PDD Holdings Inc.
CEO : Mr. Lei Chen
Quarterly earnings growth(YoY,%)
| Period | Revenue | Operating Income | EPS | Release Date |
|---|---|---|---|---|
| 2024 Q3 | 44.3% YoY | 45.8% | 58.6% | 2024-11-21 |
Chen Lei says,
Financial Performance and Revenue Insights
- Revenue and Net Income: In Q3 2024, the company delivered robust results with revenues and net income reaching $25 billion, respectively.
- Revenue Growth: There was an alteration in revenue growth compared to the last quarter, with profits trending lower due to intensified competition and business challenges.
- Short-term Financial Impact: The investments in ecosystem development were expected to impact short-term financial results, aligning with company expectations.
Strategic Initiatives and Ecosystem Development
- The company launched a $10 billion fee reduction program to provide cost savings and efficiency gains for over ten million merchants.
- Fee reduction measures included service fee refunds, bill reduction for buy now, pay later services, lower security deposits, and an easier fund withdrawal process.
- Merchant support policies received positive feedback from merchants, manufacturers, and consumers.
Logistics and Supply Chain Enhancements
- The platform adopted logistics support vendors to promote e-commerce services in remote regions, eliminating transshipment fees for orders to Western China.
- Fulfillment Upgrade: The logistics support measures enabled significant order volume growth from remote areas compared to the last quarter.
- The initiative benefits local businesses and strengthens the economic link between different regions.
High-Quality Merchant Support and Innovation
- The high-quality merchant support program aims to empower brands demonstrating strong product and technology innovation capabilities.
- The program is implemented in dozens of agricultural regions and industrial zones, enhancing the supply chain for high-quality products.
- Consumer preferences are shifting towards quality and personalization, driving new demands on the supply chain.
Commitment to Innovation and Social Responsibility
- The company remains committed to driving innovation and adapting to change, with a focus on research and technology innovation in agriculture.
- Significant events hosted include the final round of the fourth Smart Agriculture Competition and the Global AppriIno Challenge 2024.
- The company is prepared to give back to society, supporting agriculture and other industry sectors, and taking on greater social responsibility globally.
Zhao Jiajun says,
Merchant Support Initiatives
- Implemented a $10 billion fee reduction program which provided significant fee reductions and refunds to merchants, particularly in agriculture and national goods.
- Enhanced after-sales service systems, including a green channel and a dedicated team to handle merchant appeals, leading to platform compensation for approved orders.
- Launched a high-quality merchant support program during the harvest festival, allocating $1 billion RMB in subsidies and $2 billion in online traffic resources to support agricultural merchants.
Logistics and Regional Development
- Covered all transshipment fees across Western China, reducing delivery costs by up to 70% for agricultural and daily essential products.
- Facilitated infrastructure development in e-commerce and logistics by promoting the delivery of quality products to Western China.
Product and Market Expansion
- Collaborated with national brands during the W11 shopping festival, resulting in a tenfold increase in sales of customized high-quality products quarter over quarter.
- Expanded product offerings in response to shifting consumption trends, focusing on new smartphones, cosmetics, and healthy food for urban areas, and premium home appliances and fresh produce for rural areas.
Strategic Investments and Future Guidance
- Continued commitment to the high-quality development strategy, with ongoing fee reductions and merchant support initiatives planned for future quarters.
- Investments on the supply side aimed at providing consumers with a diverse selection of high-quality products to meet evolving preferences.
- Plans to further broaden support for high-quality merchants across more agricultural and industrial regions to facilitate industry transformation.
Summary of Key Financial Investments
| Program/Initiative | Investment Amount | Description |
|---|---|---|
| Fee Reduction Program | $10 billion | Reduced transaction fees and provided refunds to merchants. |
| Harvest Festival Support | 1 billion RMB in subsidies, 2 billion in traffic resources | Supported agricultural merchants with subsidies and increased online presence. |
Q & A sessions,
Merchant Support Initiatives
- Substantial investments have been made in the merchant ecosystem, including a $10 billion fee reduction program.
- Implemented several supportive policies such as service fee rebates, reduced security deposits, enhanced shipment fees for remote orders, and improved after-sales support.
- Fee reduction efforts aim at lowering operational costs and improving merchant efficiency, ultimately empowering merchants to enhance their offerings.
- Progress in logistics includes a new policy where merchants are no longer charged transshipment fees for orders to Western regions, expanding market reach.
Compliance and Ecosystem Development
- Significant resources have been invested in building a robust compliance team to track regulatory changes and industry trends.
- Development of comprehensive educational materials and streamlined onboarding processes to enhance merchant compliance capabilities.
- Proactive product quality checks and close collaboration with external stakeholders aim to set industry-leading compliance standards.
- The focus on compliance and high-quality merchants aims to foster a healthier and more sustainable ecosystem.
Impact of Domestic Consumption and Shopping Festivals
- Strong growth in online consumption, boosted by shopping festivals such as the Double Eleven, resulted in significant sales growth in various product categories.
- The introduction of a $10 billion voter campaign offered direct consumer benefits, enhancing trust and platform engagement.
- Support for high-quality merchants with innovative products during events helped national brands gain recognition and enriched consumer product choices.
Competition and Strategic Challenges
- Despite a dynamic domestic market, limitations in operational experience have caused missed opportunities amid macroeconomic support policies.
- Higher operational costs compared to peers due to platform limitations have impacted profitability, a trend expected to continue in the near future.
- Commitment to enhancing core capabilities and exploring impactful opportunities to remain competitive and create long-term consumer value.
Global Business Outlook
- Commitment to delivering unique value globally remains unchanged, with efforts to strengthen supply chain capabilities and service standards.
- Proactive engagement with external stakeholders to align operations with feedback and improve compliance posture.
- Despite competitive and external environment challenges, continuous strengthening of capabilities aims to enhance global consumer experience.
| Initiative | Impact |
|---|---|
| Merchant Fee Reduction | Decrease in operational costs and increased merchant efficiency |
| Logistics Policy (Western Regions) | Expanded market reach and reduced transshipment costs |
| Compliance Investments | Establishment of industry-leading standards and improved merchant onboarding |
| Double Eleven Festival | Strong sales growth, especially in agricultural products, appliances, and necessities |
No bad stock 