Temu-owner PDD posts strong quarter, tops revenue forecasts
Chinese e-commerce giant PDD Holdings, owned by Temu, surpassed market expectations for quarterly revenue on Monday.
The results reflect a rebound in domestic demand and stronger growth in its international business, despite ongoing global trade uncertainties, News.Az reports, citing Reuters.
U.S.-listed shares of the company jumped nearly 12% in premarket trading.
The Chinese government has been seeking to boost domestic consumption to revive a sluggish economy that is navigating several pressures, including a weak property sector and U.S. President Donald Trump's trade policies.
To lure customers, e-commerce majors such as PDD's Pinduoduo, JD.com and Alibaba have resorted to steep discounts and promotional offers. While that has helped prop up demand, it has also sparked a price war between the companies.
PDD, which operates low-cost platforms Pinduoduo in China and Temu internationally, reported revenue of 103.98 billion yuan ($14.53 billion) during the second quarter ended June, up 7% from a year earlier.
Analysts on average were expecting revenue of 103.34 billion yuan, according to data compiled by LSEG.
Temu is also expected to have stabilised in the quarter, with the U.S. and China further extending a tariff truce.
Adjusted net income attributable to PDD's shareholders stood at 32.71 billion yuan during the quarter, compared with 34.43 billion yuan a year earlier.
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