TEMU: PDD Holdings Reports Revenue Increase, Profit Decline

PDD Holdings (PDD.O), the parent company of Pinduoduo in China and Temu internationally, announced a 7% increase in revenue in the second quarter of 2025, exceeding analyst estimates.

However, the company's net profits decreased due to increased investments and intensifying competition in the e-commerce sector.

Specifically, revenue reached 103.98 billion yuan ($14.53 billion), compared to 97.2 billion yuan in the same period last year. Adjusted net profits attributable to shareholders amounted to 32.71 billion yuan, down from 34.43 billion yuan in 2024.

Despite the decrease in profitability, PDD shares recorded a 12% jump in pre-market trading on Wall Street.

According to Reuters, e-commerce giants such as Pinduoduo, JD.com, and Alibaba are engaging in discounts and promotional activities to boost demand, triggering a price war. PDD's CFO, Liu Jun, warned that continued investments could negatively impact short-term profitability.