Money

PDD Holdings Reports Slowest Revenue Growth Since Early 2022


PDD Holdings, the parent company of Chinese e-commerce giants Temu and Pinduoduo, has reported its slowest revenue growth in more than two years, raising concerns over its future expansion amid intensified competition and economic challenges.

For the fourth quarter ending December 31, 2024, PDD posted revenue of 110.6 billion yuan (approximately $15.2 billion), representing a 24% year-over-year increase.

However, this figure fell short of analysts’ expectations of 113.6 billion yuan, marking a significant deceleration from the robust growth seen in previous quarters.

The company’s performance in the third quarter had already shown signs of slowing, with revenue growing 44% year-over-year to $14.2 billion, its weakest expansion rate since early 2022.

PDD executives cited growing competition and a challenging macroeconomic environment as key factors behind the sluggish revenue increase.

Jun Liu, PDD’s Vice President of Finance, acknowledged the slowdown, stating that the company is facing increasing pressure as the competitive landscape evolves.

The e-commerce sector in China has been witnessing intensified rivalries, particularly from platforms like Alibaba and JD.com, as well as global economic headwinds that have impacted consumer spending.

Investor concerns were reflected in the stock market, as PDD’s U.S.-listed shares dropped by 6.9% in premarket trading following the earnings announcement.

The decline underscores worries about the company’s ability to sustain its rapid growth and maintain profitability in the current environment.

Despite the slowdown, PDD remains committed to its international expansion strategy, particularly through Temu, its cross-border e-commerce platform that has been aggressively expanding in overseas markets.

The company’s continued investments in technology and logistics are expected to play a crucial role in its long-term growth.

As PDD navigates these challenges, industry analysts will be closely watching its future earnings reports to gauge whether the company can regain momentum and maintain its position in the highly competitive e-commerce space.

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