PDDHoldingsAnnouncesSecondQuarter2023UnauditedFinancialResults August29,2023 DUBLINandSHANGHAI,Aug.29,2023(GLOBENEWSWIRE)--PDDHoldingsInc.(“PDDHoldings”orthe“Company”)(NASDAQ:PDD),todayannounceditsunauditedfinancialresultsforthesecondquarterendedJune30,2023. SecondQuarter2023Highlights TotalrevenuesinthequarterwereRMB52,280.7million(US$17,209.8million),anincreaseof66%fromRMB31,439.6millioninthesamequarterof2022. OperatingprofitinthequarterwasRMB12,718.8million(US$1,754.0million),anincreaseof46%fromRMB8,697.2millioninthesamequarterof2022.Non-GAAP2operatingprofitinthequarterwasRMB14,609.4million(US$2,014.7million),anincreaseof39%fromRMB10,541.5millioninthesamequarterof2022. NetincomeattributabletoordinaryshareholdersinthequarterwasRMB13,108.1million(US$1,807.7million),anincreaseof47%fromRMB8,896.3millioninthesamequarterof2022.Non-GAAPnetincomeattributabletoordinaryshareholdersinthequarterwasRMB15,269.4million(US$2,105.7million),anincreaseof42%fromRMB10,776.3millioninthesamequarterof2022. “Technologyservesasapivotaldrivingforceofsustainable,high-qualitydevelopment,”saidMr.LeiChen,ChairmanandCo-ChiefExecutiveOfficerofPDDHoldings.“Weremainunwaveringlycommittedtoleveragingourresourcesandtechnologybackgroundtospearheadinnovation,championdigitalinclusionandgenerateapositiveimpactonsocietyatlarge.” “Overtherecentquarter,wesawapositiveshiftinconsumersentiment,leadingtoariseindemandacrossvariousproductsectors,”statedMr.JiazhenZhao,ExecutiveDirectorandCo-ChiefExecutiveOfficerofPDDHoldings.“Wearedeeplydedicatedtohigh-qualitydevelopmenttocreatevaluesforeverypartyofourecosystem.” “InQ2,weseizedtheopportunitiesoffavorableconsumptiontrendsandinvestedfirmlyandresponsibly,”saidMs.JunLiu,VPofFinanceatPDDHoldings.“Lookingahead,wewillcontinuetoinvestwithdeterminationandpatiencetoexecuteourhigh-qualitydevelopmentstrategy.” SecondQuarter2023UnauditedFinancialResults TotalrevenueswereRMB52,280.7million(US$7,209.8million),anincreaseof66%fromRMB31,439.6millioninthesamequarterof2022.Theincreasewasprimarilyduetoanincreaseinrevenuesfromonlinemarketingservicesandtransactionservices. RevenuesfromonlinemarketingservicesandotherswereRMB37,932.8million(US$5,231.2million),anincreaseof50%fromRMB25,223.4millioninthesamequarterof2022. RevenuesfromtransactionserviceswereRMB14,347.9million(US$1,978.7million),anincreaseof131%fromRMB6,216.2millioninthesamequarterof2022. TotalcostsofrevenueswereRMB18,689.8million(US$2,577.4million),anincreaseof135%fromRMB7,961.9millioninthesamequarterof2022.Theincreasemainlycamefromtheincreasedfulfilmentfeesandpaymentprocessingfees. TotaloperatingexpenseswereRMB20,872.2million(US$2,878.4million),anincreaseof41%fromRMB14,780.5millioninthesamequarterof2022.Theincreasewasprimarilyduetoanincreaseinsalesandmarketingexpenses. SalesandmarketingexpenseswereRMB17,542.2million(US$2,419.2million),anincreaseof55%fromRMB11,343.4millioninthesamequarterof2022,mainlyduetotheincreasedspendinginpromotionandadvertisingactivities. GeneralandadministrativeexpenseswereRMB596.0million(US$82.2million),comparedwithRMB825.7millioninthesamequarterof2022. ResearchanddevelopmentexpenseswereRMB2,734.0million(US$377.0million),comparedwithRMB2,611.4millioninthesamequarterof2022. OperatingprofitinthequarterwasRMB12,718.8million(US$1,754.0million),anincreaseof46%fromRMB8,697.2millioninthesamequarterof2022.Non-GAAPoperatingprofitinthequarterwasRMB14,609.4million(US$2,014.7million),anincreaseof39%fromRMB10,541.5millioninthesamequarterof2022. NetincomeattributabletoordinaryshareholdersinthequarterwasRMB13,108.1million(US$1,807.7million),anincreaseof47%fromRMB8,896.3millioninthesamequarterof2022.Non-GAAPnetincomeattributabletoordinaryshareholdersinthequarterwasRMB15,269.4million(US$2,105.7million),anincreaseof42%fromRMB10,776.3millioninthesamequarterof2022. BasicearningsperADSwasRMB9.64(US$1.33)andthedilutedearningsperADSwasRMB9.00(US$1.24),comparedwithbasicearningsperADSofRMB7.06anddilutedearningsperADSofRMB6.22inthesamequarterof2022.Non-GAAPdilutedearningsperADSwasRMB10.47 (US$1.44),comparedwithRMB7.54inthesamequarterof2022. NetcashgeneratedfromoperatingactivitieswasRMB23,396.0million(US$3,226.5million),comparedwithRMB19,373.9millioninthesamequarterof2022. Cash,cashequivalentsandshort-terminvestmentswereRMB179.5billion(US$24.8billion)asofJune30,2023,comparedwithRMB149.4billionasofDecember31,2022. RecentDevelopment IndependentDirectorAppointment PDDHoldingstodayannouncedtheappointmentofMs.IvonneM.C.M.RietjenstoserveasanindependentdirectoroftheCompany,effectiveonAugust29,2023.Ms.Rietjenshasmorethan25yearsofexperienceinfoodsafety.ShehasbeenafullprofessoratWageningenUniversitysince2001andiscurrentlyheadofthedivisionoftoxicology.SheisalsoanelectedmemberoftheRoyalNetherlandsAcademyofArtsandSciences(KNAW)andthechairpersonoftheKNAWScientificCouncilforNaturalSciencesandEngineering.AddingMs.RietjenstotheBoardincreasesthetotalnumberofboardmembersto7,ofwhich4areindependentdirectors. LegalandComplianceCommittee PDDHoldingshasformedaLegalandComplianceCommittee,chai