Temu’s owner PDD Holdings has posted soaring profits and revenue for the first quarter ending March 31.
The Shanghai-based company saw total revenues increase 131% to ¥86bn (£9.3bn), up from ¥37bn (£4bn) in the same quarter last year.
Its operating profit surged 275% year on year to ¥26bn (£2.8bn), up from ¥6.9bn (£0.8bn).
Sales and marketing expenses amounted to ¥23bn (£2.5bn), up 44% from ¥16bn (£1.7bn), which PDD said was “mainly due to the increased spending in promotion and advertising activities”.
Temu launched as an online value marketplace in 2022 in the US and has since expanded to around 50 countries worldwide, gaining a massive customer base.
PDD vice president of finance Jun Liu said rather than focusing on short-term results, the group is prioritising “long-term value creation” and is committed to “further deepening our investments in the future”.
PDD Holdings chairman and co-chief executive Lei Chen said:“We are committed to offering a trustworthy shopping environment for our users around the world.
“We will keep focusing on growing our long-term intrinsic value through investing in initiatives that bring sustainable impacts to our communities.”
Jiazhen Zhao, executive director and co-chief executive officer, added: “This year is critical for us to deepen the execution of our high-quality development strategy.
“We will focus our efforts on improving the overall consumer experience, strengthening our supply chain capabilities, and fostering a healthy platform ecosystem.”
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