PDD Holdings Inc. Sponsored ADR Class A (PDD.US) releases Q1 financial report, "supporting billions" to help businesses and farmers, New Pinmu helping supply chain transformation and upgrade.

On May 27th, PDD Holdings Inc. Sponsored ADR Class A (PDD.US) released its financial report for the first quarter of 2026, ending on March 31st. Benefiting from continuous investment in strategic initiatives such as "supporting billion-dollar businesses," the platform's ecosystem and supply chain system have steadily improved. In the first quarter, PDD Holdings Inc. Sponsored ADR Class A achieved a revenue of 106.2 billion yuan. In December of last year, at the annual shareholder meeting, PDD Holdings Inc. Sponsored ADR Class A announced the implementation of a co-chairman system and shifted the company's strategic focus to "heavy investment in China's supply chain," aiming to recreate a new PDD Holdings Inc. Sponsored ADR Class A within three years. In the first quarter of this year, the new PDD Subsidiary company officially established its presence in Shanghai, steadily advancing its self-operated brand business. The strategy of "recreating PDD Holdings Inc. Sponsored ADR Class A in three years" has entered a new stage of deepening development. At the same time, the long-term investment in the "supporting billion-dollar businesses" strategy by Pinduoduo continues to increase support for merchants and industries, continuously improve platform governance and compliance, and actively fulfill greater social responsibilities. "This year marks the beginning of the second decade of PDD Holdings Inc. Sponsored ADR Class A, and it is a crucial year for the overall reshaping of the company's organization and culture around 'high-quality development in the new decade' since I took on the role of chairman," said Zhao Jiazhen, Co-Chairman and Co-CEO of PDD Holdings Inc. Sponsored ADR Class A. We require the company, from top to bottom, to prioritize safety and compliance, to build on social responsibility as a cornerstone, and to focus on high-quality development as the core. We aim for continuous improvement, to drive profound changes in business, teams, internal processes, and organizational management, and actively assume the responsibilities and obligations of a platform-based enterprise to create more positive value for users, industries, and society. "This year is the first year of the 'recreating PDD Holdings Inc. Sponsored ADR Class A in three years' strategy, and a crucial period for the transformation and upgrade of the supply chain. We will carry a sense of gratitude and awe, persist in not forgetting our roots as the premise and basis for all development, and consider it a guiding principle and reliance to achieve new breakthroughs," said Chen Lei, Co-Chairman and Co CEO of PDD Holdings Inc. Sponsored ADR Class A. In the phase of deepening development of the new PDD Subsidiary, we will full throttle advance self-branded business, systematically incubate a group of self-operated brands with international impact, continue to heavily invest in the supply chain, strive to recreate a new PDD Holdings Inc. Sponsored ADR Class A within three years, drive the transformation and upgrade of the supply chain and achieve value leap. The "supporting billion-dollar businesses" policy continues to invest heavily in assisting merchants and farmers, while the "free shipping to villages" initiative activates rural economies. In the first quarter of this year, PDD Holdings Inc. Sponsored ADR Class A's "supporting billion-dollar businesses" policy continued to be highly invested, and the special actions such as "Duo Duo Good Specialties," "New Quality Supply," and "E-commerce Westward Expansion" were iteratively upgraded. In mid-March, PDD Holdings Inc. Sponsored ADR Class A officially launched the "2026 Duo Duo Good Specialties" initiative, deepening Shenzhen Agricultural Power Group's planting and cultivation, cold chain logistics, and deep processing in the upstream and downstream sectors based on last year's support for products and businesses, aiding in the improvement of the Shenzhen Agricultural Power Group's supply chain to enhance quality and efficiency, and promoting the value-added of agricultural areas. Currently, the first phase projects have been launched in Nanning Tangerines, Hainan Pineapples, Tongren Matcha Tea, Ningxia Goji Berries, Jiangsu Lianyungang Port Seafood, and Yueyang Sauce Duck products. In industry belts, a new round of the "New Quality Supply" initiative continues to advance towards actual and deep integration. It has entered into Zhangzhou snacks, Zhengzhou skincare, Yiwu jewelry, Qingdao enamelware, Zhongshan lighting, Tianjin chocolates, and other industry belts. Many merchants have benefited from platform support, shifting their product matrices from "big and comprehensive" to "few and refined," and transitioning their production methods from batch production to customized production based on user demand, accelerating the transition to a branded path. Many traditional "screwdriver factories" have gradually upgraded to smart factories, focusing on product, technology, brand, and channel synchronously, transitioning from "selling a lot" to "selling well," providing more certainty and added value to the supply chain system, becoming a new engine for the transformation and upgrade of the industry. Additionally, PDD Holdings Inc. Sponsored ADR Class A's "E-commerce Westward Expansion" policy continues to bring new volumes to merchants. For example, in the lighting industry in Zhongshan, the cost of shipping a large ceiling light from Zhongshan to Gansu used to be around forty to fifty yuan. After the platform covers the secondary logistics transit costs, the shipping costs have been reduced to around ten yuan, leading to a year-over-year order volume increase of over 30% in many businesses in western regions. In the first quarter, PDD Holdings Inc. Sponsored ADR Class A also continued to advance the free delivery service to villages on the basis of "E-commerce Westward Expansion," which has shown initial effectiveness. For example, in some counties in Henan Province, PDD Holdings Inc. Sponsored ADR Class A has established county-level transfer warehouses, village-level collection points, and other end-point parcel delivery networks. As of March, more than 70% of administrative villages in the local county towns are covered by the "delivery to villages" initiative, with a daily average of nearly ten thousand parcels in the transfer warehouses. This initiative not only allows more rural areas to become "free shipping areas" but also creates more job opportunities locally, injecting new vitality into county and rural economies. Regarding platform governance and compliance, PDD Holdings Inc. Sponsored ADR Class A continues to enhance food safety measures. In addition to measures already in place, the company has introduced over 20 governance measures such as operating qualification compliance reviews, food advertising management, food live-streaming control, food database construction, compliance inspections of live broadcast scenes, improved food safety reporting channels, strengthened technical and manual inspections, and has shortened the processing time for non-compliant stores to hours, continuously strengthening the platform's governance capabilities and compliance. PDD Holdings Inc. Sponsored ADR Class A's investment in agricultural research and technology has continued this year. Recently, the fifth "Duoduo Agricultural Research and Technology Competition" final began, and the four teams that entered the finals have completed the construction of self-designed plant factories. The final teams will use this facility to explore a strawberry cultivation program that focuses on "high-quality, high-yield, low-cost, and low-energy consumption." Since its inception in 2020, the Duoduo Agricultural Research and Technology Competition has evolved from a mere industry competition into a testing ground for agricultural research and technology transformation, an incubator for young agricultural research talents, contributing more intelligence to the development of agricultural modernization. The new PDD Subsidiary is accelerating the incubation of self-operated brands, promoting the value leap of the supply chain In December of last year, at the shareholder meeting, PDD Holdings Inc. Sponsored ADR Class A solemnly announced the "recreating PDD Holdings Inc. Sponsored ADR Class A in three years" strategy, fully engaging in the reconstruction and upgrading of the China supply chain. In the first quarter, the three-year strategy entered a new stage of deepening development, with PDD Holdings Inc. Sponsored ADR Class A establishing the "New Pinduoduo" subsidiary in Shanghai, building a self-operated brand model. The company has initially injected 15 billion yuan in cash, with plans to invest 100 billion yuan in the next three years. Currently, the New Pinduoduo team is steadily advancing its self-operated brand business, deeply integrating "PDD Holdings Inc. Sponsored ADR Class A + Temu" supply chain resources at the forefront of the industry, collaborating with globally renowned IPs for deep co-creation, creating an IP matrix, accelerating the incubation of brands for different markets and categories, empowering the supply chain system in all aspects to transition towards branding, driving a value leap in the supply chain system. In the first quarter, PDD Holdings Inc. Sponsored ADR Class A's cross-border e-commerce business maintained steady development in various global markets, creating broader markets and spaces for the future growth of self-operated brands. Simultaneously, the long-term "supporting billion-dollar businesses" strategy by PDD Holdings Inc. Sponsored ADR Class A, rooted in industry belts, has provided more examples and experiences for the heavily invested supply chain. "Judging from the results achieved by the 'supporting billion-dollar businesses,' brand development presents a new opportunity for the upgrade of the supply chain, which gives us more confidence in the self-operated brand business of the new Pinduoduo," said Chen Lei. Compared to the domestic market, the brand development of global e-commerce businesses is still in its early stages. User demand for brands in different markets has not been effectively met, and there is greater growth potential for brand development in various categories. Through the self-operated model of the new Pinduoduo, we aim to systematically incubate a group of self-operated brands with international impact, driving a comprehensive transformation and upgrade of the supply chain. Zhao Jiazhen stated, "This year marks a new starting point for the second decade of PDD Holdings Inc. Sponsored ADR Class A, as well as a new stage in the deepening development of the new Pinduoduo business. This new development stage is also an opportunity to shape a new team, new mechanisms, and new culture. The new team will rise to the challenges, work diligently, and respond to external concerns and expectations with solid actions and measurable results, not disappointing the trust and support of all parties. We will accelerate the transformation and reconstruction of the supply chain, striving to recreate a new PDD Holdings Inc. Sponsored ADR Class A in the next three years."