Financial Data and Key Metrics Changes - The company reported total revenues of RMB 108.3 billion for Q3 2025, representing a 9% year-over-year increase, driven by growth in online marketing services and transaction services [26] - Operating profit for the quarter was RMB 25 billion, compared to RMB 24.3 billion in the same quarter last year, while non-GAAP operating profit was RMB 27.1 billion, down from RMB 28 billion year-over-year [28][29] - Net income attributable to ordinary shareholders was RMB 29.3 billion, up from RMB 25 billion in the same quarter last year, with diluted earnings per ADS increasing to RMB 19.7 from RMB 16.91 [29] Business Line Data and Key Metrics Changes - Revenues from online marketing services were RMB 53.3 billion, up 8% year-over-year, while transaction services revenues were RMB 54.9 billion, up 10% from the same quarter last year [26] - Total costs of revenues increased 18% to RMB 46.8 billion, primarily due to higher fulfillment fees, bandwidth, server costs, and payment processing fees [27] Market Data and Key Metrics Changes - The company observed a 47% year-over-year growth in agriculture sales, with a notable increase in the number of agriculture merchants, particularly those born in the 2000s, which grew over 30% year-over-year [19] - The number of merchants aged 25 to 30 grew by 31% year-over-year, and high-quality SKUs increased by over 50% year-over-year, indicating a shift towards high-quality development in key industrial belts [23] Company Strategy and Development Direction - The company aims to prioritize long-term value creation over short-term results, focusing on high-quality growth and enhancing core capabilities to better serve consumers and merchants [4][37] - Strategic initiatives such as the 100 billion support program and the Duoduo Premium Produce campaign are designed to support merchants and drive industry upgrades [10][44] - The company is committed to adapting to regulatory changes and enhancing compliance to ensure sustainable development in global markets [41][42] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the intense competition in the e-commerce sector and emphasized the need for continuous investment in the platform ecosystem to foster long-term growth [15][40] - The company expects financial performance to fluctuate in the coming quarters due to ongoing investments and a complex global environment [11][47] Other Important Information - The company has made significant investments in R&D, reaching RMB 3.7 billion, reflecting a commitment to improving core technology capabilities [28] - The company has established a Merchant Protection Committee to enhance communication and support for merchants [35] Q&A Session Summary Question: Industry trends and PDD's online marketing service revenue slowdown - Management noted that the e-commerce sector is evolving rapidly, and competition is unavoidable, focusing on creating unique value for consumers and merchants [34][35] Question: Regulatory scrutiny in global operations - Management emphasized the importance of integrating with local regulations and enhancing compliance to ensure sustainable development in each market [41][42] Question: Investment in the merchant ecosystem - Management highlighted ongoing investments in merchant support initiatives and the positive feedback received from these ecosystem investments [45][46] Question: Upcoming investment pace and profitability level - Management indicated that increased investments in the platform ecosystem may challenge revenue and profit, but the focus remains on long-term strategic goals [47][48]

Financial Data and Key Metrics Changes - In Q2 2025, total revenues increased by 7% year over year, driven by growth in online marketing services and transaction services [23] - Operating profit declined by 21% year over year, reflecting the company's commitment to long-term investments over short-term financial results [6][28] - Non-GAAP operating profit margin decreased to 27% from 36% in the same quarter last year [28] - Net income attributable to ordinary shareholders decreased by 4% year over year [28] Business Line Data and Key Metrics Changes - Revenues from online marketing services increased by 30% year over year [24] - Revenues from inspection services grew by 1% compared to the same quarter last year [24] - Significant investments in merchant support initiatives impacted revenue growth and profit margins [14][51] Market Data and Key Metrics Changes - The company observed a 40% growth in order numbers from remote regions due to logistic support initiatives [7] - The June 18 shopping festival saw record sales across multiple categories, indicating strong consumer demand [10][67] Company Strategy and Development Direction - The company launched a RMB100 billion support program to enhance the merchant ecosystem and prioritize long-term value creation [5][14] - Focus on high-quality growth by investing in consumer experience and merchant services [11][21] - Commitment to exploring new business models and markets to navigate complex business environments [10][41] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the rapid changes in the external environment and the need for substantial investments to support merchants [5][11] - The company expects fluctuations in profitability due to ongoing investments and competitive pressures [39][63] - Confidence in the resilience of China's consumer market, with steady growth in retail sales and online penetration [65] Other Important Information - The company is actively engaging with agricultural regions and manufacturing belts to provide tailored support to merchants [16][19] - The Doudu grocery business is viewed as a long-term investment despite challenges faced by competitors [52][56] Q&A Session Summary Question: Insights on revenue growth rate narrowing and competitive dynamics - Management noted intensified competition leading to slower revenue growth and a decline in operating profit, emphasizing a long-term investment approach to strengthen the ecosystem [36][38] Question: Future directions for global business and growth opportunities - Management highlighted the need for continuous investment in supply chain capabilities and localized operations to adapt to changing consumer demands and regulatory requirements [41][42] Question: Key changes observed since the launch of the RMB100 billion support program - Management reported early positive effects in agriculture and manufacturing sectors, with a focus on reducing operating costs for merchants [49][51] Question: Company's view on the Doudu grocery business - Management expressed commitment to increasing investments in the grocery business, focusing on supply chain improvements and meeting consumer demand for fresh produce [53][56] Question: Stability of profit margins and consumer demand trends - Management indicated that Q2 profits benefited from e-commerce seasonality and that future profitability may fluctuate due to ongoing investments [61][63]

Group 1: High-Quality Development - Luoyang Bearing Group Co., Ltd. has heavily invested in scientific and technological research, achieving significant industrial upgrades [2][4] - The company has established a leading domestic bearing test platform for various sectors, including aerospace and new energy vehicles, and has fully digitalized its product processes using advanced technologies like 5G [3][4] - During the 14th Five-Year Plan, the firm achieved 13 sci-tech milestones that meet international standards, with its wind turbine main bearings capturing over 40% of the domestic market share [4] Group 2: Governance Efficiency - Henan Province has improved grassroots governance through law-based practices and smart governance, enhancing public service quality [14][15] - The province has implemented measures to reduce bureaucracy and streamline community work processes, thereby alleviating burdens on local governance [15] - E-governance initiatives have been rapidly advanced across the country, introducing one-stop service platforms to modernize governance and improve administrative efficiency [15]

Core Viewpoint - PDD Holdings reported mixed financial results for Q4 and fiscal 2024, with revenues of $15.15 billion, a 24% year-over-year increase, but missing analyst expectations by approximately $746 million. Earnings per share were $2.78, beating estimates by 6 cents [1][2]. Financial Performance - The company is focusing on high-quality development and ecosystem investments over short-term financial gains, leading to a significant moderation in revenue growth compared to previous quarters [2][6]. - Non-GAAP operating profit increased 14% year-over-year to RMB28 billion, but the operating profit margin declined to 24% from 28% in the same quarter of 2023 due to substantial investments in merchant support and logistics [7][12]. Stock Performance - PDD's stock has gained 11.1% over the past six months, outperforming the Zacks Retail-Wholesale sector's return of 1.9% [3]. Valuation Insights - PDD stock trades at a forward P/E of 10.1x, significantly below the Zacks Internet-Commerce industry average of 21.4x, indicating potential market concerns rather than an overlooked opportunity [8][9]. - The company has a robust cash position of RMB331.6 billion (approximately $45.4 billion) as of December 31, 2024, although cash generated from operating activities declined to RMB29.5 billion in Q4 2024 from RMB36.9 billion in Q4 2023 [12]. Future Outlook - Management has indicated a continued focus on ecosystem investments over immediate financial optimization, with expectations of fluctuations in revenue growth and profits through 2025 [13][14]. - The Zacks Consensus Estimate for 2025 revenues is $65.53 billion, indicating a growth of 19.82% from the previous year, while the consensus for earnings is $12.21 per share, suggesting a 7.86% growth from 2024 [14][15]. Investment Considerations - Current shareholders may consider holding PDD stock during this transitional period, while new investors might benefit from waiting for clearer signs of the company's investments yielding results or a more attractive entry point [18][19].