(Yicai) March 26 -- PDD Holdings will invest CNY100 billion (USD14.5 billion) over three years to integrate the supply chains of both its e-retail platform Pinduoduo and its global shopping platform Temu, to launch its own brand “Xinpinmu.” The move marks a bold strategic shift as the Chinese e-commerce giant forges its own path when many rivals are focusing on artificial intelligence and food delivery.

PDD has set up a dedicated company in Shanghai for its "Xinpinmu" brand, with an initial cash injection of CNY15 billion (USD2.1 billion), and plans to invest a total of CNY100 billion over the next three years, the Shanghai-based company said yesterday.

“Xinpinmu” will leverage Pinduoduo and Temu’s supply chain resources to set up self-operated brands targeting global markets, it added. The initiative will focus on incubating different brands for various markets and product categories.

“Over the past three years, Temu’s rapid growth has been a crucial leap enabled by China’s supply chain advantages and which has also created new opportunities for the upgrading and reshaping of the country’s supply chain,” Zhao Jiazhen, co-chair and co-chief executive officer of PDD, said at the earnings call for its latest financial report which was released the same day.

“This year marks a critical window for China’s supply chain transformation and Pinduoduo will mobilize all its resources to promote “Xinpinmu” and achieve a high-quality, domestically self-owned brand within three years.”

Zhao summed up the initiative as the “Rebuilding Pinduoduo” plan. The company will continue to invest heavily in manpower and resources to upgrade its supply chain, aiming to create another Pinduoduo by 2029.

PDD continues to post strong growth. The firm logged a 11.6 percent jump in net profit last year from the year before to CNY99.3 billion (USD14.3 billion), while revenue surged 10 percent to CNY431.8 billion (USD62.6 billion), although this was a slowdown from 2024.

In the fourth quarter, net profit soared 11 percent year on year to CNY24.5 billion (USD3.5 billion) while revenue jumped 12 percent to CNY123.9 billion.

“Whether it is exploring new business models or strategically investing in our supply chain, these are long-term foundational efforts,” Zhao said. “There is a time lag between investment and return, and this will inevitably have a direct impact on our earnings at a certain stage.”

PDD’s share price [NASDAQ:PDD] closed up 4.61 percent at USD102.61 apiece in New York yesterday.

Editor: Kim Taylor