Overview
- PDD, which reported results Wednesday, lifted revenue 12% to RMB123.9 billion as net income fell 11% to RMB24.5 billion.
- Wall Street expected about $18 billion in sales and $3.03 in adjusted EPS, versus $17.7 billion and $2.53 reported, even as ADRs edged higher after the release.
- Costs climbed faster than sales, with cost of revenue up roughly 15% on higher fulfillment, server and payment fees and operating expenses up about 10% on marketing and R&D.
- Executives said 2026 starts a long reinvestment phase focused on supply chains and a Hundred Billion Support Program for merchants, supported by RMB422.3 billion in cash.
- Temu’s cross‑border model faces tighter rules as the U.S. ended duty‑free treatment for small parcels last year and the EU plans a July 2026 cutoff, with recent probes in Ireland, Turkey and Nigeria raising compliance demands.