Pinduoduo's Market Value Exceeding 200 Billion US Dollars, Aiming to Creating 50 New 100-Million-Level Beauty Makeup Brands in the Future

Pinduoduo's market value doubled in half a year.

By the close of the market on December 29, 2020, Pinduoduo's share price soared by 15.57% to 166.19 US dollars, with a market value of 203.8 billion US dollars, outdoing the benchmark of 200 billion. In June, 2020 Pinduoduo's market value had just exceeded 100 billion. 

According to Forbes Worlds Billionaires List as of December 31, 2020 Huang Zheng, Founder and Chairman of Pinduoduo, became the second richest person in China with a net worth of 63.1 billion US dollars (412.2 billion yuan), surpassing Pony Ma (55.4 billion US dollars) and Jack Ma (59.1 billion US dollars) to rank 18th on Forbes’ list, up 4 places from June 22nd. The richest man in China is Zhong Shanshan, Founder of Nongfu Spring, whose net worth is 78.6 billion US dollars (513.478 billion yuan), ranking 8th on Forbes' list. 

It is noteworthy that although Huang Zheng's share in Pinduoduo has dropped from 43.3% in April this year to a current 29.4%, his net worth has risen rather than fallen. 

This could not be possible without Pinduoduo's rapid development in recent years. 

According to the financial report, in 2019 e-commerce platform Pinduoduo garnered a revenue of 30.14 billion yuan, up 130% from 13.12 billion yuan in the same period of the previous year. In 2019 its Gross Merchandise Volume (GMV) reached 1006.6 billion yuan, up 113% year over year, pushing the company into the "Trillion Club" for the first time. Further, the financial report of the third quarter of 2020 showed that Pinduoduo's revenue exceeded 14.2 billion yuan, up 89% year over year. Under non-US Generally Accepted Accounting Principles (non-GAAP), Pinduoduo's net profit stood at 466.4 million yuan, earning a quarterly profit for the first time since its listing. In the 12 months prior to September 31st, 2020, Pinduoduo’s platform transactions reached 145.76 billion yuan, up 73% year over year.

At the same time, Pinduoduo has witnessed rapid growth in the number of active buyers. 

By the end of September 2020, the annual number of active buyers of the platform reached 731.3 million, up 36% year over year, with a strong growth of 195 million this year. The third quarter saw a single-quarter increase of 48.1 million. It is predicted that the number of active buyers in 2021 is expected to surpass Alibaba's 881 million if the current growth rate is maintained. 

It is worth mentioning that although Pinduoduo is characterized by "good price-performance ratio" and is developing rapidly in new retail formats, they didn’t forget to step into the cosmetics industry. 

Through numerous ways, such as "Ten Billion Subsidies" and "New Brand Plan", it has expanded Pinduoduo’s platform influence and buyer scale from top to bottom, and from brand to consumer. It is reported that since October of last year, Pinduoduo has jointly created new brands of beauty makeup and personal care products represented by "ITGIRLS", “Floracare", "CHICMAX" and “CosDNA"  in cooperation with local giants such as Danz, Proya and OSM. At the same time many new industrial belt domestic brands appeared on Pinduoduo’s platform, such as “Natchiaus” and “Skin Menu”. 

In addition, Chen Qiu, Vice President of Pinduoduo, revealed that the platform will take root in the Chinese cosmetics industrial belt in the next two years and will cultivate 50 ‘100 million-level’ new cosmetics brands, including 10 ‘one billion-level’ new top-line brands.