CEO Lei Chen “Our annual active buyers increased 57 million in Q4 to reach 788 million for the trailing 12 month. User engagement has also accelerated. Our MAU increase to say 720 million. Total number of orders placed on our platform increased by 94% to reach 38.3 billion in 2020. Total revenues excluding revenues from merchandise sales for Q4 was RMB 21.2 billion or an increase of 96% from a year ago. Non-GAAP operating loss narrowed in Q4 for the same quarter a year ago.”

Not only does Pinduoduo continue focusing on mobile platform, but also “more for agriculture sectors and rural communities. Pinduoduo started off by selling fresh produce online. It was a conscious decision because we found them to be a necessity, optimizing their production, distribution and consumption would bring the greatest widespread benefit.”

agriculture has consistently being a strategic priority for us. We are proud to be China’s largest agriculture platform. Our GMV for agricultural products doubled to more than RMB 270 billion in 2020. 12 million farmers sold their produce directly to consumers that our platform.

by the way, according to invespedia, Gross merchandise value (GMV) is the total value of merchandise sold over a given period of time through a customer-to-customer (C2C) exchange site. It is a measure of the growth of the business or use of the site to sell merchandise owned by others.https://a6e50f0994a1b89a7261420cfda753ca.safeframe.googlesyndication.com/safeframe/1-0-37/html/container.html

Gross merchandise value (GMV) is often used to determine the health of an e-commerce site’s business because its revenue will be a function of gross merchandise sold and fees charged. It is most useful as a comparative measure over time, such as current quarter value versus previous quarter value.https://a6e50f0994a1b89a7261420cfda753ca.safeframe.googlesyndication.com/safeframe/1-0-37/html/container.html

GMV is also known as gross merchandise volume; both phrases indicating the total monetary value of total sales.

2020 they did livestream sessions for farming communities and dedicated channels to promote their products to relieve difficulties brought about by COVID-19. August we launched Duo Duo Grocery, our next day grocery pickup service the house local farmers and distributors to sell directly to consumers, increasing sales and cutting waste and costs for customers.

Pinduoduo’s vision of Costco + Disney started from agricultural platform in China. We can and should do more. We hope that in the next stage, Pinduoduo will become world’s largest agriculture and grocery platform. And that make grocery stores around the world affordable and available to our users. To this end, we aim to build up our equity-focused logistic infrastructure platform that will reduce waste, lower costs, and speed up delivery for agricultural products. This is a work in progress. We expect to make a few more years of investment before we can realize its full potential and achieve efficiency.

We share a vision of contributing to China’s agriculture sector with technology to help increase the resilience of the food chain and stay off the looming global food crisis. We will continue to invest in agriculture and food technology and look into global investment opportunities in alternative [indiscernible] 00:10:55 for the safety and precision farming.

2020 continue to promote digital inclusion of rural communities as advantaged. Pinduoduo have created a level playing field for businesses of all sizes including in agricultural sector where margins are seen. In addition, livestream as online business on our platform have created new roles that prioritize different skill set and allow inclusion of users whom otherwise be excluded. For instance, agriculture is traditionally labor intensive. Women and the physically weaker people may not be able to participate in it. Livestreams and online business operations do not Live steams and online business operations to not exact the same physical requirement as these individuals are able to participate in them. In fact, of our stores actively reengage in the sale of agricultural products. All house are managed by women. This is a win-win solution for everyone and a ways of commitment to social responsibility. We definitely want to and we’ll do more here, including by providing further training for them to sell well on our platform.

coemerge technology and agriculture,  an agritech startup based in [indiscernible] 00:15:29, won the competition with this technique of aquaponics, which combines fish farming with soil as vegetable growing, allowing the production of fruit and vegetables that are not -that are normally imported. We will continue investing in the promotion of digital agriculture and precision farming going forward.

 rapid increasing orders for fresh produce, particularly leafy vegetables via our platform, surfaced the urgent need to develop a dedicated logistics infrastructure to deliver fresh produce to our users in the optimal condition at compelling prices and within 24 hours. This new solution goes beyond streamlining distribution. It will be different from existing ones and it will take time, resources and multiple iterations for us to eventually arrive at what works best.

Last but not least, many of you have learned that Colin will step – stepping down from his Chairman role in fact today. He explores new frontiers for Pinduoduo in years to come. As a new Chairman of the board, I would like to ensure everyone that – I will ensure everyone that our strategy remain the same which is to stay true our value benefit and provide a more saving, more fast experience to serve our users on our platform. We are proud that we have become the world’s largest e-commerce platform by user number. We will work hard to deliver even better results in years to come.

with regard to ” revenues from merchandise sales”, while we look for merchants who can offer these products on our marketplace. We have no plan to grow this business. We expect this line item to remain very small percentage of total GMV we generate. As of Q4, it is less than 1% of total GMV we generated.

partnered with China Post and farmers’ cooperatives to bring agriculture products from remote areas to the national market to boost rural incomes. In this three-way collaboration, China Post local offices open online stores on Pinduoduo and sourced directly from agricultural co-ops. This approach has proven very effective in helping to tackle rural poverty.

Then on finance by Tony Ma,

Our last 12 months GMV for 2020 grew to RMB 1.67 trillion, representing 66% year-on-year growth. In comparison, our average annual spending per active buyer increased 23% to RMB 2,115. The lower rate of increase should be considered in the context of substantial increase of 203 million active buyers over the past year. Most of these new users are still building trust with our platform and have contributed less than a full year worth of purchases in 2020.

Duo Duo Maica 多多买菜 , it is – as Tony mentioned, it is a very new business initiative and the business model continues to evolve. I will say that, the first thing I do want to take the opportunity to clarify is that the total grocery business is – total grocery business itself is not a community group purchase business. It’s important that the investors understand this distinction because it impacts, I think, your understanding of how the economics works, right? So first of all, it is not a typical community group purchase because unlike group purchases where neighbors or group leaders or store owners actually aggregates a group and earn a commission for organizing that purchase. With an active buyer base of 788 million users, total grocery does not actually rely on community leaders to attract users and users can just place order independently by themselves to our app. So, this is the reason why we are approaching total grocery as an integrated and an extension of our e-commerce platform so the economics accordingly and the type of rules that these group leaders play are quite different.

Secondly, I would say is we introduced total grocery to cater to this rising demand that consumers have for convenient affordable grocery and it is now available in 300 cities across China. A key part of this offering is really the agriculture focused logistics infrastructure that we are working to build and the idea here is to really reduce waste to lower costs and to speed up delivery of agricultural products.

ARPUs or spending per user. with a user base that we have and with the focus that we are spending around engagements we are very confident that the user – as user activity grow that the availability of merchandise on our platform will grow. And as the user sees in our platform as we have seen in the past, they will continue to shop across more categories. They will make more purchases in those categories because that’s the trust level builds that mindshare, that market share or wallet share that we have with them will also grow.

Horizontal comparison, even the total revenue is far less than Amazon, the price is pushed quite high.