Pinduoduo Inc. (NASDAQ:PDD) Q4 2022 Earnings Call Transcript

Chen Lei: Hi Yang. So, let me take your question on our Duo Duo Grocery business. Pinduoduo started by selling agricultural products and agriculture is one of our key long-term strategies. Through our Duo Duo Grocery business, we leverage technology to improve agricultural distribution efficiency and match local supply and demand effectively. This business plays a very critical role of leveraging our unique positioning in agriculture and creating our own unique value. And in our Duo Duo Grocery business, we have a swing the value that we can generate by improving supply chain efficiency in areas such as offering more choices of local produce, increasing fulfillment, efficiency and improving user experience. At the same time, the Duo Duo Grocery business also creates positive social values.

Let me give you a recent example here, that in the fourth quarter, we launched our dedicated campaign to help sales through seasonal unsold agricultural products to consumers directly. And the local teams of Duo Duo Grocery went upstream into the agricultural production region to sell agricultural produce directly and match these products efficiently with local demand. We are still in the early stage in our agricultural investments. And we see a lot of areas that can be further improved with technology. So, for Duo Duo grocery, we are still far away from the best level of services, and there are still a lot to improve. As a result, we will remain down to earth and continue to make long-term investments in order to further create values for our consumers.

Thank you.

Liu Jun: This is Jun Liu. Let me take your question on Duo Duo profitability. And well, we are in our development stage. We introduced in many areas to improve and create more value for users. We will continue to step up investment in the key areas to strengthen our R&D capabilities, support agriculture and manufacturing through technology and improve our service offerings to users. And profitability is not our current priority. With that said we will always practice financial prudence for every investment, we carefully evaluate ERI and ask ourselves if we can create long-term high quality development for us. We seek good opportunities where we invest currently. Thank you.

Chen Pang: Okay. Thank you everybody for joining us on our conference call today. That concludes the call and have a great day.

Operator: Ladies and gentlemen, that does conclude our conference for today. Thank you all for participating. You may now disconnect.