TEMU’S CHINESE OWNER SEES PROFITS DROP AMID TRADE TENSIONS – Company reports a near 50% fall in Q1 net profit
Chinese e-commerce firm PDD Holdings saw first-quarter net profit drop 47% to 14.74 billion yuan (£1.6 billion), as its domestic platform faced fierce local competition and its international arm was hit by global trade uncertainty.
The company’s U.S.-listed shares fell over 17%.
Despite retailer discounts and government efforts to boost spending, China’s prolonged property crisis continues to dampen consumer confidence, even on PDD’s Pinduoduo, which has outperformed rivals with its low-price strategy.
Bo Pei, an analyst at U.S. Tiger Securities, said: “Slower domestic consumption, rising competition, and global trade tensions are weighing on growth.”
Major platforms like Alibaba, Pinduoduo, and JD.com are locked in a price war as they battle for a larger share of the domestic market.
China’s top e-commerce firms, Alibaba and JD.com, are in a fierce price battle for domestic market share. Alibaba missed revenue estimates, while JD.com beat expectations, boosted by a government trade-in scheme. Meanwhile, U.S.-China tariff tensions continue to cloud the outlook for global business Temu.
