and transaction services. Revenues growth further moderated as competition intensified and as we helped merchants increase efficiencies. Revenues from online marketing services and orders were RMB 55.7 billion this quarter, up 13% from Q2 of 2024. Revenues from transaction services were RMB 48.3 billion, up 1% from the same quarter last year. Moving on to costs and expenses, our total cost of revenues increased 36% from RMB 33.7 billion in Q2 2024 to RMB 45.9 billion this quarter, mainly due to increase in fulfillment fees, land lease and service quotes, and payment for subscription fees.

Americans increased efficiency.

Yeah.

Revenues from online marketing services, and others were RMB 55 $7 billion this quarter.

After.

2% from <unk> 24.

Revenues from section services were RMB 48 8 billion.

Speaker #1: This was driven by an increase in revenues from online marketing services and transaction services. Revenue growth further moderated as competition intensified. As we help merchants increase efficiencies, revenues from online marketing services and orders for R&D reached $55.7 billion this quarter.

Up 1% from the same quarter last year.

Moving on to coal.

Cost and expenses.

Our total cost of revenue increased 6% from RMB $33 7 billion in Q2 2024 to RMB $45 9 billion this quarter.

Mainly due to increase in fulfillment fees, Danville, and civil courts and payments.

Speaker #1: After 10 percent from the quarter of 2024, revenues from transaction services for R&D reached $48.3 billion, up 1 percent from the same quarter last year.

Processing fees.

The GAAP basis.

Total <unk> expenses this quarter increased 5% to RMB 32 3 billion.

From RMB 38.

Speaker #1: Moving on to cost and expenses, our total cost of revenues increased 36 percent from R&D $33.7 billion in Q2 2024 to R&D $45.9 billion this quarter.

<unk> in the same quarter of 2024.

Our non-GAAP says.

Operating expenses increased to RMB third point full bills okay.

From RMB $28 4 billion in Q2 2024.

Speaker #1: Mainly due to an increase in fulfillment fees, bandwidth and server costs, and payment processing fees, gap basis tolerated expenses this quarter increased 5 percent to R&D $32.3 billion.

And the second quarter invested.

And significant resources in building out a series of matches supporting initiatives.

Looking ahead.

Liu Jing: On a GAAP basis, total operating expenses this quarter increased 5% to RMB 32.3 billion, from RMB 30.8 billion in the same quarter of 2024. On a non-GAAP basis, total operating expenses increased to RMB 30.4 billion this quarter, from RMB 28.4 billion in Q2 2024. In Q2, we invested significant resources in rolling out a series of merchant support initiatives. Looking ahead, we are committed to supporting the vitality of the ecosystem, and we are continuing to prioritize long-term value creation over short-term results. Our total non-GAAP operating expenses as a percentage of total revenues this quarter was 29%, in line with the same quarter last year. Looking into specific expense items, our non-GAAP sales and marketing expenses this quarter were RMB 26.7 billion, up 5% versus the same quarter last year.

We are committed to supporting the modality of the ecosystem and we are continuing to prioritize long term value creation of our short term results.

Speaker #1: From R&D, $30.8 billion in the same quarter of 2024. Unknown gap basis total operating expenses increased to R&D $30.4 billion this quarter.

Our total non-GAAP operating expenses as a percentage of total revenues this quarter was 29%.

In line with the same quarter last year.

Speaker #1: From R&D, $28.4 billion in Q2 2024. In the second quarter, we invested significant resources in rolling out a series of merchant support initiatives.

Looking to specific expense items.

Our non-GAAP sales and marketing expenses this quarter.

26.

Thank you Kevin.

Speaker #1: Looking ahead, we are committed to supporting the fidelity of the ecosystem and continuing to prioritize long-term value creation over short-term results. Our total non-GAAP operating expenses, as a percentage of total revenues this quarter, was 29 percent, in line with the same quarter last year.

Up 5% versus the same time last year.

Yeah.

Sales and marketing expenses as a percentage of our revenue this quarter was 26%.

In line with the same quarter last year.

Our non-GAAP general and administrative expenses were RMB $667 million.

Does this RMB 594 million in same quarter of 2024.

Speaker #1: Looking into specific expense items, our non-GAAP sales and marketing expenses this quarter were R&D $26.7 billion, up 5 percent versus the same quarter last year.

Our research and development expenses were RMB, three 1 billion.

Okay.

GAAP basic and.

With $3 6 billion on a GAAP basis.

Speaker #1: Sales and marketing expenses as a percentage of our revenues this quarter was 26%, in line with the same quarter last year. Our non-GAAP general and administrative expenses for R&D were $667 million versus $594 million in the same quarter of 2024.

Up 23% year over year.

Liu Jing: Sales and marketing expenses as a percentage of our revenues this quarter was 26%, in line with the same quarter last year. Our non-GAAP general and administrative expenses were RMB 667 million versus RMB 594 million in the same quarter of 2024. Our research and development expenses were RMB 3.1 billion this quarter on a non-GAAP basis, RMB 3.6 billion on a GAAP basis, up 23% year-over-year. On a GAAP basis, operating profit for the quarter was RMB 25.8 billion versus RMB 32.6 billion in the same quarter last year, down 21% year-over-year. Non-GAAP operating profit was RMB 27.7 billion versus RMB 35 billion in the same quarter last year. Non-GAAP operating profit margin was 27% this quarter, down from 36% from the same quarter last year. The year-on-year decline of operating profit reflects our continued investments in supporting our merchants and ecosystem.

On a GAAP basis operating profit for the quarter was RMB 25 8 billion.

Whereas this RMB said.

Two 6 million in the same call last year.

I'm 21 times per year.

Yes.

non-GAAP non-GAAP operating profit was RMB 27 7 billion.

Speaker #1: Our research and development expenses were $3.1 billion this quarter. Our non-GAAP basis R&D was $3.6 billion on a GAAP basis, up 23 percent year over year.

Versus RMB 35 billion in the same quarter last year.

non-GAAP operating profit margin was 29% this call.

Down from 36% from the same quarter last year.

Speaker #1: On a GAAP basis, operating profit for the quarter was R&D 25 point 8 billion. Versus R&D 30 point 6 billion in the same quarter last year.

The year on year decline of operating profit reflects our continued investment in supporting our margins.

Consistent.

Speaker #1: From 21 percent year over year, non-GAAP operating profit for R&D was $27.7 billion versus $35 billion in the same quarter last year.

Net income attributable to ordinary shareholders was RMB 36 eight.

$8 billion for the quarter.

Compelled to RMB 32 billion in the same quarter last year.

Down 4% year over year.

Speaker #1: Non-GAAP operating profit margin was 27 percent this quarter, down from 36 percent in the same quarter last year. The year-on-year decline in operating profit reflects our continued investments in supporting our merchants and ecosystem.

Basic earnings per ads was RMB 22.01, and diluted earnings per ads was RMB 21 75.

Anticipates earnings per ads of RMB 23, <unk> 14, and diluted earnings per ads of RMB 21, 61, and the same quarter of 2024.

Speaker #1: Netting contributable to all shareholders was R&D $30.68 billion for the quarter, compared to R&D $32 billion in the same quarter last year.

Liu Jing: Net income attributable to all shareholders was RMB 30.8 billion for the quarter, compared to RMB 32 billion in the same quarter last year, down 4% year-over-year. Basic earnings per ADS was RMB 22.01, and diluted earnings per ADS was RMB 20.75 versus basic earnings per ADS of RMB 23.14 and diluted earnings per ADS of RMB 21.61 in the same quarter of 2024. Non-GAAP net income attributable to all shareholders was RMB 32.7 billion versus RMB 34.4 billion in the same quarter last year. Non-GAAP diluted earnings per ADS of RMB 22.07 versus RMB 23.24 in the same quarter of 2024. The net income in Q2 benefited from e-commerce seasonality, and may not represent future earnings, as we remain focused on long-term value creation. The sustained investments may continue to weigh on short-term profitability. That completes the income statements. Now, let me move on to cash flow.

non-GAAP net income attributable to ordinary shareholders was RMB started $2 7 billion.

Does this RMB four 4 billion and the same quarter last year.

Speaker #1: Down 4 percent year over year. This earnings per ETF was R&D 22 point 01 and delivered earnings per ETF was R&D 20 point 75 versus base earnings per ETF of R&D 23 point 14 and delivered earnings per ETF of R&D 21 point 61 in the same quarter of 2024.

non-GAAP diluted earnings per ADR.

So for RMB 22.

Zero.

This is RMB 324 in the same quarter of 2024.

The net income in Q2 benefited from e-commerce seasonality.

To represent future earnings.

That's why we remain focused on long term dollar creation.

Speaker #1: Non-GAAP netting contributable to ordinary shareholders was R&D 32 point 7 billion. Versus R&D 34 point 4 billion in the same quarter last year. Non-GAAP delivered earnings per ETF of R&D 22 point 07 versus R&D 23 point 24 in the same quarter of 2024.

The sustained investments may continue to weigh on short term profitability.

That completes the income statements.

Now, let me move on to cash flow.

Our net cash generated from operating activities was RMB 21 6 billion.

Compared with RMB 43.8.

<unk> 8 billion in the same quarter last year.

Speaker #1: The netting in Q2 benefited from e-commerce seasonality, and we do not represent future earnings as we remain focused on long-term value creation. The sustained investments may continue to weigh on short-term profitability.

As of June 32025.

We have.

RMB 387 1 billion in cash.

Cash equivalents and short term investments.

Thank you this concludes <unk> remarks.

Speaker #1: That completes the income statements. Now, let me move on to cash flow. Our net cash generated from operating activities was R&D $21.6 billion.

Thank you Jane.

Next we will move on to the Q&A session in today's Q&A session, Ladies Kathryn <unk>, who will take questions from analysts on the line we.

Liu Jing: Our net cash generated from operating activities was RMB 21.6 billion, compared with RMB 43.8 billion in the same quarter last year. As of June 30, 2025, we have RMB 387.1 billion in cash equivalent and short-term investments. Thank you. This concludes prepared remarks.

We could take a maximum of two questions from each analyst.

Speaker #1: Compared with R&D of $43.8 billion in the same quarter last year, as of June 30, 2025, we have R&D of $387.1 billion in cash.

And Doug I will answer your questions in Chinese I will help translate for convenience purposes, operator, we're 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 telephone and wait for your name to be announced if you Miss you cancel your request please press the pound or husky.

Speaker #1: Cash equivalents and short-term investments. Thank you, this concludes prepared remarks.

Vince are requested to restrict the number of questions to two at each time.

Speaker #2: Thank you, Jin. Next, we'll move on to the Q&A session. In today's Q&A session, Lei, Jiazhen, and Jun will take questions from analysts on the line.

Chen Lei: Thank you, Jing. Next, we will move on to the Q&A session. In today's Q&A session, Lei, Jiazhen, and Jing will take questions from analysts on the line. We could take a maximum of two questions from each analyst. Lei and Jiazhen will answer questions in Chinese, and we will help translate for convenience purposes. Operator, we are open for questions.

Your first question comes from Alicia Yap with Citigroup. Please go ahead.

Thank you Glen in Shanghai.

Speaker #2: We could take a maximum of two questions from each analyst. Lei and Jiazhen will answer questions in Chinese, and we will help translate for convenience purposes.

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Speaker #2: Operator will open for questions.

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Speaker #1: Thank you, ladies and gentlemen. We will now begin the question-and-answer session. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced.

Operator: Thank you, ladies and gentlemen. We will now begin the question and answer session. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press the pound or hash key. Participants are requested to restrict the number of questions to two at each time. Your first question comes from Alicia Yap with Citigroup. Please go ahead.

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Speaker #1: If you wish to cancel your request, please press the pound or hash key. Participants are requested to restrict the number of questions to two at a time.

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Speaker #1: Your first question comes from Alicia Yak with Citigroup. Please go ahead.

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Speaker #5: Thank you. By any chance, 晚上好, 谢谢接受我的提问。我有两个问题。第一个问题是, 这个季度我们看到电商平台围绕即时零售做了非常大的投入, 然后也掀起了新一轮行业的投入。我们也看到一些内容平台在电商业务上还是持续的加大投入。这体现在这个季度的业绩, 我们公司收入增速和一些其他平台相比其实优势有缩窄。想请管理层谈一下这里主要的原因是什么, 然后公司会用什么样的一个策略来做应对。然后第二个问题是, 今年其实上半年外部环境也发生了非常快速的变化。那经过半年的发展, 公司对未来全球化业务的发展有什么样新的想法? 未来业务模式有哪些新的演化方向呢? 然后从财务表现来看, 全球化业务未来的增长点在哪里? 我们应该如何思考这个增速的目标? 我自己翻译一下。 Thanks, management, for taking my questions. Two questions.

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Liu Jing: see in terms of the business model? From a financial perspective, where do you think the main growth opportunities are for the global business in the future, and how should we think about the growth target? I will translate it myself. Thanks, management, for taking my questions. Two questions. First is that this quarter we saw our e-commerce platform make substantial investment in instant retail, instant shopping, launching a new wave of industry investment. At the same time, we also saw some content platforms also continue to step up their e-commerce effort. So compared to the peers, the lead in the company's revenue growth rate has narrowed this quarter. So could management elaborate on the reasons behind these and how management is thinking about navigating these competitive dynamics? Then the second question is, the external environment has shifted rapidly in the first half of this year.

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Thanks management for taking my questions two questions Firstly Scott.

This quarter, we saw e-commerce platform.

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We also saw some content platforms also continued to step up that e-commerce effort, so compared to the peers. The lead in the company's revenue growth rate has narrow.

This quarter, so could management elaborate on the reasons behind this and how management is thinking about navigating these competitive dynamics.

Speaker #5: First, this quarter we saw our e-commerce platform make substantial investments in instant retail and instant shopping, launching a new wave of industry investment.

And then the second question is the external environment has shifted rapidly in the first half of this year. So looking ahead.

How does management think about the next phase for your global business.

Speaker #5: At the same time, we also saw some content platforms continue to step up their e-commerce efforts. So compared to the peers, the lead in the company's revenue growth rate has narrowed this quarter.

What new directions are evolutions do you see in terms of the business model and then from a financial perspective.

Do you think the main growth opportunities are.

Speaker #5: So, could management elaborate on the reasons behind these and how management is thinking about navigating these competitive dynamics? And then the second question is, the external environment has shifted rapidly in the first half of this year.

How should we think about a growth target. Thank you.

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Speaker #5: So, looking ahead, how does management think about the next phase for your global business? What new directions or evolutions do you see in terms of the business model?

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Liu Jing: So looking ahead, how does management think about the next phase for your global business? What new directions or evolutions do you see in terms of the business model? From a financial perspective, where do you think the main growth opportunities are, and how should we think about the growth target? Thank you.

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Speaker #5: And then, from a financial perspective, where do you think the main growth opportunities are, and how should we think about the growth target? Thank you.

And in the past quarter industrial competition intensified further.

The major market participants invested heavily in new business models.

And again this backdrop our revenue growth slowed further in Q2 operating profit declined meaningfully for the second consecutive quarter.

Speaker #2: ???????????????????????Hello, this is Zhao Jiazhen. Let me take your first question.

Chen Lei: Hello, this is Jiazhen Zhao. Let me take your first question. In the past quarter, industry competition intensified further, as the major market participants invested heavily in new business models. In this backdrop, our revenue growth slowed further in Q2, while operating profit declined meaningfully for the second consecutive quarter. In response to the intensified competition, we will adopt a proactive and long-term approach, taking the competition as an opportunity to strengthen the high-quality development of the platform ecosystem. Accordingly, we have chosen to increase investment and to forego part of the profits in order to create growth opportunities for the SMEs. From management's perspective, we believe this is a responsibility that the platform is best placed to take on and at the same time represents a long-term investment in strengthening our ecosystem.

Speaker #4: 在过去这个季度, 行业竞争进一步的加剧, 我们也看到了主要的市场参与者围绕着新业务的模式投入了大量的资源。那在这个背景下, 公司的二季度的收入增速进一步放缓, 经营利润持续第二个季度出现了比较大幅度的下滑。

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Speaker #2: And in the past quarter, industry competition intensified further. As the major market participants invested heavily in new business models, our revenue growth slowed further in Q2 against this backdrop.

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Speaker #2: While operating profit declined meaningfully for the second consecutive quarter.

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In response to the intensified competition, we will adopt a proactive and long term approach.

Speaker #4: Now,为了应对这样愈发激烈的竞争态势, 平台也将更积极的应对。从长远的眼光, 正向去看待竞争, 我们把行业竞争变成一个良性的促进生态高质量发展的契机。但因此, 平台主动选择加大投入, 牺牲一部分自己的利润, 来为中小商家创造发展的空间。这个在管理层看来是平台应当承担的责任。也是对平台生态发展的长期投资。我们不认为这个季度的利润可以持续, 未来的波动依然会比较大。

The competition is an opportunity to strengthen the high quality development of the platform ecosystem.

Accordingly, we have chosen to increase investment and to forego part of the profit in order to create growth opportunities for the SME merchants.

From management's perspective, we believe this is a responsibility that the platform is best placed to take her.

And at the same time represents a long term investment in strengthening our ecosystem.

Speaker #2: And And in response to the intensified competition, we will adopt a proactive and long-term approach. Taking the competition as an opportunity to strengthen the high-quality development of the platform ecosystem, and then accordingly, we have chosen to increase investment and to forgo part of the profits in order to create growth opportunities for the SME merchants.

We do not believe this quarter's profit level, a sustainable and fluctuations in profitability is likely to continue in the coming quarters.

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Speaker #2: And from management's perspective, we believe this is a responsibility that the platform is best placed to take on. At the same time, this represents a long-term investment in strengthening our ecosystem.

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Currently the industry is going through a critical stage of high quality development.

Speaker #2: We do not believe this quarter's profit level is sustainable, and fluctuations in profitability are likely to continue in the coming quarters.

Chen Lei: We do not believe this quarter's profit levels are sustainable, and fluctuations in profitability are likely to continue in the coming quarters. Currently, the industry is going through a critical stage of high-quality development. We realize that only by taking the initiative and working closely with the supply chain partners can the platform drive sustainable growth for the industry and also achieve high-quality development. Amid the intensifying competition, we will choose to turn our focus on individual merchants and specific merchant support cases to deepen our merchant support measures one case at a time. For example, we are seeing merchants on our platform collaborating with college research teams to design and build smart factories and automated production lines, which are then used to produce high-quality, ready-to-eat, fresh salad products.

We realize that only by taking the initiative, we are working closely with our supply chain partners.

Speaker #4: 当前, 平台已经进入了高质量发展的攻坚期。作为平台, 我们充分的认识到只有主动的作为和产业链供应链密切的协作, 才有可能推动长期行业长期健康增长。实现高质量的发展, 在这个愈发激烈的行业竞争中, 我们选择把注意力放在一个一个具体的商家和案例上, 脚踏实地的把商家扶持做到位。

Ken the platform drive sustainable growth for the industry and also achieve high quality development.

For me the intensifying competition.

We choose to turn our focus on the individual merchant specific merchant support cases to deepen our merchant support measures.

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Speaker #2: Currently, the industry is going through a critical stage of high-quality development. We realize that only by taking the initiative and working closely with the supply chain partners can the platform drive sustainable growth for the industry and also achieve high-quality development.

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Speaker #2: Amid the intensifying competition, we choose to turn our focus on the individual merchants and the specific merchant support cases to deepen our merchant support measures one case at a time.

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For example, we are seeing merchants on our platform collaborating with colleagues research teams to design and.

Speaker #4: 比如说, 我们看到平台上的新制商家, 联合高效技术团队, 设计研发智能工厂和智能的生产线。通过自动化的手段生产高质量的蔬菜沙拉产品, 把过去只有在线下才能够见到的生鲜产品, 通过平台快递送到消费者家中。平台对于这类的科技农产品予以特别的关注。在迁移服务计划下, 重点给予了补贴扶持, 帮助商家迅速增长线上的销量。让消费者得到了实在的实惠。平台在这个过程中也丰富了新制商品的供给。

And build smart factories and automated production lines.

Which are then used to produce high quality ready to eat salad products.

In the past these products could only be found offline.

Now available to consumers through our platform and deliver to their doorsteps.

Pay special attention to these technology enabled agricultural products and provided targeted support under the $100 a core program.

Which held promotions increases online sales offered tangible savings to consumers.

Speaker #2: For example, we are seeing merchants on our platform collaborating with college research teams to design and build smart factories and automated production lines, which are then used to produce high-quality, ready-to-eat fresh salad products.

And at the same time, rather than the supply of high quality innovative products on our platform.

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Speaker #2: In the past, these products could only be found offline and are now available to consumers through our platform, delivered to their doorsteps. The platform pays special attention to this technology-enabled agriculture product and provides targeted support under the $100 billion support program.

Chen Lei: In the past, these products could only be found offline and now available to consumers through our platform and delivered to their doorsteps. The platform pays special attention to these technology-enabled agricultural products and provided targeted support under the $100 billion support program, which helped merchants increase online sales, offered tangible savings to consumers, and at the same time broadened the supply of high-quality, innovative products on the platform. 类似这样三方共赢的案例还有不少, 但是呢, 每一个这样的案例背后, 离不开平台、产业链、供应链的密切协作。我们意识到平台只有深入农产区产业带, 充分调研商家经营的难点、痛点, 才能把反哺生态的工作做大, 把千亿扶持送到有需要的中小商家手里。 There are many more examples of such cases that benefit all parties involved, and each of these cases is made possible only through the close collaboration between the platform, the merchant, and the supply chain.

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So there are many more examples of such cases that benefit all parties involved and each of these cases is made possible only through the close collaboration between the platform and merchants and the supply chain.

Speaker #2: Which helped merchants increase their online sales, offered tangible savings to consumers, and at the same time broadened the supply of high-quality, innovative products on the platform.

We understand that deliver effective support and to ensure that 100 billion support program truly.

Speaker #4: 类似这样三方共赢的案例还有不少, 但是每一个这样的案例背后, 离不开平台、产业链供应链的密切协作。我们意识到平台只有深入农产区产业带, 充分调研商家经营的难点痛点, 才能把反哺生态的工作做大事, 把迁移扶持送到有需要的中小商家手里。

Gets to the SME merchants with needed most we need to go deep into agricultural regions in the industry and carefully understand the pain points and difficulties that merchants are dealing with.

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Speaker #2: Now, there are many more examples of such cases that benefit all parties involved. Each of these cases is made possible only through close collaboration between the platform, the merchants, and the supply chain.

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Speaker #2: We understand that to deliver effective support and to ensure that the $100 billion support program truly gets to the SME merchants who need it most, we need to go deep into agricultural regions and the industry belts, and carefully understand the pain points and difficulties that merchants are dealing with.

Chen Lei: We understand that to deliver effective support and to ensure that the $100 billion support program truly gets to the SME merchants who need it most, we need to go deep into agricultural regions and the industry belts and carefully understand the pain points and difficulties that merchants are dealing with. 那接下来, 面对外部环境的变化, 行业竞争的持续加码, 我们会持续进一步的加大对商家生态的投入。这些因素的叠加, 不可避免的会造成公司短期财务表现的波动。但是长期来看, 只要我们可以把一个一个这样具体的商家办法案例做好, 我们就有信心和商家一起真正实现高质量、可持续的增长。这个也是我们目前应对竞争的想法。 Looking ahead, changes in the external environment and the intensifying competition will inevitably lead us to step our investments in the merchant ecosystem. These factors combined will cause the short-term financial results to fluctuate. However, in the long run, if we execute well on each and every one of these merchant support cases, we are confident in achieving sustainable, high-quality growth together with our merchants. This is how we are approaching today's competitive environment.

And looking ahead of changes in the external environment and intensifying competition.

Inevitably lead us to step up investment in the merchant ecosystem and.

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These factors combined were caused a short term financial results to fluctuate.

However in the longer.

If we execute well on each and every one of these merchant support cases, we are confident in achieving sustainable high quality growth together with a merchant.

This is how we are approaching today's competitive environment.

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Speaker #2: And looking ahead, changes in the external environment and the intensifying competition will inevitably lead us to step up investments in the merchant ecosystem. These factors combined will cause the short-term financial results to fluctuate. However, in the long run, if we execute well on each and every one of these merchant support cases, we are confident in achieving sustainable, high-quality growth together with our merchants.

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Speaker #2: This is how we are approaching today's competitive environment.

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Speaker #4: Alicia, 你好, 我是陈磊。那现在我来回答一下, 就是有关这个全球化业务的问题。

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Speaker #6: Hello, this is Chen Lei. Let me take your questions on our global business.

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Chen Lei: Hello, this is Chen Lei. Let me take your questions on our global business.

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Speaker #4: 我们都看到, 过去的几个季度, 各个国家和地区都有很大的变化。那么全球贸易的结构变化也比较大。那我们在不同的地区短期会有一些波动。但是总体上来说, 我们看到的是消费者的需求稳健, 同时消费者对我们平台的信任也在逐步的加深。那么基于此, 我们会积极的顺应各地方的变化, 快速的做出调整。以满足各个地区不同政策的变化, 以及不同市场消费者多样化的需求。

Analyst: 我们都看到, 过去的几个季度, 各个国家和地区都有很大的变化。全球贸易的结构变化也比较大。我们在不同的地区短期会有些波动, 但是总体上来说, 我们看到的是消费者的需求稳健。同时, 消费者对我们平台的信任也在逐步的加深。基于此, 我们会积极的顺应各个地方的变化, 快速的做出调整, 以满足各个地区不同政策的变化以及不同市场消费者多样化的需求。

We noted that in the past few quarters, we have seen significant changes across countries and regions and also shifts in globally.

We may continue to see some short term volatility in different market. Overall, however, we observed steady consumer demand and consumer trust in our platform is gradually growing.

We will proactively adapt to changes in each region make timely adjustments.

And to meet the changing regulatory requirements of each region as well as the diverse needs of consumers.

Speaker #6: We looked at that in the past few quarters. We have seen significant changes across countries and regions, as well as shifts in the global landscape. We may continue to see some short-term volatility in different markets.

Chen Lei: We noted that in the past few quarters, we have seen significant changes across countries and regions, and also shifts in the global markets. We may continue to see some short-term volatility in different markets. Overall, however, we observe steady consumer demand and consumer trust in our platform is gradually growing. We will proactively adapt to changes in each region, make timely adjustments, and meet the changing regulatory requirements of each region, as well as the diverse needs of consumers.

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Speaker #6: Overall, however, we observe steady consumer demand, and consumer trust in our platform is gradually growing. We will proactively adapt to changes in each region and make timely adjustments.

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Speaker #6: And meet the changing regulatory requirements of each region, as well as the diverse needs of consumers.

But at the same time, our base business is still in its early stages and there is plenty of room for improvement.

Speaker #4: 那么当前全球化业务已经经历了一开始的发展阶段。那我们很欣喜的看到平台上的商品和服务受到了来自世界各地的消费者的正向反馈。那与此同时, 我们的业务才刚刚起步, 能做的更好的地方还有很多。

Analyst: 那么当前呢, 全球化业务呢, 已经经历了一开始的发展阶段。那我们很欣喜的看到, 平台上的商品和服务受到了来自世界各地的消费者的正向反馈。那与此同时呢, 我们的业务才刚刚起步, 那能做的更好的地方还有很多。

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Speaker #6: Now, our global business has gone through an initial phase of growth. We are encouraged to see that our products and services are well-received by consumers around the world.

Chen Lei: Our global business has gone through an initial phase of growth. We are encouraged to see that our products and services are well received by consumers around the world. At the same time, our business is still in its early stages, and there is plenty of room for improvement.

The vision of our global business has always been to bring more high quality products to consumers worldwide.

Speaker #6: But at the same time, our business is still in its early stages, and there is plenty of room for improvement.

Looking ahead, we will continue to invest.

Speaker #4: 那回顾到了我们开始做全球化业务的初心, 那我们是希望能够为世界各地的消费者带去更多的优质好物。那么接下来, 我们还是会围绕着供应链的能力、服务的能力, 以及合规的能力去做更多的投入, 扎实的列好基本功。那么为全球化业务的下一步的发展打好基础。

Analyst: 那回归到了我们开始做全球化业务的初心, 那我们是希望能够为世界各地的消费者带去更多的优质好物。那么接下来呢, 我们还是会围绕着供应链的能力、服务的能力以及合规的能力去做更多的投入, 扎实的练好基本功, 那么为全球化业务的下一步的发展呢打好基础。

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Speaker #6: The vision of our global business has always been to bring more high-quality products to consumers worldwide. Looking ahead, we will continue to invest in our supply chain capabilities, service capabilities, and compliance capabilities to strengthen the fundamentals for the next phase of the global business.

Chen Lei: The vision of our global business has always been to bring more high-quality products to consumers worldwide. Looking ahead, we will continue to invest in our supply chain capabilities, service capabilities, and compliance capabilities to strengthen the fundamentals for the next phase of the global business.

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On the supply chain capabilities, we are continuously strengthening our localized operations working closely with local merchants to diversified product offerings and improved supply stability and delivery efficiency on.

Speaker #4: 那么从供应链能力上, 我们正在持续的加强业务的本地化与和当地的商家一起丰富平台上的商品选择, 增强供给的稳定性, 提高时效性。那么从服务的能力上, 平台正在不断的优化和我们物流合作伙伴的协作模式, 提高履约的体验。那我们的团队正在方方面面憨实自身的能力, 更好的满足世界各地消费者对于我们更高的要求和期望。

Analyst: 那么从供应链能力上呢, 我们正在持续的加强业务的本地化运营, 那么和当地的商家一起呢, 丰富平台上的商品选择, 增强供给的稳定性, 提高时效性。那么从服务的能力上, 平台正在不断的优化和我们物流合作伙伴的协作模式, 提高履约的体验。那我们的团队正在方方面面憨实自身的能力, 更好的满足世界各地消费者对于我们更高的要求和期望。

On the surface capabilities, we are constantly iterate and collaborations with our logistics partners to enhance the human experience we.

We are continuously building our teams capabilities to meet the high expectations of consumers worldwide.

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Speaker #6: On the supply chain capabilities, we are continuously strengthening our localized operations, working closely with local merchants to diversify product offerings and improve supply stability and delivery efficiency.

Chen Lei: On the supply chain capabilities, we are continuously strengthening our localized operations, working closely with local merchants to diversify product offerings and improve supply stability and delivery efficiency. On the service capabilities, we are constantly iterating collaborations with our logistics partners to enhance the fulfillment experience. We are continuously building our team's capabilities to meet the high expectations of consumers worldwide.

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Looking forward the level surfaced. We currently provide is still in its early stage our team will continue to work.

Speaker #6: On the service capabilities, we are constantly iterating collaborations with our logistics partners to enhance the fulfillment experience. We are continuously building our team's capabilities to meet the high expectations of consumers worldwide.

Day by day through the continuous improvement in the surface quality, we hope to win over more and more consumers. Thank you for your questions.

Speaker #4: 那么像未来展望, 我们现在所提供的服务水平, 那么仍然处于比较初级的阶段。那么团队会进一步的努力, 日复一日, 通过不断的提升服务的品质, 来让更多的消费者来选择我们。谢谢。

Analyst: 那么向未来转换呢, 我们现在所提供的服务水平, 那么仍然处于比较初级的阶段。那么团队会进一步的努力, 日复一日通过不断的提升服务的品质, 来让更多的消费者来选择我们。谢谢。

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Thomas Chong with Jefferies.

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Speaker #6: Looking forward, the level of service we currently provide is still in its early stage. Our team will continue to work hard. Day by day, through the continuous improvement in service quality, we hope to win over more and more consumers.

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Chen Lei: Looking forward, the level of service we currently provide is still in its early stage. Our team will continue to work hard day by day through the continuous improvement in service quality. We hope to win over more and more consumers. Thank you for your questions.

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Speaker #6: Thank you for your questions.

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Speaker #1: Thank you. Your next question comes from Thomas Chong with Jefferies.

Liu Jing: Thank you. Your next question comes from Thomas Chung with JetBraze.

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Speaker #4: 晚上好, 谢谢管理层介绍我的提问。我有两个问题, 第一个是公司推出迁移服务期计划一个季度以来, 在业务运营方面管理层看到一些什么样的改变? 从财务表现来看, 本季度业绩在哪些指标上受到迁移服务期计划的影响? 从中长期来看, 这个战略举措对公司的变现率、费用投放会带来什么样的变化? 我们另外一个问题是关于公司如何看多多买菜, 这个业务的板块。我们看到公司主要的竞争对手已经从一些市场退出, 公司未来对这个板块有什么样的规划? Thanks, management, for taking my question. My first question is about, since the launch of the 100 billion support program last quarter, what are the key changes that management has observed in your business operations?

Analyst: 晚上好, 谢谢管理层介绍我的提问。我有两个问题。第一个是公司推出千亿扶持计划, 一个季度以来, 在业务运营方面, 管理层看到一些什么样的改变? 从财务表现来看, 本季度业绩在哪些指标上受到千亿扶持计划的影响? 从中长期来看, 这个战略举措对公司的变现率、费用投放会带来什么样的变化? 另外一个问题是关于公司如何看多多买菜这个业务的板块, 我们看到公司主要的竞争对手已经从一些市场退出, 公司未来对这个板块有什么样的规划? Thanks management for taking my question. My first question is about, since the launch of the $100 billion support program last quarter, what are the key changes that management has observed in your business operations? From a financial perspective, how is the impact of these investments shown in your financial performance? On a mid to long-term horizon, what will this affect the company's monetization and spending? My second question is about, what's the company's view on the Dodo Grocery business? We noticed that some of the company's main competitors in this business have exited certain markets. What are the company's future plans for this business? Thank you.

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Thanks management for taking my question.

First question is about since the launch of the 100 billion support program last quarter. What are the key changes that management has observed in your business operations from a financial perspective, how big is the impact of these investments shown in your financial performance.

And on the mid to long time horizon of what will affect the companys monetization and spending.

My second question is about what's the company's view on the total or should we business. We noticed that some of the company's main competitors in this business have exited certain markets one of the company's future plans for this business. Thank you.

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Speaker #4: From a financial perspective, how is the impact of these investments shown in your financial performance? And on a mid- to long-term horizon, how will these affect the company's monetization and spending?

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Speaker #4: My second question is about the company's view on the door-to-grocery business. We noticed that some of the company's main competitors in this business have exited certain markets.

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Speaker #4: What are the company's future plans for this business? Thank you.

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And since the second half of last year with escalating competition and accelerating changes in the external environment. We have scaled up the commission reductions across the platform initiatives such as the $10 billion reduction initiative, the new quality merchants support program and the logistics support initiatives have been road.

Speaker #2: ??, Thomas, ????????????????????Hi, thank you, Thomas. This is Zhao Jiazhen. Let me answer your first question.

Jiazhen Zhao: 你好, 托马斯。我是赵佳珍。我来回答一下你的第一个问题。

Jiazhen Zhao: Hi, thank you, Thomas. This is Jiazhen Zhao. Let me answer your first question.

Speaker #4: 去年下半年以来, 行业竞争进一步的加剧。外部环境也在加速变化。那我们加大了平台对商家整体的降费的规模。那我们也相继的推出平台的百亿减免、新制商家扶持计划、电商吸进等这个举措。那来全方位的降低商家的经营成本, 助力商家经营的极致增效。

Jiazhen Zhao: and efficiency in their operations.

Out to lower merchant operating costs and help drive efficiencies.

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Speaker #2: And since the second half of last year, with escalating competition and accelerating changes in the external environment, we have scaled up commission reductions across the platform.

Jiazhen Zhao: Since the second half of last year, with escalating competition and accelerating changes in the external environment, we have scaled up commission reductions across the platform. Initiatives such as the $10 billion fee reduction initiative, the new quality merchant support program, and the logistics support initiatives have been rolled out to lower merchants' operating costs and help drive efficiencies.

And earlier this year the management unanimously decided to launch the <unk> support program.

Speaker #2: Initiatives such as the $10 billion fee reduction initiative, the new quality merchant support program, and the logistics support initiatives have been rolled out to lower merchants' operating costs and help drive efficiencies.

Next strategic initiative, dedicating significant resources and sacrificing the platforms profit to cultivate a sustainable and healthy pipeline platform ecosystem.

Speaker #4: 今年以来, 经过管理层的一致决定, 平台推出了迁移扶持的惠商计划。那作为我们下一个阶段的战略决定, 在接下来的一段时间内, 投入大量的资源扶持加码高质量电商生态建设, 牺牲一部分平台的利润, 培养长期健康的平台生态。

Jiazhen Zhao: 今年以来, 经过管理层的一致决定, 平台推出了千亿扶持的会商计划。作为我们下一个阶段的战略决定, 在接下来的一段时间内投入大量的资源扶持, 加码高质量电商生态建设, 牺牲一部分平台的利润, 培养长期健康的平台生态。

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Speaker #2: And earlier this year, the management unanimously decided to launch the $100 billion support program as our next strategic initiative, dedicating significant resources and sacrificing the platform's profits to cultivate a sustainable and healthy platform ecosystem.

Jiazhen Zhao: Earlier this year, the management unanimously decided to launch the $100 billion support program as our next strategic initiative, dedicating significant resources and sacrificing the platform's profits to cultivate a sustainable and healthy platform ecosystem.

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The 100 billion support program is very broad in scope, we focus on our support measures where immersion is needed most.

Speaker #4: 迁移扶持的这个计划的含义非常广泛。那我们是看到商家需要什么样的支持, 就在这方面加大投入。过去一季度, 我们看到迁移扶持计划的效用逐渐的释放, 比如说在农业领域, 那迁移扶持计划依托2025多多好特展的专项行动, 扩大农产区班夫商家范围, 深入了数百个优质农产区。帮助优质商家探索农货上行的新模式, 助力农产区提升附加值, 推动这个农产业的正常增收。

Jiazhen Zhao: and promoted the normal increase in income of the agricultural industry.

Over the past quarter, we have begun to see some of the early effect.

Instance, in agriculture sector relaunched 295 total premium produce initiative.

Lending support to merchants across countries of high quality agricultural regions.

It helped our merchant explore new ways to bring agriculture products online.

Increase the added value captured by the merchant and drive higher production and income.

No.

Speaker #2: The $100 billion support program is very broad in scope. We focus on our support measures where merchants need it most. Over the past quarter, we have begun to see some of the early effects.

Jiazhen Zhao: The $100 billion support program is very broad in scope. We focus on our support measures where merchants need it most. Over the past quarter, we have begun to see some of the early effects. For instance, in the agriculture sector, we launched the 2025 Dodo Premium Produce Initiative, expanding support to merchants across hundreds of high-quality agricultural regions. It helped our merchants explore new ways to bring agricultural products online, increase the added value captured by the merchants, and drive higher production and income.

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Speaker #2: For instance, in the agriculture sector, we launched the 2025 Door-to-Premium Produce Initiative, expanding support to merchants across hundreds of high-quality agricultural regions. It helped our merchants explore new ways to bring agricultural products online, increase the added value captured by the merchants, and drive higher production and income.

And beyond agriculture, our dedicated teams for a new quality merchant support program also visited hundreds of manufacturing belts, assisting more SME merchants with their transformation and accelerating the manufacturers shift towards high quality development.

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Speaker #4: 除了针对这个农业商家的扶持, 我们的新制商家的扶持计划的专项团队也来到了上百个新制产业带。助力更多的中小商家完成新制转型, 推动产业带加速转向高质量发展。

Jiazhen Zhao: 那除了针对这个农业商家的扶持, 我们的新制商家的扶持计划的专项团队也来到了上百个新制产业带, 助力更多的中小商家完成新制转型, 推动产业带加速转向高质量发展。

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Speaker #2: And beyond agriculture, our dedicated teams for the new quality merchant support program also visited hundreds of manufacturing belts, assisting more SME merchants with their transformation and accelerating the manufacturers' shift towards high-quality development.

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Jiazhen Zhao: Beyond agriculture, our dedicated teams for a new quality merchant support program also visited hundreds of manufacturing belts, assisting more SME merchants with their transformation and accelerating the manufacturers' shift towards high-quality development.

By now it is already done.

And similarly to our logistics support initiatives.

The platform wave to shipping fees from currency warehouses to final destination for orders shifting to remote regions.

Speaker #4: 那又比如说, 这个依托电商吸进计划, 通过偏远地区物流中转费减免的政策, 商家仅需要支付正常的运费, 就可以把商品销售到偏远地区, 大大拓宽了商品的销路。在为商家降本增效的同时, 也激活了区域的消费潜力。也使得优质的商品能够直达更多用户, 更广泛的惠及消费者。

Jiazhen Zhao: 那又比如说呢, 这个依托电商吸金计划, 通过偏远地区物流中转费减免的政策, 商家仅需要支付正常的运费, 就可以把商品销售到偏远地区, 大大拓宽了商品的销路。在为商家降本增效的同时, 也激活了区域的消费潜力, 也使得优质的商品能够直达更多用户, 更广泛的汇集消费者。

Allowing the merchants to sell their products to these regions by paying only that youre shipping fees with.

Which significantly expanded our market reach.

This initiative not only brought down costs and improving efficiency for merchants, but also stimulated regional consumption.

And allow us high quality products to reach more consumers and benefitting the wider consumer base.

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Speaker #2: And similarly, through our logistics support initiatives, the platform waived shipping fees from transit warehouses to the final destination for orders shipping to remote regions.

Jiazhen Zhao: Similarly, through our logistics support initiatives, the platform waived shipping fees from transit warehouses to final destination for orders shipping to remote regions, allowing the merchants to sell their products to these regions by paying only the usual shipping fees, which significantly expanded the market reach. This initiative not only brought down cost and improved efficiency for merchants, but also stimulated regional consumption and allowed high-quality products to reach more consumers, benefiting the wider consumer base.

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Speaker #2: Allowing the merchants to sell their products to these regions by paying only the usual shipping fees significantly expanded the market reach. This initiative not only brought down costs and improved efficiency for merchants, but also stimulated regional consumption and allowed high-quality products to reach more consumers.

Going forward, we will continue to do our best to understand their pain points and difficulties faced by our merchant.

Through the 100 billion support programs increase our investments to deliver targeted at a meaningful support to deepen our support to the merchant ecosystem.

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Speaker #2: Benefiting the wider consumer base.

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Speaker #4: 接下来, 我们会持续的深入了解商家经营的痛点和难点, 在迁移扶持的计划下, 开发出有针对性、有诚意的班夫措施, 持续加大投入, 把反哺平台生态做大事。

Jiazhen Zhao: 那接下来呢, 我们会持续的深入了解商家经营的痛点和难点。在千亿扶持的计划下, 开发出有针对性、有诚意的帮扶措施, 持续加大投入, 把反哺平台生态做大。

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Speaker #2: Going forward, we'll continue to do our best to understand the pain points and difficulties faced by our merchants. Through the $100 billion support program, we will increase our investment to deliver targeted and meaningful support to deepen our commitment to the merchant ecosystem.

Jiazhen Zhao: Going forward, we will continue to do our best to understand the pain points and difficulties faced by our merchants, and through the $100 billion support program, increase our investments to deliver targeted and meaningful support to deepen our support to the merchant ecosystem.

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Speaker #4: 从财务的角度来看, 过去一个季度, 我们围绕着上面介绍的几个方面做出的一系列的投入。那必然导致收入增速放缓, 利润同比下降。那这个确实是平台以真金白银扶持商家的结果。接下来, 我们将持续加大投入, 为商家的发展创造空间, 创造长期更健康的平台生态。那因此, 我们不认为这个季度的利润可以持续, 未来的波动依旧会比较大。

Jiazhen Zhao: 那从财务的角度来看呢, 过去一个季度, 我们围绕着上面介绍的几个方面做出的一系列的投入, 那必然导致收入增速放缓, 利润同比下降。那这个确实是平台以真金白银扶持商家的结果。接下来呢, 我们将持续加大投入, 为商家的发展创造空间, 创造长期更健康的平台生态。那因此呢, 我们不认为这个季度的利润可以持续, 未来的波动呢, 依旧会比较大。

This reflects the platform's commitment to investing substantial resources to support merchants.

We will continue to ramp up our investments to enable merchants to thrive.

While building, a more sustainable and robust platform ecosystem.

As such we do not believe this quarter's profit are sustainable there will be fluctuations in profitability in the coming quarters.

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Speaker #2: From a financial perspective, the investments made over the past quarter have resulted in slower revenue growth and a year-on-year profit decline. This reflects the platform's commitment to investing substantial resources to support merchants.

Jiazhen Zhao: From a financial perspective, the investments made over the past quarter have resulted in slower revenue growth and year-on-year profit decline. This reflects the platform's commitment to investing substantial resources to support merchants. We will continue to ramp up our investments to enable merchants to thrive while building a more sustainable and robust platform ecosystem. As such, we do not believe this quarter's profits are sustainable. There will be fluctuations in profitability in the coming quarters.

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Speaker #2: We will continue to ramp up our investments to enable merchants to thrive while building a more sustainable and robust platform ecosystem. As such, we do not believe this quarter's profits are sustainable.

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Speaker #2: There will be fluctuations in profitability in the coming quarters.

Speaker #4: 还要关于你第二个关于买菜的问题, 那我也来继续回答一下。

Jiazhen Zhao: 那还有关于你第二个关于买菜的问题哈, 那我也来继续回答一下。

The competition chose to exit the business at this culture to concentrate on investing in new business models.

Speaker #2: And about your second question on door-to-grocery.

Jiazhen Zhao: About your second question on Dodo Grocery.

So to US this is not the time to relax we need to further increase investments based on our own business model.

Speaker #4: 首先, 买菜是一个比较苦的业务, 那确实需要长期的大量的投入。竞争对手选择在这个时候退出, 集中力量去投入新模式业务, 但是对于我们来说, 我们不能松懈。而是要进一步的加大符合我们业务规划的投入, 用钉钉子的精神去应对行业竞争加剧对于我们业务上造成的冲击。

Jiazhen Zhao: industry competition on our business with a persistent spirit.

Address the impact from the intensifying competition with relentless execution.

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Speaker #2: And first of all, door-to-grocery is a hard business. Requiring significant long-term investments, the competition chose to exit the business at this juncture to concentrate on investing in new business models.

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Jiazhen Zhao: Dodo Grocery is a high business, requiring significant long-term investment. The competition chose to exit the business at this juncture to concentrate on investing in new business models. But to us, this is not the time to relax. We need to further increase investments based on our own business model and to address the impact from the intensifying competition with relentless execution.

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Speaker #2: But to us, this is not a time to relax. We need to further increase investments based on our own business model and address the impacts from the intensifying competition with relentless execution.

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And we're evaluating whether to pursue new business. The first question that comes to US is always whether we can create.

Speaker #4: 那就买菜业务来说, 一直以来我们在评估是否要做一个业务的时候, 首先是问自己是否可以创造自己的独特的价值。公司在2020年启动度的买菜业务的时候也提到, 我们把多多买菜看作是一个电商业务的自然延伸。我们启动这个业务的初心, 也是看到平台用户对于生鲜品类有实在的需求, 而传统电商的供应链无法很好的满足这部分需求。

Jiazhen Zhao: 那就买菜业务来说, 一直以来我们在评估是否要做一个业务的时候, 首先是问自己是否可以创造自己的独特的价值。公司在2020年起启动多多买菜业务的时候也提到, 我们把多多买菜看作是一个电商业务的自然延伸。我们启动这个业务的初心, 也是看到平台用户对于生鲜品类有实在的需求, 而传统电商的供应链呢, 无法很好的满足这部分需求。

Unique value.

We launched a total grocery business in 2020, we viewed it as a natural extension of our E Commerce operations.

Initial reason for us to start this business, we're seeing the traditional e-commerce supply chain struggled to meet that demand for fresh produce.

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Speaker #2: As to the door-to-grocery business itself, when evaluating whether to pursue a new business, the first question that comes to us is always whether we can create our unique value.

Jiazhen Zhao: Back to the Dodo Grocery business itself, when evaluating whether to pursue a new business, the first question that comes to us is always whether we can create our unique value. When we launched the Dodo Grocery business in 2020, we viewed it as a natural extension of our e-commerce operations. The initial reason for us to start this business was seeing that traditional e-commerce supply chains struggle to meet the users' demand for fresh produce.

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Speaker #2: When we launched the door-to-grocery business in 2020, we viewed it as a natural extension of our e-commerce operations. The initial reason for us to start this business was seeing that traditional e-commerce supply chains struggle to meet users' demand for fresh produce.

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For example, so to refresh products incur significant spoilage during traditional ecommerce fulfillment.

In response to these pain points, we decided to increase our investments in the supply chain to better match demand and local supply during the supply chain suited for agricultural and fresh product and creating value for both users and merchants in terms of product variety and fulfillment efficiency.

Speaker #4: 比如说, 有一些生鲜产品在传统电商的运输环节会发生比较大的损耗, 看到这些痛点之后, 我们才决定从供应链和货源上加大投入, 来更好的匹配本地需求。构建一个符合农产品生鲜产品的供应链, 在品类、履约效率等方面, 为用户和商家创造价值。

Jiazhen Zhao: 那比如说, 有一些生鲜产品在传统电商的运输环节会发生比较大的损耗。看到这些痛点之后呢, 我们才决定从供应链和货源上加大投入, 来更好的匹配本地需求, 构建一个符合农产品、生鲜产品的供应链。在品类、履约效率等方面为用户和商家创造价值。

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Speaker #2: Certain fresh products incur significant spoilage during traditional e-commerce fulfillment. In response to these pain points, we decided to increase our investments in the supply chain to better map demand and local supply.

Jiazhen Zhao: For example, certain fresh products incur significant spoilage during traditional e-commerce fulfillment. In response to these pain points, we decided to increase our investments in the supply chain to better match demand and local supply, building a supply chain suited for agriculture and fresh products, and creating value for both users and merchants in terms of product variety and fulfillment efficiency.

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After five years of investment total grocery now covers 70% of villages.

Speaker #2: Building a supply chain suited for agricultural and fresh products, and creating value for both users and merchants in terms of product variety and fulfillment efficiency.

<unk> addressing large market delivery challenges in many areas and meeting consumer demand for high quality affordable products at the same time, we have established an efficient agricultural product distribution network.

Speaker #4: 那经过近五年的投入, 这个目前多多买菜的起货点已经覆盖了超过全国的70%的行政村, 解决了不少地区的这个最后一公里的配送难题。满足了消费者对于物美价廉上面的需求。同时, 我们也构建起了一张农副产品流通的高效网络, 帮当地农户和中小商家对接到当地的消费者, 也拓宽了销路。

Jiazhen Zhao: local consumers and broaden their sales channels.

King local farmers and SME merchants with local consumers and expanding the market reach.

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Speaker #2: After five years of investments, our door-to-grocery now covers 70 percent of villages nationwide, addressing last-mile delivery challenges in many areas and meeting consumer demand for high-quality, affordable products.

Jiazhen Zhao: After five years of investment, Dodo Grocery now covers 70% of villages nationwide, addressing last-mile delivery challenges in many areas and meeting consumer demand for high-quality, affordable products. At the same time, we have established an efficient agricultural product distribution network, connecting local farmers and SME merchants with local consumers and expanding their market reach.

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Speaker #2: At the same time, we have established an efficient agricultural product distribution network, connecting local farmers and SME merchants with local consumers and expanding the market reach.

Since the beginning of this year with a 100 billion support program.

AUM has increased support in traffic allocation to remote regions.

Regions, where total grocery services were recently launched.

Speaker #4: 今年以来, 在迁移扶持计划的加持下, 平台向偏远地区加大了补贴和流量的倾斜力度。一些地区近期开通多多买菜业务之后, 快速的丰富了当地的商品供给。普惠消费圈的半径持续加大。满足当地消费者对于消费升级的需求。与此同时, 买菜业务也在当地创造了更多有竞争力的就业机会, 推动社区就业的稳步发展。

Jiazhen Zhao: local area, promoting the steady development of community employment.

Local product offerings have greatly improved and expanding the reach of inclusive consumption network to meet local consumers' growing demand for better products.

And Meanwhile, the grocery business has created competitive local employment opportunities contributing to the economic growth in these communities.

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Speaker #2: Thanks to the beginning of this year, with the $100 billion support program, the platform has increased support and traffic allocation to remote regions. In regions where door-to-grocery services were recently launched, local product offerings have greatly improved, expanding the reach of inclusive consumption networks to meet local consumers' growing demand for better products.

Jiazhen Zhao: Since the beginning of this year, with the $100 billion support program, the platform has increased support and traffic allocation to remote regions. In regions where Dodo Grocery services were recently launched, local product offerings have greatly improved and expanded the reach of an inclusive consumption network to meet local consumers' growing demand for better products. Meanwhile, the grocery business has created competitive local employment opportunities, contributing to the economic growth in these communities.

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As I just mentioned while ago, the grocery business will require substantial investment.

We believe it is quite meaningful.

Speaker #2: And meanwhile, the grocery business has created competitive local employment opportunities, contributing to the economic growth in these communities.

Continuing to increase our investments.

Going forward well.

Even our long term commitments across product supply service quality and delivery efficiencies for the total cost of your business.

Speaker #4: 就像我刚才说的, 这是一个需要持续大量投入的业务, 但是我们觉得很有意义。我们会进一步的加大投入, 接下来我们会进一步从产品的品类、服务质量、生活时效等方面脚踏实地的做更多的长期投入。为消费者和产业链参与者带去实在的价值。谢谢。

Jiazhen Zhao: supply chain participants. Thank you.

Creating tangible benefits for consumers and supply chain participant.

Thank you for your question.

Thank you.

Okay.

Thank you. Thank you Thomas and then.

I think we have time for one more analyst. Thank you.

Speaker #2: As I just mentioned, while the door-to-grocery business requires substantial investment, we believe it is quite meaningful, and we will continue to increase our investments.

Jiazhen Zhao: As I just mentioned, while Dodo Grocery business requires substantial investment, we believe it is quite meaningful. We will continue to increase our investments. Going forward, we will deepen our long-term commitments across product supplies, service quality, and delivery efficiency for the Dodo Grocery business, creating tangible benefits for consumers and supply chain participants. Thank you for your question.

Sure.

Thank you Joyce Yang with Bank of America.

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Speaker #2: And going forward, we'll deepen our long-term commitments across product, supplies, service quality, and delivery efficiency for the door-to-grocery business, creating tangible benefits for consumers and supply chain participants.

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Speaker #2: Thank you for your question.

Speaker #4: Thank you.

Analyst: Thank you.

Speaker #2: Okay. Thank you. Thank you, Thomas. And then I think we have time for one more analyst. Thank you.

Jiazhen Zhao: Okay.

Liu Jing: Sure, next question.

Jiazhen Zhao: Thank you. Thank you, Thomas. I think we have time for one more analyst. Thank you.

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Speaker #1: Thank you. Joyce Chu with Bank of America. Hey, 磊家珍君, 凯瑞晚上好。感谢接受我的提问。我的第一个问题是刚刚那个, 其实Thomas问题的follow up, 就是因为其实在上季度的业绩会上, 管理层也多次提到过我们的投资和回报周期之间的错配问题, 也指出这个是一季度当时利润下滑的一个主要的原因之一。那么从二季度的业绩来看, 其实我们公司的费用率和利润率似乎都有企稳的趋势。就是想聊, 但刚刚公司也提到, 我们可能整个投入还是一个比较长的周期。就想问一下公司的投入规模或者说是整个周期是不是现在已经趋于稳定。我们应该怎么去思考公司在短期和长期的利润率的趋势? 然后我的第二个问题是, 最近我们从个别的行业指标上也观察到了一些消费需求改善的迹象。不知道多多在这方面有没有一些新的观察和趋势可以和我们分享。管理层怎么看宏观需求在三四季度的这个趋势表现? 谢谢。Let me translate my questions.

Operator: Thank you. Joyce Chu with Bank of America.

Liu Jing: improving consumer demand from individual industry indicators. Does PDD Holdings have any new observations and trends to share in this regard? How does management view the performance of macro demand in Q3 and Q4? Thank you. Let me translate my questions. First, in last quarter's earnings, company management mentioned the mismatch between investment cycles and the return cycle was a primary cause of the profit decline in the first quarter. Looking at the Q2 results, it seems the company's expense ratio and profit margin levels show signs of stabilization. I just wonder, does it indicate the company's investment cycle has already stabilized? How should we actually expect the profit margin trends going forward, both long-term and short-term? My second question is, recently we have seen some signs of improving consumer demand from some industry data. Has management observed a similar trend lately?

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Let me translate my questions first in last quarter's earnings call management mentioned, the mismatch between investment cycles and the return cycle with a primary cause of the profit decline in the first quarter looking at the second quarter was out it seems companies expense ratio am profit margin levels.

No signs of stabilization.

Just wonder does it indicate like the companies in that sense I call. It has already stabilized.

And how should we actually expect a profit margin trends going forward. Both longtime are short time.

My second question is recently, we have seen some signs of improving consumer demand from some industry data.

Speaker #1: First, in last quarter's earnings call, management mentioned that the mismatch between investment cycles and the return cycle was a primary cause of the profit decline in Q1.

Management does to a similar trial lately.

Update on consumer sentiment or behaviors will be appreciated and how does management view on macro trends and the absurd and fourth quarter I guess, yeah. Thank you very much.

Speaker #1: Looking at the second quarter results, it seems companies' expense ratios and profit margin levels show signs of stabilization. I just wonder, does this indicate that the company's investment cycle has already stabilized?

Hello, guys. This is James I would take your first questions.

First of all for our processing Q2 benefited from e-commerce seasonality and so this quarter it may not represent.

Speaker #1: And how should we actually expect the profit margin trends going forward, both long-term and short-term? My second question is, recently we have seen some signs of improving consumer demand from some industry data.

Your earnings.

And if we're looking at the numbers, our Q2 revenue growth slowed to 7%.

Speaker #1: Has management observed a similar trend lately? Any updates on consumer sentiment or behaviors will be appreciated. And how does management view macro trends in the third and fourth quarters this year?

And our poor.

Operating profits, 12% to 21% will believe there are several reasons for this first.

Liu Jing: Any updates on consumer sentiment or behaviors will be appreciated. How does management view macro trends in the third and fourth quarter this year? Thank you very much.

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Speaker #1: Thank you very much.

Speaker #5: Hello, Joyce. This is Jun. I would take your first questions. First of all, our profits in Q2 benefited from e-commerce seasonality. As such, this quarter may not represent future earnings, and we're looking at the numbers.

Liu Jing: Hello, Joyce. This is Jing. I will take your first questions. First of all, our profits in Q2 benefited from e-commerce seasonality, so this quarter may not represent future earnings. If we are looking at the numbers, our Q2 revenue growth further slowed to 7%, and our operating profit dropped to 21%. We believe there are several reasons for this. First, under the PDD Holdings, the platform has increased its investment to support merchants, which naturally impacts profitability. Second, intensified industry competition continues to create challenges for our merchants and the platform. To help merchants navigate market cycles, the platform will continue to scale up investments. Q2 profit levels should not be seen as a reference for future performance. We do not believe this quarter's profit level is sustainable. Fluctuations in profitability in the coming quarters.

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Intensified industry competition continue to create challenges for our versions and a platform.

So to help merchants navigate market cycles. The platform, we continue to scale up investments.

Speaker #5: Our Q2 revenue growth further slowed to 7%. Operating profits dropped 21%. We believe there are several reasons for this. First, under the program, the platform has increased its investment to support merchants.

So Q2 profit levels should not be seen as a reference for future performance.

We do not believe this quarter's profit level is sustainable.

Operations in profitability in the coming quarters.

Speaker #5: Which naturally impacts profitability. Second, intensified industry competition continues to create challenges for our merchants and the platform. To help merchants navigate market cycles, the platform will continue to scale up investments.

As we have communicated in Paris.

And the current market environment, increasing platform investment to help merchants through the cycles as a responsibility the platform can and must take home.

Leave that this investment will create a healthier merchant ecosystem in the long run.

Speaker #5: So Q2 profit levels should not be seen as a reference for future performance. We do not believe this quarter's profit level is sustainable. There may be fluctuations in profitability in the coming quarters.

Our focus remains on long term value creation.

Rather than short term financial performance.

Les and Joe just mentioned, we will be continuing to increase.

Thank you.

Speaker #5: As we have communicated in past and current market environments, increasing platform investment to help merchants through the cycles is a responsibility that the platform can and must take on.

Liu Jing: As we have communicated in the past, in the current market environment, increasing platform investment to help merchants through the cycles is a responsibility the platform can and must take on. We believe that these investments will create a healthier merchant ecosystem in the long run. Our focus remains on long-term value creation rather than short-term financial performance. As Chen Lei and Zhao Jiazhen just mentioned, we will continue to increase our investment. Thank you.

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Speaker #5: We believe that this investment will create a healthier merchant ecosystem in the long run. Our focus remains on long-term value creation, rather than short-term financial performance.

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China's consumer market demonstrates with multiple potential end review this and driven by sustained poor consumption policies. We have observed steady growth in the overall retail sales alongside a continuous rise.

Speaker #5: As Lei and Jiazhen just mentioned, we will continue to increase our... Thank you.

Speaker #4: 你好, 我是张亚珍。由我来回答你的第二个问题。

Jiazhen Zhao: 你好，我是赵 Jiazhen。由我来回答你的第二个问题。

On our retail penetration.

We remain very confident in overall potential of China's consumer market.

Speaker #2: Hi, this is Zhao Jiazhen. Let me answer your second question.

Jiazhen Zhao: Hi, this is Jiazhen Zhao. Let me answer your second question.

Speaker #4: 中国的消费市场是一个非常有潜力和韧性的。在这个持续促消费的政策的推动下, 我们确实看到整体的零售大盘在平稳上升。线上的零售渗透率也在不断的提升。我们对整体中国消费市场的潜力还是有信心的。

Jiazhen Zhao: 那中国的消费市场呢, 是一个非常有韧、潜力和韧性的。在这个持续促消费的政策的推动下呢, 我们确实看到整体的这个零售大盘在平稳上升, 线上的零售渗透率呢, 也在不断的提升。我们对整体中国消费市场的潜力还是有信心的。

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Speaker #2: China's consumer market demonstrates remarkable potential and resilience. Driven by sustained pro-consumption policies, we have observed steady growth in overall retail sales. Alongside the continuous rise in online retail penetration, we remain very confident in the overall potential of China's consumer market.

Jiazhen Zhao: China's consumer market demonstrates remarkable potential and resilience. Driven by sustained pro-consumption policies, we have observed steady growth in overall retail sales, alongside a continuous rise in online retail penetration. We remain very confident in the overall potential of China's consumer market.

However from an industry structure perspective, we are seeing escalating competition and it is increasingly convenient for consumers to switch between different platforms.

And the competitive landscape is at risk of being reshaped.

And in this environment the platform must take a more proactive role by increasing investment.

Speaker #4: And从这个行业结构来看, 大家的竞争是在不断的加剧。消费者在不同平台之间的切换也更加的方便了。竞争格局存在被重塑的风险。在这样的环境中, 就需要平台更加主动的有所作为。这势必需要加大投入。

Jiazhen Zhao: 然后呢, 从这个行业结构来看, 大家的竞争是在不断的加剧, 消费者在不同平台之间的切换呢, 也更加的方便了。竞争格局呢, 存在被重塑的风险。在这样的环境中呢, 就需要平台更加主动的有所作为, 这势必需要加大投入。

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Speaker #2: However, from an industry structure perspective, we are seeing escalating competition, and it is increasingly convenient for consumers to switch between different platforms. The competitive landscape is at risk of being reshaped.

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Jiazhen Zhao: However, from an industry structure perspective, we are seeing escalating competition. It is increasingly convenient for consumers to switch between different platforms, and the competitive landscape is at risk of being reshaped. In this environment, the platform must take on a more proactive role by increasing investments.

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Speaker #2: And in this environment, the platform must take on a more proactive role by increasing investments.

But other than that.

And during the June 18th shopping festival in Q2, we not only provided substantial support to a high quality agriculture, and industrial Brad, but also offered extra coupons to consumers to provide consumers more savings for every year shopping needs.

Speaker #4: 在二季度的618大促中, 平台一方面投入了海量的真金白银补贴优质农货、国货, 另一方面也向消费者发放了超额的消费券。帮助消费者以更大的优惠实现年终囤货的需求。那在大促期间, 参与百亿补贴多项活动的农货商家、新制商家同比实现翻倍增长。也助力了多个类目的中小商家实现了新的突破。比如美妆、护肤、母婴宠物等品类, 也通过百亿补贴也实现了不错的增长。

Jiazhen Zhao: power during the promotion period.

During the promotion number of agricultural and new quality merchants participating in the 10 billion program doubled.

Operator: 参与百亿补贴多项活动的农货商家、新制商家同比实现翻倍增长, 也助力了多个类目的中小商家实现了新的突破。比如美妆、护肤、母婴、宠物等品类也通过百亿补贴也实现了不错的增长。

I believe many SME merchants across.

Multiple categories to reach new milestones and Moreover, categories, such as beauty skincare maternity and baby and pet supplies also experienced good growth through the promotion.

Speaker #2: And during the June 18 shopping festival in Q2, we not only provided substantial support to high-quality agriculture and national brands, but also offered extra coupons to consumers.

Chen Lei: Q1 and the June 18 Shopping Festival in Q2, we not only provided substantial support to high-quality agriculture and national brands, but also offered extra coupons to consumers to provide consumers more savings for their mid-year shopping needs. During the promotion, the number of agricultural and new quality merchants participating in the 10 billion program doubled, enabling many SME merchants across multiple categories to reach new milestones. Moreover, categories such as beauty, skincare, maternity and baby, and pet supplies also experienced good growth through the promotion.

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Speaker #2: To provide consumers with more savings for their mid-year shopping needs, and during the promotion, the number of agriculture and new quality merchants participating in the $10 billion program doubled.

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The 2025 go to a premium Proteus program has reached hundreds of high quality agricultural regions, helping high quality agricultural products reached urban consumers for example, leashes from Guangdong Mommy quickly sold over 50000 kilograms of getting featured an attempted and program.

Operator: a large number of new products quickly gain market traction.

Our dedicated team for a new quality merchant support program.

So we'll continue to engage with hundreds of manufacturing regions, such as footwear and apparel.

Joan and cameras and Guangdong leveraging the momentum of the shopping festival, we helped a large number of quality products quickly reach the market.

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Chen Lei: The 2025 Dodo Premium Produce Program has reached hundreds of high-quality agricultural regions, helping high-quality agricultural products reach urban consumers. For example, lychees from Guangdong Maoming quickly sold over 50,000 kilograms after being featured in the 10 billion program. Our dedicated team for a new quality merchant support program also continued to engage with hundreds of manufacturing regions, such as footwear and apparel in Jinjiang and cameras in Guangdong. Leveraging the momentum of the shopping festival, we helped a large number of quality products quickly reach the market.

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And then the platforms proactive investments have created positive feedback from both consumers and merchants and going forward.

In this intensifying competitive environment, we will continue to increase our support of <unk>.

Both the supply and demand sides sacrificing part of the platform its profit to foster healthier and more vibrant ecosystem and by doing so we hope to have more I think when you reduce costs and drive sales and offer consumers more tangible benefits. Thank you.

Operator: vast number of consumers. Thank you.

Sure.

Okay. Thanks.

Thank you. Thank you George and I think it's about time and thank.

Chen Lei: The platform's proactive investments have created positive feedback from both consumers and merchants. Going forward, in this intensifying competitive environment, we will continue to increase our support on both the supply and demand sides, sacrificing part of the platform's profits to foster a healthier and more vibrant ecosystem. By doing so, we hope to help more SMEs reduce costs and drive sales, and offer consumers more tangible benefits. Thank you.

Thank you again for joining our call today, and we look forward to speaking to you again next quarter.

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

Operator: 谢谢。

Chen Lei: Thank you, Jiazhen. I think it's about time. Thank you again for joining our call today. We look forward to speaking to you again next quarter.

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