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PDD Holdings plans to invest 100 billion CNY (approximately 14.5 billion USD) over the next three years to unify the supply chains of its flagship e-commerce platform and its international shopping service, Temu. This ambitious move aims to establish an in-house brand called “Xinpinmu.” It represents a significant strategic shift for the company as it chooses to forge its own path amidst industry trends that heavily emphasize artificial intelligence and food delivery.
A dedicated entity has been established in Shanghai to manage the “Xinpinmu” brand, with an initial funding of 15 billion CNY (around 2.1 billion USD). Over the coming three years, the company intends to channel a total of 100 billion CNY into this initiative. The new brand will tap into the supply chain resources of Pinduoduo and Temu to develop self-operated product lines aimed at global consumers. The approach will involve nurturing a variety of brands tailored to different markets and product segments.
The company’s co-chair and co-CEO highlighted that Temu’s rapid expansion over the past three years has been driven by China’s strong supply chain infrastructure, unlocking fresh opportunities for enhancement and transformation within the country’s manufacturing and logistics sectors. He emphasized that this year is critical for China’s supply chain evolution, and Pinduoduo is fully committed to promoting “Xinpinmu” with the goal of establishing a high-quality, domestically owned brand within three years.
This initiative has been dubbed the “Rebuilding Pinduoduo” plan. The company is dedicating substantial resources and workforce efforts to supply chain upgrades, with the aim of creating another industry-leading e-commerce platform by 2029.
The company continues to demonstrate robust growth, reporting an 11.6% increase in net profit last year to around 99.3 billion CNY (roughly 14.3 billion USD). Revenue also grew by 10%, reaching approximately 431.8 billion CNY (about 62.6 billion USD), although this growth rate has slowed compared to previous years.
In the final quarter of the year, net profit climbed 11% year-on-year to roughly 24.5 billion CNY (around 3.5 billion USD), with revenue rising 12% to approximately 123.9 billion CNY.
The executive noted that investing in new business models and supply chain infrastructure are long-term strategies, acknowledging that there is often a delay between investment and returns, which can temporarily impact earnings.
Shares of the company closed at $102.61 in New York, reflecting an increase of 4.61%.
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