PDD Holdings surprised with higher sales in the second quarter, thanks to recovery in the Chinese market and continued international growth for Temu. The price war in the Chinese e-commerce market does put pressure on margins.
Revenue grows despite price pressure
The owner of Pinduoduo and Temu posted sales of 103.98 billion Chinese yuan (13.37 billion euros) in the quarter through June, 7% more than a year earlier. Thus, the company beat the average analyst expectation of 103.34 billion Chinese yuan (13.30 billion euros). The growth did fall much lower than last year, when sales rose as much as 86%.
