On May 27th, PDD Holdings Inc (PDD.US) released its financial results for the first quarter ending March 31, 2026. Driven by sustained investment in strategies like the "Billion Support" initiative, the platform's ecosystem and supply chain system achieved steady and positive development. PDD's Q1 revenue reached 106.2 billion yuan.
In December of last year, during the annual general meeting, PDD announced the implementation of a co-chairman system and refocused the company's strategic core on "heavy investment in China's supply chain," aiming to rebuild a PDD of equivalent scale within three years. In Q1 of this year, the specialized "New Pinduo" company was formally established in Shanghai, and the brand self-operated business progressed steadily, marking a new phase of deepening development for the "three-year rebuild" strategy. Concurrently, the long-term "Billion Support" merchant-friendly strategy continued to increase its support for merchants and industries, continuously improving platform governance and compliance, and actively fulfilling greater social responsibilities.
"This year marks the beginning of PDD's second decade and is a crucial year for initiating a comprehensive organizational and cultural reshaping around 'high-quality development for the new decade' following my appointment as Chairman," stated Zhao Jiazhen, Co-Chairman and Co-CEO of PDD Group. "We require the entire company, from top to bottom, to prioritize safety and compliance as prerequisites, base our actions on social responsibility, and focus on high-quality development as the core. We must persevere to drive profound changes in our business, teams, internal processes, and organizational management, actively shoulder the responsibilities of a platform enterprise, and create more positive value for users, industries, and society."
"This year is the first year of the 'three-year rebuild' strategy and a critical window period for supply chain transformation and upgrading. We will proceed with gratitude and reverence, adhering to our original purpose as the foundation and guide for all development and for achieving new leaps," said Chen Lei, Co-Chairman and Co-CEO of PDD Group. "In this phase of deepening the New Pinduo initiative, we will fully advance self-operated brands, systematically incubate a group of brands with international influence, continue heavy investment in the supply chain, strive to rebuild a PDD within three years, and drive the supply chain towards transformation, upgrading, and value leap."
"Billion Support" Initiative Amplifies Aid for Merchants and Agriculture, "Free Shipping to Villages" Activates Rural Economy
In Q1, PDD's "Billion Support" merchant-friendly policy maintained a high level of investment and underwent iterative upgrades for special campaigns such as "Duoduo Quality Specialties," "New Quality Supply," and "E-commerce Westward Expansion."
In mid-March, PDD officially launched the "2026 Duoduo Quality Specialties" campaign. Building on last year's support for products and merchants, it delves deeper into upstream and downstream segments of agricultural products, including cultivation, cold-chain logistics, and deep processing, to enhance the quality and efficiency of the agricultural product supply chain and help agricultural production regions elevate their value chain. Initial projects have been launched in regions specializing in Nanning oranges, Hainan pineapples, Tongren matcha, Ningxia goji berries, Lianyungang aquatic products, Yueyang spiced duck, and other agricultural specialties.
In industrial clusters, the new round of the "New Quality Supply" campaign continued to advance substantially and deeply, engaging with clusters in Zhangzhou snacks, Zhengzhou skincare, Yiwu jewelry, Qingdao enamel, Zhongshan lighting, Tianjin chocolate, and others. Many merchants, benefiting from platform support, shifted their product matrices from "large and comprehensive" to "fewer and more refined," and their production methods from batch processing to customized production based on user demand, accelerating their path towards branding. Many traditional "screwdriver factories" have gradually upgraded to smart factories, simultaneously focusing on products, technology, branding, and channels, completing the transformation from "selling a lot" to "selling well." This provides more certainty and added value to the supply chain system, becoming a new engine for industrial transformation and upgrading.
Furthermore, PDD's "E-commerce Westward Expansion" policy continued to bring new growth to many merchants. Taking the Zhongshan lighting industry as an example, shipping a large ceiling light from Zhongshan to Gansu previously cost 40-50 yuan. After the platform covered secondary logistics transfer costs, shipping expenses dropped to around 10 yuan. Many merchants saw order volumes in western regions grow at an annual rate exceeding 30%.
In Q1, building on "E-commerce Westward Expansion," PDD also fully promoted the free "Delivery to Villages" courier service, which is already showing initial results. For example, in some counties in Henan, by establishing county-level transfer warehouses and village-level collection points as part of the last-mile delivery network, over 70% of administrative villages in those counties were covered by "Delivery to Villages" as of March. The transfer warehouses currently handle nearly ten thousand daily orders. This not only brings more villages into "free shipping zones" but also creates more local jobs, injecting new vitality into county and rural economies.
Regarding platform governance and compliance, PDD continuously enhanced food safety safeguards. Building on existing measures, it introduced over 20 governance actions, including operational qualification compliance reviews, food advertising governance, live-streaming control for food products, food database construction, live-streaming scenario compliance patrols, improving food safety information reporting channels, and strengthening technical and manual inspections. The handling time for non-compliant stores was reduced to the hour-level, continuously strengthening platform governance and improving compliance capabilities.
This year, PDD's investment in agricultural technology research continues. Recently, the finals of the fifth "Duoduo Agricultural Research Technology Competition" officially commenced. Plant factories designed by the four finalist teams have been completed. The teams will use these facilities to explore cultivation solutions for strawberries that are "high-quality, high-yield, low-cost, and low-energy." Since its inception in 2020, the competition has evolved from an industry contest into a testing ground for agricultural tech innovation and commercialization, and an incubator for young agricultural research talent, contributing more wisdom and strength to the development of agricultural modernization.
New Pinduo Accelerates Incubation of Self-operated Brands, Driving Supply Chain Value Leap
In December last year, PDD formally announced the "three-year rebuild" strategy at the shareholders' meeting, committing fully to the reconstruction and upgrade of China's supply chain. In Q1, as the three-year strategy entered a new phase of deepening development, PDD established the specialized "New Pinduo" company in Shanghai to build a self-operated brand model. An initial cash injection of 15 billion yuan was made, with plans to invest 100 billion yuan in real capital over the next three years.
Currently, the New Pinduo team is steadily advancing the brand self-operated business, deeply engaging at the industry frontlines to accelerate the integration of supply chain resources from "PDD + Temu," collaborating deeply with globally renowned IPs for co-creation, building an IP matrix, and accelerating the incubation of brands targeting different markets and categories. This aims to comprehensively empower the supply chain towards branding and drive the supply chain system to achieve a value leap.
In Q1, PDD's cross-border e-commerce business maintained stable development across global markets, creating broader market space for the future growth of self-operated brands. Simultaneously, the long-term roots of PDD's "Billion Support" merchant-friendly strategy in industrial clusters also provide more examples and experience for heavy investment in the supply chain.
"Judging from the results achieved by the 'Billion Support' initiative, branding development represents a new opportunity for supply chain upgrading, which gives us greater confidence in the New Pinduo brand self-operated business," Chen Lei stated. "Compared to the domestic market, the branding development of global e-commerce business is still in its infancy. User demand for brands across different markets has not been effectively met, and the branding of various categories has greater room for growth. We hope that through the New Pinduo self-operated model, we can systematically incubate a group of brands with international influence, driving a comprehensive transformation and upgrade of the supply chain."
Zhao Jiazhen stated, "This year marks a new starting point for PDD's second decade and a new phase of deepening development for the New Pinduo business. This new development stage is also an opportunity to shape new teams, new mechanisms, and a new culture. The new leadership team will face challenges head-on, work diligently and steadfastly, and respond to external concerns and expectations with solid actions and verifiable results, living up to the trust and support from all parties, and accelerating the upgrade and reconstruction of the supply chain, striving to rebuild another PDD within the next three years."