Wednesday, 28 May, 2025

PDD Holdings' Profits Plunge 47% Amid Intensifying U.S.-China Trade Tensions

PDD Holdings, the parent company of budget e-commerce platform Temu, reported a 47% year-on-year decline in net profit to 14.7 billion yuan ($2 billion) for Q1 2025. The downturn follows U.S. President Donald Trump's revocation of the $800 de minimis import exemption, a critical component of Temu's low-cost model. Despite a 10% revenue increase to 95.7 billion yuan, growth decelerated sharply from previous quarters. PDD's U.S.-listed shares dropped over 13% post-announcement.