BEIJING: Chinese e-commerce giant PDD Holdings announced today slower revenue growth for the third quarter running, as the Temu owner confronts trade tensions between Beijing and Washington.
The Shanghai-based company posted revenues of 110 billion yuan (US$15 billion) in the three months to Dec 31, up 24% year-on-year.
The figure was down on the 44% growth recorded in the third quarter, continuing a slowdown following 86% growth in the second quarter and a 131% surge at the start of 2024.
As owner of overseas e-commerce platform Temu, PDD Holdings is expected to face further challenges as US levies against Chinese goods begin to bite.
US President Donald Trump this month doubled a blanket tariff on all Chinese imports from 10% to 20%.
The order came after Trump in February scrapped a customs exemption for goods valued under US$800, long a vital part of the business model supporting platforms offering low-cost goods like Temu and rival Shein.
The companies send out tens of billions of dollars worth of clothes, gadgets and other items from their vast network of factories in China annually.
Since its September 2022 launch, Temu has become one of the most widely used online shopping sites in the US.
PDD Holdings executives today remained optimistic in the health of its online mega-shops.
“Looking ahead, we will continue to prioritise investments in the platform ecosystem as the cornerstone of our long-term value creation strategy”, the company’s vice-president of finance, Jun Liu, said in a statement.
The firm reported net income of 27.4 billion yuan in the fourth quarter, up 18% compared to a year prior.
The results came in short of forecasts, causing US shares to fall 3.3% in pre-market trading, Bloomberg reported.
PDD Holdings also owns one of China’s leading online retailers – Pinduoduo – which has achieved success in part by reaching consumers in rural areas with a diverse offering of low-cost products.
The filings of Chinese e-commerce firms have been closely watched by analysts and investors for signs of a resurgence in China’s consumer spending.
Alibaba reported 8% growth in the fourth quarter, compared to JD.com with 13.4%.
Beijing has sought to boost spending with a series of measures, from rate cuts to subsidies for home appliances.
