(Reuters) – PDD Holdings beat first-quarter revenue estimates on Wednesday, powered by strong adoption of its international shopping site, Temu, and as Chinese domestic discount e-commerce platform Pinduoduo (NASDAQ:) attracted more price-conscious customers.
Consumers in China have preferred less expensive shopping platforms such as Pinduoduo and Bytedance’s Douyin at a time when a prolonged property sector downturn and rising local debt weighed on the country’s economic growth.
Temu, the sister app of Pinduoduo, sells a wide variety of products, many of them made in China, for rock-bottom prices. Since launching in September 2022, its popularity has grown as has competition with e-commerce incumbents such as Shein and Amazon (NASDAQ:) in the United States and other markets.
Competitors Alibaba (NYSE:) and JD (NASDAQ:).com last week reported revenue that beat market expectations and said they expect consumer confidence to tick higher this year.
The company’s revenue was at 86.81 billion yuan ($11.99 billion) in the first quarter, compared with analysts’ average estimate of 75.66 billion yuan, according to LSEG data.
PDD’s net income rose to 28 billion yuan from 8.1 billion yuan a year ago.
($1 = 7.2396 renminbi)