Overview

• PDD reported first-quarter net income of RMB 14.74 billion, 43% below the RMB 25.89 billion analysts had predicted.
• Quarterly revenue stood at RMB 95.67 billion, missing forecasts of around RMB 103.13 billion.
• US-listed shares dropped as much as 17% in early trading after the earnings announcement.
• Co-CEO Lei Chen said the company’s substantial ecosystem investments and merchant support measures have pressured short-term profitability.
• Intense domestic competition and ongoing shifts in US tariff policy continue to squeeze operating margins on Pinduoduo and Temu.