2024-08-26 PDD Holdings Inc. (PDD) Q2 2024 Earnings Call Transcript
PDD Holdings Inc. (NASDAQ:PDD) Q2 2024 Earnings Conference Call August 26, 2024 7:30 AM ET
PDD Holdings Inc. (NASDAQ: PDD) 2024 年第二季度财报电话会议 2024 年 8 月 26 日 上午 7:30 东部时间
Company Participants 公司参与者
Lei Chen - Chairman & Co-CEO
雷晨 - 主席兼联合首席执行官
Jiazhen Zhao - Executive Director & Co-CEO
赵家珍 - 执行董事兼首席执行官
Jun Liu - VP, Finance
刘军 - 财务副总裁
Conference Call Participants
会议电话参与者
Joyce Ju - Bank of America
乔伊斯·朱 - 美国银行
Yang Bai - CICC
杨白 - 中金公司
Operator 操作符
Ladies and gentlemen, thank you for standing by, and welcome to PDD Holdings Inc. Second Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. There will be a presentation followed by question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded.
女士们，先生们，感谢您们的耐心等待，欢迎参加 PDD Holdings Inc. 2024 年第二季度财报电话会议。此时，所有参与者均处于仅听模式。接下来将进行演示，随后是问答环节。[操作员指示] 请注意，今天的会议正在录音。
I would now like to hand the conference over to your host today. Sir, please go ahead.
我现在想把会议交给今天的主持人。先生，请继续。
Unidentified Company Representative
未识别的公司代表
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 GlobeNewswire services.
谢谢你，操作员。大家好，感谢你们今天的参与。PDD Holdings 的财报已提前发布，并可在我们的网站 investor.pddholdings.com 上查看，也可以通过 GlobeNewswire 服务获取。
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.
在我们开始之前，我想请您参考我们在收益新闻稿中的安全港声明，该声明适用于本次电话会议，因为我们将会做出某些前瞻性陈述。此外，本次电话会议还包括对某些非公认会计原则（non-GAAP）财务指标的讨论。请参考我们的收益发布，其中包含非公认会计原则指标与公认会计原则指标的对账。
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 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 second quarter ended June 30, 2024.
今天电话会议的参与者有我们的董事长兼联合首席执行官陈雷先生、我们的执行董事兼联合首席执行官赵家珍先生，以及我们的财务副总裁刘军女士。雷先生和家珍先生将对我们过去一个季度的表现和战略重点做一些总体评论。随后，军女士将为我们介绍截至 2024 年 6 月 30 日的第二季度财务结果。
During the Q&A session, Lei and Jiazhen will answer questions in Chinese and will help translate. Please kindly note that the English translation is for reference only, and in case of any discrepancy, statements in the original language should prevail.
在问答环节，雷和佳珍将用中文回答问题并提供翻译。请注意，英文翻译仅供参考，如有任何不一致，以原语言的表述为准。
Now it's my pleasure to introduce our Chairman and Co-Chief Executive Officer, Mr. Chen Lei. Lei, please go ahead.
现在我很高兴介绍我们的董事长兼首席执行官陈磊先生。磊，请开始。
Lei Chen 雷晨
Thank you. Hello, everyone. Thank you all for joining our earnings call for the second quarter of 2024. For the first half of 2024, we have remained committed to our high quality development strategy and consistently invested in our platform ecosystem. We received positive feedback for these efforts. Consumer experience and our services have continued to improve. A number of new merchants and products have grown significantly. This further meets the diverse needs of our consumers.
谢谢大家。大家好。感谢大家参加我们 2024 年第二季度的财报电话会议。在 2024 年上半年，我们始终致力于高质量的发展战略，并持续投资于我们的平台生态系统。我们收到了对这些努力的积极反馈。消费者体验和我们的服务持续改善。许多新商家和产品显著增长。这进一步满足了我们消费者的多样化需求。
This quarter, we benefited from the improving macro environment and achieved robust financial results. Our total revenues reached RMB97 billion, which represents a year-on-year increase of 86%. However, we are seeing many new challenges ahead, from changing consumer demand, intensifying competition, and uncertainties in global environment. As a result, we will enter a new phase of high quality development that calls for increased investments. Our profitability will affect it as a result.
本季度，我们受益于改善的宏观环境，实现了强劲的财务业绩。我们的总收入达到了 970 亿元人民币，同比增长 86%。然而，我们面临许多新的挑战，包括消费者需求变化、竞争加剧以及全球环境的不确定性。因此，我们将进入一个高质量发展的新阶段，这需要增加投资。我们的盈利能力将因此受到影响。
Since the beginning of this year, we are seeing that consumer preferences have become more diverse. On one hand, consumers are increasingly choosing experience based consumption over material purchases. On the other hand, there is a growing emphasis on rational consumption. Consumers are making more thoughtful decisions to balance quality and value.
自今年年初以来，我们看到消费者偏好变得更加多样化。一方面，消费者越来越倾向于体验式消费而非物质购买。另一方面，理性消费的重视程度也在不断提高。消费者在平衡质量和价值方面做出更加深思熟虑的决策。
In response, we have collaborated with high quality brands and the manufacturers to create customized products that cater to these diverse demands. This approach has not only propelled many new brands to success, but also revive the popularity of many established brands. So this is just one example of how digital technology and then manufacturing can come together to create new opportunities.
作为回应，我们与高质量品牌和制造商合作，创造了满足这些多样化需求的定制产品。这种方法不仅推动了许多新品牌的成功，还复兴了许多知名品牌的受欢迎程度。这只是数字技术与制造业结合创造新机会的一个例子。
At this moment, the competition among e-commerce platform is quickly escalating, and therefore, it's even more important that we go back to the basics of supply chain improvements and invest firmly in supply chain efficiencies. This will be the key focus for our high quality development going forward. For example, in the second quarter, our teams continue to bring our agriculture cloud initiative to major driven (ph) production regions in helping local growers to bring seasonal foods directly to people's homes. And in this process, promoted local agriculture brand.
此时，电子商务平台之间的竞争正在迅速升级，因此，回归供应链改进的基础并坚定投资于供应链效率变得更加重要。这将是我们未来高质量发展的关键重点。例如，在第二季度，我们的团队继续将农业云计划带到主要的生产区域，帮助当地种植者将季节性食品直接送到人们的家中。在这个过程中，促进了当地农业品牌的发展。
In addition, to further improve the agriculture supply chain, natural research talents and promote technology inclusion, we continue to support the smart agricultural competition and Duo Duo (ph) Academic growing competition. The Agricultural Research Fund we established in cooperation with China Agriculture University has also started to bear fruit.
此外，为了进一步改善农业供应链，培养自然研究人才并促进技术融合，我们继续支持智能农业竞赛和多多（ph）学术成长竞赛。我们与中国农业大学合作建立的农业研究基金也开始结出硕果。
On the manufacturing side, we are pleased to find that a very small and medium-sized businesses have been using a digital capability from our platform to support product iteration and innovation. Through this process, they have not only emerged stronger from the competition, but also led the local industries towards high quality development. These results have strengthened our commitment to further investing in high quality development.
在制造方面，我们很高兴发现一些中小型企业正在利用我们平台的数字能力来支持产品迭代和创新。通过这个过程，他们不仅在竞争中变得更强大，还引领了当地行业向高质量发展迈进。这些成果增强了我们进一步投资高质量发展的承诺。
We have communicated on a number of occasions that profit growth in the past few quarters should not be used as a long term guidance. And it is a result of mismatch between the business investment and the financial reporting cycles. As we enter a new investment in the phase, I would like to make it clear to our investors that our process will gradually trend down starting in Q3, and there will be fluctuations or rebounds in the short term. In the long run, the decline in profitability is inevitable.
我们已经多次沟通，过去几个季度的利润增长不应作为长期指导。这是由于商业投资与财务报告周期之间的不匹配所导致的。随着我们进入新的投资阶段，我想向我们的投资者明确表示，我们的过程将在第三季度开始逐渐下降，并且短期内会有波动或反弹。从长远来看，盈利能力的下降是不可避免的。
Finally, our platforms has reached a considerable scale and we will remain committed to high quality development and focus on creating a healthy and sustainable platform ecosystem. And to this end, we adopt the necessary policies to vigorously support high quality merchants and tackle low quality ones.
最后，我们的平台已经达到了相当规模，我们将继续致力于高质量的发展，专注于创建一个健康和可持续的平台生态系统。为此，我们采取必要的政策，积极支持高质量的商家，并打击低质量的商家。
On the supply side, we will invest substantial resources to support high quality merchants who are willing to innovate and improve qualities. And we will offer significant transaction fee reduction to these merchants, with an initial target of 10 billion in the first year. By doing so, our goals to provide clear incentives for the merchants to join high quality development.
在供应方面，我们将投入大量资源支持愿意创新和提高质量的高质量商家。我们将为这些商家提供显著的交易费用减免，初始目标是在第一年达到 100 亿。通过这样做，我们的目标是为商家提供明确的激励，以加入高质量发展。
On the other hand, we will further deepen our trust and safety capabilities to improve our merchant ecosystem and strengthen our supply chain. We are actively identifying and removing unlawful vectors from our platforms, and we will continue to strengthen these efforts.
另一方面，我们将进一步深化我们的信任和安全能力，以改善我们的商户生态系统并加强我们的供应链。我们正在积极识别并清除我们平台上的非法渠道，并将继续加强这些努力。
At the moment, we have already started a new round of investments in operations and with R&D to streamline the merchant onboarding and product listing process. Leveraging technology, we will gradually improve the quality of our products sold on our platforms and create a fair and transparent business environment for our merchants.
目前，我们已经开始了新一轮的运营和研发投资，以简化商户入驻和产品上架流程。通过利用技术，我们将逐步提高在我们平台上销售的产品质量，并为我们的商户创造一个公平透明的商业环境。
In this process, we believe that sacrificing short term profit is necessary. A clear downward trend in profit is expected, but we are prepared to invest firmly and tastefully (ph) in the platform's long term health. This is a decision that has received unanimous support from all our management team.
在这个过程中，我们认为牺牲短期利润是必要的。预计利润将出现明显的下降趋势，但我们准备坚定而审慎地投资于平台的长期健康。这一决定得到了我们所有管理团队的一致支持。
And now moving onto the global business. In the past few quarters, we have noticed the rapid shifts in external environment, which brought significantly greater uncertainty. Our operations has also become increasingly affected by non-business factors. And meanwhile, the competition we face is growing stronger. Competition is here to stay and is expected to intensify in our industry.
现在转向全球业务。在过去几个季度，我们注意到外部环境的快速变化，这带来了显著更大的不确定性。我们的运营也越来越受到非商业因素的影响。同时，我们面临的竞争也在不断加剧。竞争将持续存在，并预计在我们的行业中会加剧。
Our global business is facing significant uncertainties from intense competition and evolving external environment. These factors combined will inevitably cause fluctuations to our business. As shown in this quarter's results, high revenue growth is not sustainable and a downward trend in profitability inevitable.
我们的全球业务面临来自激烈竞争和不断变化的外部环境的重大不确定性。这些因素的结合必然会导致我们业务的波动。正如本季度的业绩所示，高收入增长不可持续，盈利能力的下降趋势不可避免。
And finally, as the environment evolves and our company continues to grow, our management team and I often discuss how we can better fulfill our corporate social responsibilities. We believe there is still many things that can be done, for example, through enhancing our governance structure and extracting resources to better adapt to a changing times. We can also do more to give back to society to support agriculture and other industry sectors and offer greater support to the people who need the most.
最后，随着环境的变化和我们公司的持续发展，我们的管理团队和我经常讨论如何更好地履行我们的企业社会责任。我们相信还有许多事情可以做，例如，通过增强我们的治理结构和提取资源以更好地适应变化的时代。我们还可以做更多的事情来回馈社会，支持农业和其他行业，并为最需要帮助的人提供更大的支持。
We fully recognize that simply measuring our company's performance by short term capital returns no longer aligns with where we are today. As a global company in this area, we are committed to drive innovation, adapting to change and taking on greater social responsibilities in the region across the globe.
我们完全认识到，仅仅通过短期资本回报来衡量我们公司的业绩已不再符合我们今天所处的位置。作为该领域的全球公司，我们致力于推动创新，适应变化，并在全球范围内承担更大的社会责任。
Now, I will hand it over to our Co-CEO, Zhao Jiazhen to talk more about our operations in the second quarter.
现在，我将把时间交给我们的联合首席执行官赵佳珍，让她谈谈我们第二季度的运营情况。
Jiazhen Zhao 赵家珍
[Foreign Language] 请提供要翻译的文本
[Interpreted] Thank you, Lei. Hello, everyone. This is Zhao Jiazhen. Thank you all for joining our earnings call for the second quarter of 2024.
谢谢你，雷。大家好，我是赵佳珍。感谢大家参加我们 2024 年第二季度的财报电话会议。
In the first half of this year, online retail in China continue to perform well, bringing fresh energy to the overall consumption market. Over the past quarter, we continue to advance our high quality development strategy, making steady long term investments to support both supply and demand side of our platforms. Looking ahead to the second quarter of this year and beyond, we're very confident in the future of the Chinese consumer market.
在今年上半年，中国的在线零售继续表现良好，为整体消费市场带来了新鲜活力。在过去的一个季度，我们继续推进高质量发展战略，稳步进行长期投资，以支持我们平台的供需两侧。展望今年第二季度及以后，我们对中国消费市场的未来充满信心。
This quarter, we continued to focus on consumer demand, further enhanced our more savings and better services capabilities and upgraded our after-sales services to provide consumers with more value and more enjoyable shopping experiences. During the dual agents promotion, we continue to provide consumers with straightforward savings and introduced new promotions to meet the increasingly diverse consumer preferences. We also brought product categories like fresh produce, daily necessities and high end appliances into third and four tier cities, and made our contribution to consumption upgrades across the regions.
在本季度，我们继续关注消费者需求，进一步增强了我们的节省和更好服务的能力，并升级了我们的售后服务，以为消费者提供更多价值和更愉快的购物体验。在双代理促销期间，我们继续为消费者提供直接的节省，并推出了新的促销活动，以满足日益多样化的消费者偏好。我们还将新鲜农产品、日常必需品和高端家电等产品类别引入了三四线城市，为各地区的消费升级做出了贡献。
On the supply side, we stepped up our support for quality merchants and brands, directing more traffic to high quality products through 10 Billion Program and fresh sales. We have also focused on enhancing the quality and efficiency of the supply chain, bringing more value to the agricultural areas and industry regions, and benefiting more producers quality, agricultural and domestic group.
在供应方面，我们加大了对优质商家和品牌的支持，通过 100 亿计划和新鲜销售将更多流量引导到高质量产品上。我们还专注于提升供应链的质量和效率，为农业地区和工业区域带来更多价值，惠及更多优质生产者、农业和本土团体。
To support the countryside home appliance program and the consumer group trade in, we invested RMB1 billion during the first week of June 18. This boost led to remarkable growth for many local brands in categories such as electronics, home appliances, kitchenware and household products. For example, utilizing our digital technology, we helped a local brand with 36 years of history to understand the latest market demand and return to growth with a blockbuster product. It achieved RMB100 million in sales after joining the platform for just two months.
为了支持农村家电计划和消费者团购，我们在 6 月 18 日的第一周投资了 10 亿元人民币。这一推动使许多地方品牌在电子产品、家电、厨房用品和家居产品等类别中实现了显著增长。例如，利用我们的数字技术，我们帮助一家拥有 36 年历史的地方品牌了解最新的市场需求，并凭借一款畅销产品重新实现增长。该品牌在加入平台仅两个月后就达成了 1 亿元人民币的销售额。
没名没姓，神秘是个致命的缺陷。
In addition, the number of new merchants and new products support our platforms saw meaningful growth. In the first week of June 18, the number of merchants participating in the 10 Billion Program grew by over 90% year-on-year, and the number of agricultural merchants increased by 83% year-on-year. Our platform also attracted a great number of new merchants in categories such as electronics, home appliances and cosmetics.
此外，新商家和新产品的数量支持我们的平台实现了显著增长。在 6 月 18 日的第一周，参与 10 亿计划的商家数量同比增长超过 90%，农业商家的数量同比增长 83%。我们的平台还吸引了大量新商家，涵盖电子产品、家用电器和化妆品等类别。
To create a better business environment for high quality merchants, we have showed a new round investments in operations and R&D. Our goal is to build industry leading compliance capabilities and foster a healthy platform ecosystem. For example, we continue to streamline our merchant onboarding and product listing processes to better control product quality and offer consumers a safe and reliable shopping experience.
为了为高质量商家创造更好的商业环境，我们在运营和研发方面进行了新一轮投资。我们的目标是建立行业领先的合规能力，促进健康的平台生态系统。例如，我们继续简化商家入驻和产品上架流程，以更好地控制产品质量，为消费者提供安全可靠的购物体验。
We integrate automatic technology for product screening with thorough manual reviews by our trust and safety chain. This approach ensures regrowth oversight on product compliance while avoiding unintended penalties for quality products and merchants.
我们将自动化技术与我们信任与安全链的全面人工审核相结合，以进行产品筛选。这种方法确保了对产品合规性的再生监督，同时避免对优质产品和商家的意外处罚。
At the same time, we have invested heavily in developing comprehensive user friendly training materials for merchants to boost their compliance capabilities. This effort aims to enhance our supply chain quality, while helping merchants lower compliance costs and expand their market reach.
与此同时，我们在开发全面的用户友好培训材料方面进行了大量投资，以提升商家的合规能力。这项工作旨在提高我们的供应链质量，同时帮助商家降低合规成本并扩大市场覆盖。
We also deeply recognize that building a healthy platform ecosystem and achieving high core development is a gradual process, especially, given the consumer scale of our platforms. So we are committed to a dual approach. One side, providing strong support to high quality merchants while addressing issues with low quality ones. This way, we aim to create a healthy and sustainable ecosystem.
我们也深刻认识到，构建健康的平台生态系统和实现高核心开发是一个渐进的过程，特别是考虑到我们平台的消费者规模。因此，我们致力于采取双重策略。一方面，为高质量商家提供强有力的支持，同时解决低质量商家的问题。通过这种方式，我们旨在创建一个健康和可持续的生态系统。
In this process, we will inevitably for short-term cost, as Lei has mentioned, our managing team is fully committed to investing heavily for the long term health of our platforms. While profits might vary or even rebound in the next few quarters, it’s unavoidable that profitability will turn lower over the long term.
在这个过程中，我们不可避免地会为了短期成本，如雷所提到的，我们的管理团队完全致力于为我们平台的长期健康进行大量投资。虽然利润在接下来的几个季度可能会有所波动甚至反弹，但长期来看，盈利能力下降是不可避免的。
As the largest platform for agricultural products in China, this quarter, we further advanced our agricultural strategy. We launched the Science and Technology Courtyard project in Yunnan Valley and Shanxi, Huiping (ph) and also kicked off the fourth smart agricultural competition in collaboration with top research teams from around the world. We will continue to increase investments in agricultural research to promote the commercial application of research funding and accelerate the market adoption of high quality agricultural products.
作为中国最大的农产品平台，本季度我们进一步推进了农业战略。我们在云南谷和山西启动了科技庭院项目，并与全球顶尖研究团队合作启动了第四届智能农业竞赛。我们将继续增加对农业研究的投资，以促进研究资金的商业应用，加速高质量农产品的市场采用。
Meanwhile, we also leverage our strength as a platform, working with ecosystem partners to proactively take on more social responsibilities. We invested tens of millions in Reading Month and subsidies to launch a 7th total Reading Month. This initiative provides direct discounts on thousands of book products, making knowledge more accessible to more people.
与此同时，我们还利用作为平台的优势，与生态系统合作伙伴合作，积极承担更多社会责任。我们在阅读月和补贴上投资了数千万，推出了第七届阅读月。该倡议为数千种图书产品提供直接折扣，使知识对更多人更易获取。
假。
2024 is a critical year on our path towards high-quality development. We will focus on creating healthy and sustainable platform ecosystem and empowering our ecosystem partners with more platform resources and technical support. Together, we will lay a solid foundation towards the high quality development of our platform.
2024 年是我们实现高质量发展的关键一年。我们将专注于创建健康和可持续的平台生态系统，并为我们的生态合作伙伴提供更多的平台资源和技术支持。我们将共同为平台的高质量发展奠定坚实基础。
Next, I will hand over to Jun. She will provide an update on our financial performance for the second quarter.
接下来，我将把时间交给 Jun。她将提供我们第二季度财务表现的更新。
Jun Liu 刘俊
Thank you, Jiazhen. Hello, everyone. Let me walk you through our financial performance for the second quarter ended June 30, 2024. In terms of income statements in the second quarter, our total revenues increased 86% year-over-year to RMB97.1 billion. This was mainly driven by an increase in revenues from online marketing services and transaction services.
谢谢你，佳珍。大家好。让我为你们介绍截至 2024 年 6 月 30 日的第二季度财务表现。在第二季度的收入报表中，我们的总收入同比增长 86%，达到 971 亿元人民币。这主要是由于在线营销服务和交易服务收入的增加。
Revenues from our marketing services and others were RMB49.1 billion this quarter, up 29% from the same quarter of 2023. Revenues from transaction services were RMB47.9 billion, up 234% from the same quarter last year. In Q2, our top line growth slowed down significantly versus the last few quarters. Further slowdown is inevitable as a result of competition and global uncertainties.
本季度我们的营销服务及其他收入为 491 亿元人民币，比 2023 年同季度增长 29%。交易服务收入为 479 亿元人民币，比去年同季度增长 234%。在第二季度，我们的收入增长相比过去几个季度显著放缓。由于竞争和全球不确定性，进一步放缓是不可避免的。
Moving onto cost and expenses. Total cost of revenues increased 80% from RMB18.7 billion in Q2 2023 to RMB33.7 billion this quarter, mainly due to increase in fulfillment fees and payment processing fees.
转向成本和费用。总收入成本从 2023 年第二季度的 187 亿人民币增加了 80%，本季度达到 337 亿人民币，主要由于履行费用和支付处理费用的增加。
On a GAAP basis, total operating expenses this quarter increased 48% to RMB30.8 billion from RMB20.9 billion in the same quarter of 2023. On a non-GAAP basis, total operating expenses increased to RMB28.4 billion this quarter from RMB19 billion in Q2 2023. In Q2, we continued to invest in firmly to support the high quality developments of our platforms. Core total non-GAAP operating expenses as a percentage of total revenue this quarter was 29% compared to 36% in the second quarter last year.
根据 GAAP 标准，本季度总运营费用同比增长 48%，达到 308 亿元人民币，而 2023 年同季度为 209 亿元人民币。根据非 GAAP 标准，本季度总运营费用从 2023 年第二季度的 190 亿元人民币增加至 284 亿元人民币。在第二季度，我们继续坚定投资，以支持我们平台的高质量发展。本季度核心非 GAAP 总运营费用占总收入的比例为 29%，而去年第二季度为 36%。
Looking to specific expense items. Our non-GAAP sales and marketing expenses this quarter were RMB25.4 billion, up 54% versus the same quarter last year. Throughout Q2, we stepped up our promotional efforts to give back to consumers, and investing marketing to promote our platforms. On a non-GAAP basis, our sales and marketing expenses as a percentage of our revenues this quarter was 26% versus 32% for the same quarter last year. Our non-GAAP general and administrative expenses were RMB594 million versus RMB370 million in the same quarter of 2023.
查看特定的费用项目。我们本季度的非 GAAP 销售和营销费用为 254 亿元人民币，比去年同期增长了 54%。在第二季度，我们加大了促销力度，以回馈消费者，并投资营销以推广我们的平台。在非 GAAP 基础上，本季度我们的销售和营销费用占收入的比例为 26%，而去年同期为 32%。我们的非 GAAP 一般和行政费用为 5.94 亿元人民币，而 2023 年同期为 3.7 亿元人民币。
非常少。
Our research and development expenses were RMB2.4 billion this quarter on a non-GAAP basis, up 15% year-over-year and RMB2.9 billion on a GAAP basis. It's critical that we maintain our long-term focus and continue to invest in R&D to drive supply chain efficiency and customer experience. On a GAAP basis, operating profit for the quarter was RMB32.6 billion versus RMB12.7 billion in the same quarter last year. Non-GAAP operating profit was RMB35 billion versus RMB14.6 billion in the same quarter last year. Non-GAAP operating profit margin was 36% this quarter compared with 28% for the same quarter last year.
我们本季度的研发费用为 24 亿人民币（非 GAAP），同比增长 15%，GAAP 基础上为 29 亿人民币。保持长期关注并继续投资于研发以推动供应链效率和客户体验至关重要。在 GAAP 基础上，本季度的营业利润为 326 亿人民币，而去年同期为 127 亿人民币。非 GAAP 营业利润为 350 亿人民币，而去年同期为 146 亿人民币。非 GAAP 营业利润率本季度为 36%，而去年同期为 28%。
Net income attributable to ordinary shareholders was RMB32 billion for the quarter compared to RMB13.1 billion in the same quarter last year. Diluted earnings per ADS was RMB23.14, and diluted earnings per ADS was RMB21.61 versus base earnings per ADS of RMB9.64 and diluted earnings per ADS of RMB9 in the same quarter of 2023. Non-GAAP net income attributable to ordinary shareholders was RMB34.4 billion versus RMB15.3 billion in the same quarter last year. Non-GAAP diluted earnings per ADS was RMB23.24 versus RMB10.47 in the same quarter of 2023. As noted last quarter, our business does not follow a linear path, and the profitability in the last few quarters does not represent future.
归属于普通股东的净收入为 320 亿元人民币，与去年同期的 131 亿元人民币相比。每 ADS 稀释收益为 23.14 元人民币，而每 ADS 稀释收益为 21.61 元人民币，相较于 2023 年同季度的每 ADS 基础收益为 9.64 元人民币和每 ADS 稀释收益为 9 元人民币。归属于普通股东的非 GAAP 净收入为 344 亿元人民币，而去年同期为 153 亿元人民币。非 GAAP 每 ADS 稀释收益为 23.24 元人民币，而 2023 年同季度为 10.47 元人民币。正如上个季度所提到的，我们的业务并不遵循线性路径，最近几个季度的盈利能力并不代表未来。
Looking ahead, we will invest firmly to support a healthy ecosystem that encourages high quality merchants. Our profitability may fluctuate in the short term, but we are gradually track on lower in the long run. This is inevitable as we focus on the long term, high quality development of our platforms. That completes the income statements.
展望未来，我们将坚定投资以支持一个健康的生态系统，鼓励高质量的商家。我们的盈利能力在短期内可能会波动，但从长远来看，我们正在逐渐走向更低的水平。这是不可避免的，因为我们专注于平台的长期高质量发展。这完成了收入报表。
Now let me move on to cash flow. Our net cash generated from operating activities was RMB43.8 billion compared with RMB23.4 billion in the same quarter last year. As of June 30, 2024, we have RMB284.9 billion in cash, cash equivalents and short-term investments. Thank you. This concludes my prepared remarks.
现在让我谈谈现金流。我们来自经营活动的净现金为 438 亿元人民币，而去年同期为 234 亿元人民币。截至 2024 年 6 月 30 日，我们拥有 2849 亿元人民币的现金、现金等价物和短期投资。谢谢。这就是我准备的发言内容。
Unidentified Company Representative
未识别的公司代表
Thank you, Jun. Next, we will move on to the Q&A session. In today's Q&A session, Lei, Jiazhen and Jun will take questions from analysts on the line. We will take a maximum of two questions from each analyst. Lei and Jiajun will answer questions in Chinese and we will help translate for convenience purpose.
谢谢你，Jun。接下来，我们将进入问答环节。在今天的问答环节中，Lei、Jiazhen 和 Jun 将回答在线分析师的问题。我们将每位分析师最多接受两个问题。Lei 和 Jiajun 将用中文回答问题，我们将提供翻译以方便理解。
Operator, we are open for questions.
操作员，我们欢迎提问。
Question-and-Answer Session
问答环节
Operator 操作符
Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. [Operator Instructions] Your first question comes from Joyce Ju from Bank of America. Please go ahead.
谢谢。女士们，先生们，我们现在将开始问答环节。[操作员指示] 第一个问题来自美国银行的 Joyce Ju。请继续。
Joyce Ju 乔伊斯·朱
[Foreign Language] 请提供要翻译的文本
[Interpreted] I will translate for myself. I have two questions. My first question is, we have seen total profit growth remained robust this quarter. But in the prepared remarks, management mentioned there will be increased investment and profitability fluctuations caused by the competition. Could management share how you assess the profit plan in the future? In addition, in terms of shareholder returns, does management have any plan for share buyback or dividend payout?
[翻译] 我将为自己翻译。我有两个问题。我的第一个问题是，我们看到本季度总利润增长保持强劲。但在准备的发言中，管理层提到将会有增加投资和因竞争导致的盈利波动。管理层能否分享一下你们如何评估未来的利润计划？此外，在股东回报方面，管理层是否有任何股票回购或分红的计划？
My second question is, in the prepared remarks, we noted that management emphasized a lot on the merchant ecosystem and the merchant supporting policies. Could you please elaborate a bit on your understanding on the how you see merchant ecosystem, how to review it, how to understand it, and why this will become the focus of the platform in the next stage? Thanks a lot.
我的第二个问题是，在准备的发言中，我们注意到管理层非常强调商户生态系统和商户支持政策。您能否详细阐述一下您对商户生态系统的理解，如何评估它，如何理解它，以及为什么这将成为平台下一阶段的重点？非常感谢。
Lei Chen 雷晨
[Foreign Language] 请提供要翻译的文本
[Interpreted] All right. This is Chen Lei. Let me take your first question.
好的。这是陈雷。让我来回答你的第一个问题。
We have communicated on a number of occasions that the profit growth in the past few quarters should not be used as a long-term guidance. And it was a result of the mismatch between the business investment and financial reporting cycle.
我们已经多次沟通，过去几个季度的利润增长不应作为长期指导。这是由于业务投资与财务报告周期之间的不匹配所导致的。
In addition, our business is currently facing intense competition and shifting external factors, which will inevitably bring fluctuations to our business and also slow down our top line growth.
此外，我们的业务目前面临激烈的竞争和不断变化的外部因素，这不可避免地会给我们的业务带来波动，并减缓我们的收入增长。
We are now entering a new phase of a steady transformation towards high-quality development. And we need to invest patiently in the platform's long-term health. And to support a sustainable development of our platform ecosystem, we will invest substantial resources over the next 12 months to support high quality merchants. And looking ahead, our profitability may fluctuate in the short run, but directionally, it will gradually enter a downward trend.
我们现在正进入一个稳定转型向高质量发展的新阶段。我们需要耐心地投资于平台的长期健康。为了支持我们平台生态系统的可持续发展，我们将在接下来的 12 个月内投入大量资源以支持高质量的商家。展望未来，我们的盈利能力在短期内可能会波动，但从方向上看，它将逐渐进入下行趋势。
假，无论真假都是假。
And empowering and supporting merchants is crucial to building our high quality supply chain and also creating a robust platform ecosystem. Over the long run, this will start off a virtuous cycle for the platform. And therefore, we will remain committed to patient investments even though short-term profits will be affected.
支持和赋能商家对于建立我们高质量的供应链以及创建一个强大的平台生态系统至关重要。从长远来看，这将启动平台的良性循环。因此，我们将继续致力于耐心投资，即使短期利润会受到影响。
In terms of shareholder returns, the company is still in the investment phase, and we are facing intense competition on different fronts and also uncertainties from external factors. And therefore, our management team and I unanimously believe that it is not an appropriate time for share purchase -- for share repurchases or dividends. And in the foreseeable years ahead, we also do not see such a need. Thank you.
在股东回报方面，公司仍处于投资阶段，我们面临来自不同领域的激烈竞争以及外部因素带来的不确定性。因此，我们的管理团队和我一致认为，现在不是进行股票回购或分红的合适时机。在可预见的未来几年内，我们也看不到这样的需求。谢谢。
无论什么样的原因，这个做法是有个性的，不认同的可以卖掉股票。
Jiazhen Zhao 赵家珍
[Foreign Language] 请提供要翻译的文本
[Interpreted] Hi This is Zhao Jiazhen. Let me take your question on merchant ecosystem.
[解释] 嗨，我是赵佳珍。让我来回答你关于商户生态系统的问题。
Our platform is a mutually dependent community as merchants, consumers and our operations teams. Merchants are our key partners in our joint efforts to serve consumers.
我们的平台是一个相互依赖的社区，包括商家、消费者和我们的运营团队。商家是我们共同努力服务消费者的关键合作伙伴。
So the increased competition in our industry brings new demands on our community. In this process, we feel a strong sense of responsibility as a platform. On one side, we must ensure strict oversight of product quality to prevent substandard goods and protect consumer rights. On the other side, we must ensure fairness so that dedicated high quality merchants can earn meaningful rewards, which is essential for the healthy development of platform ecosystem.
因此，行业内竞争加剧对我们的社区提出了新的要求。在这个过程中，我们作为一个平台感到强烈的责任感。一方面，我们必须确保对产品质量进行严格监督，以防止劣质商品并保护消费者权益。另一方面，我们必须确保公平，以便专注于高质量的商家能够获得有意义的回报，这对平台生态的健康发展至关重要。
To achieve balance in the ecosystem, we have no choice but to firmly transition towards high quality development. Therefore, we will adopt the necessary policies to provide strong support to high quality merchants while tinkering low quality ones. On the supply side, we will strongly support merchants with product and technology innovation capabilities. We will significantly reduce transaction fees for these high quality merchants with an expected amount of RMB10 billion in the following years. We will continue to enhance incentives for the merchants to drive our high quality development of ecosystem.
为了实现生态系统的平衡，我们别无选择，只能坚定地向高质量发展转型。因此，我们将采取必要的政策，为高质量商家提供强有力的支持，同时对低质量商家进行调整。在供应方面，我们将大力支持具有产品和技术创新能力的商家。我们将大幅降低这些高质量商家的交易费用，预计在未来几年内减少 100 亿元人民币。我们将继续增强对商家的激励，以推动我们生态系统的高质量发展。
为什么会有？
On the other side, we will further enforce strong governance of our platform and merchants. This includes identifying and removing unlawful merchants from our platform to strengthen our supply chain. As of now, we have already started a new round of investment in operations and technology to optimize the merchant onboarding and product listing processes, use advanced technology to ensure strict product quality control and create a better environment for our high quality merchants.
另一方面，我们将进一步加强对平台和商家的强有力治理。这包括识别并移除我们平台上的非法商家，以加强我们的供应链。到目前为止，我们已经开始新一轮的运营和技术投资，以优化商家入驻和产品上架流程，利用先进技术确保严格的产品质量控制，并为我们的高质量商家创造更好的环境。
We grow together with our high quality merchant partners working together to offer consumers high quality products and services. The consumers can in turn bring new growth opportunities to the ecosystem, creating a virtuous cycle, which is the key to the long-term healthy development of our community.
我们与高质量的商家合作伙伴共同成长，致力于为消费者提供高质量的产品和服务。消费者反过来可以为生态系统带来新的增长机会，形成良性循环，这也是我们社区长期健康发展的关键。
To achieve the goal of high quality development of the merchant ecosystem, our management has reached the consensus to firmly commit to long-term investments and create a healthy, sustainable platform ecosystem. Thank you, all.
为了实现商户生态系统高质量发展的目标，我们的管理层达成共识，坚定承诺进行长期投资，创建一个健康、可持续的平台生态系统。谢谢大家。
Unidentified Company Representative
未识别的公司代表
Operator, let’s move on to the next analyst on the line.
操作员，我们继续下一个在线分析师。
Operator 操作符
Thank you. The next question is from Yang Bai from CICC. Please go ahead.
谢谢。下一个问题来自中金公司的杨白。请继续。
Yang Bai 杨白
[Foreign Language] 请提供要翻译的文本
[Interpreted] Thank you, management. I have two questions. The first one, we have observed that the growth of your global business remains strong. Some external data suggests that the growth rates and the investment in certain markets are slowing down. In your prepared remarks, we also noticed that the company takes a relatively cautious approach towards the future development of your global business. Is the company trying to manage some risks proactively? Could the management please elaborate on your thinking in this regard?
谢谢，管理层。我有两个问题。第一个，我们观察到你们的全球业务增长依然强劲。一些外部数据表明，某些市场的增长率和投资正在放缓。在你们准备的发言中，我们也注意到公司对全球业务未来发展的态度相对谨慎。公司是否在积极管理一些风险？管理层能否对此进行详细说明？
The second one is, we saw that the overall competitive environment is quite intense. Has it caused any impact on the company's growth? In such a competitive environment, how will the company adjust to your investment priorities and how does the management think about your positioning? Thank you.
第二个问题是，我们看到整体竞争环境相当激烈。这对公司的增长造成了什么影响吗？在如此竞争的环境中，公司将如何调整投资优先级，管理层对你的定位有什么看法？谢谢。
Lei Chen 雷晨
[Foreign Language] 请提供要翻译的文本
[Interpreted] Hi. This is Lei. Let me take your question on the global business.
嗨。这是雷。让我来回答你关于全球业务的问题。
Our global business is still evolving, and we are actively exploring new opportunities. Currently, our global business has entered over 70 markets. And during this call, we have always prioritized compliance and see it as the foundation for our development. And over the past few quarters, we have invested significant resources in building a safe shopping environment.
我们的全球业务仍在不断发展，我们正在积极探索新的机会。目前，我们的全球业务已进入 70 多个市场。在此次通话中，我们始终将合规性放在首位，并视其为我们发展的基础。在过去几个季度中，我们在建立安全购物环境方面投入了大量资源。
As our business develops, we have noticed that the changes in the external environment are accelerating. And our operations are increasingly affected by some non-business factors, and we are seeing a significant increase in uncertainty. And meanwhile, our competition is a constant theme in the e-commerce industry and is expected to intensify.
随着我们的业务发展，我们注意到外部环境的变化正在加速。我们的运营越来越受到一些非商业因素的影响，我们看到不确定性显著增加。同时，竞争在电子商务行业中始终是一个常态，并预计将加剧。
At this moment, such intense competition combined with the impact of external factors will inevitably lead to disruptions on our global business. But nevertheless, we remain committed to our vision of allowing more consumers worldwide to enjoy the benefits of the digital economy, and this has not changed.
在此时此刻，这种激烈的竞争加上外部因素的影响，必然会对我们的全球业务造成干扰。但尽管如此，我们仍然致力于我们的愿景，让更多全球消费者享受数字经济的好处，这一点没有改变。
And in response to the complex environment, we will focus on our core strength, and continuously improve our capabilities in supply chain, customer services and compliance to better meet the expectations of consumers around the world and also achieve high quality development in our global business. Thank you.
为了应对复杂的环境，我们将专注于我们的核心优势，不断提升在供应链、客户服务和合规方面的能力，以更好地满足全球消费者的期望，并实现我们全球业务的高质量发展。谢谢。
Jiazhen Zhao 赵家珍
[Foreign Language] 请提供要翻译的文本
[Interpreted] Hi This is Zhao Jiazhen. Let me take your question on competition.
[解释] 嗨，我是赵家珍。让我来回答你关于竞争的问题。
Over the past few quarters, the competition has been intensifying, which is natural to the e-commerce sector. In such a competitive environment, our revenue growth mix was down. For instance, in the second quarter, our revenue growth declined indicating that high revenue growth is not sustainable.
在过去几个季度，竞争加剧，这在电子商务行业中是很自然的。在这样一个竞争激烈的环境中，我们的收入增长组合下降了。例如，在第二季度，我们的收入增长下降，表明高收入增长并不可持续。
Currently, consumer demand is becoming more diversified and e-commerce platforms are actively adjusting their strategies to meet these evolving needs. Each platform has its own strength and competitive edge and commit substantial resources to cater to consumer demand. At this moment, we need to focus on our core strength and continue on our task to high quality environment.
目前，消费者需求正变得更加多样化，电子商务平台正在积极调整其策略以满足这些不断变化的需求。每个平台都有其自身的优势和竞争优势，并投入大量资源以满足消费者需求。在此时，我们需要专注于我们的核心优势，并继续致力于高质量的环境。
For e-commerce platform, a robust supply chain is essential to providing good services to consumers. To meet the diversified needs of consumers, we remain focused on the fundamentals and strive for innovation in the supply chain. In the second quarter, our teams continue to bring agricultural core initiatives to major production regions, helping local agricultural products to their brands and empowering small and medium-sized agricultural merchants through collective marketing efforts.
对于电子商务平台，强大的供应链对于向消费者提供良好的服务至关重要。为了满足消费者的多样化需求，我们始终专注于基础，努力在供应链中进行创新。在第二季度，我们的团队继续将农业核心举措带到主要生产地区，帮助当地农产品建立品牌，并通过集体营销努力赋能中小型农业商户。
Apart from agricultural products, we have expanded our support to the manufacturer through digitalization. By collaborating with high quality national brands and manufacturers, we have successfully launched tailored products for niche categories. This brand and merchants have achieved higher quality developments through continuous technological updates and product innovation.
除了农业产品，我们通过数字化扩大了对制造商的支持。通过与高质量的国家品牌和制造商合作，我们成功推出了针对细分市场的定制产品。该品牌和商家通过持续的技术更新和产品创新，实现了更高质量的发展。
We will strongly encourage and support high quality merchants who are dedicated to their business and innovation. In addition to the significant reduction in transaction fees that we plan to offer, we will continue to leverage our platform supply chain capabilities to help merchants improve quality and efficiency and guide manufacture towards innovative and high quality developments.
我们将大力鼓励和支持致力于业务和创新的高质量商家。除了我们计划提供的显著降低交易费用外，我们还将继续利用我们的平台供应链能力，帮助商家提高质量和效率，并引导制造朝着创新和高质量的发展。
We fully understand that only by optimizing and upgrading the supply chain is essential to meeting deeper consumer needs and ensuring the long term healthy growth of our platform ecosystem. We are committed to making long term and patient investments. Thank you, all.
我们完全理解，只有通过优化和升级供应链，才能满足更深层次的消费者需求，并确保我们平台生态系统的长期健康增长。我们致力于进行长期和耐心的投资。谢谢大家。
Lei Chen 雷晨
Thank you, Jiazhen, and thank you all for joining us today. We look forward to speaking with you again next quarter and thank you. Have a nice day.
谢谢你，佳珍，也谢谢大家今天的参与。我们期待在下个季度再次与您交谈，谢谢。祝您有美好的一天。
Operator 操作符
Thank you. Ladies and gentlemen, that does conclude our conference for today. Thank you for participating. You may all now disconnect.
谢谢。女士们，先生们，今天的会议到此结束。感谢您的参与。您们现在可以断开连接。
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