After reading Pinduoduo's financial report, I found that they don't seem to care about money

Bad reviews

2024-05-24 15:43Posted in Zhejiang Digital Creators

Just yesterday, Pinduoduo took out a quarterly financial report and directly took down the homepage of the bad reviewer.

First-quarter revenue increased 131% year-over-year, and adjusted net income increased 202% year-over-year.

This is the fifth consecutive quarter that Pinduoduo has exceeded market expectations.

After the data came out, there were waves of people joining in the fun. Many netizens' opinions on this matter are "I didn't expect it", and stalks similar to "I love to ignore Pinduoduo in the past, but now I can't afford it" is also being played.

In short, Pinduoduo has earned everyone's attention this time, but I also found that everyone's comments on Pinduoduo seem to be getting a little more and more hyperthyroid.

Although the bad reviewer checked some information at the first time, carefully studied the business of Pinduoduo during this time, and found that he did have something.

But I don't actually plan to follow the trend today to tout how much money Pinduoduo has made and how much the stock price has risen, but I want to change the angle so that everyone can look at Pinduoduo's short-term performance fluctuations rationally and objectively.

It is undeniable that Pinduoduo did make a few right moves in the first quarter, and the domestic main station has made a lot of contributions.

During the Chinese New Year, Pinduoduo engaged in special Spring Festival marketing, successively pushed what "New Year's Festival", and "the Spring Festival does not close", tens of billions of subsidies are all based on exercises, and what are the 10,000 people group and multi-person group, the main thing is to let consumers spend a small amount of money for the New Year.

Don't hide it from everyone, the bad reviewer still bought a lot of New Year's goods there during the New Year, so you can say that there is no share of our revenue this quarter, right?

In addition, I also noticed that Pinduoduo also engaged in a "Xinjiang free shipping" service a while ago, express delivery can be sent into the village after the end of free shipping, Xinjiang and other western regions should also contribute a lot to the quarterly report, the future of the big free shipping "Jiangsu, Zhejiang and Shanghai" may really become "Xinjiang, Zhejiang and Shanghai".

In addition to the steady growth of the domestic main station, the name of "overseas version of Pinduoduo" Temu has also started, and in less than two years, it has opened up more than 50 overseas markets. In the first two months, a semi-managed model was launched, and it is estimated that I also want to continue to work cross-border e-commerce.

But the bad reviewer thinks that we should pour cold water on Pinduoduo, and we still have to splash it.

Let's just say that the semi-managed model just mentioned is not only done by Temu.

For those who don't understand the black language of e-commerce, Temu's full custody is a platform that all-in-one package of commodity operation, logistics and after-sales service, merchants only need to supply good goods, and then send the goods to Temu's domestic warehouse.

And now that Temu is semi-hosted, there are more places for merchants to operate.

For example, in the logistics area, Temu's previous full custody model was because of the logistics (cross-border + final mile), so merchants don't have to worry about anything.

Semi-custodian will throw the warehousing and logistics work to the merchants, the original intention is not to give the merchants strength, but to attract merchants with overseas local delivery capabilities, and then expand their own categories, such as large household appliances or something.

In this way, the logistics cost has been reduced, the logistics timeliness has gone up, and there are more SKUs that can be released.

However, many cross-border e-commerce platforms are now popular with the semi-custody model, and the situation of each is not the same, and the competition is becoming more and more fierce.

In the face of competition, Temu also has a set, after all, the Pinduoduo team was originally played out of competition. In the future, they said that they should work hard and improve their internal skills in the three major capabilities of supply chain, compliance and service.

At present, economic recovery is the general trend, and the data of the e-commerce business of the large domestic companies that have issued financial reports during this period are worth mentioning separately. If you can't take advantage of the current trend, then these big factories may also have to reflect on it.

Back to Pinduoduo's financial report data this time, the bad reviewer feels that it blows wildly when it rises, and it sprays violently when it falls, and it is actually a very boring thing to pay too much attention to Pinduoduo's short-term performance fluctuations. . .

It is undeniable that financial data can indeed reflect the performance of a company. But putting growth aside and re-examining the value of Pinduoduo through a long-term lens may be more helpful for us to understand the company.

In this earnings call, Chen Lei, chairman of Pinduoduo Group, said this sentence: "Do not pay too much attention to performance fluctuations, focus on endogenous value improvement".

To be honest, my first reaction when I saw this sentence was, a little unconvinced. But as I flipped through the materials and read some bound volumes, I was ready to retract what I had just said.

Pinduoduo's investment in agriculture is a typical example.

Before, the bad reviewer could often see the news of what their family was doing to help farmers, but to be honest, I basically didn't pay much attention to it...

Because I think that anyone will do this kind of superficial work that is the icing on the cake after development, just like Xiao Heipang said that if he wins the 100 million lottery, he will definitely donate 5 million. I believe this sentence, provided that he actually wins the lottery.

But I found out that Pinduoduo was not a ticket to subsidize farmers after it was developed. On the contrary, in agriculture, Pinduoduo is a proper long-termist.

At the earliest, Pinduoduo started with agricultural products, including the first shareholder letter in 2018, which also mentioned the "spelling" model to help the circulation of agricultural products. After that, every time they sent a performance report, agriculture was always an unavoidable topic.

In recent years, Pinduoduo has launched the "Agricultural Cloud Action" and "Ten Billion Agricultural Research Project", not only focusing on the supply chain of agricultural products, but also helping agriculture with science and technology.

For example, tens of billions of subsidies have been given to Xinjiang's agricultural products, which not only helped Xinjiang farmers solve the demand problem, but also allowed the big guys to eat cheap Xinjiang melons and fruits.

There is also a very popular "ban banana green" in a book a while ago, as soon as the concept came out of the circle, Pinduoduo also took the opportunity to meet everyone's needs. Tens of billions of subsidies and seckill channels have made preferential subsidies for apple bananas, which have driven the sales of many apple bananas on the platform.

According to Pinduoduo's public data, the search volume for "banning banana green" increased by 70% week-on-week, and the number of orders increased by about 30%.

In addition to agriculture, the bad reviewer found that Pinduoduo likes to mention one word at every turn in the past two years: high-quality development.

It sounds like a bluff, but it's not that mysterious. Last year, after the release of the first quarter financial report, Pinduoduo engaged in a "10 billion ecology", which is to build a business ecology.

For example, the real-name purchase of "non-kitchen knives" was implemented, and those who engaged in feudal superstition and pornography were also dealt with.

This is another force in agriculture, and it is also a governance platform ecology, now let's look back, is Pinduoduo really only a price advantage?

The "endogenous value" mentioned by Chen Lei this time is actually from the first shareholder letter of Pinduoduo, and it is still being mentioned.

It may allow users to get what they want for the best money, or it may improve the quality and efficiency of the agricultural supply chain, but whatever it is, these long-term investments have really helped them get to where they are now.

In the end, the bad reviewer feels that Pinduoduo is a company worth studying.

After all, some people think that it is pursuing true long-termism, some say that it will only be a trick of price, and some people say that it creates new business models...

But whether you believe or doubt, whether what Pinduoduo is doing is right, I think there will be a clearer answer in the near future.

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