PDD Holdings Q4 revenue jumps on low-price strategy

Photo credit: Pinduoduo

Nasdaq-listed PDD Holdings’ fourth-quarter revenue for FY2022 came in at US$5.8 billion, up 46% from a year ago.

Meanwhile, the operating profit of Pinduoduo’s parent firm shot up 32% year on year to US$1.3 billion in the quarter. It logged a Q4 net income of US$1.4 billion – a 38% uplift from last year.

However, the group’s total operating expenses ballooned over 57% to US$3.2 billion. Of that, US$2.6 billion went into sales and marketing expenses, which climbed 56%.

PDD Holdings owns and operates a portfolio of businesses, including Pinduoduo and Temu, an online marketplace that has been shaking grounds globally as the most notable rival to fast-fashion firm Shein.

Shares of PDD recently surged to a record high as the ecommerce giant continues to conquer China’s low-price segment. This competitiveness has prompted rival JD.com to launch a US$1.4 billion discount campaign.

See also: Why SEA should watch out for Shein’s top rival Temu

For the full year, PDD’s operating profit was US$4.4 billion, a massive 341% leap.

Total annual revenue stood at US$18.9 billion, a 39% jump compared to 2021. Operating expenses for the year also went up 24% to US$10 billion.