PDD(US:PDD) Zheng Quan Shi Bao·2025-05-27 13:19Core Viewpoint - Pinduoduo's Q1 2025 financial report shows a revenue growth of 10% year-on-year, but a significant net profit decline of 47%, attributed to increased strategic investments aimed at supporting merchants [1][4]. Financial Performance - Pinduoduo reported a revenue of 957 billion yuan for Q1 2025, marking a 10% increase year-on-year, continuing a trend of slowing growth [1][4]. - The net profit attributable to ordinary shareholders was approximately 147 billion yuan, down 47% year-on-year, while the Non-GAAP net profit was 169.2 billion yuan, a 45% decline [4]. - The decline in net profit is primarily due to the company's proactive "trillion support" strategy, which includes commission reductions and enhanced support for merchants [4]. Strategic Initiatives - Pinduoduo has launched the "trillion support" strategy to assist merchants, which includes measures like commission reductions and supply chain optimization [5][6]. - The company established the "Merchant Rights Protection Committee" to better understand merchant needs and improve service mechanisms [5]. - The "trillion support" initiative aims to extend support from top-tier to small and medium-sized merchants, creating more operational and innovative space for them [5][6]. Market Response - Following the financial report, Pinduoduo's stock price fell over 20% in pre-market trading, dropping below $100 per share [2].