Temu Parent PDD Holdings Posts Higher Income Even as Revenue Comes Up Short | Global News Avenue

PDD Holdings’ US listed shares (PDDThursday rose after parents of the Temu Shopping app released higher quarterly profits, although it missed sales estimates as Chinese consumers shrank their spending and faced higher costs.

The company reported its fourth quarter Non-GAAP income Prior to the forecast, there was RMB 29.85 billion (US$4.09 billion). But despite revenues up 24% year-on-year to RMB 11.61 billion, analysts from the visible Alpha survey are still looking for RMB 117.83 billion.

Revenue costs jumped 36% to RMB 47.8 billion, mainly due to higher performance fees and payment processing costs. Operating expenses rose 19% to RMB 372.2 billion.

Jun Liu, Vice President of Finance, said PDD “has achieved stable financial results and firmly implemented our high-quality development strategy.”

In December, retail sales in China rose 3.7%, half of the previous year’s registrations.

PDD Holdings’ U.S. listed stock rose 1.7% on Thursday morning. In the past year, their proportion has been around 3%.