On May 27, PDD Holdings, the parent company of Pinduoduo and Temu, released its Q1 2025 financial report. The report showed revenue of 95.7 billion yuan, below analysts’ average expectation of 101.6 billion. Net profit was 14.7 billion yuan, down 47 percent year-on-year, far below the 25.7 billion expected. Sales and marketing expenses rose 43 percent to 33.4 billion yuan, dragging down profits. Operating costs increased 25 percent, mainly due to higher fulfillment and payment processing fees.
Because of the weak Q1 results, Pinduoduo’s US-listed shares fell more than 20 percent before the market opened, wiping out more than 240 billion yuan in market value.
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