Ladies and gentlemen, thank you for standing by and welcome to PDD Holdings Inc. fourth quarter and fiscal year 2023 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 1 on your telephone. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your host today. Sir, please go ahead. 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 Globe Newswire services. Before we begin, we would like to refer you to our safe harbor statement in the earnings press release, which applies to this call as well. We will 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 Chairman and Co-Chief Executive Officer; Mr. Zhao Jiazhen, our Executive Director and Co-Chief Executive Officer; as well as Ms. Liu Jun, our VP of Finance. Lei and Jiazhen will make some general remarks on our performance for the past quarter and our strategic focus. Jun will then walk us through our financial results for the fourth quarter and the fiscal year ending December 31st, 2023. During the Q&A session, Lei and Jiazhen will answer questions in Chinese and will 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 Chairman and Co-Chief Executive Officer, Chen Lei. Lei, please go ahead. Hello everyone. Thank you for joining our earnings call for the fourth quarter and the fiscal year of 2023. 2023 was an important year for PDD Holdings. We began a journey dedicated to high-quality development. Aligned with our strategy, we rolled out a series of initiatives to empower businesses and enhance consumer value. This effort has resonated well with our users and merchants, earning their positive feedback and support. Driven by a rebounding consumer market, our total revenue in the fourth quarter was CNY 88.9 billion, which represents a 123% year-on-year increase. GAAP net income for this quarter was CNY 23.3 billion. Over the past year, our revenue was CNY 247.6 billion, which represents a 90% year-on-year increase. In 2023, amid a positive consumer sentiment, our platform saw a healthy resurgence in demand. In the fourth quarter, we focused on improving consumer well-being by making higher-quality products more accessible. This was achieved through a series of events such as the Double 11 and Double 12 shopping festival. Our goal has always been clear: to unlock unrealized consumer potential and empower individuals to achieve higher quality of life. As a result of these efforts, we have seen sustained growth in consumer engagement in our platform throughout the fourth quarter. In 2024, we will continue to ramp up our support for high-quality supply and enhance our ability to deliver good value and excellent service. We will refine our supply chain insights and technology capabilities to help manufacturers reduce costs, increase efficiency, and develop more products that resonate deeply with consumers. Our support for a new generation of farmers and merchants skilled in both agriculture and e-commerce is unwavering. This is part of our ongoing efforts to boost local employment and increase farmers' income. Through our 10 Billion Ecosystem Initiative, we grow alongside our high-quality merchants, brands, and small to medium-sized businesses to build a more sustainable ecosystem. R&D is at the core of our growth as a technology company, and last year, we continued to invest in technology innovation, with R&D expense reaching CNY 11 billion. This is the second consecutive year that our R&D expense has surpassed CNY 10 billion. In the fourth quarter, R&D expenses grew by 19%, reaching CNY 2.9 billion. This year, we continue to channel investments into new drivers of high-quality development. We are dedicated to advancing the role of cutting-edge technology in agriculture and in manufacturing. In the fourth quarter, we reinforced our agriculture strategy through supporting projects such as the Agricultural Cloud Initiative and the Science and Technology Backyard Competition. We hope to encourage the development of more resilient digital agriculture regions to further revitalize rural communities. Take the Science and Technology Backyard Competition as an example. It provides a platform for college students to showcase their agricultural innovation. Pinduoduo has been an active supporter for this event for the past year running, and we also pay close attention to the development of agricultural products driven by technology. For instance, Pinduoduo offers support for specialty agricultural products through initiatives such as Zero Commission and the 10 Billion Program for agriculture producers such as orange, tangerine, grapefruit, etc. We formed a strategic partnership with certain producers to broaden their market reach and provided continuous platform support. We also actively fulfilled our social responsibilities. In December last year, an earthquake struck Gansu Province. We promptly donated CNY 20 million. The donation will aid in purchase of relief supplies and post-disaster reconstruction. We held ourselves accountable for making positive contributions to our communities. As for our global operation, since launching in September 2022, we have expanded into 50 countries and regions. As a newcomer, we are excited to learn from our diverse global consumers and markets as we explore technology innovation. With our supply chain expertise, we are dedicated to helping each consumer live a more fulfilling life, and we remain committed to this mission. 2023 marks the eighth year since the founding of PDD Holdings. Since our inception, we have always stayed closely to our focus on e-commerce. We have always put consumers first and embraced innovation with an open mind. Throughout this journey, our team has experienced remarkable growth and development, and we have seen ambitious young leaders emerge ready to take on greater responsibilities. Our company strives on creativity and energy of the younger generation, giving us the confidence to create unique value for our growing consumer base. Now, I will hand it over to our Co-CEO, Zhao Jiazhen, to further talk about our high-quality development strategy. 谢谢陈磊。我是赵家珍。欢迎大家参加我们2023年第四季度及全年业绩的发布会。 Thank you, Lei. Hello everyone. This is Zhao Jiazhen. Thank you all for joining the fourth quarter and full year 2023 earnings call. 2023年是消费提振年。我们积极响应消费提振政策，围绕有关部门提出的恢复惠民创新等关键词，积极促进品质好物与消费升级的双向奔赴，激发有潜能的消费。我们全年实现不错的收入增长，这是平台推行有效的促消费举措以及整体消费回升的结果。 2023 is a year of recovery. Guided by the key principles of recovery, benefit all, and innovation, we proactively responded to the consumption recovery policies. By bringing together the supply of quality products and the demand of consumption upgrade, we played our part in releasing consumption potential. We achieved decent growth in 2023, which we believe is the combined result of our effective promotional activities and the overall recovery of consumption. Pinduoduo为最广大的消费者服务。在与用户的接触中，我们发现国内消费者近年消费升级的需求愈发强烈。但同时，消费者们也开始关注如何用更经济、更便捷的方式获得更高的生活品质。消费升级不是高消费，不是透支需求，而是帮助用户节省开支的同时，为他们提供更好的产品与服务。 Pinduoduo is built to serve the needs of a vast and diverse consumer base. In recent years, through interactions with our users, we are observing a growing demand of consumption upgrades. But at the same time, we also notice that our consumers are looking for ways to upgrade in a more rational manner. Consumption upgrade is not about high consumption or overspending. It is more about offering our users better products and services at more accessible prices to bring more savings. 鉴于此，我们在平台实测的过程中，注重丰富优质产品的供给，加大对国货潮品、进口好物、品质浓厚等改善型消费品的补贴力度。 Seeing this trend, we paid special attention to broadening the selection of quality products sold on our platform and focused our promotional efforts on premium consumer goods such as trendy national brands, imported goods, and high-quality produce. 例如，通过百亿补贴等方式，平台持续加快引进海外品牌，并大力扶持高质量国货发展。去年双十一期间，为用户多省钱的同时，我们还实现了助力商家多卖货。秒杀频道在活动期间，为超10万个中小商家提供增量引擎，农货、国货及全球好物等超40个细分类目实现了翻倍的增长。入驻百亿补贴的农货、国货商家同比增长了两倍以上。全球购的业务中排名前100名的品牌，有21个品牌实现了同比300%以上的增长，单日销售额过百万的单品达到了59个。 For example, through our 10 Billion Program, we are making it increasingly easy to enjoy imported products. We are also investing firmly to support national brands. During Singles' Day last year, we helped our merchants sell more and our users save more. Our flash sale channel acted as a growth engine for over 100,000 SME merchants, and by the end of the event, more than 40 product categories saw their sales doubled. These included agricultural products, national branded products, and quality imported goods. The number of merchants selling agricultural products and national branded goods that benefited from our 10 Billion Program more than doubled. In our Duoduo International channel dedicated to imported products, 21 out of the top 100 brands achieved a year-on-year growth of over 300%. 59 items recorded daily sales of over CNY 1 million during Singles' Day. 这组数据从另一个层面也说明，平台营收的增长是我们为消费者和商家创造更多价值的结果。2024年是消费促进年，我们将继续从服务消费者的需求出发，丰富商品种类和服务的形态，改善自价比，优化购物体验，加强用户活跃度，为认真做生意的优质商家提供更多被消费者看见和认可的机会，巩固平台生态的正向循环。 These numbers also show that the growth of our platform is the result of the value we create for our consumers and merchants. 2024 will be a year of consumption promotion. As always, guided by the principle of consumer first, we will continue to improve the variety of products and services offered on our platform, deepen our value-for-money mindshare, upgrade our shopping experience, and enhance user activity. As a result, we will be able to offer more visibility and sales opportunities for quality merchants, thereby strengthening the positive feedback loop on our platform. 2023年是我们全面拥抱高质量发展的转型之年。2024年将是拼多多深化高质量发展战略的重要的一年。我们将加大投入，以高质量消费、高质量供给、高质量生态三项工作为抓手，进一步优化多实惠加好服务的平台能力。 2023 proved to be a pivotal year for us as we embark on the journey towards high-quality development. 2024 will be another critical year to implement this strategy to every part of our operations. We will step up our investments in the three key areas of high-quality consumption, supply, and platform ecosystem to further optimize our capabilities in offering more savings and better services. 在高质量消费方面，我们将持续与消费者保持共情，实时关注需求变化，优化产品供给，结合节庆时令重点品类等开展丰富多彩的促销活动，降低消费升级的门槛与难度，满足消费者对于优价好物的极致追求。 In terms of high-quality consumption, we will continue to put ourselves in consumers' shoes and adjust our product offerings, following closely the changes in consumer demand. With tailored promotional events featuring holidays, seasons, and special product categories, we will make it easier for consumers to fulfill their demand for high-quality products at attractive prices. 除了多实惠，拼多多的好服务也将持续升级，扎实推进一系列惠民生、暖民心、顺民意的服务工作，加强消费者权益保护，进一步推动偏远地区和特殊群体的消费体验的提升。 In addition to more savings, we will also continue to upgrade our services. We will roll out a series of initiatives that benefit consumers, strengthen consumer protection, and further improve the shopping experience for remote areas and underprivileged groups. 在高质量供给方面，去年四季度以来，通过多场国货团建的主题带货直播、国货节演等大促活动，我们提供流量与补贴的支持，帮助制造业品牌扩大影响力，取得了不错的效果。国货从起步到崛起，甚至引领行业，背后需要品牌与平台的共同努力。今年我们将继续为新老国货拓宽新赛道，与中国品牌一起，共同为消费者提供更好的产品和高质量的消费体验。 In terms of high-quality supply, since Q4, we have been allocating platform resources such as traffic support and coupons to help manufacturing brands expand their influence. Through a series of promotional activities such as dedicated live streaming sessions and the National Goods Festival, our merchants made great progress on our platform. The rise of national brands to industry-leading positions requires the joint effort from both the brands and our platform. This year, in partnership with new and established national brands, we will continue to explore new market opportunities and bring to our consumers better products and a high-quality shopping experience. 农业是拼多多的基本盘。作为国内最大的农产品扇形平台，四季度我们积极支持科技小院大赛的举办，并对科技小院重点研发的科技农产品给予流量与补贴扶持，提升农业科技成果转化率，加快发展农业的新质生产力。 Agriculture is the foundation of Pinduoduo. As the largest agricultural platform in China, in Q4, we continue our support for the Science and Technology Backyard Competition. We also provided ongoing traffic support and other platform resources for agritech-enabled products backed by participating teams. By doing so, our goal is to promote the real-world application of research findings and to accelerate the improvement in farming productivity. 去年我们发起了农云行动，深入陕西、四川、山西、云南、湖北、福建、山东、江苏等农产带，为当地商家提供电商运营专场培训，以及一对一的定向运营指导，助力乡村产业振兴与就业增长。今年我们将加大对农云行动、农研赛事等农业的重点项目的投入，继续推动各地打造更具韧性的、竞争力的数字化农产带，助力乡村振兴以及农民的增收。 Last year, our Agricultural Cloud Initiative went into production regions in Shaanxi, Sichuan, Shanxi, Yunnan, Hubei, Fujian, Shandong, and Jiangsu, bringing e-commerce training and one-on-one consultation to local agriculture merchants. This year, we will increase our investments in agriculture through projects such as the Agricultural Cloud Initiative and the Smart Agriculture Competition, to continue to bring digitization solutions to local producers, to improve the resilience and competitiveness of the local supply chain, thereby supporting rural revitalization and increasing farmers' income. 去年我们推动了高质量生态建设，依旧是平台重点关注的一号工程。今年我们将继续通过百亿生态专项，结合常态化管理以及专项行动，支持优质供给与服务的发展，推进绿色健康现代化的平台生态建设。 Building a high-quality platform ecosystem will remain our top priority this year. Through the 10 Billion Ecosystem Initiative and platform governance policies, we will continue to foster an environment that encourages high-quality supply and services, advancing a green, healthy, and modern platform ecosystem. 接下来我把时间交给刘俊，由他为大家介绍一下我们的财务的表现。 Now let me hand over to Jun. She will provide you with an update on our financial performance. Thank you, Jiazhen. Hello, everyone. Let me walk you through our financial performance in the fourth quarter, and fiscal year ended December 31st, 2023. In terms of income statement in Q4, our total revenues increased 123% year-over-year to CNY 88.9 billion, and 90% year-over-year to CNY 247.6 billion for full year 2023. This was mainly driven by an increase in revenues from online marketing services and transaction services. Revenues from online marketing services and others were CNY 48.7 billion this quarter, up 57% compared to the same period of 2022. Our transaction services revenue this quarter was CNY 40.2 billion, up 357% versus the same period of 2022. Moving on to quarterly expenses, our total cost of revenues increased 293% from CNY 8.9 billion in Q4 2022 to CNY 35.1 billion this quarter. For the full year, our total cost of revenues increased 192% to RMB 91.7 billion, mainly due to increased fulfillment fees, payment processing fees, marketing costs, and call center expenses. On a GAAP basis, total operating expenses this quarter increased 44% to RMB 31.4 billion from RMB 21.8 billion in the same quarter of 2022. On a non-GAAP basis, our total operating expenses increased to RMB 29.3 billion this quarter, from RMB 19.3 billion in Q4 2022. During the past quarter, we continued to focus on key areas critical to the high-quality development of our platform, such as investing in our users' savings mindset, our brands, and our R&D capabilities. Our total non-GAAP operating expenses, as a percentage of total revenues, was 33% in Q4, compared to 48% same quarter 2022. For full year 2023, total non-GAAP operating expenses were RMB 90.3 billion, up from RMB 61 billion in 2022. Looking into specific expense items, our non-GAAP sales and marketing expenses this quarter were RMB 26.2 billion, up 53% versus the same quarter of 2022. During Q4, we stepped up our investment in a series of year-end promotion events to give back to consumers and increased in advertising to promote our brands. On a non-GAAP basis, our sales and marketing expenses, as a percentage of our revenue this quarter, were 30% versus 43% for the same quarter in 2022. For full year, non-GAAP sales and marketing expenses increased from RMB 52.2 billion to RMB 79.8 billion in 2023. Our non-GAAP G&A expenses were RMB 674.5 million in Q4, versus RMB 360.8 million in the same quarter of 2022. Our annual non-GAAP G&A expenses were RMB 1.8 billion in 2023, versus RMB 1 billion last year. Our research and development expenses were RMB 2.4 billion in the fourth quarter on a non-GAAP basis, and RMB 2.9 billion on a GAAP basis. For full year 2023, our annual GAAP R&D expenses surpassed RMB 10 billion for the second consecutive year. Technology is at the core of everything we do. We will continue to build on our R&D capabilities to promote tech adoption in agriculture and manufacturing sectors, to improve supply chain efficiency, and in turn, offer our consumers are growing selection of quality products at attractive prices. On a GAAP basis, operating profit for the quarter was RMB 22.4 billion, versus RMB 9.1 billion in the same quarter 2022. Non-GAAP operating profit was RMB 24.6 billion, versus RMB 11.6 billion in the same quarter 2022. Non-GAAP operating profit margin was 28% this quarter, compared with 29% for the same quarter 2022. For full year, non-GAAP operating profit increased from RMB 38.1 billion to RMB 65.8 billion in 2023. Net income attributable to ordinary shareholders was RMB 23.3 billion for the quarter, and RMB 60 billion for the full year. In the fourth quarter, basic earnings per ADS was RMB 17, and diluted earnings per ADS was RMB 15.83, versus basic earnings per ADS of RMB 7.42, and diluted earnings per ADS of RMB 6.52 in the same quarter of 2022. Non-GAAP net income attributable to ordinary shareholders was RMB 25.5 billion for the quarter, and RMB 67.9 billion for the full year. In the fourth quarter, non-GAAP diluted earnings per ADS was RMB 17.32, versus RMB 8.34 in the same quarter of 2022. As I mentioned, 2023 is the first year on our path towards high-quality development, and we are encouraged by the early results. Looking ahead, while we are excited about the new journey, there are challenges and uncertainties along the way, and we need to be prepared to invest decisively for the long-term value of our platforms. Our financial results may continue to fluctuate, and past performance may not serve as a benchmark for future quarters. That completes the income statement. Now, let me move on to cash flow. Our net cash flow generated from operating activities was RMB 36.9 billion in Q4, and RMB 94.2 billion for the full year of 2023, compared with RMB 26.6 billion in the same quarter of 2022, and RMB 48.5 billion in 2022. As of December 31st, 2023, the company had RMB 217.2 billion in cash and cash equivalents and short-term investments. Thank you. This concludes my prepared remarks. Thank you, Jun. Next, we will move on to the Q&A session. Today's Q&A session, Lei, Jiazhen, and Jun will take questions from analysts. We could take a maximum of two questions from each analyst. Lei and Jiazhen will answer in Chinese, and we will help translate for convenience purposes. Operator, we are open for questions. 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. Participants are requested to restrict to two questions at each time. Your first question comes from Joyce Ju with Bank of America. Good evening, Lei, Jiazhen, Jun, and Kairay. Thanks for taking my questions. I have two questions today. First, as management mentioned in the opening remark, 2023 was a very important year for PDD from the strategic perspective. Looking back at the fourth quarter and the full year 2023, could the management share how you would evaluate your executions of the past year's strategies, and how does the actual results are compared against the team's original expectations? For 2024, will there be any major changes in your strategic focus? My second question was actually about the fourth quarter promotions. We all know the fourth quarter is the peak season for the e-commerce platforms. How would management assess PDD's performance in the fourth quarter shopping festivals? Are there any interesting trends of consumers, merchants, or platforms that can be shared with us? Also, could you also help us a little bit in terms of understanding the relationship between the promotional season, seasonality, and your very strong fourth quarter results? Thanks a lot. 我来翻译一下我自己的问题。这个我的第一个问题其实是有关战略的。刚刚管理层也提到了，2023年对公司来说是很具有战略意义的一年。在这个财年结束的节点来回顾四季度和过去的一年，想请管理层来谈一下怎么样评价公司的战略执行，是不是有达到管理层的预期。那么如果展望2024或者是中长期的话，我们公司的战略重心会不会有变化？然后我的第二个问题是有关于四季度大促的。大家都知道四季度是一个电商的旺季，然后想请问一下管理层会怎么评价在今年四季度大促活动中多多的表现，有没有观察到一些新的趋势可以和我们大家分享？另外也麻烦管理层可能聊一下就是说这个四季度的这种季节性，还有这个促销活动和我们目前这个季度的业绩、财务业绩之间表现的一些关系。谢谢。 Joyce你好，我是陈磊。那由我来先来回答一下第一个关于战略的问题。 Chen Lei. Let me take your question on strategy. 我们刚才谈到了2023年是拼多多集团高质量发展的开局之年。那经过一年的投入和执行，我们在消费端、供给端和平台生态等方面都取得了一些不错的进展和反馈。那么这更加坚定了我们在高质量的发展的道路上做长期投入的信心。 As mentioned in our remarks, 2023 marks the beginning of our high-quality development strategy. After a year of dedicated execution, we have seen positive outcomes on the consumption side, supply side, and within our platform ecosystem. This further reaffirms our lasting commitment in high-quality development. 那么目前我们已经进入了多个国家和地区。那我们面对的是各个国家消费者不同的消费习惯、文化以及各个市场瞬息万变的环境。但是我们始终相信不变的是消费者对电商平台多实惠和好服务的诉求。那因此四季度我们还是在延续之前的节奏，继续围绕着高质量发展的几个方面进行坚定的投入。 As we expanded into multiple countries and regions, we encountered diverse consumer habits, cultures, and rapidly evolving market landscapes. We firmly believe that the consumer's demand for more savings and better services is universal. Therefore, in Q4, we continue our investment in alignment with our high-quality development strategy. 首先我说一下消费端。那么在消费端，我们始终把理解并且满足消费者的需求放在第一位。那么四季度是个电商的旺季。那么我们在各个市场因地制宜地推出了一系列的特色促销活动。那么通过新颖、直接、有趣的促销手段，让消费者能够更经济、更便捷地提高生活品质，降低平台消费者高质量消费的门槛。那么这些促销的活动获得了不错的反馈。 First, from the consumer side, our top priority has always been to understand and meet consumer needs. During the peak season in Q4, we introduced tailored promotional activities across different markets, featuring innovative, direct, and engaging campaigns. These initiatives allow consumers to improve their quality of life with ease and great savings, making it easier for our consumers to achieve high-quality consumption. The response to these promotions has been positive. 那我再说一下供给端。那么在供给端，我们持续地向优质供给和优质商家做平台资源的倾斜，将更多优质的产品提供给消费者。我们帮助商家提升产量、提高周转效率、降低经营成本、减少产品浪费，反过来进一步地降低了产品的价格，形成良性的循环。 On the supply side, we continue to allocate platform resources towards high-quality products and reputable merchants to offer consumers more quality products. In addition, we also help merchants drive volume, improve turnover efficiency, reduce operating costs, minimize product waste, and consequently lower product prices, forming a virtuous cycle. 健康的生态是一个平台长期可持续性发展的前提。那么这也是我们下决心重点加强的领域。我们持续地在平台治理方面做了前瞻性的投入，通过技术的手段主动识别风险，提高平台的响应速度，并且通过多个专项针对未成年人保护、版权保护、产品合规，对商品以及店铺进行了系统性的治理，取得了不错的效果。那么接下来我们会继续地主动承担平台责任，让消费者放心购物，同时为商家创造良好的营商环境。 A healthy ecosystem is fundamental for the sustainable growth of the platform, and we are determined to put more efforts in this area. We continue to make forward-looking investments in platform governance, employing technology to identify risk early and respond quickly. We carry out product screening and merchant review on issues such as safeguarding miners, IP protection, and product compliance, and achieve favorable outcomes. Moving ahead, we will continue to take on social responsibilities, fostering a favorable environment for both consumers and merchants. 那么经过过去一年的执行，我们清晰地看到在高质量发展战略给我们带来的积极变化。那么接下来我们的战略重心是不会改变的。我们会继续地把高质量发展的战略做深、做实，进一步地优化平台的能力，为消费者和社会创造我们独特的价值。谢谢。 After a year of execution, we're delighted to see the positive changes brought about by our high-quality development strategy. Going forward, we will stick to our strategic focus, deepen and strengthen our strategy, further refine platform capabilities, and deliver our unique value to consumers and society. Thank you. 你好，我是赵家珍。由我来回答一下有关于大促的问题。 Hi, this is Zhao Jiazhen. Let me take your question on shopping festivals. 在去年Double 11和Double 12期间，我们一如既往地在贯彻多实惠的价值主张，为消费者提供简单直接的优惠。比如说在Double 11期间，我们在百亿补贴的基础上首次上线了单件立减的玩法，在加大补贴的力度和品牌的覆盖范围，满足更广大消费者消费升级的诉求。 As always, during last year's Double 11 and Double 12, we provided consumers with straightforward price discounts to strengthen our more savings mindset. For example, during the Double 11 last year, for the first time, we introduced direct price reduction on top of our 10 Billion Program. So we also expanded the brand and products covered by our promotions. This is to meet the growing demands for upgrades. 我们的持续投入在消费者中也取得了很好的反响。Double 11期间，拼多多百亿补贴的用户突破了620 million，百亿补贴的订单量也同比翻倍。同时我们也很高兴地看到平台的价值得到了商家们的广泛认可。参与平台促销活动的品牌、商家及商品数量均创新高，实现了平台和商家的共同成长。 We received positive feedback from our continued efforts. During Double 11, over 620 million consumers benefited from the 10 Billion Program, with order volume more than doubled. At the same time, we are happy to see that the value of our platform has been increasingly recognized by our merchants. The number of merchants, brands, and products participating in our promotional activities reached a new height. Our merchants are growing together with our platform. 我们很高兴地看到平台在大促期间取得了良好的市场反馈。但是我们还是更关注平台长期能力的建设，满足消费者对于低价好物全年不间断的需求。 And while we are very pleased to see the results from our shopping festivals, our team actually chose to pay more attention to the ongoing improvement in our platform's capabilities and how we can better meet consumers' demand for quality products at attractive prices all year round. 在拼多多创立起的这个八年的时间里面，我们始终在聚焦主业。通过持之以恒的投入，在广大消费者中积累了来之不易的良好心志。那我们今天取得的表现，不仅仅是上个季度促销活动带来的短期效果，我们觉得更是过去长期投入产生的回报。 Since the founding of Pinduoduo eight years ago, we have always kept our focus on our core e-commerce business. By patiently giving back to the consumers we serve, we've gradually earned a positive user mindset. I think the result we have today is not only brought by the promotions in the past quarter, but also the return on the investment we made in the past. 现在从消费端来看，我们继续地观察到平台用户对于我们的信任也是在不断地增强。通过不断地巩固平台的多实惠加好服务的能力，我们在获得越来越多新用户支持的同时，也在不断地拓宽老用户通过平台购买的产品的品类。这让我们对高质量发展的战略的大方向充满了信心。 From the consumer side, we continue to see the growing trust from our users. In addition to serving more new users, we are also expanding the wallet share of our existing users. We believe it's the result of our growing capabilities in offering more savings and better services. This very encouraging trend strengthens our confidence in the overall direction of the high-quality development strategy. 再从供给端来看，我们利用技术和规模优势，为全球的中小商家带去了差异化的平台服务，提升了平台对于商家的价值。那通过这些服务，我们在帮助全球的中小商家扩大市场触达的范围的同时，也为平台的用户带去了不断丰富的平台的商品的品类，从而实现了平台生态的正向循环。 From the supply side, we leverage our technology and scale to provide differentiated services for our SME merchants. Through these services, we help SME merchants expand their market reach and at the same time broadening the product selection available on our platform. By doing so, we create a virtuous cycle. 接下来我们会一如既往地坚定地做长期的投入，耐心为消费者和商家创造长期的价值，为平台的下一阶段夯实基础。谢谢。 Looking ahead, we will continue to invest firmly and patiently to create long-term value for our consumers and merchants, and also to build a solid foundation for the next phase of our journey. Thank you. Operator, we are ready for the next question. Your next question comes from Kenneth Fong with UBS. 嗨，晚上好。谢谢管理层接受我的提问。我有两个问题。第一个是关于整体消费行业的。管理层可以跟我们分享一下对未来一年国内拼多多的业务的整体消费市场的看法？然后公司在第一季度会有看到一些新的趋势，可以跟我们分享吗？我第二个问题是关于盈利跟股东回报的。我们看到第四季度公司在竞争行业的竞争加剧，全球化的业务快速发展以下还是取得不错的盈利水平。可以请管理层跟我们谈一下接下来对利润率趋势的这些看法，还有我们应该去怎么去思考2024年的利润率的水平。还有就是从股东回报方面，我们看到我们资产负债表跟现金流也非常健康。考虑到我们现在其他的互联网公司也在规模做回购跟派息等等动作，我们会有类似的打算。我继续翻译一下。 Thanks, management, for taking my question. My first question is regarding Pinduoduo domestic business. Can management share your view on the overall consumption market in the upcoming year? What are the new trends that you are seeing in the first quarter? My second question is on the shareholder return and margin. In fourth quarter, the company achieved a decent profitability against a backdrop of intensified competition and rapid growth of your global business. Can management share your view of how we should think about the margin in 2024 and going forward? And meanwhile, on shareholder return, we saw that you have a very strong balance sheet and then cash flow. Given peers have announced large increase in share buyback and dividends, do we have similar plans? Thank you. 你好，我是赵佳臻。先由我来回答一下关于消费市场的问题。 Hi, this is Zhao Jiazhen. Let me take your question on the consumption market. 在过去的一年中，我们切实地感受到中国的消费市场有深度，也有广度，也有韧性。我们对未来的消费市场是充满了信心的。 In the past year, we actually clearly felt the depth, width, and also the resilience of China's consumer market. We are very confident in its future. 我们从自身平台的趋势也能够清楚地感受到消费者信心是在不断地提升的。我们也期待在新的一年，在更多稳经济促消费的政策的支持下，消费复苏的态势可以得到进一步的巩固和加强。 Also from the activities we see on our platform, we clearly feel the improving consumer sentiment, and we look forward to seeing that trend continue into this year with the support of more macro policies. 我们看到许多消费向好的长期的推进力。第一，消费者对于美好生活充满期待和向往，这个是消费发展的底层的支撑。第二，在消费科技创新下，零售业的新业态、新模式层出不穷，也推动了线上的零售渗透率不断地提升。这也为行业的长期发展奠定了基础。最后，随着产业升级，越来越多的高品质跟品牌化的新国货和农货的涌现，也给平台提供了更多的机会。 We see many long-term driving forces behind the positive consumption trends. First of all, consumers have desires for a better life, which lays a solid foundation for consumption growth. Secondly, we see new retail formats and business models emerge with the technology innovations, which also drive online penetration of retail sales. This supports the industry's long-term prospects as well. And thirdly, we see tremendous potential in a large number of quality national brands and agricultural products. And this also offers further opportunities for our platform. 在长期向好的消费环境下，我们将持续地投入，不断地提升服务能力，与商家一起服务好消费者，提升平台的消费生态，创造更大的社会价值。谢谢。 And in this favorable consumption environment, we will continue our investment, enhance our service capabilities, collaborate with more merchants to serve our consumers well, and also improve the platform ecosystem. And by doing so, we hope we can create greater value for our society. Thank you. Hi, Kenneth. This is Jun. Let me take your question about the profitability and shareholder return. Well, regarding profitability, we always emphasize that we are still in the development stage. Profitability in the short run is not our priority. Considering our current stage of development, our strategic focus remains on the high-quality development of the platform. So we will focus on building the platform's long-term value, which is consistent with the interest of our investors. Over the past years, guided by our strategy of high-quality development, we have made firm investments in a few key areas. For example, we have continued to give back to consumers to deepen our market share. We also remained committed to R&D, with R&D exceeding CNY 10 billion for the second consecutive year. This investment has yielded favorable initial returns. Moving forward, we will continue to make decisive and patient investments where we see good long-term ROI potential. Our business execution cycle is affected by various factors and may not align with our financial reporting cycle. Profitability on a quarterly basis will inevitably fluctuate based on the different investment opportunities we identify. The financial results in Q4 may not serve as a benchmark for future quarters. Regarding the share repurchase and dividends, you are basically asking about our overall capital allocation, which is also affected by the stage of our development. Each company is at a different stage of development. And for us, we are still in the investment phase. So our current focus is still to invest in our long-term value. Thank you. Okay, Operator. Let's move on to the next question. Your next question comes from Thomas Chong with Jefferies. 晚上好，谢谢管理层接受我的提问。我的第一个问题是有关全球化业务的。我们看到我们集团的全球化业务在过去一年取得不错的发展。目前管理层对这块业务的规划是什么？有什么思考可以跟我们分享？另外，市场也是非常关心公司对平台法律合规方面的看法。公司如何在法律合规和业务发展之间做一个平衡？我的第二个问题也是有关竞争的。在过去的一年中，公司的主要竞争对手的战略都是进行了调整。重新开启强调价格的低价经济和天天低价的战略，管理层如何看待竞争对手的重新的定位？是否担心会对拼多多的市场份额造成影响？我们在激烈的竞争环境下如何调整自己的战略？ Thanks management for taking my questions. My first question is that we saw your global business has gained good momentum in the past year. Could you please share any of your views on the future plan for global business? Moreover, the market also pays attention to the company's position on compliance. How would the company balance legal and compliance with your business development? My second question is about domestic competition. In the past year, many of your major competitors have pivoted in their strategies, putting more emphasis on price competitiveness. How does the management view the repositioning of your competitors? Are you concerned that it might impact the market share of Pinduoduo? How do you adjust your own strategy in such a fierce competition? Thank you. Thomas, 你好，我是陈磊。由我来回答一下有关全球化业务的问题。我们对全球化业务的初心呢，是希望能够以自己的供应链和技术能力，将全球的优秀商家、优质商品带给世界各地的消费者。帮助全球不同的消费者呢，实现他们的梦想。这个业务呢，仍然处于早期的阶段，未来呢，可能有很多变化和挑战。 Hi Thomas, this is Chen Lei. Let me take your question on global business. Our vision for global business is to utilize our supply chain and technological capabilities to bring outstanding merchants and high-quality products all over the world to global consumers, helping consumers from all backgrounds to achieve their dreams. Currently, the business is at a relatively early stage, facing many uncertainties and challenges ahead. 应对这些未知呢，我们自己能够把握的就是不断地修炼内功，抱着向消费者学习、向市场学习的真诚态度。积极地去探索更多的技术和模式的创新，迎接市场竞争和各类的挑战。 To address these uncertainties, we must constantly improve ourselves. With a genuine desire to learn from consumers and the market, we actively seek more innovations in technology and operation models to embrace market competition and overcome challenges. 我刚才也提到了，无论市场环境或者竞争格局如何的改变，但是消费者对于电商平台的诉求、多实惠、好服务，这是不变的。因此，我们也会坚定地将高质量发展的战略贯彻到全球化的业务中去，同时做好长期投入的准备。我们对平台的独特价值主张是有信心的，同时我们也欢迎志同道合的伙伴加入我们，一起为全球各地的消费者创造更多的价值。 As I mentioned earlier, despite shifts in the market environment and competitive landscape, consumers' demand for more savings and better services is universal. Therefore, we will be dedicated to integrating our high-quality development strategy into our global operations and be prepared for long-term investment. We have confidence in the unique value of our platform and welcome like-minded partners to join us in creating more value for consumers globally. 刚才您也提到了有关合规的问题。一直以来，我们把法律合规工作视为业务发展的基础。因此，法律合规一直是我们战略规划里面重要的组成部分。管理团队对这块的工作非常地重视，也投入了大量的精力。去年我们在集团层面上设立了法律和合规委员会，由我本人担任委员会的主席，进一步地加强我们在各区域的法律事务和合规的能力。 You also mentioned compliance. Legal and compliance have always been fundamental to our business. It's a big part of our strategic planning, and the management team has put in extensive efforts in this area. Last year, we established the Legal and Compliance Committee, chaired by myself, to reinforce our legal and compliance capabilities across regions. 经过过去一段时间的建设，我们不断地完善内部合规机制和流程。我们抱着虚心的态度，及时了解最新的行业法律法规的动态，也与各国的相关监管机构进行了沟通和合作。 Through our continued efforts, we enhance our internal compliance mechanisms and processes. With a humble attitude, we strive to stay abreast of the latest industry laws and regulations and maintain communication and cooperation with regulatory bodies in the countries where we operate. 在法律合规的领域，我们对自己的要求就是要向业内的高标准对齐。我们会持续在这方面做好投入和研究，为平台的长期健康发展打好基础。谢谢。 We aim to align with high industry standards in the field of legal and compliance. We will continue to conduct research and invest in this area to lay a solid foundation for our long-term healthy development. Thank you. 你好，我是赵嘉真，由我来回答一下有关于竞争的问题。 Hi, this is Zhao Jiazhen. Let me take your question on competition. 正如我们之前提到的，在2023年全国各地都在实行恢复和扩大消费的政策的导向，消费市场也在持续地回暖。同时，消费者也正在越来越关注如何更经济更便捷地满足消费身体的需求。在这样的一个大背景下，电商平台看准机会，加码促销力度，在价格上做文章，我们觉得是行业的正常反应。 As we mentioned earlier on this call, in 2023 we saw a sustained recovery in consumer sentiment, and at the same time consumers started to care more and more about achieving upgrades at attractive prices. In this background, we think it is normal to see e-commerce platforms increase promotional efforts and also focus more on price competitiveness. 竞争是电商行业的主旋律。面对竞争，我们回归本质，始终从理解和满足消费者的需求出发。我们把精力放在完善自身的能力上。 Competition is inevitable in our industry. In the face of competition, we always focus on understanding and meeting the needs of consumers and keep working on our own capabilities. 在过去的一年，平台的高质量发展战略执行出现成效。我们对整体战略方向充满了信心。接下来，我们会更加的心无旁骛，狠抓执行，把高质量发展贯彻到平台运营的方方面面。 Over the past year, we have built good momentum on our high-quality development strategy, and we are confident in the overall strategic direction. Moving ahead, we will be focusing on implementing our strategy in every aspect of our platform operations. 首先，我们会继续坚定地站为消费者，夯实多实惠的能力，也会实时地关注消费者的需求，在消费者呼声最高的产品品类和价格段上做简单直接的促销投放，回馈消费者，也会进一步地强化平台的用户心智。这是我们需要持之以恒、不断投入的立身之本。 First, we'll continue to deepen our consumer mindshare, and we do so by offering more savings to our users. We'll very closely follow consumer needs and launch very simple and direct promotional activities targeting the most desirable product categories and price ranges. This is the foundation that we need to keep investing in. 当然了，良好的消费体验不只是价格这一个维度。在好服务方面，我们也会在整个的购物流程上对售前、物流履约、售后、消费者保护等方面会做全方位的持续的升级，让消费者能够买得放心。 Of course, a good consumer experience is not only about price. In terms of services, we also continue to refine our entire shopping experience from presale consultation, fulfillment, after-sale services, to consumer protection. Our goal is to offer a safe and enjoyable shopping experience for our users. 同时，作为科技企业，我们会继续以研发为本，本着科技向上的原则。我们将不断地夯实赋能广大的中小商家的平台能力，推动农产品和制造业的产业升级，提高商品附加值，并将更多受欢迎的产品推向市场。 At the same time, as a tech company, we'll increase our investment in R&D, and we are guided by the principle of tech for good, and we'll continue to strengthen our capabilities to empower a wide range of SMEs, promote the digitization of the various industries, and also introduce more popular products to the market. 作为平台生态的另一个重要组成，优质的供给是我们服务好用户的基础。我们希望以研发能够进一步地带动平台生态的正向发展。 High-quality supply is a key component of the platform ecosystem, and it's essential to serving our users well. From this angle, we hope that R&D will further drive the positive development of our ecosystem. 我们相信回归本质，把注意力放在这些真正有价值的长期投入上，我们就能够在激烈的竞争环境中保持平常心，不断地完善自我，为消费者和社会创造更大的价值。谢谢。 We believe that by focusing on these areas that are critical to long-term value creation, we can remain calm in a fiercely competitive environment and continue to improve ourselves and create greater value for the consumers and the society. Thank you. Okay, operator, it's about time. I want to thank you all again for joining us today. If you have any further questions, please reach out to our team. Thank you, and see you next quarter. Ladies and gentlemen, that does conclude our conference for today. Thank you for participating. You may now disconnect.