Q1: How is Pinduoduo responding to macro policy changes and external pressures, particularly regarding tariffs?

- Proactive Approach: PDD is taking proactive actions while strictly complying with regulations. The company is leveraging its long-term investments in supply chain capabilities and operational know-how.
- Merchant Support: Recognizing merchants' struggles with policy changes, PDD has launched the 100 billion yuan support program to assist small and medium-sized merchants in stabilizing sales and lowering costs.
- Global Strategy: In international markets, PDD is strengthening local operations and helping more local merchants grow on the platform, enabling more orders to be fulfilled locally.

Q2: Can management elaborate on the factors contributing to the profit decline and future expectations?

- Revenue Slowdown: PDD's revenue growth has slowed significantly due to business scaling, intensifying competition, and external uncertainties.
- Ecosystem Investment: Continuous investments in the ecosystem, coupled with slowing revenue growth, resulted in a significant drop in profits.
- Long-term Focus: PDD views these expenses as long-term investments. While profitability may face challenges in the near term and potentially over a longer period, the company remains focused on long-term value creation.

Q3: How will the 100 billion yuan support program be implemented, and what is its long-term impact?

- Comprehensive Support: The program involves increased investments on both supply and demand sides, expanding support from top-tier to small and medium-sized merchants.
- Supply-side Initiatives: More industrial belts will receive support, and high-quality merchant programs will extend to smaller businesses.
- Demand-side Measures: New subsidy policies have been implemented, including a 10 billion yuan merchant giveback program and enhanced direct discounts across multiple categories.

Q4: How is Pinduoduo addressing its disadvantages in benefiting from macro policy initiatives compared to first-party platforms?

- Resource Allocation: PDD is leveraging internal resources and increasing investments to help small and medium-sized merchants maintain competitiveness.
- Subsidy Programs: The company has launched a dedicated national subsidy program page and expanded subsidies to various product categories, including daily necessities.
- Price Matching: PDD is benchmarking prices against the national subsidy program and providing additional discounts to consumers.

Q5: How does management view the current competitive landscape and Pinduoduo's long-term positioning as a third-party platform?

- Merchant-Centric Approach: PDD emphasizes that the platform is an aggregation of merchants, and its development is closely tied to the prosperity of its merchant ecosystem.
- Adapting to Challenges: In the current environment of intensifying competition and rapidly changing policies, PDD is focusing on supporting merchants with limited risk resistance capabilities.
- Long-term Strategy: While these support measures may impact short-term profitability, PDD believes they are necessary for building a healthy, sustainable ecosystem and achieving high-quality development in the long run.

Q6: Can management share insights on current consumption trends and performance during the ongoing 618 shopping festival?

(Note: The transcript does not include a direct answer to this question about the 618 shopping festival performance. It appears the call may have ended before addressing this part.)

Disclaimer: This earnings call summary is generated by AI and is for informational purposes only. Due to technical limitations, inaccuracies may exist. It does not constitute investment advice or commitments.