PDD reports RMB 106.2 billion in Q1 revenue but sees net income decline to RMB 12.5 billion amid heavy long-term investments.
PDD Holdings posted a 11% year-over-year increase in first-quarter revenue, reaching RMB 106.2 billion. However, net income attributable to ordinary shareholders fell to RMB 12.5 billion from RMB 14.7 billion in the same period last year.
The company attributed the earnings decline to prioritized investments in long-term ecosystem development, including a new first-party brand model. PDD launched a dedicated Shanghai unit with RMB 15 billion in initial funding and plans to invest RMB 100 billion over three years.
Management also highlighted ongoing spending on supply chain and logistics, aiming to reduce shipping costs and support higher-quality production. These efforts are expected to boost orders in western provinces and improve merchant compliance.