TapTechNews May 23rd news, Pinduoduo released its 2024 first quarter financial report yesterday. The revenue in the first quarter was 868.1 billion Chinese yuan, while the market estimated 768.6 billion Chinese yuan, with a year-on-year increase of 131%; the net profit attributable to ordinary shareholders of Pinduoduo was 279.978 billion yuan, with a year-on-year increase of 246%; without applying US Generally Accepted Accounting Principles, the net profit attributable to ordinary shareholders of Pinduoduo was 306.018 billion yuan, with a year-on-year increase of 202%.
Affected by this news, Pinduoduo had a huge shock and rose by more than 7% before the market yesterday, and its total market capitalization reached 215 billion US dollars, once again surpassing Alibaba.
Chen Lei, the chairman and co-chief executive officer of Pinduoduo, said in the subsequent earnings conference call that from the perspective of industry competition, consumers have formed the habit of cross-platform consumption. Consumers will make comprehensive comparisons from multiple dimensions such as product categories, prices, and service quality between different platforms before making a choice.
Chen Lei said: "Facing such a trend, in the first quarter we saw that peers significantly increased their investment. Pinduoduo welcomes healthy competition. In the face of competition, our starting point is to create value for consumers."
TapTechNews noticed that Pinduoduo surpassed Alibaba in market capitalization in the US stock market for the first time last November and once became the largest Chinese concept stock with the largest market capitalization in the US stock market, and its performance has also continued to soar.
In the first quarter report, Pinduoduo stated that the performance growth was mainly due to the following several factors: First, the improvement of the macroeconomic environment. The growth of GDP in the first quarter recovered to more than 5%, providing a solid foundation for the consumer market. Secondly, the promotion of festival consumption such as the Spring Festival has stimulated shopping demand and driven sales growth. Thirdly, the favorable policies such as the government's trade-in program have also injected vitality into the consumer market.
Under the strong rise and competition of Pinduoduo, Taobao under Alibaba has also carried out a number of internal reforms. In April this year, Jack Ma posted a post titled "To Reform and To Innovate" on Alibaba's internal network, stating that "by operating on the big company disease, Alibaba returns to efficiency first and market first, becoming simple and agile".
Jack Ma also predicted the future e-commerce industry in this year's post: "I believe that the e-commerce in three years will definitely not be the most popular e-commerce today... What is important is not who to catch up with today, but to think about how the e-commerce tomorrow should improve the consumer experience... The AI era has just arrived, and everything has just begun, and we are at the right time!"
In addition, the Taobao web version announced the completion of important upgrades on May 6th, including the homepage, shopping cart, search, recommendation, store, details, My Taobao, and news, etc., and has made certain optimization and upgrades for the pain points in the PC shopping process of users.