On March 21, pinduoduo released the financial reports for the fourth quarter and the whole year of 2021. According to the financial report, pinduoduo’s revenue in the fourth quarter was 27.230.9 billion yuan, a year-on-year increase of 3%. Under the general accounting standards, the operating profit in the fourth quarter was 6.907 billion yuan, mainly due to the reduction of marketing expenses and one-time expense deduction. The annual revenue was 93.949 billion yuan, a year-on-year increase of 58%, and the net profit attributable to common shareholders was 7.768.7 billion yuan.
In terms of user data, by the end of 2021, the number of active buyers for many years had reached 868.7 million, an increase of 10% year-on-year, with an increase of about 1.4 million in a single quarter. In the fourth quarter, the average number of monthly active users of pinduoduo app was 733.4 million, a year-on-year increase of 2%. In 2021, the multi-year turnover (Gmv) was 2441 billion yuan, a year-on-year increase of 46%.
On the 21st of East American time, PDD. O’s share price soared by more than 10% after opening high, but then weakened with the general trend. As of press time, it fell by 4.06%. The latest market value was US $51.2 billion, down about 30% during the year.
the first anniversary of Chen Lei’s succession: Reinventing R & D and adding agriculture
In the fourth quarter, pinduoduo’s R & D expenditure was 2.026 billion yuan, and the annual R & D expenditure reached 8.992.6 billion yuan, a year-on-year increase of 30%.
“In the year I took over as chairman of the board, we changed from” marketing “to” R & D “. I am glad to see that this change is advancing as scheduled. This will lay a solid foundation for our long-term development.” At the analyst conference call after the release of the financial report, Chen Lei, chairman and CEO of pinduoduo, said.
In August last year, pinduoduo announced the establishment of the “10 billion agricultural research project”, continued to promote the universal benefit of agricultural science and technology, and invested all the profits in the second and third quarters into the project. Chen Lei said that the profits in the fourth quarter will also be used in the field of agricultural research and technology, and continue to deepen pinduoduo’s efforts in agricultural digitization, so as to promote more agricultural production areas and farmers directly connected to the digital economy.
Chen Lei said that pinduoduo will further promote agricultural digitization through various measures in 2021. These measures include: first, help farmers broaden their docking market; 2、 Promote Jiangsu Nonghua Intelligent Agriculture Technology Co.Ltd(000816) ; 3、 Encourage and empower more young technical talents to devote themselves to agriculture.
In the lower reaches of agriculture, pinduoduo continues to introduce farmers into the digital economy by broadening their docking market. “We are trying to build a platform that can effectively match the needs of consumers with the national Shenzhen Agricultural Products Group Co.Ltd(000061) .” Chen Lei said that this allows farmers to go beyond layers of distribution and deliver their fresh Shenzhen Agricultural Products Group Co.Ltd(000061) directly to consumers in a shorter time. This can increase farmers’ income and allow consumers to receive fresh Shenzhen Agricultural Products Group Co.Ltd(000061) . Pinduoduo also promised Shenzhen Agricultural Products Group Co.Ltd(000061) a “zero Commission”. The goal is to form a virtuous circle similar to that we formed in the small and micro businesses before. In this circle, farmers earn more and consumers get fresher and more affordable Shenzhen Agricultural Products Group Co.Ltd(000061) .
In the upper reaches of agriculture, pinduoduo promotes the application of agricultural technology and helps farmers increase production. Some economical and practical technologies emerged in the first “Duoduo agricultural research science and technology competition” last year, which have been applied to the main strawberry producing areas in China, such as Liaoning, Anhui and Yunnan. These programs have helped traditional farmers double their management skills.
Another focus of pinduoduo’s agricultural strategy is to encourage and empower more young technical talents to devote themselves to agriculture. “We are pleased to see that more and more young agricultural entrepreneurs choose to start businesses on pinduoduo. The number of post-95 ‘new farmers’ on pinduoduo platform has increased from 29700 in 2019 and 85700 in 2020 to more than 126000 by the end of October 2021.” Chen Lei said.
q4 marketing expenses decreased by 23% and the annual R & D increased by 30%
According to the financial report, by the end of 2021, the number of active buyers for many years was 868.7 million, up 10% year-on-year from 788.4 million at the end of the previous year.
In terms of the number of monthly active users, the average number of monthly active users of pinduoduo app in the fourth quarter was 733.4 million, a year-on-year increase of 2% compared with 719.9 million in the same period in 2020.
In terms of revenue, pinduoduo’s total revenue in the fourth quarter was 27.230.9 billion yuan, and the total revenue of the whole year was 93.949 billion yuan, a year-on-year increase of 58% over 2020, mainly due to the growth of online marketing technology service revenue and transaction service revenue.
In the fourth quarter, marketing expenses decreased by 23% year-on-year, while R & D expenses in 2021 increased by 30% year-on-year. Chen Lei said that pinduoduo will shift its focus from marketing to R & D in 2021, which will lay a solid foundation for the long-term development of the company.
Under the general accounting standards, the operating profit in the fourth quarter was 6.907 billion yuan, compared with the operating loss in the same period in 2020, which was 2.047.8 billion yuan. The net profit attributable to ordinary shareholders was RMB 6619.5 million. Liu Jun, vice president of pinduoduo finance, said that the increase in profits in the fourth quarter was mainly due to the reduction of marketing expenses and the one-time expense deduction.
active buyers: 868.7 million monthly active buyers: 733.4 million
According to the financial report, by the end of 2021, the number of active buyers for many years had reached 868.7 million, an increase of 10% year-on-year, with an increase of about 1.4 million in a single quarter. In the fourth quarter, the average number of monthly active users of pinduoduo app was 733.4 million, a year-on-year increase of 2%.
The annual turnover of the platform (Gmv) and the annual average consumption of active buyers (ARPU) achieved double growth. Among them, the annual turnover (Gmv) reached 2441 billion yuan, an increase of 46% over the previous year’s 1667.6 billion yuan; The average annual consumption of active buyers was 2810.0 yuan, up 33% year-on-year from 2115.2 yuan the previous year.
Chen Lei said that in the environment of intensified competition, pinduoduo will continue to be user-oriented, improve user satisfaction, and continue to increase investment in agriculture.
“Compared with the categories that have been online earlier and have a higher online rate, the online rate of agriculture is still very low, and many needs of users have not been met under the existing performance experience.” Chen Lei said that this is also the reason why we are unswervingly investing in agriculture, developing the core technology of agricultural science and technology and promoting the universal benefit of agricultural science and technology.
annual 61 billion orders, up 59% year-on-year
In August last year, pinduoduo announced that it would invest 10 billion to set up the “10 billion agricultural research” special project. It will not aim at commercial value and profit, continue to promote agricultural scientific and technological progress and scientific and technological benefits, and invest all the profits in the second and third quarters into the special project.
“Agricultural development requires long-term patience and investment, and the profits in the fourth quarter will continue to be used to support the in-depth exploration of agricultural research and technology.
”Chen Lei said that in the past year, we insisted on focusing on agriculture and made a new round of heavy investment in Shenzhen Agricultural Products Group Co.Ltd(000061) brand, agricultural talents and logistics and warehousing, which has achieved initial results.
According to the “2021 new farmers growth report” released by pinduoduo, the “new farmers” represented by the post-95 generation have become a new force to promote Shenzhen Agricultural Products Group Co.Ltd(000061) upward. As of October 2021, the number of “new farmers” on the platform has exceeded 126000, accounting for more than 13% of agriculture related businesses. Among them, women accounted for more than 31%, reaching 39060; After 2000, it accounted for more than 16%, reaching 20160.
In the process of returning home to start a business, “new farmers” are more willing to give back to their hometown, pay attention to the sustainable development of agriculture, and are keen to promote Shenzhen Agricultural Products Group Co.Ltd(000061) branding and standardization. In terms of Shenzhen Agricultural Products Group Co.Ltd(000061) branding, “xinxinnongren” has effectively increased the added value of Shenzhen Agricultural Products Group Co.Ltd(000061) through e-commerce effect, and further launched the origin brands of Huili pomegranate, Pinghe honey pomelo, Yongquan honey orange, Zigui navel orange, Luochuan apple, Binchuan garlic, Yanyuan ugly apple, Pujiang kiwi fruit and other agricultural areas, showing the phenomenon of “one county, one star” and “one product, one star”.
Data show that in the past year, the platform has generated 61 billion orders, a year-on-year increase of 59%. According to Liu Jun, vice president of finance of pinduoduo, under the strategy of Shenzhen Agricultural Products Group Co.Ltd(000061) “zero Commission” and re investment in agriculture, the increase of agricultural orders on the platform is particularly significant.
“Looking back on our efforts in agriculture, we are pleased with the positive role, but agricultural digitization has just started and there is still a long way to go.” Chen Lei said that in the future, he will continue to increase investment in agriculture, remain focused and patient with this long-term vision, and strive to contribute to agricultural and rural modernization and Rural Revitalization.
attachment: telephone conference for the fourth quarter of 2021 – full text of Chen Lei’s speech
Let me first review our performance in the fourth quarter and the whole year of 2021. Our total revenue excluding commodity sales in the fourth quarter was 27.1 billion yuan, a year-on-year increase of 28%. In the past 12 months ended December 31, our annual number of active buyers reached 868.7 million. The average number of monthly active users increased to 733.4 million in the quarter. Our Gmv in 2021 is 2441 billion yuan, with a year-on-year increase of 46%; The total revenue excluding commodity sales in 2021 was 86.7 billion yuan, a year-on-year increase of 61%.
For pinduoduo, 2021 is the year of handover. In the year I took over as chairman, we changed from “marketing” to “R & D”. I am glad to see that this transformation is progressing as scheduled. This will lay a solid foundation for our long-term development.
We appreciate the users’ trust and support all the time. In order to keep up with their changing and more diverse preferences, we constantly ask ourselves how we can better serve them.
As a team with technical background, we always focus on realizing “universal benefit” with technology. We are lucky to have found opportunities to contribute and create value in the field of agriculture earlier. Agriculture is closely related to everyone’s life, but its digitization degree is low. Since the establishment of pinduoduo in 2015, we have been promoting the modernization and digitization of agriculture and rural areas. An efficient, resilient, sustainable and dynamic agriculture can benefit all parties in the value chain. We remain focused on our goals.
In 2021, we will further promote agricultural digitization through a variety of initiatives. These measures include: first, help farmers broaden their docking market; 2、 Promote Jiangsu Nonghua Intelligent Agriculture Technology Co.Ltd(000816) ; Third, encourage and empower more young technical talents to devote themselves to agriculture. Let me elaborate.
In the lower reaches of agriculture, we continue to introduce farmers into the digital economy by broadening their docking markets.
We are trying to build a platform that can effectively match the needs of consumers with the national Shenzhen Agricultural Products Group Co.Ltd(000061) . This allows farmers to go beyond layers of distribution and deliver their fresh Shenzhen Agricultural Products Group Co.Ltd(000061) directly to consumers in a shorter time. This can increase farmers’ income and allow consumers to receive fresh Shenzhen Agricultural Products Group Co.Ltd(000061) . Our platform has directly opened a market with nearly 870 million users to farmers across the country. We also provide them with a variety of tools to promote their characteristics Shenzhen Agricultural Products Group Co.Ltd(000061) .
We have made a commitment of “zero Commission” to Shenzhen Agricultural Products Group Co.Ltd(000061) . We exempted Shenzhen Agricultural Products Group Co.Ltd(000061) from the sales commission and offered Shenzhen Agricultural Products Group Co.Ltd(000061) more exposure. We will continue to implement this Shenzhen Agricultural Products Group Co.Ltd(000061) “zero Commission” policy.
Our goal is to form a virtuous circle similar to that we formed in the small and micro businesses before. In this circle, farmers earn more and consumers get fresher and more affordable Shenzhen Agricultural Products Group Co.Ltd(000061) . In order to enhance the effect of this cycle, we have launched a lot of promotion activities. In 2021, we cooperated with many agricultural producing areas to launch a series of agricultural shopping festivals to promote a variety of local specialties to consumers all over the country. We also jointly launched “hometown good things live broadcast” with CCTV and other important partners. These activities not only deepen users’ understanding and love of local specialties, but also enable farmers to communicate directly with consumers and better understand consumers’ preferences, which can help farmers in brand building and industrial upgrading of high-quality agricultural products.
For example, we launched the “citrus carnival season” to promote high-quality and characteristic oranges produced from seven major citrus producing areas throughout the country and bring local specialty oranges to consumers all over the country. Thanks to the rising orders on our platform, local citrus growers in Hunan saw a sharp rise in sales. The increase in sales not only improves the living standards of farmers, but also gives them confidence to invest in the future. Many people put their money into the development of machines and packaging.
In the upper reaches of agriculture, we are promoting the application of agricultural technology to help farmers increase production.
Some economical and practical technologies emerged in the first “Duoduo agricultural research science and technology competition” last year, including automatic crop monitoring, programmed dynamic adjustment to deal with climate change, and automatic irrigation. We help multiple teams commercialize these technical solutions. Today, these schemes have been applied to the main strawberry producing areas in China, such as Liaoning, Anhui and Yunnan. These programs have helped traditional farmers double their management skills.
This gratifying achievement is valuable to the whole industry. We regularly organize experience sharing meetings to promote the application of technology in this field. At the beginning of this month, we and the FAO representative office in China jointly held a sharing meeting to explore the use of Jiangsu Nonghua Intelligent Agriculture Technology Co.Ltd(000816) to promote food production and security. Representatives from FAO, China Agricultural University, Chinese Academy of Agricultural Sciences, pinduoduo and the finalists of the “Duoduo agricultural research science and technology competition” expressed their views at the seminar.
We are honored to work closely with world-renowned institutions in the field of agricultural food, such as China Agricultural University, Zhejiang University, FAO, Singapore Science and Technology Research Bureau, and Wageningen University in the Netherlands. We look forward to cooperating with more like-minded organizations and individuals in the future.
Another focus of pinduoduo’s agricultural strategy is to encourage and empower more young technical talents to devote themselves to agriculture.
We are glad to see that more and more young agricultural entrepreneurs choose to start businesses in pinduoduo.
The number of post-95 “new farmers” on pinduoduo platform has increased from 29700 in 2019 and 85700 in 2020 to more than 126000 by the end of October 2021.
The vast majority of these young agricultural entrepreneurs have good educational experience. They grew up with mobile technology and are indigenous people in the digital age. Therefore, they are familiar with online shopping and the use of innovative tools such as live broadcasting. At the same time, many of them want to contribute to their hometown,
In order to improve their skills, we provided them with targeted training on e-commerce operation tips. We will invest more resources to support them, because we believe that they can play an important role in promoting agricultural and rural modernization and Rural Revitalization.
Looking back on our efforts in agriculture, we are pleased with the positive role we have played. But we have just started in the technological progress and digitization of agriculture. Therefore, we are gradually increasing investment in this area. This focus on long-term vision does not always lead to short-term results. But we will remain patient and contribute to the modernization of agriculture and rural areas.
As I mentioned last year, I personally served as the No. 1 position of the “10 billion agricultural research project”, which aims to promote the progress of agricultural science and technology, make science and technology inclusive, and aim at further motivation and sense of gain for agricultural science and technology workers and workers. The profits of this quarter will continue to be invested in this special project.
Finally, as a platform serving more than 868 million consumers, we also shoulder more social responsibilities.
In July, we responded quickly to the flood relief in Henan, donated and launched the “emergency relief materials feedback portal” to support the distribution of relief materials. In October, we rushed to Shanxi for disaster relief and donated money for emergency disaster response and post disaster reconstruction. In December, we helped the people of Xi’an fight against the epidemic and cooperated with the government to ensure the necessary needs.
In order to help the countryside, we launched the “more reading month”. Today, we have donated many selected books to remote mountainous areas and organized a number of reading activities. We hope these efforts can broaden teenagers’ understanding of the world and make the future of their hometown better.
As we enter the new year, we will remain highly focused on our goals and continue to do our best to serve all parties. Here, I would like to thank you for your continued support.
