Core Viewpoint - Pinduoduo's revenue growth has slightly slowed in Q2, but effective control of marketing expenses has significantly narrowed the decline in net profit, with Non-GAAP net profit decreasing by only 5% to 32.71 billion RMB, far exceeding market expectations of 22.39 billion RMB [1][10][11] Financial Performance - Total revenue reached 103.98 billion RMB (approximately 14.35 billion USD), reflecting a year-on-year growth of 7%, which aligns closely with market expectations [6][8] - Operating profit was 25.79 billion RMB, a decrease of 21% year-on-year, while net profit was 30.75 billion RMB, down 4% year-on-year [6][10] - Non-GAAP adjusted earnings per ADS were 22.07 RMB, surpassing the market forecast of 15.50 RMB [6][10] - Operating cash flow dropped significantly to 21.64 billion RMB, a decline of 51% compared to the same period last year [6][14] Revenue Composition - Online marketing revenue was 55.7 billion RMB, showing a strong year-on-year growth of 13%, indicating improved advertising monetization capabilities [6][9] - Transaction service revenue was 48.3 billion RMB, remaining flat compared to the previous year, reflecting pressure on GMV growth [6][9] Cost and Expenses - Total operating expenses increased by 36% to 45.86 billion RMB, primarily due to rising fulfillment costs, bandwidth server costs, and payment processing fees [12][13] - Sales and marketing expenses were 27.21 billion RMB, growing by 4.5%, a significant slowdown from the 43% growth in the previous quarter [6][13] Strategic Initiatives - Pinduoduo has launched a "trillion support" strategy, which includes substantial merchant support measures, marking a significant investment in the ecosystem [15][16] - The company is betting on long-term value by increasing support for merchants, which poses a challenge for short-term performance [3][17]