拼多多2021年第一季度财报

May 26, 2021

SHANGHAI, China, May 26, 2021 (GLOBE NEWSWIRE) -- Pinduoduo Inc. (“Pinduoduo” or the “Company”) (NASDAQ: PDD), China’s largestagriculture and interactive commerce platform, today announced its unaudited financial results for the first quarter ended March 31, 2021.First Quarter 2021 Highlights

Total revenues in the quarter were RMB22,167.1 million (US$13,383.4 million), an increase of 239% from RMB6,541.1million in the same quarter of 2020.

Average monthly active users2 in the quarter was 724.6 million, an increase of 49% from 487.4 million in the samequarter of 2020.

Active buyers3 in the twelve-month period ended March 31, 2021 was 823.8 million, an increase of 31% from 628.1million in the twelve-month period ended March 31, 2020.

Operating loss in the quarter was RMB4,147.0 million (US$633.0 million), compared with operating loss of RMB4,397.2million in the same quarter of 2020. Non-GAAP4 operating loss in the quarter was RMB3,174.1 million (US$484.5million), compared with operating loss of RMB3,587.9 million in the same quarter of 2020.

Net loss attributable to ordinary shareholders in the quarter was RMB2,905.4 million (US$ 443.5 million), comparedwith RMB4,119.3 million in the same quarter of 2020. Non-GAAP net loss attributable to ordinary shareholders in thequarter was RMB1,0.3 million (US$288.5 million), compared with RMB3,169.6 million in the same quarter of 2020.

“Our growing scale gives us both greater capacity and responsibility to live up to our mission to ‘benefit all’,” said Mr. Lei Chen, Chairman and ChiefExecutive Officer of Pinduoduo. “We envision Pinduoduo as a platform that not only facilitates the trading of goods and services but also serves as aconduit for turning ideas into solutions to everyday problems.”

“We remain laser-focused on serving our users and anticipating what they need, and doing so in a way that is respectful of the community andenvironment,” added Mr. David Liu, Vice President of Strategy. “We will continue to engage our users, merchants and partners in improving all aspectsof our services.”

“We continued to deliver strong results in the first quarter and remain disciplined,” said Mr. Tony Ma, Vice President of Finance. “Our total revenues,excluding contribution from merchandise sales, for the first quarter 2021 increased 161% from the prior year, while our non-GAAP operating and netlosses narrowed at the same time.”

First Quarter 2021 Unaudited Financial Results

Total revenues were RMB22,167.1 million (US$3,383.4 million), an increase of 239% from RMB6,541.1 million in the same quarter of 2020. Theincrease was primarily due to an increase in revenues from online marketing services and contribution from merchandise sales.

Revenues from online marketing services and others were RMB14,111.5 million (US$2,153.8 million), an increase of157% from RMB5,492.3 million in the same quarter of 2020.

Revenues from transaction services were RMB2,931.5 million (US$447.4 million), an increase of 180% fromRMB1,048.8 million in the same quarter of 2020.

Revenues from merchandise sales were RMB5,124.1 million (US$782.1 million), an increase of RMB5,124.1 million fromnil in the same quarter of 2020.

Total costs of revenues were RMB10,746.1 million (US$1,0.2 million), an increase of 487% from RMB1,830.2 million in the same quarter of 2020.The increase was mainly due to costs attributable to merchandise sales, higher cost of payment processing fees, cloud services fees, and delivery andstorage fees.

Total operating expenses were RMB15,568.0 million (US$2,376.1 million), compared with RMB9,108.0 million in the same quarter of 2020.

Sales and marketing expenses were RMB12,997.4 million (US$1,983.8 million), an increase of 78% from RMB7,296.6million in the same quarter of 2020, mainly due to an increase in advertising expenses and promotion and couponexpenses.

General and administrative expenses were RMB351.9 million (US$53.7 million), an increase of 4% from RMB338.3million in the same quarter of 2020.

Research and development expenses were RMB2,218.7 million (US$338.6 million), an increase of 51% fromRMB1,473.2 million in the same quarter of 2020. The increase was primarily due to an increase in headcount and therecruitment of more experienced R&D personnel and an increase in R&D-related cloud services expenses.

Operating loss was RMB4,147.0 million (US$633.0 million), compared with operating loss of RMB4,397.2 million in the same quarter of 2020.Non-GAAP operating loss was RMB3,174.1 million (US$484.5 million), compared with operating loss of RMB3,587.9 million in the same quarter of2020.

Net loss attributable to ordinary shareholders was RMB2,905.4 million (US$443.5 million), compared with RMB4,119.3 million in the same quarterof 2020. Non-GAAP net loss attributable to ordinary shareholders was RMB1,0.3 million (US$288.5 million), compared with RMB3,169.6 millionin the same quarter of 2020.

Basic and diluted net loss per ADS were RMB2.33 (US$0.36), compared with RMB3.54 in the same quarter of 2020. Non-GAAP basic and dilutednet loss per ADS were RMB1.52 (US$0.23), compared with RMB2.73 in the same quarter of 2020.

Net cash flow used in operating activities was RMB3,724.5 million (US$568.5 million), compared with RMB567.1 million in the same quarter of2020, primarily due to an increase in restricted cash outflow due to seasonality, offset by increase in online marketing services revenues.

Cash, cash equivalents and short-term investments were RMB83.4 billion (US$12.7 billion) as of March 31, 2021, compared with RMB87.0 billionas of December 31, 2020.Recent Development

As of April 30, 2021, US$756.4 million of the 0% convertible bonds due in 2024 have been converted into newly issued ADSs.Conference Call

The Company will host a conference call to discuss the earnings at 7:30 AM U.S. Eastern Time on Wednesday, May 26, 2021 (7:30 PM Beijing/HongKong Time on Wednesday, May 26, 2021).

The conference call will be webcast live at https://investor.pinduoduo.com/investor-events. The webcast will be available for replay at the samewebsite following the conclusion of the call.

__________________________

1 This announcement contains translations of certain Renminbi (RMB) amounts into U.S. dollars (US$) at a specified rate solely for the convenience of

the reader. Unless otherwise noted, the translation of RMB into US$ has been made at RMB6.5518 to US$1.00, the noon buying rate in effecton March 31, 2021 as set forth in the H.10 Statistical Release of the Federal Reserve Board.

2 “Monthly active users” refers to the number of user accounts that visited the Pinduoduo mobile app during a given month, which does not includethose that accessed the platform through social networks and access points.

3 “Active buyers” in a given period refers to the number of user accounts that placed one or more orders (i) on the Pinduoduo mobile app, and(ii) through social networks and access points in that period, regardless of whether the products and services are actually sold, delivered or returned.4 The Company’s non-GAAP financial measures exclude share-based compensation expenses, fair value change of long-term investments, andinterest expenses related to the convertible bonds’ amortization to face value and gain on extinguishment. See “Reconciliation of Non-GAAPMeasures to The Most Directly Comparable GAAP Measures” set forth at the end of this press release. Use of Non-GAAP Financial Measures

In evaluating the business, the Company considers and uses non-GAAP measures, such as non-GAAP operating loss and non-GAAP net lossattributable to ordinary shareholders, as supplemental measures to review and assess operating performance. The presentation of these non-GAAPfinancial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordancewith accounting principles generally accepted in the United States of America (“U.S. GAAP”). The Company’s non-GAAP financial measures excludeshare-based compensation expenses, fair value change of long-term investments, and interest expenses related to the convertible bonds’amortization to face value and gain on extinguishment.

The Company presents these non-GAAP financial measures because they are used by management to evaluate operating performance andformulate business plans. The Company believes that the non-GAAP financial measures help identify underlying trends in its business by excludingthe impact of share-based compensation expenses, fair value change of long-term investments, and interest expenses related to the convertiblebonds’ amortization to face value and gain on extinguishment, which are non-cash charges. The Company also believes that the non-GAAP financialmeasures could provide further information about the Company’s results of operations, and enhance the overall understanding of the Company’s pastperformance and future prospects.

The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non-GAAP financialmeasures have limitations as analytical tools. The Company’s non-GAAP financial measures do not reflect all items of income and expenses thataffect the Company’s operations and do not represent the residual cash flow available for discretionary expenditures. Further, these non-GAAPmeasures may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may belimited. The Company compensates for these limitations by reconciling the non-GAAP financial measures to the nearest U.S. GAAP performancemeasure, all of which should be considered when evaluating performance. The Company encourages you to review the Company’s financialinformation in its entirety and not rely on a single financial measure.

For more information on the non-GAAP financial measures, please see the table captioned “Reconciliation of Non-GAAP Measures to The MostDirectly 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 U.S. Private SecuritiesLitigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,”“future,” “intends,” “plans,” “believes,” “estimates,” “confident,” “potential,” “continue” or other similar expressions. Among other things, the business

outlook and quotations from management in this announcement, as well as Pinduoduo’s strategic and operational plans, contain forward-lookingstatements. Pinduoduo may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and ExchangeCommission (the “SEC”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers,directors or employees to fourth parties. Statements that are not historical facts, including but not limited to statements about Pinduoduo’s beliefs andexpectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could causeactual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Pinduoduo’s growthstrategies; its future business development, results of operations and financial condition; its ability to understand buyer needs and provide productsand services to attract and retain buyers; its ability to maintain and enhance the recognition and reputation of its brand; its ability to rely on merchantsand fourth-party logistics service providers to provide delivery services to buyers; its ability to maintain and improve quality control policies andmeasures; its ability to establish and maintain relationships with merchants; trends and competition in China’s e-commerce market; changes in itsrevenues and certain cost or expense items; the expected growth of China’s e-commerce market; PRC governmental policies and regulations relatingto Pinduoduo’s industry, and general economic and business conditions globally and in China and assumptions underlying or related to any of theforegoing. Further information regarding these and other risks is included in Pinduoduo’s filings with the SEC. All information provided in this pressrelease and in the attachments is as of the date of this press release, and Pinduoduo undertakes no obligation to update any forward-lookingstatement, except as required under applicable law.About Pinduoduo Inc.

Pinduoduo is a mobile-only marketplace that connects millions of agricultural producers with consumers across China. Pinduoduo aims to bring morebusinesses and people into the digital economy so that local communities can benefit from the increased productivity and convenience through newmarket opportunities.

For more information on Pinduoduo news and industry trends, please visit the content hub at https://stories.pinduoduo-global.com/.

PINDUODUO INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”))

December

31, 2020

RMB

As of

March 31, 2021RMB

US$(Unaudited)

ASSETS

Current assets

Cash and cash equivalentsRestricted cash

Receivables from online payment platformsShort-term investments

Amounts due from related partiesPrepayments and other current assetsTotal current assets

Non-current assets

Property, equipment and software, netIntangible assetRight-of-use assetsOther non-current assetsTotal non-current assets

Total Assets

22,421,1 52,422,447 729,548 ,551,094 4,240,069 5,159,531 149,523,878

202,853 1,276,751 629,827 7,275,305 9,384,736

158,908,614

17,012,978 47,297,740 699,203 66,342,813 4,131,179 4,152,823 139,636,736

227,917 1,169,499 651,701 11,733,999 13,783,116

153,419,852

2,596,6887,219,045106,71910,125,1630,541633,84521,312,729 34,787178,50099,4691,790,9582,103,714

23,416,443

PINDUODUO INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”))

December

31, 2020

RMB

3,385,863 2,423,190 53,833,981 11,193,372 10,926,319 1,866,316 253,036 83,882,077

14,432,792 414,939 2,918 14,850,9

98,732,726

159

86,698,660 (1,047,728)(25,475,203)60,175,888 158,908,614

As of

March 31, 2021RMB

(Unaudited)

4,885,267 1,786,246 49,360,986 10,609,374 11,5,459 634,995 271,940 79,138,267

11,502,472 418,330 2,467 11,923,269

91,061,536

161

91,270,473 (531,699)(28,380,619)62,358,316 153,419,852

745,637 272,634 7,533,958 1,619,307 1,768,7 96,919 41,506 12,078,858

1,755,620 63,850 377 1,819,847

13,8,705

25

13,930,595

(81,153)(4,331,729)9,517,738 23,416,443 US$

LIABILITIES AND SHAREHOLDERS’ EQUITYCurrent liabilities

Amounts due to related parties

Customer advances and deferred revenuesPayable to merchants

Accrued expenses and other liabilitiesMerchant depositsShort-term borrowingsLease liabilitiesTotal current liabilities

Non-current liabilitiesConvertible bondsLease liabilities

Other non-current liabilitiesTotal non-current liabilities

Total Liabilities

Shareholders’ equityOrdinary shares

Additional paid-in capital

Accumulated other comprehensive lossAccumulated deficitsTotal Shareholders’ Equity

Total Liabilities and Shareholders’ Equity

Revenues

Costs of revenuesGross profit

Sales and marketing expenses

General and administrative expensesResearch and development expensesTotal operating expenses

Operating loss

Interest and investment income, net

PINDUODUO INC.

CONDENSED CONSOLIDATED STATEMENTS OF LOSS

(Amounts in thousands of RMB and US$)

For the three months ended March 31,

2020 2021

RMB(Unaudited)

6,541,059 (1,830,247)

4,710,812

(7,296,621)(338,274)(1,473,150)(9,108,045)

(4,397,233)

460,282

RMB(Unaudited)22,167,099 (10,746,050)11,421,049

(12,997,407)(351,855)(2,218,743)(15,568,005)

(4,146,956)

970,477

US$(Unaudited)

3,383,359 (1,0,168)

1,743,191

(1,983,792)(53,704)(338,6)(2,376,142)

(632,951)

148,124

Interest expenses

Foreign exchange loss

Other (loss)/income, net

Loss before income tax and share of results of equity investeesShare of results of equity investeesIncome tax expensesNet loss

(150,634) (19,273) (12,391) (4,119,249)

(80) - (4,119,329)

(335,456) (10,374) 470,384 (3,051,925) 146,509

- (2,905,416)

(51,201)(1,583)71,795 (465,816)22,362

- (443,454)

PINDUODUO INC.

CONDENSED CONSOLIDATED STATEMENTS OF LOSS(Amounts in thousands of RMB and US$, except for per share data)

For the three months ended March 31,

Loss per ordinary share:-Basic-Diluted

Loss per ADS (4 ordinary shares equals 1 ADS):-Basic-Diluted

Weighted average number of outstanding ordinary shares (in thousands):-Basic-Diluted

RMB (Unaudited)

(4,119,329) (4,119,329)

(0.) (0.)

(3.54) (3.54)

4,650,112 4,650,112

2020

2021

RMB(Unaudited)

(2,905,416)

US$(Unaudited)

(443,454)

(443,454)

(0.09)(0.09)

(0.36)(0.36)

4,983,530 4,983,530

Net loss

Net loss attributable to ordinary shareholders

(2,905,416)

(0.58)(0.58)

(2.33)(2.33)

4,983,530 4,983,530

PINDUODUO INC.

NOTES TO FINANCIAL INFORMATION(Amounts in thousands of RMB and US$)

Revenues

- Online marketing services and others- Transaction services- Merchandise salesTotal

For the three months ended March 31,

RMB (Unaudited)

5,492,270 1,048,7

-

6,541,059

2020

2021

RMB(Unaudited)

14,111,486 2,931,475 5,124,138

US$(Unaudited)

2,153,833447,430782,0963,383,359

22,167,099

PINDUODUO INC.

NOTES TO FINANCIAL INFORMATION(Amounts in thousands of RMB and US$)

For the three months ended March 31,

Share-based compensation costs included in:Costs of revenues

Sales and marketing expenses

General and administrative expensesResearch and development expensesTotal

RMB (Unaudited)

8,447 231,799 220,188 348,939

809,373

20202021

RMB(Unaudited)

4,3 299,483 191,170 477,792 972,809

US$(Unaudited)

665,71029,17872,926148,480

PINDUODUO INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in thousands of RMB and US$)

For the three months ended March 31,

2020 RMB(Unaudited)

(567,070)(1,584,192)1,205,472 99,058

2021

RMB(Unaudited)

(3,724,547)(5,621,047)(1,238,874)

51,550

US$(Unaudited)

(568,477)(857,939)(1,0)7,868

(1,607,637)11,423,370

9,815,733

Net cash flow used in operating activitiesNet cash flow used in investing activities

Net cash flow provided by/(used in) financing activities

Effect of exchange rate changes on cash, cash equivalents and restricted cash

Decrease in cash, cash equivalents and restricted cash

Cash, cash equivalents and restricted cash at beginning of period

Cash, cash equivalents and restricted cash at end of period

(846,732) 33,345,857

32,499,125

(10,532,918) 74,843,636

,310,718

PINDUODUO 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 March 31,

4,650,112

(0.)0.21 (0.68)

RMB (Unaudited)

(4,397,233) 809,373

(3,587,860)

(4,119,329)809,373 140,312

2020

2021

RMB(Unaudited)

(4,146,956)972,809

(2,905,416)972,809 318,611

Operating Loss

Add: Share-based compensation

Non-GAAP operating loss

Net loss attributable to ordinary shareholdersAdd: Share-based compensation

Add: Interest expense related to convertible bonds’ amortization to face value and gainon extinguishment, net

Less: Fair value change of long-term investments

Non-GAAP net loss attributable to ordinary shareholders

Weighted-average number of ordinary shares outstanding – basic and diluted (inthousands)

Basic and diluted loss per ordinary share

Add: Non-GAAP adjustments to loss per ordinary shareNon-GAAP basic and diluted loss per ordinary shareNon-GAAP basic and diluted loss per ADS

US$(Unaudited)

(632,951)148,480

(484,471)

(443,454)148,480 48,630 (42,177)(288,521)

4,983,530

(0.09)0.03 (0.06)(0.23)

(3,174,147)

-

(3,169,4)

(276,336) (1,0,332)

4,983,530

(0.58) 0.20 (0.38) (1.52)

(2.73)

For investor and media inquiries, please contact:󰀀Pinduoduo Inc.

investor@pinduoduo.com

internationalmedia@pinduoduo.com

Source: Pinduoduo Inc.