Temu-owner PDD misses quarterly revenue estimates

Discount e-commerce company PDD Holdings missed market estimates for quarterly revenue on Wednesday, as subdued consumer spending weighed on its Chinese platform, Pinduoduo, overshadowing robust growth at its overseas marketplace Temu.

Shares of the company fell two per cent in premarket trading.

The shortfall underscores the extent to which China’s faltering recovery and fragile household confidence are beginning to erode activity even on discount‑focused platforms.

Pinduoduo, long buoyed by cost‑conscious shoppers, saw growth cool as consumers reined in discretionary purchases amid broader economic uncertainty.

Net income at PDD fell about 11 per cent to 24.5 billion yuan for the quarter, from a year earlier.

The company reported revenue of 123.9 billion yuan ($17.96 billion) for the fourth quarter, compared with analysts’ average estimate of 124.4 billion yuan, according to LSEG data.

(Reporting by Kritika Lamba in Bengaluru; Editing by Maju Samuel)