This article is from the source 'bbc' and was first published or seen on . The next check for changes will be
You can find the current article at its original source at https://www.bbc.com/news/articles/c5yxzqdq2qqo
The article has changed 3 times. There is an RSS feed of changes available.
| Version 1 | Version 2 |
|---|---|
| Temu owner's shares slump as China slowdown hits sales | |
| (about 2 hours later) | |
| US-listed shares of the e-commerce giant fell nearly 11% on Thursday following the announcement | US-listed shares of the e-commerce giant fell nearly 11% on Thursday following the announcement |
| PDD Holdings, the Chinese owner of online shopping platforms Temu and Pinduoduo, has reported disappointing sales and profit as Chinese consumers continued to hold back amid an economic slowdown. | PDD Holdings, the Chinese owner of online shopping platforms Temu and Pinduoduo, has reported disappointing sales and profit as Chinese consumers continued to hold back amid an economic slowdown. |
| US-listed shares of the e-commerce giant fell nearly 11% on Thursday following the announcement. | US-listed shares of the e-commerce giant fell nearly 11% on Thursday following the announcement. |
| It comes after PDD's main rivals in its home market, Alibaba and JD.com, also posted underwhelming results in the September quarter. | It comes after PDD's main rivals in its home market, Alibaba and JD.com, also posted underwhelming results in the September quarter. |
| Consumer confidence in China has taken a hit from a crisis in the country's property sector and high levels of youth unemployment. | Consumer confidence in China has taken a hit from a crisis in the country's property sector and high levels of youth unemployment. |
| In the quarter that ended in September, PDD's revenue reached 99.35bn yuan ($13.7bn, £10.9bn), below analyst forecasts of around 102.8bn yuan. | In the quarter that ended in September, PDD's revenue reached 99.35bn yuan ($13.7bn, £10.9bn), below analyst forecasts of around 102.8bn yuan. |
| It is the second quarter in a row that PDD misses analyst estimates, after years of fast growth. | It is the second quarter in a row that PDD misses analyst estimates, after years of fast growth. |
| “Our topline growth further moderated quarter-on-quarter amid intensified competition and ongoing external challenges,” said Jun Liu, VP of Finance of PDD Holdings. | “Our topline growth further moderated quarter-on-quarter amid intensified competition and ongoing external challenges,” said Jun Liu, VP of Finance of PDD Holdings. |
| While PDD's Chinese e-commerce platform, Pinduoduo, has become popular because of its focus on low-cost and heavily discounted products, a growing number of rivals have been adopting similar strategies, triggering a price war. | While PDD's Chinese e-commerce platform, Pinduoduo, has become popular because of its focus on low-cost and heavily discounted products, a growing number of rivals have been adopting similar strategies, triggering a price war. |
| “China’s retail sector is grappling with headwinds from the broader economic slowdown, with consumer confidence yet to fully recover, ” said James Yang, a partner in retail and consumer products at management consulting firm, Bain & Company. | “China’s retail sector is grappling with headwinds from the broader economic slowdown, with consumer confidence yet to fully recover, ” said James Yang, a partner in retail and consumer products at management consulting firm, Bain & Company. |
| “Looking ahead, e-commerce growth is expected to continue… albeit at a slower pace.” | “Looking ahead, e-commerce growth is expected to continue… albeit at a slower pace.” |
| Meanwhile, PPD's thriving global e-commerce platform, Temu, is also facing problems overseas. | Meanwhile, PPD's thriving global e-commerce platform, Temu, is also facing problems overseas. |
| "There’s uncertainty on potential tariff change and increasing pushback from more countries related to its 'cheap' prices," said Alicia Yap, an equity research analyst at Citi, before the results were announced. | "There’s uncertainty on potential tariff change and increasing pushback from more countries related to its 'cheap' prices," said Alicia Yap, an equity research analyst at Citi, before the results were announced. |
| Last week, Vietnamese authorities said Temu and Shein needed to register with the government before the end of the month or face a ban. | Last week, Vietnamese authorities said Temu and Shein needed to register with the government before the end of the month or face a ban. |
| In October, Indonesia ordered Google and Apple to remove Temu from their app stores in a bid to protect the country's own retailers. | In October, Indonesia ordered Google and Apple to remove Temu from their app stores in a bid to protect the country's own retailers. |
| The EU has also launched an investigation into whether the Chinese e-commerce platform facilitated the sale of illegal products that could lead to steep fines. | The EU has also launched an investigation into whether the Chinese e-commerce platform facilitated the sale of illegal products that could lead to steep fines. |
| And, in the US, President-elect Donald Trump has vowed to raise tariffs on imports of Chinese goods, potentially removing Temu's competitive advantage by driving up prices of its super-cheap products. | And, in the US, President-elect Donald Trump has vowed to raise tariffs on imports of Chinese goods, potentially removing Temu's competitive advantage by driving up prices of its super-cheap products. |