Overview

• PDD’s net profit tumbled 47% year-on-year to 14.7 billion yuan in Q1 while revenue of 95.67 billion yuan fell short of expectations.
• The end of the U.S. de minimis exemption exposed Temu to new levies, leading PDD to shift fulfillment to local U.S. warehouses to curb import costs.
• The company plans to invest 100 billion yuan over three years to support merchants and strengthen its platform infrastructure.
• Intense rivalry from Alibaba and JD.com and a slowdown in Chinese consumer spending weighed on Pinduoduo’s domestic performance.
• PDD’s U.S.-listed shares plunged more than 15% after the earnings miss, reflecting investor concern over lingering profitability pressures.