Summary of PDD Holdings Conference Call Company Overview - **Company**: PDD Holdings - **Industry**: E-commerce Key Points and Arguments Financial Performance - In Q3 2025, PDD Holdings reported total revenue of **1,080.3 billion RMB**, a **9%** year-over-year increase, driven by growth in online marketing services and transaction services [4][10] - Online marketing services and other business revenue reached **533 billion RMB**, growing **8%** year-over-year, despite increased market competition and investments in the merchant ecosystem [2][4] - Transaction service revenue for Q3 was **549 billion RMB**, reflecting a **10%** increase year-over-year [9] - Total operating costs rose to **468 billion RMB**, with operating profit at **250 billion RMB** [9][10] - Non-GAAP operating profit was **271 billion RMB**, with a profit margin of **25%**, down from **27%** year-over-year [10] Strategic Initiatives - PDD is investing heavily in the agricultural supply chain, with agricultural CR growing **47%** year-over-year and a **30%** increase in post-2000 agricultural merchants [2][6] - The company launched a **10 billion RMB** subsidy and **20 billion RMB** traffic support during the "Harvest Season" to boost agricultural sales [2][6] - To combat homogenization in competition, PDD initiated a **100 billion RMB** support plan to enhance service quality and operational efficiency for merchants [2][7] Market Challenges and Regulatory Environment - PDD faces challenges from trade policies, tax regulations, and data security, prompting the company to strengthen internal capabilities and compliance [3][12] - The management acknowledges that these regulatory uncertainties could impact both short-term and long-term financial performance [12] Future Outlook - Management believes the online retail industry is entering a new investment cycle, focusing on creating unique value and high-quality services for consumers [11] - PDD plans to continue investing in its platform ecosystem, including the **1,000 billion RMB** support plan, despite potential short-term financial fluctuations [11][15] - The company aims to adapt to changing market conditions and consumer demands through technological upgrades and service enhancements [8][15] Agricultural and Merchant Ecosystem Investments - PDD has made significant investments in the agricultural sector, enhancing distribution efficiency and supporting farmers [5][6] - The company has initiated strategic measures like the **1,000 billion RMB** support plan to modernize agriculture and improve logistics for remote areas [13][14] Consumer Trends - Recent observations indicate a positive trend in consumer spending, with e-commerce demand improving during promotional periods [15] - PDD is committed to long-term growth, even if it means sacrificing short-term profits to build a sustainable platform ecosystem [15] Additional Important Information - The company has established a merchant protection committee to optimize the operating environment for merchants [11] - PDD's focus on high-quality development and social responsibility is evident in its initiatives aimed at rural revitalization and industry upgrades [13][14]