UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER

THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of May 2024

 

 

 

Commission File Number: 001-38591

 

 

 

PDD Holdings Inc.

 

First Floor, 25 St Stephen’s Green,

Dublin 2, D02 XF99

Ireland
(Address of principal executive offices)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

 

Form 20-F x   Form 40-F ¨

 

 

 

 

 

 

Exhibit Index

 

Exhibit 99.1—Press Release (Earnings Release)

 

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

  PDD HOLDINGS INC.

 

  By :

/s/ Lei Chen

  Name : Lei Chen
  Title : Chairman of the Board of Directors and Co-Chief Executive Officer

 

Date: May 22, 2024

 

 

 

 

Exhibit 99.1

 

PDD Holdings Announces First Quarter 2024 Unaudited Financial Results

 

DUBLIN and SHANGHAI, May 22, 2024 (GLOBE NEWSWIRE) – PDD Holdings Inc. (“PDD Holdings” or the “Company”) (NASDAQ: PDD), today announced its unaudited financial results for the first quarter ended March 31, 2024.

 

First Quarter 2024 Highlights

 

·Total revenues in the quarter were RMB86,812.1 million (US$112,023.3 million), an increase of 131% from RMB37,637.1 million in the same quarter of 2023.

 

·Operating profit in the quarter was RMB25,973.7 million (US$3,597.3 million), an increase of 275% from RMB6,929.0 million in the same quarter of 2023. Non-GAAP2 operating profit in the quarter was RMB28,552.2 million (US$3,954.4 million), an increase of 237% from RMB8,462.4 million in the same quarter of 2023.

 

·Net income attributable to ordinary shareholders in the quarter was RMB27,997.8 million (US$3,877.7 million), an increase of 246% from RMB8,101.0 million in the same quarter of 2023. Non-GAAP net income attributable to ordinary shareholders in the quarter was RMB30,601.8 million (US$4,238.3 million), an increase of 202% from RMB10,126.4 million in the same quarter of 2023.

 

“We are committed to offering a trustworthy shopping environment for our users around the world,” said Mr. Lei Chen, Chairman and Co-Chief Executive Officer of PDD Holdings. “We will keep focusing on growing our long-term intrinsic value through investing in initiatives that bring sustainable impacts to our communities.”

 

“This year is critical for us to deepen the execution of our high-quality development strategy,” said Mr. Jiazhen Zhao, Executive Director and Co-Chief Executive Officer of PDD Holdings. “We will focus our efforts on improving the overall consumer experience, strengthening our supply chain capabilities, and fostering a healthy platform ecosystem.”

 

“In the first quarter, we continued our investment in key areas critical to our high-quality development strategy,” said Ms. Jun Liu, VP of Finance of PDD Holdings. “Rather than focusing on short-term results, we prioritize long-term value creation and remain committed to further deepening our investments in the future.”

 

 

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 RMB7.2203 to US$1.00, the noon buying rate in effect on March 29, 2024 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.

 

1 

 

 

First Quarter 2024 Unaudited Financial Results

 

Total revenues were RMB86,812.1 million (US$12,023.3 million), an increase of 131% from RMB37,637.1 million in the same quarter of 2023. 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 RMB42,456.2 million (US$5,880.1 million), an increase of 56% from RMB27,244.4 million in the same quarter of 2023.

 

·Revenues from transaction services were RMB44,355.8 million (US$6,143.2 million), an increase of 327% from RMB10,392.6 million in the same quarter of 2023.

 

Total costs of revenues were RMB32,694.7 million (US$4,528.2 million), an increase of 194% from RMB11,125.3 million in the same quarter of 2023. The increase mainly came from the increased fulfilment fees, payment processing fees, maintenance costs and call center expenses.

 

Total operating expenses were RMB28,143.7 million (US$3,897.9 million), an increase of 44% from RMB19,582.7 million in the same quarter of 2023. The increase was primarily due to an increase in sales and marketing expenses.

 

·Sales and marketing expenses were RMB23,410.7 million (US$3,242.3 million), an increase of 44% from RMB16,259.7 million in the same quarter of 2023, mainly due to the increased spending in promotion and advertising activities.

 

·General and administrative expenses were RMB1,823.4 million (US$252.5 million), an increase of 123% from RMB816.4 million in the same quarter of 2023, primarily due to an increase in staff related costs.

 

·Research and development expenses were RMB2,909.6 million (US$403.0 million), compared with RMB2,506.7 million in the same quarter of 2023.

 

2 

 

 

Operating profit in the quarter was RMB25,973.7 million (US$3,597.3 million), an increase of 275% from RMB6,929.0 million in the same quarter of 2023. Non-GAAP operating profit in the quarter was RMB28,552.2 million (US$3,954.4 million), an increase of 237% from RMB8,462.4 million in the same quarter of 2023.

 

Net income attributable to ordinary shareholders in the quarter was RMB27,997.8 million (US$3,877.7 million), an increase of 246% from RMB8,101.0 million in the same quarter of 2023. Non-GAAP net income attributable to ordinary shareholders in the quarter was RMB30,601.8 million (US$4,238.3 million), an increase of 202% from RMB10,126.4 million in the same quarter of 2023.

 

Basic earnings per ADS was RMB20.33 (US$2.82) and diluted earnings per ADS was RMB18.96 (US$2.63), compared with basic earnings per ADS of RMB6.13 and diluted earnings per ADS of RMB5.55 in the same quarter of 2023. Non-GAAP diluted earnings per ADS was RMB20.72 (US$2.83), compared with RMB6.92 in the same quarter of 2023.

 

Net cash generated from operating activities was RMB21,067.2 million (US$2,917.8 million), compared with RMB1,338.0 million in the same quarter of 2023, mainly due to the increase in net income.

 

Cash, cash equivalents and short-term investments were RMB242.1 billion (US$33.5 billion) as of March 31, 2024, compared with RMB217.2 billion as of December 31, 2023.

 

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Conference Call

 

The Company’s management will hold an earnings conference call at 7:30 AM ET on May 22, 2024 (12:30 PM IST and 7:30 PM HKT on the same day).

 

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 in isolation 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 and formulate 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 and expenses 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 their comparability 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.

 

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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 business outlook 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 and expectations, 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 on merchants 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 the Company 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.

 

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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 and people into the digital economy so that local communities and small businesses can benefit from the increased productivity and new opportunities.

 

For investor and media inquiries, please contact:

 

investor@pddholdings.com

media@pddholdings.com

 

6 

 

 

PDD HOLDINGS INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

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

 

   As of 
  

December

31, 2023

   March 31, 2024 
   RMB   RMB   US$ 
       (Unaudited)   (Unaudited) 
ASSETS               
Current assets               
Cash and cash equivalents   59,794,469    55,591,888    7,699,388 
Restricted cash   61,985,436    59,113,029    8,187,060 
Receivables from online payment platforms   3,914,117    4,769,048    660,506 
Short-term investments   157,415,365    186,539,732    25,835,454 
Amounts due from related parties   7,428,070    6,973,834    965,865 
Prepayments and other current assets   4,213,015    3,482,432    482,311 
Total current assets   294,750,472    316,469,963    43,830,584 
                
Non-current assets               
Property, equipment and software, net   979,597    881,008    122,018 
Intangible assets   21,148    21,994    3,046 
Right-of-use assets   4,104,889    3,953,936    547,614 
Deferred tax assets   270,738    44,116    6,110 
Other non-current assets   47,951,276    56,455,110    7,818,942 
Total non-current assets   53,327,648    61,356,164    8,497,730 
                
Total Assets   348,078,120    377,826,127    52,328,314 

 

7 

 

 

PDD HOLDINGS INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

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

 

   As of 
  

December

31, 2023

   March 31, 2024 
   RMB   RMB   US$ 
       (Unaudited)   (Unaudited) 
LIABILITIES AND SHAREHOLDERS’ EQUITY               
Current liabilities               
Amounts due to related parties   1,238,776    1,369,891    189,728 
Customer advances and deferred revenues   2,144,610    2,281,087    315,927 
Payable to merchants   74,997,252    74,493,746    10,317,265 
Accrued expenses and other liabilities   55,351,399    54,203,751    7,507,132 
Merchant deposits   16,878,746    17,248,091    2,388,833 
Convertible bonds, current portion   648,570    73,951    10,242 
Lease liabilities   1,641,548    1,727,492    239,255 
Total current liabilities   152,900,901    151,398,009    20,968,382 
                
Non-current liabilities               
Convertible bonds   5,231,523    5,240,608    725,816 
Lease liabilities   2,644,260    2,437,620    337,606 
Deferred tax liabilities   59,829    43,921    6,083 
Total non-current liabilities   7,935,612    7,722,149    1,069,505 
                
Total Liabilities   160,836,513    159,120,158    22,037,887 
                
                
Shareholders’ equity               
Ordinary shares   177    178    25 
Additional paid-in capital   107,293,091    110,449,151    15,297,031 
Statutory reserves   105,982    105,982    14,678 
Accumulated other comprehensive income   4,723,760    5,034,235    697,233 
Retained earnings   75,118,597    103,116,423    14,281,460 
Total Shareholders’ Equity   187,241,607    218,705,969    30,290,427 
                
Total Liabilities and Shareholders’ Equity   348,078,120    377,826,127    52,328,314 

 

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PDD HOLDINGS INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Amounts in thousands of RMB and US$)

 

   For the three months ended March 31, 
   2023   2024 
   RMB   RMB   US$ 
   (Unaudited)   (Unaudited)   (Unaudited) 
Revenues   37,637,050    86,812,059    12,023,331 
Costs of revenues   (11,125,285)   (32,694,686)   (4,528,162)
                
Sales and marketing expenses   (16,259,688)   (23,410,655)   (3,242,338)
General and administrative expenses   (816,402)   (1,823,445)   (252,544)
Research and development expenses   (2,506,657)   (2,909,620)   (402,978)
Total operating expenses   (19,582,747)   (28,143,720)   (3,897,860)
                
Operating profit   6,929,018    25,973,653    3,597,309 
                
Interest and investment income, net   1,463,599    5,048,589    699,222 
Interest expenses   (11,687)   -    - 
Foreign exchange (loss)/ gain   (16,037)   214,518    29,710 
Other income, net   1,227,520    1,881,248    260,550 
                
Profit before income tax and share of results of equity investees   9,592,413    33,118,008    4,586,791 
Share of results of equity investees   106,389    (52,430)   (7,261)
Income tax expenses   (1,597,775)   (5,067,752)   (701,876)
Net income   8,101,027    27,997,826    3,877,654 

 

9 

 

 

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 March 31, 
   2023   2024 
   RMB   RMB   US$ 
   (Unaudited)   (Unaudited)   (Unaudited) 
Net income   8,101,027    27,997,826    3,877,654 
Net income attributable to ordinary shareholders   8,101,027    27,997,826    3,877,654 
                
Earnings per ordinary share:               
  -Basic   1.53    5.08    0.70 
  -Diluted   1.39    4.74    0.66 
                
Earnings per ADS (4 ordinary shares equals 1 ADS ):               
  -Basic   6.13    20.33    2.82 
  -Diluted   5.55    18.96    2.63 
                
Weighted average number of outstanding ordinary shares (in thousands):               
  -Basic   5,282,720    5,509,682    5,509,682 
  -Diluted   5,850,378    5,907,021    5,907,021 

 

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PDD HOLDINGS INC.

NOTES TO FINANCIAL INFORMATION

(Amounts in thousands of RMB and US$)

 

   For the three months ended March 31, 
   2023   2024 
   RMB   RMB   US$ 
   (Unaudited)   (Unaudited)   (Unaudited) 
Revenues            
- Online marketing services and others   27,244,426    42,456,243    5,880,121 
- Transaction services   10,392,624    44,355,816    6,143,210 
Total   37,637,050    86,812,059    12,023,331 

 

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PDD HOLDINGS INC.

NOTES TO FINANCIAL INFORMATION

(Amounts in thousands of RMB and US$)

 

   For the three months ended March 31, 
   2023   2024 
   RMB   RMB   US$ 
   (Unaudited)   (Unaudited)   (Unaudited) 
Share-based compensation expenses included in:               
Costs of revenues   37,368    17,514    2,426 
Sales and marketing expenses   488,773    672,375    93,123 
General and administrative expenses   478,062    1,251,768    173,367 
Research and development expenses   529,199    636,885    88,208 
Total   1,533,402    2,578,542    357,124 

 

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PDD HOLDINGS INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in thousands of RMB and US$)

 

   For the three months ended March 31, 
   2023   2024 
   RMB   RMB   US$ 
   (Unaudited)   (Unaudited)   (Unaudited) 
Net cash generated from operating activities   1,338,022    21,067,179    2,917,771 
Net cash used in investing activities   (22,620,247)   (28,290,121)   (3,918,137)
Net cash generated from financing activities   53    30    4 
Effect of exchange rate changes on cash, cash equivalents and restricted cash   (348,245)   147,924    20,488 
                
Decrease in cash, cash equivalents and restricted cash   (21,630,417)   (7,074,988)   (979,874)
Cash, cash equivalents and restricted cash at beginning of period   92,300,417    121,779,905    16,866,322 
Cash, cash equivalents and restricted cash at end of period   70,670,000    114,704,917    15,886,448 

 

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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 March 31, 
   2023   2024 
   RMB   RMB   US$ 
   (Unaudited)   (Unaudited)   (Unaudited) 
Operating profit   6,929,018    25,973,653    3,597,309 
Add: Share-based compensation expenses   1,533,402    2,578,542    357,124 
Non-GAAP operating profit   8,462,420    28,552,195    3,954,433 
                
Net income attributable to ordinary shareholders   8,101,027    27,997,826    3,877,654 
Add: Share-based compensation expenses   1,533,402    2,578,542    357,124 
Add: Interest expenses related to convertible bonds’ amortization to face value   11,687    -    - 
Add: Loss from fair value change of certain investments   480,276    25,437    3,523 
Non-GAAP net income attributable to ordinary shareholders    10,126,392    30,601,805    4,238,301 
                
Non-GAAP diluted weighted-average number of ordinary shares outstanding (in thousands)   5,850,378    5,907,021    5,907,021 
                
Diluted earnings per ordinary share   1.39    4.74    0.66 
Add: Non-GAAP adjustments to earnings per ordinary share   0.34    0.44    0.05 
Non-GAAP diluted earnings per ordinary share   1.73    5.18    0.71 
Non-GAAP diluted earnings per ADS   6.92    20.72    2.83 

 

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