Temu-owner PDD Holdings reported fourth-quarter revenue of 123.9 billion yuan ($17.96B), narrowly missing analyst estimates of 124.4 billion yuan, with net income falling 11% year-over-year to 24.5 billion yuan and adjusted profit per ADS of 17.69 yuan coming in well below the 20.76 yuan consensus. Temu’s direct-from-China model faces mounting headwinds as the U.S. scrapped duty-free exemptions on parcels under $800 last year, the EU is set to end its duty-free allowance on sub-150 euro parcels in July, and the platform has faced raids and investigations in Ireland, Turkey, and Nigeria. U.S.-listed PDD shares rose more than 7% after the results, following signals from Chinese regulators and state media that the domestic price war may be coming to an end.
