Pinduoduo Q2 2026 Revenue Rises 8% to RMB 112.4 Billion; Non-GAAP Net Profit Falls 13%
Pinduoduo reported second-quarter 2026 revenue of RMB 112.4 billion, up 8% year on year, while non-GAAP net profit fell 13% to RMB 28.5 billion from RMB 32.7 billion a year earlier. Net profit attributable to common shareholders declined 12% to RMB 27.2 billion. The company cited continued platform ecosystem investment and overseas non-operating losses for the profit decline. Transaction services revenue grew 13% to RMB 54.7 billion. Cash, cash equivalents and short-term investments stood at RMB 456.4 billion as of June 30, 2026.
Pinduoduo released its second-quarter 2026 results, with total revenue reaching RMB 112.4 billion, up 8% year on year. Net profit attributable to common shareholders was RMB 27.2 billion, down 12% from a year earlier. On a non-GAAP basis, net profit was RMB 28.5 billion, down 13% from RMB 32.7 billion in the same period of 2025. The company attributed the profit decline primarily to continued investment in the platform ecosystem and losses from overseas non-operating items.
By revenue segment, online marketing services and other businesses generated RMB 57.6 billion, while transaction services revenue rose 13% to RMB 54.7 billion. Operating costs were RMB 48 billion, up approximately 5% year on year. Sales and marketing expenses increased about 9% to RMB 29.7 billion; research and development expenses rose about 27% to RMB 4.6 billion; and general and administrative expenses increased about 53% to RMB 2.3 billion. As of June 30, 2026, the company held RMB 456.4 billion in cash, cash equivalents and short-term investments.
In the earnings call, management addressed business strategy. Co-Chief Executive Officer Zhao Jiazhen said the brand self-operated business is an important extension of long-term supply chain investment. In the initial phase, the company will focus on core categories where the platform and supply chain hold distinct advantages, working with manufacturers on product co-creation, quality standard setting and market validation. On instant retail, Zhao said it serves different scenario needs from the platform's core e-commerce and grocery businesses, with significant differences in underlying infrastructure and operating models, limiting synergies. The company will concentrate resources on areas where it has built expertise.
Co-Chief Executive Officer Chen Lei said that since the start of 2026, changes in regulatory policies and compliance requirements across multiple global markets have posed challenges to the company's international operations. Pinduoduo is strengthening its compliance capabilities and adjusting platform governance rules to meet requirements in different markets.
On supply chain investment, the "RMB 10 billion ecosystem" and "RMB 100 billion support" programs have entered a deeper execution phase, extending into agricultural production areas, industrial clusters and logistics infrastructure. The company's "new-quality supply" team has worked with industrial belts including home textiles in Suzhou, tents in Shaoxing, outdoor equipment in Jinhua and cosmetics in Guangzhou, providing support in traffic, data, smart manufacturing and warehousing upgrades. Some manufacturers have halved production cycles and improved fulfillment capabilities. The "free shipping to villages" service has established county-level transit warehouses and village-level collection points in more than 10 provinces and cities.
On platform governance, the company has introduced more than 150 comprehensive measures, with more than 50 special programs rolled out in June covering product admission, food safety, drug safety, qualification review, advertising governance and intellectual property protection. In food safety, the company has fully banned the sale of restaurant-prepared products and introduced detailed requirements for food sold via livestreaming. In intellectual property protection, the monitoring database now covers three times more brands, containing 47 million images and 9.5 million keywords. Complaint resolution time has been reduced to within 24 hours, and the company cooperates with more than 130 industry associations.
In addition, the company donated RMB 10 million in cash to support flood relief in Guangxi. To advance supply chain transformation, the company established a dedicated subsidiary in Xiong'an New Area and purchased office premises, setting up a data processing service center and comprehensive service center for traditional industries. The subsidiary currently employs 4,000 full-time staff.