PDD Holdings Inc (NASDAQ:PDD) stock rose 0.93% (As on November 29, 11:49:04 AM UTC-4, Source: Google Finance) after the company reported a stronger-than-anticipated doubling in revenue, as hit shopping app Temu ramped up discounts and marketing to grab consumers from Shein and Amazon.com Inc. PDD, home to Chinese online discount retailer Pinduoduo as well as cross-border platform Temu, has received a big boost from the growing popularity of its international e-commerce arm, which is known for selling $4 earphones and $15 hoodies. The analysts expect Temu, launched in September last year, to generate more than $16 billion in revenue this year. Since launching in the U.S., Temu is now available in 48 countries, including across Europe and the Middle East, as well as South East Asia and Australia. PDD’s net income attributable to ordinary shareholders rose to 15.54 billion yuan in the third quarter, from 10.59 billion yuan a year earlier. The company’s operational efficiency is further underscored by its operating profit, which saw a 60% year-over-year increase, reaching RMB 16.66 billion (approximately $2.28 billion). This robust profit growth indicates PDD Holdings’ successful execution of its strategic initiatives and ability to maintain a strong competitive edge in the market.

PDD in the third quarter of FY 23 has reported the adjusted earnings per share of RMB 10.60 ($1.45) per ADS, beating the analysts’ estimates for the adjusted earnings per share of RMB 8.94. The company had reported the adjusted revenue growth of 94 percent to 68.84 billion yuan ($9.62 billion)  in the third quarter of FY 23, beating the analysts’ estimates for revenue of 54.59 billion yuan, according to LSEG data. Online marketing services and transaction services, which surged 39% and 315%, respectively, drove the rise in revenue.

While PDD’s focus will continue to be value for consumers, he added, it is also focussing on high quality to increase trust in PDD’s platforms so consumers feel comfortable buying a wider range of goods. Though the retail market in China was initially expected to bounce back strongly when strict COVID-19 curbs were lifted, Chinese consumers have remained cautious as the country faces more headwinds, including a property market downturn and record youth unemployment.

In addition, the company has collaborated with over 100 Chinese national brands to launch the National Group Festival in partnership with CCTV more than 50 top Chinese brands, such as Shanghai Soap, [361, Cofinix, and Arke] were invited to live streaming sessions hosted on the RMB 10 billion program to showcase their products and tell their brand stories to a nationwide audience.