Temu owner PDD shares down as topline growth moderates

PDD Holdings Inc, the parent company of Chinese e-commerce platforms Pinduoduo and Temu, reported a robust year-on-year increase in profit and revenue for the third quarter on Thursday, but cautioned that topline growth had slowed.

Temu owner PDD shares down as topline growth moderates

Operating profit for the quarter rose 46% year-on-year to CNY24.29 billion (approximately USD3.36 billion), up from CNY16.66 billion. Net income attributable to shareholders climbed 61% to CNY24.98 billion, compared to CNY15.54 billion a year earlier. Revenue surged 44% year-on-year to CNY99.35 billion, up from CNY68.84 billion. However, sequential growth was more modest, with revenue increasing 2.4% from CNY97.06 billion in the second quarter, which itself had risen 12% from CNY86.81 billion in the first quarter.

VP of Finance's comment

"Our topline growth continued to moderate quarter-on-quarter due to intensified competition and ongoing external challenges," said Jun Liu, Vice President of Finance at PDD. "In our commitment to high-quality development, we will remain steadfast in investing to create a healthy and sustainable ecosystem, which will be reflected in our results."