Q4 2025 PDD Holdings Inc Earnings Call

March 25, 2026

Operator: Ladies and gentlemen, thank you for standing by and welcome to PDD Holdings Inc. Q4 and Fiscal Year 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 star one on your telephone. Please be advised that today's conference call is being recorded. I would now hand the conference over to your host today. Sir, please go ahead.

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

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 star 1 on your telephone.

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

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, as well as through the Globe Newswire services.

[Company Representative] (PDD Holdings Inc.): Thank you, operator, and hello everyone, and thank you for joining us today. PDD Holdings earnings release was distributed earlier and is available on our website at investor.pddholdings.com, as well as through the global 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'll make certain forward-looking statements. This call also includes discussions of certain non-GAAP financial measures. Please refer to our earnings release, which contains a reconciliation of non-GAAP measures to GAAP measures. Joining us today are Mr. Lei Chen, our Co-Chairman and Co-Chief Executive Officer, and Mr. Jiazhen Zhao, our Co-Chairman and Co-Chief Executive Officer. Our VP of Finance, Ms. Liu Jun, is unfortunately on medical leave. Delivering the prepared remarks today will be Mr. Jiong Li, our Finance Director.

Speaker #2: Before we begin, I would like to refer you to our safe harbor statement in the earnings press release, which applies to this call, as we'll make certain forward-looking statements.

Speaker #2: This call also includes discussions of certain non-GAAP financial measures. Please refer to our earnings release, which contains a reconciliation of non-GAAP measures to GAAP measures.

Speaker #2: Joining us today are Mr. Chen Lei, our Co-Chairman and Co-Chief Executive Officer, and Mr. Zhao Jiazhen, our Co-Chairman and Co-Chief Executive Officer. Our VP of Finance, Ms. Liu Jun, is unfortunately on medical leave.

Speaker #2: Delivering the prepared remarks today will be Mr. Li Zhong, our Finance Director. Jiazhen and Lei will make some general remarks on our performance for the past quarter and our strategic focus.

[Company Representative] (PDD Holdings Inc.): Jiazhen and Lei will make some general remarks on our performance for the past quarter and our strategic focus. Zhong will then walk us through our financial results for the Q4 and the fiscal year ended December 31, 2025. During the Q&A session, Lei and Jiazhen will answer questions in Chinese, and we'll help translate. Please kindly note that English translation is for reference only. In case of any discrepancy, statements in the original language should prevail. Now, it's my pleasure to introduce our Co-Chairman and Co-Chief Executive Officer, Zhao Jiazhen. Jiazhen, please go ahead. Hello, everyone, and thank you for joining our earnings call for the Q4 and fiscal year of 2025. In 2025, we celebrated the 10th anniversary of the company's founding, and it is also the year in which we made our largest investments in high quality development.

Speaker #2: Zhong will then walk us through our financial results for the fourth quarter and the fiscal year ended December 31, 2025. During the Q&A session, Lei and Jiazhen will answer questions in Chinese and will help translate.

Speaker #2: Please kindly note that the English translation is for reference only. In case of any discrepancy, statements in the original language shall prevail. Now, it is my pleasure to introduce our Co-Chairman and Co-Chief Executive Officer, Jiazhen Zhao.

Speaker #2: Jiazhen, please go ahead.

Speaker #3: 大家好，我是Zhao Jiazhen。感谢各位参加我们2025年第四季度及全年业绩的公开发布。

Jiazhen Zhao: Hello, everyone, and thank you for joining our earnings call for the Q4 and fiscal year of 2025. In 2025, we celebrated the 10th anniversary of the company's founding, and it is also the year in which we made our largest investments in high quality development.

Speaker #2: Hello, everyone, and thank you for joining our earnings call for the fourth quarter and the fiscal year 2025.

Speaker #3: 2025年是苹果国创业的第十个年头，也是平台高质量发展投入最大的一年。我们在电商行业首次推出了千亿级别的会商战略，公司上下全力投入，将智能会商提升到了一个全新的高度。在年末的股东大会上，我们升级了公司的治理架构，实行联系董事长制度，同时把公司的战略重心进一步升级为重仓供应链，聚焦供应链高质量品牌化的发展，推动整个供应链体系实现价值跃迁。

Speaker #2: In 2025, we celebrated the 10th anniversary of the company's founding, and it is also the year in which we made our largest investment in high-quality development.

Speaker #2: For the first time in the e-commerce industry, we launched the $100 billion support program to support merchants. The entire company joined efforts in stepping up our support to farmers and merchants.

[Company Representative] (PDD Holdings Inc.): For the first time in the e-commerce industry, we launched the Hundred Billion Support Program to support merchants. The entire company joined efforts in stepping up our support to farmers and merchants. During the shareholders meeting at the end of last year, we improved our corporate governance structure by introducing the co-chair structure, and further sharpened our strategic focus to investing deeply in the supply chain and concentrating on high quality brand-oriented growth to drive the entire supply ecosystem to move up the value chain. In the past year, we delivered steady results.

Jiazhen Zhao: For the first time in the e-commerce industry, we launched the Hundred Billion Support Program to support merchants. The entire company joined efforts in stepping up our support to farmers and merchants. During the shareholders meeting at the end of last year, we improved our corporate governance structure by introducing the co-chair structure, and further sharpened our strategic focus to investing deeply in the supply chain and concentrating on high quality brand-oriented growth to drive the entire supply ecosystem to move up the value chain. In the past year, we delivered steady results.

Speaker #2: And during the shareholders' meeting at the end of last year, we improved our corporate governance structure by introducing the co-chair structure and further sharpened our strategic focus to invest deeply in the supply chain, concentrating on high-quality, brand-oriented growth to drive the entire supply ecosystem to move up the value chain.

Speaker #3: 过去一年，我们的业绩保持稳健。本季度集团收入1,239亿元，同比增长12%。全年集团收入4,318亿元，同比增长10%。本季度及全年集团净利润均同比下降，这主要源于我们对供需两侧的持续投入。正如我们多次强调的，与短期的业绩相比，我们更愿意专注于反哺生态带来的长期价值。

Speaker #2: In the past year, we delivered steady results. This quarter, the group's revenue reached RMB 123.9 billion, growing 12% year on year, while full-year revenue reached RMB 431.8 billion, up 10% year on year.

[Company Representative] (PDD Holdings Inc.): This quarter, the group's revenue reached CNY 123.9 billion, growing 12% year on year, while full year revenue reached CNY 431.8 billion, up 10% year on year. Both this quarter's and the annual net income decreased year on year, which primarily reflects our sustained investment on both the supply side and demand side. As we have communicated in the past, we prioritize long-term value generation by nurturing our ecosystem rather than short-term financial results.

Jiazhen Zhao: This quarter, the group's revenue reached CNY 123.9 billion, growing 12% year on year, while full year revenue reached CNY 431.8 billion, up 10% year on year. Both this quarter's and the annual net income decreased year on year, which primarily reflects our sustained investment on both the supply side and demand side. As we have communicated in the past, we prioritize long-term value generation by nurturing our ecosystem rather than short-term financial results.

Speaker #2: Both these quarters and the annual net income decreased year on year, which primarily reflects our sustained investment on both the supply side and demand side.

Speaker #2: As we have communicated in the past, we prioritize long-term value generation by nurturing our ecosystem rather than short-term financial results.

Speaker #3: 受益于千亿扶持等政策，对供需两侧的长期投入。平台及产业生态实现稳步向好发展，农产区产业贷等供应链体系已经成为支撑平台及生态的关键力量。也为广大消费者带来了更多实惠的优质好物。

Jiazhen Zhao: 受益于千亿扶持等政策对供需两侧的长期投入，平台及产业生态实现稳步向好发展。农产区、产业带等供应链体系已经成为支撑平台及生态的关键力量，也为广大消费者带来了更多实惠的优质好物。

[Company Representative] (PDD Holdings Inc.): Benefiting from long-term investments on both supply and demand sides through initiatives like the Hundred Billion Support Program, the platform and supply chain ecosystem have been moving steadily in the right direction. Key participants of the supply chain, such as agricultural regions and the industrial belt, have become core pillars supporting the platform and ecosystem, while also bringing consumers more affordable, high-quality products.

Speaker #2: In benefiting from long-term investments on both supply and demand sides, two initiatives like the $100 billion support program, the platform, and the supply chain ecosystem have been moving steadily in the right direction.

Jiazhen Zhao: Benefiting from long-term investments on both supply and demand sides through initiatives like the Hundred Billion Support Program, the platform and supply chain ecosystem have been moving steadily in the right direction. Key participants of the supply chain, such as agricultural regions and the industrial belt, have become core pillars supporting the platform and ecosystem, while also bringing consumers more affordable, high-quality products.

Speaker #2: Key participants in the supply chain, such as agricultural regions and the industrial belt, have become core pillars supporting the platform and ecosystem, while also bringing consumers more affordable, high-quality products.

Speaker #3: 在千亿扶持的持续投入下，多多好特展薪资供给电商吸金等专项行动持续的推进，对供应链的扶持范围从头部商家、中小商家逐渐深入到产业链的各个环节，助力各个品类的商家实现差异化发展。完成了从品类、品质到品牌的跨越，大幅提升了供应链效率和产业的综合能力，为农产区产业贷创造了更多的利润空间和创新的空间。

Jiazhen Zhao: 在千亿扶持的持续投入下，多多好特产、新质供给、电商吸金等专项行动持续地推进，对供应链的扶持范围从头部商家、中小商家逐渐深入到产业链的各个环节，助力各个品类的商家实现差异化发展，完成了从品类、品质到品牌的跨越，大幅提升了供应链效率和产业的综合能力，为农产区产业带创造了更多的利润空间和创新的空间。

[Company Representative] (PDD Holdings Inc.): With the continued investment under the Hundred Billion Support Program, dedicated projects such as Duoduo Local Specialties, New Quality Supply, and Logistics Support for Remote Regions have gradually broadened our support from top merchants and SMEs to every segment of the supply chain, helping businesses across all categories pursue differentiated growth. This has enabled the transition from merely supplying products to pursuing quality and to brand building, greatly improving supply chain efficiency and overall industrial capabilities, while at the same time creating room for profit and innovation for agricultural regions and industrial belts.

Jiazhen Zhao: With the continued investment under the Hundred Billion Support Program, dedicated projects such as Duoduo Local Specialties, New Quality Supply, and Logistics Support for Remote Regions have gradually broadened our support from top merchants and SMEs to every segment of the supply chain, helping businesses across all categories pursue differentiated growth. This has enabled the transition from merely supplying products to pursuing quality and to brand building, greatly improving supply chain efficiency and overall industrial capabilities, while at the same time creating room for profit and innovation for agricultural regions and industrial belts.

Speaker #2: With the continued investments under the $100 billion support program, dedicated projects such as Duoduo Local Specialties, New Quality Supply, and Logistics Support for remote regions have gradually broadened our support from top merchants and SMEs to every segment of the supply chain, helping businesses across all categories pursue differentiated growth.

Speaker #2: This has enabled the transition from merely supplying products to pursuing quality, and to brand building. It has greatly improved supply chain efficiency and overall industrial capabilities, while at the same time creating room for profit and innovation for agricultural regions and industrial belts.

Jiazhen Zhao: 在第四季度，多多好特产专项团队深入安岳柠檬、普洱咖啡、武汉瓜子、梅州柚子、文山蓝莓、福州鲍鱼、连云港海苔等农特产区，通过一品一方案的定制化扶持，解决生鲜产品标准化不足、附加值不高等问题，推动农产区实现了种植标准化、精品化销售、深加工发展等路径，有效提升了农产品的附加值，也将更多的利润留在了原产地，进一步地推动农特产业实现长效的发展。

Speaker #3: 在第四季度，多多好特展专项团队深入安岳柠檬、普洱咖啡、武汉瓜子、梅州柚子、文山蓝莓、福州鲍鱼、连云港海苔等农特产区，通过一品一方案的定制化扶持，解决生鲜产品标准化不足、附加值不高等问题，推动农产区实现了种植标准化、精品化销售，增加供发展等路径，有效提升了农产品的附加值，也将更多的利润留在了原产地，进一步的推动农特产业实现长效的发展。

Speaker #2: In the fourth quarter, the Duoduo Local Specialties team visited agricultural regions such as An Yue Lemons, Four Coffee, Wuhan Seeds, Meizhou Pomelos, Wenshan Blueberries, Fuzhou Abalone, and Liaoningang Seaweed.

[Company Representative] (PDD Holdings Inc.): In Q4, the Duoduo Local Specialties team visited agricultural regions such as Anyue Lemons, Pu'er Coffee, Wuhan Seeds, Meizhou Pomelos, Wenshan Blueberries, Fuzhou Abalone, and Lianyungang Seaweed. To customize one product, one plant support program, the team addressed issues such as the lack of product standardization and low value add. These efforts guided farmers and growers to adopt standardized planting, premiumization, and deep processing, effectively increasing the added value of agricultural products and retaining more profits in their places of origin, thereby enabling sustainable growth in specialty agriculture industries.

Jiazhen Zhao: In Q4, the Duoduo Local Specialties team visited agricultural regions such as Anyue Lemons, Pu'er Coffee, Wuhan Seeds, Meizhou Pomelos, Wenshan Blueberries, Fuzhou Abalone, and Lianyungang Seaweed. To customize one product, one plant support program, the team addressed issues such as the lack of product standardization and low value add. These efforts guided farmers and growers to adopt standardized planting, premiumization, and deep processing, effectively increasing the added value of agricultural products and retaining more profits in their places of origin, thereby enabling sustainable growth in specialty agriculture industries.

Speaker #2: Through customized wine product wine plan support programs, the team addressed issues such as the lack of product standardization and low value-add. These efforts guided farmers and growers to adopt standardized planting, premiumization, and deep processing, effectively increasing the added value of agricultural products and retaining more profits in the places of origin.

Speaker #2: Thereby enabled sustained, sustainable growth in specialty agriculture industries.

Speaker #3: 在产业贷薪资供给的培育力度和上行的速度，也在不断的提速。我们的专项团队先后走进义乌四品、平湖羽绒、湖南辣条、安徽炒货、天津薯片、中大小家电、上海巧克力等制造业的集群，并深入原材料配件等供应链的各个环节，通过减免、加扶持的双重举措，进一步释放供应链的优势，推动供应链运营模式的整体性的升级，助力产业贷从同质化竞争迈向品牌化的转型。

Jiazhen Zhao: 在产业带，新质供给的培育力度和上行的速度也在不断地提速。我们的专项团队先后走进义乌饰品、平湖羽绒、湖南辣条、安徽炒货、天津薯片、中山小家电、上海巧克力等制造业的集群，并深入原材料、配件等供应链的各个环节，通过减免加扶持的双重举措，进一步释放供应链的优势，推动供应链运营模式的整体性的升级，助力产业带从同质化竞争迈向品牌化的转型。

[Company Representative] (PDD Holdings Inc.): In Industrial Belt, we accelerated execution of New Quality Supply program by doubling down on our support efforts. Our dedicated teams visited manufacturing clusters such as Yiwu accessories, Pinghu down jackets, Hunan spicy snacks, Anhui roasted seeds, Tianjin potato chips, Zhongshan small appliances, and Shanghai chocolate, and delved deep into every segment of the supply chain, from raw materials to components. Through a combination of fee reduction and support, we helped unlock the potential in the supply chain, driving an overall upgrade in supply chain operations and helping Industrial Belt transition from commoditized competition to brand building.

Jiazhen Zhao: In Industrial Belt, we accelerated execution of New Quality Supply program by doubling down on our support efforts. Our dedicated teams visited manufacturing clusters such as Yiwu accessories, Pinghu down jackets, Hunan spicy snacks, Anhui roasted seeds, Tianjin potato chips, Zhongshan small appliances, and Shanghai chocolate, and delved deep into every segment of the supply chain, from raw materials to components. Through a combination of fee reduction and support, we helped unlock the potential in the supply chain, driving an overall upgrade in supply chain operations and helping Industrial Belt transition from commoditized competition to brand building.

Speaker #2: In the industrial belt, we accelerated execution of the New Quality Supply program by doubling down on our support efforts. Our dedicated teams visited manufacturing clusters, such as EU Accessories, 平湖 Down Jackets, 湖南 Spicy Snacks, 安徽 Roasted Seeds, 天津 Potato Chips, 中山 Small Appliances, and 上海 Chocolate, and delved deep into every segment of the supply chain, from raw materials to components.

Speaker #2: Through a combination of fee reduction and support, we helped unlock the potential in the supply chain, driving an overall upgrade in supply chain operations and helping industrial belt transition from commoditized competition to brand building.

Speaker #3: 在中产供应链的同时，我们还通过电商吸金，进一步激活偏远地区的消费潜力，积极为商家拓展新的增量。在第四季度，我们还在电商吸金取得成效的基础上，再全国多个省市继续攻坚快递进村的最后一公里，将新电商的普惠从西部地区继续扩展至广阔的农村地区，截至目前，我们已在全国十多个省市部署建设了包括县级中转仓、村级代收点等在内的末端基地网络，并承担送货入村订单的二段转端费、二段中转费，将更多的偏远乡村纳入了包邮区。

Jiazhen Zhao: 在增强供应链的同时，我们还通过电商吸金，进一步激活偏远地区的消费潜力，积极为商家拓展新的增量。在第四季度，我们还在电商吸金取得成效的基础上，在全国多个省市继续攻坚快递进村的最后一公里，将新电商的普惠从西部地区继续扩展至广阔的农村地区。截至目前，我们已在全国十多个省市部署建设包括县级中转仓、村级代收点等在内的末端基地网络，并承担送货入村订单的二段转运费……

Jiazhen Zhao: 二段中转费，将更多的偏远乡村纳入了包邮区。

[Company Representative] (PDD Holdings Inc.): While stepping up our investment in the supply chain, we also unlocked the consumption potential in remote regions through our logistics support program, driving new growth opportunities for merchants. In Q4, building on the success of this campaign, we continue to tackle the last mile of parcel delivery into villages across multiple provinces and cities, extending the benefits of new e-commerce from western provinces to vast rural areas. To date, we have deployed and built end-to-end delivery networks, including county-level transfer warehouses and village-level pickup points in over 10 provinces and municipalities. We also cover the transshipping fees for orders delivered to villages, bringing more remote rural areas into the free shipping zones.

Jiazhen Zhao: While stepping up our investment in the supply chain, we also unlocked the consumption potential in remote regions through our logistics support program, driving new growth opportunities for merchants. In Q4, building on the success of this campaign, we continue to tackle the last mile of parcel delivery into villages across multiple provinces and cities, extending the benefits of new e-commerce from western provinces to vast rural areas. To date, we have deployed and built end-to-end delivery networks, including county-level transfer warehouses and village-level pickup points in over 10 provinces and municipalities. We also cover the transshipping fees for orders delivered to villages, bringing more remote rural areas into the free shipping zones.

Speaker #2: While stepping up our investments in the supply chain, we also unlocked consumption potential in remote regions through our Logistics Support program, driving new growth opportunities for merchants.

Speaker #2: In the fourth quarter, building on the success of this campaign, we continue to tackle the last mile of parcel delivery into villages across multiple provinces and cities.

Speaker #2: Extending from western provinces to vast rural areas, to date, we have deployed and built end-to-end delivery networks, including county-level transport warehouses and village-level pickup points, in over 10 provinces and municipalities.

Speaker #2: We also cover the transshipping fees for orders delivered to villages, bringing more remote rural areas into the free shipping zones.

Speaker #3: 在平台治理上，我们不断完善平台的消费和经营环境，进一步提升用户和商家的服务体验，春节期间平台密集推出了多项食品安全治理的举措，主要包括经营资质合规审查、食品广告治理、食品直播管控、未成年人保护、知识产权保护、食品数据库建设等。全面守护消费者的菜篮子、年夜饭安全。

Jiazhen Zhao: 在平台治理上，我们不断完善平台的消费和经营环境，进一步提升用户和商家的服务体验。春节期间，平台密集推出了多项食品安全治理的举措，主要包括经营资质合规审查、食品广告治理、食品直播管控、未成年人保护、知识产权保护、食品数据库建设等，全面守护消费者的菜篮子、年夜饭安全。

Speaker #2: In terms of trust and safety, we continue to improve the business environment and further enhance the service levels for both consumers and merchants. During the Spring Festival, we rolled out a series of food safety measures, including compliance checks on business qualifications, reviews of food advertisements, controls on food live streaming, protection of minors, IP protection, and the development of a food database.

[Company Representative] (PDD Holdings Inc.): In terms of trust and safety, we continue to improve the business environment and further enhance the service levels for both consumers and merchants. During the Spring Festival, we rolled out a series of food safety measures, including compliance checks on business qualifications, reviews of food advertisements, controls on food live streaming, protection of minors, IP protection, and the development of a food database. All to safeguard the food safety for consumers during the festivities.

Jiazhen Zhao: In terms of trust and safety, we continue to improve the business environment and further enhance the service levels for both consumers and merchants. During the Spring Festival, we rolled out a series of food safety measures, including compliance checks on business qualifications, reviews of food advertisements, controls on food live streaming, protection of minors, IP protection, and the development of a food database. All to safeguard the food safety for consumers during the festivities.

Speaker #2: All to safeguard food safety for consumers during the festivities.

Speaker #3: 在全球电产的业务上，虽然外部环境剧烈变化，我们的全球电产业务在过去一年仍然保持稳健的发展。这也是我们长期扎根供应链积累的业务优势。在之前的股东会上，我们宣布全力投入供应链的升级，重头供应链，再造一个拼多多，这是我们的本分。在过去的几个月里，我们在股东大会上郑重宣布的上年重大战略，正在转化为具体的行动。业务和组织内部正在发生深刻的变革。在下个阶段，公司的战略重心不是业务多元化，而是要聚焦供应链的高质量发展，继续发挥我们在供应链上长期积累的优势，实现平台的再造。带动供应链体系完成价值跃迁。

Jiazhen Zhao: 在全球电商的业务上，虽然外部环境剧烈变化，我们的全球电商业务在过去一年仍然保持稳健的发展，这也是我们长期扎根供应链积累的业务优势。在之前的股东会上，我们宣布全力投入供应链的升级，重投供应链，再造一个拼多多，这是我们的本分。在过去的几个月里，我们在股东大会上郑重宣布的三年重大战略正在转化为具体的行动，业务和组织内部正在发生深刻的变革。在下一个阶段，公司的战略重心不是业务多元化，而是要聚焦供应链的高质量发展，继续发挥我们在供应链上长期积累的优势，实现平台的再造，带动供应链体系完成价值跃迁。

Speaker #2: In our global business, despite the drastic changes in the external environment, we delivered steady growth over the past year, mainly reflecting the competitive advantages built through our long-term focus on the supply chain.

[Company Representative] (PDD Holdings Inc.): In our global business, despite the drastic changes in external environment, we delivered steady growth over the past year, mainly reflecting the competitive advantages built through our long-term focus on the supply chain. At the last shareholders meeting, we announced our all-out efforts in investing in the transformation of the supply chain and in building another Pinduoduo. This remains our duty and primary focus. Over the past few months, the three-year strategy we committed to during the annual general meeting has been translated into concrete actions, and fundamental changes are taking place within the business and our organizations. In the next phase of our journey, our strategic priority will not be business diversification, but rather concentrating on the high quality development of the supply chain. Leveraging our strength in the supply chain accumulated over the years, we will reinvent the platform and propel the ecosystem up the value chain.

Jiazhen Zhao: In our global business, despite the drastic changes in external environment, we delivered steady growth over the past year, mainly reflecting the competitive advantages built through our long-term focus on the supply chain. At the last shareholders meeting, we announced our all-out efforts in investing in the transformation of the supply chain and in building another Pinduoduo. This remains our duty and primary focus. Over the past few months, the three-year strategy we committed to during the annual general meeting has been translated into concrete actions, and fundamental changes are taking place within the business and our organizations. In the next phase of our journey, our strategic priority will not be business diversification, but rather concentrating on the high quality development of the supply chain. Leveraging our strength in the supply chain accumulated over the years, we will reinvent the platform and propel the ecosystem up the value chain.

Speaker #2: At the last shareholders' meeting, we announced our all-out efforts in investing in the transformation of the supply chain and in building another 拼多多. This remains our duty and primary focus.

Speaker #2: Over the past few months, the three-year strategy we committed to during the annual general meeting has been translated into concrete actions. Fundamental changes are taking place within the business and our organizations.

Speaker #2: In the next phase of our journey, our strategic priority will now be business diversification, but rather concentrating on a high-quality development of the supply chain.

Speaker #2: Leveraging our strength in the supply chain, accumulated over the years, we will reinvent the platform and propel the ecosystem up the value chain.

Speaker #3: 2026年是拼多多成立的第11年，也是我们迈向下一个十年的新起点。我们重新出发，将以all-in的态度钉钉子的精神，大踏步再度出发。我们将投入更多的人力和资源，继续中产供应链，加码供应链的升级再造。相信下一个三年，我们将有机会再造一个拼多多。

Jiazhen Zhao: 二零二六年是拼多多成立的第十一年，也是我们迈向下一个十年的新起点。我们重新出发，将以all in的态度，精兵制的精神，大踏步再度出发。我们将投入更多的人力和资源，继续重仓供应链，加码供应链的升级再造。相信下一个三年，我们将有机会再造一个拼多多。

Speaker #2: 2026 marks PDD's 11th year and a new starting point as we head into our next decade. We are starting afresh and moving forward with an all-in attitude, and a persistent focus on execution.

[Company Representative] (PDD Holdings Inc.): 2026 marks PDD's eleventh year and a new starting point as we head into our next decade. We are starting afresh and moving forward with an all-in attitude and a persistent focus on execution. We will dedicate more talent and resources to deepen our investments in the supply chain, accelerating its upgrade and transformation. We believe that in the next three years, we will have the opportunity to build another Pinduoduo.

Jiazhen Zhao: 2026 marks PDD's eleventh year and a new starting point as we head into our next decade. We are starting afresh and moving forward with an all-in attitude and a persistent focus on execution. We will dedicate more talent and resources to deepen our investments in the supply chain, accelerating its upgrade and transformation. We believe that in the next three years, we will have the opportunity to build another Pinduoduo.

Speaker #2: We will dedicate more talent and resources to deepen our investments in the supply chain, accelerating its upgrade and transformation. We believe that in the next three years, we will have the opportunity to build another Pinduoduo.

Speaker #3: 下面我把话筒交给陈磊，请他为大家进一步的介绍。

Jiazhen Zhao: 下面我把话筒交给陈磊，请他为大家进一步的介绍。

Speaker #2: Now I'll hand it over to Lei Chen for further remarks.

[Company Representative] (PDD Holdings Inc.): Now, I'll hand it over to Lei Chen for further remarks.

Jiazhen Zhao: Now, I'll hand it over to Lei Chen for further remarks.

Lei Chen: Thanks, Jiazhen Zhao, and hello, everyone. 2025 marked our 10th anniversary. As Jiazhen Zhao just mentioned, we took on greater responsibilities this past year and launched the Hundred Billion Support Program to give back to the merchant ecosystem. We also established a co-chair structure to further improve our governance and firmly anchor our company's strategic focus on the high-quality development of supply chain. Through these efforts, we continue to create long-term value for consumers, for merchants, the industry, and society. As it has been nearly a year since we launched the Hundred Billion Support Program. During this time, we continued to reinvest in our ecosystem through measures such as fee reductions, merchant support, trust and safety initiatives. Our dedicated teams have gone deep into agricultural regions and the manufacturing hubs to help hundreds of merchants establish standardized production systems and to explore differentiated and brand-oriented growth models.

Speaker #4: Thanks, Jiazhen. And hello everyone. 2025 marked our 10th anniversary. As Jiazhen just mentioned, we took on greater responsibilities this past year and launched the 100 billion support program to give back to the virtual ecosystem.

Speaker #4: We also established a culture structure to further improve our governance and firmly anchored our company's strategic focus on the high-quality development of supply chain.

Speaker #4: Through these efforts, we continue to create long-term value for consumers, for merchants, the industry, and society. It has been nearly a year since we launched the 100 billion support program.

Speaker #4: During this time, we continue to reinvest in our ecosystem through measures such as fee reductions, merchant support, and trust and safety initiatives. Our dedicated teams have gone deep into agricultural regions and manufacturing hubs to help hundreds of regions establish standardized production systems.

Speaker #4: And to explore differentiated and brand-oriented growth models. This effort has significantly improved the efficiency and quality of supply chain operations, driving a supply chain transformation from scale-driven to value-driven.

Lei Chen: This effort has significantly improved the efficiency and quality of supply chain operations, driving the supply chain transformation from scale-driven to value-driven. This also brings more high quality, affordable products to our consumers. Our consistent investment in the supply chain have unlocked strong consumer demand on Pinduoduo platform. The platform delivered strong performance during major promotions such as June Eighteenth, Double Eleven, and Spring Festival. Target products from different regions broke through geographic boundaries, offering consumers more diverse selection and further enhancing their quality of life. Our global e-commerce business continue to deliver steady growth and has reached meaningful scale in most countries we serve. We accomplished in 3 years what would take a single dual business 10 years to complete. However, over the past year, the global geopolitical landscape has grown more complex. Standards and regulatory policies across different countries and regions have continued to evolve.

Speaker #4: This also brings more high-quality, affordable products to our consumers. Our consistent investment in the supply chain has unlocked strong consumer demand on the 拼多多 platform. The platform delivered strong performance during major promotions such as June 18th, January 11th, and Spring Festival.

Speaker #4: Market products from different regions broke through geographic boundaries, offering consumers a more diverse selection and further enhancing their quality of life. Our global e-commerce business continues to deliver steady growth and has reached meaningful scale in most countries in the third.

Speaker #4: Accomplishing in three years what more people at Pinduoduo business took 10 years to complete. However, over the past year, the global geopolitical landscape has grown more complex.

Speaker #4: Trade and regulatory policies across different countries and regions have continued to evolve. This has introduced greater uncertainty to our global business, and will impact and even reshape our development model.

Lei Chen: This has introduced greater uncertainty to our global business and will impact and even reshape our development model. In this context, we need to rely more than ever on the collective capabilities of our supply chain ecosystem. Therefore, we will continue to anchor our strategy in investing deeply in supply chain capabilities and direct more efforts, capital, and resources to its transformation. We aim to empower our merchants and manufacturers to become innovators with direct global market capabilities, developing consumer insights, coming up with product ideas, and building brands. This will drive the supply chain towards high quality and brand-orienting growth, creating real value for consumers. Over the past few months, we have been making steady progress on the execution of three-year strategy adopted at a shareholders meeting, and we are pleased to see some results.

Speaker #4: In this context, we need to rely more than ever on the collective capabilities of our supply chain ecosystem. Therefore, we will continue to anchor our strategy in investing deeply in supply chain capabilities and direct more efforts, capital, and resources to its transformation.

Speaker #4: We aim to empower our merchants and manufacturers to become innovators with direct go-to-market capabilities. Developing consumer insights, coming up with product size, and building brands.

Speaker #4: This will drive a supply chain towards high-quality and brand-oriented growth, creating real value for consumers. Over the past few months, we have been making steady progress on the execution of the three-year strategy adopted at a shareholders' meeting.

Speaker #4: And we are pleased to see some results. In the fourth quarter, our long-run investments in agricultural research achieved new results. Last October, for the second consecutive year, we were invited to attend a World Food Forum hosted by the UN Food and Agriculture Organization.

Lei Chen: In Q4, our long run investments in agricultural research achieved new results. Last October, for the second consecutive year, we were invited to attend a World Food Award forum hosted by the Food and Agriculture Organization of the United Nations, representing Asian enterprises. We shared our experience and achievements in supporting digital agricultural innovation, and we also sponsored two great agricultural research teams that took the stage at a forum, bringing new energy into agricultural research and development. Since the start of 2026, competitions in e-commerce sector has continued to intensify around new business models and new technologies. At the same time, the global environment has become more complex than last year, with increased uncertainty in the economy and trade climate, as well as in regulatory policies across various countries and regions.

Speaker #4: Representing Asian enterprises, we shared our experience and achievements in supporting digital agriculture innovation. We also sponsored two great agricultural research teams that took the stage at a forum.

Speaker #4: Bringing new energy into agricultural research and development. Since the start of 2026, competitions in the e-commerce sector have continued to intensify around new business models and new technologies.

Speaker #4: At the same time, the global environment has become more complex than last year, with increased uncertainty in the economic and trade climate, as well as in regulatory policies across various countries and regions.

Speaker #4: This will inevitably bring more challenges and weight on our future performance, putting pressures on our profitability in the short term. However, we will continue to uphold our long-term philosophy and faithfully execute our strategy of investing deeply in the supply chain.

Lei Chen: This will inevitably bring more challenges and weight on our future performance, putting pressures on our profitability in the short term. However, we will continue to uphold our long-term philosophy and faithfully execute our strategy of investing deeply in the supply chain, dedicating more resources to give back to industry, and the society. Now I will turn the call over to Li Zheng, who will walk you through our financial performance for the fiscal year 2025.

Speaker #4: Dedicating more resources to give back to the industry and the society. And now, I will turn the call over to Li Zhou, who will walk you through our financial performance for the fiscal year of 2025.

Speaker #2: Well, thank you, Lei. Hello, everyone. This is Zhou. Now, let me walk you through our financial performance in the fourth quarter and the fiscal year ended September 30, 2025.

Li Zheng: Well, thank you, Lei. Hello, everyone. This is Zheng. Now, let me walk you through our financial performance in the fourth quarter and the fiscal year ended 31 December 2025. In terms of income statements, in Q4, our total revenues increased 12% year over year to CNY 123.9 billion and 10% year over year to CNY 431.8 billion for full year 2025. This was mainly driven by an increase in revenues from both online marketing services and transaction services. Revenues from online marketing services and others were CNY 60 billion this quarter, up 5% compared to the same period of 2024. Our transaction services revenues this quarter were CNY 63.9 billion, up 19% versus the same period of 2024. Moving on to costs and expenses.

Jiong Li: Well, thank you, Lei. Hello, everyone. This is Zheng. Now, let me walk you through our financial performance in the fourth quarter and the fiscal year ended 31 December 2025. In terms of income statements, in Q4, our total revenues increased 12% year over year to CNY 123.9 billion and 10% year over year to CNY 431.8 billion for full year 2025. This was mainly driven by an increase in revenues from both online marketing services and transaction services. Revenues from online marketing services and others were CNY 60 billion this quarter, up 5% compared to the same period of 2024. Our transaction services revenues this quarter were CNY 63.9 billion, up 19% versus the same period of 2024. Moving on to costs and expenses.

Speaker #2: In terms of income statements, in Q4, our total revenues increased 12% year over year, to around $123.9 billion. And 10% year over year, to around $431.8 billion for full year 2025.

Speaker #2: This was mainly driven by an increase in revenues from both online marketing services and transaction services. Revenues from online marketing services and others were around $60 billion this quarter.

Speaker #2: Up 5% compared to the same period in 2024. Our transaction services revenues this quarter were around $63.9 billion, up 19% versus the same period in 2024.

Speaker #2: Moving on to costs and expenses. Our total costs rose from around $47.8 billion in Q4 2024 to around $55.2 billion this quarter. For the full year, our total costs of revenues increased 23% to around $188.8 billion.

Li Zheng: Our total costs of revenues increased 15% from CNY 47.8 billion in Q4 2024 to CNY 55.2 billion this quarter. For the full year, our total costs of revenues increased 23% to CNY 188.8 billion, mainly due to increased fulfillment fees, bandwidth and server costs, and payment processing fees. On a GAAP basis, total operating expenses this quarter increased 10% to CNY 41 billion from CNY 37.2 billion in the same quarter of 2024. On a non-GAAP basis, our total operating expenses increased to CNY 39.3 billion this quarter from CNY 35.1 billion in Q4 2024. Our total non-GAAP operating expenses as a percentage of total revenues was 32% in Q4.

Jiong Li: Our total costs of revenues increased 15% from CNY 47.8 billion in Q4 2024 to CNY 55.2 billion this quarter. For the full year, our total costs of revenues increased 23% to CNY 188.8 billion, mainly due to increased fulfillment fees, bandwidth and server costs, and payment processing fees. On a GAAP basis, total operating expenses this quarter increased 10% to CNY 41 billion from CNY 37.2 billion in the same quarter of 2024. On a non-GAAP basis, our total operating expenses increased to CNY 39.3 billion this quarter from CNY 35.1 billion in Q4 2024. Our total non-GAAP operating expenses as a percentage of total revenues was 32% in Q4.

Speaker #2: Mainly due to increased fulfillment fees, bandwidth and server costs, and payment processing fees. On a GAAP basis, total operating expenses this quarter increased 10% to around $41 billion.

Speaker #2: From around $37.2 billion in the same quarter of 2024. On a non-GAAP basis, our total operating expenses increased to around $39.3 billion this quarter.

Speaker #2: From around $35.1 billion in Q4 2024, our total non-GAAP operating expenses as a percentage of total revenues was 32% in Q4. For the full year 2025, total non-GAAP operating expenses were around $140.7 billion.

Li Zheng: For full year 2025, total non-GAAP operating expenses were CNY 140.7 billion, up from CNY 122 billion in 2024. Looking at specific expense items. Our non-GAAP sales and marketing expenses this quarter were CNY 34 billion, up 9% versus the same quarter of 2024. On a non-GAAP basis, our sales and marketing expenses as a percentage of our revenues this quarter was 27%, compared to 28% in Q4 2024. For the full year, non-GAAP sales and marketing expenses increased from CNY 109.1 billion to CNY 123.3 billion in 2025.

Jiong Li: For full year 2025, total non-GAAP operating expenses were CNY 140.7 billion, up from CNY 122 billion in 2024. Looking at specific expense items. Our non-GAAP sales and marketing expenses this quarter were CNY 34 billion, up 9% versus the same quarter of 2024. On a non-GAAP basis, our sales and marketing expenses as a percentage of our revenues this quarter was 27%, compared to 28% in Q4 2024. For the full year, non-GAAP sales and marketing expenses increased from CNY 109.1 billion to CNY 123.3 billion in 2025.

Speaker #2: Up from $122 billion in 2024. Looking to specific expense items, our non-GAAP sales and marketing expenses this quarter were around $34 billion, up 9% versus the same quarter of 2024.

Speaker #2: On a non-GAAP basis, our sales and marketing expenses as a percentage of our revenues this quarter was 27%, compared to 28% in Q4 2024.

Speaker #2: For the full year, non-GAAP sales and marketing expenses increased from around $109.1 billion to around $123.3 billion in 2025. Our non-GAAP G&A expense was around $907 million in Q4, versus around $998 million in the same quarter of 2024.

Li Zheng: Our non-GAAP G&A expense were RMB 907 million in Q4 versus RMB 998 million in the same quarter of 2024. Our annual non-GAAP G&A expenses were RMB 3.2 billion in 2025 versus RMB 2.8 billion last year. Our research and development expenses were RMB 4.4 billion in Q4 on a non-GAAP basis, and RMB 5 billion on a GAAP basis. On a GAAP basis, operating profit for the quarter was RMB 27.7 billion versus RMB 25.6 billion in the same quarter 2024. Non-GAAP operating profit was RMB 29.5 billion versus RMB 28 billion in the same quarter 2024. Non-GAAP operating profit margin was 24% this quarter, compared with 25% for the same quarter 2024. For the full year, non-GAAP operating profit was RMB 102.6 billion, compared with RMB 118.3 billion in 2024.

Jiong Li: Our non-GAAP G&A expense were RMB 907 million in Q4 versus RMB 998 million in the same quarter of 2024. Our annual non-GAAP G&A expenses were RMB 3.2 billion in 2025 versus RMB 2.8 billion last year. Our research and development expenses were RMB 4.4 billion in Q4 on a non-GAAP basis, and RMB 5 billion on a GAAP basis. On a GAAP basis, operating profit for the quarter was RMB 27.7 billion versus RMB 25.6 billion in the same quarter 2024. Non-GAAP operating profit was RMB 29.5 billion versus RMB 28 billion in the same quarter 2024. Non-GAAP operating profit margin was 24% this quarter, compared with 25% for the same quarter 2024. For the full year, non-GAAP operating profit was RMB 102.6 billion, compared with RMB 118.3 billion in 2024.

Speaker #2: Our annual non-GAAP G&A expenses were around $3.2 billion in 2025, versus around $2.8 billion last year. Our research and development expenses were around $4.4 billion in the fourth quarter on a non-GAAP basis, and around $5 billion on a GAAP basis.

Speaker #2: On a GAAP basis, operating profit for the quarter was around $27.7 billion, versus around $25.6 billion in the same quarter, 2024. Non-GAAP operating profit was around $29.5 billion, versus around $28 billion in the same quarter, 2024.

Speaker #2: Non-GAAP operating profit margin was 24% this quarter, compared with 25% for the same quarter in 2024. For the full year, non-GAAP operating profit was around $102.6 billion, compared with R&D of $118.3 billion in 2024.

Speaker #2: Net income attributable to ordinary shareholders was around $24.5 billion for the quarter, and around $99.4 billion for the full year. In the fourth quarter, basic earnings per ADS were around $17.50, and diluted earnings per ADS were around $16.51, versus basic earnings per ADS of around $19.76 and diluted earnings per ADS of around $18.53 in the same quarter of 2024.

Li Zheng: Net income attributable to ordinary shareholders was CNY 24.5 billion for the quarter and CNY 99.4 billion for the full year. In Q4, basic earnings per ADS was CNY 17.50, and diluted earnings per ADS was CNY 16.51, versus basic earnings per ADS of CNY 19.76 and diluted earnings per ADS of CNY 18.53 in the same quarter of 2024. Non-GAAP net income attributable to ordinary shareholders was CNY 26.3 billion for the quarter and CNY 107.3 billion for the full year. In Q4, non-GAAP diluted earnings per ADS was CNY 17.69 versus CNY 20.15 in the same quarter of 2024. That completes the income statement. Now let me move on to cash flow.

Jiong Li: Net income attributable to ordinary shareholders was CNY 24.5 billion for the quarter and CNY 99.4 billion for the full year. In Q4, basic earnings per ADS was CNY 17.50, and diluted earnings per ADS was CNY 16.51, versus basic earnings per ADS of CNY 19.76 and diluted earnings per ADS of CNY 18.53 in the same quarter of 2024. Non-GAAP net income attributable to ordinary shareholders was CNY 26.3 billion for the quarter and CNY 107.3 billion for the full year. In Q4, non-GAAP diluted earnings per ADS was CNY 17.69 versus CNY 20.15 in the same quarter of 2024. That completes the income statement. Now let me move on to cash flow.

Speaker #2: Non-GAAP net income attributable to ordinary shareholders was around $26.3 billion for the quarter, and around $107.3 billion for the full year. In the fourth quarter, non-GAAP diluted earnings per ADS was around $17.69, versus around $20.15 in the same quarter of 2024.

Speaker #2: That completes the income statement. Now, let me move on to cash flow. Our net cash flow generated from operating activities was around $24.1 billion in Q4, and around $106.9 billion for the full year of 2025.

Li Zheng: Our net cash flow generated from operating activities was CNY 24.1 billion in Q4 and CNY 106.9 billion for the full year of 2025, compared with CNY 29.5 billion in the same quarter of 2024 and CNY 121.9 billion in 2024. As of 31 December 2025, the company had CNY 422.3 billion in cash equivalents, and short-term investments. Thank you. This concludes my prepared remarks.

Jiong Li: Our net cash flow generated from operating activities was CNY 24.1 billion in Q4 and CNY 106.9 billion for the full year of 2025, compared with CNY 29.5 billion in the same quarter of 2024 and CNY 121.9 billion in 2024. As of 31 December 2025, the company had CNY 422.3 billion in cash equivalents, and short-term investments. Thank you. This concludes my prepared remarks.

Speaker #2: Compared with around $29.5 billion in the same period, revenue reached $121.9 billion in 2024. As of December 31, 2025, the company had around $422.3 billion in cash, cash equivalents, and short-term investments.

Speaker #2: Thank you, and this concludes my prepared remarks.

Speaker #3: Thank you, Zhou. Next, we'll move on to the Q&A session. In today's Q&A session, Lei and Jiazhen will take questions from analysts on the line.

[Company Representative] (PDD Holdings Inc.): Thank you, Jun Liu. Next, we'll move on to the Q&A session. In today's Q&A session, Lei Chen and Jiazhen Zhao will take questions from analysts on the line. We could take a maximum of two questions from each analyst. Lei Chen and Jiazhen Zhao will answer questions in Chinese, and we'll help translate. Operator, we are open for questions.

Speaker #3: We could take a maximum of two questions from each analyst. Lei and Jiazhen will answer questions in Chinese, and we'll help translate. Operator, we're open for questions.

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

Operator: 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 to two questions at each time. Your first question comes from Alicia Yap with Citigroup.

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

Speaker #1: Your first question comes from Alicia Yap with Citigroup.

Alicia Yap: Hello. Thank you.

Speaker #4: Hello. Thank you. Guan Yicheng, 晚上好，谢谢接受我的提问。有两个问题。第一个问题是，我们公司去年底的股东大会上对这个组织架构做了一些调整，然后我们看到目前公司其实在 90 多个市场运营，也受到蛮复杂的一些监管环境的新挑战。想请管理层分享一下公司如何在这样的环境中保持团队的敏捷和执行力。然后第二个问题是，过去这个季度我们看到电商平台的增长有所放缓，然后公司过去两个季度的广告收入增速其实也有所回落。想请管理层分享一下对目前中国电商市场的看法，以及我们行业下阶段增长有可能会来自哪些地方。我自己翻译一下。I have two questions. First is that the company made some organization adjustment at the shareholder meeting at the end of last year.

Jiazhen Zhao: Hi, this is Zhao Jiazhen. Let me take your first question. Over the past few years, our global business has indeed achieved some progress and now serving nearly 100 markets and achieving meaningful scale.

Speaker #4: So currently, the company is operating in over 90 markets, and at the same time, also faces new challenges from the complex regulatory environments. So how does the company maintain the flexibility and also the quality of execution in such an environment?

Speaker #4: And then, second question is: Over the past quarter, we have seen a slowdown in the growth of e-commerce platforms in China, and the company's online marketing revenue growth also shows a slowdown over the past two quarters.

Speaker #4: So could management share with us your view on the current state of the China e-commerce market, and where the next phase of growth for the industry might come from?

Speaker #4: Thank you.

Speaker #3: 你好。我是Jiazhen。我来回答第一个问题。那在过去的几年呢，我们的全球业务确实取得了突破性的进展。那现在呢，已经覆盖了近百个市场，也形成了一定的规模。

Speaker #5: Hi, this is Jiazhen. Let me take your first question. Over the past few years, global business has indeed achieved some progress, and now serves nearly 100 markets and has achieved meaningful scale.

Speaker #3: 那在这个过程中呢，我们公司的治理以及内部的人才的成长呢，我们感觉是跟不上业务的发展的。那在很多地方呢，捉襟见肘。那当前的国际地缘政治呢，变化又很快，各地的贸易政策跟监管政策快速变化，并且趋严。那这个呢，也对我们公司的整体提出了新的要求。

[Company Representative] (PDD Holdings Inc.): Throughout this process, our corporate governance and the development of internal talents have lagged behind the business growth, and that leaves us difficult to keep up in many areas. At the same time, the international geopolitical landscape is evolving rapidly, with trade and regulatory policies across regions changing quickly and becoming increasingly tightening. This places new demands on our company as a whole.

Speaker #5: And throughout this process, our corporate governance and the development of internal talents have lagged behind the business growth. And that leaves us difficult to keep up in many areas.

Jiazhen Zhao: Throughout this process, our corporate governance and the development of internal talents have lagged behind the business growth, and that leaves us difficult to keep up in many areas. At the same time, the international geopolitical landscape is evolving rapidly, with trade and regulatory policies across regions changing quickly and becoming increasingly tightening. This places new demands on our company as a whole.

Speaker #5: At the same time, the international geopolitical landscape is evolving rapidly, with trade and regulatory policies across regions changing quickly and becoming increasingly tight. This places new demands on our company as a whole.

Speaker #3: 那因此呢，我们认为那个有这个机会，也有这个必要进行这个系统性的结构性的组织文化和公司治理的再造。当然呢，这肯定是需要一个过程的。那去年的12月呢，我们在股东大会上宣布的连续董事长的制度，以及这个新提升的新的领导者，就是这样的一个系统性变革的开始。

Jiazhen Zhao: 那因此呢，我们认为有这个机会，也有这个必要进行这个系统性的结构性的组织、文化和公司治理的再造。当然呢，这肯定是需要一个过程的啊。那去年的十二月呢，我们在股东大会上宣布的联席董事长的制度，以及这个新提升的新的领导者，就是这样的一个系统性变革的开始。

Speaker #5: And therefore, we believe there is both an opportunity and a necessity to undertake a systemic and structural transformation of our organization, culture, and corporate governance.

[Company Representative] (PDD Holdings Inc.): Therefore, we believe there is both an opportunity and a necessity to undertake a systematic and structural transformation of our organization, culture, and corporate governance. Of course, this will be a gradual process. The culture structure and the appointment of new leaders that was announced at our shareholders meeting last December is the beginning of this systematic transformation.

Jiazhen Zhao: Therefore, we believe there is both an opportunity and a necessity to undertake a systematic and structural transformation of our organization, culture, and corporate governance. Of course, this will be a gradual process. The culture structure and the appointment of new leaders that was announced at our shareholders meeting last December is the beginning of this systematic transformation.

Speaker #5: And of course, this will be a gradual process. The co-chair structure and the appointment of new leaders that was announced at our shareholders' meeting last December is the beginning of this systematic transformation.

Speaker #3: 那在未来的一段时期里呢，我们将花更大的精力、财力和物力投入到供应链的升级再造，实现这个供应链的运营模式的整体性的升级。

Jiazhen Zhao: 那在未来的一段时期里呢，我们将花更大的精力、财力和物力投入到供应链的升级改造，实现这个供应链的运营模式的整体性的升级。

Speaker #5: And in the period ahead, we will dedicate greater energy, capital, and resources to upgrading and reinventing the supply chain, and to achieve an overall transformation of our supply chain operations.

[Company Representative] (PDD Holdings Inc.): In the period ahead, we will dedicate greater energy, capital, and resources to upgrading and reinventing the supply chain and to achieve an overall transformation of our supply chain operations.

Jiazhen Zhao: In the period ahead, we will dedicate greater energy, capital, and resources to upgrading and reinventing the supply chain and to achieve an overall transformation of our supply chain operations.

Speaker #3: 那我也来回答一下你的第二个的问题。那确实像你所说的，那个过去的几个季度呢，我们看到电商行业进入了一个竞争加剧，同时增长放缓的阶段。那在这样的一个新阶段里呢，我们提出重仓供应链，就是认识到了电商品牌它不应该是简单的交易平台，而应该而且也能够做得更多。那为整个供应链的各个参与方呢，创造更多的价值。

Jiazhen Zhao: 那我也来回答一下你的第二个问题啊。那确实像你所说的，那个过去的几个季度呢，我们看到电商行业进入了一个竞争加剧，同时增长放缓的阶段。那在这样的一个新阶段里呢，我们提出重仓供应链，就是认识到了电商平台它不应该是简单的交易平台，而应该而且也能够做得更多，那为整个供应链的各个参与方呢创造更多的价值。

Speaker #5: Also, to address the second question: as you mentioned, over the past few quarters, we have seen the e-commerce industry enter a new phase of intensified competition and slowing growth.

[Company Representative] (PDD Holdings Inc.): I'll also address the second question. As you mentioned, over the past few quarters, we have seen the e-commerce industry enter a new phase of intensified competition and slowing growth. In this new stage, our strategy of investing deeply in the supply chain was formulated. It was formulated from the recognition that an e-commerce platform should not just be a simple transaction platform. Rather, it can and should do more in creating greater value for all participants across the entire supply chain.

Jiazhen Zhao: I'll also address the second question. As you mentioned, over the past few quarters, we have seen the e-commerce industry enter a new phase of intensified competition and slowing growth. In this new stage, our strategy of investing deeply in the supply chain was formulated. It was formulated from the recognition that an e-commerce platform should not just be a simple transaction platform. Rather, it can and should do more in creating greater value for all participants across the entire supply chain.

Speaker #5: In this new stage, our strategy of investing deeply in the supply chain was formulated. It was formulated from the recognition that an e-commerce platform should not just be a simple transaction platform; rather, it can and should do more.

Speaker #5: And creating greater value for all participants across the entire supply chain.

Speaker #3: 那重仓供应链呢，涵盖多个方面。那过去一段时间里呢，我们推出的多多好特产、电商西进，那都是我们围绕供应链赋能发起的普惠性的项目。那在这里呢，我还想着重提两个专项。

Jiazhen Zhao: 那重仓的，重仓供应链呢，涵盖多个方面。过去一段时间里呢，我们推出的多多好特产、电商西进，那都是我们围绕供应链赋能发起的活性的项目。那在这里呢，我还想着重提两个专项。

Speaker #5: Our deep investments in the supply chain cover multiple aspects. And initiatives launched recently, such as 多多 Local Specialties and logistics support for remote regions, are all projects empowering the supply chain to be more inclusive.

[Company Representative] (PDD Holdings Inc.): Our deep investments in the supply chain cover multiple aspects and initiatives, launched recently, such as those Local Specialties and Logistics Support for Remote Regions, are all projects empowering the supply chain to be more inclusive. Here I will also highlight two specific programs.

Jiazhen Zhao: Our deep investments in the supply chain cover multiple aspects and initiatives, launched recently, such as those Local Specialties and Logistics Support for Remote Regions, are all projects empowering the supply chain to be more inclusive. Here I will also highlight two specific programs.

Speaker #5: Here, I will also highlight two specific programs.

Speaker #3: 第一个呢，是免费送货入村。那这是我们去年第四季度试点的一个新的项目。那初衷呢，是为了解决偏远的行政村它的这个物流配送成本高，商家发货意愿低的难题。那我们想呢，将更多的偏远乡村纳入到包邮区。目前呢，拼多多已经在全国的多个地方建设了县级的中转仓，以及这个村级的代收点等这种末端的物流配套，并且由平台来承担送货入村订单的这个二段中转费。

Jiazhen Zhao: 第一个呢，是免费送货入村。那这是我们去年第四季度试点的一个新的项目，那初衷呢，是为了解决偏远的行政村它的这个物流配送成本高、商家发货意愿低的难题。那我们想呢，将更多的偏远乡村纳入到包邮区。那目前呢，拼多多已经在全国的多个地方建设了县级的中转仓，以及这个村级的代收点等这种末端的物流配套，并且由平台来承担送货入村订单的这个二段中转费。

Speaker #5: The first program is free delivery to villages. This is a new project we piloted in the fourth quarter of last year, aimed at addressing the challenges of high logistics costs and merchants' lack of incentives to ship to remote rural villages.

[Company Representative] (PDD Holdings Inc.): The first program is free delivery to villages. This is a new project we piloted in Q4 of last year aimed at addressing the challenges of high logistics costs and merchants' lack of incentives to ship to remote rural villages, bringing more villages into the free shipping zone. Currently we have built last mile logistics infrastructure, including transit warehouses at the county level and pickup points at the village level across multiple regions in China, and with the platform covering the transshipping fees for orders delivered to these villages.

Jiazhen Zhao: The first program is free delivery to villages. This is a new project we piloted in Q4 of last year aimed at addressing the challenges of high logistics costs and merchants' lack of incentives to ship to remote rural villages, bringing more villages into the free shipping zone. Currently we have built last mile logistics infrastructure, including transit warehouses at the county level and pickup points at the village level across multiple regions in China, and with the platform covering the transshipping fees for orders delivered to these villages.

Speaker #5: We are bringing more villages into the free shipping zone. Currently, we have built last-mile logistics infrastructure, including transit warehouses at the county level and pickup points at the village level.

Speaker #5: Across multiple regions in China, and with the platform covering the transshipping fees for orders delivered to these villages.

Speaker #3: 那在这个新模式下呢，平台商家只需要把商品发送到这个中转仓。中转仓会完成从仓库到村级代收点的运输。那这个是平台在已有的经验的基础上，将分段运输中转集运的模式呢，进一步的延伸到了村庄的最后一公里。优化偏远地区的购物体验，也帮助商家打开了这个市场的增量。

Jiazhen Zhao: 在这个新模式下，平台商家只需要把商品发送到这个中转仓，中转仓会完成从仓库到村级代收点的运输。这个是平台在已有的经验的基础上，将分段运输中转直运的模式，进一步地延伸到了村庄的最后一公里，优化偏远地区的购物体验，也帮助商家打开了这个市场的增量。

Speaker #5: And under this new model, merchants only need to send their products to the transport warehouses, and the transportation from the warehouse to the village-level pickup points is then handled by the transit warehouse.

[Company Representative] (PDD Holdings Inc.): Under this new model, merchants only need to send their products to their transfer warehouses, and the transportation from the warehouse to the village-level pickup points is then handled by the transit warehouse. Building on our existing experience, we apply the transshipping model to the last-mile delivery to the villages, improving the shopping experiences in remote areas and helping the merchants to tap into new market opportunities.

Jiazhen Zhao: Under this new model, merchants only need to send their products to their transfer warehouses, and the transportation from the warehouse to the village-level pickup points is then handled by the transit warehouse. Building on our existing experience, we apply the transshipping model to the last-mile delivery to the villages, improving the shopping experiences in remote areas and helping the merchants to tap into new market opportunities.

Speaker #5: And building on our existing experience, we apply the transshipping model to last-mile delivery to the villages, improving the shopping experiences in remote areas and helping our merchants to tap into new market opportunities.

Speaker #3: 那第二个呢，是薪资供给。平台针对愿意提升品质优化服务的优质商家，通过行业洞察、供应链协同等手段呢，帮助商家在研发、生产、制造、销售的全生命周期进行升级。推动供应链体系的重塑。

Jiazhen Zhao: 第二个呢是新质供给。平台针对愿意提升品质、优化服务的优质商家，通过行业洞察、供应链协同等手段呢，帮助商家在研发、生产、制造、销售的全生命周期进行升级，推动供应链体系的重塑。

Speaker #5: The second example is new quality supply. For merchants willing to improve their product quality and services, the platform empowers them by providing industry insights and supply chain support.

[Company Representative] (PDD Holdings Inc.): The second example is New Quality Supply for merchants willing to improve their product quality and services. The platform empowers them by providing industry insights and supply chain support. These measures support merchants to upgrade their operations across the entire product lifecycle, from R&D and production to manufacturing and sales.

Jiazhen Zhao: The second example is New Quality Supply for merchants willing to improve their product quality and services. The platform empowers them by providing industry insights and supply chain support. These measures support merchants to upgrade their operations across the entire product lifecycle, from R&D and production to manufacturing and sales.

Speaker #5: These measures support merchants to upgrade their operations across the entire product lifecycle, from R&D and production to manufacturing and sales, and driving the transformation of the supply chain system.

[Company Representative] (PDD Holdings Inc.): Driving the transformation of the supply chain system.

Jiazhen Zhao: Driving the transformation of the supply chain system.

Speaker #3: 那这里呢，平台可以做的有很多。比如说产品研发。那传统模式下的新品研发呢，往往有碰运气的成分。但是呢，在平台今天的生态里面，一些产品的关键信息经过我们招商团队的整合之后呢，即使传递给商家，并通过流量的扶持完成新品的测试，帮助商家有的放矢的迭代商品，提升研发投入的产品产出比。

Lei Chen: 那这里呢，平台可以做的有很多，比如说产品研发。那传统模式下的新品研发呢，往往有碰运气的成分。但是呢，在平台今天的生态里面，一些产品的关键信息经过我们招商团队的整合之后呢，及时传递给商家，并通过流量的扶持完成新品的测试，帮助商家有针对性地迭代商品，提升研发投入的产品产出比。

Jiazhen Zhao: 那这里呢，平台可以做的有很多，比如说产品研发。那传统模式下的新品研发呢，往往有碰运气的成分。但是呢，在平台今天的生态里面，一些产品的关键信息经过我们招商团队的整合之后呢，及时传递给商家，并通过流量的扶持完成新品的测试，帮助商家有针对性地迭代商品，提升研发投入的产品产出比。

Speaker #5: There is actually a lot the platform can do here. For instance, in product development, traditional approaches often rely on trial and error. However, within today's ecosystem, critical product information is compiled by our merchant development teams and promptly relayed to the merchants.

[Company Representative] (PDD Holdings Inc.): There is actually a lot the platform can do here. For instance, in product development, traditional approaches often rely on trial and error. However, within today's ecosystem, critical product information is compiled by our merchant development team and promptly relayed to the merchants together with traffic support for new product testing. These measures enable merchants to iterate their products with more success and improve the ROI of their R&D investments.

Jiazhen Zhao: There is actually a lot the platform can do here. For instance, in product development, traditional approaches often rely on trial and error. However, within today's ecosystem, critical product information is compiled by our merchant development team and promptly relayed to the merchants together with traffic support for new product testing. These measures enable merchants to iterate their products with more success and improve the ROI of their R&D investments.

Speaker #5: Together with traffic support for new product testing, these measures enable merchants to iterate their products with more success and improved ROI of their R&D investments.

Speaker #1: And The truth Only . And these are two examples of our efforts to upgrade the supply chain . And faced with slowing industry growth and heightened competition , we are proactively choosing to channel resources into building a high quality supply chain .

Lei Chen: 这是我们供应链升级改造的两个具体的案例。面对行业增速放缓和竞争的加剧，我们主动选择把资源投入到高质量供应链的建设中，平台在新质供给、送货入村等底层能力上的扎实的投入，也将会成为公司在接下来新的十年里面保持可持续健康增长的驱动力。

Jiazhen Zhao: 这是我们供应链升级改造的两个具体的案例。面对行业增速放缓和竞争的加剧，我们主动选择把资源投入到高质量供应链的建设中，平台在新质供给、送货入村等底层能力上的扎实的投入，也将会成为公司在接下来新的十年里面保持可持续健康增长的驱动力。

[Company Representative] (PDD Holdings Inc.): These are two examples of our efforts to upgrade the supply chain. Faced with slowing industry growth and heightened competition, we are proactively choosing to channel resources into building a high quality supply chain. Our investments in foundational capabilities like New Quality Supply and delivery to villages will become the driving force behind the company's sustainable and healthy growth in the next decade. Operator, we are ready for the next analyst on the line.

Jiazhen Zhao: These are two examples of our efforts to upgrade the supply chain. Faced with slowing industry growth and heightened competition, we are proactively choosing to channel resources into building a high quality supply chain. Our investments in foundational capabilities like New Quality Supply and delivery to villages will become the driving force behind the company's sustainable and healthy growth in the next decade. Operator, we are ready for the next analyst on the line.

Speaker #1: Our investments in foundational capabilities like new quality supply and delivery to villages will become the driving force behind the company's sustainable and healthy growth in the next decade. Operator, we are ready for the next analyst on the line.

Speaker #2: Your next question comes from Kenneth Fong with UBS. Please ask your question.

Operator: Your next question comes from Kenneth Fong with UBS. Please ask your question.

Speaker #3: Hi all. In case, High Profile A can, for the new company, Global Business has experienced some ups and downs since last year.

Kenneth Fong: 谢谢管理层接受我的提问。我有两个问题，第一个是公司在全球化的业务里面，过去一段时间也有经历了不小的波动，从去年开始，我们也看到一些重要的市场出现了一些high profile的监管调查，以及跟公司业务比较相关的一些贸易政策也发生了一些重大变化。管理层可不可以跟我们分享一下目前对外部一些环境的看法？在这个环境里面，公司的全球化业务的发展的重心会在哪里？第二个问题就是关于利润率的。其实过去公司这个季度的利润率也会有一些起伏，跟管理层可不可以分享一下，就是公司过去一段时间，在推出了不同的业务的模式，对我们利润率会有什么影响呢？以及我们应该怎么思考公司的长期的利润率的水平呢？我具体翻译一下。The company global business has experienced some ups and downs. Since last year we have seen high profile regulatory inquiries in some key markets and significant changes in trade policy, highly relevant to our operations. Could management share your thoughts on the current external environment? And under such condition, where is your global business strategic focus in the next phase? And my second question is about the profitability. The company profitability over the past two quarters has experienced some fluctuation. Could management share how different business model launch that may impact the profitability? And how should we think about the company long term profit margin level? Thank you.

Speaker #3: We have seen high-profile regulatory inquiries in some key markets, and significant changes in trade policy are highly relevant to our operations. Could management share your thoughts on the current external environment and other such conditions?

Speaker #3: Where is your global business strategic focus in the next phase? And my second question is about profitability. The company's profitability over the past few quarters has experienced some fluctuation, so could management share how different business models launched may impact the profitability?

Speaker #3: And how should we think about the company’s long-term profit margin level? Thank you.

Lei Chen: 你好，我是陈磊，我先要回答你的第一个问题。那么过去一段时间里呢，我们确实收到了一些监管机构的问询。那随着全球业务快速的发展，我们在不同的国家都有一定的规模，那么预计来的这种惊讶、担忧是一个比较联合的展示，我觉得也是可以理解的。

Speaker #4: Kenneth, I was about to

Speaker #1: Hi , this is Chen Lei . I will take your first question . Over the past period , we have indeed received inquiries from regulatory authorities as our global business grew rapidly and reach a meaningful scale in different countries .

[Company Representative] (PDD Holdings Inc.): Hi, this is Lei Chen. I will take your first question. Over the past period, we have indeed received inquiries from regulatory authorities. As our global business grew rapidly and reached a meaningful scale in different countries, it is understandable that this has drawn surprise, concerns, and closer scrutiny.

Lei Chen: Hi, this is Lei Chen. I will take your first question. Over the past period, we have indeed received inquiries from regulatory authorities. As our global business grew rapidly and reached a meaningful scale in different countries, it is understandable that this has drawn surprise, concerns, and closer scrutiny.

Speaker #1: It is understandable that this has drawn surprise, concerns, and closer scrutiny.

Lei Chen: 管理层相信，当前的监管审查，为我们进入下一个阶段的成长，奠定很好的基础。同时，也为我们在这种快速变化的国际政策环境下的模式迭代，指明方向。自从我们全球化业务开始开展以来，我们始终秉持这种长期主义理念，在扎根供应链的基础上，致力于在各个市场实现可持续的增长，我们希望能够为消费者创造真实的价值。

Speaker #4: On the To the

Speaker #1: However, our management believes that the current regulatory scrutiny will lay a solid foundation for our next stage of growth and will also provide direction for iterating our model amid the rapidly evolving international political and regulatory landscape. Since the launch of our global business, we have consistently focused on the long term.

[Company Representative] (PDD Holdings Inc.): However, our management believes that the current regulatory scrutiny will lay a solid foundation for our next stage of growth and will also provide direction for iterating our model amid the rapidly evolving international political and regulatory landscape. Since the launch of our global business, we have consistently focused on the long term. Building on our deep roots in the supply chain, we are committed to achieving sustainable development in each market and creating real value for consumers.

Lei Chen: However, our management believes that the current regulatory scrutiny will lay a solid foundation for our next stage of growth and will also provide direction for iterating our model amid the rapidly evolving international political and regulatory landscape. Since the launch of our global business, we have consistently focused on the long term. Building on our deep roots in the supply chain, we are committed to achieving sustainable development in each market and creating real value for consumers.

Speaker #1: Building on our deep roots in the supply chain, we are committed to achieving sustainable development in each market and creating real value for consumers.

Lei Chen: 那么随着业务规模的扩大以及各地监管环境的快速变化，让我们深刻地认识到合规是底线。那么作为一个各地社会中的企业呢，我觉得我们要符合当地的需要，回归初心，固守本分。那么为各地社会呢做出贡献呢，是一个平台，电商平台根本的责任。那么因此呢，管理团队在业务合规上也做了大量的投入。

Speaker #4: Across

Speaker #1: As our business scales and the regulatory environment across regions changes rapidly, we deeply recognize that regulatory compliance is the baseline requirement. As a company operating within local communities, it is our fundamental responsibility as an e-commerce platform to meet local needs and stay true to our core mission.

[Company Representative] (PDD Holdings Inc.): As our business scales and regulatory environment across regions change rapidly, we deeply recognize that regulatory compliance is the baseline requirement. As a company operating within local communities, it is our fundamental responsibility as an e-commerce platform to meet local needs, stay true to our core mission, fulfill our duties, and contribute meaningfully to the societies we operate in. Therefore, our management team invest significantly in business compliance.

Lei Chen: As our business scales and regulatory environment across regions change rapidly, we deeply recognize that regulatory compliance is the baseline requirement. As a company operating within local communities, it is our fundamental responsibility as an e-commerce platform to meet local needs, stay true to our core mission, fulfill our duties, and contribute meaningfully to the societies we operate in. Therefore, our management team invest significantly in business compliance.

Speaker #1: Fulfill our duties and contribute meaningfully to the societies we operate in. Therefore, our management team invests significantly in business compliance.

Lei Chen: 但是呢，我们也看到各个国家地区在贸易政策、税务、数据、商品合规等监管政策呢，都在发生着比较大的变化，那不同的地区要求也很不一样，那么有的时候呢，甚至是矛盾的、互斥的，不可避免地给我们带来更大的压力和挑战，带来更多的不确定性。

Speaker #4: We Something we

Speaker #1: However , trade policies . Taxation data . Regulations , product compliance requirements , and other regulatory frameworks are undergoing significant changes across different countries and regions .

[Company Representative] (PDD Holdings Inc.): However, trade policies, taxation, data regulations, product compliance requirements, and other regulatory frameworks are undergoing significant changes across different countries and regions. These requirements often vary considerably and can sometimes contradict one another, inevitably bringing greater challenges and uncertainty.

Lei Chen: However, trade policies, taxation, data regulations, product compliance requirements, and other regulatory frameworks are undergoing significant changes across different countries and regions. These requirements often vary considerably and can sometimes contradict one another, inevitably bringing greater challenges and uncertainty.

Speaker #1: These requirements often vary considerably and can sometimes contradict one another, inevitably bringing greater challenges and uncertainty. We are actively learning, adapting to these changes, and continuously enhancing our compliance capabilities to create sustainable value for society.

Lei Chen: 那么我们呢，也在努力地学习，去适应变化，持续地提升合规运营的能力，能够为社会创造可持续的价值。

[Company Representative] (PDD Holdings Inc.): We are actively learning, adapting to these changes, and continuously enhancing our compliance capabilities to create sustainable value for society.

Lei Chen: We are actively learning, adapting to these changes, and continuously enhancing our compliance capabilities to create sustainable value for society.

Lei Chen: 那么刚才呢，你也提到了这个全球的贸易政策的变化。那么从去年开始，我们看到了不少市场啊，贸易政策的改变。那么我们的团队呢，在业务合规的前提下，那我们根据不同地区的监管环境和市场情况，对我们业务模式做了快速的迭代，和维持了可靠的消费者服务。能做到这一点呢，是和我们过去多年积累的运营能力是息息相关的。

Speaker #4: For Q2 data, we...

Speaker #1: You also mentioned changes in global trade policies. Since the beginning of last year, we have indeed seen some shifts in trade policies in many major markets, ensuring business compliance.

[Company Representative] (PDD Holdings Inc.): You also mentioned changes in global trade policies. Since the beginning of last year, we have indeed seen some shifts in trade policies in many major markets. Ensuring business compliance, the team has quickly iterated our business model based on the regulatory environment and market conditions in different regions to deliver reliable services to consumers. This is closely tied to the supply chain capabilities we have accumulated over the years.

Lei Chen: You also mentioned changes in global trade policies. Since the beginning of last year, we have indeed seen some shifts in trade policies in many major markets. Ensuring business compliance, the team has quickly iterated our business model based on the regulatory environment and market conditions in different regions to deliver reliable services to consumers. This is closely tied to the supply chain capabilities we have accumulated over the years.

Speaker #1: The team has quickly iterated our business model based on the regulatory environment and market conditions in different regions, to deliver reliable services to consumers.

Speaker #1: This is closely tied to the supply chain capabilities we have accumulated over the years. Therefore, moving forward, the strategic focus of our company's global business will remain on investing in supply chain capabilities. Every aspect of this directly impacts the consumer shopping experience and, accordingly, will be a key area of our investment.

Lei Chen: 那所以接下来呢，我们公司全球化业务的发展重心可能还是会放在头路上，因为在这里呢，每一个环节都会对消费者的购物体验有着直接的影响。所以呢，这个方向呢，也将会是我们重点投入的方向。谢谢。

[Company Representative] (PDD Holdings Inc.): Therefore, moving forward, the strategic focus of our company's global business will remain on investing in supply chain capabilities. Every aspect of this directly impacts the consumer shopping experience and accordingly will be a key area of our investment. Thank you.

Lei Chen: Therefore, moving forward, the strategic focus of our company's global business will remain on investing in supply chain capabilities. Every aspect of this directly impacts the consumer shopping experience and accordingly will be a key area of our investment. Thank you.

Speaker #1: Thank you

Jiazhen Zhao: 你好，我是赵佳珍。我来回答你的第二个问题。首先我想明确的是，公司目前依然处于这个战略的投入期，当前的外部环境和竞争的格局都在发生快速的变化。那为了满足消费者不断演变的需求，我们正在与这个平台的商家紧密地协同，持续探索，并推出能够适应新环境的业务模式。那任何的新模式，从开始到全面铺开，都需要平台在初期进行坚决的资源投入。

Speaker #5: So High

Speaker #6: This is Arjun. Let me answer your second question. First, I want to emphasize that currently, the company is still in a strategic investment phase.

[Company Representative] (PDD Holdings Inc.): This is Jiazhen Zhao. Let me answer your second question. First, I want to emphasize that currently the company is still in a strategic investment phase. The external environment and competitive landscape are changing rapidly. To meet the consumers' evolving needs, we are working closely with our merchants to explore and launch new business models that is suited to the new conditions. Any new model from launching to a full roll out requires the platform to commit substantial resources in its early stages.

Jiazhen Zhao: This is Jiazhen Zhao. Let me answer your second question. First, I want to emphasize that currently the company is still in a strategic investment phase. The external environment and competitive landscape are changing rapidly. To meet the consumers' evolving needs, we are working closely with our merchants to explore and launch new business models that is suited to the new conditions. Any new model from launching to a full roll out requires the platform to commit substantial resources in its early stages.

Speaker #6: The external environment and competitive landscape are changing rapidly. And to meet the consumer's evolving needs, we are working closely with our merchants to explore and launch new business models.

Speaker #6: That is suited to the new conditions. Any new model, from launching to a full rollout, requires the platform to commit substantial resources in its early stages.

Jiazhen Zhao: 那不论是新业务模式的探索，还是我们对供应链的这个战略性的投入，那都是基础的、长期的工作。那投资与回报之间呢存在的时间错配，也必然会对我们特定的阶段的业绩表现产生直接的影响。

Speaker #5: To Jiazhen Zhao .

Speaker #6: Whether it is exploring new business models or making strategic investments in the supply chain, these are fundamental and long-term initiatives.

[Company Representative] (PDD Holdings Inc.): Whether it is exploring the new business models or making strategic investments in the supply chain, these are fundamental and long-term initiatives. The timing difference between investment and return will inevitably have a direct impact on our performance in certain stages.

Jiazhen Zhao: Whether it is exploring the new business models or making strategic investments in the supply chain, these are fundamental and long-term initiatives. The timing difference between investment and return will inevitably have a direct impact on our performance in certain stages.

Speaker #6: The timing difference between investment and return will inevitably have a direct impact on our performance in certain stages.

Jiazhen Zhao: 那我们此前呢，也与，也多次和大家沟通过，那在短期的财务表现与平台生态长期的价值之间呢，我们会坚决地选择后者。那因此呢，随着我们持续的战略投入，叠加当前复杂多变的宏观环境，公司未来的利润率呢，在不同的季度之间会继续呈现起伏和波动，这个将会是一个常态。

Speaker #5: And The

Speaker #6: As we have communicated on multiple occasions between short term financial performance and long term value of the platform ecosystem . We will resolutely choose the latter and therefore , as we continue our strategic investments and coupled with a complex and volatile macro environment , it could be normal to see fluctuations in our profit margins from quarter to quarter

[Company Representative] (PDD Holdings Inc.): As we have communicated on multiple occasions between short-term financial performance and the long-term value of the platform ecosystem, we will resolutely choose the latter. Therefore, as we continue our strategic investment coupled with the complex and volatile macro environment, it could be normal to see fluctuations in our profit margins from quarter to quarter.

Jiazhen Zhao: As we have communicated on multiple occasions between short-term financial performance and the long-term value of the platform ecosystem, we will resolutely choose the latter. Therefore, as we continue our strategic investment coupled with the complex and volatile macro environment, it could be normal to see fluctuations in our profit margins from quarter to quarter.

Jiazhen Zhao: 在过去的几个月里，我们在股东大会上郑重宣布的重大战略正在转化为具体的项目落地，业务和组织正在经历深刻的变革。我们建议大家不要过多地关注单一季度的利润率指标，而是更多地关注我们平台生态的高质量发展。只有健康的平台生态和强大的供应链，平台才能够有长期可持续的内生价值的增长。

Speaker #5: On The Recent Jiazhen Zhao

Speaker #6: And over the past few months , the strategy we announced at the shareholders meeting is being translated into concrete projects . The business and organization are undergoing deep transformation and we suggest not to focus too much on the profitability of a single quarter , but rather pay more attention to the high quality development of our platform ecosystem .

[Company Representative] (PDD Holdings Inc.): Operator, let's move on to the next analyst on the line.

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

Speaker #6: And because only with a healthy platform ecosystem and a robust supply chain can the platform achieve sustainable growth in the long term, intrinsic value operator, let's move on to the next analyst on the line.

[Analyst]: 感谢。

Speaker #7: Hello . Are

[Company Representative] (PDD Holdings Inc.): Hi, Joyce. Please go ahead.

Speaker #6: Please go ahead

Speaker #7: Oh , oh , yes . Yeah . Sorry . Are . Nick Yes . The future My The The I will translate myself .

[Analyst]: 感谢管理层给我这个提问的机会。我的第一个问题是也是和利润率相关的，公司去年开始相继推出了不少生态投入的计划，包括去年的千亿扶持，刚才讲话中管理层也提到了重投供应链，想请管理层讲一讲公司如何规划这些项目的投入回报周期，预计长远来看会对公司的业务表现带来什么样的影响。我第二个问题是，今年前两个月的线上零售增长势头也非常好嘛，可不可以请管理层分享一下公司对消费市场的这个趋势是怎么看的？针对市场上增速较快的类目，公司有没有针对性的策略来更好地把握这个市场机会。 My first question is related to the profit margin as well. Since last year, the company launched several investment initiatives, including last year's Hundred Billion Support Program, and the management just mentioned heavy investment in the supply chain in the remarks. Could the management elaborate a bit on how the company think about the investment and return cycles for these projects, and what will be the long term impact on the company's financial performance?

Speaker #7: My first question is related to the profit margin as well. Since last year, the company launched several investment initiatives, including last year's $100 billion support program, and the management just mentioned heavy investment in the supply chain in the remarks.

Speaker #7: Could the management elaborate a bit on how the company thinks about the investment and return cycles for these projects? And what will be the long-term impact on the company's financial performance? My second question is, online retail sales showed very strong growth momentum in the first two months of the year.

[Analyst]: My second question is, online retail sales showed very strong growth momentum in the first two months of the year. Could the management share the company's view on the consumer market, like regarding categories with faster growth in the market? Does the company have targeted strategies to capture new opportunities in the fast growing product categories? Many thanks.

Speaker #7: Could management share the company's view on the consumer market, such as regarding categories with faster growth in the market? Does the company have targeted strategies to capture new opportunities in the fast-growing product categories?

Speaker #7: Many thanks

Jiazhen Zhao: 你好，我是赵佳珍，我来回答你的问题啊。那大概在一年多前呢，我们就进一步地有意识到平台生态长期可持续发展的重要性，所以相继推出了百亿减免、千亿扶持的一系列的这个惠商的计划，我们拿出了真金白银来帮扶商家和产业，为供应链的更新升级呢，创造充分的空间。

Speaker #5: You

Speaker #6: Hi, this is Arjun. I'll answer your question. About a year ago, we further recognized the importance of the long-term development of the ecosystem, and we launched a series of merchant support initiatives, such as the 10 billion fee reduction and 100 billion support program, committing tangible resources to help the merchants and industries, creating more room for innovation.

[Company Representative] (PDD Holdings Inc.): Hi, this is Zhao Jiazhen. I'll answer your question. About a year ago, we further recognized the importance of the long-term development of the ecosystem, and we launched a series of merchant support initiatives such as the Ten Billion Fee Reduction and the Hundred Billion Support Program, committing tangible resources to help the merchants and industries, creating more room for innovation.

Jiazhen Zhao: Hi, this is Zhao Jiazhen. I'll answer your question. About a year ago, we further recognized the importance of the long-term development of the ecosystem, and we launched a series of merchant support initiatives such as the Ten Billion Fee Reduction and the Hundred Billion Support Program, committing tangible resources to help the merchants and industries, creating more room for innovation.

Jiazhen Zhao: 我们的管理层一致认为，随着平台成长为拥有社会影响力的公众平台，我们应该从更大的公众利益和行业长期健康的生态的角度来考虑企业发展的这个问题。公司去年底在股东大会上明确地聚焦主业、纵深供应链升级的整体战略，就是在这个方向上的延伸和加码。

Speaker #5: Now We I

Speaker #6: Our management unanimously agreed that as the platform grows into a public platform with social influence, we should consider the company's development from the broader perspective of public interest and the long-term health of the industry ecosystem.

[Company Representative] (PDD Holdings Inc.): Our management unanimously agrees that as the platform grows into a public platform, with social influence, we should consider the company's development from the broader perspective of public interest and the long term health of the industry ecosystem. The strategy of focusing on core business and investing deeply in supply chain upgrades, that was announced at the shareholders meeting at the end of last year, is an extension and reinforcement in this direction.

Jiazhen Zhao: Our management unanimously agrees that as the platform grows into a public platform, with social influence, we should consider the company's development from the broader perspective of public interest and the long term health of the industry ecosystem. The strategy of focusing on core business and investing deeply in supply chain upgrades, that was announced at the shareholders meeting at the end of last year, is an extension and reinforcement in this direction.

Speaker #6: The strategy of focusing on core business and investing deeply in supply chain upgrades . That was . That was announced at the shareholders meeting at the end of last year , is an extension .

Speaker #6: And reinforcement in this direction

Jiazhen Zhao: 那，电商行业呢，经过多年的发展，生态不断地成熟，那商家对平台呢也提出了多元化的要求。从最初的交易平台到现在是全面赋能的生意伙伴，商家最需要平台支持的也从直接的流量倾斜延伸到了例如研发、生产、销售的方方面面。那这就要求我们把这个运营做得更细，需要结合不同行业的特点，能够推出有针对性的方案，打造更有竞争力的供应链。

Speaker #5: The

Speaker #6: And after years of development, the e-commerce industry ecosystem is becoming more mature, and merchants' demand on the platform has also become more diverse.

[Company Representative] (PDD Holdings Inc.): After years of development, the e-commerce industry ecosystem is becoming more mature and merchants demand on the platform has also become more diverse. The platform's role has evolved from initially being a transaction platform to now becoming a comprehensive business partner. Accordingly, the support that merchants need the most from the platforms has also extended from traffic support to all aspects of their operations, including R&D, production, and sales. This requires us to go deeper in our operations to come up with targeted support plans, tailored to different industries and thereby building a more competitive supply chain.

Jiazhen Zhao: After years of development, the e-commerce industry ecosystem is becoming more mature and merchants demand on the platform has also become more diverse. The platform's role has evolved from initially being a transaction platform to now becoming a comprehensive business partner. Accordingly, the support that merchants need the most from the platforms has also extended from traffic support to all aspects of their operations, including R&D, production, and sales. This requires us to go deeper in our operations to come up with targeted support plans, tailored to different industries and thereby building a more competitive supply chain.

Speaker #6: The platform's role has evolved from . Initially being a transaction platform to now becoming a comprehensive business partner Accordingly , the support that merchants need the most from the platforms has also extended from traffic support to all aspects of their operations , including R&D , production and sales This requires us to go deeper in our operations to come up with targeted support plans tailored to different industries and thereby building a more competitive supply chain Such investments involve thousands of merchants and cannot be achieved overnight .

Jiazhen Zhao: 那这样的投入呢，涉及产业链的千千万万的商家，不可能一蹴而就。所以呢，我们已经做好了长期耐心的投入的准备。我们也很高兴地看到，不少的投入呢，已经产生了一些效果。就比如我刚刚提到的这个新质供给项目的支持下，一些商家选择把这个平台减免的成本投入到研发团队扩充，还有产线升级上面，结合平台数字化的赋能，他们已经走上了产品差异化转型的道路。

[Company Representative] (PDD Holdings Inc.): Such investments involve thousands of merchants and cannot be achieved overnight. We are prepared for long term and patient investments, and are very pleased to see that many of these investments have already yielded some results. For example, with the support of the New Quality Supply project I just mentioned, some merchants have chosen to reinvest the fee reductions provided by the platform into expanding their R&D teams and upgrading production lines. Together with the platform's digital solutions, they have started on the path of product differentiation and transformation.

Jiazhen Zhao: Such investments involve thousands of merchants and cannot be achieved overnight. We are prepared for long term and patient investments, and are very pleased to see that many of these investments have already yielded some results. For example, with the support of the New Quality Supply project I just mentioned, some merchants have chosen to reinvest the fee reductions provided by the platform into expanding their R&D teams and upgrading production lines. Together with the platform's digital solutions, they have started on the path of product differentiation and transformation.

Speaker #6: We are prepared for long-term and patient investment, and are very pleased to see that many of these investments have already yielded some results.

Speaker #6: For example, with the support of the new Quality Supply project I just mentioned, some merchants have chosen to reinvest the fee reductions provided by the platform into expanding their R&D teams and upgrading production lines.

Speaker #6: And together with the platform's digital solutions, they have started on the path of product differentiation and transformation.

Jiazhen Zhao: 那这种长期的结构性的投入不会立刻地体现在短期的财务表现上，但它是接下来平台和电商生态长期可持续增长的重要一环。那我们呢会扎扎实实地把这些长期投入做到位，通过真金白银的反哺生态，降低商家成本，提升供应链的质量，优化消费者体验，通过供应链这个核心关键，实现平台再造，带动生态体系的价值跃迁。

Speaker #5: And We

Speaker #6: These long-term structural investments will not be immediately reflected in the financial performance in the short run, but they are crucial. They are part of the long-term sustainable growth of the platform and ecosystem.

[Company Representative] (PDD Holdings Inc.): These long term structural investments will not be immediately reflected in the financial performance in the short run, but they are a crucial part of the long term sustainable growth of the platform and ecosystem. We will diligently implement these long term projects by reinvesting concrete resources back into the ecosystem. We target to lower merchant costs, enhance supply chain quality, and improve consumer experience. Through investing in the supply chain, we will seek to reinvent the platform and move the ecosystem up the value chain.

Jiazhen Zhao: These long term structural investments will not be immediately reflected in the financial performance in the short run, but they are a crucial part of the long term sustainable growth of the platform and ecosystem. We will diligently implement these long term projects by reinvesting concrete resources back into the ecosystem. We target to lower merchant costs, enhance supply chain quality, and improve consumer experience. Through investing in the supply chain, we will seek to reinvent the platform and move the ecosystem up the value chain.

Speaker #6: We will diligently implement this. Long-term projects by reinvesting concrete resources back into the ecosystem. We target to lower merchant costs, enhance supply chain quality, and improve consumer experience through investing in the supply chain.

Speaker #6: We will seek to reinvent the platform and move the ecosystem up the value chain And regarding your second question , we are also very pleased to see the improvement in the overall consumption market However , at the same time , we also clearly recognize that in today's competitive landscape , we still face some challenges .

Jiazhen Zhao: 关于你的第二个问题，我们非常高兴看到这个消费大盘不断地向好。但与此同时，我们也清晰地看到，在当前激烈的竞争态势下，我们依然面临挑战。电商平台未来的表现将会越来越取决于它能够给整体的供应链创造多少增量价值，而不是仅依靠简单的流量获取和分配。

[Company Representative] (PDD Holdings Inc.): Regarding your second question, we are also very pleased to see the improvement in the overall consumption market. However, at the same time, we also clearly recognize that in today's competitive landscape, we still face some challenges. The future performance of e-commerce platforms will increasingly be dependent on how much incremental value they can create for the entire supply chain, rather than relying solely on traffic acquisition and allocation.

Jiazhen Zhao: Regarding your second question, we are also very pleased to see the improvement in the overall consumption market. However, at the same time, we also clearly recognize that in today's competitive landscape, we still face some challenges. The future performance of e-commerce platforms will increasingly be dependent on how much incremental value they can create for the entire supply chain, rather than relying solely on traffic acquisition and allocation.

Speaker #6: The future performance of e-commerce platforms will increasingly be dependent on how much incremental, incremental value they can create for the entire supply chain, rather than relying solely on traffic acquisition and allocation.

Jiazhen Zhao: 因此，我们在这个时候坚定地选择重仓供应链，针对不同的类目，我们的招商团队会与商家深度地协同，基于行业洞察，为他们提供定制的行业方案，帮助平台商家新质转型升级，推动供应链的高质量发展。

Speaker #5: Now, on to the next agenda item.

Speaker #6: And therefore, at this juncture, we have made a firm decision to invest deeply in the supply chain and for different product categories.

[Company Representative] (PDD Holdings Inc.): Therefore, at this juncture, we have made a firm decision to invest deeply in the supply chain. For different product categories, our merchant development teams will work closely with sellers, and based on industry insights, we will provide them with tailored industry solutions to help merchants achieve new quality transformation and driving a high quality development of the supply chain.

Jiazhen Zhao: Therefore, at this juncture, we have made a firm decision to invest deeply in the supply chain. For different product categories, our merchant development teams will work closely with sellers, and based on industry insights, we will provide them with tailored industry solutions to help merchants achieve new quality transformation and driving a high quality development of the supply chain.

Speaker #6: Our merchant development teams will work closely with sellers and based on industry insights , we will provide them with tailored industry solutions to help merchants achieve new quality transformation and driving a high quality development of the supply chain And we firmly believe that these investments are essential for the e-commerce high quality development in the next stage .

Jiazhen Zhao: 那我们坚信这些投入是推动电商供应链迈向下一个阶段高质量发展的必经之路，我们会坚定地长期做下去。谢谢。

[Company Representative] (PDD Holdings Inc.): We firmly believe that these investments are essential for the e-commerce high quality development in the next stage. We are committed to patiently furthering these efforts in the long run. Thank you.

Jiazhen Zhao: We firmly believe that these investments are essential for the e-commerce high quality development in the next stage. We are committed to patiently furthering these efforts in the long run. Thank you.

Speaker #6: And we are committed to patiently furthering these efforts in the long run. Thank you. Thank you, Joyce, and thank you.

[Analyst]: 非常清楚，感谢管理层。

[Company Representative] (PDD Holdings Inc.): Thank you, Joyce. Thank you, 佳珍. Thank you for joining us today. We look forward to speaking with you early again next quarter. Thank you and have a great day.

Lei Chen: Thank you, Joyce. Thank you, 佳珍. Thank you for joining us today. We look forward to speaking with you early again next quarter. Thank you and have a great day.

Speaker #6: Jiajun, thank you for joining us today. We look forward to speaking with you again early next quarter. Thank you, and have a great day.

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

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