PDD Holdings Inc.

Good day and thank you for standing by. Welcome to the Pinduoduo first quarter 2021 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you can press star 1 on your telephone. Please be advised that today's conference call is being recorded. If you require any further assistance, please press star 0. I would now like to hand the conference over To our first speaker today, Mr. Jason Hsu. Please take over.

Thank you, operator. Hello, everyone, and thank you for joining us today. Pinduoduo earnings release was distributed earlier and is available on the ARR website at investor.pinduoduo.com, as well as through Global Newswire Services. So on today's call, our Chairman and Chief Executive Officer, Chen Lei. We'll make some general remarks on our performance for the past quarter and our strategic focus going forward. Our VP of Strategy, David Liu, will then elaborate further on our specific strategic initiatives. Our VP of Finance, Tony Ma, will then take us through our financial results for the first quarter in March 31, 2021. So before we begin, I would like to refer you to our safe harbor statement in the earnings price release which applies to this call as we will make certain forward-looking statements. Also, this call includes discussions of certain non-GAAP financial matters. Please refer to our earnings treaties, which contains a reconciliation of the non-GAAP matters to GAAP matters. Now, it is my pleasure to introduce our Chairman and Chief Executive Officer, Chen Lei. Lei, please go ahead. Thank you, Jason.

Hello everyone, and thank you for joining our first quarter 2021 results announcement. It has been over a year since the initial break of COVID-19. Since then, we have carefully moved towards double C, while respecting the necessary precautions and occasional measures to tamp down the flare-up of the coronavirus. After mostly staying in place over the lunar New Year holidays in February, Chinese consumers finally took a well-deserved break over the May Day holidays, shopping and traveling around the country. With summer approaching, we hope that the global pandemic situation will continue to improve as more people receive their vaccinations. I would like to thank the merchants and logistic partners who work closely with us to serve our users throughout the period. Together, we created another industry first by staying open and serving users over the Lunar New Year. We provided users with cheer by ensuring that they could get what they required over the holiday and easily send presents and care packages to their loved ones back home with just a few clicks on our app. According to the State Post Bureau, The total parcel volume over the period from 11th to 17th February stood at $660 billion, growing by 260% over the same period last year. We are proud to have contributed towards keeping up our users' spirits while they kept themselves, their loved ones, and their community safe. Our overarching commitment to serving our users has helped us put yet another strong quarter. Our annual active buyers increased by 35.4 million from the December quarter to reach 823.8 million for the 12 months ending on the 31st March 2021. We continue to build trust and my share with our users. User activity on our platform continue to increase. Over the quarter, our MAU increased to $724.6 billion, representing 88% of our annual active buyers. Total revenues, excluding revenues from merchandise sales, was RMB $17 billion, a year-on-year increase of 161%. Our growing scale gives us both greater capacity as well as responsibility to live out our mission to benefit all. We constantly think about how we can best marshal our resources and reach to catalyze improvements and bring more benefit to society. Our direct access to over 800 million consumers and our understanding of them as well as our network of over 8.6 billion merchants on our platform, makes us uniquely well positioned to bring top minds from around the world together to develop practical solutions to real-world problems that our users encounter every day. As we work towards our goal of becoming the world's largest agriculture and grocery platform, we must also seize the golden opportunity to transform and modernize the agri-food system. We want to help consumers adopt healthier and more environmentally sustainable diets while improving all the links of the supply chain and cost structure of agriculture industry. And now, let me touch on two points. First, we are pursuing partnerships to answer questions on the future of food. we have just entered a research partnership to quantify the impact of plant-based meats on human health. Alternative proteins are a promising component of a more sustainable diet. It's useful to know how they affect us. And this is not our first research partnership, and it will certainly not be our last. For example, A year ago, we started a project to develop a more portable and low-cost test for pesticide residues. Upon commercialization, that project will improve food safety and quality, thereby benefiting many people. Second, we are rethinking logistic systems and infrastructure. We have a privilege of being the only exclusively mobile commerce players of this scale in the world. This unique characteristic of Pinduoduo has helped us to become world's largest commerce platform by the number of paying users. This singular focus on mobile-only experience came about because we recognized back in 2015 the immense potential of ubiquitous mobile computing to drive trends in consumer behavior and usher in a totally new era of interactivity among users. Similarly, with logistic systems in infrastructure, we are looking at how things can be done with a fresh pair of eyes with no preconceptions. Pinduoduo has an advantage in this area. We originate many puzzles, over a third of daily puzzles in China last year. and have expertise in complex technological system design. We are already working on algorithm design, data analytics, and co-trained logistic development and optimization. We have applied for some patents as well. We hope to roll them out widely in actual operations and help logistic providers achieve higher efficiency and lower cost. As we continue to grow, I believe that we can use our skill for good. As we search for solutions in science and logistics, we remain committed to becoming the world's largest agriculture and grocery platform. Our mobile-only and discovery-oriented platform, as well as team purchase model, are well-suited for food items and daily essentials. we see strong demand for Dodo Grocery, which is giving consumers the chance to buy a great variety of perishables directly from farmers and agri-merchants located in the region. We will continue to iterate our products and make groceries sourced around the world affordable and available to our growing number of users. We foresee Pinduoduo becoming important force multiplier and enabler that can truly make a meaningful difference in the world. At the same time, we remain committed to our social inclusion effort and support for revitalization of rural communities. For any advancement to be truly durable, we must look out for all our stakeholders, It is critical that we partner and empower them with tech. This means that we will keep on helping farmers and agri-merchants operate better and earn more. We will continue to provide training for them to harness the full suite of tools on our platform to optimize sales and benefit from our platform's visibility into final demand. we will help them increase their productivity by working with local government and agronomic institutes to harness new technology. Since the beginning, we have brought approximately 100,000 new farmers back to their hometown, and we have committed to training another 100,000 new farmers over the next five years. We want to be a catalyst in this virtual cycle. Only with farmers and agri-merchants earn more can they invest in greener agriculture. In building China's first agri-focused infrastructure, our priority remains partnering existing third-party service providers first and foremost on everything from co-trained logistics, warehousing, sorting, and delivery. For Dodo Grocery, we focus on partnering local communities closely. We work with existing shops, including mom and pop stores, to serve as our pickup point, enabling them to gain extra income. We also provide courses to them to aid their digital transition. In fact, since the start of Dodo Grocery, we have catalyzed the creation of millions of jobs up and down the entire supply chain. We hope that the system we build will truly benefit all for a long time to come. This is in line with our core value of benefit of doing the right thing. We hope that this helps you understand better where we are coming from and share our hope for a better tomorrow. Thank you. Let me now hand over to David.