Q2 2025 PDD Holdings Inc Earnings Call Transcript
Key Points
- PDD Holdings Inc (PDD) launched the 100 billion core program, investing substantial resources to support the merchant ecosystem and explore new business models.
- The company's logistics support initiative led to a 40% growth in order numbers from remote regions, reducing shipping costs and injecting new energy into the economy.
- PDD Holdings Inc (PDD) expanded its consumer giveback program, including the 10 billion coupon program, which drove record sales during the June 18 shopping festival.
- The company continues to invest in agritech through initiatives like the smart agriculture competition, showcasing cutting-edge technology in AI farming and hydroponics.
- PDD Holdings Inc (PDD) is committed to long-term value creation, prioritizing high-quality growth and investing in consumer experience despite short-term profitability fluctuations.
- Revenue growth moderated, and operating profit declined by 21% year-over-year, reflecting the company's substantial investments in merchant support initiatives.
- The intensified competition in the e-commerce industry has led to slower revenue growth and profit decline for PDD Holdings Inc (PDD).
- The company's total cost of revenues increased by 36% due to higher fulfillment fees, bandwidth and server costs, and payment processing fees.
- PDD Holdings Inc (PDD) anticipates continued fluctuations in profitability as it ramps up investments in the merchant ecosystem.
- The company's net cash generated from operating activities decreased significantly compared to the same quarter last year, indicating financial pressure from ongoing investments.
Ladies and gentlemen, thank you for standing by, and welcome to the PDD Holdings, Inc., second-quarter 2025 earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your host today. Sir, please go ahead.
Thank you, operator. And 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 and also to the Globe Newswire services.
Before we begin, I would like to refer you to our Safe Harbor statement in earnings press release, which applies to this call as we will make certain forward-looking statements. Also, this call includes discussions of certain non-GAAP financial measures. Please refer to our earnings press release, which contains a reconciliation of non-GAAP measures to GAAP measures.
Joining us today on the call are Mr. Chen Lei, our Chairman and Co-Chief Executive Officer; Mr. Zhao Jiazhen, our
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