Pinduoduo, one of Cathay Innovation's portfolio companies, has rung the Nasdaq opening bell at a valuation of ~$30 billion! Here is a summary of what Pinduoduo has done to reach this amazing milestone. www.cathayinnovation.com

1. -1-
OUR EARLY INVESTMENT: PINDUODUO
How they became the fastest growing commerce company ever
www.cathayinnovation.com
www.cathay.fr

2. -2--2-

3. -3-
PinDuoDuo (PDD) Key Metrics: At a Glance
(1) For 12 months ended June 30, 2018
(2) For 2017
GMV
USD $40B
Annual Orders
4.3B
Active Buyers
350M
Active Merchants
1M+
Number of Employees(1)
(2)
1,300
GMV per Employee
USD 30M

4. -4-
The extraordinary growth of PDD is unprecedented
PDD ranks 2nd by penetration rate after TAOBAO PDD is 2nd largest by DAU (million) after TAOBAO
Only 2 years to achieve $15B GMV per year The highest 7-day retention rate of up to 77%
0%
10%
20%
30%
40%
50%
60%
18Q216Q1 16Q3 17Q1 17Q3
PDD
JD
51.88%
26.50%
23.52%
16.48%
8.28%
3.42%
0
50
100
150
200
172.03
55.88
34.26
24.81
4.08
2 years, 2015-2017
5 years, 2003-2008
10 years, 2003-2013 JD
74.6%TAOBAO
PDD 76.9%
69.5%
18Q216Q1 16Q3 17Q1 17Q3
Source: Jiguang.cn

5. -5-
PDD is a social commerce platform that combines convenience & gamification
• Focus on a few SKUs with a
semi-customized batch
processing mechanism
• Improve the efficiency and
quality of the supply chain
• Enhance user experience by
playing games together
• Create a more family- and
friend-oriented shopping
experience
• PDD is a social commerce platform where users can discover new products and obtain substantial discounts
by inviting their family and friends to buy with them
• The company has experienced incredible growth thanks to virality effects of social networks
• The platform is centered around discovery and gamification instead of utility / search commerce
• Their vision is to incorporate the core values of Costco and Disney into the future business model
Source: Company filings

6. -6-
PDD offers a highly interactive and entertaining interface
Purchase
alone
Team-up
purchase
Join other
group and
purchase
Search
Chat
Entertaining
shopping
functions
imbedded
Selection of
categories
$1 offers
Share
through
social
network
Time limit
for
discount
• PDD’s interface drives customer retention and enhances the overall shopping experience
What’s new

7. -7-
Shopping on PDD is like playing games with family and friends
Limited offers On sale Red packet Treasure draw Grocery
Lucky
draw
Word puzzle
￥9.9 offer Clothes 1 cent draw Group-free Outlets Global shops
Bonus
question
Invite 7 friends to
bargain with you
and buy the
product for free
Hello Kitty quilt
costs less than $1 if
invited 3 friends to
“Group-buy” with
you
Gaming with
friends to win
shopping coupon
Users can spin a
wheel in order
to win shopping
coupons on PDD

8. -8-
PDD has an innovative algorithm to match merchants with consumers
• PDD’s consumer traffic distribution mechanism showcases best value-for-money products to customers
• This creates a new opportunity for over a million of long tail merchants who previously had limited visibility
on other platforms such as Tao Bao
Goods find people
Traffic goes to high value-for-
money products
People find goods
Larger order per SKU
Cheaper price and better
supply chain efficiency
Supply and demand better matched
Chance for long-tail merchants
Traffic goes to merchants
who offer the best bid
Scattered SKU distribution
Limited exposure to long-tail
merchants
Top merchants constantly favored
Winner takes it all
Traffic distribution based on
high value-for-money
Traffic distribution based on
product search

9. -9-
High traffic at low cost
More precise stratification
of the population
Higher network
traffic density
Vast amount of merchants
with strong supply chain
A revolutionary retail channel: population stratification & brand segmentation
Utilize the social media’
network effect to acquire
customers
Stimulate common
shopping needs among
friends
More orders per SKU
assigned to wholesale
mode like Costco
Optimal cost structure is
the key to sustainable high
cost-efficiency
Cost-effectiveness
Traffic
Cost-effectiveness
Traffic
Cost-effectiveness
Traffic
1 Billion+ population on WeChat
Time spent on social: 50-80 min/day
38% of social traffic leads to shopping
traffic
Source: WeChat Statistics 2017

10. -10-
• PDD’s focus is to fulfill the personalized needs of a vast amount of customers
PDD has a unique value proposition in the shopping worldProductstargetedtospecificcustomerneeds
General channel to reach diversified customers
Vertical E-commerce
Group customers by product categories
Convenient stores
Group customers by location
Traditional shopping
Everything and everyone, no focused marketing
Leisure shopping
Social shopping
Targeting specific needs of all customers
Classical E-commerce
Shopping based on search
Source: Nielsen, News Run

11. -11-
PDD’s market share grew exponentially due to its unique positioning
57%
10%
33%
JD
Other
2010
56%
27%
17%
Other
48%
23%
10%
19%
Other
2015 2018
PDD has already become the 2nd largest E-commerce platform by DAU and penetration rate
From 2010 to 2015, JD came as a
strong challenger to Alibaba’s
dominance in China E-commerce
business, thanks to the quality in
its self-operated logistic system
From 2015 to 2018, leveraging
the power of social network, PDD
achieved exponential growth and
has become the 3rd largest B2C E-
commerce in China
Source: iResearch.com
• Within 3 years, PDD has become the 3rd largest E-commerce platform in China by GMV.

12. -12-
PDD is popular among under-penetrated customer segments in eCommerce
30%
70%
Men
Women
10%
50%
31%
8%
40-49
1%
20-29
Below 19
30-39
Above 50
Age distribution
of PDD users
17% 10% 10%
40%
37% 33%
19%
21% 22%
17%
21% 23%
8% 11% 11%
5 tier and below
3 tier
2 tier
4 tier
TAOBAOJD PDD
1 tier
City distribution
of PDD users
Gender distribution
of PDD users
Source: WalkTheChat.com
• PDD is particularly popular with women, customers aged 30-50, living in emerging Tier 3 and Tier 4 cities
• Customers tend to be price sensitive but shopping is leveraged as a form of entertainment

13. -13-
PDD’s extremely efficient customer acquisition via WeChat and team purchase
Viral spreading via
Social Network
Group-buying
Average Customer Acquisition Cost
110
244
344
20172016 2018
5
23
Total Active Buyers (in Million)
Customer Acquisition Cost (in USD)
Snow-ball effect in PDD’s buyer acquisition
Viral spreading via Wechat or other social networks
and group-buying with friends brings Customer
Acquisition Cost to a unprecedented low level
Source: QQ news - July 2nd, 2018
$2
$39
$41
$18

14. -14-
80%
20%
Commission fees
Generally charge 0.6% of
the value of merchandise
sold for
▪ payment processing
fees charged by third-
party online payment
service providers
▪ other transaction-
related costs
PDD’s business model is focused on marketplace services
Goods Sold - GMV:
$10 billion
Total Net Revenues:
$220 million
Source: Company filings
Revenues breakout (Q1 2018)
Online marketing services
Merchants bid for
▪ keywords that match product
listings appearing in search
▪ advertising placements such as
banners, links and logos
• The company’s revenues depend almost exclusively on marketplace services, with a strong focus on online
marketing services constituting 80% of the total, and the remaining 20% depending on commission fees
Key Figures (Q1 2018)

15. -15-
Company milestones and Cathay’s role as an early partner
The company was
established in Apr 2015.
Pin Hao Huo (PHH), its
direct to consumer e-
commerce app for fresh
food, launched
In Jun 2015, PDD
completed its Series
A financing from
Banyan Capital, IDG.
In Oct 2015, Pin Duo Duo, a
testing platform that covers a
broader range of product
categories went online, with
marketplace model
In Jun 2016, the company
finished a Series B+
financing with Cathay
Innovation, New Horizon
and OPPO.
In Oct 2016, PHH & PDD
fully consolidated and PHH
became a merchant on
PDD marketplace.
In Sep 2016, the
monthly GMV exceeded
$150M
In Feb 2017, PDD closed its Series C
financing, led by Sequoia with
co-investment from Tencent,
Banyan, New Horizon, and Cathay
Innovation.
In Mar 2018, PDD finished
Round D financing from
Tencent, Sequoia, and
Banyan Capital.
In Mar 2018, the
monthly GMV exceeded
$6B
In Jul 2018, PDD completed
its IPO on Nasdaq
In Oct 2015, PDD
completed a Series B
round from Banyan
Capital, IDG and
Lightspeed China.

16. -16-
Other Cathay Innovation invested companies
▪ PinDuoDuo is the fastest growing ecommerce
company ever
▪ Now 2nd ecommerce mobile app in terms of
DAU in China after Taobao (Alibaba), after
only 3 years of operations
▪ Most secured cryptocurrencies storage
solution in the World
▪ Fastest growing company in France in 2017
▪ Leading software solution for data
preparation
▪ Technology embedded in Google Cloud
Platform and top partner of AWS and
Microsoft Azure
▪ On-demand delivery company, n°1 in Spain,
Italy, Portugal and Latam
▪ Exclusive delivery partner of McDonald’s in
Spain and Italy
▪ Largest mobile bank in the U.S.
▪ More than one million accounts opened in
less than 3 years
▪ Image recognition software for autonomous
driving
▪ Best AI team in China in the field
▪ MeetYou is the largest female mobile
community in China around health topics
▪ It is one of the most downloaded app in China
▪ Largest car-rental platform in Europe
▪ Offering 40,000 vehicles in 7 countries, with
keyless access and instant booking
Exited
▪ Platform enabling activities merchants to
seamlessly manage online booking and
supply availability
▪ The B2C marketplace offers consumers a
better booking experience

17. -17-
Other Cathay Innovation invested companies
▪ Market leader in China on smart home IoT
▪ Strongly backed by Xiaomi, which selected
Lumi as their core partner for smart home IoT
▪ Personalized and contextual mobile
marketing automation and engagement
▪ Allows brands to monetize loyal customers
and revitalize unresponsive customers
▪ Collaborative software platform for retail
▪ Connects retailers and brands to manage,
share and deliver product information to
consumers
▪ China’s largest mobile platform focusing on
aftermarket and car maintenance sectors
▪ LeCheBang works primarily with 4S
dealerships
▪ Data-centric fashion brands incubator
▪ Discovers, develops, promotes and
distributes designer brands, targeting the
Chinese male urban millennials
▪ Platform to help emerging beauty & fashion
brands expand their business on offline &
online channels in China
▪ Strong expertise in digital marketing
▪ Chinese leading mobile platform providing
primary & secondary property information
▪ Only platform where individual users can
check historical real-estate transaction prices
▪ Platform enabling enterprises to correlate
unstructured feedback to operational KPIs
▪ Powerful application for customer insights
and fraud detection
▪ Collaborative data platform for precision
medicine, focusing on oncology
▪ Provides value across the entire chain:
hospitals, oncologists and pharma companies
▪ Leading HR recruitment platform in China
▪ Enable companies to manage job applications
with an automated selection of the profiles to
match the jobs’ description
• Trucking platform connecting shippers and
carriers, with a high level digitized services
• boost trucks utilization, by increasing
volumes shipped and refining routes taken