shrinking by 55 billion us dollars overnight! 18 days later, the "richest man in china" is back｜hot finance
2024-08-28
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the number 8 has a similar pronunciation to the “fa” in the cantonese word “fa cai”, so it is loved by many people and is considered to symbolize luck and wealth.
but sometimes, it's just the opposite.
in the early morning of august 28th, beijing time, as the u.s. stock market closed, pinduoduo's stock price fell again by 4.09%. in the past three trading days, pinduoduo's u.s. stock price has dropped rapidly from $147 to about $95. in the past month, it has fallen from its highest point of $152 per share, a drop of nearly 27%.
especially on august 26, local time, when pinduoduo released its second quarter 2024 financial report, pinduoduo's stock price began to fall sharply after the release of the financial report, first falling by nearly 13%. after more than an hour of conference call, it had fallen by more than 25%, and once fell by as much as 30%. by the close of the day, pinduoduo's us stocks plummeted 28.5%, setting a record for the largest single-day drop since its listing in 2018.
in just one day, the market value decreased by us$55 billion. this dramatic turn is rare among technology and internet companies even in the world.
this means that eight months after pinduoduo, which had surpassed alibaba in market value and briefly became china's second largest internet company in november last year, was once again overtaken by alibaba in market value.
falling to fourth place, he was china's richest man for only 18 days
what is even more dramatic is that as pinduoduo's stock price plummeted overnight, pinduoduo's founder huang zheng was china's richest man for only 18 days before giving up his position again.
on august 8, a lucky day, according to the bloomberg billionaires index, pinduoduo founder huang zheng, a post-80s generation, replaced nongfu spring founder zhong shanshan, who had been at the top of china's rich list for more than three years, and ascended the throne of china's richest man.
however, just 18 days later, as pinduoduo's stock price plummeted on the day of the financial report release, huang zheng's wealth shrank in one day, decreasing by $14.1 billion, and he slipped to fourth place on the chinese rich list with a net worth of $35.2 billion. on the same day, zhong shanshan regained the top spot in china on the list with a net worth of $50 billion.
the forbes rich list also shows that nongfu spring's zhong shanshan once again tops the list of china's richest people, while zhang yiming and ma huateng follow closely behind in second and third place respectively. pinduoduo's huang zheng's wealth shrank by more than 10 billion due to stock price fluctuations, and he slipped to fourth place.
compared with himself, according to the bloomberg billionaires index, huang zheng's wealth has been "cut in half" in more than three years compared to the peak of his personal net worth of us$71.5 billion in early 2021.
why did the double increase in revenue and net profit fail to meet market expectations?
in fact, pinduoduo’s second quarter 2024 financial report is not without highlights.
the financial report shows that pinduoduo's revenue in the second quarter was 97.0595 billion yuan, and its total revenue in the second quarter was 97.1 billion yuan, a year-on-year increase of 86%; the net profit attributable to pinduoduo's ordinary shareholders was 32 billion yuan, a year-on-year increase of 144%.
the stock price change was mainly due to the fact that its second-quarter revenue failed to meet market expectations. for example, although the total revenue in the second quarter increased by 86% compared with the same period last year, it still failed to meet market expectations.
in addition, pinduoduo's management has repeatedly emphasized that competition within the company will continue and become increasingly fierce, that high revenue growth is unsustainable, and that a downward trend in profitability is inevitable.
pinduoduo ceo chen lei said on a post-earnings call that the company’s current trajectory is unsustainable as peers such as bytedance’s tiktok and alibaba compete for budget-conscious shoppers. management also lowered expectations for potential dividends and stock buybacks in the coming years.
goldman sachs research report pointed out that pinduoduo's stock price has performed poorly this year, and its current price-to-earnings ratio is less than 10 times. at the same time, pinduoduo's faster growth in gmv and higher-than-expected transaction service revenue mean that temu's growth momentum continues. pinduoduo is still one of the fastest-growing companies in china's internet industry in the second quarter.
text | reporter wang danyang
