Core Insights - The internet industry in 2025 is experiencing a resurgence reminiscent of a decade ago, with local life sectors seeing new competitors and aggressive subsidies impacting user behavior and financial reports [1] - Pinduoduo is maintaining a low profile while focusing on its core e-commerce business, marking its second decade with a significant initiative called the "Billion Support Plan" aimed at enhancing the quality of the e-commerce ecosystem [1][2] Group 1: Pinduoduo's Strategic Initiatives - Pinduoduo's "Billion Support Plan" launched in April 2025 aims to transform and upgrade industrial belts, enhance merchant quality, and improve user experience, fostering a win-win commercial cycle [1] - The company emphasizes a consumer-oriented approach and social responsibility, aligning its growth with public interests and sustainable ecosystem development [2] Group 2: Agricultural Product Success Stories - The "Multi-Quality Specialty Products" initiative has led to a 47% year-on-year increase in agricultural product sales on Pinduoduo, with a 54% growth in quality SKU offerings [7] - The brand "Shanwangguo," which specializes in prickly pear juice, achieved sales of 3 million yuan in 2024, with plans to increase e-commerce sales to 70% by 2025 [6][7] Group 3: New Quality Supply and Merchant Growth - The "New Quality Supply" initiative has empowered numerous merchants, leading to a 31% increase in 95 post-90s merchants and a 44% increase in post-00s merchants [13] - Pinduoduo's support has enabled merchants to reduce operational costs and improve product quality, resulting in significant sales growth and brand development [10][11] Group 4: Expansion of Shipping and Logistics - Pinduoduo has expanded its "free shipping zone" to include remote areas, improving logistics efficiency and reducing costs for both merchants and consumers [14][16] - The introduction of new logistics strategies has significantly reduced delivery times for remote regions, enhancing the overall shopping experience [16][18] Group 5: Long-term Vision and Commitment - Pinduoduo is committed to optimizing its platform ecosystem, focusing on connecting quality merchants and products with broader consumer markets, and addressing real-world challenges faced by consumers and industries [18] - The company is willing to sacrifice short-term profits to create a more expansive development space for its platform ecosystem, reflecting its long-term investment strategy [18]

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]