"Turning Around 'No Profit' Forecast with 11 Trillion Won Net Profit"
"This Achievement Is the Result of Long-Term Investment"
Chinese e-commerce company Pinduoduo's revenue last year nearly doubled compared to the previous year. The global sales strategy led by Temu, a direct purchase platform operated by Pinduoduo, has been successful, accelerating the company's expansion.
According to China's Pengpai News on the 20th, Pinduoduo's revenue last year was 247.68 billion yuan (approximately 46.03 trillion KRW), a 90% increase from the previous year. Net profit reached 60.0265 billion yuan, also up 90% during the same period. This surpassed industry expectations that it would be difficult to generate profits in the early stages of market entry.
In particular, the company recorded 89 billion yuan in revenue in the fourth quarter alone, showing a 123% growth compared to the previous year. The fourth-quarter performance significantly exceeded market expectations (75.93 billion yuan). During this period, net profit rose 146% to 23.28 billion yuan.
The company focused heavily on research and development (R&D) last year to enhance market access. The annual R&D expenditure was 11 billion yuan, with 2.9 billion yuan spent in the fourth quarter alone, a 19% increase from the previous year. Zhao Jiazhen, Co-CEO, explained, "Thanks to the overall recovery in consumption and consumer promotion measures, we were able to create more value for consumers and businesses, leading to revenue growth."
Zhao CEO added, "This year will be an important year to deepen Pinduoduo's high-quality development strategy. We will focus on high-quality long-term investments and help consumers achieve high-quality consumption upgrades."
Pinduoduo Chairman and Co-CEO Chen Lei said, "Over the eight years since our founding, we have always focused on our core business. The achievements we have made are not only the short-term effects of third-quarter promotions but also the fruits of long-term investments." Chen CEO added, "We will maintain investments and explore and cultivate new productive forces for high-quality development. We will promote the application and transformation of cutting-edge technologies in agriculture and manufacturing and support the platform's higher-level high-quality development."
Temu, operated by Pinduoduo, is currently experiencing rapid growth centered on overseas business. The platform has been launched in major countries such as Europe, the United States, and South Korea. As of the end of last year, Temu's net visitors reached 467 million, ranking second in the world after Amazon. Temu is also rapidly growing in South Korea. As of last month, seven months after entering the Korean market, it secured 5.81 million users, ranking fourth among domestic application (app) users. Ordering at low prices and unpacking deliveries is sometimes called "Temukang" in Korea.
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