Fourth Quarter 2023 Highlights
- Total revenues in the quarter were
RMB88,881.0 million (US$1 12,518.6 million), an increase of 123% fromRMB39,820.0 million in the same quarter of 2022. - Operating profit in the quarter was
RMB22,395.0 million (US$3,154.3 million ), an increase of 146% fromRMB9,113.7 million in the same quarter of 2022. Non-GAAP2 operating profit in the quarter wasRMB24,579.9 million (US$3,462.0 million ), an increase of 112% fromRMB11,600.1 million in the same quarter of 2022. - Net income attributable to ordinary shareholders in the quarter was
RMB23,280.3 million (US$3,279.0 million ), an increase of 146% fromRMB9,453.7 million in the same quarter of 2022. Non-GAAP net income attributable to ordinary shareholders in the quarter wasRMB25,476.5 million (US$3,588.3 million ), an increase of 110% fromRMB12,105.8 million in the same quarter of 2022.
“2023 represents a pivotal chapter in our corporate history as we transition towards high-quality development,” said Mr.
“In the fourth quarter, we saw growing demand driven by encouraging consumer sentiment,” said Mr.
“In 2023, our R&D investment exceeded
Fourth Quarter 2023 Unaudited Financial Results
Total revenues were
- Revenues from online marketing services and others were
RMB48,675.6 million (US$6,855.8 million ), an increase of 57% fromRMB31,023.4 million in the same quarter of 2022. - Revenues from transaction services were
RMB40,205.4 million (US$5,662.8 million ), an increase of 357% fromRMB8,796.6 million in the same quarter of 2022.
Total costs of revenues were
Total operating expenses were
- Sales and marketing expenses were
RMB26,638.5 million (US$3,752.0 million ), an increase of 50% fromRMB17,732.4 million in the same quarter of 2022, mainly due to the increased spending in promotion and advertising activities. - General and administrative expenses were
RMB1,904.8 million (US$268.3 million ), compared withRMB1,640.5 million in the same quarter of 2022. - Research and development expenses were
RMB2,864.4 million (US$403.4 million ), compared withRMB2,406.7 million in the same quarter of 2022.
Operating profit in the quarter was
Net income attributable to ordinary shareholders in the quarter was
Basic earnings per ADS was
Net cash generated from operating activities was
Cash, cash equivalents and short-term investments were
Fiscal Year 2023 Unaudited Financial Results
Total revenues were
- Revenues from online marketing services and others were
RMB153,540.6 million (US$21,625.7 million ), representing an increase of 49% fromRMB102,931.1 million in 2022. - Revenues from transaction services were
RMB94,098.7 million (US$13,253.5 million ), representing an increase of 241% fromRMB27,626.5 million in 2022.
Total costs of revenues were
Total operating expenses were
- Sales and marketing expenses were
RMB82,188.9 million (US$11,576.1 million ), an increase of 51% fromRMB54,343.7 million in 2022, mainly due to the increased spending in promotion and advertising activities. - General and administrative expenses were
RMB4,075.6 million (US$574.0 million ), compared withRMB3,964.9 million in 2022. - Research and development expenses were
RMB10,952.4 million (US$1,542.6 million ), compared withRMB10,384.7 million in 2022.
Operating profit was
Net income attributable to ordinary shareholders was
Basic earnings per ADS was
Net cash generated from operating activities was
Conference Call
The Company’s management will hold an earnings conference call at
The conference call will be webcast live at https://investor.pddholdings.com/investor-events. The webcast will be available for replay at the same website following the conclusion of the call.
Use of Non-GAAP Financial Measures
In evaluating the business, the Company considers and uses non-GAAP measures, such as non-GAAP operating profit, non-GAAP net income attributable to ordinary shareholders, non-GAAP diluted earnings per ordinary share and non-GAAP diluted earnings per ADS, as supplemental measures to review and assess operating performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with accounting principles generally accepted in
The Company presents these non-GAAP financial measures because they are used by management to evaluate operating performance and formulate business plans. The Company believes that the non-GAAP financial measures help identify underlying trends in its business by excluding the impact of share-based compensation expenses, fair value change of certain investments, and interest expenses related to the convertible bonds’ amortization to face value, which are non-cash charges. The Company also believes that the non-GAAP financial measures may provide further information about the Company’s results of operations, and enhance the overall understanding of the Company’s past performance and future prospects.
The Company’s non-GAAP financial measures are not defined under
For more information on the non-GAAP financial measures, please see the table captioned “Reconciliation of Non-GAAP Measures to The Most Directly Comparable GAAP Measures” set forth at the end of this press release.
Safe Harbor Statements
This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the
About
PDD HOLDINGS INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in thousands of Renminbi (“RMB”) and | ||||||
As of | ||||||
December 31, 2022 | ||||||
RMB | RMB | US$ | ||||
(Unaudited) | (Unaudited) | |||||
ASSETS | ||||||
Current assets | ||||||
Cash and cash equivalents | 34,326,192 | 59,794,469 | 8,421,875 | |||
Restricted cash | 57,974,225 | 61,985,436 | 8,730,466 | |||
Receivables from online payment platforms | 587,696 | 3,914,117 | 551,292 | |||
Short-term investments | 115,112,554 | 157,415,365 | 22,171,490 | |||
Amounts due from related parties | 6,318,830 | 7,428,070 | 1,046,222 | |||
Prepayments and other current assets | 2,298,379 | 4,213,015 | 593,390 | |||
Total current assets | 216,617,876 | 294,750,472 | 41,514,735 | |||
Non-current assets | ||||||
Property, equipment and software, net | 1,044,847 | 979,597 | 137,973 | |||
Intangible assets | 134,002 | 21,148 | 2,979 | |||
Right-of-use assets | 1,416,081 | 4,104,889 | 578,162 | |||
Deferred tax assets | 1,045,030 | 270,738 | 38,133 | |||
Other non-current assets | 16,862,117 | 47,951,276 | 6,753,796 | |||
Total non-current assets | 20,502,077 | 53,327,648 | 7,511,043 | |||
Total Assets | 237,119,953 | 348,078,120 | 49,025,778 |
PDD HOLDINGS INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in thousands of Renminbi (“RMB”) and | |||||||
As of | |||||||
December 31, 2022 | |||||||
RMB | RMB | US$ | |||||
(Unaudited) | (Unaudited) | ||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
Current liabilities | |||||||
Amounts due to related parties | 1,676,391 | 1,238,776 | 174,478 | ||||
Customer advances and deferred revenues | 1,389,655 | 2,144,610 | 302,062 | ||||
Payable to merchants | 63,316,695 | 74,997,252 | 10,563,142 | ||||
Accrued expenses and other liabilities | 20,960,723 | 55,351,399 | 7,796,081 | ||||
Merchant deposits | 15,058,229 | 16,878,746 | 2,377,322 | ||||
Convertible bonds, current portion | 13,885,751 | 648,570 | 91,349 | ||||
Lease liabilities | 602,036 | 1,641,548 | 231,207 | ||||
Total current liabilities | 116,889,480 | 152,900,901 | 21,535,641 | ||||
Non-current liabilities | |||||||
Convertible bonds | 1,575,755 | 5,231,523 | 736,845 | ||||
Lease liabilities | 870,782 | 2,644,260 | 372,436 | ||||
Deferred tax liabilities | 13,025 | 59,829 | 8,427 | ||||
Total non-current liabilities | 2,459,562 | 7,935,612 | 1,117,708 | ||||
Total Liabilities | 119,349,042 | 160,836,513 | 22,653,349 | ||||
Shareholders’ equity | |||||||
Ordinary shares | 170 | 177 | 25 | ||||
Additional paid-in capital | 99,250,468 | 107,293,091 | 15,111,916 | ||||
Statutory reserves | 5,000 | 105,982 | 14,927 | ||||
Accumulated other comprehensive income | 3,322,238 | 4,723,760 | 665,328 | ||||
Retained earnings | 15,193,035 | 75,118,597 | 10,580,233 | ||||
Total Shareholders’ Equity | 117,770,911 | 187,241,607 | 26,372,429 | ||||
Total Liabilities and Shareholders’ Equity | 237,119,953 | 348,078,120 | 49,025,778 | ||||
PDD HOLDINGS INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Amounts in thousands of RMB and US$) | ||||||||||||||||||
For the three months ended | For the year ended | |||||||||||||||||
2022 | 2023 | 2022 | 2023 | |||||||||||||||
RMB | RMB | US$ | RMB | RMB | US$ | |||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||
Revenues | 39,820,028 | 88,881,036 | 12,518,632 | 130,557,589 | 247,639,205 | 34,879,253 | ||||||||||||
Costs of revenues | (8,926,705 | ) | (35,078,272 | ) | (4,940,671 | ) | (31,462,298 | ) | (91,723,577 | ) | (12,918,996 | ) | ||||||
Sales and marketing expenses | (17,732,384 | ) | (26,638,524 | ) | (3,751,958 | ) | (54,343,719 | ) | (82,188,870 | ) | (11,576,060 | ) | ||||||
General and administrative expenses | (1,640,527 | ) | (1,904,842 | ) | (268,291 | ) | (3,964,935 | ) | (4,075,622 | ) | (574,039 | ) | ||||||
Research and development expenses | (2,406,677 | ) | (2,864,430 | ) | (403,447 | ) | (10,384,716 | ) | (10,952,374 | ) | (1,542,610 | ) | ||||||
Total operating expenses | (21,779,588 | ) | (31,407,796 | ) | (4,423,696 | ) | (68,693,370 | ) | (97,216,866 | ) | (13,692,709 | ) | ||||||
Operating profit | 9,113,735 | 22,394,968 | 3,154,265 | 30,401,921 | 58,698,762 | 8,267,548 | ||||||||||||
Interest and investment income, net | 1,351,698 | 4,359,384 | 614,006 | 3,997,100 | 10,238,080 | 1,442,003 | ||||||||||||
Interest expenses | (12,221 | ) | (8,155 | ) | (1,149 | ) | (51,655 | ) | (43,987 | ) | (6,195 | ) | ||||||
Foreign exchange (loss)/ gain | (23,819 | ) | (198,819 | ) | (28,003 | ) | (149,710 | ) | 35,721 | 5,031 | ||||||||
Other income, net | 168,825 | 328,204 | 46,227 | 2,221,358 | 2,952,579 | 415,862 | ||||||||||||
Profit before income tax and share of results of equity investees | 10,598,218 | 26,875,582 | 3,785,346 | 36,419,014 | 71,881,155 | 10,124,249 | ||||||||||||
Share of results of equity investees | (78,908 | ) | (15,066 | ) | (2,122 | ) | (155,285 | ) | (4,707 | ) | (663 | ) | ||||||
Income tax expenses | (1,065,613 | ) | (3,580,207 | ) | (504,262 | ) | (4,725,667 | ) | (11,849,904 | ) | (1,669,024 | ) | ||||||
Net income | 9,453,697 | 23,280,309 | 3,278,962 | 31,538,062 | 60,026,544 | 8,454,562 |
PDD HOLDINGS INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Amounts in thousands of RMB and US$, except for per share data) | ||||||||||||
For the three months ended | For the year ended | |||||||||||
2022 | 2023 | 2022 | 2023 | |||||||||
RMB | RMB | US$ | RMB | RMB | US$ | |||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||
Net income | 9,453,697 | 23,280,309 | 3,278,962 | 31,538,062 | 60,026,544 | 8,454,562 | ||||||
Net income attributable to ordinary shareholders | 9,453,697 | 23,280,309 | 3,278,962 | 31,538,062 | 60,026,544 | 8,454,562 | ||||||
Earnings per ordinary share: | ||||||||||||
-Basic | 1.85 | 4.25 | 0.60 | 6.24 | 11.08 | 1.56 | ||||||
-Diluted | 1.63 | 3.96 | 0.56 | 5.48 | 10.29 | 1.45 | ||||||
Earnings per ADS (4 ordinary shares equals 1 ADS ): | ||||||||||||
-Basic | 7.42 | 17.00 | 2.39 | 24.94 | 44.33 | 6.24 | ||||||
-Diluted | 6.52 | 15.83 | 2.23 | 21.93 | 41.15 | 5.80 | ||||||
Weighted average number of outstanding ordinary shares (in thousands): | ||||||||||||
-Basic | 5,099,138 | 5,478,111 | 5,478,111 | 5,057,540 | 5,416,106 | 5,416,106 | ||||||
-Diluted | 5,809,212 | 5,882,980 | 5,882,980 | 5,761,291 | 5,839,630 | 5,839,630 |
PDD HOLDINGS INC. NOTES TO FINANCIAL INFORMATION (Amounts in thousands of RMB and US$) | ||||||||||||
For the three months ended | For the year ended | |||||||||||
2022 | 2023 | 2022 | 2023 | |||||||||
RMB | RMB | US$ | RMB | RMB | US$ | |||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||
Revenues | ||||||||||||
- Online marketing services and others | 31,023,400 | 48,675,618 | 6,855,817 | 102,931,095 | 153,540,553 | 21,625,735 | ||||||
- Transaction services | 8,796,628 | 40,205,418 | 5,662,815 | 27,626,494 | 94,098,652 | 13,253,518 | ||||||
Total | 39,820,028 | 88,881,036 | 12,518,632 | 130,557,589 | 247,639,205 | 34,879,253 | ||||||
PDD HOLDINGS INC. NOTES TO FINANCIAL INFORMATION (Amounts in thousands of RMB and US$) | ||||||||||||
For the three months ended | For the year ended | |||||||||||
2022 | 2023 | 2022 | 2023 | |||||||||
RMB | RMB | US$ | RMB | RMB | US$ | |||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||
Share-based compensation expenses included in: | ||||||||||||
Costs of revenues | 11,777 | 46,404 | 6,536 | 33,788 | 132,470 | 18,658 | ||||||
Sales and marketing expenses | 535,550 | 411,048 | 57,895 | 2,158,676 | 2,354,097 | 331,568 | ||||||
General and administrative expenses | 1,279,760 | 1,230,358 | 173,292 | 3,004,327 | 2,289,272 | 322,437 | ||||||
Research and development expenses | 659,298 | 497,134 | 70,020 | 2,521,574 | 2,302,955 | 324,364 | ||||||
Total | 2,486,385 | 2,184,944 | 307,743 | 7,718,365 | 7,078,794 | 997,027 |
PDD HOLDINGS INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts in thousands of RMB and US$) | ||||||||||||||||||
For the three months ended | For the year ended | |||||||||||||||||
2022 | 2023 | 2022 | 2023 | |||||||||||||||
RMB | RMB | US$ | RMB | RMB | US$ | |||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||
Net cash generated from operating activities | 26,550,262 | 36,890,671 | 5,195,942 | 48,507,860 | 94,162,531 | 13,262,515 | ||||||||||||
Net cash used in investing activities | (8,559,916 | ) | (16,470,671 | ) | (2,319,845 | ) | (22,361,670 | ) | (55,431,278 | ) | (7,807,332 | ) | ||||||
Net cash generated from/ (used in) financing activities | 9,510 | (8,968,297 | ) | (1,263,158 | ) | 10,079 | (8,960,626 | ) | (1,262,078 | ) | ||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (109,374 | ) | (1,025,057 | ) | (144,377 | ) | 100,177 | (291,139 | ) | (41,006 | ) | |||||||
Increase in cash, cash equivalents and restricted cash | 17,890,482 | 10,426,646 | 1,468,562 | 26,256,446 | 29,479,488 | 4,152,099 | ||||||||||||
Cash, cash equivalents and restricted cash at beginning of period/ year | 74,409,935 | 111,353,259 | 15,683,779 | 66,043,971 | 92,300,417 | 13,000,242 | ||||||||||||
Cash, cash equivalents and restricted cash at end of period/ year | 92,300,417 | 121,779,905 | 17,152,341 | 92,300,417 | 121,779,905 | 17,152,341 |
PDD HOLDINGS INC. RECONCILIATION OF NON-GAAP MEASURES TO THE MOST DIRECTLY COMPARABLE GAAP MEASURES (Amounts in thousands of RMB and US$, except for per share data) | ||||||||||||
For the three months ended | For the year ended | |||||||||||
2022 | 2023 | 2022 | 2023 | |||||||||
RMB | RMB | US$ | RMB | RMB | US$ | |||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||
Operating profit | 9,113,735 | 22,394,968 | 3,154,265 | 30,401,921 | 58,698,762 | 8,267,548 | ||||||
Add: Share-based compensation expenses | 2,486,385 | 2,184,944 | 307,743 | 7,718,365 | 7,078,794 | 997,027 | ||||||
Non-GAAP operating profit | 11,600,120 | 24,579,912 | 3,462,008 | 38,120,286 | 65,777,556 | 9,264,575 | ||||||
Net income attributable to ordinary shareholders | 9,453,697 | 23,280,309 | 3,278,962 | 31,538,062 | 60,026,544 | 8,454,562 | ||||||
Add: Share-based compensation expenses | 2,486,385 | 2,184,944 | 307,743 | 7,718,365 | 7,078,794 | 997,027 | ||||||
Add: Interest expenses related to convertible bonds’ amortization to face value | 12,221 | 8,155 | 1,149 | 51,655 | 43,987 | 6,195 | ||||||
Add: Loss from fair value change of certain investments | 153,467 | 3,052 | 430 | 221,640 | 749,967 | 105,631 | ||||||
Non-GAAP net income attributable to ordinary shareholders | 12,105,770 | 25,476,460 | 3,588,284 | 39,529,722 | 67,899,292 | 9,563,415 | ||||||
Non-GAAP diluted weighted-average number of ordinary shares outstanding (in thousands) | 5,809,212 | 5,882,980 | 5,882,980 | 5,761,291 | 5,839,630 | 5,839,630 | ||||||
Diluted earnings per ordinary share | 1.63 | 3.96 | 0.56 | 5.48 | 10.29 | 1.45 | ||||||
Add: Non-GAAP adjustments to earnings per ordinary share | 0.45 | 0.37 | 0.04 | 1.38 | 1.34 | 0.19 | ||||||
Non-GAAP diluted earnings per ordinary share | 2.08 | 4.33 | 0.60 | 6.86 | 11.63 | 1.64 | ||||||
Non-GAAP diluted earnings per ADS | 8.34 | 17.32 | 2.40 | 27.45 | 46.51 | 6.56 |
______________________
1 This announcement contains translations of certain Renminbi (“RMB”) amounts into
2 The Company’s non-GAAP financial measures exclude share-based compensation expenses, fair value change of certain investments, and interest expenses related to the convertible bonds’ amortization to face value. See “Reconciliation of Non-GAAP Measures to The Most Directly Comparable GAAP Measures” set forth at the end of this press release.
For investor and media inquiries, please contact: investor@pddholdings.com media@pddholdings.comSource:
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