Temu owner PDD Holdings has posted total revenues of ¥247bn (£27bn) in the full year to December 31, nearly doubling from ¥130bn (£14.2bn) in 2022 as the ecommerce giant hailed 2023 a “pivotal” year where it saw immense growth.
The Shanghai firm, which owns the rapid-growing marketplace Temu said the surge was driven by an “increase in revenues from online marketing services and transaction services”, alongside strong end-of-year sales festivals in China, including Singles Day.
Operating profit surged 93% for the full year, hitting ¥58bn (£6.3bn), from ¥30bn (£3.3bn) in 2022 as revenues skyrocketed 123% in its fourth quarter to ¥89bn (£9.7bn) as operating profit jumped 146% to ¥22bn (£2.4bn).
The company’s reported profit surpassed analysts’ expectations, defying predictions of early-stage unprofitability for Temu.
PDD also saw a 146% surge in fourth-quarter profits, driven by transaction and marketing fees from merchants utilizing its platforms.
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PDD Holdings chairman and co-chief executive officer Lei Chen said: “2023 represents a pivotal chapter in our corporate history as we transition towards high-quality development.
“In 2024, we remain dedicated to further improving consumer experiences, enhancing technology innovations, and generating positive impacts in our communities.”
PDD Holdings executive director and co-chief executive officer Jiazhen Zhao added: “In the fourth quarter, we saw growing demand driven by encouraging consumer sentiment.
“We will continue our high-quality development strategy, stay dedicated to offer great value and exceptional service, and keep building thriving communities that can benefit all.”
Temu first launched in the US back in September 2022 before expanding to Europe and Asia and since then, the business has attracted shoppers and threatened established online players including Amazon and eBay with its ultra-cheap prices.
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