Adhering to high-quality development, the consumer recovery trend is improving, and Pinduoduo's revenue in the second quarter is 52.3 billion yuan

On August 29th, Pinduoduo Group released its performance report for the second quarter of 2023 as of June 30th. The financial report shows that Pinduoduo Group's revenue in the second quarter of this year was 52.3 billion yuan, a year-on-year increase of 66%.

With the continuous recovery of market confidence, Pinduoduo seized the opportunity and made high-quality development the most important task and primary goal at present. It increased investment along the three directions of high-quality consumption, high-quality supply, and high-quality ecology, continuously benefiting consumers, promoting platform ecological construction, and helping to continuously unleash consumption potential.

For example, during the 618 Mid Year Promotion, Pinduoduo increased its subsidy efforts. Under the stimulation of subsidy benefits, the sales of beauty brand sub categories increased by over 790% during the event period; The mobile phone order volume in the county market increased by 130% year-on-year; The sales scale of home appliance brands across all categories increased by 113% year-on-year.

Since the second quarter, Pinduoduo has guided high-quality consumption through "characteristic live streaming+billions of subsidies". The recommended products in the picture are "Soul of Sichuan Cuisine" Pixian Douban Sauce, Zhuozhou Honey, and Guangdong Beauty Products.

"In the second quarter, we observed a continuous increase in consumer demand for multiple product categories," said Chen Lei, Chairman and Co CEO of Pinduoduo Group. This positive shift is mainly due to effective macro policies and promotional activities to support consumption.

"The measures to transform towards high-quality development are bringing us faster and more returns than expected," said Zhao Jiazhen, Executive Director and Co CEO of Pinduoduo Group. "Last quarter, we established a 'billion yuan ecosystem' special project, prioritizing resources towards high-quality merchants and products. This special project is leading small and medium-sized enterprises and high-quality merchants on the platform to improve quality and efficiency, thereby driving the overall service efficiency and quality of the platform."

Focusing on ecological construction, firm pace of high-quality development

Zhao Jiazhen's first financial report, 150 days after taking office, highlights high-quality development as a core keyword. During this period, Pinduoduo continued to strengthen its capacity building for "multiple benefits and good services", increased investment in agricultural and manufacturing supply chains, and utilized special funds for "billion yuan ecosystem" to support high-quality merchants, fully promoting platform ecosystem construction.

Taking "Project One" as the starting point, in the second quarter, Pinduoduo listed illegal products and live streaming compliance as key governance issues at the current stage, actively embracing higher levels of platform governance and ecological construction.

As of now, the platform has cleared over 100000 vulgar advertising images in total; Dispose of over 300000 illegal items in categories such as jewelry and home decor; More than 3000 links to hazardous chemical products have been taken down, and 637 records of unscrupulous artists have violated regulations. They have taken the lead in implementing a nationwide ban on the sale of "nitrite" on major e-commerce platforms, and have implemented real name sales of "non kitchen knives".

In terms of high-quality consumption, Pinduoduo continues to focus on two key tasks: "more affordable" and "good service". During the two month long "Every Day is 618" and the 618 Mid Year Promotion, the Billion Subsidy Channel has launched a series of large-scale discount activities, including the Digital Home Appliance Consumption Season, to significantly supplement all categories of products such as digital home appliances, beauty, fresh produce, and clothing, allowing consumers to consume high-quality products at affordable prices.

The number of users and brands of the billion subsidy channel increased significantly in the first half of the year.

Another key focus of implementing high-quality development is to promote the coordinated development of industries and the digital economy, strengthen the integration of data and reality, and enable high-quality products to enter the national and even global markets, achieving high-quality supply.

Taking Duoduo Cross border as an example, in the second quarter, Pinduoduo continued to increase investment, support small and medium-sized manufacturing factories, and help high-quality domestic products sell globally with just one click. As of now, Duoduo Cross border has covered all categories except food and daily chemical products, penetrated more than 100 domestic industrial belts, helped more than 10000 factories successfully go overseas, and reached consumers in more than 20 countries and regions. With the help of Duoduo Cross border, many factories not only regained orders but also increased profits. Some contract manufacturing enterprises can even achieve a profit margin of five times that of traditional foreign trade by producing differentiated products. At the same time, the platform also encourages merchants to establish their own brands, providing more traffic support and brand premiums to brand merchants.

"Accelerating the transformation of high-quality development and the overall ecological quality construction is not only a good thing in the long run, but also will receive positive feedback from consumers and merchants in the short term." Zhao Jiazhen said, "We will persist in doing the right thing, continue to increase investment, further support high-quality merchants and small and medium-sized manufacturing factories, promote agricultural technology inclusiveness, and add momentum to high-quality development."

Assist in high-quality agricultural development

As a technology innovation driven company, Pinduoduo continues to increase its R&D investment. In the second quarter of this year, the platform's R&D investment exceeded 2.7 billion yuan, reaching a historic high; Realize a net profit of 13.1 billion yuan under the US GAAP standard, with a net profit margin of 25%, and robust financial data.

At the same time as the financial report was released, Pinduoduo also announced that its board of directors has appointed Ivonne Rietjens, a tenured professor at Wageningen University in the Netherlands, as an independent director. Wageningen University is a globally recognized top agricultural science research institution. Professor Rietjens has been a professor at the school since 2001 and is currently the head of the Department of Toxicology.

Toxicology is a discipline that studies the effects of food and drugs to ensure their safety. Professor Rietjens has over 25 years of research experience in this field and is a highly respected expert in the food technology industry. At the same time, she is also a member of the Royal Dutch Academy of Sciences and Chairman of the Natural Science and Engineering Science Committee, as well as a member of the French Academy of Agricultural Sciences. She has also served as the President of the Dutch Society of Toxicology and has held important positions in institutions such as the European Food Safety Agency, the European Food Safety Alliance, the Dutch National Institute of Public Health and Environment, the Dutch Health Commission, and the American Association of Food Flavors and Extracts Manufacturers. The addition of Professor Rietjens is expected to bring rich professional experience and broad international perspectives to Pinduoduo in the fields of agricultural technology and food safety.

Pinduoduo started with agricultural products, and agriculture is an important foothold for the platform to achieve high-quality development. In the second quarter, Pinduoduo continued to increase subsidies for high-quality agricultural products, with a year-on-year increase of 80% in sales of 100 billion yuan subsidies; Supported by the zero commission policy for agricultural products, the number of agricultural businesses receiving subsidies worth billions has increased by 60% year-on-year, covering over a hundred agricultural production areas across the country.

With the assistance of the Agricultural Cloud Action, Qianjiang crayfish has rapidly accumulated reputation and popularity on the Pinduoduo platform.

At the same time as the release of the second quarter report, Pinduoduo also launched the "Golden Autumn Subsidy for Quality Agricultural Products" campaign, increasing subsidy investment for seasonal agricultural products in the high-quality industrial belt to help promote high-quality consumption of quality agricultural products.

In addition, in the second quarter, Pinduoduo also collaborated with universities and agricultural research institutions to hold the third Duoduo Agricultural Research Technology Competition, the "Pinduoduo Cup" Science and Technology Academy Competition, and donated 100 million yuan to establish a research fund to support China Agricultural University in carrying out agricultural science and technology basic research and tackling "bottleneck" technology.

"Agriculture is the core strategy of Pinduoduo. We adhere to long-term investment in agriculture, introduce advanced technology and experience, participate in agricultural science and technology innovation and inclusiveness. We hope to make positive contributions to the modernization transformation of high-quality agriculture in cutting-edge agricultural science and technology research, modern agricultural talent cultivation, and the application and transformation of agricultural scientific research achievements." Chen Lei said.