PDD jumps after Q2 revenue beat despite Chinese economy slowdown
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PDD (NASDAQ:PDD) shares rose nearly 12% in pre-market trading on Tuesday after second-quarter results beat estimates.
Non-GAAP earnings per American depositary shares, or ADS, grew about 39% year-over-year to RMB10.47 ($1.44).
The Chinese e-commerce company's total revenues soared 66% year-over-year to RMB52.28B ($7.21B). Both top and bottom lines surpassed analysts estimates.
"In Q2, we seized the opportunities of favorable consumption trends and invested firmly and responsibly," said Jun Liu, VP of Finance at PDD.
Revenues from online marketing services and others increased 50% year-on-year to RMB37.93B ($5.23B), while revenues from transaction services surged 131% year-over-year to RMB14.35B ($1.98B).
The company â which owns the Temu online marketplace â had cash, cash equivalents and short-term investments of RMB179.5B ($24.8B) as of June 30, compared to RMB149.4B as of Dec. 31, 2022.
In addition, PDD appointed Ivonne Rietjens as an independent director, effective on Aug. 29. The appointment increases the total number of board members to 7, of which 4 are independent directors, according to the company.
PDD noted that Rietjens has more than 25 years of experience in food safety, and she has been a full professor at Wageningen University since 2001 and is currently head of the division of toxicology.
In addition, PDD said that it has formed a Legal and Compliance Committee, chaired by Chairman and Co-CEO Lei Chen, which replaces the General Counsel role and function, effective on Aug. 29.
Several Chinese stocks were also trading in the green during pre-market. Online entertainment services provider Bilibili (BILI) rose about 4%, internet search giant Baidu (BIDU) and online retailer JD.com (JD) climbed about 2% each, while Alibaba (BABA) shares gained around 1%.

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