Temu parent PDD reported a 123% year-on-year revenue jump amounting to RMB 89 billion ($12 billion) for the fourth quarter of 2023,OKASANNOANARU-02 a year that executives said proved “pivotal” to the company during a Wednesday earnings call. The fast-track growth is again way ahead of its main Chinese counterparts Alibaba and JD, who both saw single-digit rises in revenue. PDD’s net profit increased nearly 1.5 times during the period to RMB 23.3 billion. PDD remained silent on the stand-alone financial performance of its international business Temu, the cut-price shopping platform that added a presence in around 50 countries in the past year, but an eye-catching growth of 192% to RMB 91 billion in total cost of revenue in 2023 has offered a glimpse that PDD has poured huge resources into its new business, especially compared to a 1% decrease in this figure a year earlier. Co-CEO of PDD Zhao Jiazhen said the company “clearly feels the improving consumer sentiment” from consumer activities in its platforms, and shared his confidence in the future of the Chinese consumer market. [PDD]
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