PDD(US:PDD) 证券时报·2025-05-27 13:14Core 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][5][6]. Financial Performance - Pinduoduo reported revenue of 957 billion yuan for Q1 2025, marking a 10% increase compared to the previous year, continuing a trend of slowing growth [1][5]. - 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 decline of 45% [1][5][6]. - The decline in net profit is primarily due to the company's proactive "trillion support" strategy, which includes commission reductions and other forms of merchant support [6]. Strategic Investments - Pinduoduo's chairman and co-CEO, Chen Lei, emphasized that the company is willing to sacrifice short-term profits to invest in long-term value creation for merchants [2][6]. - The company has a healthy cash flow, with cash and cash equivalents amounting to 1,872 billion yuan, providing ample resources for long-term strategic investments [7]. Merchant Support Initiatives - Pinduoduo launched the "trillion support" strategy to assist merchants, which includes significant reductions in store security deposits and increased support for small and medium-sized businesses [9][10]. - The "Merchant Rights Protection Committee" was established to better understand merchant needs and enhance service mechanisms [9]. - The company has initiated various subsidy policies, including a 100 billion yuan consumer coupon program to stimulate spending across all product categories [10]. Market Response - Following the financial report, Pinduoduo's stock price fell over 20% in pre-market trading, dropping below 100 USD per share [3].