Cover news reporter Zhang Yuexi
On November 26, Beijing time, Pinduoduo released its financial report for the third quarter of 2021. The total revenue achieved in the quarter was RMB 21.50 billion (approximately US$3.3376 billion), an increase of 51% compared to RMB 14.209 billion in the same period of the previous year.
Focus
Pinduoduo achieved a net profit of RMB 1.640 billion (approximately US$254.5 million) this quarter, compared with a net loss of RMB 784.7 million in the same period last year.
The main reason for the increase in operating income was that revenue from online marketing services and other businesses was RMB 17.9465 billion (approximately US$2.7853 billion), an increase of 44% compared with RMB 12.484.8 billion in the same period in 2020.
In the quarter, the company’s merchandise sales revenue was 82.1 million yuan (approximately US$12.7 million), down 79% from 392.8 million yuan in the same period in 2020.
The company’s average monthly active users were 741.5 million, an increase of 15% from 643.4 million in the same period last year.
The number of active buyers in the 12 months ending September 30, 2021 was 867.3 million, an increase of 19% compared to 731.3 million in the 12 months ending September 30, 2020.
Financial report summary
According to the financial report, Pinduoduo’s third-quarter revenue was 21.505 billion yuan, an increase of 51% over the same period last year, which was less than market expectations of 26.5 billion yuan. Under the US General Accounting Standards, marketing expenses were 10.050.6 billion yuan, a decrease of 3% from the previous quarter, showing a downward trend for three consecutive quarters. As of September 30, 2021, Pinduoduo’s annual active buyers reached 867.3 million, and the average monthly active users in the third quarter reached 741.5 million.
In the third quarter, the platform further increased its investment in technology research and development. Under the US GAAP, the platform’s research and development expenses for the quarter amounted to RMB 2.4224 billion, a year-on-year increase of 34%. At the same time, according to the Pinduo Multi-Year Report, about 60% of the company’s employees are R&D personnel.
According to US GAAP, the operating profit for the quarter was 2.139.3 billion yuan, and the net profit attributable to common shareholders was 1.64 billion yuan.
It is worth noting that in the second quarter, Pinduoduo launched the “10 billion agricultural research project” fund, claiming to invest 10 billion yuan to solve major agricultural and rural needs. The fund will not invest for profit or commercial purposes, and the use will be personally supervised by Chen Lei. . This fund is derived from the profit in the second quarter and the profit in the following quarters until it meets the total amount of 10 billion yuan. Accordingly, the profit in the third quarter will also be invested in the special fund. At the end of September, this plan was supported at an extraordinary general meeting of shareholders, with 94.3% of the voting rights in favor and 5.7% of the voting rights against it. The company has not yet issued a public document clarifying the operation and audit methods of the fund.
Reporter’s eye
On Double Eleven this year, most of the established e-commerce companies are quiet. Compared with the short video e-commerce companies such as Douyin and Kuaishou, they are very vigorous. After 2021, short video e-commerce companies have become familiar with content drainage, and the number of data recommendations and traffic feedback has gradually become accustomed to consumers. Such an impact from the new platform objectively exists in front of every established e-commerce company. In fact, it is not only short video e-commerce. For Pinduoduo, it is also facing challenges from high-cost platforms such as Taote and Jingxi. This has objectively affected Pinduoduo’s scale growth. It has been reflected in the data.
Expert Reviews
Cui Lili, executive director, researcher, and doctoral supervisor of the Institute of Electronic Commerce, Shanghai University of Finance and Economics
The number of active users of Pinduoduo has stabilized at more than 700 million, and it still belongs to the leading enterprise camp of China’s e-commerce. Receivables continued to grow, and the growth rate declined. While maintaining the momentum of growth, expenses and costs have been continuously controlled. The data from these three aspects reflects that Pinduoduo is on the path of continuous improvement.
The first conference of agricultural research has been to the scene and I am very appreciative of Pinduoduo’s long-term and continuous investment in the source of agricultural production. The agricultural research competition so far has explored the artificial intelligence cultivation of agricultural fruits and vegetables in the small berry category. It should be said that it is an attempt to apply artificial intelligence in the agricultural field. But I hope that through this competition, more people can understand the problems and predicaments of China’s agriculture. The good solutions obtained in the agricultural research competition also hope to see the results of advancement in the follow-up promotion and expansion of social benefits, and promote the application and popularization of artificial intelligence technology in a wide range of agricultural fields, such as the food field related to the survival and development of the country. , Or the high-end nursery field, I hope to see more of Pinduoduo’s exploration and practical progress in this area.Return to Sohu to see more
Editor:
Disclaimer: The opinions of this article only represent the author himself. Sohu is an information publishing platform. Sohu only provides information storage space services.
.