Source: Wall Street
Pinduoduo is worthy of being the "king of roll", and the "roll" is more important than its peers: in the first quarter, the revenue doubled, the net profit tripled, and the performance exceeded market expectations for five consecutive quarters.
However, at a later conference call, Chen Lei, Chairman and Co CEO of Pinduoduo Group, said that the company's performance development was not linear, sometimes "too good", sometimes "biased", It should not be simply measured by the performance of one quarter.
Liu Jun, vice president of Pinduoduo Finance, said that Pinduoduo is still in the growth stage, and will make friendly investment if it sees good value creation opportunities in the future. These investments may bring fluctuations and weaken profitability, but they will help Pinduoduo grow in the long run.
We will, as always, focus on long-term value rather than short-term profit, and will not measure business development quarterly.
When asked about the growth space, Liu Jun replied that in the long run, there is still much room for growth in the consumer market, which provides a lot of opportunities for Pinduoduo and businesses. In addition to the potential of the overall consumer market, Pinduoduo also sees that the online retail industry is growing rapidly. The e-commerce infrastructure has been constantly improved, and new e-commerce models have emerged in endlessly, "It is believed that the penetration rate of online retail still has great potential for improvement" 。
Liu Jun said that Pinduoduo will continue to start from businesses, improve the quality of service to consumers, expand the scope of services, and improve the value of services. Pinduoduo will "continue to invest resources to support high-quality businesses willing to operate in compliance".
Chen Lei believes that the current e-commerce industry is in a stage of rapid development, and competition and opportunities are accelerating. The industry competition that has intensified significantly in the past quarter will inevitably increase company spending in the future. At the same time, the birth of a large number of new technologies and new markets will bring huge space and opportunities.
As for the globalization strategy, Chen Lei said that the globalization business is a very new business. At this stage, Pinduoduo is in the process of continuous exploration and learning, In the future, the business will continue to focus on the improvement of supply chain, service and compliance capabilities.
agriculture products Online permeability, there is still a lot of room
The financial report shows that in the first quarter, Pinduoduo's online marketing services and other revenues were 42.46 billion yuan, up 56% year on year; Trading service revenue surged 327% to $44.36 billion, overtaking online marketing as Pinduoduo's largest source of revenue.
"The consumer market in the first quarter had a good overall start, showing the characteristics of continuous strong online consumption and continuous increase in online retail penetration. We actively responded to the consumption promotion policy, launched a series of profit giving activities to promote business and benefit the people, and stimulated the release of consumption potential in response to the shopping needs of platform users in festivals such as the Spring Festival." Zhao Jiazhen, senior vice president, said at the conference call, "Driven by the combination of policies and activities, the overall growth in the first quarter was steady, and we are confident in the future of the domestic consumer market."
Zhao Jiazhen said that Pinduoduo will continue to deepen its high-quality development strategy and further increase investment this year. In the future, we will continue to make efforts in three aspects: consumer side, supply side, compliance and platform ecology, and ensure high-quality supply and service while vigorously giving back to consumers.
For supporting agricultural e-commerce, Zhao Jiazhen said that agriculture is a difficult industry to do well. At this stage, the online penetration rate of agricultural products and the digital business ability of farmers still have much room for improvement. Agriculture has always been the basic platform of Pinduoduo. Pinduoduo will still firmly invest in agriculture and continue to invest in all aspects of production and supply chain.
Chen Lei: Pinduoduo welcomes healthy competition. In the future, overseas business will focus on improving compliance capability
Since this year, various e-commerce platforms have made adjustments to the price and service system, and Chen Lei of Pinduoduo Group replied on the conference call:
In the first quarter, we saw that our peers significantly increased their investment. Pinduoduo welcomes healthy competition In the face of competition, our starting point is to create value for consumers.
Chen Lei said that consumers have formed the habit of cross platform consumption, and they will make a comprehensive comparison of categories, prices, service quality and other dimensions, and finally make a choice. Next, in addition to continuing to deepen the ability to provide more benefits and good services, Pinduoduo will enrich the platform's high-quality supply and further optimize the consumer experience.
As for the globalization strategy, Chen Lei said that the globalization business is a very new business. At this stage, Pinduoduo is in the process of continuous exploration and learning.
We are a company focusing on execution. We have determined our strategic objectives and will fully implement them, which is consistent with the past few quarters, In the future, the business will continue to focus on the improvement of supply chain, service and compliance capabilities.
As for Temu, the cross-border e-commerce platform of Pinduoduo, which had attracted much attention before, the first quarter financial report and telephone conference did not provide detailed data and information.
The following is the transcript of the analyst question and answer session:
Q1: How does the company evaluate the current industry competition trend and what is the strategic focus of Pinduoduo?
Chen Lei responded that we have noticed that consumers have become accustomed to making comparison and selection between different e-commerce platforms. In the first quarter, peers significantly increased their investment. We welcome healthy competition. Pinduoduo always takes consumers as the center, and our survival foundation is to create value for consumers. Our concept of "more benefits and better service" is gradually becoming popular. We will continue to deepen this concept, while meeting consumers' needs for higher quality goods and richer consumption experience, to consolidate users' trust in our platform.
Q2: What are the specific measures and objectives of Pinduoduo in terms of compliance and platform ecology?
Chen Lei said that with the expansion of business, we are facing higher compliance requirements for compliance and platform systems. Pinduoduo regards compliance as its core competitiveness, actively communicates with regulators in various countries, improves its compliance capability, conducts in-depth research on market regulation rules, and implements the research results in all aspects of its business. This includes data compliance and product compliance, promoting small and medium-sized businesses to achieve compliance and high-quality operations, and encouraging platform ecology to progress towards high-quality and sustainable development.
The participation of high-quality merchants will enrich our product line, and compliance operation and healthy platform ecology will guarantee our long-term development. This will help us better meet the diversified and multi-level needs of users and form a positive ecological cycle. This is our view on compliance.
Q3: What are Pinduoduo's management's views on the company's growth space and its future growth expectations?
Liu Jun pointed out that with regard to growth, we have been focusing on long-term investment and pursuing sustainable long-term value. Pinduoduo still has great room for improvement and potential in the consumer market. With the rapid growth of online retail industry and the continuous improvement of e-commerce infrastructure, new models continue to emerge. We will continue to innovate and explore new models to create greater value for consumers. In the long run, we believe that online retail penetration has room for improvement, and Pinduoduo will continue to optimize its services.
In terms of merchants, we continue to improve the service scope and value of the platform, support more high-quality merchants, achieve common growth and expand product coverage through resource allocation adjustment. As these work progresses, we look forward to receiving positive feedback.
Q4: What is the strategic thinking of Pinduoduo's global business, and what are the achievements of Pinduoduo in the next five years?
Chen Lei said that with regard to the globalization strategy, Pinduoduo's global business is a new business. We are constantly exploring and learning to fully promote business development. We will focus on improving supply chain capability, service capability and compliance capability.
In terms of supply chain, our goal is to extend and deepen the supply chain, cover global high-quality businesses and supplies, expand categories, improve supply chain efficiency, reduce business costs, and benefit consumers and businesses. In terms of service capabilities, we try different performance methods to improve performance efficiency, serve diversified consumption scenarios, and optimize customer service capabilities and improve shopping experience through technical means. Compliance capability is the premise of high-quality and sustainable development of the platform, and we will increase investment in this regard.
The purpose of all our investment is to present more high-quality goods to global consumers and provide safe, orderly and differentiated shopping experience.
Q5: Against the background of intensified competition, Pinduoduo has a good profitability. What is the company's plan for service fees? Will marketing investment be gradually tightened?
Liu Jun pointed out that Pinduoduo's profit curve is not nonlinear. We suggest investors not only predict the future performance changes of the company based on the performance of several quarters. We always focus on long-term growth of intrinsic value rather than short-term financial data. In terms of resource allocation, we will carefully plan and adjust investment according to specific investment opportunities in the market. Pinduoduo is still in the growth stage. If we see good value creation opportunities, we will firmly invest. These investments may affect profitability in the short term, but in the long run, they will enhance the internal value of the company.
Q6: What are the growth space and category advantages of Pinduoduo in the agricultural field?
Zhao Jiazhen said that agriculture is the basic platform for a lot of competition. We started with the retail of agricultural products and have been deeply engaged in agriculture, creating a new model characterized by "competition". We have made a lot of model innovations in the agricultural field, such as the origin direct delivery and the "buy more vegetables" platform. Agriculture is an industry that is difficult to do well. However, due to the low degree of product standardization, difficult storage and transportation, and decentralized supply, there is still much room to improve the online penetration rate of agricultural products and the digital operation ability of farmers. We have deeply participated in the transformation of the agricultural supply chain, accumulated valuable experience and trained our team ability.
Pinduoduo will continue to invest firmly in agriculture. Last month, we held the fourth "Duoduo Agricultural Research Science and Technology Competition" to focus on AI planting and encourage the exploration of optimization and commercialization of agricultural production. Our "Agricultural Cloud Action" is also going into various agricultural production areas to provide local farmers with digital upgrading programs. We will continue to invest in agricultural production, circulation and other links to promote agricultural modernization, help improve the quality and efficiency of the supply chain, help farmers increase income, create employment, and contribute to the overall revitalization of the countryside.
When the stock market recovers, open an account first! Intelligent fixed investment, condition sheet, individual stock radar... for you>>
Massive information, accurate interpretation, all in Sina Finance APP
Editor in charge: Yang Chunduan
