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Business Times
28-05-2025
- Business
- Business Times
Temu-owner PDD Holdings profit dives as it faces challenges at home and abroad
[SHANGHAI] Chinese e-commerce firm PDD Holdings saw first-quarter net profit fall 47 per cent to 14.7 billion yuan (S$2.6 billion) as its domestic platform suffered from intense local competition and its international business was hit by global trade uncertainty. US-listed shares of the company fell more than 17 per cent. '[PDD's] massive bottom line miss is due to much weaker than expected operating margin, likely impacted by US tariffs,' said Mscience analyst Vinci Zhang. Despite deep price cuts by retailers and government stimulus measures to boost spending, a prolonged property crisis in the world's second-largest economy has cast a shadow over consumer spending in China, even on PDD's Pinduoduo, which has out-performed peers with its low-price focus. 'Slower domestic consumption, intensified competition, and global trade frictions are weighing on growth,' said US Tiger Securities analyst Bo Pei. 'Elevated costs reflect strategic promotional activities and advertising spend to support merchant sales, it's aimed at supporting the platform's long-term ecosystem health but sacrifices near-term profitability.' BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up China's largest online e-commerce platforms – Alibaba, Pinduoduo and – have been scrambling for a greater share of the domestic market, sparking a long-running price war to entice consumers to open their wallets. Alibaba's quarterly revenue also missed estimates, although notched a beat, buoyed by a government trade-in scheme focused on its strongest categories, including home appliances and electronics. Meanwhile, a tit-for-tat tariff escalation between the US and China, followed by a temporary 90-day de-escalation, has generated widespread uncertainty for global business Temu. 'Radical change in external policy environments such as tariffs has created significant pressure for our merchants,' PDD chairman and co-CEO Chen Lei told analysts in a post-earnings call. The US earlier this month slashed tariff rates for goods from China valued at under US$800 entering the country under the 'de minimis' provision, a trade exemption leveraged by Temu to avoid tariffs and keep prices low. 'Our global business is working with merchants across regions to bring stable prices and abundant supply to strengthen our operations in the markets we serve,' Chen said, reiterating Temu's desire not to raise prices in the face of tariffs and its strategic shift to seeing more orders fulfilled by local merchants. PDD reported revenue of 95.7 billion yuan for the quarter ended Mar 31, compared with analysts' average estimate of 102.5 billion yuan, according to data compiled by LSEG. REUTERS
New Straits Times
28-05-2025
- Business
- New Straits Times
Temu-owner PDD Holdings profit dives as it faces challenges at home and abroa
KUALA LUMPUR: Chinese e-commerce firm PDD Holdings saw first-quarter net profit fall 47 per cent to 14.74 billion yuan (US$2.05 billion) as its domestic platform suffered from intense local competition and its international business was hit by global trade uncertainty. US-listed shares of the company fell more than 17 per cent. "[PDD's] massive bottom line miss is due to much weaker than expected operating margin, likely impacted by US tariffs," said Mscience analyst Vinci Zhang. Despite deep price cuts by retailers and government stimulus measures to boost spending, a prolonged property crisis in the world's second-largest economy has cast a shadow over consumer spending in China, even on PDD's Pinduoduo, which has out-performed peers with its low-price focus. "Slower domestic consumption, intensified competition, and global trade frictions are weighing on growth," said US Tiger Securities analyst Bo Pei. "Elevated costs reflect strategic promotional activities and advertising spend to support merchant sales, it's aimed at supporting the platform's long-term ecosystem health but sacrifices near-term profitability." China's largest online e-commerce platforms - Alibaba , Pinduoduo and - have been scrambling for a greater share of the domestic market, sparking a long-running price war to entice consumers to open their wallets. Alibaba's quarterly revenue also missed estimates, although notched a beat, buoyed by a government trade-in scheme focused on its strongest categories, including home appliances and electronics. Meanwhile, a tit-for-tat tariff escalation between the US and China, followed by a temporary 90-day de-escalation, has generated widespread uncertainty for global business Temu. "Radical change in external policy environments such as tariffs has created significant pressure for our merchants," PDD chairman and co-ceo Chen Lei told analysts in a post-earnings call. The US earlier this month slashed tariff rates for goods from China valued at under $800 entering the country under the "de minimis" provision, a trade exemption leveraged by Temu to avoid tariffs and keep prices low. "Our global business is working with merchants across regions to bring stable prices and abundant supply to strengthen our operations in the markets we serve," Chen said, reiterating Temu's desire not to raise prices in the face of tariffs and its strategic shift to seeing more orders fulfilled by local merchants. PDD reported revenue of 95.67 billion yuan (US$13.30 billion) for the quarter ended March 31, compared with analysts' average estimate of 102.51 billion yuan, according to data compiled by LSEG.
Yahoo
27-05-2025
- Business
- Yahoo
Temu parent sees stock plummet after earnings miss
Temu's parent company, PDD Holding, saw shares fall about17% on Tuesday morning after reporting a major first-quarter earnings miss. The Chinese e-commerce giant reported that its first-quarter net profit plummeted 47% as it grapples with a trade war and domestic competition. Mscience analyst Vinci Zhang told Reuters the 'massive bottom line miss is due to much weaker than expected operating margin, likely impacted by U.S. tariffs.' PDD Holdings (PDD) did report a 10% year-over-year increase in total revenues for the first quarter of 2025, reaching RMB95.67 billion (US$13.18 billion), primarily from gains in online marketing and transaction services. But the company's operating profit dropped 38% to RMB16.09 billion (US$2.22 billion). Non-GAAP operating profit also declined 36% year-over-year to RMB18.26 billion (US$2.52 billion). U.S. Tiger Securities analyst Bo Pei told Reuters that 'slower domestic consumption, intensified competition, and global trade frictions are weighing on growth.' Temu was set to be one of the companies most affect by Trump's trade war with China since its products were subject to hefty tariffs. The planned closure of the de minimis loophole will no longer allow shipments under $800 to come into the country without facing levies. While many of those tariffs have been deescalated or paused, PDD is still feeling the hurt. 'A slowdown in growth rate is expected as our business scales and challenges emerge. This trend has been further accelerated by the changes in the external environment in the first quarter,' Jun Liu, VP of Finance of PDD Holdings, said in a press release. 'Our financial results may continue to reflect the impact of sustained investments in the ecosystem as we support merchants and consumers through uncertain times.' For the latest news, Facebook, Twitter and Instagram.
Globe and Mail
27-05-2025
- Business
- Globe and Mail
Temu-owner PDD Holdings profit falls 47% as it faces challenges at home and abroad
Chinese e-commerce firm PDD Holdings Inc. PDD-Q saw first-quarter net profit fall 47 per cent to 14.74 billion yuan (US$2.05-billion) as its domestic platform suffered from intense local competition and its international business was hit by global trade uncertainty. U.S.-listed shares of the company fell more than 19 per cent in premarket trading. '[PDD's] massive bottom line miss is due to much weaker than expected operating margin, likely impacted by U.S. tariffs,' said Mscience analyst Vinci Zhang. Despite deep price cuts by retailers and government stimulus measures to boost spending, a prolonged property crisis in the world's second-largest economy has cast a shadow over consumer spending in China, even on PDD's Pinduoduo, which has out-performed peers with its low-price focus. 'Slower domestic consumption, intensified competition, and global trade frictions are weighing on growth,' said U.S. Tiger Securities analyst Bo Pei. 'Elevated costs reflect strategic promotional activities and advertising spend to support merchant sales, it's aimed at supporting the platform's long-term ecosystem health but sacrifices near-term profitability.' The Decibel: How Canadian businesses are getting caught up in U.S. tariffs on China Online marketplace Temu allowing Canadian businesses to sell through platform China's largest online e-commerce platforms - Alibaba BABA-N, Pinduoduo and - have been scrambling for a greater share of the domestic market, sparking a long-running price war to entice consumers to open their wallets. Alibaba's quarterly revenue also missed estimates, although notched a beat, buoyed by a government trade-in scheme focused on its strongest categories, including home appliances and electronics. Meanwhile, a tit-for-tat tariff escalation between the U.S. and China, followed by a temporary 90-day de-escalation, has generated widespread uncertainty for global business Temu. 'Radical change in external policy environments such as tariffs has created significant pressure for our merchants,' PDD chairman and co-ceo Chen Lei told analysts in a post-earnings call. The U.S. earlier this month slashed tariff rates for goods from China valued at under $800 entering the country under the 'de minimis' provision, a trade exemption leveraged by Temu to avoid tariffs and keep prices low. 'Our global business is working with merchants across regions to bring stable prices and abundant supply to strengthen our operations in the markets we serve,' Chen said, reiterating Temu's desire not to raise prices in the face of tariffs and its strategic shift to seeing more orders fulfilled by local merchants. PDD reported revenue of 95.67 billion yuan (US$13.3-billion) for the quarter ended March 31, compared with analysts' average estimate of 102.51 billion yuan, according to data compiled by LSEG.
CNA
15-05-2025
- Business
- CNA
Coinbase warns of up to $400 million hit from cyber attack
Coinbase forecast a hit of $180 million to $400 million from a cyber attack that breached account data of a "small subset" of its customers, sending the crypto exchange's shares down nearly 3 per cent on Thursday. The company received an email from an unknown threat actor on May 11, claiming to have information about certain customer accounts as well as internal documents. While some data including names, addresses and emails was stolen, the hackers did not get access to login credentials or passwords, Coinbase said. It will, however, reimburse customers who were tricked into sending funds to the attackers. The disclosure comes days before the company is set to join the benchmark S&P 500 index, marking a landmark moment for the crypto industry. Coinbase said hackers had paid multiple contractors and employees working in support roles outside the U.S. to collect information. It has fired those involved. "This may push the industry to adopt stricter employee vetting and introduce some reputational risks," said Bo Pei, analyst at U.S. Tiger Securities. Security remains a challenge for the crypto industry despite its growing mainstream acceptance. In February, Bybit disclosed a hack in which around $1.5 billion of digital tokens were stolen — widely dubbed the biggest crypto heist of all time. Funds stolen by hacking crypto platforms totaled $2.2 billion in 2024, according to a report from Chainalysis. "As our nascent industry grows rapidly, it draws the eye of bad actors, who are becoming increasingly sophisticated in the scope of their attacks," said Nick Jones, founder of crypto firm Zumo. Coinbase has refused to pay a ransom demand of $20 million from the attackers and is working with law enforcement agencies. It has instead established a $20 million reward for information on the hackers. The company is also opening a new support hub in the U.S., and taking other measures to prevent such cyberattacks, it said.
