PDD Holdings Inc - ADR

Strong Revenue Growth: PDD Holdings reported Q4 revenue of RMB 110.6 billion, a 24% increase year-over-year. For the entire fiscal year of 2024, revenue reached RMB 393.8 billion, signifying a robust 59% growth YOY. This highlights the company's ability to increase sales despite competitive pressures.

Profit Fluctuations: Operating profit for Q4 was RMB 25.6 billion, showing fluctuating profitability with non-GAAP operating profits of RMB 28 billion (down from 28% margin in Q4 2023 to 24% in Q4 2024). Such fluctuations are attributed to increased investments in merchant support and platform ecosystem development, which could affect short-term profitability.

Ecosystem Investments and Merchant Support: The company has aggressively pursued a high-quality development strategy, including a RMB 10 billion fee reduction program aimed at enhancing operational efficiency for over 10 million merchants. These initiatives are designed to create a healthier ecosystem and could lead to long-term revenue growth, though short-term results may be affected.