PDD profit fell 12% as Temu owner missed revenue estimates
Why it matters: Higher US tariffs and new EU parcel fees are raising Temu's costs as China's e-commerce price war cuts margins.
PDD Holdings posted weaker second-quarter results as competition in China and regulatory pressure abroad weighed on growth. Revenue rose 8% to 112.36 billion yuan in the quarter ended June 30, missing analysts’ 116.35 billion yuan estimate compiled by LSEG. Net income attributable to ordinary shareholders dropped 12% from a year earlier to 27.2 billion yuan. Shares fell about 1.5% in US trading. PDD, which runs Pinduoduo in China and Temu overseas, is spending more on logistics, merchant support and platform governance while battling Alibaba, JD.com and Douyin in a discount-driven market. Temu also faces higher shipping and compliance costs after US tariff changes and a new European Union fee on small parcels from China.