(Reuters) – PDD Holdings beat first-quarter revenue estimates on Wednesday thanks to strong rollout of international shopping site Temu and domestic discount e-commerce in China. Pinduoduo (NASDAQ:) has attracted more price-conscious customers.
Consumers in China have favored less expensive trading platforms such as Pinduoduo and Bytedance’s Douyin at a time when a prolonged slowdown in the real estate sector and rising local debt have weighed on the country’s economic growth.
Temu, a sister app of Pinduoduo, sells a wide range of products, many of which are made in China, at rock-bottom prices. Since its launch in September 2022, its popularity has grown, as has competition from e-commerce players such as Shein and Amazon (NASDAQ:) in the US and other markets.
Competitors Alibaba (NYSE:) and JD (NASDAQ:).com last week reported earnings that beat market expectations and said they expect consumer confidence to improve this year.
The company reported first-quarter revenue of 86.81 billion yuan ($11.99 billion), compared with analysts’ average estimate of 75.66 billion yuan, according to LSEG.
PDD’s net profit rose to 28 billion yuan from 8.1 billion yuan a year ago.
($1 = 7.2396 yuan)