$PDD PDD Holdings Inc Deep Dive and 2024 outlook

Is the growth in TEMU going to help offset the slow growth in eCommerce in China?

PDD Holdings Inc., Pinduoduo Inc., PDD 0.00%↑ is a commerce group that operates a portfolio of businesses with a focus on integrating social media and e-commerce to create a unique shopping experience. The company's business model is centered around a social commerce platform that encourages users to engage in group buying, where they can share product information on social networks and form teams to purchase items at discounted prices. This model allows PDD Holdings to aggregate large volumes of orders quickly, benefiting both consumers with lower prices and sellers with economies of scale.

Financially, PDD Holdings has shown robust performance. In the third quarter of 2023, the company reported total revenues of RMB 68.84 billion (approximately USD 19.44 billion), marking a 94% increase from the same quarter in the previous year. The company's net income for the same period was RMB 15.54 billion (approximately USD 2.13 billion), reflecting a strong profitability trend.

PDD Holdings has also been expanding its reach beyond China, with its overseas e-commerce business, Temu, experiencing rapid growth and contributing to the company's revenue.