The owner of Temu and Pinduoduo earned 47% more in the third quarter

The attributable net profit of the Chinese group PDD Holdings, Owner of Pinduoduo and Temu, grew 47% in the third quarterwhich is equivalent to 15,537 million yuan (2,010.6 million euros). Sales recorded a growth of 94% compared to the same period in 2022, up to 68,840.4 million yuan (8,899.6 million euros), the company reported in a statement.

Specifically that Revenue from online marketing services They reached 39,687.7 million yuan (5,134.5 million euros), an increase of 39% compared to the same quarter of 2022; and transaction services totaled 29,152.7 million yuan (3,771.5 million euros), up 315% year-on-year.

On his part between January and Septemberthe income of the Chinese group, which does not affect the development of Temu’s business, totaled 158,758 million yuan (20,337 million euros)75% more than a year before.

«Consumption momentum continued to improve throughout the third quarter. Through greater investments, we continue to offer consumers more savings and better services“he defined Jiazhen Zhao, Co-CEO of PDD Holdings.

«We continue to invest aggressively in areas such as agricultural technology, supply chain technology and core research and development capabilities. Through these efforts we aim to create our unique value“, he emphasized for his part Corpses, Chairman and Co-CEO of PDD Holdings.

It exceeds Alibaba’s market value for the first time

The Nasdaq-listed PDD Holdings shares rose more than 15% before the start of negotiations after the publication of the results. Actually, The group closed on Thursday with a market capitalization of almost 196,000 million dollars (180,337.3 million euros).and thus exceeds the market value of its competitor for the first time Alibaba of 190,450 million dollars (175,230.9 million euros), of which a Decrease in its shares by 1.5% up to 73.7 dollars (68 euros), marking a new annual low.

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These results sparked an industry response. So much so that, according to Bloomberg, in a publication on an internal Alibaba forum, the Billionaire businessman and philanthropist Jack Ma congratulated Pinduoduo on its latest “good performance«. «The era of AI e-commerce has just begun and is an opportunity and a challenge for everyone. I firmly believe that Alibaba will change“, wrote. «Many companies have been successful, but the ones who deserve the greatest respect are those who work hard to revolutionize themselves, sacrificing today’s bread to defeat tomorrow’s hunger. Back to our mission and vision, Alibaba people, let’s get started!added Jack Ma.

In its most recent fiscal year, which ended March 31, Alibaba received one Net profit of 72,509 million yuan (9,171 million euros), which represents an increase of 17% compared to the previous year. Recently, in its latest earnings report for the second fiscal quarter (July to September), Alibaba reported a profit of 26,696 million yuan (3,392 million euros)compared to losses of 22,467 million yuan (2,853.9 million euros) recorded in the same quarter of 2022.

In addition to these numbers, the company announced this will no longer continue the spin-off of the Cloud Intelligence Group, its cloud computing arm that includes Alibaba Cloud, DingTalk and other companies, due to problems with U.S. chip exports that have made it difficult for Chinese companies to receive key supplies. According to Alibaba, «The US restrictions have created uncertainty about Cloud Intelligence Group’s prospects«. Therefore he remarked: “We believe that a complete spin-off of Cloud Intelligence Group may not achieve the desired effect of increasing shareholder value«.

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