BUSINESS

Pinduoduo’s Growth Slows as Competition, Tariffs Hit Temu Expansion

Published: Aug. 26, 2025 2:59 a.m. GMT+8

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Pinduoduo Holdings Inc. on Monday reported its slowest revenue growth in three years, as the Chinese e-commerce giant ran into stiffer competition at home and new tariff challenges abroad for its overseas arm Temu.

The Nasdaq-listed company posted second-quarter revenue of 103.99 billion yuan ($14.5billion), just above market expectations and up 7% from a year earlier. That marked the fifth straight quarter of deceleration and the slowest pace since mid-2022.

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Pinduoduo’s Q2 2025 revenue grew 7% year-on-year to 103.99 billion yuan ($14.5 billion), marking its slowest growth since mid-2022 as competition and tariffs pressured results.
Net profit fell 4% to 30.75 billion yuan; non-GAAP profit dropped 5% but exceeded forecasts, while operating cash flow plunged 51%.
Temu's global expansion slowed due to new US tariffs; operating costs rose 36%, and the company signaled ongoing heavy investment amid industry competition.

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Who’s Who

Pinduoduo Holdings Inc.: Pinduoduo Holdings Inc. reported its slowest revenue growth in three years, with second-quarter revenue of 103.99 billion yuan, up 7% year-over-year. Net profit fell 4%. Its overseas arm, Temu, faces new tariff challenges in the US under President Donald Trump's policy changes. The company acknowledged intensified competition and short-term volatility but stressed demand remains resilient, especially from its global consumers.

Temu: Temu is an overseas arm of Chinese e-commerce giant Pinduoduo, launched in September 2022. Its global expansion significantly contributed to Pinduoduo's revenue surge, but is now facing challenges. Notably, the removal of duty-free treatment for small parcels from China by Donald Trump in May has impacted Temu's operations in the United States, as such shipments now face substantial tariffs.

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What Happened When

September 2022：: Pinduoduo launched Temu.

First quarter of 2024：: Pinduoduo's revenue surged by 131% compared to the previous year.

Second quarter of 2024：: Pinduoduo's revenue growth slowed to 86% year-over-year.

Third quarter of 2024：: Pinduoduo's revenue growth slowed further to 44% year-over-year.

Fourth quarter of 2024：: Pinduoduo's revenue growth slowed to 24% year-over-year.

Late 2024：: Pinduoduo's cash, equivalents, and short-term investments were at a level that would later be surpassed by 55.5 billion yuan by the end of Q2 2025.

First quarter of 2025：: Pinduoduo's revenue growth slowed to 10% year-over-year.

May 2025：: President Donald Trump ordered the removal of duty-free treatment for small parcels from Chinese mainland and Hong Kong; Temu faced new tariff challenges in the United States.

Second quarter of 2025：: Pinduoduo reported revenue of 103.99 billion yuan ($14.5 billion), up 7% from a year earlier, marking its slowest growth since mid-2022.

End of second quarter of 2025：: Pinduoduo's cash, equivalents, and short-term investments reached 387.1 billion yuan, up 55.5 billion yuan from late 2024.

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