Pinduoduo Inc. (NASDAQ:PDD) Q3 2022 Earnings Call Transcript

Liu Jun: Thanks Kenneth. I will take your second question about our profitability. Well, first of all, I would like to point out the high profitability level for Q3 is unlikely to continue. Over the past quarter, some of our projects, such as a few agriculture-related projects, as I just mentioned in my remarks, were impacted in terms of project time line and investment pace. So the expense line items on our quarterly results were affected and on the other hand, our quarterly revenue increased as a result of increased merchant activities. Therefore, profitability is partially due to such time lapse. And this shows that our business cycle and financial reporting cycle are not always in sync. We think such profitability level may not be sustainable.

In addition, we are still in the development stage and profitability is not our current priority. We will continue to step-up investments, especially to support agriculture and manufacturing industry through technology. And this may cause fluctuations in our future profitability and the Q3 level will not continue. Thank you.

Unidentified Company Representative: Okay. Operator, it’s about time. And thank you, everybody, for joining us today on the conference call. If you have any further questions, please feel free to reach out to the IR team. Thank you all, and have a great day.

Operator: Thank you. Ladies and gentlemen, that does conclude our conference for today. Thank you for your participation. You may all disconnect.