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 GlobeNewswire services. Before we begin, I would like to refer you to our safe harbor statement in the 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 Cen 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 walk us through our financial results for the second quarter ended June 30, 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 purposes only. In case of any discrepancy between the original remarks and the translated version, statements in the regional 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 earnings call for the second quarter of 2023. I will start by giving a brief overview of our second quarter results. We achieved a total of RMB52.3 billion in revenue this quarter, representing a 66% year-on-year increase. This reflects the growing trust that consumers place in our products and services. During the past quarter, we observed a continued improvement in consumer sentiment, resulting in increasing consumer demand across multiple product categories. We also actively launched various promotional initiatives that boosted consumer demand. For instance, we supported the June 18 shopping festival with attractive promotions and discount coupons to encourage spending. The response from consumers was positive. Recognizing this trend, we remain devoted to connecting products directly with consumers so that they can enjoy a wide range of quality products at attractive value with great service satisfaction. Since the start of 2023, our main focus has been high-quality development. The results from this quarter offer concrete evidence that our strategy is starting to bear fruit. This gives us more confidence that we are on the right path and that our investments are laying the foundation for continued quality growth. A cornerstone for achieving high-quality growth is our commitment to research and development, which is the lifeblood of innovation. Over the past 12 months, our R&D expenditure exceeded RMB10 billion with Q2's R&D spending hitting a new high, reflecting our dedication to investing in the future. We will continue to increase our investments in R&D as innovation represents the future engine of growth for the company. As a company with its growth in agriculture, we have been firsthand witnesses to how technology can transform and drive farming practices through technological advancement. We have optimized the matching of demand and supply, helping farmers to sell their products and consumers to get fresher produce. A key driving force behind our emphasis on agriculture is our belief in the social impact of innovation. This has motivated us to support talent cultivation, promote the adoption of practical and cost-effective technology, and transform scientific research into tangible commercially viable solutions. For the past three years, our annual Smart Agriculture Competition has been a platform to advance precision farming. We partnered with leading agronomic institutes, including China Agriculture University, Zhejiang University, FAO China, and the Shanghai Academy of Agricultural Sciences. The latest iteration involves the use of compact spaces like shipping containers for vertical farming, aspiring teams challenge themselves to come up with cost-effective ways to grow and market high-quality produce. With our help, many teams have turned the innovation into real-time applications. For example, a pioneering team from our inaugural competition deployed 40 cutting-edge systems in empowering farmers to boost their yield by 30%. We achieved this while at the same time reducing overhead costs related to labor, fertilizer, and plant protection. A team from this year's event is in the process of utilizing the algorithm that moderates nutrient combinations with the aim to make it easy for more people to use. Our diverse projects aim to bridge the gap between research and real-world application. We have supported the creation of many agritech demonstration hubs. These centers of excellence serve as fertile ground to combine academic learning with hands-on experience. By giving scientists the platform to validate their research in real-world conditions, we envisage accelerating the digital transformation of agriculture to benefit society collectively. We also strive to help push the boundary of agritech through our support for fundamental research. In May, to further accelerate the pace of innovation, we made a donation of RMB100 million to China Agriculture University. As a part of our RMB10 billion agriculture initiative, this contribution established a dedicated research fund aimed at addressing critical needs in agriculture. Additionally, we have partnered with FAO China to start a three-year research program that focuses on four key themes: agriculture modernization, precision farming, sustainability, and health nutrition. Here, I'm happy to announce the appointment of Professor Ivonne Rietjens as a director to the PDD Board. Professor Rietjens, with a longstanding tenure since 2001 as a professor at Wageningen University, currently serves as the head of the toxicology department and is a well-respected expert in food tech research. Her expertise in food safety will no doubt be a huge support to our Agritech initiatives. With her on board, our Board of Directors now has seven members, and the majority are independent directors. Those appointments not only enhance our Board's expertise but also add to its diversity. In addition, to strengthen our global footprint and operations, we will set up a legal and compliance committee to manage overseas legal and compliance matters given the complexity and different requirements of each region. I will chair this committee, which will replace the general counsel role at the function. As we stated in our IPO letter, PDD is still a young organization that will continue to adapt as it strives to be a mature global institution. During this journey, our goals remain the same. We will continue to champion innovation, nurture emerging talents, and constantly seek to bring on the best people to guide us towards our goal of seeking quality development. And now I will hand over to our Co-CEO, Jiazhen, who will go into more detail about our quality development.

Thank you, Lei. Hello, everybody. This is Jiazhen. In Q2, with various pro-consumption policies, we observed a clear trend of improvement in consumer sentiment. To support consumption during this year's June 18 promotion, we increased our efforts. We received positive responses and saw a further increase in consumer demand on the Pinduoduo platform. Riding on the encouraging industry trend, we proactively seized the opportunity to fully embrace high-quality development. Our strategy includes the following aspects. First, high-quality consumption to meet consumers' continuously growing demand for quality, we strive to better serve consumers with more savings, better services, and upgraded consumer protection. Second, high-quality supply. We go deep into the industrial and agriculture production areas, leverage our tech capabilities to support digital transformation, and bring more quality products to the national and global markets; third, high-quality ecosystem. We showed our social responsibilities and further refined our platform governance capability by supporting quality merchants with our RMB10 billion ecosystem initiative. We promote a virtuous cycle that accelerates the upgrade of our platform ecosystem. We are fully aware that high-quality development requires patient investment. Over the past quarter, we have seen some encouraging early results from our efforts in giving back to consumers, supporting quality merchants, and enhancing our platform ecosystem. Our business also delivered decent growth. Now let me walk you through some specific measures that my team and I are actively implementing under our high-quality development strategy. First, for high-quality consumption, we are working hard to deepen savings and improve services so that we can provide a good experience. This improves consumer trust in our platform, which in turn stimulates spending. In Q2, we continued to promote a wide range of merchandise that consumers prefer. During this year's June 18 promotion, we increased efforts to give back to consumers. The promotions cover a full range of product categories, including electronics, cosmetics, fresh produce, as well as apparel. This stimulated full-category consumption demand. In addition to solidifying more savings, we continue to provide better services, which increased consumer trust in our platform. For example, during June 18, we upgraded logistics and aftersales services, such as price protection, 10 times compensation for counteract, and door-to-door delivery. These measures ensure that consumers can buy with confidence and return with ease. We also cooperate with established insurance companies and brands to offer quality guarantee insurance, which covers situations such as inaccurate product descriptions or product quality issues. After the June 18 promotion, we remain focused on adjusting fundamental consumer needs and continued with our every day's June 18 approach. We provided quality products and services at good prices, unleashing demand potential to support new product categories. As our platform continues to gain trust and recognition, we are delighted to see that a growing number of brands across multiple categories have started to cooperate with Pinduoduo as the primary channel to reach consumers. Another crucial aspect of high-quality development is the co-development and integration of the digital economy and traditional industries so that more quality products can reach the national and global markets. This is what we call high-quality supply. It is deeply rooted in agriculture, and it will continue to be a focal point in our pursuit of high-quality development as we bring more agri-produce to market. Innovation is key to enhancing quality and creating added value, so it is crucial to meet consumers' growing demand for high-quality, safe, and healthy agricultural produce through innovation and the adoption of Agritech. In Q2, we launched the third smart agriculture competition and a second Pinduoduo Crop Growing competition. Through this initiative, we are actively engaged in agritech innovation and support technology adoption in agriculture. Our vision is to further improve the quality and efficiency of agricultural production through technology. At the same time, we are stepping up our support for products enabled by Agritech on our platform to accelerate our research funding translating into products. Furthermore, we are driving the digital transformation of manufacturing with new tools and new models, leveraging our consumer insights and tech capabilities to help manufacturers understand evolving consumer demand and improve production efficiency. Last quarter, our team went into industrial belts and launched a series of live-streaming events to showcase the broad selection of local products to consumers. This helps consumers learn about the products tangibly and enhance their trust in online shopping. We are also deep in collaboration with merchants in areas such as product design and marketing so they can better meet diverse consumer needs. This is welcomed by many merchants. For example, we recently partnered with a well-known liquor brand. Together, we experimented with an online plus offline approach, which has offline pop-up shops. This format led to record-breaking sales on our platform and enabled the brand to reach young consumers effectively and obtain valuable consumer insights. A high-quality ecosystem is the foundation that nurtures the sustainable and mutually beneficial growth of the platform and all its participants. Last quarter, we launched a RMB10 billion Ecosystem Initiative to support quality merchants and products. This initiative provides incentives for SME merchants and quality merchants to upgrade their service offerings, thereby creating a robust environment to drive up efficiency and service quality of the entire ecosystem. We also made significant efforts in platform governance areas such as food and drug safety, model protection, and live streaming compliance. We hope to accelerate the positive momentum in platform ecosystem with both the RMB10 billion Ecosystem Initiative and our platform governance efforts. For example, we collaborated with major publishing houses and book brands to launch the fifth initiative. We continue to invest hundreds of millions of RMB in coupons in an effort to promote a sustainable online authentic book market and strengthen IP protection. Our efforts covered 6 million copies of best-selling books, connecting quality content directly with consumers. As of today, over 2,700 publishing houses, food companies, and distributors have joined the Pinduoduo platform. Throughout our journey to high-quality development, we are always looking for opportunities to demonstrate more social responsibility and create value for society. Earlier this month, the Henan region was hit by severe rainfall. In response, we donated RMB30 million to support the flood relief efforts. At the same time, in partnership with People Sale, we launched a dedicated relief campaign to help businesses in the affected regions reduce losses from production disruptions and inventory damage and help them get back to normal operations quickly. Furthermore, to help book merchants in Georgia, we set up a dedicated book-selling channel and provided relief measures such as traffic support and a zero commission policy to help these merchants reduce losses and resume normal operations. We are well aware that our value creation is inseparable from our long-term strategy of high-quality development. Our focus on high-quality development and ecosystem not only lays a solid foundation for the future but also earns immediate policy feedback from consumers and merchants. Looking forward, we will continue to support quality merchants and SMEs and promote digital inclusion in agriculture. We will keep doing the right things and maintain our investments in key areas to speed up our progress towards high-quality development. Now I'll hand it over to Jun. She will provide you with an update on our financial performance.

Thank you, Jiazhen. Hello, everyone. Let me walk you through our financial performance for the second quarter ended June 30, 2023. In terms of the income statement, in the second quarter, our total revenues increased 66% year-over-year to RMB52.3 billion. Our top-line growth was mainly driven by consumption recovery and the early feedback from executing our high-quality development strategy. Revenues from online marketing services and others totaled RMB37.9 billion this quarter, up 60% from the same quarter of 2022. Revenues from transaction services this quarter were RMB14.3 billion, up 131% from the same quarter of 2022. Moving on to hosting expenses. Our total cost of revenues increased 135% from RMB8 billion in Q2 2022 to RMB18.7 billion this quarter, mainly due to an increase in fulfillment fees and payment processing fees. On a GAAP basis, total operating expenses this quarter increased 41% to RMB20.9 billion from RMB14.8 billion in the same quarter of 2022. On a non-GAAP basis, our total operating expenses increased to RMB19 billion this quarter from RMB12.9 billion in Q2 2022. In the past quarter, we seized the opportunities of favorable consumption trends by investing reasonably to support our long-term high-quality development. Our total non-GAAP operating expenses as a percentage of total revenue this quarter was 36% compared to 41% in the same quarter last year. Looking into specific expense items, our non-GAAP sales and marketing expenses this quarter were RMB16.6 billion, up 53% compared to the same quarter last year. On a non-GAAP basis, our sales and marketing expenses as a percentage of our revenue this quarter was 32% compared with 34% for the same quarter in 2022. In Q2, we stepped up efforts during the June 18 shopping festival and throughout the entire quarter to provide more savings to consumers. We also improved our service quality to deliver better services and support consumption. Our non-GAAP general administrative expenses were RMB370.2 million versus RMB164.7 million in the same quarter of 2022. Our research and development expenses were RMB2.1 billion this quarter on a non-GAAP basis and RMB2.7 billion on a GAAP basis, setting a new high. R&D is fundamental to the high-quality development of our platform ecosystem. We will continue to grow our R&D capabilities so that we can understand consumer moving demand and serve them better. Operating profit for the quarter was RMB12.7 billion on a GAAP basis compared with RMB8.7 billion in the same quarter last year. Non-GAAP operating profit was RMB14.6 billion versus RMB10.5 billion in the same quarter last year. Non-GAAP operating profit margin was 28% this quarter, compared with 34% for the same quarter last year. Net income attributable to ordinary shareholders was RMB13.1 billion for the quarter, compared to RMB8.9 billion in the same quarter last year. Basic earnings per ADS was RMB9.64 and diluted earnings per ADS was RMB9, compared to a base earnings per ADS of RMB7.06 and diluted earnings per ADS of RMB6.23 in the same quarter of 2022. Non-GAAP net income attributable to ordinary shareholders was RMB15.3 billion compared with RMB10.8 billion in the same quarter last year. Non-GAAP diluted earnings per ADS was RMB10.47 versus RMB7.54 in the second quarter of 2022. To sum up, over the past quarter, we delivered solid financial results, and high-quality development began to show impact. Looking ahead, we will continue to invest with determination and patience to execute our high-quality development strategy. We also react positively to competition by keeping our more savings and better services capabilities. That completes the income statement. Now let me move on to cash flow. Our net cash flow generated from operating activities was RMB23.4 billion, compared with RMB19.4 billion in the same quarter last year. As of June 30, 2023, we have RMB179.5 billion in cash, cash equivalents, and short-term investments.

Thank you, Jun. Next, we will move on to the Q&A session. During today's Q&A session, Lei, Jiazhen, and Jun will take questions from analysts on the line. We could take a maximum of two questions from analysts; Lei and Jiazhen will answer questions in Chinese, and we will help translate the remarks for easier reference. Operator, we may now take questions on the line.

Your first question will come from Joyce Ju of Bank of America. Please go ahead.

My first question is, we note Pinduoduo has started a new long-term strategy of focusing on high-quality growth since last quarter. Could you elaborate a bit more on the implementation of this strategy? What business measures and movements have been taken, and how is this strategy going to affect the company's financial outlook in the near and longer term? My second question is that we understand agriculture has been Pinduoduo's key strategy for a very long time, and it is also a core merchandise category for the platform. How does this strategy fit under the company's new strategy of high-quality development? What impact will it have on the company's operations and financials? Will the company adjust your investment budget and pace in the corresponding areas?

Hi, this is Jiazhen. I'll answer your question on our high-quality development strategy. Over the past few years, we gradually transitioned from fast growth to solid development, from marketing-driven to R&D-driven. Starting from the first half of this year, we fully embraced the high-quality development strategy which marks a new development phase for us that prioritizes quality. We are in the development stage, and there are still many areas to improve regarding consumer satisfaction, as well as building a driving ecosystem. Strengthening our capability and embracing high-quality development is a necessary path to take to further deepen our value. As I have mentioned earlier, implementing this strategy mainly involves three core areas. First is high-quality consumption. We are always consumer-centric. We work hard to strengthen our capability to provide more savings and better services so that we can deliver a comprehensive good experience to consumers and meet their diversified demand. The second is high-quality supply. We leverage our tech expertise, and we delve deep into the supply chains. We promote digital inclusion in manufacturing and agriculture sectors, and we hope to connect more quality products directly to both the national and global markets. Third is a high-quality ecosystem. With our RMB10 billion Ecosystem Initiative, we actively support quality merchants, SME businesses, and farmers, whilst enhancing our platform governance. For the foreseeable future, Lei and I will lead our team together to invest persistently and patiently in these areas. We strive to enhance consumer experience, optimize the efficiency of the agriculture and manufacturing supply chains, and reinforce the positive trend of our platform ecosystem and execute our high-quality development strategy in the details of our operations.

This is Lei. I will take your question on the agriculture strategy. Pinduoduo started out in agriculture, and our development is deeply connected with this agricultural supply chain. We are proactively leveraging our tech background to promote digital inclusion in agriculture. The penetration of agricultural produce remains relatively low, and there is a lot of room to streamline the agricultural supply chain. We can create our unique value by using our tech capabilities to facilitate the development of agriculture. Going forward, agriculture will continue to be a major focus for us. Recently, we continued our efforts in bringing together industry and academia. We hosted several agricultural competitions, such as the Smart Agriculture Competition and the Pinduoduo Crop Growing Competition. We are happy to see our contribution to the commercialization of research funding. As I mentioned, we are pleased to welcome Professor Ivonne Rietjens to join our Board as an Independent Director. She has been a tenured professor at Wageningen University since 2001, and she currently serves as the Head of the Toxicology Department. The Netherlands is an agricultural powerhouse, and Wageningen University is a globally renowned institution in agronomic research. Ivonne has decades of experience in food safety. She will bring deep expertise in food technology and cutting-edge Agritech research trends to our Board. With Ivonne on board, we look forward to deepening our contribution to the modernization of agriculture. Thank you.

Operator, we can move to the next analyst on the line.

Our next question today will come from Yang Bai of CICC. Please go ahead.

I have two questions on financials. We note total revenue growth of 66% and the online marketing service growth of 50%. What do you think contributed to that highlight in the past quarter? And do you think this momentum will continue into the second half of the year? My second question is that we noticed your profit margin decreased slightly year-on-year. What are some of the key areas you are putting resources into? And how should we understand the fluctuation of your profit margin as industry competition has further intensified?

This is Jiazhen. I'll take the question on the growth rate first. In short, the growth this quarter can be attributed to two factors. The first is the positive industry trends, and the second is the early positive feedback towards our high-quality development strategy. Our business is closely tied to the overall consumption market. We noticed continued improvement in market trends, as well as consumers becoming increasingly willing to shop. We think this is inseparable from the introduction and implementation of various pro-consumption support measures. In Q2, we seized opportunities to enhance our capability to provide more savings and better services. We expanded our valuable product choices and executed our high-quality development strategy with determination. For example, during the June 18 event, we increased promotions and invested billions in coupons to give back to consumers. This helped stimulate demand across all merchandise categories. Beyond this promotional event, we also follow through with our concept of every day being a June 18, providing consumers with ongoing savings. Our efforts improved consumption sentiment, generating more sales opportunities for merchants. Additionally, our support for quality merchants encouraged them to invest resources and collaborate with us to serve customers effectively together. Thus, we recorded decent revenue growth. We believe that revenue is a natural result of our value creation and that high-quality development is our long-term strategy. We do not prioritize growth over a single quarter. If we can better serve diverse consumer needs with enhanced services and better savings, and if we can build a robust ecosystem, our platform will naturally achieve sustainable high-quality development.

This is Jun. Thanks. Let me take your second question. Well, first, we are still in the development phase. Profitability itself is not our priority. As Jiazhen just mentioned, it's a natural result of the value we create. So, with that said, in Q2, we saw different financial results showing the early outcomes from our high-quality development strategy. And in this process of executing our high-quality development strategy, we are stepping up investment in many key investment areas. For example, giving back to consumers, supporting SME merchants, investing in cultural and manufacturing supply chains, and the RMB10 billion Ecosystem Initiative. These efforts reflect in our financial results. Also, as competition further intensifies, we will react positively by enhancing our core savings and better service capabilities, while continuing to give back to our consumers and merchants. Whenever we see opportunities to create long-term value, we will continue to exercise financial prudence and invest with determination.

Operator, I think we have time for one more analyst.

Our next question will come from Ellie Jiang of Macquarie. Please go ahead.

My first question is on the competition. We see that many competitors are putting more emphasis on promotions and low pricing categories. We are also seeing relatively strong active buyer and merchant data from the peers. How does management evaluate the impact on our operations? Are we feeling more pressure, and will that potentially impact our strategy going forward? The second question is about Temu. We have been following Temu closely in recent periods. We understand that this is still an early stage and may have limited financial contribution. However, I wonder if management could share the latest progress of Temu and discuss the overall strategy and any financial metrics that can be shared?

Hi, this is Jiazhen. Thanks for the questions. I'll share some thoughts on the competition first. We noticed changes in the industry. As consumption recovers and consumers show stranded demand, it is not surprising for us to see peers ramping up on subsidies. Competition is indeed becoming more intense. We believe that healthy competition, driven by consumer-centric goals, can benefit the industry, which includes not only the consumers but also the platforms as well. The e-commerce industry is always rapidly evolving. For us, the key to adapting to rapid changes is not to focus on what our competitors are doing. Instead, it is critical to stay laser-focused on consumer demand and sharpen our own skills to face competition directly and effectively. We channel competitive pressure into more motivation to strengthen our core competencies and implement our high-quality development strategy. Serving consumers well is at the core of our value creation. We are deepening our capabilities in providing more services and savings which remain crucial to us. Last quarter, we invested significantly in promoting our generating capabilities to encompass all product categories to ensure consumers have access to quality products at accessible prices. Positive consumer experience requires a comprehensive effort. It is not just about price; we continue to focus on R&D to understand and adapt to consumers' evolving needs to help them shop confidently. We also work hard to provide better services, which include, for example, upgrading logistics and after-sales support. High-quality supply is essential in delivering value-for-money products. We are promoting digital transformation in agriculture and manufacturing. Our team is active in the field and in factories to help farmers and SME manufacturers standardize and improve their design, production, and logistics processes. With our RMB10 billion Ecosystem Initiative, we provide support to quality merchants and products, incentivizing them to enhance product and service quality. This, in turn, promotes a healthy and high-quality development of our platform ecosystem. We received positive feedback from these efforts, which bolsters our confidence to continue on this path of high-quality development. Our strategy is very clear, but executing it well is challenging. It actually requires a long-term commitment, and we will need to do the right things diligently. We will continue to stick to our commitments, improve ourselves in the face of competition, and create greater value.

Thanks for your questions. Let me address your second question on Temu. For our global initiative, Temu is currently in a learning stage. Our key focus right now is on how we can apply our expertise to create unique value. We are not focusing on metrics or other financial indicators at this stage. We hope to leverage our tech background and supply chain know-how to bring quality products at good prices to consumers in various global markets. This presents us with both challenges and learning opportunities. Currently, our team is concentrating on understanding and adapting to different cultural preferences, social environments, and consumer demands in various markets, aiming to create more unique value. As we continue to understand and explore consumer demand from different markets, we carefully evaluate investment opportunities and make responsible capital allocation decisions.

Thank you, everybody, for joining us on the conference call today. It's about time. Thank you, and have a great day.

The conference has now concluded. We do thank you for attending the presentation today. You may now disconnect.