PDD(US:PDD) Sou Hu Cai Jing·2025-11-24 08:27Core Viewpoint - Pinduoduo's Q3 2025 financial report shows a revenue of 108.3 billion yuan, with a year-on-year growth of 9%, indicating a slowdown in growth to single digits [2][3]. Revenue Breakdown - The revenue primarily comes from two core businesses: online marketing services and other income at 53.35 billion yuan (up 8% year-on-year) and transaction service revenue at 54.93 billion yuan (up 10% year-on-year) [3]. Profitability - Operating profit (non-GAAP) for the quarter was approximately 27.08 billion yuan, with a year-on-year growth of only 1%. Adjusted net profit attributable to ordinary shareholders was 31.4 billion yuan, reflecting a year-on-year increase of 14% but a decline compared to the previous quarter [4]. Market Reaction - Following the earnings release, Pinduoduo's stock initially rose nearly 4% in pre-market trading but subsequently turned negative [5]. Management Insights - Pinduoduo's executives highlighted that the revenue growth slowdown reflects ongoing changes in the competitive landscape and external uncertainties. They emphasized the importance of long-term value and social responsibility, indicating a willingness to sacrifice short-term profits for sustainable growth [5]. Strategic Initiatives - The "100 Billion Support" initiative, launched in April 2025, aims to invest over 100 billion yuan in resources for merchants and the agricultural sector over three years. This initiative has already been implemented for two consecutive quarters, with management believing it will create long-term value despite short-term revenue pressure [6]. Agricultural Focus - Pinduoduo's agricultural initiatives have shown significant results, with agricultural product sales increasing by 47% year-on-year in the first half of the year. The company has also provided substantial subsidies and resources to support local farmers and merchants [6][9]. Digital Transformation - The company is assisting traditional manufacturing industries in their transformation through various support measures, helping businesses improve research and production efficiency. This includes initiatives in regions like Hunan, where local industries are shifting from being mere OEMs to developing their own brands [7][8]. R&D Investment - Pinduoduo's R&D expenses surged to 4.3322 billion yuan, a 41% year-on-year increase, indicating a strategic shift towards technology investment for long-term growth. In contrast, sales and marketing expenses slightly decreased, reflecting a focus on sustainable development rather than short-term marketing [8]. Future Vision - Pinduoduo's leadership envisions the next decade as a period focused on stability and long-term value creation, aiming to build a supply chain model akin to Costco while integrating entertainment and social elements similar to Disney. The company is committed to enhancing its operational efficiency and supporting new farmers and logistics improvements [10].