Core Viewpoint - Pinduoduo's recent quarterly report shows a slowdown in growth, with management indicating a willingness to sacrifice short-term profits for long-term development, leading to a decline in stock price [2][5]. Financial Performance - In Q3, Pinduoduo achieved total revenue of RMB 108.28 billion, a year-on-year increase of 9% [9]. - The net profit for the same period was RMB 29.33 billion, reflecting a year-on-year growth of 17% [9]. - The company reported a gross margin of 56.7% and a net profit margin of 27.1%, indicating strong profitability [17]. Revenue Sources - Pinduoduo's revenue primarily comes from two segments: online marketing services and transaction services [12]. - The growth rate of online marketing services is declining and is approaching single digits, while transaction service revenue has been consistently in single digits this year [12][15]. Strategic Decisions - Management has indicated that Pinduoduo may face temporary disadvantages compared to competitors, which could lead to financial pressure [5]. - The company has implemented a fee reduction plan for merchants and increased subsidies, which has impacted commission income [15]. Cash Reserves - As of September 30, 2025, Pinduoduo's cash and short-term investments totaled RMB 423.8 billion, an increase of RMB 92.2 billion from the end of 2024 [21]. - This cash reserve is significantly higher than that of competitors like Alibaba and JD.com, positioning Pinduoduo as a financially strong player in the market [21].