Thank you, operator. 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 start, I'd like to refer you to our safe harbor statement in the corporate news release, which applies to this call, as we'll make certain forward-looking statements.

Also, this call 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 on the call are Mr. Chen Lei, our Co-Chairman and Co-Chief Executive Officer; Mr.

Jiazhen Zhao, our Co-Chairman and Co-Chief Executive Officer; as well as Mr. Jun Liu, our Financial Director.

Lei and Jiazhen will make some general remarks on our performance for the past quarter and our strategic focus, and Jun will then walk us through our financial results for the first quarter ended March 31st, 2026. During the Q&A session, Lei and Jiazhen will answer questions in Chinese, and we'll help translate.

Please note the English translation is for reference only, and in case of any discrepancy, statements in the original language should prevail. Now, it's my pleasure to introduce our Co-Chairman and Co-Chief Executive Officer, Jiazhen Zhao.

Jiazhen, please go ahead. 大家好，我是赵佳臻。感谢各位参加我们2026年第一季度业绩的公开发布。

Hello, everyone. This is Jiazhen Zhao.

Thank you all for joining the first quarter 2026 earnings call. 今年是拼多多第二个十年的开局之年，也是我接任董事长后，围绕新十年高质量发展，启动公司组织与文化整体重塑的关键一年。我们要求从上到下必须以安全合规、社会责任为前提，以高质量发展为核心，久久为功，推动业务、团队、内部流程和组织管理的深刻变革，积极承担起平台型企业的责任和担当，为用户、产业和社会创造更多的正向价值。

This year marks the beginning of PDD's second decade. Following my appointment as Chairman, this is also a critical year for the complete reinvention of our corporate organization and culture, which is centered on the high-quality development of a new decade.

We are calling on everyone across all levels of the company to pull together in a sustained effort to drive a deep transformation in our business lines, teams, internal processes, and organizational management. The whole team is required to treat safety, compliance, and social responsibility as the absolute prerequisite for everything we do and maintain a clear focus on high-quality development.

We are committed to stepping up to our responsibilities as a platform enterprise to create positive value for our users, the industry, and society as a whole. 在今年的一季度，我们去年提出的三年再造拼多多重大战略，开始进入了深化发展的新阶段。新成立的品牌自营业务正在稳步推进，我们将通过新的模式、新的投入，继续重仓供应链。同时，我们长期投入的千亿扶持惠商战略正在持续地反哺商家和产业，加速推动快递免费送货入村，完善平台的治理与合规建设，积极履行更大的社会责任。

In Q1, the company entered a new phase of the three-year strategy to build another Pinduoduo, which was launched last year. Our new first-party brand business is making steady progress, and we are doubling down on our supply chains through innovative models and fresh investments.

At the same time, our long-term 100 billion support initiatives continue to generate value for merchants and the broader industry. The team is accelerating the rollout of free shipping to rural villages, enhancing platform governance and compliance, and proactively taking on broader social responsibilities.

在过去的这个季度，我们的业绩表现保持稳健。本季度集团总收入1062亿元，同比增长11%。正如我们多次强调的，与短期业绩相比，我们更愿意专注于反哺生态、重仓供应链带来的长期价值。 We delivered solid results in the past quarter.

Group revenue in the quarter was RMB 106.2 billion, a year-over-year increase of 11%. As communicated in the past, our priority is long-term value creation through sustained investment in the ecosystem and the supply chain, rather than short-term results.

今年3月，我们在上海成立了专项公司，正式开启品牌自营业务。首期以现金注资150亿元，未来三年计划投入1000亿真金白银。目前，我们的团队正在稳步地推进品牌自营业务，深入产业一线，加快整合供应链资源，联合全球知名IP进行深度共创，孵化面向不同市场、不同品类的品牌，全方位地赋能供应链迈向品牌化，推动供应链体系实现价值跃迁。 In March, we incorporated a dedicated company in Shanghai, marking the official launch of our first-party brand business, with an initial cash injection of 15 billion RMB and a plan to invest 100 billion RMB over the next three years.

Currently, our team is steadily advancing this business by going deep into industry hubs to accelerate the consolidation of supply chain resources. We are also collaborating closely with global IPs for deep co-creation to incubate new brands tailored to various markets and product categories.

This holistic approach will empower our supply chains transition towards brand development, catalyzing a breakthrough across the entire supply chain. 在第一季度，我们的千亿扶持惠商政策仍然保持高度投入，并对多多好特产、新质供给、电商西进等专项行动进行迭代升级。在农业领域，我们推出了2026多多好特产项目，在去年扶持商品和商家的基础上，深耕农产品的种植培育、冷链物流、精深加工等上下游环节，助力农产品供应链提质增效，推动农产区提升价值链。目前，首批项目已在南宁沃柑、海南凤梨、铜仁抹茶、宁夏枸杞、连云港水产等农特产区展开。

Throughout the first quarter, our 100 billion support program continued to see high levels of investment, rolling out upgraded iterations of initiatives such as Duoduo Premium Produce, new quality supply, and logistics support to remote regions. In agriculture, we launched the 2026 Duoduo Premium Produce program.

Building on last year's support for products and merchants, we are now deepening our support across the entire value chain, including planting and cultivation, cold chain logistics, and deep processing of agricultural products. This helps improve the quality and efficiency of agricultural supply chains and enables production regions to move up the value chain.

The first phase of these projects has been launched in specialty regions such as Nanning oranges, Hainan pineapples, Tongren matcha, Ningxia goji berries, and Lianyungang seafood. 在产业带，新一轮的新质供给专项行动继续向实向深推进，先后走进了沧州零食、郑州护肤、义乌首饰、泾县宣纸、中山照明、天津巧克力等产业带。我们看到很多商家和工厂正在走出“别人卖什么，我们卖什么”的同质化竞争，转向以用户为中心的自主研发模式，不断挖掘平台消费者的细分化、差异化需求，完成了品牌化的转型。原来的螺丝刀工厂也快速升级为自动化、智能化的工厂，实现了标准化的效率和质量，为当下的产业升级创造了新的范式。

Within the industrial belts, the latest round of our new quality supply initiative continued to deliver tangible results. The initiative has been introduced to manufacturing hubs such as Cangzhou snacks, Zhengzhou skincare, Yiwu jewelry, Jingxian porcelain enamel, Zhongshan lighting, and Tianjin chocolate.

Merchants and factories are starting to move away from the homogeneous competition of selling whatever others are selling and shifting towards a consumer-centric, R&D-driven model. They are uncovering highly specific and differentiated consumer demands on platform and successfully building their own brands.

Former screwdriver factories are rapidly growing into automated, smart factories. The efficiency and quality achieved through this transformation offers a new roadmap to industry upgrades.

此外，我们的电商西进政策也为广大商家带来了新增量。以中山照明产业为例，一款大型的吸顶灯从中山运输到甘肃，原来的运费达到40、50元。在平台兜底二次物流中转费用后，运费已降至10元左右。很多商家在西部地区的订单量呈现了年均30%以上的高速增长。

In addition, our logistics support to remote regions has also unlocked new growth opportunities to a wide range of merchants. Take the lighting industry in Zhongshan as an example.

Shipping a large ceiling light from Zhongshan to Gansu used to cost 40 to 50 RMB. By covering the transshipment fees for the merchants, the platform is able to cut the shipping cost to around 10 RMB.

Many merchants are seeing order volumes to western provinces growing at an annual rate of over 30%.

今年以来，我们在电商西进的基础上全力推进快递免费送货入村服务，目前也已初见成效。以河南部分县城为例，我们通过建设县级中转仓、村级代收点等末端寄递网络，截至3月份，送货进村在当地县城覆盖的行政村已经超过了七成，中转仓当前日均单量已经接近3万单。不仅让更多的乡村成为了包邮区，也为当地创造了更多的工作岗位，为县域与乡村经济注入了更多活力。

Since the beginning of this year, building on our logistics support to remote regions, we are rolling out the free-shipping-to-villages initiative at full speed and have achieved some initial results. Taking some counties in Henan as an example, by setting up last-mile delivery network such as county-level transfer warehouses and village pick-up points, we have extended the direct-to-village coverage to over 70% of local villages by March.

The daily order volume at these transfer warehouses has approached 10,000 orders. This not only brings more rural areas into free-shipping zones, but also creates more local job opportunities, injecting greater vitality into county and rural economies.

在平台治理上，我们先后推出了多轮治理举措，不断架设平台的治理水平，完善平台的合规能力，持续提升用户和商家的服务体验。在一季度，平台密集推出了20余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、食品数据库建设、直播场景合规巡查、完善食品安全信息举报通道、加强技术与人工巡查等，并将违规店铺的处理时效提升至小时级，全方位守护消费者的食品安全。

Regarding platform governance, multiple rounds of initiatives have been rolled out to continuously strengthen platform oversight, enhance our compliance capabilities, and improving the overall experience for our users and merchants. In the first quarter, the platform introduced over 20 food safety initiatives.

These include compliance review of business qualifications, food advertising content moderation, food live streaming monitoring, and building a dedicated food database. We have also enhanced compliance inspection of live streaming, upgraded food safety reporting channels, and strengthened automated and manual monitoring.

Further, the turnaround time for handling store violations has been shortened to within hours, safeguarding food safety for consumers. 开局之难在所难免，但困难恰恰是团队自我革命的驱动力。新的发展阶段也是塑造新的团队、新的机制和文化的气机。我们这届团队将迎难而上，踏踏实实、埋头苦干，用扎实的行动与可检验的成果，回应外界的关切与期许，不负各方的信任与支持。

Initial challenges are inevitable, but these difficulties will be the very fuel that powers our self-transformation. This new phase of growth also provides a good opportunity to build new teams, new systems, and culture.

Our current leadership team will tackle these challenges head-on, putting our heads down and working diligently. We will answer the public's concerns and expectations with concrete actions and measurable results, and live up to the trust and support that are placed in us by all stakeholders.

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.

Thank you, Jiazhen, and hello, everyone. This is Chen Lei.

Thank you all for joining our earnings call today. At last year's Annual General Meeting, we officially put forward the three-year strategy of building another Pinduoduo, focusing the company's strategic priority on the investment in the supply chain.

In the first quarter of this year, dedicated company was established to launch the first-party brand business, making the first full quarter under the three-year strategy. In the first quarter, steady progress was made in our first-party brand business.

Our teams went deep into the industrial belts across different product categories to accelerate the integration of high-quality supply chain resources and to lay foundation of the first-party business model. Deep collaborations are taking place with merchants and manufacturers across different categories to design and develop first-party brand products tailored to different global markets.

These initiatives aim at raising supply chain standards and driving the transformation and upgrade the supply chain. This quarter, our global business continued to grow at a steady pace, opening broad market opportunities.

At the same time, the continuous investments under the 100 billion support program have yielded valuable insights and first-hand experiences, which will guide the future investment in the supply chain. Since the beginning of this year, we have stepped up our investment in our platform and the wider ecosystem through multiple initiatives under the 100 billion support program to enhance the overall experience for our merchants and customers, making agricultural supply chain more efficient and resilient, helping merchants upgrade their business model, expanding free shipping coverage to more remote areas and rural regions.

The company is consistently delivering value to both supply and demand side of our platform. In the industrial belts, many merchants are leveraging our platform support to build their own brand.

Many merchants has been optimizing their product portfolio to be more focused and curated, and transitioning from standard batch manufacturing to demand-driven customization. This transition is enabling them to quickly grow into emergent brands in the respective categories.

At the same time, many traditional OEM factories are also moving beyond basic productions, investing in product development, technology, branding, and distribution channels, and evolving from a volume-driven model to quality-driven, bringing more resilience and value to the supply chain, acting as a new catalyst for industry transformation. The results from our 100 billion support program demonstrate that brand development is the next major opportunity for supply chain upgrades, which gives us conviction in the first-party brand model.

Branded products only getting started on our global platform, with consumer demand still underserved in different markets. This creates significant potential in launching branded products in various product categories.

Through the first-party brand model, our goal is to systematically incubate a portfolio of globally recognized brands, which in turn will drive transformation of the supply chain. This year has seen continued investment in agricultural research.

Just recently, we launched the finals of the fifth Smart Agriculture Competition. The four finalist teams have designed and built their own plant factories.

Relying on these facilities, the participants will explore strawberry cultivation solutions that maximize yield and quality, minimizing cost, energy use. This year marks the sixth iteration of the Smart Agriculture Competition.

Over the years, it has evolved from an industry contest to a testing ground for turning agricultural technology innovations into real-world applications. It has also become an incubator for the next generation of agriculture research talents, making its own contribution to the modernization of agriculture.

2026 marks the new starting point for PDD's next decade. As Jiazhen just mentioned, we have reflected carefully on our shortcomings and have taken decisive steps to rectify our operations.

Restructuring our internal management and strengthening our team's compliance awareness, we are building a foundation that benefits the long-term health growth of the company and the industry. Bound in gratitude and a deep sense of duty, we move forward with the firm belief that staying true to our roots is the foundation, prerequisite, and a guiding principle for all our future undertakings.

It will serve as a compass for the next phase of our journey. We will increase investment in the new business, resolutely advance the first-party brand business, and step up investments in the supply chain.

Through these efforts, our objective is to build another Pinduoduo in the next three years and to drive the transformation of the supply chain as a whole. Now, let me hand it over to Jun Liu, who will walk you through our financial performance for the first quarter of 2026.

Thank you, Lei. Hi, everyone.

This is Jun. Let me walk you through our financial performance for the first quarter ended March 31st, 2026.

In terms of income statement, in the first quarter, our total revenues increased 11% year-over-year to RMB 106.2 billion. This was mainly driven by the increase in revenues from transaction services.

Revenues from online marketing services and others were RMB 49.9 billion this quarter, compared with RMB 48.7 billion in the same quarter of 2025. Revenues from transaction services were RMB 56.3 billion, up 20% from the same quarter last year.

Moving on to costs and expenses, our total costs of revenues increased 15% from RMB 40.9 billion in Q1 2025 to RMB 46.9 billion this quarter, mainly due to increase in fulfillment fees, bandwidth and server costs, and payment processing fees. On a GAAP basis, total operating expenses this quarter were RMB 39.8 billion, compared with RMB 38.6 billion in the same quarter of 2025.

On a non-GAAP basis, total operating expenses increased to RMB 38.3 billion this quarter from RMB 36.5 billion in Q1 2025. Our total non-GAAP operating expenses as percentage of total revenues this quarter was 36%, compared to 38% in the same quarter last year.

Looking into specific expense items, our non-GAAP sales and marketing expenses this quarter were RMB 33.4 billion, compared to RMB 32.8 billion in the same quarter last year. On a non-GAAP basis, our sales and marketing expenses as percentage of our revenues this quarter was 31%, versus 34% for the same quarter last year.

Our non-GAAP general and administrative expenses were RMB 872 million, versus RMB 735 million in the same quarter of 2025. Our research and development expenses were RMB 4 billion this quarter on a non-GAAP basis, up 32% year-over-year.

On a GAAP basis, operating profit for the quarter was RMB 19.6 billion, versus RMB 16.1 billion in the same quarter last year, up 22% year-over-year. Non-GAAP operating profit was RMB 21.1 billion, versus RMB 18.3 billion in the same quarter last year.

Non-GAAP operating profit margin was 20% this quarter, compared to 19% for the same quarter last year. Net income attributable to ordinary shareholders was RMB 12.5 billion for the quarter, compared to RMB 14.7 billion in the same quarter last year.

Basic earnings per ADS was RMB 8.94 and diluted earnings per ADS was RMB 8.48, versus basic earnings per ADS of RMB 10.59 and diluted earnings per ADS of RMB 9.94 in the same quarter of 2025. Non-GAAP net income attributable to ordinary shareholders was RMB 14.1 billion, versus RMB 16.9 billion in the same quarter last year.

Non-GAAP diluted earnings per ADS was RMB 9.51, versus RMB 11.41 in the same quarter of 2025. That completes the income statement.

Now, let me move on to cash flow. Our net cash generated from operating activities was RMB 16.4 billion, compared with RMB 15.5 billion in the same quarter last year.

As of March 31st, 2026, we had RMB 436.1 billion in cash, cash equivalents, and short-term investments. Thank you.

This concludes my prepared remarks.

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

Today's Q&A session, Lei, Jiazhen, and Jun 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 for convenience purpose. Operator, we're open for questions.

Thank you.

晚上好，谢谢接受我的提问。两个问题。第一个问题是，公司一直以来的定位是电商平台，但我们看到上个季度公司发布的这个品牌自营项目，想请公司介绍一下现在这个时点发起品牌自营的主要考虑是什么？然后我们是否应该把它理解为公司整体的一个战略的转型？第二个问题是，通过第三方数据，我们看到公司在全球化业务取得了不错的这个用户增长，接下来这块业务公司的发展重心会是在哪里？然后从用户增长的角度是否已经达到预期？然后公司计划如何留住并且服好这些消费者？我自已翻译一下。Thanks, management, for taking my questions. First is that the company has been positioned as a e-commerce platform, but we saw the company launched the new first-party brand initiative last quarter.

Could management elaborate on the key considerations behind doing this at this current moment? Then, should we interpret this as a major pivot in the company overall strategy?

Number two, second question is, from the third-party data that we see, PDD's global business has achieved good user growth. What will be the primary focus for the business moving forward?

Has user growth met expectation? How does the company plan to retain and serve this consumer?

Thank you. 你好，我是赵佳臻。关于你的第一个问题呢，今年以来，我们正在围绕着安全合规、社会责任，正在推动内部的组织管理的深刻的重构，也在积极的承担平台企业的社会担当，努力的为用户、产业和社会创造更多的价值。那一季度设立的这个专项公司和品牌自营模式的落地，就是我们在这个方向上的一个延伸。

Hi, this is Jiazhen Zhao. Regarding your first question, since the beginning of this year, we have been driving a deep restructuring of our organization and internal management, and these efforts are centered on safety, compliance, and social responsibility.

We are striving to create greater value for our users, the industry, and the society. The formation of the dedicated company in the first quarter and the launch of the first-party brand model represents a continuation in this direction.

那在多年深耕产业带的过程中呢，我们越来越清晰的认识到，当前的供应链正在面临的一些挑战。有许多优秀的制造企业受限于人才、信息、规模等这些因素的制约，他们还没有完成品牌化的转型，也在面临着同质化的竞争。 Through years of deep engagement with the industrial belts, it has become clearer to us that supply chain is facing certain challenges at the moment.

Many good manufacturers, constrained by factors such as talent, information, and scale, have not yet completed their brand transformation and are caught in homogeneous competition. 那作为平台呢，我们有责任，也有能力加深供应链的投入，为行业面临的挑战提出方案。那这次设立专项公司，就是希望整合平台资源，更加积极、深度的参与到产品研发和标准制定，推进品牌自营的新模式。

As a platform, we have both the responsibility and the capability to deepen our investment in the supply chain and bring our own solutions to the challenges that is faced by the industry. The formation of the dedicated company aims to consolidate platform resources to advance the new first-party brand business model by taking on a deeper and more active role in product development and standard setting.

那通过品牌自营，平台承担起更多的责任和风险，让我们的产业带伙伴能够专注于高品质的生产和制造上。那我们认为这是推动平台和整个电商生态系统迈向下个阶段高质量发展的必经之路。那利用平台的规模，我们希望与供应链制造商共担风险、共享回报，为生态系统中的参与者呢提供确定性。 Through the first-party brand model, the platform takes on greater responsibility and also risks, allowing our industrial belt partners to focus on high-quality production.

We believe this is necessary in order to drive the platform and the entire e-commerce ecosystem towards next stage of high-quality growth. Leveraging the platform scale, we will take on more risks while sharing rewards with the supply chain manufacturers, providing certainty for the participants across the whole ecosystem.

那我们认为这种确定性呢，能够大幅的提升整个链路的运转效率，并且让工厂有底气去投入产品研发和技术创新，形成正向的循环。那在这个复杂多变的市场环境下，那我们觉得平台必须承担更多，也做得更深。那我们也将继续保持高度的聚焦，继续重仓供应链，推动供应链下阶段的高质量发展。 We believe this certainty will significantly enhance the overall efficiency of the supply chain and empower factories to reinvest into product development and R&D, and driving a positive cycle.

In a complex and fast-changing market environment, the platform must take on greater responsibility and deepen our operations. We will remain highly focused, continue to invest heavily in the supply chain, and drive the next phase of high-quality development for the supply chain.

Alicia你好，我是陈磊，那我来回答一下你的第二个问题。那么经过近三年的发展呢，我们的全球化业务呢，在全世界各地获得了不少消费者的支持。那么随着业务的增长呢，我们的管理层也在不断地思考，在这样竞争激烈的全球市场，怎样才能够为消费者呢创造更加可持续且有差异化的长期价值。我们认为呢，关键还是要回归到电商的本质，回归到供应链能力的建设上。

Hi, this is Chen Lei. Let me take your second question.

After nearly three years of growth, our global business have received support from many consumers worldwide. As the business grows, the management team has also been reflecting on how to create more sustainable and differentiated value for consumers in a highly competitive global market.

We believe the key is to return to the roots of e-commerce, which is supply chain capabilities. 那么围绕这一关键呢，我们接下来会从两方面发力。那首先呢，我们将继续推进供应链资源的整合、优化，打通各个环节上的瓶颈。那这不仅能够丰富平台的商品品类，更加能够实质性的提升消费者的购物体验。在这个过程中呢，我们将积极的吸纳优质的商家和生态伙伴的加入，平台呢融入到各个市场的商业生态中去。

Centered

on this core priority, we will direct our efforts on two fronts. First, we will advance the integration and optimization of our supply chain, eliminating bottlenecks from end to end.

This will not only expand the platform's product offerings, but also meaningfully enhance the consumer shopping experience. Throughout this process, we will actively onboard high-quality merchants and ecosystem partners, integrating the platform into the business ecosystem of various markets.

那其次呢，我们将深化发展品牌自营的模式。特别是在全球市场，我们尤其是要通过品牌化的建设呢，增强消费者对于平台商品优质优价的这种心智。与此同时呢，品牌化的发展也是进一步提升商品品质标准的重要途径，让我们能够在日益复杂的监管环境中呢，进一步提升平台的合规能力。 Second, we will deepen the development of the first-party brand model.

In the global market, brands are particularly crucial in strengthening consumers' mindshare of the value proposition of great quality and great value. At the same time, brand development is also an important pathway to raising product quality standards, enabling us to strengthen the platform's compliance capabilities in an increasingly complex regulatory environment.

那么电商行业的竞争呢其实是非常激烈的，我们看消费者呢在不同的平台之间转换成本很低。大家看到的平台间通过营销的手段争取消费者，可是更长、更长期、更可持续的竞争优势呢，还是来自于这些看不见的底层的供应链能力。 The e-commerce industry is highly competitive, with low switching costs for consumers.

While people often see platforms winning over consumers through marketing, the true driver of long-term and sustainable competitive advantage lies in the supply chain capabilities that are often unseen. 那么供应链的投入呢也是一项长期的系统的工程。无论我们短期面临怎样的波动或者挑战呢，都不会忘初心，那么持续的推动团队、业务流程、组织管理的深刻的持续的变革。希望的是以切实供应链投入呢，推动全球化业务下一个阶段的增长。谢谢。

Supply chain investment is a long-term systematic undertaking. Regardless of the challenges we may face, we will stay true to our roots, continue to drive deep transformations across our teams, business process, and organizational management, and continue to grow our global business with tangible supply chain improvements.

Thank you.

Thank you.

All right, thank you, Alicia. Operator, let's move on to the next analyst on the line.

Hey, 谢谢 Jiazhen,

Lei, Jun, 和 Kerry. 那我有两个提问。第一就我们看到公司宣布了这个三年1000亿的这个品牌自营投资计划。那我的问题是，公司计划这些投入主要会在哪些方向？那预计什么时候我们会开始能看到反映在这个公司的财务报表中？那市场应该，我们应该怎么去思考这个战略可能带来的一个增量的贡献？第二就想问，我们看到这个整体的消费大盘，这个社零数在一季度的增长也不错，线上这个渗透率其实还在提升。那在这个背景下，我们广告收入这个季度增速有所放缓。那想请管理层介绍一下，我们接下来平台GMV和广告收入的这个增量那可能是有哪些驱动？让我翻译一下。Thank you, management, for taking my question.

Two questions. One is we note the announcement of the three-year 100 billion investment plan for the first-party brand initiative.

My question is in which areas do the company plan to allocate these investments? When can we expect this to begin to reflect in the company's financials?

How should we evaluate the incremental growth potential driven by this strategy? My second question is we've seen from the National Bureau of Statistics consumption growth in the first quarter was quite solid, and online penetration rate for physical goods is still rising.

In that backdrop, we see the online marketing service growth rate slowed in the first quarter for PDD. Could you outline just where the future growth for GMV and online marketing services from here?

Thank you. 你好，我是赵佳臻。针对你的第一个问题呢，首先啊，这个品牌建设涉及到多方面的能力，从产品设计、标准制定、协同制造，再到这个品控、仓储履约、法律合规、售后等等整条的链路，那我们觉得这个每个环节都是要要求长期耐心的投入。那不少产业带中的这个中小制造企业，他们在量产交付和成本控制方面确实做得很极致，但是呢因为缺乏这个品牌化的能力，到现在呢还没有完成价值链上的跃迁。

Hi, this is Jiazhen Zhao. To your first question, first, brand building involves a range of capabilities, from product design, standard setting, and manufacturing, to quality control, warehousing and fulfillment, legal and compliance, customer service, and so on.

Each requires long-term and patient investment. Many SME manufacturers in the industrial belts are very good at mass production and cost control.

However, due to a lack of branding capabilities, they have not yet moved up the value chain. 那通过设立专项公司，我们正在深度的整合平台的基数、规模与组织能力，通过强化底层能力的建设，来补齐产业链品牌化的短板。在品牌自营模式下呢，平台将销量的确定性直接带给了产业链，让制造端有底气去投入产品研发和工艺创新，能够大幅的降低试错成本，还有品牌化过程中的不确定性。

Through the creation of the dedicated company, we are leveraging the platform's strength in technology, scale, and organization to build foundational capabilities that are required to help our supply chain partners in developing brands. Under our first-party brand model, we provide a certainty of sales volume to the supply chain and empowering the manufacturers to confidently invest in R&D and process innovation, and significantly cutting down the costs and risks that are inherent in the innovation and brand building.

那我们相信啊，这件事情由平台来做是正确的战略方向。因为平台在技术、规模、市场趋势等方面的优势，让我们具备了承接并且消化这些不确定性的能力。通过将制造端的风险内化为平台的责任，我们在用确定性为供应链赋能，为行业生态创造一个多方共赢的局面。那就是制造端能够摆脱同质化的竞争，专注品质升级；消费者呢用合理的价格能够享受到品质的商品；平台呢也能进一步的深化供应链的根基，最终实现平台的再造。 We believe it is the right strategic direction for the platform to step in and to play this role.

Our advantages in technology, scale, and market insights allows us to take on and digest these uncertainties. By internalizing some of the risks faced by the manufacturers, we empower the supply chain with certainty, creating a win-win situation for the industry ecosystem.

The manufacturers are enabled to break free from the homogeneous competition and focus on quality of upgrades. Consumers can enjoy quality products at reasonable prices, and the platform further deepens its supply chain capabilities, enabling the reinvention of the platform.

回顾我们创立以来的发展轨迹，从最早的农产品上行，到后来的多多买菜、全球化业务，还有千亿扶持计划，那平台呢始终在看到问题和解决问题的过程中，我们在不断地加深在供应链的参与度。如果我们想要从根本上能够解决平台商家同质化竞争的挑战，就必须承担起更多的责任，推动更深的供应链整合。那我们认为这是平台生态演进的必经之路。 Looking back at our history, from the early initiative of improving agricultural supply chain, to later efforts such as Duoduo Grocery, the global business, and the 100 billion support program, the platform has continuously deepened its operations in the supply chain through the process of identifying and solving problems.

If we are to fundamentally address the challenge of homogeneous competition that is faced by platform merchants, we must take on greater responsibility and enable deeper supply chain integration. We believe this is an inevitable path in the evolution of the platform ecosystem.

今年是平台新十年高质量发展的开局之年，那我们将以此为契机，深化组织和内部的管理变革，以重新出发的心态，持续的聚焦供应链投入。品牌自营是我们几个月前宣布重投供应链升级战略后落地的首个战略举措。随着多个供应链项目的推进，我们相信，未来三年我们将有机会再造一个拼多多。 This year kicks off a new decade of our high-quality development.

We will start afresh, taking this opportunity to reshape our organization and internal management, and focus on building supply chain capabilities. The first-party brand initiative is the first strategic move that we implemented after announcing the strategy of heavy investment in supply chain a few months ago.

As we roll out more supply chain initiatives, we believe we'll have the opportunity to build another Pinduoduo over the next three years. 关于你的第二个问题，那线上的零售市场呢目前依然充满了潜力，我们也觉得我们能做的事情还有很多。但是与此同时呢，行业已经全面进入了高质量发展的攻坚期。我们觉得平台只有主动的作为，深度的赋能供应链，那才有可能去推动行业的长期的健康增长。

To your second question, the online retail market continues to hold great potential, and there's much more that we can do. However, at the same time, the industry has entered a critical phase of high-quality development, and the only way to realize sustainable and healthy industry growth is to take the necessary initiatives to deeply empower the supply chain.

基于这个判断呢，我们去年4月推出了千亿扶持计划之后，紧接着启动了一系列的供应链的扶持专项。那我们的团队也深入到了全国各大农产区产业带，通过解决供应链的实际问题，来推动行业和平台的进一步的增长。

Based on this understanding, following the launch of the 100 billion support program in April last year, we rolled out a series of supply chain support initiatives. Our team has gone deep into the agriculture regions and industrial belts.

By solving practical supply chain issues, we are unlocking further growth for both the industry and the platform. 比如说我们的团队正在把快递进村的村级的快递驿站，升级为多功能融合的数字乡村微综合体。那这个新业态呢既是村民收寄包裹的自提点，也是当地特色农产品上行的最初一公里的枢纽。那它帮助农户一站式的解决打包、集地的需求，也让更多优质的农产品走向市场。那这样呢我们通过直接就业和农产品外销，这些微综合体为当地的居民带来了增收增利。

For instance, our team is in the process of upgrading the village pick-up points to a multifunctional digital rural micro-hubs. This new model operates as the both parcel pick-up point and the first-mile logistics node for the distribution of local specialty agricultural products.

By giving farmers a one-stop solution for packaging and shipping, we are actually helping quality agricultural goods reach the broader markets. Through the creation of direct employment and sale of agricultural products, these micro-hubs are increasing the income of local communities.

那再比如说，平台的电商西进的专项团队，通过搭建中转仓，并且由平台承担物流中转费的方式，将偏远地区消费者纳入到包邮区。通过实实在在的供应链的改造，将部分偏远地区的物流成本降低了接近八成，拉平了不同地区的运营成本。不少商家单单是在物流履约上就节约了300万元。平台通过这些真金白银的投入，拉近了供需两端的距离，也创造了更多有效需求。

Another example is the logistics support for remote regions. Our team is bringing more consumers from remote areas into the free shipping zones by creating transit warehouses and by covering the transshipment costs.

Through tangible supply chain improvements like these, the logistics costs for shipping to some remote regions have been reduced by nearly 80%, and leveling the operational cost between the different regions. Many merchants are saving millions of RMB in shipping costs alone.

With these substantial investments, the platform is bridging the gap between supply and demand, and creating more effective demand. 像这样的例子还有很多。那接下来，我们会继续通过这样一个一个扎实落地的供应链项目，为用户、产业和社会创造更多的正向价值。谢谢管理层。

These are just a few examples. Looking ahead, we will continue to work on concrete supply chain projects, and through these initiatives, deliver more value to our users, the industries, and the society.

谢谢，感谢。

Thank you, Ronald. Operator, let's move on to the next analyst on the line.

Lei, Jiazhen, Jun, 还有 Kerry 晚上好，感谢接受我的提问。我有两个问题。第一是我们看到电商行业现在不断涌现一些新的业务模式，包括直播电商啊、即时零售这些，不知道公司怎么看这些新模式对整个行业的影响，公司在这些领域呢有没有一些布局的考虑？我的第二个问题呢是在一季度我们看到多多的营销费用的占比呢是有所波动的，整体利润率呢也有稍微有所下滑。从长期看，我们应该怎么去理解这个利润率的波动？还有怎么去预期公司的稳态利润率水平？Let me translate myself.

First, we have seen the continuous emergence of new e-commerce models in e-commerce industry, including live streaming commerce and quick commerce. How does the company assess the impact of these new models on the broader industry landscape?

Are there any plans of the companies to expand into these areas? Second is, in the first quarter, we saw a slight increase in sales and marketing expense ratio of the company alongside a fluctuation in overall profit margin.

How should we expect margin trends going forward? What will be a reasonable expectation as Duoduo steady-state profit margin level?

谢谢。 你好啊，我是赵佳臻。那电商行业呢相比传统的零售，消费者的切换的成本呢更低，那因此呢这个演变的速度呢会更快，竞争呢也会更加的激烈。我们管理层呢也在密切的关注新技术的最新发展动态。

Hi, this is Jiazhen Zhao. Compared to traditional retail, e-commerce has much lower switching costs, which leads to a faster industry evolution and more intense competition.

The management team is also closely monitoring the development of new technologies. 但无论前端的模式怎么创新，那回归到电商的本质，消费者的核心诉求呢始终是更丰富的选择、更有竞争力的价格和更好的服务。正如我们刚才所说的，那不同的电商平台或者业务模式之间的竞争，归根结底，我们认为都是底层供应链能力的竞争。

However, regardless of the innovations in front-end business models, the core needs of consumers remain unchanged, which are wider product selection, competitive prices, and better services. As we mentioned earlier, competition among the different e-commerce platforms or business models ultimately boils down to competition in the underlying supply chain capabilities.

那这也是为什么我们去年底明确了聚焦重投供应链升级的集团战略方向。那在这个战略指导下呢，我们正在稳步的推进各项供应链的投入，这里面就包含了品牌自营业务。那目前呢，专项团队已经深入到各大的产业带，加快整合优质的供应链资源，搭建品牌自营的业务体系。我们呢也正在与这个制造端深度的合作，设计和研发面向全球不同市场的自营品牌产品，全面的提升供应链的转型升级。 This is why we set a clear group strategy at the end of last year to focus on and invest heavily in supply chain.

Under this strategy, we're steadily advancing various supply chain initiatives, particularly the first-party brand business. Currently, dedicated teams are working in major industrial belts to accelerate the integration of high-quality supply chain resources and building a framework for the first-party brand business.

We're working closely with manufacturers to design and develop first-party brand products for the different global markets, while elevating the transformation and upgrading of the supply chain. 接下来的这段时间呢，是我们供应链投入的关键窗口期，我们将全力的推进品牌自营，保持供应链的基础能力建设的投入强度，通过不断地为供应链生态创造独特的价值，来应对行业未来可能的变化。

The coming period represents a critical window for our supply chain investments. We will advance the first-party brand initiative at full speed, step up the investments in the foundational supply chain capabilities, and we'll also navigate the evolving industry landscape by constantly creating our unique value to the supply chain ecosystem.

Hi, this is Jun. Let me take your second question.

As we have regularly communicated in the past, our objective is the long-term sustainable growth of the platform's intrinsic value. In this process, due to seasonality and our own investment circle, it is normal to see some fluctuation in our quarter-to-quarter financial results.

The long-term value of the platform is fundamentally tied to the value we create for consumers and the broader ecosystem. That's why we remain steadfast in our commitment to long-term supply chain investments.

Whether it's our first-party brand strategy, direct-to-village delivery, or new quality supply chain initiatives, these are all high-impact projects that unlock long-term value and new growth for the industry. We will continue to invest in them resolutely.

Instead of focusing on short-term financial performance, we prioritize the healthy development of the platform ecosystem and the accumulation of foundational supply chain capabilities. These more enduring sources of competitive advantage will determine the trajectory of the platform's intrinsic value.

Thanks.

Thank you. 谢谢。

Thank you, Jun. Thank you, Joyce.

Thank you all once again for joining us today. I think it's about time.

We look forward to speaking to you again next quarter. Thank you.