PDD Holdings, the parent company of the e-commerce platform Temu, recently released its Q2 2024 financial results, showcasing significant growth. The online platform, also selling affordable home decor, reported a rise in total revenues to SEK 138.9 billion from SEK 74.8 billion and an increase in operating profit to SEK 46.6 billion from SEK 18.2 billion. Despite these positive figures, CEO Lei Chen highlighted looming challenges due to security and quality issues.
Photo: Dreamstime.
PDD Holdings plans to invest significantly in improving platform security and supporting high-quality sellers, which may impact short-term profitability. This shift towards creating a more trustworthy and sustainable ecosystem involves substantial costs. The market reacted negatively to these changes, leading to a dramatic decline in the company's market value—PDD Holdings has lost approximately $55 billion, or about 560 billion kronor, since the report.
Source: www.ehandel.se