PDD Holdings Misses Revenue Estimates on Weak Demand
PDD reported first-quarter revenue of 106.23 billion yuan, missing analyst estimates. Net income fell 15 percent amid soft demand and rising research costs.
PDD HOLDINGS INC reported first-quarter revenue of 106.23 billion yuan, missing the 109.33 billion yuan analyst estimate. A property crisis in China weighed on domestic consumer spending, causing the first-quarter revenue miss. The results signal that even discount leaders are losing immunity to the prolonged slowdown in Chinese retail demand.
Shares of the e-commerce group fell more than 5% in United States premarket trading. Net income attributable to ordinary shareholders dropped 15% to 12.5 billion yuan compared to the previous year. PDD attributed the profit decline to higher research and development costs and increased payment processing fees.
