Catenaa, Monday, August 25, 2025- Chinese e-commerce firm PDD Holdings, which owns Temu, exceeded market estimates for quarterly revenue on Monday, showing a rebound in domestic demand and international business.
The Chinese government has been seeking to boost domestic consumption to revive a sluggish economy that is navigating several pressures, including a weak property sector and US President Donald Trump’s trade policies.
“Revenue growth further moderated this quarter amid intense competition,” PDD VP of Finance Jun Liu said in a news release. “As we remain focused on long-term value creation, the sustained investments may continue to weigh on short-term profitability.”
To lure customers, e-commerce majors such as PDD’s Pinduoduo, JD.com and Alibaba have resorted to steep discounts and promotional offers. While that has helped prop up demand, it has also sparked a price war between the companies.
PDD, which operates low-cost platforms Pinduoduo in China and Temu internationally, reported revenue of $14.53 billion during the second quarter ended June, up 7% from a year earlier.
Analysts on average were expecting revenue of $14.44 billion, according to data compiled by LSEG.
Temu is also expected to have stabilised in the quarter, with the US and China further extending a tariff truce.
Adjusted net income attributable to PDD’s shareholders stood at $4.57 billion during the quarter, compared with $4.81 billion a year earlier.
PDD’s growth is still slowing from the pace during Temu’s breakout years in 2023 and early last year. PDD grew sales 10% in Q1 and 24%, 44% and 86% in the three quarters before that.
PDD stock was down by 2% on Monday Morning following the earnings release. The stock is up by over 32% so far this year.
