Background on PDD Holdings and Temu
PDD Holdings, a Chinese conglomerate and parent company of the e-commerce platform Temu, reported a net attributable profit of 14,742 million yuan (approximately €1,799 million) by the end of the first quarter of 2025. This represents a 47% decrease compared to the profit recorded in the same period of the previous year.
Financial Performance Overview
PDD Holdings’ total revenue amounted to 95,672 million yuan (approximately €11,677 million), a 10% increase from the same period in the previous year. The company’s online marketing services revenue rose by 14.7% to 48,722 million yuan (approximately €5,947 million), while transaction services revenue increased by 5.8% to 46,950 million yuan (approximately €5,730 million).
Strategic Investments and Their Impact
Lei Chen, President and Acting Chairman of PDD Holdings, stated that the company made substantial investments in its platform ecosystem to support merchants and consumers amid rapid external changes. These investments affected short-term profitability but strengthened the platform’s long-term resilience.
Jiazhen Zhao, Acting Chairman of PDD Holdings, emphasized the importance of supporting merchants to build a robust commercial ecosystem that offers satisfying shopping experiences for consumers, especially in times of growing uncertainty.
Jun Liu, Vice President of Finance at PDD Holdings, acknowledged that growth may slow down as new challenges emerge, which has been “further accelerated by changes in the external environment during the first quarter.”
Key Questions and Answers
- Who is PDD Holdings? PDD Holdings is a Chinese conglomerate and parent company of the e-commerce platform Temu.
- What is the significance of Temu? Temu is an e-commerce platform under PDD Holdings, offering a wide range of products to consumers.
- Why did PDD Holdings’ profits drop? The company made substantial investments in its platform ecosystem to support merchants and consumers amid rapid external changes, which affected short-term profitability.
- How is PDD Holdings addressing the challenges? PDD Holdings believes in supporting merchants to build a robust commercial ecosystem that offers satisfying shopping experiences for consumers, even in times of growing uncertainty.
- What factors are impacting PDD Holdings’ growth? The company acknowledges that new challenges may slow down growth, which has been further accelerated by changes in the external environment during the first quarter of 2025.
