Temu-owner PDD sees Q2 revenue rise 7% amid global challenges

Chinese e-commerce firm PDD Holdings beat market estimates for quarterly revenue on Monday, signaling a rebound in domestic demand and stronger growth in its international business, despite global trade uncertainties.

U.S.-listed shares of the company rose nearly 12% in premarket trading.

The Chinese government has been working to boost domestic consumption to revive a sluggish economy, which is facing multiple pressures, including a weak property sector and ongoing trade tensions with the United States.

To attract consumers, e-commerce players such as PDD’s Pinduoduo, JD.com and Alibaba have introduced steep discounts and promotions. While these efforts have helped stimulate demand, they have also triggered a price war among major platforms.

PDD, which operates low-cost platforms Pinduoduo in China and Temu internationally, reported revenue of 103.98 billion yuan ($14.53 billion) for the second quarter ended June, a 7% increase from the previous year.

Analysts, on average, had expected revenue of 103.34 billion yuan, according to data compiled by LSEG.

Temu is also expected to have stabilized during the quarter, with the United States and China extending a tariff truce.

Adjusted net income attributable to PDD’s shareholders stood at 32.71 billion yuan for the quarter, compared to 34.43 billion yuan a year earlier.

($1 = 7.1561 Chinese yuan renminbi)