Pinduoduo : Third Quarter 2021 Results Presentation

Pinduoduo 3Q 2021 Results

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Disclaimer

The following presentation has been prepared by Pinduoduo Inc. ("Pinduoduo" or the "Company") solely for informational purposes and should not be construed to be, directly or indirectly, in whole or in part, an offer to buy or sell and/or an invitation and/or a recommendation and/or a solicitation of an offer to buy or sell any security or instrument or to participate in any investment or trading strategy, nor shall any part of it form the basis of, or be relied on in connection with, any contract or investment decision in relation to any securities or otherwise.

This presentation does not contain all relevant information relating to the Company or its securities, particularly with respect to the risks and special considerations involved with an investment in the securities of the Company. Nothing contained in this document shall be relied upon as a promise or representation as to the past or future performance of the Company. Past performance does not guarantee or predict future performance.

You acknowledge that any assessment of the Company that may be made by you will be independent of this document and that you will be solely responsible for your own assessment of the market and the market position of the Company and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the business of the Company.

This document contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward- looking statements can be identified by terminology such as "will," "expects," "anticipates," "aims," "future," "intends," "plans," "believes," "estimates," "confident," "potential," "continue" or other similar expressions. Among other things, the business outlook and quotations from management in this announcement, as well as Pinduoduo's strategic and operational plans, contain forward-looking statements. Pinduoduo may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about Pinduoduo's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Pinduoduo's growth strategies; its future business development, results of operations and financial condition; its ability to understand buyer needs and provide products and services to attract and retain buyers; its ability to maintain and enhance the recognition and reputation of its brand; its ability to rely on merchants and third-party logistics service providers to provide delivery services to buyers; its ability to maintain and improve quality control policies and measures; its ability to establish and maintain relationships with merchants; trends and competition in China's e- commerce market; changes in its revenues and certain cost or expense items; the expected growth of China's e-commerce market; PRC governmental policies and regulations relating to Pinduoduo's industry, and general economic and business conditions globally and in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Pinduoduo's filings with the SEC. Pinduoduo undertakes no obligation to update any forward-looking statement, except as required under applicable law.

This document also contains non-GAAP financial measures, the presentation of which is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with accounting principles generally accepted in the United States of America. In addition, the Company's calculation of these non-GAAP financial measures may be different from the calculation used by other companies, and therefore comparability may be limited. The reconciliation of those measures to the most comparable GAAP measures is contained within this document or the earnings press release.

This document speaks as of Sep 30, 2021. Neither the delivery of this document nor any further discussions of the Company with any of the recipients shall, under any circumstances, create any implication that there has been no change in the affairs of the Company since that date.

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3Q 2021 Highlights

LTM(1) Active Buyers(2)	Average MAUs(3)
867.3 mn	741.5 mn
19% YoY Growth	15% YoY Growth

Revenues(4)	Non-GAAP Net Income(5)
RMB 21,505.8 mn	RMB 3,150.2 mn
51% YoY Growth	15% of Revenues

Notes:

1. "LTM", Last Twelve Months, references to the twelve-month period that ends on the last day of the month or quarter indicated.
2. "Active buyers" in a given period references to the number of user accounts that placed one or more orders (i) on the Pinduoduo mobile app, and (ii) through social networks and access points in that period, regardless of whether the products and services are actually sold, delivered or returned.
3. "MAUs", Monthly Active Users, refers to the number of user accounts that visited the Pinduoduo mobile app during a given month, which does not include those that accessed the platform through social networks and access points.
4. Revenues excluding merchandise sales would be RMB21,423.6 mn, up 55% yoy.
5. Our Non-GAAP financial measures exclude share-based compensation expenses, fair value change of long-term investments, and interest expenses related to the convertible bonds' amortization to face value and gain or

loss on extinguishment. Please refer to our earnings press release for more details.	3

User Base Growth

							19% YoY
						788.4	823.8	849.9	867.3
					731.3
				683.2
			628.1
Active Buyers	536.3	585.2

(LTM, in millions)

LTM Sep-19	LTM Dec-19	LTM Mar-20	LTM Jun-20	LTM Sep-20	LTM Dec-20	LTM Mar-21	LTM Jun-21	LTM Sep-21
Net Add:	48.9	42.9	55.1	48.1	57.1	35.4	26.1	17.4

													15% YoY
									643.4	719.9	724.6	738.5	741.5
							568.8
					487.4
MAUs	429.6	481.5
(Average, in millions)
		3Q19		4Q19		1Q20		2Q20		3Q20		4Q20		1Q21		2Q21		3Q21
		Net Add:	51.9	5.9	81.4	74.6	76.5	4.7	13.9	3.0

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Revenues and Non-GAAP Gross Profit

Revenues

(RMB in millions)

55% YoY,
excl. Merchandise
Sales
Merchandise Sales
Revenues excl. Merchandise Sales
5,357.8
1,958.2	82.1
5,124.1
21,189.9	21,423.6
21,088.1
17,043.0

Non-GAAP(1) Gross Profit

(RMB in millions)

% of Total	76%	81%	72%	78%	77%	57%	52%	66%	70%

Revenues

15,031.5

15,155.8 14,956.2

10,792.7

392.8

12,193.3 13,817.0

8,762.5

10,954.1 11,425.4

9,540.7

7,513.9

6,541.1

5,689.2

4,719.3

3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q213Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21

Notes:
(1) Our Non-GAAP financial measures exclude share-based compensation expenses, fair value change of long-term investments, and interest expenses related to the convertible bonds' amortization to face value and	5
gain or loss on extinguishment. Please refer to our earnings press release for more details.