Pinduoduo (PDD, Financial) has released its financial results for the fourth quarter and the full year ending December 31, 2024. The company reported a 24% year-over-year increase in total revenue for Q4, reaching RMB 1106.101 billion. Net profit attributable to Pinduoduo's ordinary shareholders, excluding non-GAAP adjustments, rose 17% to RMB 298.509 billion. For the entire year, total revenue surged by 59% to RMB 3938.361 billion, while net profit grew by 80% to RMB 1223.436 billion.
Following the earnings release, Pinduoduo's Chairman and Co-CEO Chen Lei, Executive Director and Co-CEO Zhao Jiazhen, and Vice President of Finance Liu Jun participated in a conference call to discuss the results and answer analysts' questions.
In the call, analysts inquired about Pinduoduo's recent investments in platform ecosystem development and merchant support initiatives. The management highlighted their commitment to these areas, emphasizing the company's long-term goals and vision for ecosystem development. They believe these efforts will significantly impact the platform's overall growth.
Chen Lei explained that since the second quarter of the previous year, Pinduoduo has been focusing on high-quality platform ecosystem development, implementing initiatives like "Billion-Dollar Reductions" and "High-Quality Merchant Support Plan" to lower merchant costs. These efforts have facilitated innovation in products and technology for merchants, expanding their market reach. The company aims to lead the platform into a new phase of "quality upgrading" by supporting new quality supply and reducing operational costs for merchants.
Zhao Jiazhen discussed Pinduoduo's consumer-side strategies, such as upgrading the "Super Double Subsidy" during the fourth quarter's peak shopping season. This initiative, combined with the regular "Billion-Dollar Subsidy," offered substantial discounts to consumers and drove brand growth, with record-breaking participation and order volumes. The "Double 12" event further enhanced consumer benefits with large-value consumption vouchers.
Pinduoduo continues to invest in both supply and demand sides, promoting new consumption trends and high-quality consumer choices, ultimately fostering a mutually beneficial platform ecosystem.
