PDD Holdings, the company managing the Chinese platform Pinduoduo and the international marketplace Temu, has released its results for Q3 2025, showing a profit increase that, however, could not offset a slowdown in revenue growth and mounting risks. The adjusted earnings per share amounted to 21.08 yuan, surpassing analysts’ forecast of 16.84 yuan. Revenue grew by 9%, reaching 108.28 billion yuan, which reflects the effectiveness of PDD’s marketing efforts. However, this growth rate is significantly lower than in previous years. At FinancialMediaGuide, we note that the slowdown in revenue growth may indicate market saturation and intensifying competitive pressure amidst the current economic instability.
The growth in adjusted net profit, which reached 31.38 billion yuan (compared to 27.46 billion yuan in the same period last year), was driven by continued investments by PDD in platform development and merchant support. These efforts, according to FinancialMediaGuide, help strengthen the company’s long-term position despite the slowdown in growth and competition from giants like Alibaba and JD.com. We observe that ongoing marketing expenses and discounts remain the main tools for stimulating demand on the platform, but in the long run, the company will need to find new sources of growth.
Temu’s international expansion faces new risks. The cancellation of the de minimis exemption in the U.S., which allows duty-free import of goods valued up to $800, creates additional barriers for cheap products sold through the platform. We at FinancialMediaGuide forecast that this will lead to higher logistics costs and possibly higher product prices, which could threaten Temu’s competitiveness in key markets. Whether the company will be able to pass these additional costs onto consumers or absorb them remains uncertain and could impact future financial results.
Furthermore, increased attention from European regulators on cross-border trade and the sale of banned goods puts additional pressure on Temu. We highlight that tightening regulatory requirements globally may complicate the company’s operations and lead to higher costs. If Temu does not effectively manage these risks, it could seriously affect its reputation and profitability.
Despite these challenges, PDD maintains a strong financial position. The company’s significant liquidity reserves provide it with the ability to weather short-term market fluctuations and continue investing in its long-term strategy. We at FinancialMediaGuide believe this is a key advantage in the face of rising uncertainty in both the Chinese and international markets.
Looking ahead, we note that the upcoming quarters will be critical for PDD. The company’s resilience will depend on how it can balance its investments in ecosystem development with the need to control margins and operational efficiency. At the same time, it will be crucial to closely monitor changes in the regulatory environment and tariffs, which could significantly affect the profitability of international operations. Nevertheless, considering the current financial reserves and localization strategy, PDD remains one of the major players in the e-commerce space, though its path in the coming years will be marked by a high level of uncertainty.
For long-term-focused investors, PDD remains a promising but risky investment opportunity. We at Financial Media Guide recommend closely tracking changes in logistics service costs and international tariffs, as well as observing the company’s response to increasing regulatory control in key regions such as the U.S. and the EU. Despite the current challenges, PDD has sufficient resources to continue its growth and expansion strategy, provided it can adapt to the changing external environment.
