Chinese e-commerce discounter PDD Holdings (PDD.O) on Monday reported an 8% rise in second-quarter revenue, missing market estimates, hampered by price competition at home and regulatory challenges abroad.
The operator of Pinduoduo in China and Temu elsewhere reported revenue of 112.36 billion yuan ($16.71 billion) for the three months through June 30, versus analysts' average estimate of 116.35 billion yuan, according to data compiled by LSEG.
Pinduoduo competes with Alibaba's (9988.HK) Taobao and Tmall, JD.com and ByteDance-owned Douyin, the Chinese version of TikTok, through discounts, subsidies and merchant incentives.
However, weak consumer confidence, job security concerns and a prolonged property market downturn have pushed shoppers toward essential and lower-priced goods, intensifying price competition and weighing on profit margins.
Even during this year's 618 shopping festival, one of China's biggest online sales events, consumers remained cautious, limiting spending growth despite weeks of promotions.
To lower fulfilment costs and improve value for shoppers, PDD has also increased investment in logistics and merchant support programs.
Net income attributable to ordinary shareholders fell 12% to 27.2 billion yuan in the reported quarter.
($1 = 6.7225 Chinese yuan renminbi)
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