Pinduoduo's 2025 revenue growth target is 10%, and "New Pinduom" launches brand self-operation

Company intelligence expert 《Caijing Tuyu》 learned that on March 25, PDD (PDD.US) released its financial results for the fourth quarter and full year of 2025, covering the period ended December 31.

In the fourth quarter, PDD’s revenue was RMB 123.9 billion, up 12% year over year; net profit was RMB 24.5 billion, down 11% year over year, compared with RMB 27.4 billion in the same period last year. For the full year, revenue was RMB 431.8 billion, up 10%; net profit attributable to shareholders was RMB 99.4 billion, down 12% year over year.

In its earnings release, PDD also announced that it will form “New Pinge,” integrating the supply chain resources of “PDD + Temu,” and launching brand self-operation.

It is worth noting that in December last year, PDD Group announced at its annual general meeting an upgrade to the company’s governance structure and the implementation of a co-chair system. With approval from the board of directors, Zhao Jiazhen was appointed Co-Chairman, serving alongside Chen Lei as Co-Chairman of the Group and Co-CEO. PDD said this move will help accelerate the implementation of the Group’s overall strategy of “heavily investing in China’s supply chain.”

On March 25, before the trading session on PDD’s U.S. shares, the stock once rose by more than 5%, with a total market capitalization of $139.253 billion.

「New Pinge」will cultivate a batch of self-operated brands with different positioning and multiple categories

During the earnings conference call, PDD disclosed that the three-year strategy established by the prior shareholders’ meeting is being advanced steadily and has begun to deliver results. The first implementation initiative is to form “New Pinge,” advancing the cross-border business into a brand-centered new stage.

“Over the past three years, the Temu business has expanded to more than 90 countries worldwide, completing in 3 years the decade-long journey of PDD’s domestic e-commerce business.” Zhao Jiazhen said that in the next stage, based on the platform-based operations of Temu, the company will fully launch the brand self-operation model with “New Pinge,” and continue to heavily invest in China’s supply chain through the self-operation model—building higher manufacturing standards, incubating a batch of brands with international influence, and helping Chinese manufacturing move toward a high-quality, brand-driven path.

Meanwhile, in the new stage, “the company is not aiming for diversification, but rather to focus more—focus on the high-quality development of the supply chain. By using this core key, we will enable the reinvention of the platform and drive a value leap for the ecosystem.”

It is understood that “New Pinge” will focus on three major measures.

First, establish a dedicated “New Pinge” subsidiary, with an investment of RMB 100 billion over the next three years, fully covering domestic industrial belts, rolling out customized manufacturing solutions, and cultivating a batch of self-operated brands with different positioning and multiple categories;

Second, form a dedicated team to go deep into industrial belts, leverage the platform’s digital advantages to provide an integrated solution for products, technology, and marketing to merchants, promote industrial belts to raise manufacturing standards, and complete transformation and upgrading;

Third, roll out a full-scope brand overseas expansion solution, providing end-to-end services such as product standards, warehousing and logistics, IP-related services, legal aid, regulatory review, and more—ensuring industrial belts have protection as they go overseas.

At present, the “New Pinge” dedicated subsidiary has already been established in Shanghai, and the first batch has received a cash capital injection of RMB 15 billion.

Strategic upgrade: “heavily investing in China’s supply chain”

At PDD’s shareholders’ meeting at the end of 2025, the company also announced that it would further upgrade the strategic focus to “heavily investing in China’s supply chain.”

During the call that evening, Zhao Jiazhen said that 2025 is PDD’s 10th year since its founding and also the year with the largest investment in high-quality development. China’s supply chain system has already become a key force supporting the platform ecosystem. 2026 will be a new starting point as it moves into the next stage; it will continue to heavily invest in China’s supply chain, and we believe there will be an opportunity to recreate another PDD in the next three years.

Chen Lei, Co-Chairman and Co-CEO of PDD, said during the call that over the past year, the global business has made breakthrough progress. It already covers nearly 100 markets and has also formed a certain scale.

“In this process, we believe that corporate governance and the growth of internal talent are not keeping up with business development, and we are stretched thin in many places. In addition, the current international environment is changing very quickly. We believe it is necessary to carry out a systematic re-creation of organizational culture and corporate governance.”

In early April last year, PDD officially launched the “RMB 100 billion support” flagship program for merchants. Over the next three years, the company plans to invest more than RMB 100 billion in resources such as funds and traffic, to fully build a win-win business ecosystem involving users, merchants, and the platform.

With sustained investment in “RMB 100 billion support,” special initiatives such as “DuoDuo Specialty Products,” “new-quality supply,” and “e-commerce going west” have been rolled out one after another. The scope of support for the supply chain has also expanded from leading merchants and small and mid-sized merchants to all segments of the industrial chain, helping merchants in different categories achieve differentiated development and completing the leap from categories and quality to brands, significantly improving supply chain efficiency and the overall capabilities of the industry.

「Continued fluctuation in future profit margins will be the norm」

“Over the past year, we indeed received some inquiries from regulatory institutions. As global business develops rapidly, we have a certain scale in each country, and I think it is understandable that this kind of situation occurs.”

When discussing the impact brought by regulation, Chen Lei said during the call that regulation will lay a solid foundation for the company to enter the next stage and also point the direction for the company in a rapidly changing international environment.

He further noted that in the future period, the focus of the international business development will still remain on investment, and it will not directly affect consumers’ shopping experience.

Zhao Jiazhen said that, to meet consumers’ continuously evolving needs, the company is working closely with platform merchants, continuously exploring and rolling out business models that can adapt to the new environment. And any new model—from the beginning to full rollout—requires the platform to make decisive resource investments at the initial stage.

“Given the timing mismatch between investment and returns, this will inevitably have a direct impact on our performance in a specific phase. In terms of short-term financial performance versus the long-term value of the platform ecosystem, we will firmly choose the latter—therefore, the company’s profit margins will continue to show ups and downs and volatility across different quarters, and this will be the norm.”

He also said that last year the company duly announced at the shareholders’ meeting that a major strategy is being translated into specific project implementations. Current business and organization are undergoing profound changes, and “we** suggest that everyone should not pay too much attention to the profit margin indicator of a single quarter, but instead focus more on the high-quality development of our platform ecosystem. Only with a healthy platform ecosystem and a strong supply chain can the platform achieve long-term, sustainable growth in intrinsic value.**”