利空突袭！刚刚，暴跌超20%！

Core Viewpoint - The market reaction to Pinduoduo's disappointing earnings was severe, with the stock price dropping over 20% in pre-market trading following the release of the Q1 financial report, which showed significant declines in both revenue and profit compared to expectations [1][2]. Financial Performance - Pinduoduo reported Q1 revenue of 956.7 billion RMB, a 10% year-on-year increase, but below the expected 1,016 billion RMB [2][5]. - The net profit for the quarter was 147.42 billion RMB, a dramatic 47% decline year-on-year, while the adjusted net profit was 169.2 billion RMB, falling short of the anticipated 278.8 billion RMB [2][5]. - The operating profit was 160.856 billion RMB, with an operating margin of 17%, and the cash flow from operating activities was 155.2 billion RMB [2][3]. Revenue Structure - Online marketing service revenue reached 487.22 billion RMB, up 15% year-on-year, exceeding expectations [2]. - Transaction service revenue was 469.50 billion RMB, a 6% increase year-on-year, but below the expected 542.3 billion RMB, indicating a slowdown in transaction volume growth [2][5]. Cost and Expenses - Sales and marketing expenses surged to 334.03 billion RMB, a 43% increase year-on-year, primarily due to heightened competition and rising customer acquisition costs [3]. - Operating costs rose to 409.47 billion RMB, a 25% increase, driven by higher fulfillment and payment processing costs [3]. Strategic Initiatives - Pinduoduo has implemented a "1,000 billion support" strategy to assist merchants, indicating a commitment to long-term investment despite short-term profit sacrifices [5][6]. - The management emphasized the importance of supporting merchants through challenging market conditions, focusing on high-quality development and cost reduction initiatives [6][7]. Management Commentary - Pinduoduo's leadership acknowledged the pressures faced by merchants and the need for substantial investments in the platform's ecosystem to navigate external challenges [6][7]. - The company aims to prioritize the interests of users and merchants, believing that this approach will foster a healthier platform ecosystem in the long run [6][7].