PDD(PDD) - 2023 Q4 - Annual Results

Financial Performance - Q4 2023 operating profit was RMB22,395.0 million (US$3,154.3 million), a 146$12,518.6 million), a 123% increase from RMB39,820.0 million in Q4 2022[2] - Q4 2023 net income attributable to ordinary shareholders was RMB23,280.3 million (US$3,279.0 million), a 146$34,879.3 million), a 90% increase from RMB130,557.6 million in 2022[6] - Operating profit surged by 146% to RMB22,395.0 million (US$3,154.3 million), while non-GAAP operating profit increased by 112$3,462.0 million)[27] - Net income attributable to ordinary shareholders grew by 146% to RMB23,280.3 million (US$3,279.0 million), with non-GAAP net income up 110$3,588.3 million)[27] - Total revenues for Q4 2023 reached RMB 88,881,036 thousand (USD 12,518,632 thousand), a significant increase from RMB 39,820,028 thousand in Q4 2022[42] - Total revenues for the full year 2023 were RMB 247,639,205 thousand (USD 34,879,253 thousand), a substantial increase from RMB 130,557,589 thousand in 2022[42] Revenue Breakdown - Q4 2023 revenues from transaction services were RMB40,205.4 million (US$5,662.8 million), a 357$6,855.8 million), a 57% increase from RMB31,023.4 million in Q4 2022[24] - FY 2023 revenues from transaction services were RMB94,098.7 million (US$13,253.5 million), a 241$21,625.7 million)[28] - Online marketing services and others revenue for Q4 2023 was RMB 48,675,618 thousand (USD 6,855,817 thousand), up from RMB 31,023,400 thousand in Q4 2022[42] - Transaction services revenue for Q4 2023 surged to RMB 40,205,418 thousand (USD 5,662,815 thousand), compared to RMB 8,796,628 thousand in Q4 2022[42] Expenses and Costs - Q4 2023 sales and marketing expenses were RMB26,638.5 million (US$3,752.0 million), a 50$11,576.1 million), a 51% increase from RMB54,343.7 million in 2022[8] - Total costs of revenues increased by 293% to RMB35,078.3 million (US$4,940.7 million) compared to the same quarter in 2022, driven by higher fulfilment fees, payment processing fees, maintenance costs, and call center expenses[25] - Total operating expenses rose by 44$4,423.7 million), primarily due to increased sales and marketing expenses[25] Earnings Per Share - Basic earnings per ADS increased to RMB17.00 (US$2.39), while diluted earnings per ADS rose to RMB15.83 (US$2.23)[27] - Non-GAAP diluted earnings per ADS for the year reached RMB46.51 (US$6.56), compared to RMB27.45 in 2022[31] - Non-GAAP diluted earnings per ADS for Q4 2023 were RMB 17.32 (USD 2.40), up from RMB 8.34 in Q4 2022[44] Cash Flow and Assets - Net cash generated from operating activities doubled to RMB94,162.5 million (US$13,262.5 million), driven by higher net income and changes in working capital[31] - Total assets grew to RMB348,078.1 million (US$49,025.8 million) as of December 31, 2023, up from RMB237,119.9 million in 2022[34][35] - Shareholders' equity increased to RMB187,241.6 million (US$26,372.4 million) as of December 31, 2023, up from RMB117,770.9 million in 2022[35] - Net cash generated from operating activities for Q4 2023 was RMB 36,890,671 thousand (USD 5,195,942 thousand), up from RMB 26,550,262 thousand in Q4 2022[43] - Net cash used in investing activities for Q4 2023 was RMB 16,470,671 thousand (USD 2,319,845 thousand), compared to RMB 8,559,916 thousand in Q4 2022[43] - Cash, cash equivalents, and restricted cash at the end of 2023 stood at RMB 121,779,905 thousand (USD 17,152,341 thousand), compared to RMB 92,300,417 thousand at the end of 2022[43] R&D Investment - FY 2023 R&D investment exceeded RMB10 billion for the second consecutive year[2]