PDD Holdings Misses Expectations: Q2 Revenue Falls Short of Projections

• PDD Holdings, owner of the online store Temu, reported Q2 revenue of 97.06 billion CNY, falling short of the expected 100 billion CNY.
• Weak consumer spending and strong competition from giants like Alibaba and JD.com negatively impacted revenue.
• The company’s shares plunged over 20% in pre-market trading.

Beijing, August 26 (FinanceFlashNews.com) – PDD Holdings, owner of the online store Temu, fell short of market expectations in Q2, highlighting ongoing challenges in the Chinese economy. The company posted revenue of 97.06 billion CNY (12.23 billion EUR), below analysts’ estimates of 100 billion CNY. This announcement led to a more than 20% drop in the company’s shares in pre-market trading, according to a report by Reuters.

Chinese consumers are cutting back on spending due to concerns over economic instability, a prolonged real estate crisis, and high unemployment. This has negatively impacted the revenue of Chinese companies in the retail and e-commerce sectors. Although Pinduoduo, the platform operated by PDD in China, attracted price-sensitive customers with low prices and significant discounts, increased competition from giants like Alibaba and JD.com contributed to the decline in revenue.

PDD’s Q2 revenue reached 97.06 billion CNY, compared to the anticipated 100 billion CNY. Operating expenses rose by 48% year-over-year as the company invested heavily in marketing and advertising. General and administrative expenses more than tripled in the quarter to 1.84 billion CNY.

Table: PDD Holdings Q2 Revenue and Expenses

Keywords: PDD Holdings, Chinese retail, financial results, Alibaba, JD.com