PDD Holdings Inc – ADR (NASDAQ:PDD), which owns discount e-commerce platforms Pinduoduo and Temu,  stock rose 0.038% (As on March 21, 1:38:43 AM UTC-4, Source: Google Finance) after the company missed expectations for fourth-quarter revenue as China’s post-reopening consumer recovery remains patchy. China’s total retail sales contracted 1.8% in December, while the country’s economic growth in 2022 slumped to one of its worst levels in half a century. PDD’s fast-growing international platform Temu, which was launched in September to U.S. shoppers, sells a variety of goods, from shoes, jewellery, electronics and homewares directly from Chinese merchants. Temu’s gross merchandise value – the total sales before expenses – increased to $192 million in January from $3 million in September, based on analysis from data company YipitData. Temu’s 2023 expansion will include rollouts in Canada, Australia, New Zealand and the UK.

The company had reported the adjusted revenue growth of 46 percent to 39.82 billion yuan ($5.79 billion) in the fourth quarter of FY 22, missing the analysts’ estimates for revenue of 41.01 billion yuan. Total costs of revenues were RMB31,462.3 million (US$4,561.6 million), a slight decrease of 1% from RMB31,718.1 million in 2021. Non-GAAP operating profit in the quarter was RMB11,600.1 million (US$1,681.9 million), an increase of 38% from RMB8,399.7 million in the same quarter of 2021. Non-GAAP net income attributable to ordinary shareholders in the quarter was RMB12,105.8 million (US$1,755.2 million), an increase of 43% from RMB8,444.4 million in the same quarter of 2021.

Moreover, the revenues from online marketing services and others were RMB30,965.2 million (US$4,489.5 million), an increase of 38% from RMB22,425.0 million in the same quarter of 2021. Revenues from transaction services were RMB8,796.6 million (US$1,275.4 million), an increase of 86% from RMB4,724.2 million in the same quarter of 2021. Revenues from merchandise sales were RMB58.2 million (US$8.4 million), a decrease of 29% from RMB81.7 million in the same quarter of 2021. Net cash generated from operating activities was RMB26,550.3 million (US$3,849.4 million), compared with RMB16,399.8 million in the same quarter of 2021, mainly due to the increase in net income and the changes in working capitals. Cash, cash equivalents and short-term investments were RMB149.4 billion (US$21.7 billion) as of December 31, 2022, compared with RMB92.9 billion as of December 31, 2021.