PDD(PDD) - 2023 Q2 - Quarterly Report

Financial Performance - Total revenues for Q1 2023 were RMB37,637.1 million (US$5,480.4 million), an increase of 58% from RMB23,793.7 million in the same quarter of 2022[27]. - Operating profit for the quarter was RMB6,929.0 million (US$1,008.9 million), a significant increase of 222% from RMB2,154.4 million in Q1 2022[2]. - Non-GAAP operating profit was RMB8,462.4 million (US$1,232.2 million), up 130% from RMB3,677.2 million in the same quarter of 2022[6]. - Revenues from transaction services reached RMB10,392.6 million (US$1,513.3 million), an 86% increase from RMB5,591.4 million in Q1 2022[4]. - Revenues from online marketing services and others were RMB27,244.4 million (US$3,967.1 million), a 50% increase from RMB18,202.3 million in the same quarter of 2022[29]. - Net income attributable to ordinary shareholders for Q1 2023 was RMB 8,101.0 million (US$ 1,179.6 million), a 212% increase from RMB 2,599.5 million in Q1 2022[41]. - Non-GAAP net income attributable to ordinary shareholders for Q1 2023 was RMB 10,126.4 million (US$ 1,474.5 million), up 141% from RMB 4,200.4 million in Q1 2022[41]. - Basic earnings per ADS were RMB6.13 (US$0.89), with diluted earnings per ADS at RMB5.55 (US$0.81), compared to RMB2.06 and RMB1.84 in Q1 2022[32]. Expenses - Sales and marketing expenses increased to RMB16,259.7 million (US$2,367.6 million), a 45% rise from RMB11,219.1 million in Q1 2022[5]. - The total operating expenses for the quarter were RMB19,582.7 million (US$2,851.5 million), a 35% increase from RMB14,479.7 million in the same quarter of 2022[30]. - Total costs of revenues for Q1 2023 were RMB 11,125.3 million (US$ 1,620.0 million), an increase of 55% from RMB 7,159.6 million in Q1 2022[44]. - Research and development expenses for Q1 2023 were RMB 2,506.7 million (US$ 365.0 million), a slight decrease of 6% from RMB 2,668.5 million in Q1 2022[59]. - General and administrative expenses increased by 38% to RMB 816.4 million (US$ 118.9 million) in Q1 2023, compared to RMB 592.1 million in the same quarter of 2022[45]. Cash Flow and Investments - Cash, cash equivalents, and short-term investments totaled RMB157.0 billion (US$22.9 billion) as of March 31, 2023, compared to RMB149.4 billion as of December 31, 2022[7]. - Net cash generated from operating activities was RMB 1,338.0 million (US$ 194.8 million) in Q1 2023, a significant improvement from net cash used of RMB 9,068.1 million in Q1 2022[62]. - The company reported a decrease in cash, cash equivalents, and restricted cash of RMB 21,630.4 million (US$ 3,149.6 million) for Q1 2023[62]. - The company plans to increase investments to support quality growth, indicating a focus on long-term sustainability[42]. Strategic Initiatives - The company is launching a '10 Billion Ecosystem Initiative' to support quality merchants and foster high-quality growth[3]. - The weighted average number of diluted ordinary shares outstanding was 5,688,094 for Q1 2023, compared to 5,850,378 in the same quarter of 2022[41].