After reviewing PDD Holdings Inc's (PDD.US) Q3 earnings report, one standout takeaway is that its commitment to "benefiting the broadest base of ordinary consumers with affordable, high-quality services" is far from empty rhetoric. On the evening of November 18, PDD released its latest quarterly results. Despite continued investments in its "100 Billion Subsidies" initiative slowing revenue and profit growth again, the company’s deliberate "slowdown" signals a deeper shift in priorities beyond mere numbers.
Having just marked its 10th anniversary, PDD has achieved remarkable scale at an unprecedented pace, drawing widespread attention. Now, as an industry leader, its strategic focus has subtly evolved—placing greater emphasis on public welfare, long-term ecosystem health, and value creation for users, merchants, industries, and society at large. The "100 Billion Subsidies" program epitomizes this shift.
In Q3, the second consecutive quarter of the subsidy initiative, PDD doubled down on agricultural e-commerce. Its "Duo Duo Premium Produce" campaign reached dozens of farming regions, helping farmers boost yields and income. At this pivotal decade milestone, PDD’s future trajectory becomes clearer through its earnings. As Chairman and Co-CEO Lei Chen stated, PDD remains dedicated to its core e-commerce mission, investing firmly in platform and industrial upgrades to stride into the next decade as a "Costco + Disney" hybrid.
**A More Mature PDD Through the Earnings Lens** In China’s business landscape, where跨界 (cross-sector expansion) is trendy, PDD’s focus on e-commerce mastery stands out. If one word captures its decade-long journey, "maturity" fits best—not just commercially, but in its deepened understanding of social responsibility.
Q3 actions consistently reflected this ethos. The "Duo Duo Premium Produce" initiative partnered with farmers in Hubei, Henan, Shandong, Sichuan, and Shaanxi, offering tailored solutions to transition from scale-driven to quality-driven production. Agriculture, often deemed high-risk and low-margin, saw PDD’s unwavering commitment: ￥1 billion in subsidies and ￥2 billion in traffic resources fueled the "Harvest Festival," connecting 300,000 agri-merchants with urban consumers.
Beyond subsidies, PDD is tackling upstream challenges. Initiatives like the "2025 Global AgTech Challenge" (co-hosted with FAO and Zhejiang University) spotlighted digital solutions—from smart grain storage to desert farming—among 519 global entries, underscoring PDD’s push to modernize agriculture.
**PDD’s Collaborative Industrial Philosophy** At its current scale, PDD is redefining ecosystem synergy. Reaffirming the "Costco + Disney" vision, Chen emphasized high-quality growth. Here, Costco symbolizes value-for-money (reflecting supply-chain empowerment), while Disney embodies joy—together, they represent PDD’s dual focus on efficiency and experience, reducing transaction costs while delivering beyond mere commerce.
To this end, PDD’s "New Quality Supply" team engaged with industrial clusters (e.g., Huizhou snacks, Foshan children’s wear) in Q3, leveraging digital tools and subsidies to drive incremental innovation and break homogeneity. Results are tangible: per its *New Quality Supply Anniversary Report*, merchant numbers surged—Gen Z sellers grew 31% (post-95) and 44% (post-00), while premium SKUs and branded stores expanded over 50%, signaling industrial upgrades.
On the demand side, PDD’s logistics fee waivers in western China spurred 50%+ order growth for pet supplies, outdoor gear, and collectibles, proving instant impact.
**Simplicity and Responsibility: PDD’s Core Philosophy** PDD’s earnings reveal a straightforward ethos: "ecosystem" and "responsibility." By voluntarily slowing growth to reinvest in society, PDD charts a steadier, longer path for its next decade—a recalibration welcomed by all stakeholders.