PDD(US:PDD) 2 1 Shi Ji Jing Ji Bao Dao·2025-11-24 05:41Core Viewpoint - Pinduoduo's third-quarter financial results reflect a strategic shift towards long-term ecological development, prioritizing investment over short-term profit, as evidenced by the "100 billion support" initiative aimed at enhancing merchant growth and platform sustainability [1][4][8] Financial Performance - Pinduoduo reported Q3 revenue of 108.3 billion yuan, a 9% year-on-year increase, marking the first time growth has fallen to single digits [1][2] - Net profit attributable to ordinary shareholders was 29.33 billion yuan, up 17% year-on-year, although this performance fell short of market expectations [1][2] - The company's operating profit for the quarter was 27.1 billion yuan, down from 28 billion yuan in the same period last year, with an operating margin of 25%, down from 27% [3] Investment Strategy - The "100 billion support" plan, launched in April, involves investing over 100 billion yuan in resources to support merchants over three years, which has led to a 47% increase in agricultural product sales and a 31% rise in the number of post-95 merchants [1][6] - Pinduoduo's R&D expenses increased by 41% to 4.33 billion yuan, reflecting a commitment to enhancing technological infrastructure and employee-related costs [2] Market Positioning - Pinduoduo is adopting a low-profile approach in a competitive landscape, choosing not to engage in the food delivery wars or heavily promote AI initiatives, instead focusing on long-term ecological investments [1][4] - The company aims to balance growth with support for the industry, particularly in agriculture, by leveraging its platform to enhance supply chain quality and efficiency [5][6] Industry Impact - The "100 billion support" initiative has positively influenced the agricultural sector, with significant investments in local specialties and initiatives to improve product quality and market access [5][6] - The number of post-00 merchants increased by 44%, indicating a growing trend of younger entrepreneurs entering the market, which is expected to drive further innovation and quality improvements [7] Future Outlook - Pinduoduo's leadership emphasizes a commitment to long-term value creation and social responsibility, indicating a strategic pivot from mere scale to sustainable ecological development [4][8] - The company plans to continue investing in its platform and industry, focusing on high-quality development and user value creation as it moves into its next decade [8]