PDD Holdings, an online retailer well-known for providing cheap prices on its Pinduoduo and Temu apps, announced a 94% increase in Q3 2023 revenue to 68.8 billion yuan ($9.6 billion). The quarter saw a 315 percent increase in transaction services revenue and a 60% spike in operating profit to 16.7 billion yuan. In New York trading, PDD’s share price increased by 18%, valuing the company at over US$180 billion, putting it in proximity to Alibaba’s current market size of over US$200 billion. Temu, the company’s overseas e-commerce division, is predicted to bring in more than $16 billion this year. The rising demand for inexpensive goods in many different countries due to cost of living challenges has benefited both Pinduoduo and its rival Shein.
Discounts from China’s Singles Day shopping festival increased demand for products on Pinduoduo. This allowed the platform to capitalise on its reputation for low prices and attract more value-conscious customers in the second-largest economy in the world. In the Singles Day festival period, 620 million users participated in the company’s subsidies programme, executives stated on a post-earnings call with investors. China’s retail sales increased 5.5% in September after growing by 4.6% in August.
DISCLOSURE: All our E.F team members come from an investment background. Apart from writing articles about companies, investments and financial instruments, we also invest in most of them. Please read our terms of use for more details.
+ There are no comments
Add yours