Temu parent company PDD Holdings Inc. reported an increase in sales in the third quarter.
The Chinese e-commerce group’s total sales rose by nine percent year-on-year to 108.28 billion yuan (13.2 billion euros). This was driven by continued growth in online marketing services, which generated 53.35 billion yuan. This corresponds to an increase of eight percent compared to the previous year. Transaction services rose 10 percent to 54.93 billion yuan.
Operating profit for the quarter was 25.03 billion yuan and adjusted operating profit was 27.08 billion yuan. Net profit attributable to common shareholders grew by 17 percent to 29.33 billion yuan.
Jun Liu, vice president of finance, highlighted that revenue growth has moderated as the competitive landscape evolves. Liu warned that financial results could fluctuate. The reason for this is that the company is increasing investments in the ecosystem.
Total cost of sales rose 18 percent to 46.84 billion yuan. This was due to higher expenses for fulfillment, servers and payment processing.
“In an increasingly competitive environment, we remain committed to our long-term focus,” said Jiazhen Zhao, Executive Director and Co-Chief Executive Officer of PDD Holdings. “As a public platform, we will continue to invest in merchant support initiatives to drive industry modernization and sustainable platform development in the long term.”
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