On March 20, Pinduoduo Group released its fourth quarter and full-year performance report for 2023 as of December 31.
In this quarter, Pinduoduo Group’s revenue was 88.9 billion yuan, a year-on-year increase of 123%; operating profit under U.S. GAAP was 22.4 billion yuan.
Last year’s full-year revenue was 247.6 billion yuan, a year-on-year increase of 90%.
Last year was the first year that Pinduoduo actively embraced high-quality development.
The series of measures launched around this strategy to help business and benefit the people have continued to receive positive feedback and widespread support from users and merchants.
Against the background of a steady rebound in overall consumption, the platform's overall consumption performance continued to improve in the fourth quarter, and the demand for consumption upgrades promoted the supply and sales of domestic trendy products and high-quality agricultural products.
“2024 will be an important year for Pinduoduo to deepen its high-quality development strategy.” Zhao Jiazhen, executive director and co-CEO of Pinduoduo Group, said, “This performance also inspires us to be more active and resolute in focusing on high-quality development. We will invest in the long term and continue to increase investment in terms of 'more benefits' and 'good service' to help consumers achieve high-quality consumption upgrades."
High-quality development is inseparable from the drive of new productive forces.
The financial report shows that Pinduoduo Group’s R&D expenses in the fourth quarter of last year were 2.9 billion yuan, and the full-year R&D expenses reached 11 billion yuan.
Chen Lei, chairman and co-CEO of Pinduoduo Group, said, "This year, we will maintain our investment, explore and cultivate new productive forces for high-quality development, and enhance the support capabilities of cutting-edge technologies in agriculture and manufacturing."
Effective results in helping business and benefiting the people
Last year, Pinduoduo made high-quality development its core work throughout the year, effectively helping consumers get benefits and high-quality merchants selling more goods, consolidating the positive cycle of the platform ecosystem.
"The revenue growth of the platform is the result of our effective consumption promotion measures and the overall rebound in consumption. It is also the result of us creating more value for consumers and merchants." Zhao Jiazhen said.
2023 is the year to boost consumption, and all parts of the country are actively implementing policies to restore and expand consumption.
In its contacts with platform users, the Pinduoduo team found that the demand for consumption upgrades is not only widespread and growing, but at the same time, consumers are also concerned about how to obtain a higher quality of life in a more economical and convenient way.
▲In Danling, the “Hometown of Oranges in China”, Zhao Gang, who once won the title of “Fruit King” in the local Shiranui Technology Competition, settled in Pinduoduo and used live streaming to sell high-quality oranges to all parts of the country.
In view of this, Pinduoduo pays particular attention to a richer supply of high-quality products and a more matched allocation of subsidy resources to promote the two-way pursuit of high-quality products and consumption upgrades.
In the fourth quarter, through events such as 11.11 and 12.12, the platform focused on people's livelihood and well-being, lowered the threshold for consumption upgrades, helped release consumption potential, and made it easier for more people to live a better life.
In addition to helping users save money, Pinduoduo also actively creates more opportunities for merchants to be seen and recognized by consumers.
Take 11.11 as an example. During the event, the flash sale channel provided an incremental engine for more than 100,000 small and medium-sized merchants, and more than 40 sub-categories such as agricultural products, domestic products and global goodies achieved doubled growth.
The number of agricultural and domestic goods merchants with tens of billions of subsidies has more than doubled year-on-year; in the global shopping business, 21 of the top 100 brands have achieved year-on-year growth of more than 300%, with single-day sales exceeding one million yuan. Reached 59.
In addition to the domestic market, the group also accelerated the promotion of Chinese manufacturing into the global market last year.
At present, Duoduo cross-border has entered 50 countries and regions.
"Our business is still very new, and we always have a sincere attitude of learning from consumers and the market, and exploring more technology and model innovations," Chen Lei said.
This year will be an important year for Pinduoduo to deepen its high-quality development strategy.
In addition to continuing to improve the platform capabilities of "multiple benefits + good services", Chen Lei also said, "We will improve supply chain insights and technical capabilities, help manufacturing factories reduce costs and increase efficiency, and create more hot products; vigorously support those who understand agriculture, New farmers and new rural businessmen who understand e-commerce will drive local employment and increase farmers' income; give full play to the positive incentive effect of the '10 billion ecological' special project to support and assist high-quality merchants, brands and small and medium-sized enterprises."
▲Pinduoduo Agricultural Cloud Action was selected into the "Research Report on the Practice of Chinese Modernized Counties" as a typical case of county revitalization across the country.
R&D investment exceeds 10 billion again
Guided by high-quality development strategies, Pinduoduo’s key investments last year centered on technological innovation and agricultural strategies.
A technology enterprise based on R&D.
After R&D expenses exceeded 10 billion in 2022, Pinduoduo Group's R&D investment in 2023 once again exceeded 10 billion, setting a record high.
This year, Pinduoduo will continue to “focus on R&D” and explore technological innovation for high-quality development.
Agriculture is Pinduoduo’s core business and a key sector in which it continued to invest last year.
In the fourth quarter, Pinduoduo deeply supported the holding of the second Science and Technology Yard Competition, and provided flow and subsidy support to scientific and technological agricultural products developed by agricultural universities and scientific research units to enhance the transformation of agricultural scientific and technological achievements and accelerate the development of new agricultural productivity.
▲In Zhangzhou, Fujian, Liu Yedong (right) of Fujian Agriculture and Forestry University is stationed in the Science and Technology Yard to help farmers lose weight on their land, save fertilizer costs, and increase the sweetness of pomelo.
This kind of high-tech honey pomelo is one of the agricultural products that Pinduoduo has focused on supporting in recent years.
Last year, Pinduoduo also launched the Agricultural Cloud Action, which went deep into agricultural production belts such as Shaanxi, Sichuan, Shanxi, Yunnan, Hubei, Fujian, Shandong, and Jiangsu to provide local merchants with special e-commerce operation training and one-on-one targeted operation guidance to help rural areas Industrial revitalization and employment growth.
This action was rated as a "National County Revitalization Typical Case" by the China Urban and Small Town Reform and Development Center of the National Development and Reform Commission at the end of last year.
"This year, we will increase investment in key agricultural projects such as the Agricultural Cloud Action and agricultural research competitions, and continue to promote the creation of more resilient digital agricultural production belts in various regions to help rural revitalization and farmers' income increase," said Zhao Jiazhen.
High-quality domestic products are another focus of Pinduoduo’s support in recent years.
Since the fourth quarter of last year, Pinduoduo has invested a large amount of traffic and real money subsidies to help manufacturing brands expand their influence with the help of multiple live broadcasts with the theme of "Chinese Products Team Building" and Chinese Products Festival and other major promotion activities.
For example, during the National Goods Festival, the average daily sales of a brand of laundry soap products increased more than ten times, the factory's production capacity increased from 4 tons to 40 tons per day, and the number of workshop workers also tripled.
Zhao Jiazhen said, “This year, we will continue to expand new tracks for new and old domestic products, grow together with Chinese brands, and jointly provide consumers with better products and high-quality consumer experiences.”
In addition to platform construction, Pinduoduo has also actively invested in social relief. Immediately after the 6.2-magnitude earthquake occurred in Jishishan County, Linxia Prefecture, Gansu Province in December last year, Pinduoduo made an emergency donation of 20 million yuan to the Gansu Charity Federation. Procurement of cold protection, disaster relief materials and post-disaster reconstruction work.
▲In order to support the post-disaster reconstruction of Jishishan Earthquake, in addition to donations, Pinduoduo also donated coal, folding beds and other materials to the disaster-stricken area in Qinghai.
"In the eight years since our founding, we have been focusing on e-commerce and have the courage to try innovative business forms to meet diversified consumer needs. During this period, the team has grown rapidly, and young and adventurous leaders have continued to emerge, and they have gradually assumed greater responsibilities." Chen Lei said, "Our organization is vibrant with the creativity and vitality of young people, and we are confident that we will continue to create unique value for the largest number of consumers."