# PDD Holdings (PDD.US)

Canonical: https://gigainvestors.com/s/PDD

Analysis as of: 2026-10-16T07:31:06.242Z. Financial observations: FY2016–FY2026.

Listing currency: USD. Reporting currency: CNY.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $82.42 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 0 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- negative average operating margin

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 4

- Operating margin variation: 9.81×

Chart: Operating margin; fiscal year observations.

- FY2017: -0.34×

- FY2018: -0.82×

- FY2019: -0.28×

- FY2020: -0.16×

- FY2021: 0.07×

- FY2022: 0.23×

- FY2023: 0.24×

- FY2024: 0.28×

- FY2025: 0.22×

- LTM to Jun 2026: 0.22×

### moat: fail

- Years with nonpositive invested capital use equity plus debt and leases; positive earnings with no positive capital are shown above 100%.

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 8.3pp below the typical margin (limit 4pp)

- ROIC, median of available years: -1.7%

- ROIC, second-lowest year: -44.3%

- Typical minus recent gross margin: 8.3 pp

- Typical gross margin (annual median): 64.6%

- Recent gross margin (lower of latest and 3-year median): 56.3%

- Years with nonpositive capital: 10

- Capital spending / revenue: 0.2%

- ROIC including acquisitions, ten-year median: >100%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: -55.1%

- FY2017: -28.7%

- FY2018: -44.3%

- FY2019: -21.6%

- FY2020: -9.6%

- FY2021: 6.3%

- FY2022: 19.6%

- FY2023: 24.8%

- FY2024: 28.4%

- FY2025: 18.2%

### economics: na

### management: pass

- Historical market-dollar context (not the management verdict): 2018 to 2025 (7 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: -44.3% vs 24.8%

- Per-share earnings: -0.76 to 65.81 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 8.9%

- Market cap gain: CNY 994B

- Cumulative retained earnings: CNY 297B

- Diluted shares, 5-year annual growth: 8.9%

- $1 test, starting fiscal year: FY2018

- $1 test, ending fiscal year: FY2025

- Per-share value change: CNY 66.57

- Per-share value, starting three-year median: CNY -0.76

- Per-share value, ending three-year median: CNY 65.81

- Buyback history: 0 years

- Debt-funded buybacks: No

- Cumulative net income, 10 years: CNY 284B

- ROIC, first three-year median: -44.3%

- ROIC, last three-year median: 24.8%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY -0.42

- FY2017: CNY -0.76

- FY2018: CNY -11.47

- FY2019: CNY -7.49

- FY2020: CNY -7.39

- FY2021: CNY 6.83

- FY2022: CNY 26.95

- FY2023: CNY 50.81

- FY2024: CNY 75.90

- FY2025: CNY 65.81

### accounting: pass

- Sloan accruals: -1.4%

- Receivables to sales index (DSRI): 1.24×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 7.4%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.09×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.00×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -66.2%

- FY2017: -6.3%

- FY2018: -41.6%

- FY2019: -28.6%

- FY2020: -22.3%

- FY2021: -11.6%

- FY2023: -9.8%

- FY2024: -1.9%

- FY2025: -1.4%

## Holders

- [David Hoeft](https://gigainvestors.com/DAC): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Li Lu](https://gigainvestors.com/HC): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Duan Yongping](https://gigainvestors.com/HH): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Norbert Lou](https://gigainvestors.com/PC): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 45% since May 2024 · "U.S. Tariffs, Competition in China Hit Temu Owner PDD" (finance.yahoo.com, May 2025) · sales +4%

Story as of 2026-10-16T09:59:22.750Z; price observation 2026-10-15.

- 2025-05-27: Temu Owner PDD’s Profit Nearly Halves as Revenue Growth Slows to Three-Year Low ([finance.yahoo.com](https://finance.yahoo.com/m/a4d42399-7b8b-30e1-8c77-44a2cfa81c85/temu-owner-pdd%E2%80%99s-profit.html))

- 2025-06-20: PDD slips on report that Temu U.S. sales plunged 25% ([finance.yahoo.com](https://finance.yahoo.com/news/pdd-slips-report-temu-u-101533409.html))

- 2025-08-25: PDD Holdings Inc (NASDAQ:PDD) Surpasses Q2 Earnings Estimates, Shares Jump 10.5% ([chartmill.com](https://www.chartmill.com/news/PDD/Chartmill-33584-PDD-Holdings-Inc-NASDAQPDD-Surpasses-Q2-Earnings-Estimates-Shares-Jump-105))

- 2025-11-20: PDD Holdings Stock Falls After Mixed Q3 -- EPS Beats but Revenue Misses ([finance.yahoo.com](https://finance.yahoo.com/news/pdd-holdings-stock-falls-mixed-144715050.html))

- 2026-04-07: PDD Weighs Lower 2025 Earnings Against Long Term Supply Chain Push ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/pdd-weighs-lower-2025-earnings-030809208.html))

- 2026-05-27: PDD stock down after Q1 miss as supply-chain investments weigh on margins ([seekingalpha.com](https://seekingalpha.com/news/4597500-pdd-stock-down-after-q1-miss-as-supply-chain-investments-weigh-on-margins?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

### Sales · FY2025–2026

sales +4%; source https://www.sec.gov/Archives/edgar/data/1737806/000110465926050727/pdd-20251231x20f.htm; observed 2026-04-29.

- FY2017: CNY 1.7B 

- FY2018: CNY 13B 

- FY2019: CNY 30B 

- FY2020: CNY 59B 

- FY2021: CNY 94B 

- FY2022: CNY 131B 

- FY2023: CNY 248B 

- FY2024: CNY 394B 

- FY2025: CNY 432B 

- FY2026: CNY 449B 

### Gross margin · FY2025

gross margin 56.3%; source https://www.sec.gov/Archives/edgar/data/1737806/000110465926050727/pdd-20251231x20f.htm; observed 2026-04-29.

- FY2017: 58.6% 

- FY2018: 77.9% 

- FY2019: 79.0% 

- FY2020: 67.6% 

- FY2021: 66.2% 

- FY2022: 75.9% 

- FY2023: 63.0% 

- FY2024: 60.9% 

- FY2025: 56.3% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in internet retail; annual sales are CNY 431.8 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1737806/000110465926050727/pdd-20251231x20f.htm (filed 2026-04-29); FY2025: revenue 431845713000; grossProfit 243043960000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 56.3% to 63% during 2023–25; it lost 1.7% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-29); FY2023: grossProfit / revenue = 63%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-29); FY2024: grossProfit / revenue = 60.9%.

- Source: https://www.sec.gov/Archives/edgar/data/1737806/000110465926050727/pdd-20251231x20f.htm (filed 2026-04-29); FY2025: grossProfit / revenue = 56.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-29); 10-year return on capital observations [[2016,-0.5507041327306028],[2017,-0.2872441473531559],[2018,-0.4430009846260122],[2019,-0.21552442543082045],[2020,-0.09606133460947466],[2021,0.06284264823372977],[2022,0.19628137620068598],[2023,0.2483258944358238],[2024,0.2836006579335374],[2025,0.18191689467083866]]; median -0.016609343187872445. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 1 of 9 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-29); FY2021: growth capex 506550963.39157486; upkeep 2780681036.608425; owner earnings 6832231963.391575. Growth capex / owner earnings = 0.07414135909111008.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-29); FY2023: growth capex 0; upkeep 583879000; owner earnings 61330870000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-29); FY2024: growth capex 180902000; upkeep 786235000; owner earnings 112434512000. Growth capex / owner earnings = 0.0016089543751477305.

- Source: https://www.sec.gov/Archives/edgar/data/1737806/000110465926050727/pdd-20251231x20f.htm (filed 2026-04-29); FY2025: growth capex 0; upkeep 1145077000; owner earnings 99697826000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-29); Dividend observations: [[2016,18326000],[2017,0],[2018,0],[2019,0],[2020,0],[2021,0],[2023,0],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 0.7% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); PDD.US SharesStats.PercentInsiders = 0.729 percentage points; cache date 2026-10-16.

### What the price says

The price is 1.9 times annual sales.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-29); Closing price 82.42 USD; reporting-to-trading FX 0.14944; FY2025 annual sales per share 290.4732915279027; price multiple 1.8987139679191412. FY2025 cash earnings/share 67.05995869500762. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2018-07: $22.59 per share

- 2018-08: $19.35 per share

- 2018-09: $26.29 per share

- 2018-10: $17.65 per share

- 2018-11: $22.96 per share

- 2018-12: $22.44 per share

- 2019-01: $29.21 per share

- 2019-02: $29.94 per share

- 2019-03: $24.80 per share

- 2019-04: $22.23 per share

- 2019-05: $19.42 per share

- 2019-06: $20.63 per share

- 2019-07: $22.27 per share

- 2019-08: $32.77 per share

- 2019-09: $32.22 per share

- 2019-10: $40.88 per share

- 2019-11: $35.95 per share

- 2019-12: $37.82 per share

- 2020-01: $35.22 per share

- 2020-02: $35.78 per share

- 2020-03: $36.03 per share

- 2020-04: $47.44 per share

- 2020-05: $66.87 per share

- 2020-06: $85.84 per share

- 2020-07: $91.80 per share

- 2020-08: $88.94 per share

- 2020-09: $74.15 per share

- 2020-10: $89.98 per share

- 2020-11: $138.81 per share

- 2020-12: $177.67 per share

- 2021-01: $165.71 per share

- 2021-02: $171.16 per share

- 2021-03: $133.88 per share

- 2021-04: $133.93 per share

- 2021-05: $124.88 per share

- 2021-06: $127.02 per share

- 2021-07: $91.61 per share

- 2021-08: $100.02 per share

- 2021-09: $90.67 per share

- 2021-10: $88.92 per share

- 2021-11: $66.50 per share

- 2021-12: $58.30 per share

- 2022-01: $59.84 per share

- 2022-02: $51.86 per share

- 2022-03: $40.11 per share

- 2022-04: $43.09 per share

- 2022-05: $50.35 per share

- 2022-06: $61.80 per share

- 2022-07: $49.01 per share

- 2022-08: $71.30 per share

- 2022-09: $62.58 per share

- 2022-10: $54.83 per share

- 2022-11: $82.04 per share

- 2022-12: $81.55 per share

- 2023-01: $97.98 per share

- 2023-02: $87.73 per share

- 2023-03: $75.90 per share

- 2023-04: $68.15 per share

- 2023-05: $65.32 per share

- 2023-06: $69.14 per share

- 2023-07: $89.82 per share

- 2023-08: $98.97 per share

- 2023-09: $98.07 per share

- 2023-10: $101.42 per share

- 2023-11: $147.44 per share

- 2023-12: $146.31 per share

- 2024-01: $126.87 per share

- 2024-02: $124.54 per share

- 2024-03: $116.25 per share

- 2024-04: $125.18 per share

- 2024-05: $149.78 per share

- 2024-06: $132.95 per share

- 2024-07: $128.89 per share

- 2024-08: $96.11 per share

- 2024-09: $134.81 per share

- 2024-10: $120.59 per share

- 2024-11: $96.56 per share

- 2024-12: $96.99 per share

- 2025-01: $111.91 per share

- 2025-02: $113.69 per share

- 2025-03: $118.35 per share

- 2025-04: $105.57 per share

- 2025-05: $96.51 per share

- 2025-06: $104.66 per share

- 2025-07: $113.45 per share

- 2025-08: $120.22 per share

- 2025-09: $132.17 per share

- 2025-10: $134.87 per share

- 2025-11: $116.08 per share

- 2025-12: $113.39 per share

- 2026-01: $101.05 per share

- 2026-02: $103.73 per share

- 2026-03: $102.18 per share

- 2026-04: $99.88 per share

- 2026-05: $84.44 per share

- 2026-06: $76.28 per share

- 2026-07: $88.56 per share

- 2026-08: $84.00 per share

- 2026-09: $77.94 per share

- 2026-10: $81.96 per share

## Annual estimated value (USD per share)

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 20-F filing](https://www.sec.gov/Archives/edgar/data/1737806/000110465926050727/pdd-20251231x20f.htm); period 2025-12-31, filed 2026-04-29.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations

- [David Hoeft](https://gigainvestors.com/DAC): 4,550,000 PDD shares; USD 347,074,000 reported position value; 0.18% of portfolio; add; quarter 2026 Q2.
- [Li Lu](https://gigainvestors.com/HC): 10,761,119 PDD shares; USD 820,858,000 reported position value; 22.17% of portfolio; add; quarter 2026 Q2.
- [Duan Yongping](https://gigainvestors.com/HH): 25,022,094 PDD shares; USD 1,908,685,000 reported position value; 9.99% of portfolio; add; quarter 2026 Q2.
- [Norbert Lou](https://gigainvestors.com/PC): 415,004 PDD shares; USD 31,657,000 reported position value; 12.37% of portfolio; hold; quarter 2026 Q2.

# PDD — Pinduoduo Inc.

Held by 4 investors · USD 3,108,274,000 total · 2026 Q2 · reported price USD 76.28 (split-adjusted).
Page: https://gigainvestors.com/s/PDD

## Holders (2026 Q2)

| Investor | Value | % of their portfolio | This quarter |
|---|---:|---:|---|
| Duan Yongping (https://gigainvestors.com/HH) | USD 1,908,685,000 | 10% | add +26.71% |
| Li Lu (https://gigainvestors.com/HC) | USD 820,858,000 | 22% | add +133.53% |
| David Hoeft (https://gigainvestors.com/DAC) | USD 347,074,000 | 0.2% | add +0.27% |
| David Tepper (https://gigainvestors.com/AM) | USD 91,962,000 | 0.0% | sold |
| Norbert Lou (https://gigainvestors.com/PC) | USD 31,657,000 | 12% | hold |
| Sarah Ketterer (https://gigainvestors.com/CAU) | USD 24,217,682 | 0.0% | sold |
| Howard Marks (https://gigainvestors.com/oc) | USD 493,007 | 0.0% | sold |

## Total held by quarter

- 2018 Q4: USD 24,414,720 · 1 holder · USD 22.44
- 2019 Q1: USD 26,982,400 · 1 holder · USD 24.80
- 2019 Q2: USD 22,445,440 · 1 holder · USD 20.63
- 2019 Q3: USD 69,996,983 · 1 holder · USD 32.22
- 2019 Q4: USD 224,461,851 · 1 holder · USD 37.82
- 2020 Q1: USD 213,838,194 · 1 holder · USD 36.03
- 2020 Q2: USD 523,452,320 · 1 holder · USD 85.84
- 2020 Q3: USD 1,056,864,844 · 1 holder · USD 74.15
- 2020 Q4: USD 2,561,331,762 · 2 holders · USD 177.67
- 2021 Q1: USD 1,930,045,006 · 2 holders · USD 133.88
- 2021 Q2: USD 1,831,149,661 · 2 holders · USD 127.02
- 2021 Q3: USD 1,307,119,665 · 2 holders · USD 90.67
- 2021 Q4: USD 920,233,435 · 1 holder · USD 58.30
- 2022 Q1: USD 231,519,974 · 1 holder · USD 40.11
- 2022 Q2: USD 247,000 · 1 holder · USD 61.75
- 2022 Q3: USD 250,000 · 1 holder · USD 62.50
- 2022 Q4: USD 66,638,464 · 2 holders · USD 81.55
- 2023 Q1: USD 62,307,676 · 1 holder · USD 75.90
- 2023 Q2: USD 109,116,402 · 2 holders · USD 69.14
- 2023 Q3: USD 370,841,604 · 5 holders · USD 98.07
- 2023 Q4: USD 330,209,526 · 4 holders · USD 146.31
- 2024 Q1: USD 369,997,361 · 4 holders · USD 116.25
- 2024 Q2: USD 412,848,572 · 4 holders · USD 132.95
- 2024 Q3: USD 1,426,312,043 · 5 holders · USD 134.81
- 2024 Q4: USD 1,599,175,096 · 8 holders · USD 96.99
- 2025 Q1: USD 2,046,014,325 · 6 holders · USD 118.35
- 2025 Q2: USD 1,676,785,805 · 5 holders · USD 104.66
- 2025 Q3: USD 2,115,786,744 · 6 holders · USD 132.17
- 2025 Q4: USD 2,624,495,346 · 6 holders · USD 113.39
- 2026 Q1: USD 3,111,455,887 · 7 holders · USD 102.18
- 2026 Q2: USD 3,108,274,000 · 4 holders · USD 76.28