Charlene Liu's questions to PDD Holdings Inc (PDD) leadership • Q3 2024
Question
Charlene Liu from HSBC asked for details on the company's new compliance and platform ecosystem initiatives and their intended goals. She also questioned the slight quarter-over-quarter decline in profit and profitability, its alignment with prior guidance, and the outlook for long-term profitability trends.
Answer
Co-CEO Jiazhen Zhao explained that the company is investing heavily in a strong compliance team, merchant education, and technology to fortify its systems and remove bad actors. Executive Jun Liu confirmed the profitability trend was expected due to intensified competition and firm investments in the platform ecosystem, which are seen as foundational for long-term, sustainable development.