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PDD Holdings, the Chinese e-commerce operator behind Pinduoduo and Temu, has rocked both<\/a> the Chinese and U.S e-commerce sectors. And the company\u2019s bumper earnings will give established players <\/a>even more reason to sit up and take notice. <\/p>\n PDD reported<\/a> quarterly revenue that was more than double the same period the year before. Revenue for the quarter ending Dec. 31, 2023, reached 88.8 billion yuan ($12.3 billion), 123% more than the same quarter in 2022. It made a quarterly net profit of 22.4 billion yuan ($3.1 billion), up 146% from a year ago. <\/p>\n The e-commerce platform did just as well on a full-year basis. Total revenue for 2023 increased to 247.6 billion yuan ($34.4 billion,) 90% higher than the previous year. Net income rose 93% to hit 58.7 billion yuan ($8.2 billion).<\/p>\n In an earnings statement, Lei Chen, co-CEO of PDD Holdings, called 2023 a \u201cpivotal chapter in our corporate history,\u201d as Pinduoduo withstood a sluggish Chinese economy to take a larger share of the country\u2019s e-commerce market, and as budget platform Temu\u2019s popularity surged in the U.S.<\/p>\n Pinduoduo\u2019s cheaper products are winning over more value-conscious consumers<\/a> as China\u2019s economy goes through a confidence crisis. <\/p>\n Temu launched in the U.S. in September 2022 and has since expanded into Europe and Southeast Asia. Its knockdown prices, which lets you \u201cShop Like a Billionaire\u201d, is helping the platform challenge<\/a> established players like Amazon, Walmart, and Target. Temu has also spent big on advertising to promote<\/a> its brand on platforms like Google, Meta, and the Super Bowl.<\/p>\n PDD\u2019s big play for the U.S. could be expensive: Analysts say Temu is burning cash<\/a> to break into the U.S. e-commerce market. PDD does not separate its Chinese and international businesses in its earnings. <\/p>\n But Temu\u2019s tactics have come to the attention of U.S. lawmakers who said there\u2019s<\/a> an \u201cextremely high risk\u201d that products on the platform have been made with forced labor. Temu\u2019s cheaper offerings have also led to lawmakers calling on the Biden administration to crack down<\/a> on the number of packages from China that enter the country duty-free. U.S. trade law allows packages bound for consumers to enter tariff-free; the current threshold is $800 per person per day.<\/p>\n PDD is worrying China\u2019s tech executives too. Last November, Alibaba founder Jack Ma urged employees<\/a> to \u201ccorrect\u201d the company\u2019s course, and praised PDD\u2019s ability to capture market share. JD.com Richard Liu also recently urged<\/a> workers not to \u201clie flat\u201d amid greater competition.<\/p>\n<\/div>\n<\/div>\n\n