According to the financial report of pinduoduo in the second quarter of 2020, the revenue of pinduoduo was 12.193 billion yuan, up 67% year-on-year; the turnover reached 1006.6 billion yuan, up 113% year-on-year. The net loss attributable to the shareholders of pinduoduo’s common shares was 893 million yuan, which was 1.003 billion yuan in the same period last year. Under the non US general accounting standards, the net loss attributable to the shareholders of pinduoduo’s common shares was 77.2 million yuan, and the net loss in the same period of last year was 411.3 million yuan, narrowing the loss. In addition, the number of annual active users of pinduoduo reached 683.2 million in this quarter, up 41% from 483.2 million in the same period last year. It is getting closer to “pinduoduo, which is used by 700 million people”. However, after the release of the results, pinduoduo’s share price fell, with an opening decline of more than 10%. Is this because the sustained high-speed growth of the stock price overdraw the original performance expectations? < / P > < p > for pinduoduo, losses are the norm, but the situation is improving. In this quarter, pinduoduo’s net loss attributable to common shareholders was 893.3 million yuan, compared with 1.003 billion yuan in the same period last year. Under non US GAAP, the net loss attributable to shareholders of pinduoduo’s common stock was 77.2 million yuan, compared with 413.3 million yuan in the same period last year. At the same time, the basic and diluted loss per ADR was 0.75 yuan, compared with 0.88 yuan in the same period last year. Under non US GAAP, the basic and diluted loss per ADR was 0.06 yuan, compared with 0.36 yuan in the same period last year. Ma Jing, vice president of pinduoduo finance, explained that from the report, pinduoduo’s business model is highly flexible and there is a possibility of making profits in the short term. “However, we believe that short-term profitability should not be placed above long-term value. Pinduoduo’s vision is to provide users with high-quality goods and high-quality service experience at a low price. At present, we will not consider the issue of profitability.” < / P > < p > and in the relevant data of user size, pinduoduo is the most concerned and should be concerned about growth. The number of active users in the same period of last year was 68.55 billion, with an average increase of 68.55 billion users over the same period of last year. The number of active buyers reached 683.2 million, a year-on-year increase of 41%. The annual number of active buyers refers to the number of consumers who have placed at least one order on pinduoduo in the past 12 months, including independent app, applet and mobile channel such as H5. In the first quarter of 2020, the number of active users has reached a milestone of 600 million, an increase of 185 million over the same period of last year, and 55.1 million new users in a single quarter in the second quarter, which is more than the combined net growth of Alibaba and JD in this quarter – the former added 16 million, and the latter 30 million. < / P > < p > pinduoduo is based on the sinking market, and its initial user growth largely comes from the huge group in wechat ecology who have not contacted with e-commerce. “Chopping a knife” is the beginning of its “affinity”; however, pinduoduo is now retaining users, “pinduoduo” is one of the ways to settle the flow. In addition, Duoduo orchard and live broadcast also improve the user stickiness It helps. Chen Lei, CEO of pinduoduo, stressed at the analysts’ meeting that the mode of purchasing by collage is still very effective, which is also the reason why pinduoduo can accumulate 700 million users in such a short period of time. Now, the difference between pinduoduo and Alibaba’s annual active users is less than 60 million. However, although the revenue still maintained a 67% growth rate, it was lower than the market expectation, and the growth rate continued to slow down, and the percentage fell below the triple digit again. < p > < p > in the past 12 months up to June 30, 2020, pinduoduo’s total commodity trading volume was 1268.7 billion yuan, 79% higher than that of 709.1 billion yuan as of June 30, 2019 – the growth rate in the last quarter was 108%. < / P > < p > in addition, the total revenue cost of pinduoduo in this quarter was 2.662 billion yuan, with a year-on-year increase of 67%, which was consistent with the growth of revenue, mainly due to higher cloud services, call center and merchant support expenditure – a large investment in support of live broadcasting. < / P > < p > since the 10 billion subsidy was launched one year ago, it has continued to be online and its efforts have been intensified. The total operating expenditure of pinduoduo in this quarter was 11.171 billion yuan, compared with 7.186 billion yuan in the same period last year. Among them, the sales and marketing expenditure was 9.114 billion yuan, a year-on-year increase of 49%. The latest data show that the average annual consumption of pinduoduo is 1857 yuan, with a year-on-year increase of 27% and a month on month growth of 7.8%, showing a significant slowdown. However, Chen Lei mentioned that pinduoduo’s brand product strategy is first to meet the needs of consumers and provide the products they want to buy. The purpose is not to pursue the growth of average sales per order, but to provide different categories of goods with different price levels, high cost performance and high quality through pinduoduo platform. He further said that pinduoduo will continue to provide consumers with more product choices in the future, whether it is brand products or not. < / P > < p > in fact, pinduoduo has been trying to get through this link by trying high-end categories, but the controversy caused by subsidies has only increased. Whether it’s apple or Tesla, or even Dyson, the mysteries of aquamarine and other brands, their entanglement with pinduoduo stems from this. Recently, Tesla even refused to deliver new cars to customers who purchased new cars through pinduoduo’s 10 billion subsidy. Of course, it involves the possible after-sales crisis and the loosening of brand tonality, but what’s more, pinduoduo has shaken the pricing system firmly in the hands of pinduoduo, which also has a great impact on its sales model. Of course, users want to buy the same products with the least money, but brands may not want to see this situation. Chen Lei also reiterated that pinduoduo’s strategy for brand merchants and brand goods has not changed, and it still needs to consider what users need in the end. “Of course, in order to meet the needs of different consumers, there are bound to be different categories and prices of goods on our platform.” < / P > < p > in addition, due to a large number of new users in the short term, these users have a short time to use, and their shopping habits are still under cultivation. Pinduoduo also mentioned that users’ cognition of pinduoduo is that it has advantages in providing high-quality and low-cost goods. In the long run, the amount of each order will gradually increase, because users need time to adapt to the platform and shopping habits of pinduoduo. Ma Jing also said that although the number is now lower than that of peers in the industry, he believes that the gap can be gradually narrowed by increasing the mental share and expenditure of users. < / P > < p > pinduoduo is still optimistic in terms of the number of users. However, pinduoduo has a long way to go before making profits. In order to make Gmv and monetization rate go to a higher level, in addition to 10 billion subsidies, pinduoduo also needs to find new weapons. What we can see at present is that pinduoduo cooperates with Foshan, Yantai and other governments to develop agricultural products in order to continue to sink. According to the data, in 2019, the sales volume of pinduoduo agricultural products e-commerce reached 136.4 billion yuan, up 109% year-on-year, and the percentage has been three-digit for three consecutive years. In addition, pinduoduo has strengthened the linkage with other enterprises. In addition to subscribing for the US $200 million convertible bonds issued by Gome retail, the two sides also reached a comprehensive strategic cooperation. Gome’s retail full volume of goods was put on the shelves and pinduoduo’s “10 billion subsidy” program was connected to the brand’s everyone’s electricity. Gome’s Anxin logistics and Gome housekeeper two service platforms, at the same time become pinduoduo logistics and home appliances after service providers. Accordingly, pinduoduo injects digital retail resources such as consumption trend big data and platform traffic into Gome. Pinduoduo is working hard to sink the basic market of the market, and it is also extending upward. The layout of household appliances and 3C markets is working along this goal. The purpose of embracing is self-evident – to supplement each other’s short board. < p > < p > now, Huang Zheng is no longer the CEO of pinduoduo, and his successor is Chen Lei, co-founder of the company. Huang Zheng believes that the rapid expansion of the team, the rapid growth of business and the drastic changes in the external environment are urging pinduoduo to further upgrade its management team and corporate governance structure. His decision is based on this background, which is an adaptation and a breakthrough. < / P > < p > that’s a longer-term goal. But back in front of us, the growth of Gmv has encountered a “threshold”. Although the growth of users is considerable, the average annual consumption per passenger still needs efforts. From this perspective, pinduoduo is still on the way of “pinduoduo”.