Revenue Growth and Financial Performance: For Q2 2025, PDD Holdings reported a 7% year-over-year revenue increase to RMB 104 billion. However, operating profit declined by 21% year-over-year, underscoring the impact of significant investments in merchant support and heightened competition. Non-GAAP operating profit was RMB 27.7 billion, down from RMB 35 billion in the same quarter last year, reflecting ongoing pressure on profitability due to strategic investments.

Investment Focus on Merchant Support: The company has launched a RMB 100 billion support program to help merchants navigate challenges and promote high-quality development. Key initiatives include the RMB 10 billion fee reduction initiative and logistics support aimed at reducing costs for merchants, indicating a strong commitment to long-term ecosystem health over short-term profits.

Challenges from Intensified Competition: The competitive landscape is evolving rapidly, leading to a moderation in revenue growth and profit margins. Management highlighted that market pressures are causing fluctuations in profitability, with a consequent willingness to sacrifice profits to reinforce the merchant ecosystem.