PDD Holdings Inc.

Ladies and gentlemen, thank you for standing by and welcome to PDD Holdings, Inc. First Quarter 2023 Earnings Conference Call. At this time, all participants are in a 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 then 1 on your telephone. I must advise you that this conference is being recorded today. I would now like to hand the conference over to your host today, Mr. Chen Peng. Sir, please go ahead.

Thank you, operator. Hello, everyone, and thank you for joining us today. My name is Chen, and I will help host the earnings call. PDD Holdings' earnings release was distributed earlier and is available on our website at investor.pddholdings.com, as well as through group newsletter services. Before we begin, I would like to refer you to our Safe Harbor statement in earnings press release, which applies to this call, as 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 the non-GAAP measures to GAAP measures. Joining us today on the call are Chen Lei, our Chairman and Co-Chief Executive Officer, Zhao Jiazhen, our Executive Director and Co-Chief Executive Officer, 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 take us through our financial results for the first quarter ended March 31, 2023. During the Q&A session, Lei and Jiazhen will answer questions in Chinese, and we will help translate. Please kindly note that all translations provided are for reference purpose only. In case of any discrepancy between the original remarks and the translated version, 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 early call for the first quarter of 2023. I will start by giving a brief overview of our first quarter results. We achieved a total of RMB 37.6 billion in revenue this quarter, representing a 58% year-on-year increase. During the past quarter, we saw consumer sentiment continue to improve. We have seen a surge in demand across various categories, reflecting consumer's eagerness to explore the wide range of products we offer. The quarterly results also show that our long-term strategic focus on high-quality development is starting to pay off. We are glad to see that the focus on quality development not only sets us on a solid routine for the future, but also delivers immediate gains for consumers and sellers. We are encouraged by the strong backing from our stakeholders. We work hard to create a lively marketplace where consumers can find what they are looking for and where high-quality sellers can thrive and succeed. Technology is very important to our mission to build a healthy and vibrant platform ecosystem. It is also a vital catalyst to drive efficiency and opportunities in the manufacturing and the retailer sectors. That is why we are putting more time and resources into R&D to foster sustainable progress. Our engineers make up about half of our total employees. R&D helps us meet the unique needs of consumers, provide merchants with deeper understanding in shocking trends, and allow manufacturers to respond swiftly to evolving demand. By making supply and demand work better together, we can help unlock the potential in different industries. We will continue to step up our investment in R&D. And now, let me talk about our globalization effort. Last year, we launched Tmoo to offer quality products at affordable prices to consumers around the world. By working closely with sellers and manufacturers, Tmoo offers a wide selection of merchandise, reduces supply chain inefficiencies, passing on savings to consumers. As we move forward, we will keep seeking ways to meet diverse consumer needs, and we are still in the early stage of exploration. We will always start from the fundamental needs of consumers, adapt quickly, and strive to create our own unique value. As we continue to grow, we are finding more ways to generate a positive impact to the society. A vibrant and sustainable e-commerce ecosystem can only be achieved by encouraging broader engagement in the digital economy. For instance, the advent of mobile internet has created a space for female entrepreneurs in e-commerce, enabling them to balance work and family. By providing the opportunities, we have enabled females to utilize their unique skills in managing successful e-commerce enterprises. In fact, Many of our platform's female entrepreneurs started their first business with us. They have created new jobs and injected new vitalities into their communities. We are committed to providing more opportunities for individuals to become entrepreneurs through training and a wider market access. We are prominently among the younger generation. We believe that nurturing a passion for reading can open doors to knowledge. To this end, we hold regular reading events and donate books, and we invite reputable authors to talk with students in rural areas. We hope this will help young students broaden their horizons. We are also working to promote agricultural digital inclusion. We are helping young people who are passionate about agriculture to bring new technology from lab to the field. We are working with top universities and institutes to encourage innovation. We also hold competitions for young people to realize their skills and ideas, which help create innovative and sustainable farming practices. As a young company still in the development stage, we believe that through the increasing business opportunities facilitated by us, we can help uplift communities and make contributions to the society. We will do more as we grow. And finally, I want to introduce my longtime colleague, Mr. Song Jiazhen, who was recently appointed as the co-CEO and executive director by our board. Jiasheng concentrates more on supply chain management and China operations, while my focus is more on globalization efforts. Jiasheng is a founding member of our company. He led a team to launch and expand our DoDo grocery business and also led our supply chain efforts. Jiazhen and I have been working closely together for over a decade. We have established deep trust in each other. His new leadership role shows that our team is full of vitality and our next generation of leaders are ready to take on more challenges. And now, I will hand over to Jiazhen.