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PDD Holdings, operator of Pinduoduo and Temu, reported an 11% drop in quarterly net profit to 24.5 billion yuan due to higher reinvestment, missing analyst estimates. Revenue rose 12% to 123.9 billion yuan.

PDD Holdings Reports Profit Decline

PDD Holdings, the Chinese e-commerce group behind Pinduoduo and global budget marketplace Temu, announced an 11% drop in quarterly net profit. This decline occurred as the company continued its pivot towards greater reinvestment. Net profit for the quarter fell to 24.5 billion yuan (US$3.6 billion), missing a consensus analyst estimate of 29.1 billion yuan.

Revenue Growth and Reinvestment Strategy

Despite the decrease in profit, PDD Holdings reported a 12% increase in revenue from a year earlier, reaching 123.9 billion yuan. This figure aligned with a consensus analyst estimate of 123.7 billion yuan. The company's strategy involves higher reinvestment, which it cites as a key factor in the profit slide amidst rising sales.

*Source: SCMP China (2026-03-25)*

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