<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/a2a01ea5-81f9-429f-90f6-655f73b7bca6.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/a2a01ea5-81f9-429f-90f6-655f73b7bca6.png"/>
Pinduoduo's parent company's performance growth is slowing, but it remains steadfast in its commitment to long-term strategic investment.
Pinduoduo's 2025 full-year financial report shows that while revenue continued to grow, profits significantly contracted, reflecting the structural tension between intensified domestic e-commerce competition and continued increased investment. The company's management clearly stated that they will increase supply chain investment with a &#34;full bet&#34; attitude, directly warning that this will put pressure on financial performance.
For the full year 2025, Pinduoduo's total revenue increased by 10% year-on-year to 431.8 billion yuan, but net profit attributable to ordinary shareholders decreased by 12% year-on-year to 99.4 billion yuan. Fourth-quarter net profit also decreased by 11% to 24.5 billion yuan, down from 27.4 billion yuan in the same period last year. Liu Jun, Vice President of Finance, stated, &#34;These investments are firm and long-term, and will inevitably affect our financial performance.&#34;
Following the release of these results, market investors should pay attention to a core signal: while revenue growth is moderating, cost pressures are continuously rising, and management has clearly prioritized strategic investment over short-term profitability. In terms of cash reserves, as of the end of 2025, the company's cash, cash equivalents, and short-term investments totaled 422.3 billion yuan, a significant expansion from 331.6 billion yuan at the end of the previous year.
After the earnings report, Pinduoduo's stock price dropped in the short term.
<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/f77dab40-9d92-41ab-9ca4-dd2ae5610993.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/f77dab40-9d92-41ab-9ca4-dd2ae5610993.png"/>
<h2>Revenue Growth Slows, Cost Pressures Intensify</h2>
For the full year 2025, Pinduoduo's total revenue reached 431.8 billion yuan (approximately 61.8 billion US dollars), an increase of 10% year-on-year, a slowdown from 2024. Both major revenue sources maintained growth: online marketing services and other revenues increased by 10% year-on-year to 217.8 billion yuan; transaction services revenue increased by 9% year-on-year to 214.1 billion yuan.
However, the expansion rate of costs significantly outpaced revenue growth. Full-year cost of revenue increased by 23% year-on-year to 188.8 billion yuan, an increase of about twice the revenue growth rate, mainly due to rising fulfillment expenses, bandwidth and server costs, and payment processing fees.
Total operating expenses increased by 13% year-on-year to 148.4 billion yuan, with R&amp;D expenses showing the most prominent increase, up 30% year-on-year to 16.5 billion yuan, mainly due to increased employee-related costs and bandwidth server expenditures.
The accelerated expansion of costs directly squeezed profit margins. Full-year GAAP operating profit decreased by 13% year-on-year to 94.6 billion yuan; Non-GAAP operating profit, excluding share-based compensation expenses, also decreased by 13% to 102.6 billion yuan.
<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/262b87f7-86d1-42e7-954f-fa1462ff40dc.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/262b87f7-86d1-42e7-954f-fa1462ff40dc.png"/>
<h2>Fourth Quarter Performance: Revenue Recovers, Net Profit Under Pressure</h2>
In the fourth quarter, Pinduoduo's revenue increased by 12% year-on-year to 123.9 billion yuan, with a sequential improvement in growth rate. Among these, transaction services revenue showed stronger performance, increasing by 19% year-on-year to 63.9 billion yuan; online marketing services revenue increased by 5% to 60 billion yuan.
Quarterly operating profit increased slightly year-on-year, rising from 25.6 billion yuan in the same period last year to 27.7 billion yuan. However, dragged down by foreign exchange losses and other non-operating items, profit before tax was under pressure. Coupled with a significant year-on-year increase in income tax expenses, quarterly net profit ultimately decreased by 11% year-on-year to 24.5 billion yuan.
Basic earnings per ADS decreased from 19.76 yuan in the prior-year period to 17.50 yuan, and diluted earnings per ADS decreased from 18.53 yuan to 16.51 yuan. Non-GAAP diluted earnings per ADS were 17.69 yuan, a 12% decrease year-on-year. Net cash generated from operating activities was 24.1 billion yuan, down from 29.5 billion yuan in the prior-year period.
<h2>Management's Tone: Supply Chain Investment is the Core of the Next Decade</h2>
Facing slowing performance growth, Pinduoduo's management collectively spoke in the earnings report, guiding market expectations with clear long-term strategic statements.
Co-Chairman and Co-Chief Executive Officer Chen Lei stated that the company has consistently adhered to the strategic direction of high-quality development over the past year and will continue to uphold long-termism, investing more resources for all stakeholders.
Another Co-Chairman and Co-Chief Executive Officer, Zhao Jiazhen, defined 2026 as &#34;the starting point of entering the next decade&#34; and prioritized supply chain investment as the highest priority, emphasizing the commitment to invest substantial resources with a &#34;full bet&#34; mindset to drive lasting benefits for the entire ecosystem.
Liu Jun, Vice President of Finance, was the most direct in her statement, pointing out that the external environment and competitive landscape are rapidly changing. To meet consumers' evolving needs, the company must continuously explore and increase investment, and these investments &#34;will inevitably affect financial performance.&#34; This wording clearly signals to the market that profit pressure may not be a short-term phenomenon.
<h2>Balance Sheet Remains Robust, Cash Reserves Continue to Expand</h2>
Despite the contraction in profitability, Pinduoduo's balance sheet remains robust. As of December 31, 2025, the company's cash, cash equivalents, and short-term investments totaled approximately 422.3 billion yuan (approximately 60.4 billion US dollars), an increase of about 90.7 billion yuan from 331.6 billion yuan at the end of 2024, providing ample funding for subsequent large-scale strategic investments.
Other non-current assets reached 104.7 billion yuan (approximately 15.0 billion US dollars), a significant increase from 83.4 billion yuan in the prior-year period, mainly including time deposits, debt securities held to maturity, and available-for-sale debt securities.
Total assets expanded from 505.0 billion yuan at the end of 2024 to 630.0 billion yuan, and shareholders' equity increased from 313.3 billion yuan to 414.9 billion yuan. For the full year 2025, net cash generated from operating activities was 106.9 billion yuan, lower than 121.9 billion yuan in the prior year, mainly due to the decrease in net profit.

Pinduoduo financial report, understand it at a glance!

KPDD

PDDL

EBIZ

PDD Holdings' 2025 revenue reached 431.8 billion yuan, a year-on-year increase of 10%, and net profit attributable to shareholders was 99.4 billion yuan, a year-on-year decrease of 12%. Q4 revenue increased by 12% year-on-year, and net profit decreased by 11% year-on-year to approximately 24.5 billion yuan. The company's management clearly stated that they will increase supply chain investment with a 'full bet' attitude, directly warning that this will put pressure on financial performance

- Pinduoduo reported a 10% increase in revenue for 2025, totaling 431.8 billion yuan, but a 12% decline in net profit, indicating intensified competition in the domestic e-commerce market.  
- The company's management emphasized a commitment to long-term supply chain investments, which will pressure financial performance in the near term.  
- Despite profit shrinkage, Pinduoduo's cash reserves grew significantly, reaching 422.3 billion yuan, positioning the company for future strategic expansions.

PDD Q4 Revenue Up 12% YoY, Net Profit Down 11%, Management Announces Full Bet on Supply Chain Investment | Cailian Press