Core Viewpoint - The company prioritizes the interests of merchants and consumers over short-term platform profits [2][22]. Financial Performance - In Q1 2025, the company reported revenue of 957 billion, a 10% year-on-year increase, which was below market expectations of 1,016 billion [3]. - Operating profit for the quarter was 161 billion, down 38% year-on-year, while net profit attributable to ordinary shareholders was 147 billion, a 47% decline [4]. - Revenue from online marketing services and other services was 487 billion, a 15% increase from 425 billion in Q1 2024, exceeding the market expectation of 480 billion [6]. - Revenue from transaction services was 470 billion, a 6% increase from 444 billion in Q1 2024, but fell short of the expected 542.3 billion by over 70 billion [6]. Strategic Focus - The company is committed to a high-quality development strategy, sacrificing short-term profits for long-term investments [7][8]. - Initiatives such as "100 billion subsidy," "e-commerce westward," and "new quality merchant support plan" have been launched to support merchants [7]. - The company emphasizes the importance of supporting merchants to create a better platform ecosystem, as stated by CEO Chen Lei [8][22]. Marketing and Support Initiatives - Marketing expenses in Q1 reached 334 billion, a 43% increase from 234 billion in the same period last year, exceeding market expectations [12]. - The "100 billion subsidy" program has significantly reduced store security deposits for various categories and increased support for small and medium-sized merchants [13]. - The company has introduced a "merchant rights protection committee" to enhance communication and support for merchants [23]. Market Position and Future Outlook - Despite the overall industry growth slowing to single digits, the company managed to maintain a 10% growth rate, which is considered commendable [10]. - The company's stock price fell nearly 14% following the earnings report, reflecting market skepticism about its long-term strategy [11]. - The company is focused on creating a resilient future by prioritizing merchant growth, which in turn benefits consumers and ensures sustainable platform development [22]. Industry Context - The company has maintained a consistent focus on e-commerce, avoiding diversifications into other sectors, and has reinvested profits into merchant support initiatives [26][27]. - The company aims to expand its support to small and medium-sized merchants, enhancing their operational efficiency and reducing costs [27]. - The company's initiatives have led to significant growth in sales for many merchants, demonstrating the effectiveness of its support strategies [29][30].

Core Viewpoint - Pinduoduo reported disappointing Q1 2025 financial results, with a significant decline in net profit, indicating a strategic shift towards long-term goals at the expense of short-term performance [1][5]. Financial Performance - Total revenue for the quarter was 956.7 billion yuan, representing a year-on-year growth of 10%, but the growth rate has slowed down [1]. - Net profit attributable to ordinary shareholders was 147.4 billion yuan, a decrease of 47% year-on-year [3]. - Online marketing services and other revenues increased by 15% to 487.2 billion yuan, while transaction service revenue growth slowed to 6%, totaling 469.5 billion yuan [3][4]. Strategic Initiatives - Pinduoduo's chairman, Chen Lei, emphasized the need to sacrifice short-term performance to support merchants during market fluctuations, introducing a "trillion support" strategy to reduce costs and commissions for merchants [4][5]. - The company aims to lead the e-commerce industry into a new phase of "comprehensive merchant support" through substantial financial investments [4]. Market Challenges - The company experienced a 20% drop in stock price before the market opened, closing down 13.64% on the reporting day, reflecting investor concerns over the slowing growth [5]. - Pinduoduo's global business, Temu, is facing challenges, and the company has not disclosed its specific revenue figures, raising questions about its future growth potential [5]. Future Outlook - Analysts suggest that Pinduoduo may need to explore new strategies beyond subsidies and low pricing to regain its previous growth momentum [7][9]. - The company is encouraged to seek new opportunities globally to delay reaching its growth ceiling, as traditional methods of attracting users are becoming less effective [7][9].

Core Viewpoint - Pinduoduo (PDD.US) reported a revenue of 95.7 billion yuan for Q1 2025, reflecting a 10% year-on-year growth, although the growth rate has slowed down due to external environmental changes and ongoing investments in high-quality development [1] Group 1: High-Quality Development Strategy - Pinduoduo has intensified its high-quality development strategy this year, launching the "100 Billion Subsidy" and the new "100 Billion Support" strategy to reduce costs for merchants and promote industrial transformation [1][2] - The management emphasizes the importance of supporting merchants through short-term challenges, indicating a willingness to sacrifice short-term performance for long-term health of the platform [2] Group 2: Merchant Support Initiatives - The establishment of the "Merchant Rights Protection Committee" aims to address merchant needs and enhance service mechanisms, with initiatives like regular communication and violation warning functions introduced [3][5] - The "100 Billion Support" strategy has led to significant reductions in store security deposits for various categories, alongside increased support for small and medium-sized merchants [5][6] Group 3: Consumer Benefits and Market Dynamics - The "100 Billion Support" plan includes consumer subsidies, with initiatives like the "100 Billion Merchant Feedback Plan" and various coupon campaigns to enhance consumer demand and improve supply-demand matching [6][9] - Pinduoduo is exploring innovative models like "platform direct subsidies" to ensure competitive pricing for consumers while safeguarding merchant interests [6] Group 4: Agricultural and Technological Advancements - The "2025 Good Specialty Products" initiative focuses on enhancing support for agricultural merchants, implementing customized solutions to improve the value of local specialties and boost farmer incomes [9][10] - The establishment of the "Digital Business + New Farmers" technology center aims to drive innovation in agricultural operations, addressing industry pain points through automation and data-driven solutions [10]