PDD Holdings Inc.

Ladies and gentlemen, thank you for standing by and welcome to PTZ Holdings, Inc. Third Quarter 2024 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 one 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 begin.

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, 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 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 Jing, our VP of Finance. Lei and Jiajun 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 third quarter ended September 30th, 2024. During the Q&A session, Lei and Jiajun will answer questions in Chinese and will help translate. Please kindly note that the 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, Mr. Chen Lei. Lei, please go ahead.

Thank you. Hello, everyone. Thank you all for joining our earnest call for the third quarter of 2024. In the third quarter, we stepped up our efforts in execution of high-quality development strategy and invested firmly in building a healthy platform ecosystem. We rolled out several initiatives that extended our ecosystem upgrades to the whole supply chain, such as a $10 billion fee reduction program and a high-quality merchant support program. These efforts brought cost savings and efficiency gains to over 10 million merchants. and during the process, encourage the agricultural regions and industrial belts that we serve to embark a new phase of high-quality development. This past quarter, we delivered robust results with revenues and net income reaching RMB 99.4 billion and RMB 25 billion, respectively. When compared to last quarter, we have seen a moderation in revenue growth and profits have also trended low. This was partly due to the intensified competition in the e-commerce sector and the various challenges faced by our business. At the same time, as noted last quarter, our investments in ecosystem development expected impact short-term financial results, and this is within our expectations. Beyond the financial results, we placed greater value on long-term benefits of ecosystem investments. Over the past quarter, our initiatives in fee reductions and merchant support policies have received positive feedback from merchants, manufacturers, as well as from the consumers. In mid-August, we first launched the $10 billion fee reduction program, which included several measures such as service fee refunds, fee reduction for buy-now-pay-later services, lower security deposits, and an easier fund withdrawal process. In addition, we also upgraded after-sales service support for merchants, which brings further cost savings while improving service quality. This effort injected flash energy into our ecosystem and created opportunities for growth and transformation that benefits both our merchants and industry labors. As a first among the e-commerce platform, we also adopted a logistic support measures to promote e-commerce services in remote regions across Western China. Last quarter, we eliminated the transshipment fees for orders to these regions with all such costs covered by the platform. This innovation marked a first upgrade to our fulfillment experience that builds on our earlier initiatives that provide the free shipping to some villages in Western China. Programs like this not only benefit local consumers but also enable merchants to enter these underserved markets, which further strengthen the economic link between the different regions. In addition to fee reductions, we also launched the high-quality merchant support program, which aims to empower merchants and brands that demonstrate strong product and technology innovation capabilities. Leveraging our digital capabilities We offer comprehensive support in product development, marketing, operation, and supply chain management. The examples set by these quality merchants and brands also serve as a driving force behind the growth and transformation of agricultural production regions and industrial belts in the future. At the moment, the 10 billion fee reduction program covers all product categories on the platform, with over 10 billion RMB in fee reductions planned for the coming year. The logistic support measures continue to benefit consumers from remote areas, driving significant order volume growth from these regions compared to the last quarter. Meanwhile, the high-quality merchant support program has already been implemented in dozens of agricultural regions and industrial zones, enriching the platform's supply chain for high-quality products. On the demand side, consumers are experiencing a shift in their preferences, with greater focus on quality and personalization. This has posed new demands on supply chain innovation. At the same time, our initiatives in fee reductions and merchant support policies are encouraging more merchants to innovate, which enables them to better meet the consumer's demand for more quality products, thereby creating a positive cycle. This reaffirms our commitment to make investments that drive impactful results over the long run. we will continue to firmly execute our high-quality development strategy and to nurture a healthy platform and supply chain ecosystem, which brings sustained benefits to consumers, merchants, and manufacturers. As a platform rooted in agriculture, we continue to make our own contributions in this field, with a particular focus on advancing research and technology innovation. On September 20, we hosted the final round of the fourth Smart Agriculture Competition, where six finalist teams explored cutting-edge technologies in agriculture digitalization and experimented with real-world applications. On September 26, We hosted the Global Agri-Inno Challenge 2024 in collaboration with leading research institutes. Legends of young entrepreneurs from around the world presented innovative digital solutions to tackle agriculture challenges faced by farmers around the world. As mentioned last quarter, as a global company in the new era, We are committed to driving innovation and adapting to change. We are also prepared to do more to give back to the society, to support agriculture and other industry sectors, and to take on greater social responsibility in the regions across the globe. And now, I will hand it over to our co-CEO, Song Jiazhen, to talk in more detail about our development plan.