PDD(US:PDD) Xin Lang Ke Ji·2025-05-27 13:34Core Viewpoint - Pinduoduo reported a total revenue of 95.6722 billion yuan for Q1 2025, reflecting a year-on-year growth of 10%, while net profit attributable to ordinary shareholders decreased by 45% to 16.916 billion yuan [1][2]. Financial Performance - Total revenue for Q1 2025 was 95.6722 billion yuan, a 10% increase compared to the previous year [1]. - Net profit attributable to ordinary shareholders was 16.916 billion yuan, down 45% year-on-year [1]. Management Insights - Management acknowledged the pressure on platform merchants due to macro policy changes, indicating a need for proactive measures to support them [3]. - The company plans to enhance its supply chain and operational capabilities while focusing on high-quality development and compliance [3][4]. - A "100 billion support plan" was introduced to assist small and medium-sized merchants in stabilizing sales and reducing operational costs [4][5]. Business Strategy - The company aims to deepen service levels and expand into new categories and services to build a more robust platform ecosystem [4]. - Pinduoduo emphasizes the importance of supporting merchants to ensure long-term stability and better consumer service [5]. - The company is committed to lowering merchant fees and providing marketing support to enhance the ecosystem, viewing these expenses as long-term investments [6]. Future Outlook - The management expects ongoing challenges to profitability due to the mismatch between investment and return cycles, which may persist for a longer duration [6]. - The focus remains on long-term value creation rather than short-term financial performance, with plans to expand support initiatives for more small businesses [6].