Recently, Pinduoduo released its Q3 financial report. The performance was good, with revenue of 21.5 billion RMB, an increase of 51% year on year. The goal is to achieve a net profit of 1.64 billion RMB attributable to the parent, achieving profitability for two consecutive quarters.
However, at the opening of the US stock market, affected by this good performance, Pinduoduo opened ultra-low, and then the decline fell all the way to close to 20%. As of the close, it fell 15.86%.
From the recent Q3 financial report released by Pinduoduo, it is clear to see that Pinduoduo's strategy of trying to break through from agriculture seems to be a bit disorderly. The data shows that its revenue growth rate and the number of active users are far from reaching expectations, and its valuation has shrunk significantly.
Pinduoduo shifted its development focus to "agriculture" at the beginning of this year. In the second quarter of this year, Pinduoduo announced that it would formally establish a special agricultural science and technology project of 10 billion RMB. Since the beginning of the year it has shifted its development focus to agriculture and began to reduce its investment in marketing.
It is understood that Pinduoduo’s R&D expenses are not used for technical equipment, but are mainly used for “intangible assets” such as talents, algorithms, and systems, such as recruiting more experienced R&D personnel and R&D-related cloud services. According to its annual report, about 60% of the company's employees are R&D personnel.
In addition to strategically incorporating "agriculture" into its future development plan, Pinduoduo has invested real money into "agriculture" and is also practicing "science and technology to aid agriculture" in promoting agricultural digitization and matching the supply and demand of agricultural products.
In addition, Pinduoduo also organized the "Duoduo Smart Agriculture Competition" and cooperated with world-class agricultural institutions and universities to promote the growth of young agricultural technical talents.
Source: shengxiantoutiao
