PDD Holdings Inc.

Total revenues increased 8% year over year to RMB 112.4 billion. Revenue from online marketing services and others was RMB 57.6 billion, and revenue from transaction services was RMB 54.7 billion, up 13% year over year. GAAP operating profit was RMB 27.8 billion, up 8% year over year; non-GAAP operating profit was RMB 29.1 billion, with non-GAAP operating margin at 26% versus 27% last year. Net income attributable to ordinary shareholders was RMB 27.2 billion, down from RMB 30.8 billion a year ago; basic EPS was RMB 19.32 per ADS and diluted EPS was RMB 18.45, versus RMB 22.01 and RMB 20.75 last year. Non-GAAP diluted EPS was RMB 19.33 versus RMB 22.07. Operating cash flow was RMB 25.7 billion, and cash, cash equivalents, and short-term investments were RMB 456.4 billion. The company did not provide formal next-quarter or full-year financial guidance on the call; instead, it said it will keep investing in supply chain, compliance, governance, local merchants, and fulfillment, while expecting short-term pressure in affected cross-border markets from EU customs-duty changes.

The co-CEOs framed the quarter as a transition from rollout to deeper execution under a long-term high-quality development strategy. They emphasized that the CNY 100 billion support program and platform governance upgrades are starting to produce results, while the company continues working toward its three-year goal of building “another PDD.” Their tone was patient and long term: keep investing in supply chains, merchant support, compliance, and local fulfillment, even if some initiatives take longer than expected.

Jun Liu focused on the quarter’s financial profile: revenue up 8% to RMB 112.4 billion, operating profit up 8% to RMB 27.8 billion on GAAP, and operating cash flow of RMB 25.7 billion. He also highlighted spending pressure, with total operating expenses at RMB 36.6 billion GAAP and RMB 35.3 billion non-GAAP, and R&D up 40% year over year to RMB 4.3 billion non-GAAP. Cash remained very strong at RMB 456.4 billion, giving the company substantial flexibility to keep funding governance, logistics, and supply-chain investments.

Analysts focused on the EU customs-duty change, the first-party brand rollout, logistics and warehousing investment priorities, quick commerce, and whether merchant health could translate into higher advertising spend. Management said the EU change will create near-term lower fulfillment efficiency and higher costs in affected markets, but it is responding by adding local merchants, local warehousing, and better compliance capabilities. On first-party brands, management said the rollout has been slower than expected but remains a long-term priority; first-party and third-party products are expected to complement each other. On merchant monetization, management said the support program is first improving product quality and supply-chain fundamentals, with better merchant economics expected to follow over time.