Temu owner PDD posts disappointing revenues

Highlights the challenges of sustaining its pace of expansion against intense competition.

Temu is also encountering growing regulatory scrutiny following its meteoric rise. The European Union is working on a proposal to close an import tax loophole for cheap goods bought online, a move that would primarily target Chinese retailers.

PDD Holdings’s shares dived after the Temu owner posted disappointing revenue and warned of declining growth, highlighting the challenges of sustaining its pace of expansion against intense competition.

The stock slid during pre-market trading in New York after the Chinese-owned e-commerce platform reported revenue of 97.1 billion yuan (€12.2bn) in the June quarter, versus the average analyst estimate of 100 billion yuan. Net income was 32 billion yuan, compared to a projected 27.5 billion yuan.