On March 20th, PDD Holdings Inc. (PDD Holdings) released its financial report for the fourth quarter and full year of 2023. PDD Holdings achieved a total annual revenue of RMB 247.64 billion ($34.4 billion), representing a year-on-year growth of 90%. Among them, the fourth-quarter revenue of PDD Holdings Group was RMB 88.9 billion ($12.35 billion), showing a year-on-year growth of 123%. The operating profit, based on the US Generally Accepted Accounting Principles (GAAP), was RMB 22.4 billion ($3.11 billion). The growth was mainly driven by significant increases in revenue from online marketing services, other services, and transaction services.
The financial report indicates that PDD Holdings’s operating profit reached RMB 58.7 billion ($8.16 billion) in 2023, a year-on-year growth of 93%. Calculated according to non-GAAP measures, the operating profit was RMB 65.8 billion ($9.14 billion), representing a 73% increase.
According to the financial report, PDD Holdings’s net profit attributable to ordinary shareholders in 2023 was RMB 60.0265 billion ($8.34 billion), a year-on-year growth of 90%. Calculated using non-GAAP measures, the net profit was RMB 67.8993 billion ($9.43 billion), showing a 72% increase.
It is stated that Pinduoduo Holdings’ overseas subsidiary, Temu, has entered 50 countries and regions worldwide since its launch in September 2022. According to a survey report by HSBC, it is estimated that in 2023, Temu contributed 23% to Pinduoduo Holdings’ total revenue. This number is expected to rise to 43% in 2024 and exceed 50% in 2025. With its low-price strategy, strong supply chain, and improved logistics structure, Temu’s Gross Merchandise Volume (GMV) is projected to reach $140 billion ($19.45 billion) by 2027.
However, during the financial report conference call, Chen Lei, Chairman and Co-CEO of Pinduoduo Holdings, remained cautious when discussing Temu, stating that the global business is still in its early stages and there may be many changes and challenges in the future.
In addition, PDD Holdings Group’s R&D expenses for the full year of 2023 reached RMB 11 billion ($1.53 billion). Regarding this, Chen Lei, Chairman and Co-CEO of PDD Holdings Group, stated, “For technology companies, research and development are essential. This year, we will maintain our investment efforts to promote high-quality development, exploration, cultivate excellent productivity, drive the application and transformation of cutting-edge technologies in various industries, and support the platform’s higher-level, high-quality development.”
