PDD Holdings Inc.

Ladies and gentlemen, thank you for standing by and welcome to the PDD Holdings Inc. Second Quarter 2025 Earnings Conference Call. At this time, all participants are in 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 the star key followed by the number 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. And 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 and also 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 well as make certain forward-looking statements. Also, this call includes discussions of certain non-GAAP financial measures. Please refer to our earnings press 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, and Mr. Liu Jin, 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 walk us through our financial results for the second quarter ended June 30, 2024. During the Q&A session, Lei and Jiajun will answer questions in Chinese that will help translate. Please note that English translation is for reference only. And 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.

Hello, everyone, and thank you for joining our second quarter 2025 earnings conference call. The first half of 2025 has seen rapid change in the external environment. At this critical juncture, when merchants doing business on the platform face challenges, We stepped up our commitment in high quality development and launched the 100 billion support program. Through this program, we have invested and will continue to invest substantial resources to support the merchant ecosystem. Together with our merchants, we are actively exploring new business models for the global business, seeking new growth opportunities, and navigating the ups and downs of the market cycles. These significant ecosystem investments were reflected in our Q2 financial performance. Revenue growth further moderated and operating profits declined by 21% year over year. However, as we have emphasized in the past, we prioritize long-term value creation over short-term financial results. Our focus remains on investing for the long term, such as strengthening the ecosystem, driving value chain upgrades, and delivering tangible benefits to our consumers. As a result of our investments in a hundred billion support program, we are pleased to see that the platform ecosystem is making steady progress towards sustainable and high quality development. Since August last year, our $10 billion fee reduction initiative has brought substantial savings for our merchants, creating room for them to innovate and to offer a wider selection of high-quality products to the consumers. At the same time, our logistic support initiative significantly reduced the cost of shipping to remote areas, and led to a 40% growth in order numbers from the regions, injecting new energy into the economy. In this past quarter, the entire company rallied behind a $100 billion support program to deliver innovative solutions to help merchants grow their business, while further reducing costs and commissions for merchants. We are seeing business of all sizes, from established brands to small merchants, gaining new momentum in our ecosystem. Let us look at a few examples. We are seeing established consumer brands successfully reinventing themselves by leveraging consumer insights to shorten product launch cycles, lower R&D costs, and enter into new market segments. Many industrial belt manufacturers were able to make the transition from wide-label products to a branded offering, breaking away from commoditized competition. With the help of the Door-to-Door Premium Produce program, we are seeing farmers and growers earn higher margins by improving quality control and by moving into food processing to capture higher value adds. Alongside merchant support, we have also expanded our consumer give-back program. In addition to the $10 billion program, we introduced new long-term consumer campaigns, such as the $10 billion coupon program. During this year's June 18th shopping festival, we provided additional coupons on top of the national trading program, driving record sales across multiple categories, including fresh produce, electronics, home applicants, and apparel, offering more value for the consumers. Meanwhile, in our global business, merchants and our platform face a more complex business environment. To navigate through the market cycles, we are working together with merchants to explore new business models and new markets, while at the same time deliver innovative solutions to drive efficiency. As a platform that has its roots in agriculture, we continue to invest in agri-tech through initiatives like the Smart Agriculture Competition, which is now in its fifth iteration. 46 global teams competed in the preliminary held in July this year, showcasing cutting-edge technology in AI farming, hydroponics, and air conditioning systems. This event is emerging as an important platform for agricultural technology research and application. Later in this year's competition, the participants will bring their technology from lab to field, testing the commercial applications of their research findings. Looking ahead, as external environments continue to evolve and competition intensifies, we remain committed to long-term value creation over short-term results. Our team will prioritize high-quality growth by creating long-term opportunities for merchants and investing in consumer experience. As we ramp up our investments, profitability will inevitably fluctuate, and this quarter's results may not represent future earning trends. And now, I will hand it over to Zhao Jiazhen to share more details about our performance in the second quarter.