Financial Data and Key Metrics Changes - The company reported total revenues of RMB 108.3 billion for Q3 2025, representing a 9% year-over-year increase, driven by growth in online marketing services and transaction services [26] - Operating profit for the quarter was RMB 25 billion, compared to RMB 24.3 billion in the same quarter last year, while non-GAAP operating profit was RMB 27.1 billion, down from RMB 28 billion year-over-year [28][29] - Net income attributable to ordinary shareholders was RMB 29.3 billion, up from RMB 25 billion in the same quarter last year, with diluted earnings per ADS increasing to RMB 19.7 from RMB 16.91 [29] Business Line Data and Key Metrics Changes - Revenues from online marketing services were RMB 53.3 billion, up 8% year-over-year, while transaction services revenues were RMB 54.9 billion, up 10% from the same quarter last year [26] - Total costs of revenues increased 18% to RMB 46.8 billion, primarily due to higher fulfillment fees, bandwidth, server costs, and payment processing fees [27] Market Data and Key Metrics Changes - The company observed a 47% year-over-year growth in agriculture sales, with a notable increase in the number of agriculture merchants, particularly those born in the 2000s, which grew over 30% year-over-year [19] - The number of merchants aged 25 to 30 grew by 31% year-over-year, and high-quality SKUs increased by over 50% year-over-year, indicating a shift towards high-quality development in key industrial belts [23] Company Strategy and Development Direction - The company aims to prioritize long-term value creation over short-term results, focusing on high-quality growth and enhancing core capabilities to better serve consumers and merchants [4][37] - Strategic initiatives such as the 100 billion support program and the Duoduo Premium Produce campaign are designed to support merchants and drive industry upgrades [10][44] - The company is committed to adapting to regulatory changes and enhancing compliance to ensure sustainable development in global markets [41][42] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the intense competition in the e-commerce sector and emphasized the need for continuous investment in the platform ecosystem to foster long-term growth [15][40] - The company expects financial performance to fluctuate in the coming quarters due to ongoing investments and a complex global environment [11][47] Other Important Information - The company has made significant investments in R&D, reaching RMB 3.7 billion, reflecting a commitment to improving core technology capabilities [28] - The company has established a Merchant Protection Committee to enhance communication and support for merchants [35] Q&A Session Summary Question: Industry trends and PDD's online marketing service revenue slowdown - Management noted that the e-commerce sector is evolving rapidly, and competition is unavoidable, focusing on creating unique value for consumers and merchants [34][35] Question: Regulatory scrutiny in global operations - Management emphasized the importance of integrating with local regulations and enhancing compliance to ensure sustainable development in each market [41][42] Question: Investment in the merchant ecosystem - Management highlighted ongoing investments in merchant support initiatives and the positive feedback received from these ecosystem investments [45][46] Question: Upcoming investment pace and profitability level - Management indicated that increased investments in the platform ecosystem may challenge revenue and profit, but the focus remains on long-term strategic goals [47][48]