Temu parent PDD misses expectations in second quarter

Publicly listed e-commerce group PDD Holdings Inc., which operates the online platforms Temu and Pinduoduo, was impacted by challenging market conditions in the second quarter of the 2026 financial year. The latest results, published by the company on Monday, fell short of market expectations despite a further increase in revenue.

From April to June, group revenue amounted to 112.4 billion Chinese yuan. This was an 8 percent increase on the same quarter last year, but fell short of analysts' forecasts. Operating profit rose by 8 percent to 27.8 billion Chinese yuan. However, net profit attributable to shareholders shrank significantly in the most recent quarter, falling by 12 percent to 27.2 billion Chinese yuan.

The results were impacted by increased price pressure in China, as well as tariff increases and stricter regulations for its international business. The company is striving to counteract these effects with investment packages.

“Since the beginning of the year, the global trade and regulatory environment has continued to evolve, presenting significant challenges but also creating new opportunities,” explained co-chairman and co-CEO Lei Chen in a statement. “We are deeply aware of the significant responsibility that comes with our unique position in global commerce and are fully committed to building a trustworthy platform that consumers can rely on for the long term.”