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Reporter Li Qiaoyu

Pingduoduo was once criticized for gaining market share through losses, but now it has refreshed the profitability of e-commerce giants.

A few days ago, Pinduoduo, who was over 5 years old, disclosed its third-quarter performance report. The report showed that in the third quarter of this year, Pinduoduo achieved an operating income of over 14.2 billion yuan; in non-US General Accounting Standards (NON- GAAP) realized a net profit of 466.4 million yuan. This is Pinduoduo's first profit.

"Although this profit is only a non-GAAP profit under the US General Accounting Principles (NON-GAAP), it is of great significance to Pinduoduo for the first time." Tiger Securities Investment Research team told the "Securities Daily" reporter In the third quarter, Pinduoduo lost 780 million yuan under the GAAP standard. Several items that caused GAAP losses and NON-GAAP profit differences were equity incentives, interest on the amortization of the face value of convertible bonds, and fairness from long-term investments. Value changes. Among them, equity incentives account for the majority, which can be said to have the least impact on business trends. "I believe Pinduoduo's overall profitability is not far away," said Tiger Securities' investment research team.

The asset-light model boosts profitability

"This is determined by Pinduoduo’s own business model." When it comes to Pinduoduo’s profitability, Pangu Jiang Han, a senior researcher at the think tank, told a reporter from the Securities Daily.

Jiang Han told reporters that among the three major e-commerce giants, Pinduoduo’s business model is the lightest. In terms of logistics platforms, Ali has Cainiao and JD.com has JD Logistics; in terms of payment platforms, Ali has Alipay and JD.com also has JD Pay.

"In contrast, Pinduoduo has not yet built its own logistics and payment platform. This more open attitude not only provides businesses with a more open business environment, but also reduces the operating costs of the Pinduoduo platform itself. "Jiang Han told reporters, "It is not surprising that Pinduoduo is profitable. For a light asset company, as long as it has enough users and transaction volume, it is not difficult to make a profit. In fact, if Pinduoduo can increase commissions and moderately reduce them. With subsidies, the platform's profit timing may even be even earlier." In Jiang Han's view, this year's timing also provides opportunities for Pinduoduo to make profits. Restricted by this year's special market environment, some consumers' spending power has declined, but consumer demand, especially on e-commerce platforms, has not declined. In such an environment, for consumers, the Pinduoduo platform with high cost performance is more attractive. "The tens of billions of dollars in subsidies for discounting real money directly hit the pain points of most users. This pain point can help Pinduoduo quickly capture a large number of deep users of its own, thereby forming a strong user stickiness." Jiang Han said.

Data shows that as of the end of September this year, the number of active buyers on the Pinduoduo platform reached 731.3 million, a year-on-year increase of 36%, and a strong increase of 195 million active buyers in a year. In the 12 months to the end of September, the transaction volume of Pinduoduo's platform reached 1,457.6 billion yuan, a year-on-year increase of 73%.

“Obviously, Pinduoduo’s active buyers will catch up or even surpass Ali in the next quarter." Tiger Securities’ investment research team told the “Securities Daily" reporter that the third quarter results showed that as of September this year At the end of the month, the number of active buyers of Pinduo had increased by 195 million in one year, while the single-quarter net increase of 48.1 million in the third quarter alone; Alibaba’s financial report showed that as of the end of September, the number of active buyers on the platform had increased by 757 million annually. An increase of 15 million, the same basic user scale, Pinduoduo quarterly growth rate is 6.58%, while Ali's is 2%.

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Plan to increase investment in agricultural products

It is worth noting that Pinduoduo, which is refreshing its profitability under the asset-light model, seems to be becoming more and more "weight".

Pinduoduo CEO Chen Lei revealed that orders for agricultural products continue to maintain rapid growth on the Pinduoduo platform. At the same time, Pinduoduo also launched the business of "Buying Duoduo" in the third quarter to promote the innovation of the whole chain of agricultural products from planting, production, circulation to consumption, and to meet the daily needs of Chinese families. Next, the platform will continue to increase its "heavy" investment in the field of agricultural products, continue to invest in the grocery shopping business, and build a cold storage cold chain with partners to improve the efficiency of agricultural product circulation.

Search "Duoduoduobu" on the Pinduoduo App platform. The first screen of the search results shows the words "order today, pick up the next day". In fact, unlike ordinary e-commerce platforms, fresh food e-commerce is a more "heavy" industry. Pinduoduo wants to achieve "order today, pick up the next day" on the basis of meeting user needs, which may mean that a large area needs to be set up in front of the warehouse, and more efforts are needed to solve the cold chain transportation and cold storage warehousing problems .

"Pinduoduo started in agriculture and has a broad agricultural product supply chain foundation, so it is more suitable for the layout of the fresh food e-commerce field." An e-commerce practitioner who did not want to be named told the Securities Daily reporter. Talking about whether the distribution of fresh food e-commerce will affect the profitability of Pinduoduo, the person believes that Pinduoduo is still in a period of rapid development, even if it cannot make profits in the short term, it should consider the long-term and actively expand its business boundaries.

The practitioner believes that the trend is unstoppable. Pinduoduo currently still has 45.6 billion yuan in cash assets and has the ability to grow rapidly. "Once the break-even point is reached, it will be easy to achieve profitability. Up".

Behind the glorious record, the challenges follow. For Pinduoduo, will the first profitable quarter be a "short-lived" or "the general trend"? There is still time to give the answer.

Tags: Agricultural products

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