DUBLIN and SHANGHAI, Aug. 25, 2025 (GLOBE NEWSWIRE) -- PDD Holdings Inc. ("PDD Holdings" or the "Company") (NASDAQ: PDD), today announced its unaudited financial results for the second quarter ended June 30, 2025.
Second Quarter 2025 Highlights
- Total revenues in the quarter were RMB103,984.8 million (US$114,515.7 million), an increase of 7% from RMB97,059.5 million in the same quarter of 2024.
- Operating profit in the quarter was RMB25,792.9 million (US$3,600.6 million), a decrease of 21% from RMB32,564.5 million in the same quarter of 2024. Non-GAAP2 operating profit in the quarter was RMB27,747.8 million (US$3,873.4 million), a decrease of 21% from RMB34,987.3 million in the same quarter of 2024.
- Net income attributable to ordinary shareholders in the quarter was RMB30,753.5 million (US$4,293.0 million), a decrease of 4% from RMB32,009.4 million in the same quarter of 2024. Non-GAAP net income attributable to ordinary shareholders in the quarter was RMB32,708.4 million (US$4,565.9 million), a decrease of 5% from RMB34,432.1 million in the same quarter of 2024.
"In the past quarter, we continued to invest in merchant support initiatives, and are encouraged by the progress made towards a healthier and more sustainable platform ecosystem," said Mr. Lei Chen, Chairman and Co-Chief Executive Officer of PDD Holdings. "We remain steadfast in our commitment to supporting the vitality of the ecosystem, prioritizing long-term impact over short-term results."
"In Q2, we invested significant resources in rolling out a comprehensive suite of merchant support measures," said Mr. Jiazhen Zhao, Executive Director and Co-Chief Executive Officer of PDD Holdings. "We are excited about the opportunities ahead as we focus intensely on driving efficiencies for the merchants."
"Revenues growth further moderated this quarter amid intense competition," said Ms. Jun Liu, VP of Finance of PDD Holdings. "As we remain focused on long-term value creation, the sustained investments may continue to weigh on short-term profitability."
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1 This announcement contains translations of certain Renminbi ("RMB") amounts into U.S. dollars ("US$") at a specified rate solely for the convenience of the reader. Unless otherwise noted, the translation of RMB into US$ has been made at RMB7.1636 to US$1.00, the noon buying rate in effect on June 30, 2025 as set forth in the H.10 Statistical Release of the Federal Reserve Board.
2 The Company's non-GAAP financial measures exclude share-based compensation expenses and fair value change of certain investments. See "Reconciliation of Non-GAAP Measures to the Most Directly Comparable GAAP Measures" set forth at the end of this press release.
Second Quarter 2025 Unaudited Financial Results
Total revenues were RMB103,984.8 million (US$14,515.7 million), an increase of 7% from RMB97,059.5 million in the same quarter of 2024. The increase was primarily due to the increase in revenues from online marketing services and transaction services.
- Revenues from online marketing services and others were RMB55,703.2 million (US$7,775.9 million), an increase of 13% from RMB49,115.9 million in the same quarter of 2024.
- Revenues from transaction services were RMB48,281.6 million (US$6,739.9 million), compared with RMB47,943.7 million in the same quarter of 2024.
Total costs of revenues were RMB45,858.9 million (US$6,401.7 million), an increase of 36% from RMB33,698.1 million in the same quarter of 2024. The increase mainly came from the increased fulfilment fees, bandwidth and server costs, and payment processing fees.
Total operating expenses were RMB32,333.0 million (US$4,513.5 million), an increase of 5% from RMB30,796.9 million in the same quarter of 2024. The increase was primarily due to the increase in sales and marketing expenses.
- Sales and marketing expenses were RMB27,209.9 million (US$3,798.4 million), compared with RMB26,049.1 million in the same quarter of 2024.
- General and administrative expenses were RMB1,531.8 million (US$213.8 million), compared with RMB1,838.6 million in the same quarter of 2024.
- Research and development expenses were RMB3,591.3 million (US$501.3 million), compared with RMB2,909.2 million in the same quarter of 2024.
Operating profit in the quarter was RMB25,792.9 million (US$3,600.6 million), a decrease of 21% from RMB32,564.5 million in the same quarter of 2024. Non-GAAP operating profit in the quarter was RMB27,747.8 million (US$3,873.4 million), a decrease of 21% from RMB34,987.3 million in the same quarter of 2024.
Net income attributable to ordinary shareholders in the quarter was RMB30,753.5 million (US$4,293.0 million), a decrease of 4% from RMB32,009.4 million in the same quarter of 2024. Non-GAAP net income attributable to ordinary shareholders in the quarter was RMB32,708.4 million (US$4,565.9 million), a decrease of 5% from RMB34,432.1 million in the same quarter of 2024.
Basic earnings per ADS was RMB22.01 (US$3.07) and diluted earnings per ADS was RMB20.75 (US$2.90), compared with basic earnings per ADS of RMB23.14 and diluted earnings per ADS of RMB21.61 in the same quarter of 2024. Non-GAAP diluted earnings per ADS was RMB22.07 (US$3.08), compared with RMB23.24 in the same quarter of 2024.
Net cash generated from operating activities was RMB21,641.7 million (US$3,021.1 million), compared with RMB43,792.6 million in the same quarter of 2024, mainly due to the decrease in net income and the changes in working capitals.
Cash, cash equivalents and short-term investments were RMB387.1 billion (US$54.0 billion) as of June 30, 2025, compared with RMB331.6 billion as of December 31, 2024.
Other non-current assets were RMB85.0 billion (US$11.9 billion) as of June 30, 2025, compared with RMB83.4 billion as of December 31, 2024, which mainly included time deposits, held-to-maturity debt securities, and available-for-sale debt securities.
Conference Call
The Company's management will hold an earnings conference call at 7:30 AM ET on August 25, 2025 (12:30 PM IST and 7:30 PM HKT on the same day).
The conference call will be webcast live at https://investor.pddholdings.com/investor-events. The webcast will be available for replay at the same website following the conclusion of the call.
Use of Non-GAAP Financial Measures
In evaluating the business, the Company considers and uses non-GAAP measures, such as non-GAAP operating profit, non-GAAP net income attributable to ordinary shareholders, non-GAAP diluted earnings per ordinary share, and non-GAAP diluted earnings per ADS, as supplemental measures to review and assess operating performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). The Company's non-GAAP financial measures exclude the impact of share-based compensation expenses and fair value change of certain investments.
The Company presents these non-GAAP financial measures because they are used by management to evaluate operating performance and formulate business plans. The Company believes that the non-GAAP financial measures help identify underlying trends in its business by excluding the impact of share-based compensation expenses and fair value change of certain investments, which are non-cash charges. The Company also believes that the non-GAAP financial measures may provide further information about the Company's results of operations, and enhance the overall understanding of the Company's past performance and future prospects.
The Company's non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non-GAAP financial measures have limitations as analytical tools. These non-GAAP financial measures do not reflect all items of income and expenses that affect the Company's operations and do not represent the residual cash flow available for discretionary expenditures. Further, these non-GAAP measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited. The Company compensates for these limitations by reconciling the non-GAAP financial measures to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating performance. The Company encourages you to review the Company's financial information in its entirety and not rely on a single financial measure.
For more information on the non-GAAP financial measures, please see the table captioned "Reconciliation of Non-GAAP Measures to the Most Directly Comparable GAAP Measures" set forth at the end of this press release.
Safe Harbor Statements
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "aims," "future," "intends," "plans," "believes," "estimates," "confident," "potential," "continue" or other similar expressions. Among other things, the business outlook and quotations from management in this announcement, as well as the Company's strategic and operational plans, contain forward-looking statements. The Company may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company's growth strategies; its future business development, results of operations and financial condition; its ability to understand buyer needs and provide products and services to attract and retain buyers; its ability to maintain and enhance the recognition and reputation of its brand; its ability to rely on merchants and third-party logistics service providers to provide delivery services to buyers; its ability to maintain and improve quality control policies and measures; its ability to establish and maintain relationships with merchants; trends and competition in the e-commerce markets globally and in the countries or regions where the Company has operations; changes in its revenues and certain cost or expense items; the expected growth of e-commerce markets globally and in the countries or regions where the Company has operations; developments in the relevant governmental policies and regulations relating to the Company's industry; and general economic and business conditions globally and in the countries or regions where the Company has operations; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Company's filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and the Company undertakes no obligation to update any forward-looking statement, except as required under applicable law.
About PDD Holdings
PDD Holdings is a multinational commerce group that owns and operates a portfolio of businesses. PDD Holdings aims to bring more businesses and people into the digital economy so that local communities and small businesses can benefit from the increased productivity and new opportunities.
| PDD HOLDINGS INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("US$")) | ||||||
| As of | ||||||
| December 31, 2024 | June 30, 2025 | |||||
| RMB | RMB | US$ | ||||
| (Unaudited) | (Unaudited) | |||||
| ASSETS | ||||||
| Current assets | ||||||
| Cash and cash equivalents | 57,768,053 | 63,222,442 | 8,825,513 | |||
| Restricted cash | 68,426,368 | 66,677,640 | 9,307,840 | |||
| Receivables from online payment platforms | 3,679,309 | 6,007,506 | 838,616 | |||
| Short-term investments | 273,791,856 | 323,908,642 | 45,215,903 | |||
| Amounts due from related parties | 7,569,180 | 8,685,737 | 1,212,482 | |||
| Prepayments and other current assets | 4,413,466 | 7,540,578 | 1,052,623 | |||
| Total current assets | 415,648,232 | 476,042,545 | 66,452,977 | |||
| Non-current assets | ||||||
| Property, equipment and software, net | 879,327 | 843,211 | 117,708 | |||
| Intangible assets | 19,170 | 17,301 | 2,415 | |||
| Right-of-use assets | 5,064,351 | 5,208,930 | 727,139 | |||
| Deferred tax assets | 15,998 | 73,303 | 10,233 | |||
| Other non-current assets | 83,407,238 | 84,971,006 | 11,861,495 | |||
| Total non-current assets | 89,386,084 | 91,113,751 | 12,718,990 | |||
| Total Assets | 505,034,316 | 567,156,296 | 79,171,967 | |||
| PDD HOLDINGS INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("US$")) | ||||||
| As of | ||||||
| December 31, 2024 | June 30, 2025 | |||||
| RMB | RMB | US$ | ||||
| (Unaudited) | (Unaudited) | |||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
| Current liabilities | ||||||
| Amounts due to related parties | 801,859 | 1,160,511 | 162,001 | |||
| Customer advances and deferred revenues | 2,947,041 | 3,601,464 | 502,745 | |||
| Payable to merchants | 91,655,947 | 95,521,629 | 13,334,305 | |||
| Accrued expenses and other liabilities | 69,141,831 | 76,838,168 | 10,726,197 | |||
| Merchant deposits | 16,460,600 | 17,137,378 | 2,392,286 | |||
| Convertible bonds, current portion | 5,309,597 | 5,287,585 | 738,118 | |||
| Lease liabilities | 2,105,978 | 2,415,762 | 337,227 | |||
| Total current liabilities | 188,422,853 | 201,962,497 | 28,192,879 | |||
| Non-current liabilities | ||||||
| Lease liabilities | 3,191,565 | 3,259,973 | 455,075 | |||
| Deferred tax liabilities | 106,774 | 70,170 | 9,795 | |||
| Total non-current liabilities | 3,298,339 | 3,330,143 | 464,870 | |||
| Total Liabilities | 191,721,192 | 205,292,640 | 28,657,749 | |||
| Shareholders' equity | ||||||
| Ordinary shares | 180 | 181 | 25 | |||
| Additional paid-in capital | 117,829,308 | 121,958,952 | 17,024,813 | |||
| Statutory reserves | 237,680 | 237,680 | 33,179 | |||
| Accumulated other comprehensive income | 7,824,545 | 6,750,146 | 942,284 | |||
| Retained earnings | 187,421,411 | 232,916,697 | 32,513,917 | |||
| Total Shareholders' Equity | 313,313,124 | 361,863,656 | 50,514,218 | |||
| Total Liabilities and Shareholders' Equity | 505,034,316 | 567,156,296 | 79,171,967 | |||
| PDD HOLDINGS INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Amounts in thousands of RMB and US$) | ||||||||||||||||||
| For the three months ended June 30, | For the six months ended June 30, | |||||||||||||||||
| 2024 | 2025 | 2024 | 2025 | |||||||||||||||
| RMB | RMB | US$ | RMB | RMB | US$ | |||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||
| Revenues | 97,059,531 | 103,984,832 | 14,515,723 | 183,871,590 | 199,657,007 | 27,871,043 | ||||||||||||
| Costs of revenues | (33,698,098 | ) | (45,858,933 | ) | (6,401,660 | ) | (66,392,784 | ) | (86,806,033 | ) | (12,117,655 | ) | ||||||
| Sales and marketing expenses | (26,049,137 | ) | (27,209,896 | ) | (3,798,355 | ) | (49,459,792 | ) | (60,612,637 | ) | (8,461,198 | ) | ||||||
| General and administrative expenses | (1,838,550 | ) | (1,531,825 | ) | (213,835 | ) | (3,661,995 | ) | (3,190,768 | ) | (445,414 | ) | ||||||
| Research and development expenses | (2,909,210 | ) | (3,591,279 | ) | (501,323 | ) | (5,818,830 | ) | (7,169,107 | ) | (1,000,769 | ) | ||||||
| Total operating expenses | (30,796,897 | ) | (32,333,000 | ) | (4,513,513 | ) | (58,940,617 | ) | (70,972,512 | ) | (9,907,381 | ) | ||||||
| Operating profit | 32,564,536 | 25,792,899 | 3,600,550 | 58,538,189 | 41,878,462 | 5,846,007 | ||||||||||||
| Interest and investment income, net | 4,855,592 | 10,422,628 | 1,454,943 | 9,904,181 | 10,645,753 | 1,486,090 | ||||||||||||
| Foreign exchange gain/(loss), net | 60,165 | (799,350 | ) | (111,585 | ) | 274,683 | (1,041,490 | ) | (145,386 | ) | ||||||||
| Other income, net | 493,258 | 119,106 | 16,627 | 2,374,506 | 3,380,398 | 471,885 | ||||||||||||
| Profit before income tax and share of results of equity investees | 37,973,551 | 35,535,283 | 4,960,535 | 71,091,559 | 54,863,123 | 7,658,596 | ||||||||||||
| Share of results of equity investees | (49,583 | ) | 37,097 | 5,179 | (102,013 | ) | (68,083 | ) | (9,504 | ) | ||||||||
| Income tax expenses | (5,914,613 | ) | (4,818,923 | ) | (672,696 | ) | (10,982,365 | ) | (9,299,754 | ) | (1,298,196 | ) | ||||||
| Net income | 32,009,355 | 30,753,457 | 4,293,018 | 60,007,181 | 45,495,286 | 6,350,896 | ||||||||||||
| PDD HOLDINGS INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Amounts in thousands of RMB and US$, except for per share data) | ||||||||||||
| For the three months ended June 30, | For the six months ended June 30, | |||||||||||
| 2024 | 2025 | 2024 | 2025 | |||||||||
| RMB | RMB | US$ | RMB | RMB | US$ | |||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||
| Net income | 32,009,355 | 30,753,457 | 4,293,018 | 60,007,181 | 45,495,286 | 6,350,896 | ||||||
| Net income attributable to ordinary shareholders | 32,009,355 | 30,753,457 | 4,293,018 | 60,007,181 | 45,495,286 | 6,350,896 | ||||||
| Earnings per ordinary share: | ||||||||||||
| -Basic | 5.78 | 5.50 | 0.77 | 10.87 | 8.16 | 1.14 | ||||||
| -Diluted | 5.40 | 5.19 | 0.72 | 10.14 | 7.67 | 1.07 | ||||||
| Earnings per ADS (4 ordinary shares equals 1 ADS): | ||||||||||||
| -Basic | 23.14 | 22.01 | 3.07 | 43.47 | 32.63 | 4.55 | ||||||
| -Diluted | 21.61 | 20.75 | 2.90 | 40.57 | 30.69 | 4.28 | ||||||
| Weighted-average number of ordinary shares outstanding (in thousands): | ||||||||||||
| -Basic | 5,533,796 | 5,587,797 | 5,587,797 | 5,521,739 | 5,577,856 | 5,577,856 | ||||||
| -Diluted | 5,925,659 | 5,927,800 | 5,927,800 | 5,916,670 | 5,929,895 | 5,929,895 | ||||||
| PDD HOLDINGS INC. NOTES TO FINANCIAL INFORMATION (Amounts in thousands of RMB and US$) | ||||||||||||
| For the three months ended June 30, | For the six months ended June 30, | |||||||||||
| 2024 | 2025 | 2024 | 2025 | |||||||||
| RMB | RMB | US$ | RMB | RMB | US$ | |||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||
| Revenues | ||||||||||||
| - Online marketing services and others | 49,115,866 | 55,703,222 | 7,775,870 | 91,572,109 | 104,425,393 | 14,577,222 | ||||||
| - Transaction services | 47,943,665 | 48,281,610 | 6,739,853 | 92,299,481 | 95,231,614 | 13,293,821 | ||||||
| Total | 97,059,531 | 103,984,832 | 14,515,723 | 183,871,590 | 199,657,007 | 27,871,043 | ||||||
| PDD HOLDINGS INC. NOTES TO FINANCIAL INFORMATION (Amounts in thousands of RMB and US$) | ||||||||||||
| For the three months ended June 30, | For the six months ended June 30, | |||||||||||
| 2024 | 2025 | 2024 | 2025 | |||||||||
| RMB | RMB | US$ | RMB | RMB | US$ | |||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||
| Share-based compensation expenses included in: | ||||||||||||
| Costs of revenues | 37,706 | 64,617 | 9,020 | 55,220 | 121,311 | 16,934 | ||||||
| Sales and marketing expenses | 637,997 | 484,639 | 67,653 | 1,310,372 | 1,121,923 | 156,614 | ||||||
| General and administrative expenses | 1,244,961 | 865,292 | 120,791 | 2,496,729 | 1,789,235 | 249,768 | ||||||
| Research and development expenses | 502,098 | 540,346 | 75,429 | 1,138,983 | 1,096,558 | 153,074 | ||||||
| Total | 2,422,762 | 1,954,894 | 272,893 | 5,001,304 | 4,129,027 | 576,390 | ||||||
| PDD HOLDINGS INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts in thousands of RMB and US$) | ||||||||||||||||||
| For the three months ended June 30, | For the six months ended June 30, | |||||||||||||||||
| 2024 | 2025 | 2024 | 2025 | |||||||||||||||
| RMB | RMB | US$ | RMB | RMB | US$ | |||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||
| Net cash generated from operating activities | 43,792,640 | 21,641,656 | 3,021,059 | 64,859,819 | 37,158,599 | 5,187,140 | ||||||||||||
| Net cash used in investing activities | (42,622,100 | ) | (27,021,892 | ) | (3,772,111 | ) | (70,912,221 | ) | (33,405,868 | ) | (4,663,280 | ) | ||||||
| Net cash generated from financing activities | 728 | 353 | 49 | 758 | 572 | 80 | ||||||||||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | 240,744 | 21,876 | 3,055 | 388,668 | (47,642 | ) | (6,649 | ) | ||||||||||
| Increase/(decrease) in cash, cash equivalents and restricted cash | 1,412,012 | (5,358,007 | ) | (747,948 | ) | (5,662,976 | ) | 3,705,661 | 517,291 | |||||||||
| Cash, cash equivalents and restricted cash at beginning of period | 114,704,917 | 135,258,089 | 18,881,301 | 121,779,905 | 126,194,421 | 17,616,062 | ||||||||||||
| Cash, cash equivalents and restricted cash at end of period | 116,116,929 | 129,900,082 | 18,133,353 | 116,116,929 | 129,900,082 | 18,133,353 | ||||||||||||
| PDD HOLDINGS INC. RECONCILIATION OF NON-GAAP MEASURES TO THE MOST DIRECTLY COMPARABLE GAAP MEASURES (Amounts in thousands of RMB and US$, except for per share data) | ||||||||||||
| For the three months ended June 30, | For the six months ended June 30, | |||||||||||
| 2024 | 2025 | 2024 | 2025 | |||||||||
| RMB | RMB | US$ | RMB | RMB | US$ | |||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||
| Operating profit | 32,564,536 | 25,792,899 | 3,600,550 | 58,538,189 | 41,878,462 | 5,846,007 | ||||||
| Add: Share-based compensation expenses | 2,422,762 | 1,954,894 | 272,893 | 5,001,304 | 4,129,027 | 576,390 | ||||||
| Non-GAAP operating profit | 34,987,298 | 27,747,793 | 3,873,443 | 63,539,493 | 46,007,489 | 6,422,397 | ||||||
| Net income attributable to ordinary shareholders | 32,009,355 | 30,753,457 | 4,293,018 | 60,007,181 | 45,495,286 | 6,350,896 | ||||||
| Add: Share-based compensation expenses | 2,422,762 | 1,954,894 | 272,893 | 5,001,304 | 4,129,027 | 576,390 | ||||||
| Add: Loss from fair value change of certain investments | 17 | - | - | 25,454 | - | - | ||||||
| Non-GAAP net income attributable to ordinary shareholders | 34,432,134 | 32,708,351 | 4,565,911 | 65,033,939 | 49,624,313 | 6,927,286 | ||||||
| Non-GAAP diluted weighted-average number of ordinary shares outstanding (in thousands) | 5,925,659 | 5,927,800 | 5,927,800 | 5,916,670 | 5,929,895 | 5,929,895 | ||||||
| Diluted earnings per ordinary share | 5.40 | 5.19 | 0.72 | 10.14 | 7.67 | 1.07 | ||||||
| Add: Non-GAAP adjustments to earnings per ordinary share | 0.41 | 0.33 | 0.05 | 0.85 | 0.70 | 0.10 | ||||||
| Non-GAAP diluted earnings per ordinary share | 5.81 | 5.52 | 0.77 | 10.99 | 8.37 | 1.17 | ||||||
| Non-GAAP diluted earnings per ADS | 23.24 | 22.07 | 3.08 | 43.97 | 33.47 | 4.68 | ||||||
