E-commerce company PDD Holdings Inc. (PDD.US) on Wednesday reported its revenue rose 11% year-on-year in the first quarter to 106.2 billion yuan ($15.7 billion). But its quarterly profit fell 15% year-on-year to 12.5 billion yuan, as Co-chairman Zhao Jiazhen said supply chain investments would be the company’s core strategic priority for the next decade.
PDD’s revenue from transaction services grew 20% year-on-year during the quarter to 56.3 billion yuan, overtaking online marketing services, whose revenue grew by a slower 2.5% to 49.9 billion yuan, according to its quarterly report.
PDD shares fell 10.4% to close at $86.61 on Wednesday after the announcement. The stock is down 24% this year, giving the company a price-to-earnings (P/E) ratio of just 9, well behind the 20 and 22 for rivals Alibaba (BABA.US; 9988.HK) and JD.com (JD.US; 9618.HK), respectively.
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