Robert Way Investment Thesis PDD Holdings Inc. (NASDAQ:PDD) reported their earnings report for the second quarter of 2024 and cast a gloomy outlook on their growth forecasts. PDD's Q2 earnings report showed a miss on their total sales figure, underwhelming the lofty near-2x expectations markets had for PDD. However, management was further surprised with commentary now warning of slower growth ahead. These comments have heavily weighed on the company, with the stock losing almost a quarter of its market cap ...

Following a disappointing second-quarter earnings report, U.S.-listed shares of China-based online retailer PDD Holdings Inc - ADR (NASDAQ:PDD) are eyeing their worst day ever. Amid this fall, it looks like an ideal time to check back in on three of the most popular Chinese stocks traded stateside: Baidu Inc (NASDAQ:BIDU), Alibaba Group Holding Ltd - ADR (NYSE: BABA), and JD.com Inc (NASDAQ:JD).Temu-parent PDD Holdings' results are weighing on rival Alibaba stock, which was last seen 4.1% lower at $81.92. W ...

The Chinese e-commerce giant whiffed on revenue expectations.Shares of PDD Holdings (PDD -29.70%) were tumbling today after the Chinese e-commerce company and owner of Pinduoduo and Temu posted disappointing revenue growth in the second quarter and offered a downbeat commentary on the quarters ahead.Shares were down 28% as of 11:12 a.m. ET on the news. PDD runs into a wallPDD had been bucking the trend in Chinese e-commerce, continuing to put up phenomenal growth while peers like Alibaba and JD.com have str ...

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

PDD Holdings Inc (NASDAQ:PDD) stock is headed for its largest daily percentage drop ever, down 27.2% at $101.75 at last glance, after the China-based e-commerce name announced disappointing second-quarter results and warned of a revenue slowdown. Gapping to its lowest levels since November, the stock is down roughly 30% since the start of the year. Plus, PDD just moved below its 320-day moving average for the first time since May 2023. Options traders are blasting the Temu parent in response. So far, 133,00 ...

Financial Data and Key Metrics - Total revenues increased 86% YoY to RMB97.1 billion in Q2 2024, driven by growth in online marketing services and transaction services [18] - Revenues from marketing services and others were RMB49.1 billion, up 29% YoY, while transaction services revenues grew 234% YoY to RMB47.9 billion [12] - Net income attributable to ordinary shareholders was RMB32 billion, up from RMB13.1 billion in Q2 2023, with diluted EPS at RMB23.14 compared to RMB9.64 in the same quarter last year [20] - Non-GAAP operating profit margin improved to 36% from 28% YoY, with non-GAAP operating profit at RMB35 billion [22] - Net cash generated from operating activities was RMB43.8 billion, up from RMB23.4 billion in Q2 2023 [37] Business Line Performance - The company continued to focus on consumer demand, enhancing savings and services capabilities, and upgrading after-sales services [17] - The platform saw significant growth in new merchants and products, with a 90% YoY increase in merchants participating in the 10 Billion Program and an 83% YoY increase in agricultural merchants [35] - The company invested RMB1 billion during the first week of June 18 to support the countryside home appliance program, leading to remarkable growth for local brands in categories like electronics and home appliances [29] Market Performance - Online retail in China performed well in the first half of 2024, contributing to the overall consumption market [7] - The company expanded its agricultural strategy, launching projects like the Science and Technology Courtyard and the fourth smart agricultural competition [21] - The global business faced significant uncertainties due to intense competition and external factors, with operations increasingly affected by non-business factors [16][55] Strategic Direction and Industry Competition - The company is transitioning towards high-quality development, focusing on long-term investments in the platform ecosystem [40][65] - Investments in supply chain efficiency and merchant ecosystem are prioritized, with a focus on supporting high-quality merchants and removing unlawful vectors [6][47] - The company plans to reduce transaction fees for high-quality merchants by RMB10 billion in the first year to incentivize quality development [47][71] Management Commentary on Operating Environment and Future Outlook - Management emphasized the importance of patient investments despite short-term profit impacts, as the company focuses on long-term platform health [2][40] - Profitability is expected to fluctuate in the short term but will trend downward in the long run due to increased investments and competition [27][40] - The company remains confident in the future of the Chinese consumer market but acknowledges challenges from shifting consumer demand and global uncertainties [7][51] Other Important Information - The company invested tens of millions in initiatives like Reading Month to promote social responsibility and make knowledge more accessible [1] - R&D expenses increased 15% YoY to RMB2.4 billion on a non-GAAP basis, reflecting the company's commitment to innovation and supply chain efficiency [22] - The company has RMB284.9 billion in cash, cash equivalents, and short-term investments as of June 30, 2024 [37] Q&A Session Summary Question 1: Profitability and Shareholder Returns - Management clarified that past profit growth should not be used as long-term guidance, and profitability will trend downward due to increased investments [27][67] - The company does not plan share repurchases or dividends in the foreseeable future, as it remains in the investment phase [25][67] Question 2: Merchant Ecosystem - The company is committed to supporting high-quality merchants through significant transaction fee reductions and investments in supply chain efficiency [70][71] - Policies will be implemented to address low-quality merchants while fostering a healthy and sustainable platform ecosystem [45][71] Question 3: Global Business and Competition - The global business faces intense competition and external uncertainties, but the company remains committed to its vision of expanding the digital economy [75][76] - Revenue growth has slowed, indicating that high growth is not sustainable, and the company will focus on core strengths like supply chain and compliance [77][88] Question 4: Competitive Environment and Investment Priorities - The company acknowledges the intense competition in the e-commerce sector and will adjust investment priorities to focus on high-quality development [74][90] - Investments will be directed towards supply chain improvements, merchant support, and compliance to ensure long-term platform health [93][87]

KEY TAKEAWAYSAmerican depositary receipts (ADRs) of Chinese e-commerce company PDD Holdings are plunging in premarket trading Monday after the parent of discount marketplace Temu posted lower-than-estimated sales.PDD reported second-quarter sales of 97.06 billion yuan ($13.63 billion), below consensus estimates of analysts polled by Visible Alpha.PDD chairman and co-CEO Lei Chen said the company faces "many challenges ahead." American depositary receipts (ADRs) of Chinese e-commerce company PDD Holdings (PD ...

Revenue Growth - Total revenues in Q2 2024 were RMB97,059.5 million (US$13,355.8 million), an 86% increase from RMB52,280.7 million in Q2 2023[3][18] - Revenues from online marketing services and others in Q2 2024 were RMB49,115.9 million (US$6,758.6 million), a 29% increase from RMB37,932.8 million in Q2 2023[4] - Revenues from transaction services in Q2 2024 were RMB47,943.7 million (US$6,597.3 million), a 234% increase from RMB14,347.9 million in Q2 2023[4] - Revenues for the six months ended June 30, 2024, reached RMB 183,871,590 thousand, a significant increase from RMB 89,917,798 thousand in the same period in 2023[27] Profitability - Operating profit in Q2 2024 was RMB32,564.5 million (US$4,481.0 million), a 156% increase from RMB12,718.8 million in Q2 2023[3][20] - Net income attributable to ordinary shareholders in Q2 2024 was RMB32,009.4 million (US$4,404.6 million), a 144% increase from RMB13,108.1 million in Q2 2023[3][20] - Operating profit for the six months ended June 30, 2024, was RMB 58,538,189 thousand, compared to RMB 19,647,773 thousand in the same period in 2023[27] - Net income for the six months ended June 30, 2024, was RMB 60,007,181 thousand, up from RMB 21,209,113 thousand in the same period in 2023[27] - Operating profit for Q2 2024 increased to RMB 32,564,536, a significant rise from RMB 12,718,755 in 2023[32] - Net income attributable to ordinary shareholders for Q2 2024 was RMB 32,009,355, compared to RMB 13,108,086 in 2023[32] Non-GAAP Metrics - Non-GAAP operating profit and net income are used by the company to evaluate performance and exclude share-based compensation, fair value changes of investments, and interest expenses related to convertible bonds[23] - Non-GAAP operating profit for Q2 2024 reached RMB 34,987,298, up from RMB 14,609,384 in 2023[32] - Non-GAAP net income attributable to ordinary shareholders for Q2 2024 stood at RMB 34,432,134, up from RMB 15,269,356 in 2023[32] - Non-GAAP diluted earnings per ordinary share for Q2 2024 were RMB 5.81, up from RMB 2.62 in 2023[32] - Non-GAAP diluted earnings per ADS for Q2 2024 were RMB 23.24, compared to RMB 10.47 in 2023[32] Earnings Per Share - Basic earnings per ADS for the six months ended June 30, 2024, were RMB 43.47, compared to RMB 15.82 in the same period in 2023[28] - Diluted earnings per ordinary share for Q2 2024 were RMB 5.40, compared to RMB 2.25 in 2023[32] - Diluted earnings per ordinary share for the six months ended June 30, 2024, were RMB 10.14, compared to RMB 3.63 in 2023[32] Cash Flow and Investments - Cash, cash equivalents and short-term investments were RMB284.9 billion (US$39.2 billion) as of June 30, 2024, compared with RMB217.2 billion as of December 31, 2023[21] - Net cash generated from operating activities in Q2 2024 was RMB43,792.6 million (US$6,026.1 million), compared with RMB23,396.0 million in Q2 2023[21] - Net cash generated from operating activities for the six months ended June 30, 2024, was RMB 64,859,819 thousand, up from RMB 24,734,003 thousand in the same period in 2023[30] - Cash and cash equivalents decreased from RMB 59,794,469 thousand as of December 31, 2023, to RMB 56,756,329 thousand as of June 30, 2024[26] Assets and Equity - Total assets increased from RMB 348,078,120 thousand as of December 31, 2023, to RMB 432,744,342 thousand as of June 30, 2024[26] - Other non-current assets were RMB67.8 billion (US$9.3 billion) as of June 30, 2024, compared with RMB48.0 billion as of December 31, 2023[21] - Total shareholders' equity increased from RMB 187,241,607 thousand as of December 31, 2023, to RMB 253,978,218 thousand as of June 30, 2024[27] Expenses - Sales and marketing expenses in Q2 2024 were RMB26,049.1 million (US$3,584.5 million), a 48% increase from RMB17,542.2 million in Q2 2023[5] - Research and development expenses for the six months ended June 30, 2024, were RMB 5,818,830 thousand, compared to RMB 5,240,621 thousand in the same period in 2023[27] - Share-based compensation expenses for Q2 2024 were RMB 2,422,762, up from RMB 1,890,629 in 2023[32] Share Metrics - Non-GAAP diluted weighted-average number of ordinary shares outstanding for Q2 2024 was 5,925,659 thousand, slightly up from 5,833,348 thousand in 2023[32]

DUBLIN and SHANGHAI, Aug. 26, 2024 (GLOBE NEWSWIRE) -- PDD Holdings Inc. (“PDD Holdings” or the “Company”) (NASDAQ: PDD), today announced its unaudited financial results for the second quarter ended June 30, 2024. Second Quarter 2024 Highlights Total revenues in the quarter were RMB97,059.5 million (US$113,355.8 million), an increase of 86% from RMB52,280.7 million in the same quarter of 2023.Operating profit in the quarter was RMB32,564.5 million (US$4,481.0 million), an increase of 156% from RMB12,718.8 m ...

NEW YORK, Aug. 26, 2024 /PRNewswire/ -- The Gross Law Firm issues the following notice to shareholders of PDD Holdings Inc. f/k/a Pinduoduo Inc. (NASDAQ: PDD).Shareholders who purchased shares of PDD during the class period listed are encouraged to contact the firm regarding possible lead plaintiff appointment. Appointment as lead plaintiff is not required to partake in any recovery.CONTACT US HERE:https://securitiesclasslaw.com/securities/pdd-holdings-inc-f-k-a-pinduoduo-inc-loss-submission-form/?id=97707& ...