Latest news with #LeiChen
Malay Mail
4 days ago
- Business
- Malay Mail
Temu owner's profits plunge by nearly half as US scraps import exemptions amid China-US trade war
SHANGHAI, May 28 — Chinese e-commerce giant PDD Holdings saw net profit almost halve in the first three months of the year as the Temu owner prepared for a blistering trade war between Beijing and Washington. The Shanghai-based company said net profit came in at 14.7 billion yuan (RM8.46 billion) in the three months ending March 31, down 47 percent year on year. The drop came as the economic superpowers are locked in another bruising trade standoff that saw US President Donald Trump last month scrap a customs exemption for goods valued under US$800. The exemption was long a vital part of the business model supporting platforms offering low-cost goods like Temu. In a statement with the earnings release on Tuesday, PDD Holdings' co-chief executive Lei Chen said the company made 'substantial support merchants and consumers' and deal with 'rapid changes in the external environment'. 'These investments weighed on short-term profitability but gave merchants the room to adapt', he said, insisting they were focused on 'strengthening the (platform's) long-term health'. The firm also saw revenue growth slow for a fourth straight quarter. It said revenue in the first quarter rose 10 percent on-year to 95.7 billion yuan. But that was down on the 24 percent growth recorded in the previous three months -- and a severe drop from the 131 percent growth it saw at the start of 2024. The growth slowdown was 'expected', said PDD Holdings' vice president of finance Jun Liu, adding that the downturn was 'accelerated by the changes in the external environment'. She warned that the company's financial results 'may continue to reflect the impact of sustained investments... through uncertain times'. PDD's New York-listed depository receipts plunged more than 13 percent. As part of a detente in the tariff standoff between China and the United States, Trump signed an executive order this month that set duties on 'de minimis' items sent through the US Postal Service to 54 percent of their value, or a US$100 payment. A prior tariff had been set at 120 percent. — AFP
Time of India
4 days ago
- Business
- Time of India
China's Temu owner sees profit plunge as trade tensions linger
Chinese ecommerce giant PDD Holdings saw net profit almost halve in the first three months of the year as the Temu owner prepared for a blistering trade war between Beijing and Washington. The Shanghai-based company said net profit came in at 14.7 billion yuan ($2 billion) in the three months ending March 31, down 47% year on year. The drop came as the economic superpowers are locked in another bruising trade standoff that saw US President Donald Trump last month scrap a customs exemption for goods valued under $800. The exemption was long a vital part of the business model supporting platforms offering low-cost goods like Temu. In a statement with the earnings release on Tuesday, PDD Holdings' co-chief executive Lei Chen said the company made "substantial support merchants and consumers" and deal with "rapid changes in the external environment". "These investments weighed on short-term profitability but gave merchants the room to adapt", he said, insisting they were focused on "strengthening the (platform's) long-term health". The firm also saw revenue growth slow for a fourth straight quarter. It said revenue in the first quarter rose 10% on-year to 95.7 billion yuan. But that was down on the 24% growth recorded in the previous three months -- and a severe drop from the 131% growth it saw at the start of 2024. The growth slowdown was "expected", said PDD Holdings' vice president of finance Jun Liu, adding that the downturn was "accelerated by the changes in the external environment". She warned that the company's financial results "may continue to reflect the impact of sustained investments... through uncertain times". PDD's New York-listed depository receipts plunged more than 13%. As part of a detente in the tariff standoff between China and the United States, Trump signed an executive order this month that set duties on "de minimis" items sent through the US Postal Service to 54% of their value, or a $100 payment. A prior tariff had been set at 120%.
Economic Times
4 days ago
- Business
- Economic Times
China's Temu owner sees profit plunge as trade tensions linger
The drop came as the economic superpowers are locked in another bruising trade standoff that saw US President Donald Trump last month scrap a customs exemption for goods valued under $800. In a statement with the earnings release on Tuesday, PDD Holdings' co-chief executive Lei Chen said the company made "substantial support merchants and consumers" and deal with "rapid changes in the external environment". Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Chinese ecommerce giant PDD Holdings saw net profit almost halve in the first three months of the year as the Temu owner prepared for a blistering trade war between Beijing and Shanghai-based company said net profit came in at 14.7 billion yuan ($2 billion) in the three months ending March 31, down 47% year on drop came as the economic superpowers are locked in another bruising trade standoff that saw US President Donald Trump last month scrap a customs exemption for goods valued under $ exemption was long a vital part of the business model supporting platforms offering low-cost goods like a statement with the earnings release on Tuesday, PDD Holdings' co-chief executive Lei Chen said the company made "substantial support merchants and consumers" and deal with "rapid changes in the external environment"."These investments weighed on short-term profitability but gave merchants the room to adapt", he said, insisting they were focused on "strengthening the (platform's) long-term health".The firm also saw revenue growth slow for a fourth straight said revenue in the first quarter rose 10% on-year to 95.7 billion that was down on the 24% growth recorded in the previous three months -- and a severe drop from the 131% growth it saw at the start of growth slowdown was "expected", said PDD Holdings' vice president of finance Jun Liu, adding that the downturn was "accelerated by the changes in the external environment".She warned that the company's financial results "may continue to reflect the impact of sustained investments... through uncertain times".PDD's New York-listed depository receipts plunged more than 13%.As part of a detente in the tariff standoff between China and the United States, Trump signed an executive order this month that set duties on "de minimis" items sent through the US Postal Service to 54% of their value, or a $100 payment.A prior tariff had been set at 120%.
CNA
4 days ago
- Business
- CNA
China's Temu owner sees profit plunge as trade tensions linger
SHANGHAI: Chinese e-commerce giant PDD Holdings saw net profit almost halve in the first three months of the year as the Temu owner prepared for a blistering trade war between Beijing and Washington. The Shanghai-based company said net profit came in at 14.7 billion yuan (US$2 billion) in the three months ending Mar 31, down 47 per cent year on year. The drop came as the economic superpowers are locked in another bruising trade standoff that saw US President Donald Trump last month scrap a customs exemption for goods valued under US$800. The exemption was long a vital part of the business model supporting platforms offering low-cost goods like Temu. In a statement with the earnings release on Tuesday, PDD Holdings' co-chief executive Lei Chen said the company made "substantial investments ... to support merchants and consumers" and deal with "rapid changes in the external environment". "These investments weighed on short-term profitability but gave merchants the room to adapt", he said, insisting they were focused on "strengthening the (platform's) long-term health". The firm also saw revenue growth slow for a fourth straight quarter. It said revenue in the first quarter rose 10 per cent year-on-year to 95.7 billion yuan. But that was down on the 24 per cent growth recorded in the previous three months - and a severe drop from the 131 per cent growth it saw at the start of 2024.
Time of India
4 days ago
- Business
- Time of India
China's Temu owner reports profit drop amid rising trade tensions
Chinese e-commerce giant PDD Holdings, owner of Temu, reported a nearly 50% drop in net profit for the first quarter of 2025 as escalating trade tensions between Beijing and Washington put pressure on its business. The Shanghai-based company posted net profits of 14.7 billion yuan ($2 billion) for the quarter ending March 31, down 47% from the same period last year. This sharp decline comes amid a recent US move to end a key customs exemption for goods valued under $800, a change that directly impacts platforms like Temu that rely on low-cost imports. Earlier on Tuesday, PDD Holdings' co-chief executive Lei Chen stated in the earnings announcement that the company had made "substantial support merchants and consumers" whilst addressing "rapid changes in the external environment". He noted that "These investments weighed on short-term profitability but gave merchants the room to adapt", whilst emphasising their commitment to "strengthening the (platform's) long-term health". The company experienced a continued slowdown in revenue growth for the fourth consecutive quarter. First-quarter revenue increased by 10 percent year-on-year to 95.7 billion yuan. This growth rate showed a reduction from the 24 percent increase recorded in the previous quarter, and represented a substantial decrease from the 131 percent growth achieved at the beginning of 2024. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
