Group 1: Industry Insights - The organic silicon sector is experiencing continuous improvement in profitability, with an optimizing industry structure [3] - The agricultural sector is focusing on new breeding directions and industry transformations following the recent seed industry conference [4] Group 2: Company Performance - Zijin Mining (601899.SH) reported a revenue of 303.64 billion yuan for 2024, a year-on-year increase of 3.5%, and a net profit of 32.1 billion yuan, up 51.8% year-on-year [5] - Jianghai Co., Ltd. (002484.SZ) achieved a revenue of 3.539 billion yuan in the first three quarters of 2024, a decrease of 6.33% year-on-year, with a net profit of 494 million yuan, down 9.71% [7] - Horizon Robotics (9660.HK) saw a decline in non-vehicle solution revenue to 72 million yuan in 2024, compared to 81 million yuan in 2023, but improved gross margin by 10.4 percentage points [8] - Furuida (600223.SH) reported a revenue of 3.98 billion yuan and a net profit of 240 million yuan for 2024, with a proposed dividend of 0.06 yuan per share [9] - Pinduoduo (PDD.O) achieved a revenue of 393.84 billion yuan in 2024, a 59% year-on-year growth, and a GAAP net profit of 112.43 billion yuan, up 87.3% year-on-year [10]

Core Insights - PDD is identified as a potential multibagger investment opportunity due to its rapid growth and market positioning in China's e-commerce sector [1][4]. Company Overview - PDD, founded in 2015, has quickly become one of China's fastest-growing e-commerce companies, attracting hundreds of millions of shoppers with its discount marketplace for group purchases [2]. - The company has expanded into higher-end markets, created an agricultural marketplace connecting farmers directly to consumers, and launched Temu to facilitate overseas sales [2]. Financial Performance - From 2016 to 2023, PDD's revenue grew at a compound annual growth rate (CAGR) of 142%, and it became profitable in 2021, with net income growing at a CAGR of 178% over the next two years [3]. - Despite a stock price drop of over 40% in the following four years, this decline presents a buying opportunity for investors [4]. Growth Strategies - PDD's growth strategies include focusing on lower-income second- and third-tier cities, leveraging initial growth to compete in first-tier cities, and expanding its product offerings to include more brand-name products [5][6][8]. - The company has disrupted traditional retail by connecting farmers directly to consumers through its agricultural marketplace, providing a competitive edge in the online grocery market [9]. - PDD's overseas marketplace, Temu, aims to challenge Amazon by linking Chinese sellers directly to foreign buyers, allowing for lower prices and shorter delivery times [10]. Future Projections - Analysts project PDD's revenue and earnings per share (EPS) to rise by 61% and 87% respectively in 2024, with further growth expected in 2025 [11]. - The growth projections are contingent on the stabilization of China's economy and PDD's ability to gain market share against competitors like Alibaba and JD [12]. - If PDD's performance aligns with analysts' estimates, its stock price could potentially rise to around $2,640 per share by 2035, assuming a more favorable valuation [14]. Investment Considerations - PDD's stock is currently trading at 10 times forward earnings, which is considered attractive given its growth potential [13]. - Investors are encouraged to consider PDD as a viable investment option, especially as many are currently avoiding top growth stocks in China [15].

Core Viewpoint - PDD Holdings Inc reported disappointing fourth-quarter revenues, leading to a decline in share price amid a busy earnings season [1] Revenue Performance - PDD reported quarterly revenues of RMB 111 billion ($15.3 billion), representing a 24% year-on-year increase, but fell short of consensus expectations by RMB 6 billion ($827 million) [2] - Online marketing services revenue grew by 17% year-on-year, aligning with expectations [2] Transaction Revenue Insights - Transaction revenues increased by 33% year-on-year, primarily driven by international expansion and Temu, but also missed consensus by RMB 6 billion [3] - The shift in Temu's business model from a full-entrusted model to a semi-entrusted model has led to a significant shortfall in transaction commission revenue [4] Investor Sentiment - Investors are concerned about the company's investments aimed at building a healthy ecosystem, which negatively impacts short-term profitability [5] - PDD is focusing on developing its platform ecosystem and adapting to domestic competition [5] Analyst Ratings - Benchmark analyst Fawne Jiang reiterated a Buy rating with a price target of $160 [6] - Goldman Sachs analyst Ronald Keung maintained a Buy rating with a price target of $157 [6]

以下是 拼多多 4Q24 的财报电话会纪要，财报解读请移步《 拼多多: "跌下神坛"，傲骨还能撑多久？ 》 一、财报核心信息回顾 1. 营收情况：2024 年第四季度营收达到 1106 亿元人民币，同比增长 24%；2024 年全年营收总计 3938 亿元人民币， 同比增长 59%。 2. 成本与费用：2024 年第四季度总成本为 478 亿元人民币，同比增长 36%，主要因履行费用和支付处理费用增加； 2024 年第四季度运营费用为 372 亿元人民币，同比增长 19%；非 GAAP 下运营费用为 351 亿元人民币，占总收入的 32%。 3. 利润与收益：2024 年第四季度 GAAP 下营业利润为 256 亿元人民币，非 GAAP 下营业利润为 280 亿元人民币， 营业利润率为 25%；全年非 GAAP 下营业利润为 1183 亿元人民币；2024 年第四季度归属于普通股东的净利润为 274 亿元人民币，全年为 1124 亿元人民币。 4. 现金流：2024 年第四季度经营活动产生的净现金流为 295 亿元人民币，全年为 1219 亿元人民币；截至 2024 年 底，公司拥有 3316 亿元人民币的现 ...

Group 1: Market Overview - The Nasdaq Composite recently entered correction territory, defined as a decline of at least 10% from recent highs, presenting potential investment opportunities for long-term investors [1] Group 2: Coupang - Coupang has established itself as a leader in South Korea's e-commerce market, focusing on densely populated cities and disciplined investments to enhance shareholder returns [3][5] - The company is expanding its service offerings, including food delivery (Coupang Eats), digital entertainment (Coupang Play), and payment services (Coupang Pay), with revenue from these services growing 124% year over year last quarter [4] - Coupang's gross profit increased by 43% year over year in 2024, outpacing its 24% revenue growth, with expectations for further margin expansion in 2025 through efficiency and automation [5] - The company is also expanding into international markets, with Taiwan's revenue growing 23% quarter over quarter and the launch of food delivery in Japan [6] - The stock trades at a price-to-sales multiple of 1.39, with shares 15% off recent highs, indicating potential for excellent returns as the business grows [7] Group 3: PDD Holdings - PDD Holdings is competing effectively with Alibaba in China's e-commerce sector, operating the Pinduoduo and Temu platforms, which are driving significant growth [8] - The company has focused on mobile shopping and a consumer-to-manufacturer model, resulting in revenue tripling over the last three years [9] - Pinduoduo's agricultural roots allow direct purchasing from farmers, enhancing growth and investment in quality goods, creating a positive growth cycle [10] - The platform's gamification strategy encourages social sharing and group shopping, distinguishing it from competitors [11] - PDD Holdings has seen its profit margin double to nearly 30% over the last three years, with analysts projecting an annualized earnings per share growth rate of 21% [12]

" 2025年若大力推进数码类的国补，京东拼多多之间的竞争，可 能更激烈。 " 作者丨代润泽 编辑丨刘伟 2025年，国补持续加码。这场狂欢中，拼多多成了舆论里，"受伤"最严重的那个。 知情人士透露称，去年双十一的国补期间，有家电品牌在拼多多日销下滑超过90%；去年Q4，拼多多家 电营收增长仅3%。此外，拼多多的百亿补贴价格优势也受到冲击。例如，苹果在天猫和京东官方旗舰 店，通过国补和平台补贴叠加后，价格甚至低于拼多多百亿补贴。 这引起了很多业者的关注。那么，国补政策究竟将如何重塑行业格局？拼多多又将采取哪些策略来应对 呢？ 01 模式决定结果，国补给拼多多带来短期震荡 拼多多的商业模式，决定了很难吃到国补的第一波红利。 谈及国补，有业者总结，地方政府希望通过拉动地方消费，提高本地的社会消费品零售总额（以下简称社 零）。计入社零有两种方式，一种是通过品牌企业，另一种通过自营平台。 这对京东、 天猫这样以品牌 商家为主，且有自营业务的平台来说，是极大的利好。 其中，京东受益尤为明显。 长期以来，京东是较重的自营模式，自己把控品牌、型号、品控、价格，定价、促销等。虽然重，自主权 却高，面临国补，可调配的资源就更多 ...

Market Overview - On March 20, US stock indices experienced slight declines, with the Dow Jones down 0.03%, S&P 500 down 0.22%, and Nasdaq down 0.33% [1] - Chinese concept stocks saw a significant drop, with the Nasdaq Golden Dragon China Index falling 3.84%, marking the largest single-day decline since February 25 [2] Company Performance - Plus Therapeutics experienced a dramatic increase of 170.06% in stock price, with a trading volume of 35.8 million shares, following the announcement of its lung cancer treatment receiving "orphan drug" designation from the FDA [2][3] - Pinduoduo's stock rose 3.97% despite a general downturn in Chinese stocks, reporting a total revenue of 393.8361 billion yuan for 2024, a 59% year-on-year increase, and a net profit of 112.435 billion yuan, up 87% [5][6] Financial Results - Nike reported a revenue of $11.269 billion for Q3 of FY2025, a decline of over 9% year-on-year, with a net profit of $794 million, down over 32% [8] - Micron Technology's adjusted revenue for Q2 was $8.05 billion, a 38% year-on-year increase, exceeding analyst expectations [8] Economic Outlook - Jeffrey Gundlach, co-founder of DoubleLine Capital, indicated a 50% to 60% chance of the US economy entering a recession, citing concerns over tariffs and inflation stability [9]

Core Insights - PDD Holdings reported non-GAAP earnings per share of $2.76, slightly above analyst estimates, while revenue of $15.15 billion fell short of expectations by 2.5% [1][2] Financial Performance - Non-GAAP EPS (diluted) for Q4 2024 was $2.76, an increase of 8.7% from Q4 2023's $2.54 [2] - Revenue reached $15.15 billion, a 24.3% increase year over year, but missed the consensus estimate of $15.55 billion [2][5] - Non-GAAP net income was $4.09 billion, up 17.1% from $3.49 billion in Q4 2023 [2] - Operating margin improved to 24.5%, a slight increase of 40 basis points from the previous year [2] Business Strategy - PDD Holdings focuses on diversifying its online marketplaces and integrating into the digital economy as part of its long-term growth strategy [3] - The company emphasizes innovation and platform diversity, with a strategic relocation of its headquarters to Dublin, Ireland, to align with global market ambitions [4] Revenue Drivers - Online marketing services and transaction services were significant contributors to revenue growth, with transaction service revenues increasing by 33% year over year to $7.34 billion [5] - Despite a 36% rise in operating costs to $6.55 billion, operating income grew by 14% to $3.51 billion, indicating effective cost control [6] Strategic Initiatives - Management's strategic moves include enhancing platform functionality and investing in supply chain and digital innovations to build consumer engagement [7] - The company is adjusting to geopolitical movements by strengthening its international market presence [8] Future Outlook - Management emphasizes international expansion and plans to enhance the platform ecosystem to meet growing global demand [9] - Changes in consumer behavior and competitive pressures will be critical areas of focus for the company moving forward [10]

Financial Data and Key Metrics Changes - In Q4 2024, total revenues increased by 24% year-on-year to RMB 110.6 billion, while full-year revenue reached RMB 393.8 billion, growing 59% year-on-year, indicating a moderation in revenue growth [10][33] - Total cost of revenues rose by 36% in Q4 2024 to RMB 47.8 billion, and for the full year, it increased by 68% to RMB 153.9 billion, primarily due to higher fulfillment and payment processing fees [34] - Non-GAAP operating profit for Q4 was RMB 28 billion, compared to RMB 24.6 billion in the same quarter of 2023, with a non-GAAP operating profit margin of 24% [39][41] Business Line Data and Key Metrics Changes - Revenue from online marketing services in Q4 was RMB 57 billion, up 17% year-on-year, while transaction services revenue was RMB 53.6 billion, up 33% year-on-year [33] - The quality merchant support program expanded its reach across agricultural and industrial sectors, providing comprehensive support and driving new consumption trends [21][56] Market Data and Key Metrics Changes - Logistics support measures for remote regions drove double-digit order growth, extending free shipping to nearly 100 million consumers [12][20] - The platform's ecosystem investments have enriched consumer choices, with a broader range of high-quality products available across various categories [25][26] Company Strategy and Development Direction - The company is focused on high-quality development, emphasizing ecosystem upgrades and supply chain transformation to foster a mutually beneficial environment for consumers and merchants [18][20] - A 10 billion fee reduction program and logistics support measures are part of the strategy to enhance operational efficiency for merchants and improve service quality [11][12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that external uncertainties and intense competition have impacted short-term revenue growth, but they remain committed to long-term investments in the platform ecosystem [81] - The company plans to continue prioritizing investments in supply chain improvements and service quality to ensure sustainable growth [70][72] Other Important Information - The establishment of the Merchant Rights Protection Committee aims to enhance communication with merchants and optimize their experiences [27][29] - The company is committed to corporate social responsibility, seeking to create greater value for the communities it serves [74][75] Q&A Session Summary Question: Long-term goals for platform ecosystem development - Management highlighted that initiatives like the RMB 10 billion fee reduction program are aimed at lowering operational costs for merchants and driving meaningful supply chain upgrades [49][50] Question: Recent consumer-side initiatives - The company upgraded its super level savings initiative during the fourth quarter, providing substantial savings to consumers and enhancing brand growth [54][56] Question: Insights into the competitive landscape - Management noted that competition drives continuous advancement in the e-commerce industry, and they are refining strategies to meet shifting consumer preferences [64][66] Question: Changes in global business due to macro conditions - The company will comply with laws and regulations while refining services and compliance standards in response to external changes impacting global operations [69][71] Question: Revenue and profit trends - Management expects fluctuations in revenue growth and profits due to increased investments in merchant support and platform ecosystem development [81][82] Question: Balancing platform responsibility with shareholder duties - The company aims to build an inclusive ecosystem that creates value for all participants, aligning long-term accountability to shareholders with social responsibility [86][88]

[Executive Summary](index=1&type=section&id=Executive%20Summary) [Management Commentary](index=1&type=section&id=Management%20Commentary) PDD Holdings' management emphasized a commitment to driving sustainable growth for its platform ecosystem and the broader supply chain, focusing on high-quality development and continuous investment to benefit consumers, merchants, and all participants - Committed to driving sustainable growth for both the platform ecosystem and the broader supply chain[3](index=3&type=chunk) - Driving a high-quality development strategy through targeted innovations in platform operations and industry support policies[3](index=3&type=chunk) - Invested consistently in the platform ecosystem, leveraging digital capabilities to give back to consumers and support quality merchants[3](index=3&type=chunk) - Prioritizing investments in the platform ecosystem as the cornerstone of long-term value creation strategy[3](index=3&type=chunk) [Fourth Quarter 2024 Financial Highlights](index=1&type=section&id=Fourth%20Quarter%202024%20Highlights) PDD Holdings reported strong financial growth in Q4 2024, with total revenues increasing by 24% and operating profit by 14%, while net income attributable to ordinary shareholders also saw an 18% increase, reflecting robust performance Fourth Quarter 2024 Key Financials (YoY Growth) | Metric | Q4 2024 (RMB million) | Q4 2023 (RMB million) | YoY Change | | :--------------------------------- | :--------------------- | :--------------------- | :--------- | | Total Revenues | 110,610.1 | 88,881.0 | +24% | | Operating Profit (GAAP) | 25,592.2 | 22,395.0 | +14% | | Operating Profit (Non-GAAP) | 27,996.5 | 24,579.9 | +14% | | Net Income Attributable (GAAP) | 27,446.6 | 23,280.3 | +18% | | Net Income Attributable (Non-GAAP) | 29,850.9 | 25,476.5 | +17% | [Fiscal Year 2024 Financial Highlights](index=3&type=section&id=Fiscal%20Year%202024%20Highlights) For the full fiscal year 2024, PDD Holdings achieved significant growth, with total revenues surging by 59% and operating profit by 85%, while net income attributable to ordinary shareholders increased by 87%, demonstrating exceptional annual performance Fiscal Year 2024 Key Financials (YoY Growth) | Metric | FY 2024 (RMB million) | FY 2023 (RMB million) | YoY Change | | :--------------------------------- | :--------------------- | :--------------------- | :--------- | | Total Revenues | 393,836.1 | 247,639.2 | +59% | | Operating Profit (GAAP) | 108,422.9 | 58,698.8 | +85% | | Operating Profit (Non-GAAP) | 118,306.4 | 65,777.6 | +80% | | Net Income Attributable (GAAP) | 112,434.5 | 60,026.5 | +87% | | Net Income Attributable (Non-GAAP) | 122,343.6 | 67,899.3 | +80% | [Fourth Quarter 2024 Unaudited Financial Results](index=2&type=section&id=Fourth%20Quarter%202024%20Unaudited%20Financial%20Results) [Revenues](index=2&type=section&id=Q4%202024%20Revenues) Total revenues for Q4 2024 increased by 24% year-over-year to RMB 110,610.1 million, primarily driven by a 17% increase in online marketing services and a significant 33% surge in transaction services Q4 2024 Revenue Breakdown (YoY Growth) | Revenue Type | Q4 2024 (RMB million) | Q4 2023 (RMB million) | YoY Change | | :----------------------------- | :--------------------- | :--------------------- | :--------- | | Total Revenues | 110,610.1 | 88,881.0 | +24% | | Online Marketing Services & Others | 57,011.1 | 48,675.6 | +17% | | Transaction Services | 53,599.0 | 40,205.4 | +33% | - The increase in total revenues was primarily due to the increase in revenues from online marketing services and transaction services[5](index=5&type=chunk) [Costs and Expenses](index=2&type=section&id=Q4%202024%20Costs%20and%20Expenses) Total costs of revenues increased by 36% in Q4 2024, mainly due to higher fulfillment and payment processing fees, while total operating expenses rose by 19%, driven by increased sales and marketing spending on promotion and advertising activities Q4 2024 Costs and Expenses (YoY Growth) | Expense Type | Q4 2024 (RMB million) | Q4 2023 (RMB million) | YoY Change | | :----------------------------- | :--------------------- | :--------------------- | :--------- | | Total Costs of Revenues | 47,798.4 | 35,078.3 | +36% | | Total Operating Expenses | 37,219.5 | 31,407.8 | +19% | | Sales and Marketing Expenses | 31,356.9 | 26,638.5 | +18% | | General and Administrative Expenses | 2,085.4 | 1,904.8 | +9.5% | | Research and Development Expenses | 3,777.2 | 2,864.4 | +31.9% | - Increase in costs of revenues mainly came from increased fulfillment fees and payment processing fees[6](index=6&type=chunk) - Increase in total operating expenses was primarily due to increased spending in promotion and advertising activities[6](index=6&type=chunk)[7](index=7&type=chunk) [Profitability](index=3&type=section&id=Q4%202024%20Profitability) Operating profit for Q4 2024 increased by 14% year-over-year to RMB 25,592.2 million (GAAP) and RMB 27,996.5 million (Non-GAAP), while net income attributable to ordinary shareholders grew by 18% (GAAP) and 17% (Non-GAAP) respectively Q4 2024 Profitability (YoY Growth) | Metric | Q4 2024 (RMB million) | Q4 2023 (RMB million) | YoY Change | | :--------------------------------- | :--------------------- | :--------------------- | :--------- | | Operating Profit (GAAP) | 25,592.2 | 22,395.0 | +14% | | Operating Profit (Non-GAAP) | 27,996.5 | 24,579.9 | +14% | | Net Income Attributable (GAAP) | 27,446.6 | 23,280.3 | +18% | | Net Income Attributable (Non-GAAP) | 29,850.9 | 25,476.5 | +17% | [Earnings Per Share (EPS)](index=3&type=section&id=Q4%202024%20EPS) Basic earnings per ADS for Q4 2024 increased to RMB 19.76, up 16.2% from RMB 17.00 in the prior year, with diluted EPS per ADS and Non-GAAP diluted EPS per ADS also showing similar growth Q4 2024 Earnings Per ADS (YoY Growth) | Metric | Q4 2024 (RMB) | Q4 2023 (RMB) | YoY Change | | :-------------------------- | :------------ | :------------ | :--------- | | Basic EPS per ADS | 19.76 | 17.00 | +16.2% | | Diluted EPS per ADS | 18.53 | 15.83 | +17.1% | | Non-GAAP Diluted EPS per ADS | 20.15 | 17.32 | +16.3% | [Cash Flow and Balance Sheet](index=3&type=section&id=Q4%202024%20Cash%20Flow%20and%20Balance%20Sheet) Net cash generated from operating activities in Q4 2024 was RMB 29,547.2 million, a decrease from the prior year, however, cash, cash equivalents, and short-term investments significantly increased by 52.7% year-over-year to **RMB 331.6 billion** as of December 31, 2024 Q4 2024 Cash Flow & Balance Sheet Highlights | Metric | Q4 2024 (RMB million) | Q4 2023 (RMB million) | YoY Change | | :------------------------------------ | :--------------------- | :--------------------- | :--------- | | Net Cash from Operating Activities | 29,547.2 | 36,890.7 | -19.9% | | Cash, Cash Equivalents & Short-term Investments (as of Dec 31) | 331,600.0 | 217,200.0 | +52.7% | | Other Non-current Assets (as of Dec 31) | 83,400.0 | 48,000.0 | +73.7% | - Other non-current assets mainly included time deposits, held-to-maturity debt securities, and available-for-sale debt securities[11](index=11&type=chunk) [Fiscal Year 2024 Unaudited Financial Results](index=3&type=section&id=Fiscal%20Year%202024%20Unaudited%20Financial%20Results) [Revenues](index=3&type=section&id=FY%202024%20Revenues) Total revenues for fiscal year 2024 increased substantially by 59% year-over-year to RMB 393,836.1 million, driven by a 29% increase in online marketing services and a remarkable 108% surge in transaction services revenue FY 2024 Revenue Breakdown (YoY Growth) | Revenue Type | FY 2024 (RMB million) | FY 2023 (RMB million) | YoY Change | | :----------------------------- | :--------------------- | :--------------------- | :--------- | | Total Revenues | 393,836.1 | 247,639.2 | +59% | | Online Marketing Services & Others | 197,934.2 | 153,540.6 | +29% | | Transaction Services | 195,901.9 | 94,098.7 | +108% | - The increase in total revenues was primarily due to the increase in revenues from online marketing services and transaction services[12](index=12&type=chunk) [Costs and Expenses](index=3&type=section&id=FY%202024%20Costs%20and%20Expenses) For fiscal year 2024, total costs of revenues increased by 68%, mainly due to higher fulfillment and payment processing fees, while total operating expenses rose by 35%, primarily driven by increased sales and marketing spending and a significant rise in staff-related general and administrative costs FY 2024 Costs and Expenses (YoY Growth) | Expense Type | FY 2024 (RMB million) | FY 2023 (RMB million) | YoY Change | | :----------------------------- | :--------------------- | :--------------------- | :--------- | | Total Costs of Revenues | 153,900.4 | 91,723.6 | +68% | | Total Operating Expenses | 131,512.9 | 97,216.9 | +35% | | Sales and Marketing Expenses | 111,300.5 | 82,188.9 | +35% | | General and Administrative Expenses | 7,553.0 | 4,075.6 | +85% | | Research and Development Expenses | 12,659.4 | 10,952.4 | +15.6% | - Increase in costs of revenues mainly came from increased fulfillment fees and payment processing fees[13](index=13&type=chunk) - Increase in sales and marketing expenses mainly due to increased spending in promotion and advertising activities[18](index=18&type=chunk) - Increase in general and administrative expenses primarily due to the increase in staff related costs[18](index=18&type=chunk) [Profitability](index=4&type=section&id=FY%202024%20Profitability) Operating profit for fiscal year 2024 significantly increased by 85% year-over-year to RMB 108,422.9 million (GAAP) and 80% to RMB 118,306.4 million (Non-GAAP), while net income attributable to ordinary shareholders grew by 87% (GAAP) and 80% (Non-GAAP) respectively FY 2024 Profitability (YoY Growth) | Metric | FY 2024 (RMB million) | FY 2023 (RMB million) | YoY Change | | :--------------------------------- | :--------------------- | :--------------------- | :--------- | | Operating Profit (GAAP) | 108,422.9 | 58,698.8 | +85% | | Operating Profit (Non-GAAP) | 118,306.4 | 65,777.6 | +80% | | Net Income Attributable (GAAP) | 112,434.5 | 60,026.5 | +87% | | Net Income Attributable (Non-GAAP) | 122,343.6 | 67,899.3 | +80% | [Earnings Per Share (EPS)](index=4&type=section&id=FY%202024%20EPS) Basic earnings per ADS for fiscal year 2024 more than doubled to RMB 81.24, up 83.3% from RMB 44.33 in the prior year, with diluted EPS per ADS and Non-GAAP diluted EPS per ADS also showing substantial growth FY 2024 Earnings Per ADS (YoY Growth) | Metric | FY 2024 (RMB) | FY 2023 (RMB) | YoY Change | | :-------------------------- | :------------ | :------------ | :--------- | | Basic EPS per ADS | 81.24 | 44.33 | +83.3% | | Diluted EPS per ADS | 76.01 | 41.15 | +84.7% | | Non-GAAP Diluted EPS per ADS | 82.71 | 46.51 | +77.8% | [Cash Flow](index=4&type=section&id=FY%202024%20Cash%20Flow) Net cash generated from operating activities for fiscal year 2024 increased by 29.5% to RMB 121,929.3 million, primarily due to the increase in net income and favorable changes in working capital FY 2024 Cash Flow Highlights (YoY Growth) | Metric | FY 2024 (RMB million) | FY 2023 (RMB million) | YoY Change | | :------------------------------------ | :--------------------- | :--------------------- | :--------- | | Net Cash from Operating Activities | 121,929.3 | 94,162.5 | +29.5% | - Increase in net cash from operating activities mainly due to the increase in net income and the changes in working capitals[17](index=17&type=chunk) [Financial Statements](index=8&type=section&id=Financial%20Statements) [Condensed Consolidated Balance Sheets](index=8&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) As of December 31, 2024, PDD Holdings reported a significant increase in total assets by 45.1% to **RMB 505.03 billion**, driven by higher cash, cash equivalents, and short-term investments, while total liabilities increased by 19.2% and total shareholders' equity grew by 67.3% Condensed Consolidated Balance Sheets (as of Dec 31) | Metric | Dec 31, 2024 (RMB thousand) | Dec 31, 2023 (RMB thousand) | Change | | :-------------------------- | :--------------------------- | :--------------------------- | :----- | | Total Assets | 505,034,316 | 348,078,120 | +45.1% | | Total Liabilities | 191,721,192 | 160,836,513 | +19.2% | | Total Shareholders' Equity | 313,313,124 | 187,241,607 | +67.3% | - Current assets increased from **RMB 294,750,472 thousand** in 2023 to **RMB 415,648,232 thousand** in 2024[29](index=29&type=chunk) - Short-term investments increased from **RMB 157,415,365 thousand** in 2023 to **RMB 273,791,856 thousand** in 2024[29](index=29&type=chunk) [Condensed Consolidated Statements of Income](index=10&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20INCOME) The consolidated statements of income show robust growth in revenues and profitability for both the fourth quarter and the full fiscal year 2024, with total revenues for FY 2024 reaching **RMB 393.84 billion**, leading to a net income of **RMB 112.43 billion** Condensed Consolidated Statements of Income (RMB thousand) | Metric | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | | :--------------------- | :-------- | :-------- | :-------- | :-------- | | Revenues | 110,610,106 | 88,881,036 | 393,836,097 | 247,639,205 | | Costs of Revenues | (47,798,376) | (35,078,272) | (153,900,374) | (91,723,577) | | Operating Profit | 25,592,215 | 22,394,968 | 108,422,862 | 58,698,762 | | Net Income | 27,446,637 | 23,280,309 | 112,434,512 | 60,026,544 | [Notes to Financial Information](index=12&type=section&id=NOTES%20TO%20FINANCIAL%20INFORMATION) [Revenue Breakdown](index=12&type=section&id=Revenue%20Breakdown) PDD Holdings' revenue growth in both Q4 and FY 2024 was significantly driven by transaction services, which more than doubled year-over-year for the full fiscal year, alongside solid growth in online marketing services Revenue Breakdown (RMB thousand) | Revenue Type | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | | :----------------------------- | :-------- | :-------- | :-------- | :-------- | | Online Marketing Services & Others | 57,011,061 | 48,675,618 | 197,934,192 | 153,540,553 | | Transaction Services | 53,599,045 | 40,205,418 | 195,901,905 | 94,098,652 | | Total | 110,610,106 | 88,881,036 | 393,836,097 | 247,639,205 | [Share-based Compensation Expenses](index=13&type=section&id=Share-based%20Compensation%20Expenses) Share-based compensation expenses increased across most categories in FY 2024, with a notable rise in general and administrative expenses, reflecting the company's compensation structure, with total share-based compensation for FY 2024 reaching **RMB 9.88 billion** Share-based Compensation Expenses (RMB thousand) | Category | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | | :-------------------------------- | :-------- | :-------- | :-------- | :-------- | | Costs of Revenues | 312,776 | 46,404 | 412,721 | 132,470 | | Sales and Marketing Expenses | 256,314 | 411,048 | 2,216,792 | 2,354,097 | | General and Administrative Expenses | 1,087,472 | 1,230,358 | 4,742,816 | 2,289,272 | | Research and Development Expenses | 747,693 | 497,134 | 2,511,235 | 2,302,955 | | **Total** | **2,404,255** | **2,184,944** | **9,883,564** | **7,078,794** | [Condensed Consolidated Statements of Cash Flows](index=14&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) For fiscal year 2024, net cash generated from operating activities increased significantly to **RMB 121.93 billion**, while net cash used in investing activities more than doubled to **RMB 118.36 billion**, with financing activities remaining minimal Condensed Consolidated Statements of Cash Flows (RMB thousand) | Activity | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | | :------------------------------------ | :-------- | :-------- | :-------- | :-------- | | Net Cash from Operating Activities | 29,547,160 | 36,890,671 | 121,929,292 | 94,162,531 | | Net Cash Used in Investing Activities | (30,545,257) | (16,470,671) | (118,356,036) | (55,431,278) | | Net Cash (Used in)/Generated from Financing Activities | 274 | (8,968,297) | 1,164 | (8,960,626) | - Increase in cash, cash equivalents and restricted cash for FY 2024 was **RMB 4,414,516 thousand**[42](index=42&type=chunk) [Non-GAAP Financial Measures](index=5&type=section&id=Use%20of%20Non-GAAP%20Financial%20Measures) [Definition and Use](index=5&type=section&id=Non-GAAP%20Definition%20and%20Use) PDD Holdings uses non-GAAP financial measures to evaluate operating performance and formulate business plans, excluding non-cash charges like share-based compensation, fair value changes of investments, and convertible bond interest expenses, to provide a clearer view of underlying business trends, though these measures are supplemental and not a substitute for U.S. GAAP - Non-GAAP financial measures exclude share-based compensation expenses, fair value change of certain investments, and interest expenses related to convertible bonds' amortization to face value[20](index=20&type=chunk)[21](index=21&type=chunk) - Used by management to evaluate operating performance and formulate business plans, helping identify underlying trends by excluding non-cash charges[21](index=21&type=chunk) - Non-GAAP measures are not defined under U.S. GAAP, are not a substitute for GAAP, and may differ from those used by other companies, thus comparability may be limited[22](index=22&type=chunk) [Reconciliation to GAAP](index=15&type=section&id=RECONCILIATION%20OF%20NON-GAAP%20MEASURES%20TO%20THE%20MOST%20DIRECTLY%20COMPARABLE%20GAAP%20MEASURES) The reconciliation table provides a clear bridge between GAAP and non-GAAP figures for operating profit, net income attributable to ordinary shareholders, and diluted earnings per ADS for both the fourth quarter and the full fiscal year 2024, detailing the adjustments made Reconciliation of Non-GAAP Measures to GAAP (RMB thousand, except per share data) | Metric | Q4 2024 (GAAP) | Q4 2024 (Non-GAAP) | FY 2024 (GAAP) | FY 2024 (Non-GAAP) | | :----------------------------------------- | :------------- | :----------------- | :------------- | :----------------- | | Operating Profit | 25,592,215 | 27,996,470 | 108,422,862 | 118,306,426 | | Net Income Attributable to Ordinary Shareholders | 27,446,637 | 29,850,921 | 112,434,512 | 122,343,561 | | Diluted Earnings per ADS (RMB) | 18.53 | 20.15 | 76.01 | 82.71 | - Non-GAAP adjustments primarily include share-based compensation expenses, interest expenses related to convertible bonds' amortization to face value, and loss from fair value change of certain investments[44](index=44&type=chunk) [Additional Information](index=5&type=section&id=Additional%20Information) [Conference Call Details](index=5&type=section&id=Conference%20Call) PDD Holdings will host an earnings conference call on March 20, 2025, at 7:30 AM ET to discuss the financial results, with a live webcast and replay available on the investor relations website - Earnings conference call scheduled for **7:30 AM ET on March 20, 2025** (11:30 AM GMT and 7:30 PM HKT)[19](index=19&type=chunk) - The conference call will be webcast live at https://investor.pddholdings.com/investor-events, with a replay available at the same website[19](index=19&type=chunk) [Safe Harbor Statements](index=6&type=section&id=Safe%20Harbor%20Statements) The report includes standard safe harbor statements, cautioning readers about forward-looking statements and the inherent risks and uncertainties that could cause actual results to differ materially from projections, such as growth strategies, market trends, and regulatory changes - Contains forward-looking statements identified by terminology such as 'will,' 'expects,' 'anticipates,' 'aims,' 'future,' 'intends,' 'plans,' 'believes,' 'estimates,' 'confident,' 'potential,' 'continue' or other similar expressions[24](index=24&type=chunk) - Forward-looking statements involve inherent risks and uncertainties, with factors like growth strategies, business development, buyer retention, market trends, competition, and regulatory changes potentially causing actual results to differ materially[24](index=24&type=chunk) - The Company undertakes no obligation to update any forward-looking statement, except as required under applicable law[24](index=24&type=chunk) [About PDD Holdings](index=7&type=section&id=About%20PDD%20Holdings) PDD Holdings is a multinational commerce group focused on integrating businesses and individuals into the digital economy to foster increased productivity and new opportunities for local communities and small businesses - PDD Holdings is a multinational commerce group that owns and operates a portfolio of businesses[26](index=26&type=chunk) - Aims to bring more businesses and people into the digital economy[26](index=26&type=chunk) - Goal is for local communities and small businesses to benefit from increased productivity and new opportunities[26](index=26&type=chunk)