Core Viewpoint - Pinduoduo's Q2 2025 financial report shows a decline in both revenue and profit, indicating a continued downward trend in performance amid intensified competition in the e-commerce sector [1][3][19] Financial Performance - In Q2 2025, Pinduoduo achieved revenue of 104 billion RMB, a year-on-year decrease of 7%, while Non-GAAP net profit was 32.7 billion RMB, down 5% year-on-year [1][3] - The company's online marketing service revenue was 55.7 billion RMB, up 13% year-on-year, but the growth rate has slowed compared to the previous quarter [5][9] - Transaction service revenue reached 48.3 billion RMB, with a modest growth of 0.7%, significantly slowing due to changes in revenue recognition from a fully managed to a semi-managed business model [5][7] Profitability Analysis - Pinduoduo's Non-GAAP operating profit for Q2 2025 was 27.7 billion RMB, a decline of 21% year-on-year, but the operating profit margin improved by 8 percentage points to 27% [3][9] - The company’s marketing expenses grew less than 5% year-on-year, significantly down from 33.4 billion RMB in the previous quarter, indicating a strategic reduction in spending [9][11] - Interest income rebounded to 10.4 billion RMB, helping to offset lower profits from core operations [9][11] Strategic Focus - Pinduoduo is prioritizing long-term investments in its ecosystem over short-term profit maximization, with initiatives like the "100 billion subsidy" and "1 trillion support" plans aimed at enhancing merchant support [11][15] - The company is focusing on supply-side reforms to address the challenges of homogenized offerings and to better match consumer demand [12][13] - Pinduoduo's approach contrasts with competitors who are expanding into new markets like food delivery, allowing it to concentrate on strengthening its core e-commerce business [19][21] Future Outlook - The company anticipates that the narrowing of national subsidies will provide growth opportunities for its core online marketing services [7][19] - Pinduoduo's long-term strategy involves balancing short-term profitability with sustainable growth, which will be critical for its future performance in the capital markets [21]

Core Viewpoint - Pinduoduo is focusing on long-term ecological construction and merchant support rather than competing in the immediate retail sector, showcasing a unique approach in the Chinese e-commerce industry [1][2][10] Financial Performance - In Q2 2025, Pinduoduo reported revenue of 1,040 billion yuan, with a year-on-year growth rate slowing to 7%, and net profit of 307.5 billion yuan, marking a decline for two consecutive quarters [2][3] - The company has introduced the "100 billion support" initiative to enhance merchant support and reduce costs, indicating a commitment to long-term development despite short-term performance fluctuations [2][3] Strategic Initiatives - Pinduoduo has implemented various initiatives since last year, including "100 billion reduction," "e-commerce westward," and "new quality supply," aimed at helping millions of merchants improve efficiency [3][4] - The "100 billion reduction" initiative has saved merchants significant operational costs, with some merchants saving millions in promotional fees [3][4] Market Impact - The "New Quality Supply" initiative has led to a 47% year-on-year increase in agricultural product sales on the platform, with specific categories like seasonal fruits and seafood seeing growth rates of 51% and 48%, respectively [4] - Pinduoduo's support has revitalized traditional industries, as seen in the case of brands like Dahuangfeng and Gongniu, which have successfully leveraged the platform to reach broader markets and achieve significant sales growth [7][9] Long-term Vision - Pinduoduo's leadership emphasizes a focus on high-quality development and creating space for long-term industry growth, rather than chasing short-term trends [6][10] - The company aims to enhance market competitiveness for merchants through digital technology and innovative business models, contributing to the transformation and upgrading of traditional industries [6][10]