US EditionTemu's Chinese owner sees profits plunge as tariff war bites
- PDD Holdings, the parent company of Temu, experienced a 47% decline in net profit for the first quarter, which amounted to 14.74 billion yuan , amid ongoing trade tensions in early 2025.
- This profit decline followed a US-China tariff escalation and a temporary 90-day tariff de-escalation that caused widespread uncertainty for PDD’s international and domestic operations.
- PDD faced intense local competition, slower domestic consumption, and global trade frictions, with Temu leveraging the de minimis tariff provision to keep prices low despite these challenges.
- Mscience analyst Vinci Zhang explained that PDD’s significant profit shortfall was driven by an operating margin that fell short of expectations, a situation probably influenced by U.S. Tariffs, while the company’s shares declined by over 17% following the earnings announcement.
- The results suggest ongoing pressure from radical changes in external policies, prompting PDD and Temu to support merchants, maintain stable prices, and shift toward local order fulfillment amid market uncertainty.
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PDD Holdings Endures Substantial Profit Loss in Q1 2025 - Real News Now
PDD Holdings, the renowned e-commerce entity from China experienced a significant drop in its net earnings during the initial quarter of 2025, with profits almost halving. The company, notoriously recognized as the proprietor of Temu, geared up to weather the storms of a fresh trade confrontation between the global economic powers, United States and China. Reportedly the net profit of the Shanghai-headquartered firm was 14.7 billion yuan (equiva…
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Leaning Left5Leaning Right9Center8Last UpdatedBias Distribution41% Right
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R 41%
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