PDD Holdings (PDD) Q2 2026 earnings call transcript

Thank you, operator, and hello, everyone, and thank you for joining us today. PDD Holdings earnings conference earnings release was distributed earlier and is available on our website at investor. pddholdings. com, as well as through the Gov Newswire services.

Before we begin, I'd like to refer you to our safe harbor statement in the earnings press release, which applies to this call, as we'll make certain forward-looking statements. Also, this call includes discussions of certain non-GAAP financial measures. Please refer to our earnings release, which contains a reconciliation of non-GAAP measures to GAAP measures. Joining us today on the call are Mr. Chen Lei, our co-chairman and co-chief executive officer, Mr. Zhao Jiazhen, our co-chairman and co-chief executive officer, as well as Mr. Li Zhong, our financial director.

Lei and Jiazhen will make some general remarks on our performance for the past quarter and our strategic focus. June will then walk us through our financial results for the second quarter ended June 30, 2026. On today's call, certain management remarks will be in Chinese and will help translate. Please kindly note that English translation is for reference only, and in case of any discrepancy, statements in the original language should prevail.

Now it's my pleasure to introduce our co-chairman and co-chief executive officer, Mr. Zhao Jiazhen. Jiazhen, please go ahead.

Hello everyone, this is Zhao Jiazhen. Thank you for joining our earnings call for the second quarter of 2026. Before we formally begin, we would like to take this opportunity to express our deepest condolences on the passing of our independent director, Professor Ivana Richards, and to pay our highest tribute to significant contributions and dedicated service during her tenure with us.

Good morning, I will now turn the call over to management for the management of the field of agriculture and agriculture. and earned an international reputation in the fields of food research and drug effects. Since joining the company as an independent director in August 2023, Professor Richens provided invaluable professional advice on the company's governance and development. At the same time, as a long-standing partner of our Mudd Agricultural Competition, Rathemingen University and Research has consistently brought international perspectives and expert guidance to the event, helping it become an important global platform for innovation in agricultural technology as well as for talent development.

We will carry forward the passion for agricultural research and continue to increase our investment in agriculture and agricultural research. And through these long-term commitments, honor her professional legacy and make greater contributions to agricultural and food safety research worldwide. And now, let us return to the results for the quarter. This is the second year of the 2020-20th century. We will now turn the call over to management for a long time.

I'm going to start with the traditional technology management management center and traditional high-quality management center. The second quarter this year marked a new phase in the new decade of high-quality development as we moved from initial rollout to deeper execution. Our 100 billion support program has entered a phase in which our sustained investment is beginning to yield tangible results. The positive effects across our platform and industry are being unlocked at a faster pace, with improvements in both the quality and efficiency across the supply and demand sites. At the same time, we continue to make steady progress on our strategic goal of building another PDD over the next three years. Although the initial rollout of our first-party brand model over the past six months was slower than expected due to certain external factors, the overall momentum remains positive.

The operations are now fully underway and progressing smoothly. We will commit fully to transforming the supply chain for higher quality growth, drive the upgrading of traditional industries, and continue to unlock the supply chain's new growth potential from within. Furthermore, to accelerate supply chain transformation and upgrades, we have established a dedicated company in the Xiong'an new area and purchased an office building there to focus on new opportunities created by intelligent technologies. And to support upgrading and high-quality development of traditional manufacturing, we have also established a data processing service center for traditional industries and an integrated service center to help traditional manufacturers move up the value chain and pursue high-quality development. We delivered solid results for the quarter.

Group revenue was R&B 112.4 billion, representing a year-over-year increase of 8%. While Group Net Income was RMB 27.2 billion, declining 12% year-over-year. This mainly reflected our continued investments in our platform and a broader industry ecosystem, which partly weighed on our performance this quarter. In the first half of this year, competition in the e-commerce industry remained intense, a complex and rapidly evolving market environment. In the platform's business, we have increased the investment of investment in the platform and industry ecosystems, focused on governance, fee reduction, and merchant support, with the goal of building a platform ecosystem that creates value for all participants. In the platform of management, we increase the investment of developing materials, not only the same-level technology, but also the same-level management team, and the same-level management team.

We increase the development of management team, and increase the development of management team. We have significantly increased our R&D spending on platform governance. In addition to upgrading our technology-enabled risk prevention and control systems, we significantly expanded our specialist trust and safety teams and strengthened our oversight across all product categories. By taking into account specific characteristics of the different categories and launching targeted governance initiatives, we made ecosystem governance more regular, granular, and rules-based. We will now turn the call over to management for the Q&A. Today, the platform has introduced more than 150 comprehensive trust and safety measures. In June alone, we launched over 50 targeted initiatives addressing key areas such as product listing controls, food and drug safety, qualification reviews, advertising compliance, intellectual property protection, misleading marketing, live stream e-commerce standards, and the prevention of technology.

We are dedicated to upholding high compliance standards through rigorous rules, taking a systematic approach to reshaping our governance framework and fostering a safer, better regulated, and more trustworthy shopping environment. In the food safety area, we will also推出 the strategy of the product. In food safety, we launched a dedicated governance initiative that prohibits the sale of freshly prepared food and beverage products. We further tightened merchant qualification reviews as well as information disclosure requirements to prevent and mitigate food safety risks early on.

At the same time, the platform introduced more detailed requirements governing the permitted scope of food products sold via live streaming, In the 6th of June, we have also conducted several videos on the Q&A, and the Q&A. In early June, we also produced and released a number of video courses addressing common challenges and pain points in platform governance. These courses encourage merchants to familiarize themselves with the rules relevant to their industries, avoid violations, and protect their legitimate rights and interests. In accordance with platform rules, namely, the course frequently asked questions about store business licenses received 340,000 views within 24 hours of launch.

I will now turn the call over to management for a few more. We are now turning the call to the PDD Holdings. To the initiative, we help these regions develop new products, raise cultivation standards, and improve culture and logistics, thereby unlocking greater value for the agricultural products.

I take Highland's pineapple growing region as an example. In recent years, local merchants have begun introducing a new variety known as the golden diamond pineapple. Unlike traditional varieties, it has a distinct sweetness and required neither removing the ice nor soaking in salt water before serving. And supported by high-traffic programs on our platform, including flash sale and 10,000 people group by, the variety quickly gained market traction and became one of the season's most popular foods.

The greater certainty provided by e-commerce orders has also given growers the confidence to expand production. To date, the local cultivation area for golden diamond pineapples has grown from scattered trial plots to more than 100,000 movers.

Across the industrial belt, our dedicated new quality supply team has visited manufacturers across different regions and sectors, including home textiles, and home textiles, and home textiles. We provide a suite of support measures to these merchants such as traffic support data enablement expansion of market reach cost reduction smart manufacturing and warehousing upgrades As a result, manufacturers have cut their production cycles by half and have substantially improved their fulfillment capabilities. They can now rapidly handle large order volumes on a platform while tailoring to consumers' customization needs. This has enabled manufacturers to take a transformative leap from traditional manufacturing to building brands of their own, while accelerating the shift from traditional to new growth drivers across these industrial buildings.

And Xinjiang's textile industry is a good example. Gush County in Xinjiang was once a major source of migrant labor, with more than 200,000 I'm a member of the local residents previously working in the textile industry in Jiangsu and Zhejiang provinces alone. In recent years, younger generations from the county have begun establishing factories locally and selling textile products nationwide through Pinduoduo. Their annual sales have grown by an average of four to five times and have built leading brands in niche categories such as mosquito nets that are exported to Southeast Asia and Europe during the summer season. Today, the local economy has moved beyond its traditional reliance on labor migration and has established an integrated path to industrial development that brings together capital, technology, talent, and sales channels.

Thank you. In addition, our free shipping to villages, The PDD Holdings program has continued to deliver positive results since its launch six months ago. We have now established last mile delivery networks across more than 10 provinces and municipalities nationwide, including county-level transit hubs and village pickup points. These networks have brought significant job creation to counties and rural communities while accelerating the distribution of consumer goods, home appliances, agriculture supplies, and farming equipment to rural markets. In doing so, we are helping merchants unlock new growth opportunities and enabling consumers in remote villages to improve quality of life. Take Shandong as an example. As one of China's leading agricultural provinces, it is a key region for PinoDuo's free shipping to villages program.

And earlier pilots in Heze Juanchen and Dingyi Yishui have already produced significant results, with order volumes in the villages increasing several fold. And Tindro, meanwhile, is a major domestic production hub for water-soluble and innovative fertilizers, and many local agricultural supply companies are building on this momentum to reach more villages across the country.

As a platform serving the public, we have always sought to fulfill our social responsibilities and give back to the society. Recently, typhoons and heavy rainfall caused severe flooding in several parts of Guangxi. To support frontline disaster relief efforts, Pindledore made a cash donation of RMB 10 million to the affected areas. The funds were used to procure relief supplies and equipment, provide assistance and temporary shelter to affected residents, and support post-disaster recovery and reconstruction.

As we embark on our next decade, we are more convinced than ever that has been a new year. We will continue to invest resolutely in our supply chain, empower merchants and industries, and deliver better products and services to consumers. Through concrete actions, we aim to create greater positive value for our users, merchants, and the society as a whole.

With that, I will turn the call over to Chen Lei, who will provide further details.

Hello, everyone. I'm Chen Lei, and thank you for joining our greatest call for the second quarter of 2026. In the first half of the year, we made a tangible progress under the new decade of high-quality development strategy and laid a solid foundation for long-term growth. As Jiazen just mentioned, we focused on two key areas.

First, through the 100 billion support program, we continue to give back to both consumers and merchants. At the same time, we upgraded our platform governance framework across the board. This initiative has helped foster a healthier environment both on our platform and in a broader industrial ecosystem.

And second, we continue to work towards our three-year initiative of building another PDD. We set up supply chain investments and help supply chain partners build and develop their own brands. During the quarter, our long-term investment in the $100 billion support program started to materialize into gains in a healthier platform ecosystem. On the supply side, our merchants benefited from a combination of fee reductions, merchant support initiatives, and a stronger platform governance. These initiatives unlocked greater innovation among merchants, leading to the launch of new products and new brands, which drove incremental demand and new sources of growth.

Many manufacturers adopted digital and intelligent technology to enable customized production, and this drove improvements in quality and efficiency across the supply chain, We have a new development model. On the demand side, we continue to serve consumers' evolving needs for different product categories and diverse consumption occasions. This was particularly evident in rural areas where our free shipping to villages program put a much wider selection of products within the reach of our consumers, helping improve their quality of life. Drawing all the supply chain capabilities and brand development experience gained through the 100 billion support program, we took steps in this quarter to further integrate the supply chain. Our teams delve into the industrial balance of different product categories and started early stage corporations with high quality suppliers.

By setting clear standards for products, production processes, and quality control, we help merchants and manufacturers adapt their operations and develop a range of higher quality products with higher margins. Through these efforts, we continue to unlock the strength and the potential within the supply chain, driving the manufacturing sectors up the value chain.

Since the beginning of the year, global regulatory and compliance landscapes have undergone significant shifts. These changes created challenges as well as opportunities, and they also come with greater responsibilities. We find ourselves at a unique intersection of global trade, constantly navigating diverse international regulatory frameworks. At the same time, our position is a unique one. The business touches the daily lives of billions of people around the world. While there is substantial potential for growth, it is accompanied by increased expectation and higher standards of accountability.

We will stay true to our mission and continue to do every part of our work with dedication and discipline. But we will keep strengthening our compliance capabilities and fine-tuning platform governance. Through Protect Intellectual Property, we combine screening technologies with expert review to monitor and assess product listings across all categories in real time. This enables us to address IP risks earlier in the process and has led to systematic improvements of IP protection across the platform. And second, we continue to invest resolutely in the supply chain.

By truthfully executing on these structural upgrades, our ultimate goal is to build a highly resilient e-commerce platform that consumers around the world can rely on for competitive price and great quality.

As we step into our next decade, we remain laser focused on our core e-commerce business. By deepening our supply chain investments, we will continue to empower our merchants and broader industry, delivering a wider range of high-quality products and services. We are confident in our ability to translate our three-year initiative of building another PDD into tangible, verifiable results. And in doing so, we will strive to help the traditional suppliers to capture the opportunity in this new intelligent era, and empowering them to transform and move on the value chain and build brands with global reach.

And now, let me turn you over to Li Zhou, who will walk you through our results for the second quarter, 2026.

Well, thank you, Lei. And hello, everyone. This is Joan. Now, let me walk you through our financial performance for the second quarter and June 30, 2026. First, income statement. In the second quarter, our total revenues increased 8% year over year to R&B $112.4 billion. This was mainly during the bond increase in revenues from transaction services. Revenues from online marketing services and others were on B$57.6 billion this quarter compared with R&B$55.7 billion in the same quarter of 2025.

Revenues from transaction services were on B$54.7 billion, up 13% from the same quarter last year. Moving on to costs and expenses. Our total cost of revenues increased 5% from RMB $5.9 billion in Q2 2025 to RMB $48 billion this quarter. On a gap basis, total operating expenses this quarter increased 13% to RMB $36.6 billion from RMB $32.3 billion in the same quarter of 2025. On a non-GAAP basis, total operating expenses increased to R&B $35.3 billion this quarter from R&B $30.4 billion in Q2 2025.

Our total non-GAAP operating expenses as percentage of total revenue this quarter was 31% versus 29% in the same quarter last year. Looking into specific expense items, our non-GAAP sales and the marketing expenses this quarter were on between $9.3 billion, up 10% versus the same quarter last year. On a non-GAAP basis, our sales and the marketing expenses as a percentage of our revenues this quarter was 26%, in line with the same quarter last year. Our non-GAAP general administrative expenses for RMB 1.7 billion versus RMB 0.7 billion in the same quarter of 2025. Our research and development expenses were RMB 4.3 billion this quarter on a non-gap basis, up 40% year-over-year. On a GAAP basis, operating profit for the quarter was R&B 27.8 billion versus R&B 25.8 billion in the same quarter last year, up 8% year over the year.

Non-GAAP operating profit was R&B 29.1 billion versus R&B 27.7 billion in the same quarter last year. Non-GAAP operating profit margin was 26% this quarter versus 27% for the same quarter last year.

Net income attributable to ordinary shareholders was R&B $27.2 billion for a quarter, compared to R&B $30.8 billion in the same quarter last year. Basic earnings per ADS was R&B 19.32, and diluted earnings per ADS was R&B 18.45, versus basic earnings per ADS of R&B 22.01, and diluted earnings per ADS of R&B 20.75 in the same quarter of 2025. Non-GAAP net income attributable to ordinary shareholders was R&B $28.5 billion versus R&B $32.7 billion in the same quarter last year.

Non-GAAP diluted earnings per ADS was R&B $19.33 versus R&B $23.07 in the same quarter of 2025. That completes the income statement.

Now, let me move on to cash flow. Our net cash generated from operating activities was R&B $25.7 billion, compared with R&B $21.6 billion in the same quarter last year. As of June 30, 2026, we had R&B $456.4 billion in cash, cash equivalents, and short-term investments. Thank you, and this concludes my prepared remarks.

I will now turn the call over to management for the market. I will translate myself. My first question is about the company's global business. We noticed that the EU introduced a temporary customs duty on low-value cross-border consignments starting from July this year. Can management help us understand the expected impact of this change on the company's overall order volume? In light of these policy headwinds, what will be the company's growth strategy for the global business going forward? And my second question is on the company's first-party brand business announced last quarter.

Could management provide an update about the rollout and the progress made so far? And more broadly, how should investors frame the potential impact of this initiative on the company? How are you thinking about the mix and the positioning of first-party versus first-party products? And what will guide your pricing strategy for first-party products? Thank you. Hi Thomas, this is Chen Lei. Let me take your first question about our global business. Over this period, the regulatory and compliance landscape facing our global business has changed significantly. These changes have created challenges as well as opportunities for our business. They also come with great responsibilities. I feel like the company is in a special international trade. We are facing a different control of the management.

We are also in a very special place. The company's business is in a normal life of the world. We have a great development and a great responsibility. We believe we stand at a unique intersection in the global economy and global trade. We face pressure from different regulatory policies while also occupying a distinctive position. Currently, our business touches the daily lives of billions of people around the world. While there is substantial potential for growth, it is accompanied by increased expectations and higher standards of accountability. I will now turn the call over to management for the E&E. The market will face a lot of problems with the market. The market will be affected by the market. The market will be affected by the market.

But if we look from the middle of the market, the economy will be changing. Thank you. We hope to connect our business with more deeply into our business. The core of the business and the core of the business and the core of the business, and improve the growth of the environment.

However, over the medium to long term, changes in the external environment have further underscored the importance in our supply chain, and has prompted us to accelerate the development of the relevant capabilities.

First, the platform will continue to onboard and support more high-quality local merchants to broaden the supply of local products. Second, we are accelerating the build-out of local warehousing and fulfillment infrastructure and expanding the coverage of local fulfillment. Through these investments, we hope to integrate more deeply into every market we serve, Strengthen the foundation and resilience of our supply chain and better navigate changes and volatility in the environment.

I'm going to show you a good opportunity for the world to give a great opportunity for the world. So, we have to provide a healthy and healthy and healthy environment for the public. We have done a lot of work. We have been working on the platform for the technology management and the public sector. We have been working on the platform for the public sector. In the past, we have seen the At the same time, we have done extensive work on intellectual property compliance to provide a healthy business environment and level playing field for merchants around the world.

Building on technology-enabled monitoring and manual review, the platform has developed systematic IP protection capabilities. Our recent favorable ruling in the IP litigation involving an industry peer has further demonstrated the effectiveness of our IP protection mechanism. We will remain committed to protecting the legitimate rights and interests of our ecosystem partners and to fostering a fair and reliable business environment. Thank you. Thank you.

We will continue to steadily advance our work across supply chain, fulfillment, compliance, and consumer service. We will strive to provide consumers around the world with a shopping platform that remains stable over the long term and offers compelling prices and reliable quality, a platform that they can count on, trust, and enjoy using. Thank you.

Good morning, I'm and will be able to bring the whole industry to the market. We seek to bring greater certainty to brand development and value creation across the industry value chain, and in turn turn that incremental value into tangible benefits for all the participants. In the upcoming stages, we will select the main source of the market and supply chain with the main source of the market and the production company. We will work with manufacturers over the long term, from product planning and R&D to setting quality standards and market testing. The business requires an extended period of development and collaboration, and the initial rollout has taken longer than we originally expected. And nevertheless, it remains a clear long-term strategic priority for the platform, and we will remain patient and focused on getting every step right, and we are confident in the long-term prospects of our first-party brand model.

In the future, our product-friendly products and third-party products will be filled with the cost of the market. Thank you.

Our first-party brand products and products offered by third-party merchants will complement each other in meeting consumers' diverse needs across different use cases and market segments, and ultimately creating an ecosystem that benefits all participants. Thank you.

Thank you. Thank you so much. And operator, we can move on to the next analyst on the line.

As the industry ramps up investment in the same delivery what strategy is the company pursuing to strengthen user mindshare and also defend your market share Thank you Hi, this is Jia Jiajun. As with our other investments, our investments in logistics and fulfillment are guided by the need to improve consumer experience and address the practical challenges the merchants face in doing business. We make prudent and targeted investments where we believe we can create tangible value. And accordingly, our investment priorities vary across markets and business models. In the domestic market, e-commerce logistics, The last mile delivery remains a significant bottleneck in remote western regions and many rural communities. To address this problem, we have committed substantial resources to strengthening the logistics network, and under our 100 billion support program, we are firmly advancing the Free Shipping to Villages initiative and our logistics support for remote regions.

In the past, we have the And since the end of last year, under the Fish Shipping to Villages initiative, we have established local service stations covering all 177 villages in湖南悠陷. In Shandong Yishui, we have increased the number of parcels delivered to villages to more than 100,000 per day. And this infrastructure not only helps agricultural supplies such as fertilizers reach farmers more directly, but also enables a wider range of high-quality products to reach rural consumers more efficiently.

And in doing so, we are helping unlocking significant consumer demand in underserved regions and meaningfully improve order conversion for merchants that serve these communities. That's the part of the market. In certain overseas markets, fragmented point-to-point shipping by individual merchants oftentimes makes it very difficult to achieve the economies of scale that is made possible through the consolidation of shipments. This results in higher overall fulfillment costs and leaves some consumer demand unmet.

In markets facing these challenges, we invest targetedly in development and operations of transit warehouses. These investments help local merchants streamline their fulfillment processes and lower logistics barriers, while providing local consumers with a more reliable delivery experience.

And back to your question, we will continue to take a practical and solution-oriented approach to fulfillment-related investments. And by building stronger supply chain capabilities and improving the efficiency and reliability of fulfillment services, we aim to enhance the consumer experience, create a virtual cycle between supply and demand, and strengthen the platform's capacity for sustainable organic growth over the long term. That's the second question. The second question is that the market and the market and the market are always in the way. We also have a lot of attention to the market and the market. We can make the relationship with the company. We can make the relationship with the company. E-commerce and grocery businesses. And given the current stage of our business, these are fairly different in terms of both supply chain requirements and operating model, and with limited scope for synergies.

We have therefore chosen to focus our resources and efforts on areas where we have established strength and our best position to create differentiated value. As the industry matures, platforms will take different approaches. to serving consumers based on their respective capabilities and experience. Our path has always been quite clear, which is we will continue strengthening our supply chain capabilities.

Our current supply chain investments have two complementary priorities. First is ensuring a strong supply of quality products, and second is building the infrastructure to deliver them efficiently. In the way, we will continue to use the trade-off, the trade-off, and the trade-off, and the trade-off. And on the product supply side, through initiatives such as new quality supply and Dodo premium produce, we continue to help capable traditional manufacturers strengthen their product development and brand building capabilities, enabling them to move up the value chain and giving consumers greater access to high quality products at compelling value. And on the infrastructure side, through projects such as pre-shipping to villages, we are improving our distribution network and addressing last mile delivery gaps in remote areas, and enabling consumers in more regions to benefit from the convenience and affordability of e-commerce.

The supply chain investments we have chosen to make may not yield immediate results, but we believe over the long term, it will create tangible value for the industry, consumers, and our merchant ecosystem. We will remain focused on this foundational yet very important work and continue creating differentiated value for consumers and merchants. Thank you.

Operator, I think we have time for one more analyst. Thank you.

This is Judge Ajahn. As mentioned earlier, the 100 billion support program is starting to show results. From the 10 billion fee reduction program introduced in 2024 to the 100 billion support program early last year, the resources and the supply chain support that we have provided have reached major agricultural regions and manufacturing clusters. 經過這段時間的努力,我們很欣喜地看到一批產業代的商家藉此實現了自交跃迁,比如說一家廣東的某美專品牌,在平台的扶持下大幅地降低了或刻意運營的成本,將改善後的利潤投入到長達兩年的技術空間,成功轉型為擁有自主專利的國貨品牌。 And we're encouraged to see that these efforts have enabled many merchants in industrial belts to make meaningful gains in both quality and efficiency. For example, with the support from the platform, a cosmetic company in Guangdong significantly reduced its customer acquisition and operating costs.

This company reinvested the profits in a two-year R&D effort, successfully transitioning into patented and national brand. and merchants in Zhongshan's lighting manufacturing belt have also leveraged the platform's fast product-taxing capabilities to increase investment in high-quality lighting components and smart product features, which led to the launch of a best-selling product that generated several millions in sales within just a few months.

That we will be able to invest in the supply chain ecosystem. Of course, building a healthier merchant ecosystem takes time. We will remain committed to these investments and help more merchants achieve healthier and more sustainable growth. That's the platform. and the E-commerce platforms are two-sided networks. Merchants' growth prospects are closely tied to a high-quality consumer experience and a healthy platform ecosystem.

Our 100 billion support program is therefore focused first and foremost on improving product quality, strengthening the supply chain, and supporting the merchant ecosystem, such that small and medium-sized merchants can reinvest their efficiency gains in product upgrades. Now, over the long term, lower operating costs, stronger profitability, and greater business confidence among merchants will ultimately drive sustainable organic value creation across the platform. Thank you.

Hi, this is John, and let me take your second question. In the first half of the year, as consumption support policies continue to take effect, China's consumer market expanded steadily, and online retail penetration continued to grow. We remain confident in the long-term potential of China's consumer market and e-commerce industry.

As e-commerce enters a new stage of development, platforms need to take a more proactive role in unlocking new growth by addressing fundamental supply chain bottlenecks. Like, for example, through a free shipping to village initiative, we are investing in more comprehensive fast-mile delivery network, including transit warehouses and village pickup points.

These efforts are helping strengthen rural commerce and distribution networks and stimulate consumer demand in these regions. In the first half of this year, retail sales in rural areas grew faster than the overall market, showing significant potential.

On monetization, just as Joshua mentioned, we remain focused on strengthening the platform ecosystem and helping our merchant grow. Over time, by getting these fundamentals right, we believe the sustainable growth in the platform's intrinsic value will naturally follow. Thank you.

Okay. Thank you, Jun. And thank you all for joining us today. It's about time, and we look forward to seeing you next quarter.