Fierce competition weighs on Temu’s profits

PDD Holdings, the parent company of Chinese e-commerce discount retailer Temu, is seeing its profits decline due to fierce competition in its home market, while import tariffs and package taxes in the U.S. and Europe are taking a toll on the company.

Higher costs, rising prices

PDD, which operates Pinduoduo in China and Temu in international markets, saw revenue rise 8% to 112.36 billion yuan (14.3 billion euros) in the second quarter of its fiscal year, which ended June 30, while net profit fell 12% to 27.2 billion yuan (3.5 billion euros). As a result, the company fell short of expectations.