Core Viewpoint - Pinduoduo is facing mixed public perception despite reporting a quarterly profit of nearly 17 billion yuan, with concerns over its revenue growth rate of only 10% in Q1 2025, prompting discussions on its market positioning and strategies for long-term development [4]. Group 1: Business Strategy and Market Positioning - Pinduoduo's chairman, Chen Lei, emphasizes the importance of prioritizing long-term health over short-term performance, advocating for support to merchants during market fluctuations to enhance consumer experience and platform sustainability [4][10]. - The company has launched various initiatives, such as the "New Brand Plan" and "New Quality Merchant Support Plan," aimed at fostering the growth of small and medium-sized enterprises (SMEs) and enhancing brand development through tailored support [5][7]. Group 2: Merchant Support and Ecosystem Development - Pinduoduo has introduced the "Billion Subsidy" program and other resources to assist merchants, which includes customized brand promotion strategies and financial support to help them scale their operations [5][9]. - The company reported a significant increase in marketing expenses, reaching 33.4 billion yuan in Q1 2023, up from 23.4 billion yuan in the same period last year, reflecting its commitment to enhancing merchant support and ecosystem investment [9]. Group 3: Consumer Engagement and Product Quality - Pinduoduo has implemented a "single link single specification" sales model for seasonal fruits, improving consumer clarity and satisfaction, which has led to a 25% decrease in complaint rates and a 30%-50% increase in repurchase rates for certain fruits [8]. - The platform's initiatives have resulted in significant sales growth for brands like KOMERY, which achieved annual sales exceeding 50 million yuan through effective marketing strategies and product offerings on Pinduoduo [6].

Core Viewpoint - The company prioritizes the interests of merchants and consumers over short-term platform profits [2][22]. Financial Performance - In Q1 2025, the company reported revenue of 957 billion, a 10% year-on-year increase, which was below market expectations of 1,016 billion [3]. - Operating profit for the quarter was 161 billion, down 38% year-on-year, while net profit attributable to ordinary shareholders was 147 billion, a 47% decline [4]. - Revenue from online marketing services and other services was 487 billion, a 15% increase from 425 billion in Q1 2024, exceeding the market expectation of 480 billion [6]. - Revenue from transaction services was 470 billion, a 6% increase from 444 billion in Q1 2024, but fell short of the expected 542.3 billion by over 70 billion [6]. Strategic Focus - The company is committed to a high-quality development strategy, sacrificing short-term profits for long-term investments [7][8]. - Initiatives such as "100 billion subsidy," "e-commerce westward," and "new quality merchant support plan" have been launched to support merchants [7]. - The company emphasizes the importance of supporting merchants to create a better platform ecosystem, as stated by CEO Chen Lei [8][22]. Marketing and Support Initiatives - Marketing expenses in Q1 reached 334 billion, a 43% increase from 234 billion in the same period last year, exceeding market expectations [12]. - The "100 billion subsidy" program has significantly reduced store security deposits for various categories and increased support for small and medium-sized merchants [13]. - The company has introduced a "merchant rights protection committee" to enhance communication and support for merchants [23]. Market Position and Future Outlook - Despite the overall industry growth slowing to single digits, the company managed to maintain a 10% growth rate, which is considered commendable [10]. - The company's stock price fell nearly 14% following the earnings report, reflecting market skepticism about its long-term strategy [11]. - The company is focused on creating a resilient future by prioritizing merchant growth, which in turn benefits consumers and ensures sustainable platform development [22]. Industry Context - The company has maintained a consistent focus on e-commerce, avoiding diversifications into other sectors, and has reinvested profits into merchant support initiatives [26][27]. - The company aims to expand its support to small and medium-sized merchants, enhancing their operational efficiency and reducing costs [27]. - The company's initiatives have led to significant growth in sales for many merchants, demonstrating the effectiveness of its support strategies [29][30].

Core Viewpoint - Pinduoduo is focusing on long-term value over short-term financial performance, implementing a "trillion support" strategy to assist merchants during challenging market conditions [2][4][5] Financial Performance - In Q1 2025, Pinduoduo reported revenue of 95.67 billion yuan, a 10% year-on-year increase, but the growth rate has slowed down significantly compared to previous quarters [1][4] - The adjusted net profit attributable to ordinary shareholders was 16.92 billion yuan, a 45% decline year-on-year, falling short of market expectations [1][4] - Marketing expenses surged by 43% to 33.403 billion yuan, contributing to a 38% drop in operating profit to 16.1 billion yuan [4] Strategic Initiatives - Pinduoduo has launched the "trillion support" strategy to provide substantial financial assistance to merchants, including reduced commission fees and subsidies [4][5][12] - The establishment of the "Merchant Rights Protection Committee" aims to enhance service mechanisms and support for merchants [5][10] - The company is prioritizing support for small and medium-sized merchants, expanding its assistance beyond just top-tier sellers [12] Market Positioning - The e-commerce industry is shifting from scale expansion to quality development, with Pinduoduo's "trillion support" initiative aimed at enhancing long-term competitiveness [9][10] - Pinduoduo is adapting to changing consumer preferences, with a growing focus on quality and brand, particularly among younger consumers in smaller towns [9][10] Consumer Engagement - The "trillion support" plan includes various consumer subsidies, such as the "100 billion merchant return plan" and additional consumption vouchers [14][15] - Pinduoduo continues to leverage its agricultural roots, enhancing support for agricultural merchants and promoting local specialties through targeted initiatives [15][16]

Core Viewpoint - Pinduoduo is focusing on long-term value and ecosystem resilience, sacrificing short-term profits for the benefit of merchants and sustainable growth [2][4][6] Financial Performance - In Q1 2025, Pinduoduo reported revenue of 95.67 billion yuan, a year-on-year increase of 10%, but the growth rate has slowed down [1] - Adjusted net profit attributable to ordinary shareholders was 16.92 billion yuan, a decrease of 45% year-on-year [1][4] - Marketing expenses increased by 43% year-on-year to 33.403 billion yuan, leading to a 38% decline in operating profit [4] Strategic Initiatives - Pinduoduo launched the "100 billion support" strategy to assist merchants, which includes reducing commission fees and providing subsidies [4][5] - The establishment of the "Merchant Rights Protection Committee" aims to enhance service mechanisms for merchants and improve the platform's ecosystem [5] - The "New Quality Merchant Support Plan" has been expanded to support small and medium-sized merchants, promoting differentiated competition [8] Market Positioning - Pinduoduo is shifting its focus from scale expansion to quality development, emphasizing the importance of high-quality supply [6][7] - The platform is actively engaging with small and medium-sized merchants to maximize their potential and drive overall industry upgrades [8][10] Consumer Engagement - Pinduoduo continues to implement consumer-friendly policies, including the "100 billion merchant feedback plan" and various subsidy initiatives [9][10] - The platform is also enhancing its support for agricultural products, aiming to boost the income of farmers and improve the quality of agricultural supply chains [10][11]

Core Viewpoint - Pinduoduo plans to invest 100 billion yuan to support small and medium-sized merchants, aiming to create a win-win e-commerce ecosystem for merchants, users, and the platform [1][2]. Group 1: Investment and Support Initiatives - Since April 2023, under the leadership of Zhao Jiazhen, Pinduoduo has focused on high-quality development strategies, launching initiatives like "100 Billion Reduction," "E-commerce Westward," and "New Quality Merchant Support Plan" [2]. - The "100 Billion Reduction" initiative has already helped over 10 million merchants improve efficiency, with the promotion service fee refund alone saving merchants tens of billions annually [2][7]. - The "E-commerce Westward" initiative has led to double-digit growth in order volume in western regions, providing nearly 100 million consumers in remote areas with comprehensive free shipping [2][11]. - The "New Quality Merchant Support Plan" aims to assist innovative merchants and industries, with an initial investment of 10 billion yuan in subsidies and 20 billion yuan in traffic resources [13]. Group 2: Specific Benefits to Merchants - Merchants have reported significant cost savings due to the "100 Billion Reduction" initiative, with some saving tens of thousands of yuan monthly through reduced service fees [6][7]. - The logistics cost reduction for remote areas has allowed merchants to access new markets, with some reporting a drastic decrease in shipping costs [11]. - The support for new quality supply has enabled merchants to meet consumer demands more effectively, with notable sales increases during promotional events [14]. Group 3: Merchant Rights and Protection - Pinduoduo established the "Merchant Rights Protection Committee" to enhance the operating environment for merchants, introducing measures like "Abnormal Order Warning" and "Low Price Risk Warning" [16][17]. - The committee's initiatives aim to protect merchant profits and encourage innovation, moving away from price competition towards quality improvement [17].