Total revenue for the quarter amounted to 106.2 billion yuan (approximately 145 billion SEK). This represents an increase of 11 percent compared to 95.7 billion yuan during the same quarter in 2025. However, revenue did not reach the average analyst estimates of 109.33 billion yuan according to data from LSEG.
Operating income for the quarter amounted to 19.6 billion yuan (approximately 27 billion SEK), an increase of 22 percent compared to the same period last year.
Increased Competition
The decline in net profit is partly a result of increased expenses related to investments in the company's supply chains. PDD Holdings is also facing challenges in the Chinese domestic market where consumer purchasing power has been dampened by concerns about the real estate crisis, wage development and employment.
The company is simultaneously facing high competition from players such as JD.com, Alibaba and ByteDance's platform Douyin, which have introduced extensive campaigns to attract customers.
Internationally, the subsidiary Temu continues to grow, but the company's business model of direct shipping of low-price goods from China is facing increased regulatory scrutiny. Something Ehandel.se has reported on countless times.
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Strategic Investments
As part of strengthening its market position, PDD announced in March that it intends to invest 100 billion yuan (approximately 136 billion SEK) over the next three years to build a proprietary brand under the name Xinpinmu. This initiative is intended to integrate Pinduoduo's resources with Temu.
In connection with the report, the company's management announced that these investments will continue.
As we enter the next decade of our journey, supply chain investments will be our central strategic priority, said Jiazhen Zhao, co-CEO of PDD Holdings.
We will allocate significant resources to building out the first-party business for brands.