This past weekend, pinduoduo was in the limelight. In the last two U.S. stock trading days last week, pinduoduo’s share price soared for two consecutive days, up 20.4% on Thursday and 12.73% on Friday, pushing pinduoduo’s share price to $151.29. Therefore, in terms of market value, pinduoduo, which has been established for more than five years, has become China’s fourth largest Internet company in terms of market value. In the Q3 financial report as of September 30, 2020, pinduoduo achieved a total revenue of 14.21 billion yuan, an increase of 89% over the same period of last year of 7.514 billion yuan. At the same time, as an e-commerce platform, it has increased by RMB 30.0 billion per month to RMB 1.2 billion. < / P > < p > however, what is more noteworthy is the profit situation of pinduoduo: according to GAAP standard, pinduoduo lost RMB 784.7 million – but according to non GAAP calculation, pinduoduo realized a net profit of RMB 466.4 million. < / P > < p > and then look at the user activity. According to the financial report, pinduoduo’s average monthly active users in the last quarter was 643.4 million, up 50% from 429.6 million in the same period last year. < / P > < p > moreover, in the past 12 months to September 30, 2020, pinduoduo’s annual active buyers reached 733.3 million, an increase of 36% compared with 536.3 million in the previous cycle, and 48.1 million in a single quarter. For comparison, let’s take a look at the latest data released by Alibaba – it has an annual active buyer number of 757 million, with a single quarter growth of 15 million. < / P > < p > that is to say, in the latest quarter, the annual user volume of pinduoduo has approached that of Alibaba, and according to the current growth rate, pinduoduo’s annual user volume may surpass Alibaba in the next financial report. < / P > < p > according to the data, the average annual cost of pinduoduo’s active buyers in the past 12 months ended September 30 was RMB 1993.1, an increase of 27% from RMB 1566.7 in the previous cycle. Indeed, the emergence of pinduoduo is closely related to its layout outside the first and second tier cities, although Huang Zheng, founder of pinduoduo, does not agree with this view in his discourse system. Huang Zheng said this: < / P > < p > we attract people who pursue high cost performance. He will buy a Hermes bag or a box of mangoes for 9.9 yuan, which has nothing to do with his consumption ability. Traditional companies only use the first line, the second line, the third line to divide people, pinduoduo is satisfied with many aspects of a person. However, from the perspective of actual trends, pinduoduo has spent a lot of efforts in attracting high-value users of the first and second-line and improving brand awareness in the past two years – a typical practice is the 10 billion subsidy;. < / P > < p > in June 2019, pinduoduo announced the implementation of the “10 billion subsidy” strategy, which subsidized the high-end brands beyond the cost price and sold them at a price lower than the market price; in order to enhance the consumer’s trust, pinduoduo added three general orders to protect the “10 billion subsidy” – 100% authentic products, preferred brands and after-sales worry free. < / P > < p > among them, on June 5, 2019, with the subsidy of pinduoduo, the daily sales of the latest iPhone reached 180 million yuan, a record of one-day sales. On that day, the sales of Apple series products, including iPhone, airpods and iPad, were close to 330 million yuan, setting a historical record. < / P > < p > in the period of double 11 in 2019, pinduoduo made crazy subsidies for the newly released iPhone 11 series. The subsidy price broke through the lowest price of the whole network, and the price of iPhone 11 even dropped by 1600 yuan. Later, Huang Zheng said that during the double 11 period, iPhone 11 sold 400000 units on pinduoduo platform. Under the rhythm of < / P > < p > such a rhythm, the majority of consumer groups, including young people, are more and more fighting and shouting out the slogan of & quot; Zhenxiang & quot. < / P > < p > by 2020, both the second generation of iPhone Se in the first half of the year, or the iPhone 12 Series in the second half of the year, will have a strong sense of existence of pinduoduo. < / P > < p > especially for the iPhone 12 series. Although pinduoduo was once forced to win the 10 billion subsidy interface of the iPhone 12 series this year, pinduoduo brought a surprise to the users on November 11 – the iPhone 12 with pinduoduo’s 10 billion subsidy went online successfully. It can be said that although it has been questioned, the strategy of “ten billion subsidy” focusing on Apple products has indeed achieved some success. According to the data disclosed by China Internet Network Information Center, by June 2020, the number of Internet users in China has reached 940 million, which can be regarded as the ceiling of user growth in the e-commerce industry. At present, the average monthly active users of Alibaba Q3 is 881 million, which is close to the ceiling. < / P > < p > pinduoduo currently stands at 643.4 million, which still has a lot of room for growth compared with Alibaba. Meanwhile, pinduoduo’s 10 billion subsidy has indeed formed a strong driving force for the growth of young users. < / P > < p > according to the data of quest mobile, in 2018, only 10% of pinduoduo’s users under the age of 25; at present, according to the latest report on consumption trend of new youth and new domestic goods released by Beijing Normal University, the proportion of young users under 25 years old on pinduoduo platform has increased to 32%, which is 3% higher than that of Alibaba (Taobao + tmall). < p > < p > in August this year, pinduoduo launched a new business – buy more vegetables, mainly focusing on fresh food, but it is a money burning business. For this business, pinduoduo executives said in the financial report conference call: < / P > < p > from the current user base, the growth rate of the number of users will decline in the future, but there is still some room. We launched the business of buying more vegetables, which is a key growth point. We will continue to pay attention to people’s online shopping needs and related services, and invest in infrastructure such as logistics and warehousing. In the long run, our goal is to meet the needs of our customers, to provide good and affordable goods and excellent customer shopping experience. < / P > < p > for more vegetables, pinduoduo also said that it was a long-term business, requiring more investment in infrastructure, and it was too early to conclude – it also acknowledged that investment in infrastructure may cause losses in a single quarter. Pinduoduo also said: < / P > < p > indeed, as one of the most eye-catching dark horses in China’s Internet in recent years, pinduoduo is entitled to say so – in fact, if we only look at the capital market performance in 2020, pinduoduo’s share price has quadrupled from $37.82 on the last day of last year to $151.29 today. < / P > < p > for Huang Zheng, 40, the soaring share price of pinduoduo also directly promoted his fortune. Just two trading days after the release of the financial report, Huang Zheng’s fortune increased by nearly 14.8 billion US dollars, becoming the 23rd richest person in the world. < / P > < p > it is worth mentioning that Huang Zheng is no longer the CEO of pinduoduo, but only the chairman of pinduoduo. In fact, since the last financial report, Huang Zheng has no longer attended pinduoduo’s financial report telephone conference. He said: < / P > < p > pinduoduo’s business is very social, and we will eventually go to the public. Therefore, we hope pinduoduo is a public institution, which should not be a tool to show personal ability, nor should it have too much personal color. Chinese version of K-car: reading a10e design drawing exposure