PDD Holdings Incorporation

Latest Results (22.10.2025):

PDD Holdings Incorporation reported its unaudited financial results for the second quarter of 2025, demonstrating a 7% increase in total revenues compared to Q2 2024. Despite the revenue growth, the company experienced a decline in operating profit and net income attributable to ordinary shareholders, reflecting increased costs and strategic investments to support its merchant ecosystem.

Revenue Growth

Total revenues for PDD Holdings in Q2 2025 reached RMB103,984.8 million (US$114,515.7 million), marking a 7% increase from RMB97,059.5 million in the same quarter of 2024. This growth was primarily driven by higher revenues from online marketing services and transaction services.

Operating Profit Decline

The operating profit for the quarter was RMB25,792.9 million (US$3,600.6 million), representing a 21% decrease compared to RMB32,564.5 million in Q2 2024. Non-GAAP operating profit also saw a similar decline of 21%, totaling RMB27,747.8 million (US$3,873.4 million).

Net Income Reduction

Net income attributable to ordinary shareholders decreased by 4% to RMB30,753.5 million (US$4,293.0 million) in Q2 2025, down from RMB32,009.4 million in Q2 2024. The non-GAAP net income attributable to ordinary shareholders also declined by 5% to RMB32,708.4 million (US$4,565.9 million).

Increased Costs and Investments

Rising costs impacted profitability, with total costs of revenues increasing by 36% to RMB45,858.9 million (US$6,401.7 million). Operating expenses rose by 5% to RMB32,333.0 million (US$4,513.5 million), largely due to higher fulfillment fees, bandwidth and server costs, payment processing fees, and increased sales and marketing expenses.

Strategic Investments

PDD Holdings continued to invest significantly in merchant support initiatives during Q2 2025. The company remains committed to fostering a sustainable platform ecosystem, prioritizing long-term growth and efficiency improvements for merchants despite the short-term impact on profitability.