Core Viewpoint - The company firmly opposes the trend of "involution" in competition and aims to defend its market position despite intensified competition, focusing on fundamental aspects such as reliable delivery and affordable pricing [1][5][24]. Financial Performance - In Q2, the company's adjusted net profit dropped nearly 90% year-on-year, significantly below market expectations, due to fierce competition [3][20]. - Revenue increased by 11.7% year-on-year, reaching 91.81 billion RMB, with core local business revenue growing by 7.7% to 65.3 billion RMB [19][21]. Business Strategy - The company is restructuring its fresh food business by significantly reducing the scale of Meituan Youxuan and fully investing in Xiaoxiang Supermarket, aiming to cover all first- and second-tier cities [1][41][42]. - The company plans to expand its overseas business, with Keeta entering Qatar and setting a ten-year GMV target of 100 billion USD, while remaining patient about growth [1][5][45]. Market Position and User Engagement - The company reported over 600 million monthly active users, with a record high in transaction frequency, indicating its growing preference among consumers for local service platforms [7][8]. - The company is focused on enhancing user loyalty and attracting new users through high-quality, cost-effective products and reliable service experiences [8][12]. Competitive Landscape - The management anticipates that intense competition will persist in the short term, negatively impacting financial results, but emphasizes the resilience of its core local business [4][24]. - The company is committed to maintaining its competitive edge by focusing on operational efficiency and enhancing service quality, despite the challenges posed by high subsidy levels in the industry [20][29]. Future Outlook - The company expresses confidence in its ability to achieve long-term healthy growth, despite short-term fluctuations and competitive pressures [24][31]. - The company aims to leverage its operational advantages and continue investing in its ecosystem to foster sustainable growth and enhance consumer experience [17][29].

Core Viewpoint - Pinduoduo's net profit declined in Q2 due to intense competition in the e-commerce sector and increased support for merchants, but results were significantly better than market expectations. The management emphasized a commitment to long-term value creation over short-term profits [1][4]. Financial Performance - In Q2, Pinduoduo achieved revenue of $37 billion, representing a year-on-year growth of 10% [8]. - Operating profit decreased by 21% year-on-year, reflecting the impact of substantial investments in merchant support and ecosystem development [4]. Strategic Initiatives - The company launched the "100 Billion Support Plan," which involves significant resource allocation to support the merchant ecosystem and explore new business models globally [4][5]. - Pinduoduo's initiatives have led to a 40% increase in order volume for remote areas, enhancing the quality of life for consumers in those regions [4]. Long-term Focus - Management reiterated the importance of long-term investments in ecosystem building and consumer experience, indicating that profitability may fluctuate as a result of these strategies [6][9]. - The company is prioritizing high-quality growth and is willing to sacrifice short-term profits for sustainable development [1][6].