"New Pinduoduo" opens up imagination space for the global advancement of the supply chain. How should we understand "Recreating a PDD Holdings Inc. Sponsored ADR Class A (PDD.US)"?

This time, PDD Holdings Inc. Sponsored ADR Class A (PDD.US) really changed. The disclosure of the 2025 Q4 and full-year performance on March 25 by PDD Holdings Inc. Sponsored ADR Class A seems to continue the "steady" temperament revealed in the financial reports of the previous few quarters. However, behind the expected financial data, the usually low-profile PDD Holdings Inc. Sponsored ADR Class A has announced that it will mobilize the entire group in the next three years, with the company making efforts to promote the newly established "New Pinduoduo" to achieve a high-quality transformation of domestic self-owned brands within three years, driving the transformation and upgrade of the Chinese supply chain and leap in value. In connection with the slogan "Rebuilding Another Pinduoduo" announced by the management of PDD Holdings Inc. Sponsored ADR Class A at the end of last year, this once considered the "most conservative" enterprise in the current Chinese e-commerce industry has finally fully revealed its aspirations for the future to the market. Finding the "Answer" for outward growth in the industrial belt Before analyzing and looking forward to the new strategy of PDD Holdings Inc. Sponsored ADR Class A, it is necessary to first understand what "New Pinduoduo" is. According to the introduction by PDD Holdings Inc. Sponsored ADR Class A, "New Pinduoduo" is a newly established business department of the company, and a new dedicated company has been established. Next, "New Pinduoduo" will combine the supply chain resources of "PDD Holdings Inc. Sponsored ADR Class A+Temu" to start building a self-owned brand model. GMTEight believes that "New Pinduoduo" is further inheritance and development of a series of development strategies of PDD Holdings Inc. Sponsored ADR Class A in recent years, including the continuity of the development ideas of PDD Holdings Inc. Sponsored ADR Class A as well as new changes and meanings. From the early "billion subsidies" and "new quality supply" to the comprehensive upgrade of "billion support" last year, PDD Holdings Inc. Sponsored ADR Class A has always focused on one thingsupporting the Chinese supply chain and empowering the industrial belt merchants. Today, "New Pinduoduo" goes a step further, integrating the supply chain resources of "PDD Holdings Inc. Sponsored ADR Class A+Temu" to systematically incubate a batch of brands of different categories and positions facing the global market in a self-owned brand model, driving the improvement of manufacturing standards in the industrial belt towards "high-end value". In support of "New Pinduoduo," PDD Holdings Inc. Sponsored ADR Class A has already injected 15 billion yuan in cash in the first phase, and will invest another 100 billion yuan in the next three years. The reason why PDD Holdings Inc. Sponsored ADR Class A is making every effort to promote the transformation of domestic self-owned brands may not be able to bypass a classic theoretical frameworkthe "smile curve". In the early 1990s, Zhu Rong proposed this concept: in the value chain of the manufacturing industry, the technology and patents on the left end and the brand and service on the right end occupy the high points of added value, while the assembly and manufacturing in the middle have long been stuck in the "value niche" of low prices and low profits. For the millions, or even tens of millions, of industrial belt merchants in China today, this "smile curve" is still a realitythey have world-class manufacturing capabilities, but often can only earn the thinnest processing fees. The emergence of "New Pinduoduo" is actually PDD Holdings Inc. Sponsored ADR Class A's solution to this structural problem: no longer content with just helping factories "sell off goods," but rather deeply intervening in product definition, manufacturing standards, and global marketing through a self-owned brand model, helping high-quality industrial belt merchants move from "OEM production" to "brand output". Silkpalm Group's journey from Zhejiang to Southeast Asia with the help of PDD Holdings Inc. Sponsored ADR Class A is a vivid example. This paper towel brand, which is far from top in China, was on the brink of bankruptcy when it first entered PDD Holdings Inc. Sponsored ADR Class A, due to inventory accumulation and tight cash flow. However, thanks to the empowerment of PDD Holdings Inc. Sponsored ADR Class A, Silkpalm has fully optimized product research and development and production, leading to a comprehensive improvement in product specifications, texture, and feel. In this era where "even good wine is afraid of deep alleys," PDD Holdings Inc. Sponsored ADR Class A not only helps Silkpalm upgrade quality and evolve its brand, but also guides Silkpalm to "go out." Data shows that Silkpalm entered the top 5 paper towel market in Vietnam in just three years. In the process of transforming industrial belts from OEM to brand, the profits of the assembly and manufacturing stages in the middle will no longer be "squeezed," but will be jointly supported by economies of scale and brand premiums. By extension, it can be expected that with the emergence of "New Pinduoduo," more industrial belt merchants will benefit from PDD Holdings Inc. Sponsored ADR Class A's commercial practice of straightening the "smile curve." How to understand the certainty of "Rebuilding Another PDD Holdings Inc. Sponsored ADR Class A" in three years? Since 2026, the intensity of political conflicts at GEO Group Inc has further intensified, and certainty is becoming increasingly scarce. From an investment perspective, companies that combine growth elasticity and certainty in the future will inevitably gain more and more supporters. The slogan "Rebuilding Another PDD Holdings Inc. Sponsored ADR Class A" announced by the management of PDD Holdings Inc. Sponsored ADR Class A earlier can be said to be timely, indicating that the visibility of PDD Holdings Inc. Sponsored ADR Class A's growth will be higher, and the certainty of its growth will be stronger in the future. One background worth noting is that at the end of last year, PDD Holdings Inc. Sponsored ADR Class A reorganized its corporate governance structure and implemented a co-chair system. With the approval of the board, Zhao Jiazhen was appointed co-chairman, serving as co-chairman and co-CEO of the group with Chen Lei. PDD Holdings Inc. Sponsored ADR Class A believes that Zhao Jiazhen's appointment as co-chairman will help the company move into the next stage of upgrading and rebuilding, and will promote the overall strategy of "focusing, reinvesting in supply chain upgrades, and high-quality development." After taking on the new position, Zhao Jiazhen clearly outlined the strategic direction of the next stage for PDD Holdings Inc. Sponsored ADR Class A: to focus more on the high-quality development of the supply chain, to achieve platform reconstruction through this core key, and to drive the value leap of the ecosystem. Looking back at the past three years, Temu has quickly expanded to over 90 countries globally, completing in three years what would have taken PDD Holdings Inc. Sponsored ADR Class A's domestic e-commerce 10 years. This validates the replicability of PDD Holdings Inc. Sponsored ADR Class A's supply chain capabilities and gives the management team more confidence in the next stage of "reconstruction". Today, the landing of "New Pinduoduo" is binding Temu's verified global traffic and fulfillment capabilities with the deep supply depth of the domestic industrial belt, and in a self-owned brand model, systematically incubating a group of Chinese brands with international influence. According to the management, in order to escort the industrial belt merchants for the global advance, PDD Holdings Inc. Sponsored ADR Class A's "New Pinduoduo" not only plans to reinvest 100 billion yuan, but also to launch a series of supporting measures while providing sufficient funds, including customized manufacturing solutions for the domestic industrial belt, nurturing a variety of self-owned brands with different positions and categories; forming a specialized team to dive into the industrial belt, leveraging the platform's digital advantages to provide integrated solutions to merchants; introducing a comprehensive brand going overseas solution, providing all-round services such as product standards, storage logistics, intellectual property services, legal aid, and regulatory reviews. In the view of GMTEight, PDD Holdings Inc. Sponsored ADR Class A, which invests billions in three years, implements a series of comprehensive measures to support the industrial belt's overseas expansion, is fundamentally no longer just a platform for "selling goods," but an organizer of industrial organizations and a builder of ecology in conjunction with the growth of the Chinese supply chain. PDD Holdings Inc. Sponsored ADR Class A's development strategy of tapping potential internally and expanding space externally not only responds to the policy expectations of "anti-internal circulation" but also injects more certainty into itself. As the expectations of this "visible growth" are fulfilled, the market revisiting PDD Holdings Inc. Sponsored ADR Class A's long-term valuation logic will be a natural result.