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Pinduoduo, which reported a 51 percent increase in third-quarter revenue to 21.5 billion yuan, said it would invest more in research and development

via:新浪科技     time:2021/11/27 16:00:40     readed:276

Fan Jialai, reporter of thepaper.cn

On November 26, PINDUoduo (Nasdaq: PDD) released its third-quarter earnings. Pinduoduo reported revenue of 21.5058 billion yuan in the third quarter, up 51 percent from the same period last year and short of market expectations. Gaap operating profit was 2.1393 billion yuan and net profit attributable to common shareholders was 1.64 billion yuan, compared with a net loss of 784.7 million yuan a year earlier.

In a conference call after the results, Pduo executives cited the reason for the profit: "The past two consecutive quarters of profitability are mainly due to the leverage of sales and marketing expenses." "Pinduoduo is now shifting its focus and investment to research and development, and we hope to increase investment in research and development to lay the foundation for stable long-term growth in the future," he said. "Future research and development costs are expected to increase."

Revenue fell short of expectations, combined with the impact of the US stock market plunge, most of the popular Chinese stocks fell. On November 26, the US stock market closed, Pinduoduo fell 15.86%, closing at $68.46.

  Revenue was up 51 per cent year on year

In the third quarter of this year, Pinduoduo posted revenue of 21.5058 billion yuan, up 51% from a year earlier. Specifically, pinduoduo's online marketing service revenue in the third quarter was 17.95 billion yuan, an increase of 44% compared with 12.48 billion yuan in the same period in 2020. Transaction services revenue was $3.477 billion, up 161% from $1.332 billion in the same period last year; Merchandise sales revenue was 82.1 million yuan, down 79 percent from 393 million yuan in the same period last year.

In terms of expenditure, Pinduoduo continues to decrease in marketing: in the third quarter, under American GAAP, pinduoduo's marketing expenditure was 1,00506 million yuan, showing a declining trend for three consecutive quarters.

R&d expenses reached 2.4224 billion yuan, up 34 percent from the same period last year, with r&d personnel accounting for about 60 percent. Chen Lei, chairman and CEO of Pinduoduo, said pinduoduo will shift its focus on marketing over the past five years to more research and development, and leverage pinduoduo's technological strengths to further promote the digitization of agriculture.

In terms of users, pduo Duo has 867.3 million annual active buyers. Last quarter, the number of pduo duo's annual active buyers reached nearly 850 million, which is still growing, but the growth rate continues to slow down compared with previous quarters.

  All profits in the third quarter will be invested in the "ten billion yuan agricultural research special Project"

Pinduoduo is focusing on strengthening its "agricultural" label. In August this year, on the day of the release of the second quarter financial results, Pinduoduo announced the establishment of a "10 billion yuan agricultural research special", and the future profits of the priority to invest in this special. At the end of September, the "10 billion yuan agricultural research project" was approved by shareholders.

"The project was approved by shareholders at the end of September, so it has not had any material impact on the financial results for the third quarter." In a conference call, Pinduoduo executives said.

"All profits of this quarter will also be invested in the '10 billion yuan agricultural research special project' to continue to promote the progress of agricultural science and technology." Chen lei said. In a conference call after the results, some analysts said the rise of live electrical contractor will affect spell a lot of business, the spell, many executives responded: "recently, the regulatory measures in promoting the whole electricity industry development towards the direction of the benign competition, we believe that more competition to the industry and have a positive impact in the industry enterprises. "We will see more and more platforms with user bases and user activity trying to enter the e-commerce space."

"Starting from agricultural products, Pinduoduo focuses on users' needs and hopes to provide more services to users, which is different from other e-commerce enterprises." Meanwhile, executives said pinduoduo has received many good project recommendations and suggestions since it launched 10 billion yuan of agricultural research, and is currently studying the feasibility of each scheme.

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