PDD Holdings Announces Fourth Quarter 2023 and Fiscal Year 2023 Unaudited Financial Results
March 20, 2024
DUBLIN and SHANGHAI, March 20, 2024 (GLOBE NEWSWIRE) -- PDD Holdings Inc. (“PDD Holdings” or the “Company”) (NASDAQ: PDD), today
announced its unaudited financial results for the fourth quarter ended and the fiscal year ended December 31, 2023.
Fourth Quarter 2023 Highlights

Total revenues in the quarter were RMB88,881.0 million (US$1 12,518.6 million), an increase of 123% from RMB39,820.0
million in the same quarter of 2022.
Operating profit in the quarter was RMB22,395.0 million (US$3,154.3 million), an increase of 146% from RMB9,113.7
million in the same quarter of 2022. Non-GAAP2 operating profit in the quarter was RMB24,579.9 million (US$3,462.0
million), an increase of 112% from RMB11,600.1 million in the same quarter of 2022.
Net income attributable to ordinary shareholders in the quarter was RMB23,280.3 million (US$3,279.0 million), an
increase of 146% from RMB9,453.7 million in the same quarter of 2022. Non-GAAP net income attributable to ordinary
shareholders in the quarter was RMB25,476.5 million (US$3,588.3 million), an increase of 110% from RMB12,105.8
million in the same quarter of 2022.
“2023 represents a pivotal chapter in our corporate history as we transition towards high-quality development,” said Mr. Lei Chen, Chairman and
Co-Chief Executive Officer of PDD Holdings. “In 2024, we remain dedicated to further improving consumer experiences, enhancing technology
innovations, and generating positive impacts in our communities.”“In the fourth quarter, we saw growing demand driven by encouraging consumer sentiment,” said Mr. Jiazhen Zhao, Executive Director and Co-Chief
Executive Officer of PDD Holdings. “We will continue our high-quality development strategy, stay dedicated to offer great value and exceptional
service, and keep building thriving communities that can benefit all.”“In 2023, our R&D investment exceeded RMB10 billion for the second consecutive year, underscoring our dedication to technology and agriculturaladvancements,” said Ms. Jun Liu, VP of Finance of PDD Holdings. “Our focus remains on creating lasting value through strategic initiatives withsustainable and positive impacts.”
Fourth Quarter 2023 Unaudited Financial Results
Total revenues were RMB88,881.0 million (US$12,518.6 million), an increase of 123% from RMB39,820.0 million in the same quarter of 2022. The
increase was primarily due to an increase in revenues from online marketing services and transaction services.

Revenues from online marketing services and others were RMB48,675.6 million (US$6,855.8 million), an increase of
57% from RMB31,023.4 million in the same quarter of 2022.
Revenues from transaction services were RMB40,205.4 million (US$5,662.8 million), an increase of 357% from
RMB8,796.6 million in the same quarter of 2022.
Total costs of revenues were RMB35,078.3 million (US$4,940.7 million), an increase of 293% from RMB8,926.7 million in the same quarter of 2022.
The increase mainly came from the increased fulfilment fees, payment processing fees, maintenance costs and call center expenses.
Total operating expenses were RMB31,407.8 million (US$4,423.7 million), an increase of 44% from RMB21,779.6 million in the same quarter of2022. The increase was primarily due to an increase in sales and marketing expenses.

Sales and marketing expenses were RMB26,638.5 million (US$3,752.0 million), an increase of 50% from RMB17,732.4
million in the same quarter of 2022, mainly due to the increased spending in promotion and advertising activities.
General and administrative expenses were RMB1,904.8 million (US$268.3 million), compared with RMB1,640.5 million in
the same quarter of 2022.
Research and development expenses were RMB2,864.4 million (US$403.4 million), compared with RMB2,406.7 million
in the same quarter of 2022.
Operating profit in the quarter was RMB22,395.0 million (US$3,154.3 million), an increase of 146% from RMB9,113.7 million in the same quarter of2022. Non-GAAP operating profit in the quarter was RMB24,579.9 million (US$3,462.0 million), an increase of 112% from RMB11,600.1 million in
the same quarter of 2022.
Net income attributable to ordinary shareholders in the quarter was RMB23,280.3 million (US$3,279.0 million), an increase of 146% from
RMB9,453.7 million in the same quarter of 2022. Non-GAAP net income attributable to ordinary shareholders in the quarter was RMB25,476.5
million (US$3,588.3 million), an increase of 110% from RMB12,105.8 million in the same quarter of 2022.
Basic earnings per ADS was RMB17.00 (US$2.39) and diluted earnings per ADS was RMB15.83 (US$2.23), compared with basic earnings per ADS

of RMB7.42 and diluted earnings per ADS of RMB6.52 in the same quarter of 2022. Non-GAAP diluted earnings per ADS was RMB17.32(US$2.40), compared with RMB8.34 in the same quarter of 2022.
Net cash generated from operating activities was RMB36,890.7 million (US$5,195.9 million), compared with RMB26,550.3 million in the samequarter of 2022, mainly due to the increase in net income.
Cash, cash equivalents and short-term investments were RMB217.2 billion (US$30.6 billion) as of December 31, 2023, compared with RMB149.4
billion as of December 31, 2022.
Fiscal Year 2023 Unaudited Financial Results
Total revenues were RMB247,639.2 million (US$34,879.3 million), representing an increase of 90% from RMB130,557.6 million in 2022. The
increase was primarily due to an increase in revenues from online marketing services and transaction services.

Revenues from online marketing services and others were RMB153,540.6 million (US$21,625.7 million), representing
an increase of 49% from RMB102,931.1 million in 2022.
Revenues from transaction services were RMB94,098.7 million (US$13,253.5 million), representing an increase of 241%from RMB27,626.5 million in 2022.
Total costs of revenues were RMB91,723.6 million (US$12,919.0 million), an increase of 192% from RMB31,462.3 million in 2022. The increase
mainly came from the increased fulfilment fees, payment processing fees, maintenance costs and call center expenses.
Total operating expenses were RMB97,216.9 million (US$13,692.7 million), an increase of 42% from RMB68,693.4 million in 2022.

Sales and marketing expenses were RMB82,188.9 million (US$11,576.1 million), an increase of 51% from RMB54,343.7
million in 2022, mainly due to the increased spending in promotion and advertising activities.
General and administrative expenses were RMB4,075.6 million (US$574.0 million), compared with RMB3,964.9 million in
2022.
Research and development expenses were RMB10,952.4 million (US$1,542.6 million), compared with RMB10,384.7
million in 2022.
Operating profit was RMB58,698.8 million (US$8,267.5 million), an increase of 93% from RMB30,401.9 million in 2022. Non-GAAP operating profit
was RMB65,777.6 million (US$9,264.6 million), an increase of 73% from RMB38,120.3 million in 2022.
Net income attributable to ordinary shareholders was RMB60,026.5 million (US$8,454.6 million), an increase of 90% from RMB31,538.1 million in
2022. Non-GAAP net income attributable to ordinary shareholders was RMB67,899.3 million (US$9,563.4 million), an increase of 72% fromRMB39,529.7 million in 2022.
Basic earnings per ADS was RMB44.33 (US$6.24) and diluted earnings per ADS was RMB41.15 (US$5.80), compared with basic earnings per ADS
of RMB24.94 and diluted earnings per ADS of RMB21.93 in 2022. Non-GAAP diluted earnings per ADS was RMB46.51 (US$6.56), compared with
RMB27.45 in 2022.
Net cash generated from operating activities was RMB94,162.5 million (US$13,262.5 million), compared with RMB48,507.9 million in 2022, mainly
due to the increase in net income and the changes in working capitals.
Conference Call
The Company’s management will hold an earnings conference call at 7:30 AM ET on March 20, 2024 (11:30 AM GMT and 7:30 PM HKT on the sameday).
The conference call will be webcast live at https://investor.pddholdings.com/investor-events. The webcast will be available for replay at the same
website following the conclusion of the call.
Use of Non-GAAP Financial Measures
In evaluating the business, the Company considers and uses non-GAAP measures, such as non-GAAP operating profit, non-GAAP net income
attributable to ordinary shareholders, non-GAAP diluted earnings per ordinary share and non-GAAP diluted earnings per ADS, as supplemental
measures to review and assess operating performance. The presentation of these non-GAAP financial measures is not intended to be considered inisolation or as a substitute for the financial information prepared and presented in accordance with accounting principles generally accepted in the
United States of America (“U.S. GAAP”). The Company’s non-GAAP financial measures exclude the impact of share-based compensation expenses,
fair value change of certain investments, and interest expenses related to the convertible bonds’ amortization to face value.
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 excluding
the impact of share-based compensation expenses, fair value change of certain investments, and interest expenses related to the convertible bonds’
amortization to face value, which are non-cash charges. The Company also believes that the non-GAAP financial measures may provide further
information about the Company’s results of operations, and enhance the overall understanding of the Company’s past performance and future
prospects.
The Company’s non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The

non-GAAP financial measures have limitations as analytical tools. These non-GAAP financial measures do not reflect all items of income andexpenses that affect the Company’s operations and do not represent the residual cash flow available for discretionary expenditures. Further, these
non-GAAP measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore theircomparability may be limited. The Company compensates for these limitations by reconciling the non-GAAP financial measures to the nearest U.S.
GAAP performance measure, all of which should be considered when evaluating performance. The Company encourages you to review the
Company’s financial information 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 Most
Directly 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 Securities
Litigation 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 businessoutlook and quotations from management in this announcement, as well as the Company’s strategic and operational plans, contain forward-looking
statements. The Company may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange
Commission (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 third parties. Statements that are not historical facts, including but not limited to statements about the Company’s beliefs andexpectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause
actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company’s
growth strategies; its future business development, results of operations and financial condition; its ability to understand buyer needs and provide
products and services to attract and retain buyers; its ability to maintain and enhance the recognition and reputation of its brand; its ability to rely onmerchants and third-party logistics service providers to provide delivery services to buyers; its ability to maintain and improve quality control policies
and measures; its ability to establish and maintain relationships with merchants; trends and competition in the e-commerce markets globally and in the
countries or regions where the Company has operations; changes in its revenues and certain cost or expense items; the expected growth of
e-commerce markets globally and in the countries or regions where the Company has operations; developments in the relevant governmental policies
and regulations relating to the Company’s industry; and general economic and business conditions globally and in the countries or regions where theCompany has operations; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is
included in the Company’s filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press
release, and the Company undertakes no obligation to update any forward-looking statement, except as required under applicable law.
About PDD Holdings
PDD Holdings is a multinational commerce group that owns and operates a portfolio of businesses. PDD Holdings aims to bring more businesses andpeople into the digital economy so that local communities and small businesses can benefit from the increased productivity and new opportunities.

PDD HOLDINGS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”))
As of
December31, 2022
RMB

ASSETS
Current assets
Cash and cash equivalents
Restricted cash
Receivables from online payment platforms
Short-term investments
Amounts due from related parties

December 31, 2023
RMB
(Unaudited)

US$(Unaudited)

Prepayments and other current assets

34,326,192
57,974,225
587,696
115,112,554
6,318,830
2,298,379

59,794,469
61,985,436
3,914,117
157,415,365
7,428,070
4,213,015

8,421,875
8,730,466
551,292
22,171,490
1,046,222
593,390

Total current assets

216,617,876

294,750,472

41,514,735

Other non-current assets

1,044,847
134,002
1,416,081
1,045,030
16,862,117

979,597
21,1484,104,889
270,738
47,951,276

137,973
2,979
578,162
38,133
6,753,796

Total non-current assets

20,502,077

53,327,648

7,511,043

Non-current assets
Property, equipment and software, net
Intangible assets
Right-of-use assets
Deferred tax assets

237,119,953

Total Assets

348,078,120

49,025,778

PDD HOLDINGS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”))
As of
December31, 2022
RMB

LIABILITIES AND SHAREHOLDERS’ EQUITYCurrent liabilities
Amounts due to related parties
Customer advances and deferred revenues
Payable to merchants
Accrued expenses and other liabilities
Merchant deposits
Convertible bonds, current portion

December 31, 2023
RMB
(Unaudited)

US$(Unaudited)

Lease liabilities

1,676,391
1,389,655
63,316,695
20,960,723
15,058,229
13,885,751
602,036

1,238,776
2,144,610
74,997,252
55,351,399
16,878,746
648,570
1,641,548

174,478
302,062
10,563,142
7,796,081
2,377,322
91,349231,207

Total current liabilities

116,889,480

152,900,901

21,535,641

Deferred tax liabilities

1,575,755
870,782
13,0255,231,523
2,644,260
59,829736,845
372,436
8,427

Total non-current liabilities

2,459,562

7,935,612

1,117,708

119,349,042

160,836,513

22,653,349

Retained earnings

170
99,250,468
5,000
3,322,238
15,193,035

177
107,293,091
105,982
4,723,760
75,118,597

25
15,111,916
14,927665,328
10,580,233

Total Shareholders’ Equity

117,770,911

187,241,607

26,372,429

Total Liabilities and Shareholders’ Equity

237,119,953

348,078,120

49,025,778

Non-current liabilities
Convertible bonds
Lease liabilities

Total Liabilities

Shareholders’ equity
Ordinary shares
Additional paid-in capital
Statutory reserves
Accumulated other comprehensive income

PDD HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME(Amounts in thousands of RMB and US$)For the three months ended December 31,
2022

Revenues
Costs of revenues
Sales and marketing expenses
General and administrative expenses
Research and development expenses
Total operating expenses
Operating profit

2023

For the year ended December 31,
2022

RMB
(Unaudited)
39,820,028(8,926,705)

RMB(Unaudited)
88,881,036(35,078,272)

US$(Unaudited)
12,518,632(4,940,671)(17,732,384)(1,640,527)(2,406,677)(26,638,524)(1,904,842)(2,864,430)(21,779,588)
9,113,735

RMB

2023

130,557,589(31,462,298)

RMB(Unaudited)
247,639,205(91,723,577)

US$(Unaudited)
34,879,253(12,918,996)(3,751,958)(268,291)(403,447)(54,343,719)(3,964,935)(10,384,716)(82,188,870)(4,075,622)(10,952,374)(11,576,060)(574,039)(1,542,610)(31,407,796)(4,423,696)(68,693,370)(97,216,866)(13,692,709)

22,394,968

3,154,265

30,401,921

58,698,762

8,267,548

Interest and investment income, net
Interest expenses
Foreign exchange (loss)/ gain

1,351,698(12,221)(23,819)
168,825

4,359,384(8,155)(198,819)
328,204

614,006(1,149)(28,003)46,227

3,997,100(51,655)(149,710)
2,221,358

10,238,080(43,987)
35,721
2,952,579

1,442,003(6,195)
5,031
415,862

Income tax expenses

10,598,218(78,908)(1,065,613)

26,875,582(15,066)(3,580,207)

3,785,346(2,122)(504,262)

36,419,014(155,285)(4,725,667)

71,881,155(4,707)(11,849,904)

10,124,249(663)(1,669,024)

Net income

9,453,697

23,280,309

3,278,962

31,538,062

60,026,544

8,454,562

Other income, net
Profit before income tax and share of
results of equity investees
Share of results of equity investees

PDD HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME(Amounts in thousands of RMB and US$, except for per share data)
For the three months ended December 31,
2022

2023

RMB
(Unaudited)

RMB(Unaudited)

US$(Unaudited)

9,453,697

23,280,309

3,278,962

9,453,697

23,280,309

Earnings per ordinary share:-Basic-Diluted

1.85
1.63

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

Net income
Net income attributable to ordinary
shareholders

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

For the year ended December 31,
2022

2023

RMB

RMB
(Unaudited)

US$(Unaudited)

31,538,062

60,026,544

8,454,562

3,278,962

31,538,062

60,026,544

8,454,562

4.25
3.96

0.60
0.56

6.24
5.48

11.08
10.29

1.56
1.45

7.42
6.52

17.00
15.83

2.39
2.23

24.94
21.93

44.33
41.15

6.24
5.80

5,099,138
5,809,212

5,478,111
5,882,980

5,478,111
5,882,980

5,057,540
5,761,291

5,416,106
5,839,630

5,416,106
5,839,630

PDD HOLDINGS INC.
NOTES TO FINANCIAL INFORMATION(Amounts in thousands of RMB and US$)For the three months ended December 31,
2022

Revenues- Online marketing services and others- Transaction services
Total

2023

For the year ended December 31,
2022

RMB
(Unaudited)

RMB(Unaudited)

US$(Unaudited)

31,023,400
8,796,628

48,675,618
40,205,418

39,820,028

88,881,036

2023

RMB

RMB
(Unaudited)

US$(Unaudited)

6,855,817
5,662,815

102,931,095
27,626,494

153,540,553
94,098,652

21,625,735
13,253,518

12,518,632

130,557,589

247,639,205

34,879,253

PDD HOLDINGS INC.
NOTES TO FINANCIAL INFORMATION(Amounts in thousands of RMB and US$)For the three months ended December 31,
2022
RMB

2023
RMB

For the year ended December 31,
2022

US$

RMB

2023
RMB

US$

(Unaudited)(Unaudited)(Unaudited)

Research and development expenses

11,777535,550
1,279,760
659,298

46,404
411,048
1,230,358
497,134

6,536
57,895173,292
70,020Total

2,486,385

2,184,944

307,743

Share-based compensation expenses includedin:
Costs of revenues
Sales and marketing expenses
General and administrative expenses(Unaudited)(Unaudited)

33,7882,158,676
3,004,327
2,521,574

132,470
2,354,097
2,289,272
2,302,955

18,658331,568
322,437
324,364

7,718,365

7,078,794

997,027

PDD HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(Amounts in thousands of RMB and US$)For the three months ended December 31,
2022

2022

RMB
(Unaudited)

RMB(Unaudited)

US$(Unaudited)

26,550,262(8,559,916)

36,890,671(16,470,671)

9,510

Net cash generated from operating
activities
Net cash used in investing activities
Net cash generated from/ (used in)financing activities
Effect of exchange rate changes on cash,
cash equivalents and restricted cash
Increase in cash, cash equivalents andrestricted cash
Cash, cash equivalents and restrictedcash at beginning of period/ year
Cash, cash equivalents and restrictedcash at end of period/ year

For the year ended December 31,

2023

2023

RMB

RMB
(Unaudited)

US$(Unaudited)

5,195,942(2,319,845)

48,507,860(22,361,670)

94,162,531(55,431,278)

13,262,515(7,807,332)(8,968,297)(1,263,158)

10,079(8,960,626)(1,262,078)(109,374)(1,025,057)(144,377)

100,177(291,139)(41,006)

17,890,482

10,426,646

1,468,562

26,256,446

29,479,488

4,152,099

74,409,935

111,353,259

15,683,779

66,043,971

92,300,417

13,000,242

92,300,417

121,779,905

17,152,341

92,300,417

121,779,905

17,152,341

PDD HOLDINGS 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 December 31,
2022

2023

For the year ended December 31,
2022

RMB
(Unaudited)
9,113,735
2,486,385

RMB(Unaudited)
22,394,968
2,184,944

US$(Unaudited)
3,154,265
307,743

Non-GAAP operating profit

11,600,120

24,579,912

Net income attributable to ordinary shareholders
Add: Share-based compensation expenses
Add: Interest expenses related to convertible
bonds’ amortization to face value
Add: Loss from fair value change of certain
investments
Non-GAAP net income attributable to ordinary
shareholders

9,453,697
2,486,385

Non-GAAP diluted weighted-average number ofordinary shares outstanding (in thousands)

2023

30,401,921
7,718,365

RMB(Unaudited)
58,698,762
7,078,794

US$(Unaudited)
8,267,548
997,027

3,462,008

38,120,286

65,777,556

9,264,575

23,280,309
2,184,944

3,278,962
307,743

31,538,062
7,718,365

60,026,544
7,078,794

8,454,562
997,027

12,221

8,155

1,149

51,65543,987

6,195

153,467

3,052

430

221,640

749,967

105,631

12,105,770

25,476,460

3,588,284

39,529,722

67,899,292

9,563,415

5,809,212

5,882,980

5,882,980

5,761,291

5,839,630

5,839,630

Diluted earnings per ordinary share
Add: Non-GAAP adjustments to earnings per
ordinary share

1.63

3.96

0.56

5.48

10.29

1.45

0.45

0.37

0.04

1.38

1.34

0.19

Non-GAAP diluted earnings per ordinary share

2.08

4.33

0.60

6.86

11.63

1.64

Operating profit
Add: Share-based compensation expenses

RMB

Non-GAAP diluted earnings per ADS

8.34

17.32

2.40

27.45

46.51

6.56

______________________
1 This announcement contains translations of certain Renminbi (“RMB”) amounts into U.S. dollars (“US$”) at a specified rate solely for theconvenience of the reader. Unless otherwise noted, the translation of RMB into US$ has been made at RMB7.0999 to US$1.00, the noon buying ratein effect on December 29, 2023 as set forth in the H.10 Statistical Release of the Federal Reserve Board.
2 The Company’s non-GAAP financial measures exclude share-based compensation expenses, fair value change of certain investments, and interest
expenses related to the convertible bonds’ amortization to face value. See “Reconciliation of Non-GAAP Measures to The Most Directly Comparable
GAAP Measures” set forth at the end of this press release.

For investor and media inquiries, please contact: investor@pddholdings.com media@pddholdings.com