$PDD(PDD.US) capitalizes expenses. Pinduoduo loves to play this trick. JD.com, Alibaba, or some tech companies in the US stock market nowadays generally turn capital expenditures into assets that are slowly depreciated, making current profits look good, while the costs are deferred. The price is an increasingly heavy balance sheet. However, expensing them all at once makes the balance sheet extremely clean. By creating the illusion of low profits, they numb competitors and regulators. As soon as they slightly slow down capital expenditures, profits will explode like a flood, just like in June 2023. At that point, their competitors will find themselves far behind. It's like you buy a 200k car to drive for Didi and clearly earned 100k this year. If you deduct the car purchase as an expense all at once, you still show a loss of 100k. But your neighbor, Lao Wang, treats the car as an asset and depreciates it over 10 years, making it look like he earned 80k in a year. The essence is the same; it's just different accounting treatments.