Temu’s parent company, PDD Holdings, has released its Q1 2025 earnings report, revealing a significant decrease in net profit to $2.05 billion, representing a 47% drop compared to the previous year. This decline is attributed to intense competition within China and the impact of U.S. tariffs on international operations. Despite the disappointing results, the company’s online marketing services and transaction services saw growth exceeding expectations. Analysts attribute this trend to PDD Holdings’ strategic investments in the platform. 2025 Q1 saw a slower quarterly growth rate for revenue compared to earlier years. While short-term execution challenges have impacted profitability, experts believe PDD Holdings has long-term potential for success despite the current situation. 8 3, The company’s total sales and marketing expenses played a significant role in the profit shortfall, contributing to PDD’s lower than expected financial performance. 2025 Q1 saw growth slow down for several Chinese e-commerce companies, including Alibaba, Pinduoduo, and JD.com, who are all engaged in fierce price competition to attract consumers. Despite these challenges, the company remains committed to supporting its merchants by minimizing prices and ensuring a stable supply chain, particularly through the use of local vendors. 2025 Q1 saw growth slow down for several Chinese e-commerce companies, including Alibaba, Pinduoduo, and JD.com, who are all engaged in fierce price competition to attract consumers. Despite these challenges, the company remains committed to supporting its merchants by minimizing prices and ensuring a stable supply chain, particularly through the use of local vendors.