PDD Holdings, the Chinese company behind Temu, reported a net profit of 14.742 billion yuan ($1.799 billion) for the first quarter of 2025. That’s a 47% drop from the same period last year.
The company’s revenues reached 95.672 billion yuan ($11.677 billion), up 10% from the previous year. Online marketing services saw a 14.7% increase, hitting 48.722 billion yuan ($5.947 billion). Transaction services grew 5.8%, reaching 46.950 billion yuan ($5.730 billion).
Investing in the platform
Lei Chen, PDD Holdings’ president and co-CEO, said the company made significant investments in its platform to support merchants and consumers during a time of rapid change. These investments hurt short-term profitability but will strengthen the platform in the long run.
Jiazhen Zhao, co-CEO, emphasized the importance of supporting merchants in uncertain times. “A strong commerce ecosystem can provide satisfying shopping experiences for consumers,” Zhao said.
Looking ahead
PDD Holdings expects growth to slow as new challenges emerge. Jun Liu, vice president of finance, noted that changes in the external environment during the first quarter have accelerated this trend. The company is preparing for a more uncertain future.
- Net profit: 14.742 billion yuan ($1.799 billion)
- Revenues: 95.672 billion yuan ($11.677 billion)
- Online marketing services: 48.722 billion yuan ($5.947 billion)
- Transaction services: 46.950 billion yuan ($5.730 billion)