Demand and orders: Lei Chen: These initiatives unlock greater innovation among merchants, leading to the launch of new products and new brands, which drove incremental demand and new sources of growth.
Margins: Jun Liu: Non-GAAP operating profit margin was 26% this quarter versus 27% for the same quarter last year.
Analyst Q&A
Analyst Thomas Chong asked: [Foreign Language] 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? Management Lei Chen answered: In the short term, cross-border orders in the affected markets will face lower fulfillment efficiency and higher costs, which will have a considerable impact on those parts of our business. 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.
