Catenaa, Friday, March 21, 2025– E-commerce giant Temu parent company PDD Holdings revenue grew by 24% in the December quarter, the company said on Thursday, missing the market estimates with low domestic demand and US Tariffs.
The e-commerce company reported revenue of 110.6 billion yuan ($15.3 billion) for the December quarter, compared with LSEG analysts’ average estimate of 115.38 billion yuan.
Net income was up 18% to 27.4 billion yuan. PDD’s shares in the US dropped 3.3% pre-market on Thursday.
While Chinese government stimulus measures and deep price cuts from retailers have drawn some shoppers, PDD’s sales report indicates persistent weakness in the Chinese economy is still forcing consumers to keep a tight lid on their spending.
The company is also facing stiff competition from e-commerce industry leaders Alibaba and JD.com, with both reporting better-than-expected revenues in recent weeks. PDD operates Pinduoduo only in China, and Temu internationally.
PDD has warned about domestic competition since August and predicted that its profitability will trend downward over time. It is also facing increasing uncertainties abroad as its fast-expanding global e-commerce platform Temu encounters an economic and regulatory backlash around the world.
Temu, the world’s largest discount online retailer, is grappling with elevated US tariffs on Chinese products and the potential closure of a tax loophole for small-value parcels.
That last would remove a key advantage that Temu and Shein have used to expand in the US at the expense of Amazon.com Inc.
Last year, companies including Shein and Temu shipped some $46 billion of small parcels to the US that had a declared value of less than $800, according to estimates from Nomura Holdings Inc. That represented about 11% of all US-reported imports from China.
