Second Quarter 2022 Highlights Total revenues in the quarter were RMB31,439.6 million (US$14,693.8 million), an increase of 36% from RMB23,046.2 million in the same quarter of 2021. Operating profit in the quarter was RMB8,697.2 million (US$1,298.5 million), an increase of 335% from RMB1,997.5 million in the same quarter of 2021. Non-GAAP2 operating profit in the quarter was RMB10,541.5 million (US$1,573.8 million), an increase of 231% from RMB3,185.2 million in the same quarter of 2021. Net income attributable to ordinary shareholders in the quarter was RMB8,896.3 million (US$1,328.2 million), an increase of 268% from RMB2,414.6 million in the same quarter of 2021. Non-GAAP net income attributable to ordinary shareholders in the quarter was RMB10,776.3 million (US$1,608.9 million), an increase of 161% from RMB4,125.3 million in the same quarter of 2021. “We saw a recovery in consumer sentiment in the second quarter especially during the 618 shopping festival, a reflection of the resilience of overall consumption,” said Mr. Lei Chen, Chairman and Chief Executive Officer of Pinduoduo. “We remain committed to building a platform that serves as a force for good.” “The postponement of certain projects and lower business-related expenses during the first half of the quarter affected overall expenses in short term,” said Ms. Jun Liu, VP of Finance of Pinduoduo. “Looking ahead, we stay dedicated to investing in areas such as agriculture and R&D to better serve our consumers.”
Second Quarter 2022 Unaudited Financial Results Total revenues were RMB31,439.6 million (US$4,693.8 million), an increase of 36% from RMB23,046.2 million in the same quarter of 2021. The increase was primarily due to an increase in revenues from online marketing services and transaction services, offset by the decrease of revenues from merchandise sales. Revenues from online marketing services and others were RMB25,172.7 million (US$3,758.2 million), an increase of 39% from RMB18,080.4 million in the same quarter of 2021. Revenues from transaction services were RMB6,216.2 million (US$928.1 million), an increase of 107% from RMB3,007.6 million in the same quarter of 2021. Revenues from merchandise sales were RMB50.7 million (US$7.6 million), a decrease of 97% from RMB1,958.2 million in the same quarter of 2021. Total costs of revenues were RMB7,961.9 million (US$1,188.7 million), a slight increase of 1% from RMB7,897.9 million in the same quarter of 2021. Total operating expenses were RMB14,780.5 million (US$2,206.7 million), compared with RMB13,150.9 million in the same quarter of 2021. Sales and marketing expenses were RMB11,343.4 million (US$1,693.5 million), an increase of 9% from RMB10,387.9 million in the same quarter of 2021, mainly due to increased spending in promotion and advertising activities. General and administrative expenses were RMB825.7 million (US$123.3 million), an increase of 90% from RMB434.2 million in the same quarter of 2021, primarily due to an increase in staff related costs.Research and development expenses were RMB2,611.4 million (US$389.9 million), an increase of 12% from RMB2,328.8 million in the same quarter of 2021. The increase was primarily due to an increase in headcount and the recruitment of more experienced R&D personnel. Operating profit in the quarter was RMB8,697.2 million (US$1,298.5 million), an increase of 335% from RMB1,997.5 million in the same quarter of 2021. Non-GAAP operating profit in the quarter was RMB10,541.5 million (US$1,573.8 million), an increase of 231% from RMB3,185.2 million in the same quarter of 2021. Net income attributable to ordinary shareholders in the quarter was RMB8,896.3 million (US$1,328.2 million), an increase of 268% from RMB2,414.6 million in the same quarter of 2021. Non-GAAP net income attributable to ordinary shareholders in the quarter was RMB10,776.3 million (US$1,608.9 million), an increase of 161% from RMB4,125.3 million in the same quarter of 2021. Basic earnings per ADS was RMB7.06 (US$1.05) and diluted earnings per ADS was RMB6.22 (US$0.93), compared with basic earnings per ADS of RMB1.93 and diluted earnings per ADS of RMB1.69 in the same quarter of 2021. Non-GAAP diluted earnings per ADS was RMB7.54 (US$1.13), compared with RMB2.85 in the same quarter of 2021. Net cash flow generated from operating activities was RMB19,373.9 million (US$2,892.4 million), compared with RMB7,371.2 million in the same quarter of 2021, mainly due to the increase in net income and the changes in working capitals. Cash, cash equivalents and short-term investments were RMB119.4 billion (US$17.8 billion) as of June 30, 2022, compared with RMB92.9 billion as of December 31, 2021.