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 GlobeNewswire services.

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

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.

Delivering the prepared remarks today will be Mr. Li Jun, our Finance Director.

Jiazhen and Lei will make some general remarks on our performance for the past quarter and our strategic focus. Jiong will then walk us through our financial results for the fourth quarter and physical year ended December 31st, 2025.

During the Q&A session, Lei and Jiazhen will answer questions in Chinese and we'll help translate. Please kindly know the 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.

大家好，我是赵佳臻。感谢各位参加我们2025年第四季度及全年业绩的公开发布。

Hello, everyone, and thank you for joining our earnings call for the fourth quarter and fiscal year of 2025. 2025年是拼多多创业的第十个年头，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惠商战略，公司上下全力投入，将助农惠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，实行联席董事长制度，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。

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. 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. 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.

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。

In the past year, we delivered steady results. This quarter, the group's revenue reached RMB123.9 billion, growing 12% year-on-year, while full-year revenue reached RMB431.8 billion, up 10% year-on-year.

Both this quarter's and the annual and net income decreased year-on-year, which primarily reflects our sustained investments 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.

受益于千亿扶持的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。 Benefiting from long-term investments on both supply and demand sides through initiatives like the 100 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 industrial belts, have become core pillars supporting the platform and the ecosystem, while also bringing consumers more affordable, high-quality products. 在千亿扶持的持续投入下，多多好特产、新质供给、电商西进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、产业带创造了更多的利润空间和创新的空间。

With the continued investments under the 100 billion support program, dedicated projects such as Duoduo Local Specialties, new quality supply, and logistic 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 create room for profit and innovation for agricultural regions and industrial belts.

在第四季度，多多好特产专项团队深入安岳柠檬、普洱咖啡、武当瓜子、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，进一步的推动农特产业实现长效的发展。 In the fourth quarter, the Duoduo Local Specialties team visited agricultural regions, such as Anyue lemons, Pu'er coffee, Wuhuan seeds, Meizhou pomelos, Wenshan blueberries, Fuzhou abalone, and Lianyungang seaweed.

Through customized one product, one 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 their places of origin, thereby enabled sustainable growth in specialty agriculture industries.

在产业带，新质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，推动供应链运行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。 In industrial belts, we accelerated the 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 belts transition from commoditized competition to brand building.

在重仓供应链的同时，我们还通过电商西进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，我们还在电商西进取得成效的基础上，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拓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寄递网络，并承担送货入村订单的二段转二段中转费，将更多的偏远乡村纳入了包邮区。 While stepping up our investments in the supply chain, we also unlocked the consumption potential in remote regions through our logistic support program, driving new growth opportunities for merchants.

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, 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. 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。

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 livestreaming, protection of minors, IP protection, and the development of a food database, all to safeguard the food safety for consumers during the festivities.

在全球电商的的业务上，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。 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. 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.

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。 20-

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.

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.

下面我把话筒交给陈磊，请他为大家进一步的介绍。 Now, I'll hand it over to Chen Lei for further remarks.

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 merchant ecosystem. We also established the co-chair structure to further improve our governance and firmly anchored our company's strategic focus on the high-quality development of the supply chain.

Through these efforts, we continue to create long-term value for consumers, for merchants, the industry, and the society. It has been nearly a year since we launched the 100 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 agriculture regions and manufacturing hubs to help hundreds of regions establish standardized production system and to explore differentiated and the brand-oriented growth models.

This effort has significantly improved the efficiency and quality of supply chain operations, driving the supply chain's 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 18th, Double 11, and Spring Festival.

Quality products from different regions broke through geographical boundaries and offering consumers more diverse selection and further enhancing their quality of life. Our global e-commerce business continued to deliver steady growth and has reached meaningful scale in most countries it served, accomplishing in three years what took the Pinduoduo business 10 years to complete.

However, over the past year, the global geopolitical landscape has grown more complex. Trade and regulatory policies across different countries and regions continue to evolve.

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, talent, and resources to its transformation. We aim to empower our merchants and manufacturers to become innovators with direct go-to-market capabilities, develop consumer insights, come up product design, and building brands.

This will drive the 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 three-year strategy adopted at the shareholders meeting, and we are pleased to see some results.

In the fourth quarter, our ongoing investments in agriculture research achieved new results. Last October, for the second consecutive year, we were invited to attend the World Food Forum hosted by the UN Food and Agriculture Organization, representing Asian enterprises.

We shared our experience and achievements in supporting digital agriculture innovation, and we also sponsored two great agriculture research teams that took the stage at the forum, bringing new energy into agriculture research and development. Since the start of 2026, competition 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 economic and trade climate, as well as in regulatory policies across various countries and regions. This will inevitably bring more challenges and weight on our future performance, putting pressure on our profitability in 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 the industry and the society. Now, I would turn the call over to Li Jun, who will walk you through our financial performance for the fiscal year of 2025.

Thank you, Lei. Hello, everyone.

This is Jiong. Now, let me walk you through our financial performance in the fourth quarter and fiscal year ended December 31st, 2025.

In terms of income statements, in Q4, our total revenues increased 12% year-over-year to RMB123.9 billion, and 10% year-over-year to RMB431.8 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 RMB60 billion this quarter, up 5% compared to the same period of 2024. Our transaction services revenues this quarter were RMB63.9 billion, up 19% versus the same period of 2024.

Moving on to costs and expenses. Our total costs of revenues increased 15% from RMB47.8 billion in Q4 2024 to RMB55.2 billion this quarter.

For the full year, our total costs of revenues increased 23% to RMB188.8 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 RMB41 billion from RMB37.2 billion in the same quarter of 2024.

On a non-GAAP basis, our total operating expenses increased to RMB39.3 billion this quarter from RMB35.1 billion in Q4 2024. Our total non-GAAP operating expenses as a percentage of total revenues was 32% in Q4.

For full-year 2025, total non-GAAP operating expenses were RMB140.7 billion, up from RMB122 billion in 2024. Looking to specific expense items.

Our non-GAAP sales and marketing expenses this quarter were RMB34 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 RMB109.1 billion to RMB123.3 billion in 2025. Our non-GAAP G&A expense was RMB907 million in Q4, versus RMB998 million in the same quarter of 2024.

Our annual non-GAAP G&A expenses were RMB3.2 billion in 2025, versus RMB2.8 billion last year. Our research and development expenses were RMB4.4 billion in the fourth quarter on a non-GAAP basis and RMB5 billion on a GAAP basis.

On a GAAP basis, operating profit for the quarter was RMB27.7 billion, versus RMB25.6 billion in the same quarter 2024. Non-GAAP operating profit was RMB29.5 billion, versus RMB28 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 RMB102.6 billion, compared with RMB118.3 billion in 2024.

Net income attributable to ordinary shareholders was RMB24.5 billion for the quarter and RMB99.4 billion for the full year. In the fourth quarter, basic earnings per ADS was RMB17.50, and diluted earnings per ADS was RMB16.51, versus basic earnings per ADS of RMB19.76 and diluted earnings per ADS of RMB18.53 in the same quarter of 2024.

Non-GAAP net income attributable to ordinary shareholders was RMB26.3 billion for the quarter and RMB107.3 billion for the full year. In the fourth quarter, non-GAAP diluted earnings per ADS was RMB17.69, versus RMB20.15 in the same quarter of 2024.

That completes income statements. Now, let me move on to cash flow.

Our net cash flow generated from operating activities was RMB24.1 billion in Q4 and RMB106.9 billion for the full year of 2025, compared with RMB29.5 billion in the same quarter of 2024 and RMB121.9 billion in 2024. As of December 31st, 2025, the company had RMB422.3 billion in cash, cash equivalents, and short-term investments.

Thank you, and this concludes my prepared remarks.

Thank you, Jiong. Next, we'll move on to the Q&A session.

Today's Q&A session, Lei and Jiazhen will take questions from analysts on the line. We could take a maximum of two questions from each analyst.

Lei and Jiazhen will answer questions in Chinese and we'll help translate. Operator, we are open for questions.

Hello, thank you. 管理层晚上好，谢谢接受我的提问。有两个问题。第一个问题是，我们公司去年底的我们在那个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，也受到蛮复杂的这一些监管环境的新挑战，想请管理层如何在这样的这个环境中保持团队的这个敏捷和执行力？然后第二个问题是，过去这个季度我们看到电商平台增长有在放缓，然后公司过去两个季度的这个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，然后我们行业下阶段的一个增长有可能来自于哪些地方？我自已翻译一下。

Have two questions. First is that the company makes some organization adjustment at the shareholder meeting at the end of last year.

Currently, the company is operating in over 90 markets and at the same time also face new challenges from the complex regulatory environments. How does the company maintain the flexibility and also the quality of execution in such an environment?

Then second question is over the past quarter, we have seen a slowdown in the growth of e-commerce platform in China, and the company's online marketing revenue growth also show a slowdown over the past two quarters. Could management share with us your view on the current state of China e-commerce market and where the next phase of growth for the industry might come from?

Thank you. 你好，我是赵佳臻。我来回答第一个问题啊。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。

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. 在这个这个过程中呢，我们公司的治理以及内部人才的成长呢，我们感觉是跟不上业务的发展的，在很多地方捉襟见肘。那当前的国际地缘政治变化又很快，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。

While

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.

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。当然呢这肯定需要一个过程的啊。去年的12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，就是这样子的一个系统性变革的开始。

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. 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. 那在未来的一段时期里呢，我们将会花更大的精力、财力和物力投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。

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. 那我也来回答一下你的第二个的问题啊。那确实像你所说的，过去几个季度呢，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。在这样子的一个新阶段里呢，我们提出重仓供应链，就是认识到了电商平台它不应该是一个简单的交易平台，而应该而且也能够做得更多，为整个供应链的各个参与方呢创造更多的价值。

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, creating greater value for all participants across the entire supply chain. 那重仓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普惠性的项目。那在这里呢我还要着重提两个专项。

Our deep investments in the supply chain cover multiple aspects. Initiatives launched recently, such as Duoduo Local Specialties and logistic support for remote regions, are all projects empowering the supply chain to be more inclusive.

Here, I will also highlight two specific programs. 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這個二段中转费。

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, 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 villages level, across multiple regions in China and with the platform covering the transshipping fees for orders delivered to these villages. 那在这个新模式下呢，平台商家只需要把商品发送到中转仓，中转仓会完成从仓库到村级代售点的运输。那这个是平台在已有经验的基础上，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。

Under this new model, merchants only need to send their products to the 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 applied the transshipping models to the last-mile delivery to the villages, improving the shopping experiences in remote areas and helping merchants to tap into new market opportunities.

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。 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, and driving the transformation of the supply chain system.

在这里呢平台可以做的有很多，比如说产品研发。那传统模式下的新产品研发呢往往有碰运气的成分，但是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，帮助商家有的放矢地迭代商品，提升研发投入的产出比。 There's 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.

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. 那这是我们供应链升级再造的两个具体的案例。那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。

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.

嗨，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的变化。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？我自己翻译一下。 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?

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 launched that may impact the profitability, and how should we think about the company long-term profit margin level? Thank you.

Kenneth，你好，我是陈磊。那我先来回答你的第一个问题。过去这段时间里呢，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，我们在很多国家都有一定的规模。那与此进来的这种新业务带来更严格的审视，我觉得是可以理解的。

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 reached a meaningful scale in different countries, it is understandable that this has drawn surprise, concerns, and closer scrutiny.

但是我们管理层相信呢，当前的这种监管审视会为我们呢进入下一个阶段的成长呢奠定良好的基础。同时呢，也为我们在这种快速变化的这种国际政策环境下的这种模式迭代呢指明方向。那自从我们全球化业务开始开展以来呢，我们始终是秉持这种长期主义。那么在扎根供应链的基础之上，致力于在各个市场实现可持续的发展。我们希望能够为消费者创造真实的价值。 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.

那么随着业务规模的扩大以及各地监管环境的快速变化，那我们深刻的认识到呢合规是底线。那么作为一个在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，恪守本分。那么为各地社会做出贡献呢是一个平台电商平台的根本的责任。那么因此呢管理团队在业务合规上也投入了大量的投入。 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 and 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.

但是呢，我们也看到当前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，无可避免的给我们带来更大的压力和挑战，带来很多的不确定性。 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. 但我们呢也在努力的学习，积极的适应变化，持续的提升合规运营的能力，为社会创造可持续的价值。

We are actively learning, adapting to these changes, and continuously enhancing our compliance capabilities to create sustainable value for society. 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贸易政策的改变。那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，我们对我们的业务模式做了快速的迭代，维持了可靠的消费者服务。能做到这一点呢，这和我们过去多年积累的供应链能力是息息相关的。

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 environments 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.

那所以接下来呢，我们公司全球化业务的发展重心还是会放在投入上。因为这里呢每一个环节都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多年投入的方向。谢谢。 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.

你好，我是赵佳臻。我来回答你的第二个问题。首先我想明确的是，公司呢目前依然处于这个战略的投入期。当前的外包环境跟竞争的格局呢都在发生快速的变化。那为了满足消费者不断演变的這個需求，我们正在与这个平台的商家紧密的协同，持续探索并推出能够适应新环境的业务模式。任何的新模式呢从开始到全面铺开，都需要平台在初期进行坚决的资源投入。

This is Zhao Jiazhen.

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 rollout, requires the platform to commit substantial resources in its early stages. 不论是新业务模式的探索，还是我们对供应链的这种战略性的投入，那都是基础的、长期的工作。投资与回报之间呢存在的时间错配，也必然会对我们特定阶段的业绩表现产生直接的影响。

Whether it is exploring 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.

那我们此前呢也与也多次和大家沟通活动。那在短期的财务表现与平台生态长期的价值之间呢，我们会坚决的选择后者。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。 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 investments, coupled with a complex and volatile macro environment, it could be normal to see fluctuations in our profit margins from quarter to quarter. 那在这个过去的几个月里呢，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。那我们建议大家呢不要过度的关注单一个季度的利润率指标，而是更多的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在价值的增长。

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.

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, 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.

Hello? 感谢 Hi.

Hi Joyce, please go ahead.

Oh, yes, yeah. Sorry.

那个感谢管理层给我这个提问的机会。我的第一个问题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吧，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的把握这个市场机会？ I will translate myself.

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.

Could 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? My second question is online retail sales showed very strong growth momentum in this first two months of the year.

Could management share the company's view on the consumer market, 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.

你好，我是赵佳臻。我来回答你的问题啊。那大概在一年多前呢，我们就进一步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這個惠商的计划。我们拿出了真金白银来反哺商家和产业，为供应链的更新升级呢创造充分的空间。

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 10 billion fee reduction and the 100 billion support programs, committing tangible resources to help the merchants and industries, creating more room for innovation. 我们的我们管理层呢一直都认为啊，那随着平台成长为拥有社会影响力的公众平台，那我们应该呢从更大的公众利益和行业长期健康生态的角度，来考虑企业发展的这个问题。那公司去年底在股东大会上明确的聚焦主业、重仓供应链升级的这个整体战略，就是在这个方向上的延伸和加码。

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.

那电商行业呢经过多年的发展，生态不断的成熟，那商家对平台呢也提出了多样化的要求。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比如研发、生产、销售等方方面面。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帮扶方案，打造成更有竞争力的供应链。 After years of development, the e-commerce industry's ecosystem is becoming more mature, and merchants' demand on the platform have 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. 那这样的投入呢涉及产业链的千千万万的商家，那不可能在一蹴而就。所以呢我们已经做好了长期、耐心的投入的准备。我们也很高兴的看到，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。

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 a path of product differentiation and transformation.

那这种长期的结构性的投入，不会立刻的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。那我们会扎扎实实的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，优化消费者的体验，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。 These long-term structural investments will not be immediately reflected in the financial performance in a short run, but they are crucial part of the long-term sustainable growth of the platform and the 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. 关于你的第二个问题啊，那我们非常高兴呢看到这个消费大盘不断的向好，但与此同时呢我们也清晰的看到，在当前激烈的竞争态势下呢，我们依然面临挑战。电商平台未来的表现，将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。

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. 那因此呢，我们在这个时候坚定的选择重仓供应链。针对不同的类目，我们的招商团队会与商家深度的协同，基于行业洞察，为他们提供定制的行业方案，帮助平台商家呢新质转型升级，推动供应链的高质量发展。

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 tailored industry solutions to help merchants achieve new quality transformation and driving the high-quality development of the supply chain.

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。我们会坚定的长期做下去。谢谢。 We firmly believe that these investments are essential for the e-commerce high-quality development in the next stage, and we are committed to patiently furthering these efforts in the long run.

Thank you. 非常清楚，感谢管理层。

Thank you, Joyce. Thank you, Jiazhen.

Thank you for joining us today. We look forward to speaking with you again next quarter.

Thank you and have a great day.