Group 1 - The A-share market has reached a historic moment with the Shanghai Composite Index closing up 1.51%, and total trading volume hitting 3.177 trillion yuan, marking the second highest trading day in history [2][6]. - The market is witnessing a surge in confidence, as evidenced by the rapid increase in the index levels since May, with significant gains in a short period [4][5]. - The current bull market in A-shares is evident, with technology stocks leading the charge and attracting substantial capital inflows [6][9]. Group 2 - Various sectors are performing well, including hard technology, rare earths, biomedicine, and consumer goods, indicating a broad-based market rally [10][12]. - Notable technology stocks such as Cambrian (寒武纪) have seen significant price increases, with a recent rise of 11.4% and a five-day cumulative increase of 45.78% [14][17]. - The overall market sentiment is bolstered by favorable macroeconomic signals, including expectations of interest rate cuts from the Federal Reserve, which have positively impacted both A-shares and Hong Kong stocks [18][19]. Group 3 - The Hong Kong market is also experiencing a strong rally, with the Hang Seng Index rising 1.94%, driven by major tech companies like NIO and Alibaba [21][22]. - Alibaba's recent business restructuring and positive earnings expectations have contributed to its stock price increase, reflecting market optimism [24][25]. - The influx of capital into Hong Kong stocks is evident, with significant net inflows from both domestic and international investors, particularly in technology sectors [29][32]. Group 4 - The Hong Kong Technology 50 ETF has seen substantial inflows, indicating strong investor interest in technology stocks, which are expected to continue performing well [36][40]. - The valuation of the Hong Kong technology index remains attractive compared to historical levels, suggesting potential for further growth [38][41]. - The shift towards technology as the main driver of market growth signifies a new era for Chinese stocks, with expectations of a tech-driven bull market ahead [41].

Core Insights - Pinduoduo's Q2 2025 revenue growth slowed to 7%, with a total revenue of 104 billion yuan, influenced by increased investments in high-quality development [1] - The company launched a new "trillion support" strategy to assist merchants, marking a significant increase in support measures [1] - Pinduoduo emphasizes long-term value over short-term profits, focusing on ecosystem construction and industry transformation [1] Revenue and Financial Performance - Pinduoduo reported a revenue of 104 billion yuan for Q2 2025, reflecting a 7% growth rate [1] - The "trillion support" initiative aims to enhance the platform's ecosystem and support merchants during challenging times [1] Merchant Support Initiatives - The "100 billion reduction" policy has saved millions of merchants significant operational costs, with promotional service fee refunds exceeding 10 billion yuan [2] - The "trillion support" strategy has expanded support for small and medium-sized merchants, enhancing their operational efficiency [3][6] Regional Economic Impact - Pinduoduo's "e-commerce westward" initiative has boosted order volumes in western regions by over 40%, with daily necessities seeing a doubling in order volume [2] - The platform has facilitated the delivery of essential goods to remote areas, improving local living standards [3] Agricultural Development and Product Innovation - Pinduoduo's support has led to a 47% increase in agricultural product sales, with seasonal fruit sales up by 51% and seafood sales up by 48% [5] - The platform has enabled local farmers to innovate, such as transforming local potatoes into popular snack products, benefiting over 11,000 households [5][8] Long-term Strategy and Technological Investment - Pinduoduo is committed to long-term strategies, focusing on enhancing user experience and optimizing merchant services through substantial investments [9] - The company is actively involved in agricultural research, hosting competitions to promote innovative agricultural technologies [9]

本文源自：观点网 拼多多称，第二季度来自在线营销服务和其他业务的收入为557.032亿元，较2024年同期的491.159亿元 增长13%。 免责声明：本文内容与数据由观点根据公开信息整理，不构成投资建议，使用前请核实。 观点网讯：8月25日，拼多多公布2025年第二季度未经审计财务业绩。 财报显示，拼多多第二季度营收1039.8亿元，较2024年同期的970.595亿元增加7%；调整后每ADS收益 22.07元，超出市场预期的15.50元；调整后净利润327.1亿元，超出市场预期的223.9亿元，较2024年同期 的344.321亿元下降5%。 ...

Core Viewpoint - Pinduoduo reported a net profit of 30.75 billion yuan for Q2, representing a year-on-year decline of 4%, marking the second consecutive quarter of decline [1] Group 1: Financial Performance - The net profit for Q2 was 30.75 billion yuan, which is a 4% decrease compared to the same period last year [1] - The company has experienced a continuous decline in net profit for two consecutive quarters [1] Group 2: Strategic Initiatives - In 2023, Pinduoduo upgraded its "100 billion reduction" initiative to a "1 trillion support" strategy, marking the first time in the e-commerce industry that such a large-scale support action has been initiated [1] - The significant investments associated with this new strategy have negatively impacted short-term performance but are expected to create new opportunities and momentum for long-term development in the industry ecosystem [1]

人民财讯8月25日电，8月25日，拼多多发布最新二季度财报，净利润同比下降4%，继上个季度之后再 次下降。去年8月，拼多多率先在电商行业推出"百亿减免"举措，为千万商家降佣增效。 ...

Investment Rating - The report does not explicitly state an investment rating for the company [2]. Core Insights - Pinduoduo (PDD.US) is expected to report total revenue of 103.2 billion yuan for Q2 2025, representing a year-on-year growth of 6.3%. Online marketing revenue is projected to be 54.9 billion yuan, up 11.8%, while transaction service revenue is anticipated to reach 48.2 billion yuan, a slight increase of 0.6% [4]. - Operating expenses are expected to total 40.6 billion yuan, reflecting a significant year-on-year increase of 31.8%, with a corresponding expense ratio of 38.9%. Marketing expenses are projected to rise by 35.1% to 35.2 billion yuan, while management and R&D expenses are expected to grow modestly [4]. - The anticipated operating profit is 21 billion yuan, down 35.6% year-on-year, with a profit margin of 20.3%. Non-GAAP operating profit is expected to be 23.3 billion yuan, a decline of 33.4%, with a profit margin of 22.6% [4]. - The diluted earnings per share are projected to be 3.22 yuan, equating to 13.64 yuan per ADS [4]. Summary by Sections Company Overview - Pinduoduo is focusing on sustainable growth and enhancing its platform ecosystem, particularly through its differentiated "Duoduo Maicai" business, which is effectively operating in the instant retail sector [5]. Market Context - The macroeconomic environment remains challenging, with uncertainties surrounding tariffs affecting the cross-border e-commerce industry. A recent agreement between the US and China to pause additional tariffs for 90 days may provide some relief, but the lack of a stable trade agreement continues to pose risks [5]. Financial Performance Expectations - The company is set to release its Q2 2025 financial results on August 25, 2025, with an earnings call scheduled for 19:30 Beijing time [6].

Core Insights - Pinduoduo's Q2 2025 revenue reached 104 billion yuan, a 7% year-on-year increase, but the growth rate has significantly declined due to increased industry investments and the launch of the "100 billion support" strategy [1][2] - The "100 billion support" initiative has led to substantial cost savings for millions of merchants, with promotional service fee refunds exceeding 10 billion yuan, allowing some merchants to save millions annually [1] - The platform's agricultural product sales grew by 47% year-on-year, with seasonal fruit sales up by 51% and seafood sales up by 48%, driven by initiatives like "Duoduo Good Specialty Products" [1] Financial Performance - Pinduoduo's Q2 revenue was 104 billion yuan, reflecting a 7% increase compared to the previous year [1] - The decline in revenue growth is attributed to the company's strategic investments and support initiatives [1] Strategic Initiatives - The "100 billion support" strategy aims to assist merchants and enhance the industry ecosystem, with a focus on long-term value over short-term gains [2] - The "e-commerce westward" initiative has eliminated logistics transfer fees in western regions, resulting in over 40% year-on-year growth in orders from these areas [1] - The "new quality supply" team is working with traditional industry clusters to help merchants identify high-potential products, leading to profit increases of 4 to 5 times in specific categories [1]

Core Viewpoint - Recently, it has been reported that NetEase has increased its stake in Pinduoduo, confirmed by the company's 13F filing on August 14, which shows holdings in both Youdao and Pinduoduo [2]. Group 1: Holdings Information - NetEase holds approximately 2.898 million shares of Youdao and about 3.555 million shares of Pinduoduo [2]. - The acquisition of Pinduoduo shares is inferred to have occurred in the second quarter, as the previous report on May 8 only listed holdings in Youdao [2]. - As of the end of the second quarter, the value of NetEase's Pinduoduo shares is approximately $370 million, equivalent to about 2.6 billion RMB, with a per-share value of around $104 [6]. Group 2: Market Context - On August 22, the closing price of Pinduoduo was $127.11, indicating a potential appreciation in value since the reported acquisition [6].

Core Viewpoint - Pinduoduo's Q2 2025 financial report shows a slowdown in revenue growth to 7%, with total revenue of 104 billion yuan and a net profit decline of 4% year-on-year, marking two consecutive quarters of profit decrease [1] Financial Performance - Revenue for Q2 2025 reached 104 billion yuan, a 7% increase year-on-year [1] - Net profit for the quarter was 30.75 billion yuan, down 4% compared to the same period last year [1] - Revenue from online marketing services and other businesses was 55.7032 billion yuan, up 13% from 49.1159 billion yuan in Q2 2024 [1] - General and administrative expenses were 1.53 billion yuan, below the estimated 1.91 billion yuan; R&D expenses were 3.59 billion yuan, slightly above the estimated 3.5 billion yuan [1] Strategic Initiatives - Pinduoduo launched a new "trillion support" strategy in Q2, aimed at enhancing merchant support and industry development [1] - The company has implemented the "hundred billion reduction" policy, which has saved millions for merchants through various fee reductions [2] - The "e-commerce westward" initiative has eliminated logistics transfer fees in western regions, leading to over 40% growth in order volume in that area [2] Agricultural Development - Pinduoduo's "DuoDuo Good Specialty" initiative has significantly increased agricultural product sales, with a 47% year-on-year growth in overall agricultural product sales and a 51% increase in seasonal fruit sales [3] - The platform's agricultural merchant count has grown by over 30% among post-00s merchants [3] - The company is investing in agricultural research, with the fifth "DuoDuo Agricultural Research Technology Competition" attracting 46 teams globally [3] Long-term Vision - Pinduoduo emphasizes a long-term approach, prioritizing sustainable development and ecosystem building over short-term profits [2][4] - The company aims to create a multi-win ecosystem for users, merchants, and the platform, driving the industry towards a more inclusive and open future [4]

[Management Commentary and Business Highlights](index=1&type=section&id=Management%20Commentary%20and%20Business%20Highlights) Management prioritizes long-term platform health through merchant support, noting moderated revenue growth and potential short-term profitability impacts from investments - The company focuses on long-term value creation by investing in merchant support initiatives to build a healthier and more sustainable platform ecosystem[3](index=3&type=chunk) - Management acknowledged that revenue growth has moderated amid intense competition and that continued investments may negatively impact short-term profitability[3](index=3&type=chunk) [Financial Performance Summary](index=1&type=section&id=Financial%20Performance%20Summary) Q2 2025 revenues grew 7% to RMB 104.0 billion, but operating profit declined 21% to RMB 25.8 billion, and net income fell 4% to RMB 30.8 billion [Key Financial Metrics (Q2 2025)](index=1&type=section&id=Key%20Financial%20Metrics%20%28Q2%202025%29) Q2 2025 total revenues grew 7% to RMB 104.0 billion, but operating profit fell 21% to RMB 25.8 billion, and net income decreased 4% to RMB 30.8 billion Q2 2025 Key Financial Metrics (YoY Comparison) | Financial Metric | Q2 2025 (RMB million) | Q2 2024 (RMB million) | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenues | 103,984.8 | 97,059.5 | +7% | | Operating Profit | 25,792.9 | 32,564.5 | -21% | | Net Income | 30,753.5 | 32,009.4 | -4% | | Diluted EPS (RMB) | 5.19 | 5.40 | -3.9% | | Diluted ADS (RMB) | 20.75 | 21.61 | -4.0% | [Revenue and Expense Analysis](index=1&type=section&id=Revenue%20and%20Expense%20Analysis) Revenue growth of 7% was driven by a 13% increase in online marketing services to RMB 55.7 billion, while costs of revenues rose 36% and operating expenses increased 5% Revenue Breakdown (Q2 2025 vs Q2 2024) | Revenue Source | Q2 2025 (RMB million) | Q2 2024 (RMB million) | YoY Change | | :--- | :--- | :--- | :--- | | Online marketing services and others | 55,703.2 | 49,115.9 | +13% | | Transaction services | 48,281.6 | 47,943.7 | +0.7% | Costs and Expenses Breakdown (Q2 2025 vs Q2 2024) | Item | Q2 2025 (RMB million) | Q2 2024 (RMB million) | YoY Change | | :--- | :--- | :--- | :--- | | Costs of revenues | 45,858.9 | 33,698.1 | +36% | | Sales and marketing expenses | 27,209.9 | 26,049.1 | +4.5% | | Research and development expenses | 3,591.3 | 2,909.2 | +23.4% | [Cash Flow and Balance Sheet Highlights](index=2&type=section&id=Cash%20Flow%20and%20Balance%20Sheet%20Highlights) Net cash from operating activities decreased 50.6% to RMB 21.6 billion, while liquidity remained strong with RMB 387.1 billion in cash and short-term investments - Net cash from operating activities decreased by **50.6% YoY** to **RMB 21.6 billion**, mainly due to lower net income and changes in working capital[11](index=11&type=chunk) - The company's cash, cash equivalents, and short-term investments stood at **RMB 387.1 billion** as of June 30, 2025, an increase from RMB 331.6 billion at the end of 2024[11](index=11&type=chunk) [Detailed Financial Statements](index=3&type=section&id=Detailed%20Financial%20Statements) Detailed financial statements present total assets of RMB 567.2 billion, Q2 2025 revenues of RMB 104.0 billion, net income of RMB 30.8 billion, and operating cash flow of RMB 21.6 billion [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets were RMB 567.2 billion, liabilities RMB 205.3 billion, and shareholders' equity RMB 361.9 billion, driven by increased short-term investments Balance Sheet Summary (in thousands RMB) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total Assets | 567,156,296 | 505,034,316 | | Total Liabilities | 205,292,640 | 191,721,192 | | Total Shareholders' Equity | 361,863,656 | 313,313,124 | [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Q2 2025 revenues were RMB 104.0 billion (up 7%), but a 36% cost increase led to a 21% operating profit decline to RMB 25.8 billion and a 4% net income decrease to RMB 30.8 billion Q2 Income Statement Highlights (in thousands RMB) | Item | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Revenues | 103,984,832 | 97,059,531 | | Operating profit | 25,792,899 | 32,564,536 | | Net income | 30,753,457 | 32,009,355 | Earnings Per ADS (in RMB) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Basic EPS | 22.01 | 23.14 | | Diluted EPS | 20.75 | 21.61 | [Condensed Consolidated Statements of Cash Flows](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q2 2025 net cash from operating activities decreased to RMB 21.6 billion, with RMB 27.0 billion used in investing, and total cash balance at RMB 129.9 billion Q2 Cash Flow Summary (in thousands RMB) | Cash Flow Activity | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net cash generated from operating activities | 21,641,656 | 43,792,640 | | Net cash used in investing activities | (27,021,892) | (42,622,100) | | Net cash generated from financing activities | 353 | 728 | [Non-GAAP Financial Measures Reconciliation](index=2&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliation) Non-GAAP metrics, excluding non-cash charges, show Q2 2025 operating profit at RMB 27.7 billion (down 21%) and net income at RMB 32.7 billion (down 5%) - The company uses non-GAAP financial measures, which exclude share-based compensation expenses and fair value changes of certain investments, to help identify underlying business trends[14](index=14&type=chunk)[15](index=15&type=chunk) Reconciliation of GAAP to Non-GAAP Metrics (Q2 2025 vs Q2 2024, in thousands RMB) | Metric | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Non-GAAP Operating Profit | 27,747,793 | 34,987,298 | -21% | | Non-GAAP Net Income | 32,708,351 | 34,432,134 | -5% | | Non-GAAP Diluted EPS (RMB) | 5.52 | 5.81 | -5% | | Non-GAAP Diluted ADS (RMB) | 22.07 | 23.24 | -5% | [Supplementary Information](index=2&type=section&id=Supplementary%20Information) This section provides investor details, including an earnings call webcast, a safe harbor statement, and a corporate profile of PDD Holdings - An earnings conference call is scheduled for **7:30 AM ET on August 25, 2025**, to discuss the financial results[13](index=13&type=chunk) - The report contains forward-looking statements subject to risks and uncertainties, as detailed in the 'Safe Harbor Statements' section[18](index=18&type=chunk) - PDD Holdings is a multinational commerce group aiming to bring more businesses and people into the digital economy[19](index=19&type=chunk)