Core Viewpoint - Pinduoduo's Q1 2025 financial report reveals a significant decline in profit and a slowdown in revenue growth, leading to a sharp drop in its stock price, indicating a strategic shift towards long-term investments over short-term profits [1][21][25] Revenue and Profit Summary - Pinduoduo reported Q1 2025 revenue of 95.7 billion RMB, a 10% year-on-year increase, but net profit fell to 14.7 billion RMB, down 47% year-on-year [1][10] - Adjusted net profit was 16.9 billion RMB, reflecting a 45% decline compared to the previous year [1][10] - Advertising revenue grew by 14.8%, exceeding market expectations, while commission revenue dropped significantly, contributing to the overall revenue slowdown [3][6][7] Strategic Decisions and Investments - The company has increased marketing expenses to 33.4 billion RMB, a rise of nearly 100 billion RMB from the previous year, indicating a commitment to support merchants and enhance user experience [8][11] - Pinduoduo's management emphasized the importance of sacrificing short-term profits to foster a healthier ecosystem for merchants, which is seen as essential for long-term growth [5][20][21] - The "thousand billion support" strategy aims to provide substantial assistance to merchants, reflecting a shift in focus from immediate financial returns to sustainable development [5][12][22] Market Position and Future Outlook - Pinduoduo is positioning itself as a platform that prioritizes merchant support and ecosystem development, which may lead to a more resilient business model in the face of market fluctuations [6][21][24] - The company's proactive approach to reducing revenue growth in favor of long-term investments is viewed as a strategic pivot that could redefine its competitive edge in the e-commerce sector [21][24][25] - The ongoing transformation within Pinduoduo is expected to contribute to the overall upgrade of China's industrial supply chains, benefiting both merchants and consumers [22][24]