Pinduoduo’s parent company,Sisters Sex Scandal PDD, reported a 66% increase in revenue to RMB 52.3 billion ($7.21 billion) for the quarter ending in June. The company attributed this growth to “a positive shift” in consumer sentiment. This surge in revenue allowed PDD to outperform its Chinese counterparts, with Alibaba experiencing a 12% rise and JD seeing a 4.85% increase in domestic retail business. Notably, earnings from online marketing and transaction services showed impressive growth of 50% and 131%, respectively. However, PDD’s expenses on sales and marketing also increased by 50% year-on-year to RMB 17.5 billion in the second quarter, largely due to investments in promotion and advertising activities. Zhao Jiazhen, co-CEO of PDD, emphasized the company’s close alignment with the overall consumption market. He stated that the quarterly revenue growth is “inseparable” from the implementation of various pro-consumption support measures. During the relevant earnings call, the company mentioned Temu, indicating that they are not currently focused on the financial metrics of the rapidly expanding operation. Instead, they prioritize creating unique value. The net income of the Nasdaq-listed company rose by 47% from the previous year to RMB 13.1 billion during the period. [PDD]
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