Q1 2026 PDD Holdings Inc Earnings Call Transcript
Key Points
- PDD Holdings Inc (PDD) reported a year-over-year revenue increase of 11% to RMB106.2 billion, driven by growth in transaction services.
- The company is making steady progress in its first-party brand business, with a dedicated company established and an initial cash injection of RMB15 billion.
- PDD Holdings Inc (PDD) is enhancing its supply chain through innovative models and investments, aiming to consolidate resources and incubate new brands.
- The company is expanding its logistics support to rural areas, reducing shipping costs significantly and increasing order volumes to remote regions.
- PDD Holdings Inc (PDD) is committed to long-term value creation, focusing on sustained investments in the ecosystem and supply chain rather than short-term results.
- Despite revenue growth, PDD Holdings Inc (PDD) experienced a decline in net income attributable to ordinary shareholders, from RMB14.7 billion to RMB12.5 billion.
- The company's online marketing service growth rate slowed in the first quarter, despite a solid consumption growth backdrop.
- PDD Holdings Inc (PDD) faces challenges in the supply chain, with many manufacturers constrained by factors such as talent and scale, impacting brand transformation.
- The company reported an increase in total cost of revenues by 15%, driven by higher fulfillment fees, bandwidth, server costs, and payment processing fees.
- There is a fluctuation in overall profit margin, with non-GAAP net income decreasing from RMB16.9 billion to RMB14.1 billion year-over-year.
Thank you for standing by, and welcome to the PDD Holdings, Inc., 1Q 2026 earnings conference call. (Operator Instructions). I would now like to hand the conference over to our host today. Please go ahead.
Thank you, operator. Hello, everyone, and thank you for joining us today. PDD Holdings earnings release was distributed earlier and is available on our website at investor.pddholdings.com as well as to the Globe Newswire services. Before we start, I'd like to refer you to our safe harbor statement in the press earnings release, which applies to this call as will make certain forward-looking statements. Also, this call includes discussions of certain non-GAAP financial measures. Please refer to our earnings release, which contains a reconciliation of non-GAAP measures to GAAP measures.
Joining us today on the call are Mr. Chen Li, our Co-Chairman and Co-Chief Executive Officer; Mr. Jiazhen Zhao, our Co-Chairman and Co-Chief Executive Officer; as well as Mr. Li Jiong, our Financial Director. And Jiazhen will make some general
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
