At the same time, PDD Holdings Inc. Sponsored ADR Class A (PDD.US) has launched a branding and internationalization campaign, and the new Pinduoduo confidently dives into the "deep water zone".

For a listed company, what is more important, short-term profits or long-term sustainable development? This has always been a value question lingering in the minds of many investors. Undoubtedly, the former caters to the preferences of most investors in the capital market, as impressive growth numbers often immediately lead to a rise in stock prices; however, as the saying goes, long-term vision is key. The latter, although often requiring the company to endure fluctuations in performance and outside skepticism in the present, tends to help the company build a deeper moat, ultimately benefiting a larger number of people. In the view of GMTEight, the latest quarterly report released by PDD Holdings Inc. Sponsored ADR Class A (PDD.US) in 2026 provided a vivid sample to the above-mentioned value question. The financial report showed that the company generated revenue of 106.2 billion yuan in the quarter, with a net profit of 12.5 billion yuan, continuing the basic characteristics of "stable revenue, pressured profits" seen in the past few quarters. If we delve into the logic behind this, it is still the continuous investment in the "supporting of billions" and heavy investment in the supply chain that is playing a role, with the platform actively sacrificing profits for merchants and investing back into the industry ecosystem to exchange for a more sustainable growth curve. Beyond the financial data, what is worth noting is the substantial progress on the strategic level of PDD Holdings Inc. Sponsored ADR Class A. At the end of last year, the management of PDD Holdings Inc. Sponsored ADR Class A proposed to "rebuild another PDD Holdings Inc. Sponsored ADR Class A in three years", with the core focus of new Pinduoduo starting its first complete quarter of deepening development in the first quarter of this year. It is reported that the initial 15 billion yuan in cash has already been put in place, the brand's proprietary business is steadily landing, the team is deeply integrated into the frontline of the industry, and the supply chain resources of "PDD Holdings Inc. Sponsored ADR Class A+Temu" are being accelerated. This means that PDD Holdings Inc. Sponsored ADR Class A is accelerating towards a new positioning from a platform that "helps the industry sell goods" to a "self-branded + supply chain organizer" role. With new Pinduoduo entering a new stage of deepening development, China's supply chain has also ushered in a new window of opportunity for branding overseas. New Pinduoduo starts the branding battle for the supply chain So, where does this highly anticipated "branding battle" begin? In fact, new Pinduoduo did not start from scratch. It is a natural extension of PDD Holdings Inc. Sponsored ADR Class A's years of deep cultivation of supply chains in the industry and assistance to industries in transitioning from OEM to branding. From the increase in income certainty of Hainan pineapples to the escape from homogenized competition in Zhongshan lighting, and to the opening up of the "last mile" of Western logistics, these scattered transformations in the fields and factory workshops are laying a good foundation for the evolution of new Pinduoduo. In Hainan, the pineapple industry had long been stuck in the dilemma of "relying on the weather", where even a good harvest did not necessarily mean increased income, and oversupply was the norm. The biggest change brought by PDD Holdings Inc. Sponsored ADR Class A was not just providing farmers with an additional sales channel, but also providing more certainty. The group-buying model created by PDD Holdings Inc. Sponsored ADR Class A reduced customer acquisition costs through social fission; algorithm-based product recommendations allowed high-quality products from Shenzhen Agricultural Power Group to reach the target users accurately; and policies like the "billion subsidy" lowered the threshold for high-quality products from Shenzhen Agricultural Power Group. However, becoming a "internet-famous hot product" is still not enough, as the pineapple industry in Hainan is still transitioning towards a branded, standardized industry chain, which also resonates with the value proposition of new Pinduoduo. Just recently, the "2026 Dodo Special Produce" campaign has already been launched in the pineapple farming area of Hainan. Shifting northwards, the proverb "if you want to buy lamps, go to Guzhen" witnessed the former glory of Zhongshan's lighting industry. Zhongshan Guzhen, with its less than 50 square kilometers of land, once housed over 30,000 operating entities, with lighting sales once occupying 70% of the domestic market. However, many small and medium-sized enterprises have remained at the workshop-style production stage, with a lamp sometimes only being sold by weight. The turning point came after the penetration of e-commerce platforms led by PDD Holdings Inc. Sponsored ADR Class A, allowing many enterprises to re-understand users and define products, and the road ahead for numerous lighting companies was "illuminated" with intelligence and healthiness. Take the brand Tong Vision for example: since entering PDD Holdings Inc. Sponsored ADR Class A in the second half of 2023, monthly sales have consistently remained between 300,000-400,000 yuan, with an average order value of 700-1,000 yuan and a return rate of less than 3%. Of course, the premise of branding is reaching the audience. If a product cannot be efficiently delivered to consumers, even the best brand will be limited to its place of origin. This is perhaps also the reason for PDD Holdings Inc. Sponsored ADR Class A's continuous investment in logistics infrastructure. In the first quarter, PDD Holdings Inc. Sponsored ADR Class A continued to promote free delivery services to remote villages on the basis of the "e-commerce westward expansion", by establishing county-level transfer warehouses and village-level pickup points to solve the high logistics costs and difficulties in delivery in remote rural areas. Taking Shaanxi's Fufeng County as an example, villagers can now receive packages from all over the country at their doorstep, leading to a significant increase in online shopping frequency. This kind of down-to-the-end logistics network not only allows consumers in remote areas to enjoy an equal shopping experience, but also opens up new incremental markets for businesses in the industry, further consolidating the scale effects of the supply chain. Global advancement marks the beginning of a new era of branding for the supply chain Regarding overseas expansion, PDD Holdings Inc. Sponsored ADR Class A naturally has a unique and profound understanding. The latest data shows that Temu has risen to the second largest in global e-commerce website visits, with a monthly visit volume of 1.34 billion and 366 million unique visitors. If Temu solves the issue of "selling Chinese goods to the world", then the question that new Pinduoduo must answer is how "Chinese brands can go global" - a higher-level proposition. Now, with more and more industries in China completing quality upgrades, the output of China's advantaged manufacturing industry to the global market in the form of branding is imminent. In the first quarter of this year, new Pinduoduo's overseas strategy entered a substantive landing stage. With the base of the initial 15 billion yuan in cash already in place, PDD Holdings Inc. Sponsored ADR Class A will continue to invest 100 billion yuan over the next three years. Currently, new Pinduoduo has selected clothing, home, and outdoor as the core categories for the initial launch. The matching suppliers are all well-known factories with complete supply chain and design capabilities, such as BOSIDENG, Youngor Fashion, Camel, etc. The choice of clothing, home, and outdoor categories has deep considerations: clothing and home are the highest-selling categories on Temu, accounting for approximately 40% and 20% of GMV, respectively, while the outdoor category is characterized by consumers being insensitive to brands and demand being far from saturated. The pricing strategy still follows the cost performance route: selling at approximately 4-5 times the production cost, equivalent to discounts of 50-70% or even lower for similar branded products. GMTEight believes that this model has opened new doors for businesses in the industry belt. In the past, Chinese factories either engaged in OEM production for meager processing fees or opened their own stores to sell products, but the high barriers to brand building and long cycles were obstacles. New Pinduoduo provides a third option: businesses focus on production and quality, while the platform handles brand definition, marketing promotion, and global fulfillment. As stated by the management of PDD Holdings Inc. Sponsored ADR Class A, during the phase of deepening development of new Pinduoduo, PDD Holdings Inc. Sponsored ADR Class A will vigorously promote self-branded products, systemically incubate a batch of internationally influential brands, continue to invest heavily in the supply chain, strive to rebuild another PDD Holdings Inc. Sponsored ADR Class A in three years, driving the transformation and upgrading of the supply chain and value leap. With Temu's success leading the way, the branding and overseas agenda for new Pinduoduo and even the entire supply chain is expected to accelerate soon. Leveraging Temu's enormous global traffic pool, the self-branded products incubated by new Pinduoduo do not need to undergo a lengthy cold start but can directly reach hundreds of millions of active users worldwide. It can be expected that with more quality factories from industrial belts joining the new Pinduoduo system, a large number of truly influential Chinese new brands will accelerate emerging and orderly move towards the global stage. From a broader perspective, it should be noted that the significance of new Pinduoduo extends far beyond a mere strategic upgrade for PDD Holdings Inc. Sponsored ADR Class A. What it is attempting to answer is actually the question of how Chinese manufacturing can leverage industrial upgrading and branding to move towards the world. What PDD Holdings Inc. Sponsored ADR Class A is currently doing is laying a solid foundation for this path of branding with substantial investment. While this may not yield super-profitable data exceeding expectations in the short term over one or two quarters, in the long run, it will undoubtedly benefit a larger number of people.