Mar 13, 2020 (China Knowledge) - U.S.-listed Chinese online e-commerce platform Pinduoduo (PDD) has released its Q4 and full-year financial results for 2019, with revenue in Q4 reported RMB 10.79 bln, up 91% YoY, but lower than RMB 11.12 bln forecast by Bloomberg.
However, the financial report still shows a positive side. As the long-term subsidies for growth, Pinduoduo’s losses are narrowing. Pinduoduo's Q4 operating loss was RMB 2.13 bln, down from RMB 2.64 bln in the same period of 2018 and RMB 2.79 bln in Q3.
In addition, Pinduoduo’s annual Gross Merchandise Volume (GMV) exceeded RMB 1 trln, with a YoY increase of 113% to RMB 1.006 trln. Pinduoduo seized the dividend of China’s third-tier and fourth-tier cities, took less than 5 years to break through the transaction volume of RMB 1 trln mark, faster than the 14 years of Alibaba (BABA) and 20 years of JD.com (JD) to smash that record.
The sales spikes, however, could be attributed to the billions of subsidies that offered to Pinduoduo active users have achieved high growths. Pinduoduo's number of active buyers over the years reached 585.2 mln, a net increase of 48.9 mln from the previous quarter, higher than Alibaba's 18 mln and JD.com's 27.6 mln.
Pinduoduo CEO Huang Zheng said during the company's latest quarterly earnings call that Pinduoduo's long-term outlook remains unchanged, it will continue to invest in user engagement. Besides that, he remains optimistic about the company’s continuous rapid growth and innovation in 2020.
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