Temu Owners Report Slump in Sales and Profits

PDD Holdings, the Chinese owner of online shopping platforms Temu and Pinduoduo, has reported disappointing sales and profit as Chinese consumers continued to hold back amid an economic slowdown.

According to BBC reports, US-listed shares of the e-commerce giant fell nearly 11 per cent on Thursday following the announcement.

It comes after PDD’s main rivals in its home market, Alibaba and JD.com, also posted underwhelming results in the September quarter.

Consumer confidence in China has taken a hit from a crisis in the country’s property sector and high levels of youth unemployment.

In the quarter that ended in September, PDD’s revenue reached ¥99.35 billion or US $13.7 billion, below analyst forecasts of around ¥102.8 billion.

It is the second quarter in a row that PDD misses analyst estimates, after years of fast growth.