On August 25, Pinduo announced its second quarter 2025 financial report.

Data showed that during the reporting period, the company's revenue growth continued to slow down, and net profit fell year-on-year; on the other hand, against the background of continued increased investment, profit performance far exceeded market expectations.

Specifically, Pinduo achieved total revenue of 104 billion yuan (RMB, the same below) in the quarter, a year-on-year increase of 7%. Although it slowed further than the first quarter, it basically met market expectations of 103.9 billion yuan.

At the same time, the revenue structure of Dianduo is undergoing qualitative changes: online marketing service revenue was 55.7 billion yuan, a year-on-year increase of 13%, and continued to outperform the overall revenue growth rate, with its proportion rising to more than 53%.The increase in platform advertising revenue reflects that Pendodo's liquidity on the merchant side is strengthening, and the platform's value recognition is further enhanced.

Trading service revenue was 48.3 billion yuan, basically flat year-on-year and slightly lower than market expectations.This stagflation indicates to a certain extent that the growth of the platform's GMV is experiencing periodic pressure, reflecting the slowdown in the overall consumption momentum of e-commerce.However, it has shown certain resilience to maintain the level of the same period last year in a market environment of fierce competition and weak consumption.

On the profit side, Dianduo's performance far exceeded market expectations.Non-GAAP net profit for this quarter was 32.71 billion yuan, down 5% year-on-year, but was much higher than market expectations of 22.39 billion yuan, becoming the biggest "highlight" of this quarter's earnings report.Operating profit was 25.8 billion yuan, a year-on-year decrease of 21%; operating profit margin remained at a high level of 24.8%. Although it declined, it is still in a leading position among its peers.

However, not all financial indicators are reassuring.

Operating cash flow for the quarter was 21.6 billion yuan, a significant decrease of 51% from 43.79 billion yuan in the same period last year.Management attributed this fluctuation to the combined effect of declining profits and changes in working capital.Although the company currently holds 387.1 billion yuan in cash and short-term investments, and has sufficient short-term debt repayment ability, structural changes in cash flow pose certain challenges to the feasibility of continued investment in the future, which also means that management needs to balance input and output more carefully.

Although the earnings performance greatly exceeded expectations, the management of Pendodo did not express optimism about this result.

In a conference call held immediately after the release of the earnings report, company executives repeatedly emphasized: "Profits for this quarter are not sustainable."Zhao Jiazhen, executive director and co-CEO of Pinduo Group, bluntly stated at the telephone conference that the company's series of resource investments in the past quarter have had a substantial impact on revenue growth and profits, and will further increase its support to platform merchants in the future."Support," so we don't believe that profits in this quarter will be sustainable, and future fluctuations will still be relatively large.”

Chairman and co-CEO Chen Lei also added during the telephone conference: "As the external environment continues to evolve and competition intensifies, we will remain committed to long-term value creation rather than short-term results.Our team will prioritize high-quality growth by creating long-term opportunities for merchants and investing in the consumer experience.As we increase investment, profitability will inevitably fluctuate, and this quarter's results may not be representative of the future.”

Zhao Jiazhen further pointed out: "With the investment of real money, this quarter's revenue and profits have once again been affected to a certain extent. As Chen Lei said, compared with short-term results, we are more concerned about bringing long-term returns to the platform ecosystem.This is also the reason why we are willing to sacrifice profits and persist in feeding back the ecology for a long time.”

It is understood that the above statement is closely related to the "100 billion support" plan being implemented by the company.

This plan is a major shift in Pinduo's strategic focus after the "10 billion subsidy", shifting from traffic-side subsidies to in-depth supply-side support, covering many aspects such as merchant commission exemptions, operating resource tilt, performance support and infrastructure collaboration. It is intended to create a platform ecosystem that is more resistant to stress and compound interest capabilities.Management revealed in a telephone conference that this strategic investment has been initially reflected in revenue and profit performance this quarter, and its long-term effects will gradually emerge in the next few quarters.

In addition to deepening ecological investment in the domestic market, the globalization process of Qinduoduo is also continuing to advance.Chen Lei admitted at the telephone conference that overseas business is still in its infancy, but will continue to focus on the three major directions of "supply chain localization, service optimization, and compliance capabilities" in the future.Temu, a cross-border e-commerce company owned by the platform, has achieved breakthrough growth in the North American market. According to Sensor Tower data, it has topped the list of shopping App downloads in the United States many times, posing a substantial challenge to Shein and Amazon.Although Temu's profit model is still in the early testing stage, its strong supply chain integration capabilities, price advantages and user penetration paths have become an important fulcrum for Pendodo to expand its second growth curve.

However, whether Temu can shift from "low-cost customer acquisition" to "high-frequency conversion" in the future still needs to test the platform's systematic implementation in localized operations, supply chain stability and compliance capabilities.Chen Lei also said frankly: "Our original intention is to bring more high-quality and good goods to consumers around the world. At present, it is only in its infancy, and there are still many areas for improvement.”