Latest news with #PDDHoldings'
BusinessToday
31-07-2025
- Business
- BusinessToday
US Ends Tariff Exemption For Low-Value Packages Amid Trade Crackdown
US Port of Long Beach The United States will scrap a long-standing 'de minimis' exemption that allowed low-value shipments to enter the country without tariffs, the White House announced on Wednesday. Under an executive order signed by President Donald Trump, packages worth US$800 or less sent outside the international postal system will be subject to 'all applicable duties' starting August 29. The exemption, which fuelled a boom in cross-border e-commerce, previously enabled retailers and consumers to bypass customs duties on small shipments. 'Trump is acting more quickly to suspend the de minimis exemption than the OBBBA requires, to deal with national emergencies and save American lives and businesses now,' the White House said, referring to the recently signed One Big Beautiful Bill Act. The legislation will fully repeal the exemption worldwide in July 2027, but Trump's move accelerates the timeline. Goods sent through postal networks will face either an ad valorem duty equal to the originating country's tariff rate or a temporary fixed tariff of US$80 to US$200 for six months. The exemption's removal follows Trump's earlier actions targeting packages from China and Hong Kong. Since May, shipments from both markets have faced tariffs as high as 145%, later reduced to around 30% after a trade truce in mid-May. Low-value e-commerce, particularly from Asia, has become a major driver of air freight, accounting for 55% of China-to-US air shipments in 2024 compared to just 5% in 2018. Platforms like Shein and PDD Holdings' Temu have benefited from the previous duty-free regime. Annual de minimis shipments surged from 134 million in 2015 to over 1.36 billion by 2024, with US Customs processing more than 4 million packages daily. Air cargo volumes from Asia have already dropped 10.7% since the US ended tax-free treatment for low-value goods from China in May. Republican Senator Jim Banks welcomed the policy shift, saying, 'For too long, countries like China have flooded our markets with duty-free, cheap imports.' Reuters Related
Yahoo
28-05-2025
- Business
- Yahoo
PDD Holdings (NasdaqGS:PDD) Reports Q1 Sales Growth But Decline In Net Income
PDD Holdings recently reported significant sales growth for the first quarter of 2025, reaching CNY 95,672 million, compared to the previous year's CNY 86,812 million. Despite this increase, the company's net income and earnings per share both fell, potentially influencing the flat share price movement observed over the past month. With major indices such as the S&P 500 and the Dow Jones showing little change during the same period, PDD Holdings' financial results may have contributed to the subdued performance without significantly deviating from broader market trends. Buy, Hold or Sell PDD Holdings? View our complete analysis and fair value estimate and you decide. Find companies with promising cash flow potential yet trading below their fair value. The recent increase in PDD Holdings' sales yet decline in net income highlights a complex scenario for investor sentiment. While the sales growth to CNY 95,672 million marks a positive development, the dip in earnings and flat share price could indicate market apprehension regarding profit sustainability. Over a longer frame, PDD Holdings achieved a total return of 104.53% over three years, illustrating a favorable trajectory when compared to the recent flat share price movements. However, within the past year, PDD Holdings has underperformed the broader US market, which returned 11.3%, and the US Multiline Retail industry, which returned 12.5%. The supply chain investments and ecosystem enhancement strategies may lead to improved operational efficiencies and potential future revenue growth, consequently influencing long-term forecasts. Analysts project a 16.6% annual revenue growth over the next three years, acknowledging short-term strain on margins due to aggressive merchant support programs. Coupled with the anticipated earnings growth, this sets a foundation for the analysts' consensus target price of US$150.04, as the company's current share price of US$104.15 represents a near 30% discount to this target. The market seems to await tangible, positive outcomes from PDD Holdings' investments before fully pricing in these expectations. Upon reviewing our latest valuation report, PDD Holdings' share price might be too pessimistic. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NasdaqGS:PDD. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Time of India
28-05-2025
- 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%.
IOL News
28-05-2025
- Business
- IOL News
China's Temu owner sees profit plunge as trade tensions linger
Chinese shopping app Temu has been accused by European consumer groups of using manipulative techniques. Image: Jonathan Raa / NurPhoto / NurPhoto via AFP 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 ($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". Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad Loading 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%. AFP
Economic Times
28-05-2025
- 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%.
