Pinduoduo Inc.

Q3 2021 Earnings Conference Call


spk_0: the day ladies and gentlemen thank you for standing by and welcome to the been do what do a third quarter twenty twenty one earnings conference call at this time all participants are in the listen only mode after to the speakers press prepared remarks of there will be a question and answer session please be advised that to these conferences being recorded i'll notes and to call over to your hosts for today's call mister thompson please go ahead sir
spk_1: that the operator a lawyer one as like it were drawn out today
spk_2: monday with ten an hour help host the earliest call today
spk_1: kindle go earnings release was distribute it earlier and is available on our website at the with the dup him to a dot com as well as through a global news wire services before we begin of like to refer you to our with a poppers day month in earnings press release which applies to this call as we will make stood the bowler looking statements are so this call include discussions of that a non gaap financial measures please refer to our own his release which contains a reconciliation of the now get me
spk_2: measures to get measures johnny are today on the call or ten late our chairman and chief executive officer tony mark of a repeal finance lay will make some general remarks our performance for the past quarter and our strategic focus going forward
spk_1: tony was a elaborate further of specific strategic initiative and take out through a financial results for the third quarter ended september thirty twenty twenty one
spk_2: after that we were opened the floor to questions from adelaide
spk_1: during the cure a dozen lay will answer questions and chinese and passed will help translate please call he note that oughta lay some provided or for a self reference only in case of and a discrepancy between original remarks and translated version they month in the original language should prevail
spk_2: now it is my pleasure to introduce our chairman and chief executive officer chen les les to go ahead
spk_3: thank you have hello everyone and think you were drunk all the love modeling fourth quarter of two love to the one our total revenue for the colder it could be when you for the legend by failed what i've been in the one point four billion the will that are generally a group of big the bible get i'll add you at the buyer reached a hundred sixty seven point three million for the don't mine and a whole september
spk_4: oh order
spk_3: how did have a duty police to they one hundred forty one point five million
spk_5: keynote open things up money
spk_3: let grateful for opportunities for the apology was farmers merging and where everyone who had deep act with past six years and we hope to continue believe it he had the over a year thing i took a word like that evil and harbinger of children of an award
spk_5: over the period
spk_3: we have been busy looking like have vision which and happy to report has been you and own track the i totally get paid to live tradition as be happening behind have been the birth is moving younger talent and leaders to the thick and it's shipping to more corporate investment the often be full of pretty good focus fulfilled marquis two point five year and now let me elaborate free ogilvy younger talent and leave him
spk_5: since the beginning of last year
spk_3: yep with new many of our younger teens appeasement doesn't have to take more responsibility the young men and women demonstrating their core value of commitment to argue when communicating with drunk and disrupting our daily lives many of them are our young to be needed to be took action is to sort the federal fly and the lemur to use meet you need when heavyweight drunk one night in july the blend into action to sort out of baku recording it just takes so that are usually will not run out of baby teeth been out for think the weapon repeat that the truth and think our civil code or use it as if like where being encouraged to see more with potential to become future the day of openness lately practical pigment decision as to me that family exceeding our expectations i'm proud able to walk alongside with the young team defiant age many of that has been with the company for member of years and have been to over job that's shaping the future of the college young talent liquid cooling can get a bigger and constantly evolving you'd be more than taking a critical role in the next six to twelve miles of he continued great opportunity for them to the epa and the second shift into mobile good and to read me the research and development we're already serving eight hundred sixty seven even you to leverage from australia has of having of that them and we get up engineering training where begin creating power usage demanding that this is a significant shift in strategy for power for five years will we were full could be much more have failed and ninety agriculture have been married three and a bad fall apart only if you're very beginning well we saw an opportunity to create value of i bring agriculture he told digital economy train of engineered my case i have people out there to fight technology solutions to implement a profit agriculture pleasure we have already pledged to fifty of the things you know feel much more or less we do in agriculture is battery with technology therefore we plan to deepen our investment a tech able agriculture solution to the drug court could lead vector the indian food from bringing more agricultural products and agriculture committee into a digital economy and a second floor for improving efficiency in agriculture's prime chance to meet use that the by and reduce weight open a topic year people who has provided that could deal with across time with the wild they have their ip of agricultural previews at that the pipe were helping farmers to increase their income well the thirty six years ago we'll among the first with the agricultural produce aisle and now we have to get ping ping media favourite to a hundred sixty seven point three million can be only major why during trying to have gotten week in october agriculturally leaked or be with our platform series two hundred seventy nine then over the think a we love you we're hoping to do will be going to platforms for court the agricultural products for foreign and consumers we look forward to leverage in our platform to have more in order to get pulled their life cool and benefit their communities put it and will continue to focus on a flawed in digital inclusion agriculture to will expand our core of me all due to a comedy as you progress ecommerce as breaker it helped them to control a price competition heading away the all definitely in their own head of liquor to directly to consumers a autumn i recall any conclusion we've tried to make it a little completion policy of agricultural products and i've been taught will continue to improve consumer when it is an appreciation of agricultural produce geographical indication an agricultural branch sweet technology innovation such both live streaming media marketing the federal the motherland it can feel the power the book agitated found are the more bad you can be created every county community contract well off of his dying tech able seven days to complete the project efficiency for agriculture that one of them is too many locals plot with local develop and a third time perhaps repute unless and definitely transit for provide fresh your options will consumers to further the cut of touch with asian thai everything's not a wait we have the right in front for her to technology solutions like rock climbing awkward design and olympics and the corporate optimization this solution how to lay the foundation for infrastructure that more think the ball agriculture with you and walking route mentally unstable i bought a applying to agriculture technology go beyond matching supply and demand active extend into identifying upstream technology solutions to improve productivity nutritional profiles and robin those the thing that blood i'm the appetite fabrications we also hope to make agriculture attractive to a tech savvy younger generation a good example of i saw it in the area it off not every county competition he had demonstrated that privilege of farming techniques can make real improvement to fall apart something for our competition last year had started to commercialize that tech technology or strawberry coffee beijing it back and then oh stop and the bring tangible productivity gains founder
spk_6: the get it
spk_3: we have joined forward with china agricultural university the entertainment the with package to get you find human food and agriculture organization and the often get me with the anything in line with our priorities wax then to a challenge to accept but just we'll by the nutritional value environmental sustainability and commercial back at it contests and have adopted a market is printed approach a prime nutrition five precision funding our rather than technology to calculate comical the plight of the final thing cultural crosby for the way and wrong like real rural agricultural computer back i believe that remotely planning tomatoes get off my the queen of people june working hard to see that eighty percent of the team members upping their twenty three packs a new ideas to a traditional agriculture sector and at that time we are properly with workshop agriculture excuse to offer the job be picked haven't paper because it and training on topic such a full house how encounter crop management and most of it agriculture industry with great potential for young people good thing the future technology apple aspire to make impact for society i an actually have proper we want to average are plentiful and technology to provide more opportunities for young talent for java agriculture to him looking with the to apply technology to improve average being offered packed with every called it the project he didn't be racking technology to a agriculture sector as if important get a challenging task in a five hour long term commitment and will not be patient and systematic would hope that some out to thought we can help you are smarter and more sustainable future for agriculture last quarter we allow for lunch hour can be the agriculture initiate which seeks to the just quit company agriculture sector and rule and the initiative was not driven by profit or commercial goes drive the facility really at the bottom and appetite promote these to inclusion and upper like africa kennedy was deployed motivation and sense of achievement profit from the second quarter and any potential profit in a few reporters will go towards this in the late him and chula final goal of can't believe is map the profits by third quarter the we also go to live in michigan after been book involvement we have the eg am an end up and birth and we initiated was approved by our shareholders bingo thought it closely connected to the community where we operate this point in crucial to our development and the we ain't isn't what is the pondered for a death of ability therefore we have committed to take on more responsibility for the fact in july we've got into action after having lived jack lemmon we've got eighty to one hundred million i've been to flog believe to launch a portal to support emergency believe this roof a total broccoli network in food the little too far food page book is fly and it looked with suppliers inside out that winner secure and dispute if as thieves who are nearly twenty thousand of the a october we also contributed to that be the default he paused were having when beer donating fifteen maybe it thing fifty million i'd be too thanks to charge the operation to carry our emergency about thirty beef and post is active with construction look looking forward with plans to do more to contribute to society we continue to put actively average our platform had resorted to stop our users farmers virtue and their community that thank you and now any part time to time
spk_7: ah thank you lay a hello everyone let me begin by sharing highlights of some of our agriculture initiatives and cost corner
spk_8: then i will discuss our financials for the corner first as part of our efforts for the digital inclusion of farmers we initiated and the supported a serious of agricultural promotion activities to strengthen the direct connection between farmers and the consumers
spk_7: autumn is a hobby the season and the september we wore a main platform of the farmers harvest festival and it's good and autumn consumption season
spk_8: we launched a total hobbies the hawk and designed a series of any shooters to help farmers to sell better including live streaming much and training traffic support etc over two hundred two hundred eighty thousand agree merchants participated in our event this year nearly doubled the number last year in september we joined the ministry of agriculture and rural affairs farmers bailey and the china growing food development center to kick off the bed
spk_9: two thousand and twenty one campaign of china's t i agricultural products store
spk_8: became pen pals to promote the agricultural products and the original heritage helping to recognize quantity agricultural products across china
spk_7: to support a campaign we provided the technical and platform support we offered online and offline training including marketing and branding techniques tailored to gee i products
spk_8: doing china them week in october a plan when families typically real night and enjoy news together we rode out various initiatives to make more agricultural produce across the nation easily accessible through our platform these initiatives help the to increase agriculture really that orders which is search the two hundred and seventy nine percent over the same period last year second are setting up efforts to raise consumer awareness appreciation and demand for quality agricultural produce and the producing regions
spk_7: in october we launched our apple good i'm week
spk_10: we worked with farmers in six major apple producing regions
spk_7: so see says he sent i'm gonna so for trying and seen down to develop a grieving and the director distribution from framework
spk_8: the framework helps to provide consumers with delicious and high quality apples and abuse awareness of the places where these apples are cultivated as part of this initiative approved selection team stationed in these regions four month to study local markets and to help train high quality apple merchants with straw supply chain capabilities alongside the strikes were also working with research institute to implement industry standards for agricultural products we partnered with the jostle freshwater fishery research institute on industry standards for chinese mithun cracked these are standard cover quality size packaging and transport which will provide consumers with a clear bases to make an informed decision on their purchases we hope to help farmers to promote their product better meet the demand and the expectations of the consumers for poor quality goods and services and build a sustainable business on our platform
spk_9: therefore we will continue to maintain our zero commission policy for agricultural products
spk_8: no let let me walk through our third quarter results
spk_7: our any active buyers for the last twelve months and being september thirtieth two thousand and twenty one increase the to a hundred and sixty seven point three million up seventeen point four million from the prior quarter
spk_8: meet you in queue free reached several hundred and forty one point five million
spk_7: this is up fifteen percent compared to the same quarter in two thousand and twenty given our coming scale i will you the growth will inevitably be more moderate going forward
spk_8: at the same time as we serve a larger use the base where we are the police more diversified and even involving user needs our task has become increasingly difficult we hope that our younger team leaders could embrace the challenges and continue to serve use a nice innovatively in terms of pm now our total revenues in the quarter and september thirtieth two thousand and twenty one war i and be twenty one point five billion up fifty one percent from i'm be fourteen point two billion in the same quarter last year excluding revenue from a one p trials i would total revenue through by fifty five percent to i am be twenty one point four billion in queue free two thousand and twenty one and the key driver was online marketing services on a marketing services revenue was or in be seventeen point nine billion this quarter up forty four percent compared to the thing private in period last year parliamentary due to the increase in motion activities oh transactions of it's revenues this quarter amounted to aren't be three point five billion which is up one hundred and sixty one percent compared with the same period last year the increase in our success of service revenues was due to to primary factors number one the increase in transaction processing fee lemme to the service revenues that would recognized in connection with total grocery for which we provided for human and other related services revenue from the merchandise sales from i will one key trials was are and be eighty point one million in two three two thousand twenty one as compared to er and be two billion in the preceding corner a lumpy business was a temporary solution to meet the demands of our users on products which our lurch and could not for few as we see more products offering from i will merchants we expect contribution from one key travels to be insignificant now moving onto costs and expenses our total cost of revenues increased from on be free point three billion in queue for a two thousand and twenty two i be six point six billion this quota
spk_7: the increase was primarily due to higher cost of payment processing fees cloud service a thief and a delivery and the storage fees
spk_8: total operating expenses this quarter for i am twelve point eight billion as compared to i am be top on to be the and the anything quarter of two thousand and twenty our total non gaap bases operating expenses or on be eleven point seven billion as compared to i and be eleven point three billion in the think quarter a year ago oh no get sales and marketing spencer's this quarter it's in nine point seven billion decreased decreasing one percent compared to the same quarter of two thousand and twenty on the don't get visas our sales and marketing expenses as a percentage of our revenues this quarter what about forty five perfect as compared to eighty nine percent and the sixty nine percent for the same quarter in two thousand and nineteen and the in two thousand and twenty the continued the reduction in sales and marketing expenses as a percentage of revenue reflects our efforts to proactively reduce sales and marketing expenses as as we gravitate to go towards more investment on i the on an uncapped basis i would generally and that of illustrate of expenses was are in be one hundred seventy eight point one million compared to er and be one hundred thirty two point six million in the same quarter of two thousand and twenty
spk_10: i would not get research and development expenses or and be one point nine billion an increase of thirty percent from i'd be one point four billion in the same quarter of two thousand and twenty this increase in ninety was primarily due to an increase in headcount and the do a crewman of more experienced are indeed indeed now
spk_8: as will continue to strengthen our second batch to laid the foundation for future sustainable growth and continue improving our surfaces to me the evolving use of the mountains
spk_11: we are committed to expand our investments in i am the and expect to continue to increase in line the expenses
spk_8: to sum up
spk_9: operating profits for the potter was rmb be two point one billion on a gap of basis compared to with operating loss of or be one point three billion in the same quarter of two thousand and twenty
spk_8: not gap operating profit was arm be free point three billion compared with operating loss of arm be free hundred and thirty nine point eight million in the same quarter of two thousand and twenty
spk_7: i went on gap operating profits as a percentage of our revenue improved the from minus minus two point four percent in two three two thousand and twenty two fifteen point two percent in que three two thousand and twenty one
spk_8: net income attributable to other know he shareholders was i'd be one point six billion as compared to net loss of or in be seven hundred eighty four point seven million in the same quarter last year basic earnings for a the s was i am be one point three one and of the diluted earning for eighty f was in be one on one side compared with basic and diluted know loss radius of on be cyril point six six in the same quarter of two thousand and twenty non gaap net income attributable to ordinary shareholders was are in beef three point two billion compared with net income of i'm be four hundred and sixty six point four million in the same quarter last year don't get diluted earnings per eightieth was are in be two point one eight compared with non get diluted let earnings for abs of i'm be fiero point three three in the same quarter of two thousand and twenty in august we announced the launch of ten billion every culture initiative
spk_12: which aims to address the greeks economies in the agricultural sector and a rural areas the initiative would not be driven by profits or commercial goes a strive to facilitate the advancement of agree tech promote digital inclusion and provide agree tech talent with great a motivation and a sense of
spk_2: achievement
spk_7: the initiative received shareholders approval at the gm home at the end of september profit from the third quarter it will also go into this initiative
spk_8: we expected the initiative to have a near term impact on earnings per share for shareholders that completes the profit and loss damon for the third quarter that castro provided by operating activities was i'll be a point seven billion compared to leave i'd be a point three billion in the same quarter of two thousand and twenty
spk_13: and for september thirtieth two thousand and twenty one the company had i'm be ninety seven point nine billion in cash cash equivalents and shot him investments
spk_1: with that i conclude my prepared remarks
spk_2: thank you tony for today's to a session where have like our chairman and chief executive officer and tony oh repeal finance on the line preston will help translate later when marks in chinese to english for ease of reference
spk_14: operator women now take questions from the first alice on the line
spk_15: certainly
spk_0: if you wish to ask a question you will need to press star one on your telephone to withdraw your question press the pound our husky once again if you wish to ask a question please press star and the number one on your telephone keypad
spk_16: your first question comes from the line of natalie will have heightened international please ask your question hi good evening thanks for are taking my question i asked two questions yeah ah well for message that yourself a marketing expenses paid playing of i just wonder our changing or all i thought as a mocking standing our houses in fact that on the danielle steele just as muslims judges or this is also the second consecutive quarter that your company is showing are both know gap and gas pump at the just wondering i apologizing probability of my ghost going forward and us shoot the investors extent for your probability for two thousand and twenty one i'm going on with small on and my second questions regarding the other culture isn't sure this was just wondering on an edge on can you provide an update on the are can be a in ah initiative new study last quarter has any investment been with lab to the in now latest the by ventura
spk_17: salt ah which i mention line items has been affected and kids
spk_3: a whole be nice
spk_18: i feel like it
spk_3: due to the month for
spk_19: teach religion
spk_20: to whole flow
spk_21: if you're a dead day
spk_3: job as in the afternoon yeah he instigated issue
spk_22: she should all be if you get you can you source gonna
spk_8: with a campfire she's one of the animals
spk_22: i thank you naturally father fashion
spk_8: and also have shown our high standards
spk_3: for telemarketing marketing muslims are will i have not changed that at all user base a fan and our use a nice diversify we are also company of hi michael adjustments to our our one model and the goal is actually to better serve our users diversified the man the muslims will be kids you know because you are flowing to the know with you through that she goes to go ah about a lot of other countries to the quit i'm a allowed that you would get up those youngest a whole now i will your whole body blogger into this you see people that you're keep the alone actually one hundred dollars wouldn't be a lot of food as you said that lot of the good deal with history and bomb results
spk_23: the had a skillful ability to the serious your them up google nicola common fallacy to go see the plate the portal of us and it's yet another woman will manage committee to a complete wishes to as a dependent on the towards israel would i said do you feel one example there the to have super ego is missing that from them
spk_3: so when we were just starting will a hoping that our with the application of technology week has served a wider consumer for per our principal off at benefit all and so when i would use a base was relatively small of and muslim goal it's actually to attack wax more users to catch and know about i've tried to have features and also try out altai for now at all user base a much larger with one more users they're starting to use apps and or two our our new challenges now a how can we constantly encourage them to try out new category to explore new experiences and how can we actually meet their changing and much higher expectations of us so that we can improve our track and field longer term use a mineshaft
spk_20: the largest as a secure
spk_3: just enough to see the difference is for you look at one that she managed to arguably three churches be messy get because you tell them since and the to be is as was the one she died at the qualities me the job
spk_23: he designed to for pencil the it as you know what enough to use of interest will it gets sweet dreams of the to fuel fleet
spk_8: usually go to the drizzle
spk_3: to begin blue jays or the ideology which isn't included are you kinda i looked at each at home an editor challenging fact constantly satisfy users especially active and that would have such as a large and diversify base of user and it is also the challenge for our new generation of leaders and we are also learning and adjusting to eat a ratio that one thing that is not changing and that will continue to hold us off to a high standard and terms of sales marketing and spend all sort of marketing dollars in a highly disciplined disciplined manner
spk_6: no it was not only away way park also is hunky father
spk_23: to those guys in the truth about a little dog how to the what you feel that a little gallows vomited the total number of the not yet so when i told the cool
spk_22: to the really lima and i have been dollars and fool it's a good ticket sales and marketing could double profit to get a to quite
spk_8: each time you a sweeter and everything from we are also starting off our investments and investing patiently for long term development of our company and you may have noticed that we are are increasing our armed the investment and which is a key area for our future investments and
spk_7: you're pushing also touch upon our profitability so lucky off tony to help address off
spk_8: and luckily coming coming back to your question regarding the general concept is gonna be unprofitable for the past two quarters be the main contribution of our probability in the past two quarters if be leveraged efforts from south a marketing expenses and as soon as a declining for sandy casar revenue but for us the probability is not any teams keep yeah internally we're more focused on our long term investment address the uses fundamentals i'm as we have been communicating with the market and to us investment into sales and marketing is similar in nature to capital expenditure which crystallize as user mindshare a long term assets for us
spk_13: so did this is a strategy that we have been digitally executing for the first five years and an area where we will continue to practice financial prudence
spk_7: i'm it is worse to highlighting that we are shifting our focus and the investments towards i'm the and expect to step up our investment air to lay the foundation for the a solid long term growth as a result we will expect i the expenses to to increase going forward i'm
spk_3: come to your second question i can get up at calais will address that question but plenty to sell pamper on out one comment on that i think he mentioned about the financial impact in the third quarter foreigner ten billion a program
spk_24: i'm things this problem as a only get the gm approval at the end of september
spk_21: so in the queue for a financial results there's nothing has been booked our affected yet
spk_8: later pastor flown out of back to you or doubled
spk_23: well that would say the archers your choices is what i was a few wild goose political by emotion the dries out your hotel or which is the little dollar has a huge he to the family and a hotdog the hubble's for that example that we him again now one lucky that upon are you
spk_16: industry three regions you
spk_0: the divine the fukushima
spk_25: and i like to add one of here so after we announced our ten been angry initiative last quarter we have received a man a quality product proposals and of isis from there at stake holders in the industry so together with my team i'm also and diligently starting out there is a puzzles and and so that worked out a couple dancer for this
spk_3: that it very clear thank you and they don't tell me
spk_26: and your next question concerns the line of thomas chang has jeffries please ask your question
spk_3: hi are given a nap and management novelty kang my question i have a two questions or the first question is about the competitive landscape in online shopping as well as impactful our side due to the increase in corporate an avid he invites swimming that on online shopping and my second question yeah about our support measures ah can manage amanda hi nice about the plot measured trends and how should we expect the won't wake up between gmb an advertising due to the disappoint measures that thank you oh no issue with i shouted think about it as either once you get away love the don't wanna be a aussie the care about your legacy though only it should be this is not only does it will truly be treated you should be able to get father are you flunk one that it would get to academic them
spk_27: salt thieves
spk_28: some christians short and she for yeah i truly don't you want
spk_22: that do for the body to have to filter the one even though
spk_23: and the you a little that it was a popular hiking it's funny dollars get on the fringes on them
spk_3: i would do oh to it as actually time for a question on let me attractive passion and thought in my view ecommerce in china is a shooting a three full of vibrancy and potential as we see mobile technologies and continue to develop and and relevancy
spk_29: structure companies too much for and also at the same time consumer demand a spouse or company evolving with all this moving pieces and these changes and commercially and we do expect as more and more platform answering this faith and said this would make commercial that
spk_8: women are changing does he have done that your so what's what's in that would you leave that tweeting a good guess as a hobby it younger the items of yoshida thousand such a won't go away a lot of the to the diego with the wait for your data for you
spk_23: the you have doubts yeah that will die
spk_8: ah i see that sitting in a contingency to asia
spk_3: and i don't think i'd rather not have that at the reasons you should use and of regulatory measures are promoting healthy competition and the alpha or the the development of the entire ecommerce sector and in all of your we think that's more competition are always good in terms of promoting positive and benefits and providing benefit to you there is the industry and all the companies involved what you would you be able to go it's much about what the denny's without in the so deeply again he does he play this yet will give them up the he disappeared
spk_22: oh to die you should on the up with it for your says
spk_23: i'm guilty of sunday or today
spk_22: the she got a to that could conduct spot to look at you
spk_3: through a little that for this today and for example we have in python companies including on the shop or video platform entering have in common factor too often it is not surprising to see these companies are ways and sarge she which are user base and hi you the frequency and such as their shot the to on to enter the space and either same time are we are also seeing more and more platforms with cycle user base and engagement level untrained his face without issue singapore why bush illegitimacy on it's your father he was he dies out without he says should he get he sentenced to death
spk_30: whatever the outcome of this is among other people though those holes into a hunch was just a woman been looking toward us local is how that he beneficial a little swollen goes your corner
spk_31: he comes as highly delete us was how the other
spk_8: teachers all the manner in which with obstacles either
spk_22: dave how's your office issues with
spk_3: as for their hobby that and so does not cause the external factors and but i think it always important to come back and zoom in on into our self and see what kind of that we provide soul to the lashes started off and from selling and agricultural produce and we always aim to help attract users stating a fact he and base six me show you my view these sets us apart from the other you come as players and potential new entrant
spk_21: no deal with a get largest it was a full article seems audience se
spk_3: and the now softly to a boxer so was he it into the said kilometers you got started with to women
spk_32: go to good he said he said the flu and i'm super drunk
spk_3: chief watch operator a portion that had it was it's own on the civil way i didn't have a circle on either do the jobs she will allow for the i'm kinda they gonna be safe in iraq political solution
spk_23: oh my god does he do little to the studio recently hundred yards sweet to buffalo was always gets yeah you live
spk_25: his i was in the who live on a good jobs for way what you to he thought so that people to authorize it to the fines or a baby today good city
spk_33: and so for us how to serve our nearly a hundred seventy million users and angry mean user centric a our been fun as a company and so the question now the company also south are how can we continuously each are made to serve value a spanner at the same time
spk_7: are we creating value of the society we promoting of wiener environment and sustainability so of our our chief strategy a company has always been talking you the try and to create value for society and which we believe will also become our long term asset
spk_8: ah i think you up my ballot question it's about our house or you think about the support masters at night and and the will play ah between not gm we an appetizer and items out of his appointments just a thank you
spk_34: a thank you so much
spk_35: they try to address your question or am i think your question is a pretty much link to the outlook of monetization
spk_8: that plenty shed some of our views our strategy and has always been serving our youth as well as really just mentioned in his and a response of we believe the revenue growth and monitor vision a natural result of that and an i would much as ally is already reflected
spk_7: our revenues as you can see our revenue for this quarter's shoes and be healthy our merchants are seeing
spk_36: when when they feel more on outperform
spk_8: hum
spk_7: we do not focus on the monitor station on a quarterly basis at it is a result of use a satisfaction and merchants our
spk_37: i'm an hour met the and monetization rate and has for have been frustrated in the past and it'll be the case going forward
spk_15: hum
spk_38: we were also raising the bar on the quality of merchants and products to meet our users need come to help promote agricultural produce to users and restaurants and pdt as a go to crap on for agricultural products
spk_39: i'm therefore at we are committed to keeping at the royal commission how policy for agriculture and a fresh produce got it thank you and get on your next question comes from the line of eddie wang of morgan stanley please ask your questions ah thank you on on he time for my question i also have two questions the first one just regard our efforts to attract more plants and back branded products merchants are on our platform i was noted that much and much a nice which knocked out actually declined significantly on quote unquote ah show which supposed to be see a very ideal potlatch for us i can ask hot ash catcher fuck them more branches brand our pop on the fact that the question number one and the second question about how we are concentrating abomination finer things that caught her
spk_40: so ah as we we got an option
spk_39: competitor performed the actually has been affected by the was consumption significantly less than seem to be welcomed and i just want our huge your view on college
spk_3: we consumption how can i can affect her armpits ah especially coming down to job ah have high exposure to the output accent
spk_19: and prepared for money
spk_3: i mean that to our be gross all obstacles actually it's more kids are you know under gift shop environment thank you
spk_41: oh well i'll be damned if you with your heart of your ones include tiger woods
spk_21: lot of would be the hard issue she voted for the door the joke with it
spk_3: that get that little one
spk_18: she'll become doctors four you
spk_3: the resources
spk_32: gets angel
spk_3: sheesh from the beach trip to
spk_27: yeah go to walk until for the to compete believe he'd been could do something for it
spk_3: the shelters whoopie pies to repeat repeat
spk_42: peter fonda
spk_22: chinese you know
spk_23: i'm a pretty large issued a huge with had she'll be paid a dodgy family dundas a good thing eleanor see the trauma that that it's would you to the people's on a beach activity so long as you can to me
spk_3: to go to the water again
spk_32: so let me answer your question i believe your first question and some brand saw as always a base in friends we are noticing that our do that need and to monitor also becoming more and more diversified and at the same time
spk_3: we are absorbing dodge our users name at a they do require more and they also require more abundant supply all of a put are offering and bran as saw a from our the will of when we do think that and terms of getting more brown at this point that will do take some time
spk_21: added thing kind of within an anti to trust on their shirts and half may have found little impact our by are we have noticed out and about brands finally dad to come to the platform and start to operate and and that fiber and the opening a guy is i it's a gradual process
spk_3: our which requires both the platform and the brass to put him resources and energy and time and to be touched and foster successful partnership so we do expect this to take some time and deport has to be more gradual
spk_15: lucky for you to lose touch with the just treat
spk_0: people have a ph
spk_15: only
spk_43: he was a kid to do with it was not guilty she live tweeted for to a month to the closer to the seagulls siegler see the shiny the stimulant something out of the put it's owner
spk_44: you can daughters will negotiate him kind of use the machines with a social package
spk_45: in the beach sheer it's your shit in june she'll she'll thought she believes she had seen five usually bomber not the it's knowledge of bengal deploy a tool and title that spoken to him cold passwords or please hold at a conference will resume shakily thank you for your patience thank you for standing by were no back on
spk_46: if us to ask a question please press star one on your telephone
spk_3: your next question comes from the line of a joy to do of bank of america please ask your question
spk_20: once again for the line of to your line is on
spk_18: you may ask a question
spk_19: oh
spk_18: of management for taking does give me the chance to i'm taking my question i have two questions ah my first question as related to the regulatory environment
spk_23: a good management give us an update on the recent regulatory environment specifically does tells them baba opening up affect our operations on the you so she has them colors on on if the are are and the regulatory measures that affects your operation
spk_8: i'm a second my question though we have seen our one t business continue to decline in the third quarter on the this mean that you have a winding down the business or in a comment on the future one piece of their contribution thanks alot oh what it up with i judge the the wouldn't either
spk_46: do you like you going
spk_3: to really learn to to to trade citizens with but i mean to the birds
spk_46: we do yeah
spk_19: of the hobby in bed with on the father
spk_8: have you been i know maybe she'll be wouldn't bother oh shut off the pooja to the jungle i'm in a ginger the ones who need some semblance of the ones with on
spk_46: so within the refund theory of revenue from ushers food
spk_19: how to promote a high quality both of the fuck on economy and the entire industry
spk_46: tall we have always been fully embracing it for in the regulatory measures and will continue to from the authority in a month or relevant guidance and measure
spk_23: mama come down candidate to walk them
spk_46: you wanna you better than the hunt dawkins you haven't seen too much to do people get beat up to the law
spk_47: but what mullah you consider here
spk_46: home the coolest celebrity something that simply a month he adds to the you from it's about the mostly again with a weaver
spk_19: we thought that many companies are taking action and a continuing to optimize and the backdrop of these changes from hot broth on by regulation in industry
spk_48: well one of these company our company as a whole is practically taking these as opportunity to improve our top and also to further enhance compliance with a recognition
spk_22: what does she like cutler by that and with from dog is it the bellagio
spk_23: the monitor on sinise woman and you done this yet been on his alter ego to of the funny besides the party this year know those you get up in some an ego
spk_8: in the short term or you may notice the impact from these changer by the in the media and to longer term goal of we believe that these changes would be very beneficial to users the three and at the companies involved in this industry
spk_7: ah i lineage and gonna resort thought just another know
spk_8: a few years without to go on to one's know with with with your mom she the ah
spk_49: when i'm going to some college years of ah the the hidden agenda driven them to do them good have you done
spk_1: no submit to eat was recently not no will be quite tricky the i see the you
spk_0: so do couldn't eat

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