PDD Holdings, the operator of Pinduoduo and Temu, reported an 11% drop in quarterly profit to 24.5 billion yuan on Wednesday, despite higher sales, as it shifts toward greater reinvestment. Full-year net profit fell 12% to 99.3 billion yuan, while revenue rose 10% to 431.8 billion yuan.
PDD Holdings, the Chinese e-commerce group behind Pinduoduo and the global budget marketplace Temu, reported an 11 per cent drop in quarterly profit on Wednesday amid higher sales as the company pivots to greater reinvestment. Net profit for the quarter fell to 24.5 billion yuan (US$3.6 billion), missing a consensus analyst estimate of 29.1 billion yuan. Meanwhile, revenue rose 12 per cent year-on-year to 123.9 billion yuan, aligning with estimates of 123.7 billion yuan. For the full year, net profit declined 12 per cent to 99.3 billion yuan, while revenue increased 10 per cent to 431.8 billion yuan. The results mark a pivotal year for PDD, shifting from breakneck growth—in 2024, revenue jumped 59 per cent and net income grew 87 per cent—to a more stable pace. Factors include weak consumer demand in China, rising tariff and regulatory uncertainty for Temu, and a deliberate management pivot to reinvestment, such as a 100 billion yuan merchant support programme launched in April. “Over the past year, we stayed firmly committed to our strategic focus on high-quality development,” said co-chairman and co-CEO Chen Lei. “We will continue to uphold our long-term philosophy, channelling greater resources into the stakeholders we serve, as we look ahead to the next decade of growth.”
