PDD Holdings Inc.

Ladies and gentlemen, thank you for standing by and welcome to the PDD Holdings Inc fourth quarter and fiscal year 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 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 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 Globe Newswire Services. Before we begin, I would like to refer you to our safe harbor statement in 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 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 Co-Chief 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 fiscal year ended December 31st, 2024. During the Q&A session, Lei and Jiazhen will answer questions in Chinese and will help translate. Please 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 earnest call for the fourth quarter and the fiscal year of 2024. 2024 is a pivotal year for advancing our high-quality development strategy. To drive the sustainable growth of our platform and supply chain ecosystem, we extended our high-quality development vision for the platform to supply chain through a series of initiatives, such as fee reductions, merchant support policies, and trust and safety updates. We systematically implemented proactive measures in platform operations, merchant services, supply chain and logistic innovations, leading our platforms into a new phase of high-quality driven growth. We delivered stable results over the past quarter. Our Q4 revenue reached RMB 110.6 billion. Up 24% year-on-year and full-year 2024 revenue totaled RMB 393.8 billion, growing 59% year-on-year, which represents a moderation in revenue growth. As mentioned in previous quarters, our significant ecosystem investment coupled with fast-changing external environment and intensified competition landscape will impact short-term financials. However, our commitment to ecosystem investments remains unwavering, and we are confident that these efforts will deliver sustainable long-term returns. In the second half of 2024, we accelerated our high-quality development strategy through several major initiatives. including a 10 billion fee reduction program, logistic support measures to promote e-commerce services in remote regions, and a high-quality merchant support program. We are pleased to see that these initiatives have started to bear fruit. Among these, The 10 billion fee reduction program has enabled over 10 million merchants to enhance operational efficiency and reduce costs, while a promotion service fee rebate program alone has begun to deliver significant savings to eligible merchants. All logistics support measures tailored for remote regions, through double-digit order volume growth, and extended free shipping to nearly 100 million consumers in these regions. The first phase of high quality merchant support program supported a large number of high quality merchants and brands across 1,000 agricultural regions and industrial zones in their transition towards high quality development. At the same time, We also established the Merchant Rights Protection Committee to formalize communication channels with merchants. We have rolled our upgrades to an up-to-sale survey system and introduced a range of improvements and government measures to address issues such as other dispute resolution issues. These initiatives aim to enhance the overall business environment for merchants and build a platform ecosystem that benefits all participants. The platform rooted in agriculture, we remain committed to supporting agriculture industry through sustained investments in agriculture technology, supply chain innovation, and training for next generation farmers. Over the past year, our long-term initiatives such as Pinduoduo Smart Agriculture Competition, Global Agriculture Innovation Challenge, Pinduoduo Academy Growing Competition, and the Agriculture Research Fund have delivered encouraging results. For example, The six finalist teams in the fourth Pinduoduo Smart Agriculture Competition achieved breakthroughs in yield, efficiency, and energy consumption through digitally optimized new farmland, with the innovations now being applied in real-world settings. In terms of our global business, our mission to provide global consumers with high-quality products remains unchanged. Guided by this vision, we will continue to focus on supply chain efficiency, service innovation, and ecosystem development while observing high compliance standards. Our goal is to build a trusted global platform and shopping environment that serves consumers worldwide. Looking ahead, high-quality development will remain at the core of our strategy in 2025. We will continue to focus on the healthy and sustainable development of merchants and supply chain, and certainly advance the high-quality development strategy. One step at a time, we will work on strengthening merchant rights protection, stepping up support for high-quality merchants, and broadening quality supply on the platforms. In addition to supply chain investments, we aim to accelerate the supply of high-quality products to remote regions, and in doing so, enhance the product offerings for consumers in less accessible areas and foster a win-win ecosystem for consumers, merchants, and the communities we serve. Together, we will drive the sustainable development of our platform and the broader e-commerce ecosystem. And now, I will hand it over to our co-CEO, Zhao Jiazhen, to share more about our development plans in 2025.