PDD Q3 2025: Domestic Growth Resilience & Temu's Global Expansion Challenges

Domestic Performance: Slow Revenue Growth vs. Healthy Order Volume
PDD reported Q3 2025 revenue of 1082.8 billion yuan, a 9% YoY increase, with online marketing services (533.5B yuan, +8% YoY) and transaction services (549.3B yuan, +10% YoY) as key segments. Despite revenue slowdown, order volume grew over15% YoY, primarily from essential goods categories. The gap between revenue and order growth was attributed to essential goods deflation (CPI decline) and smart coupon subsidies, which temporarily reduced average order value [1].

Temu’s Global Expansion: Growth Engine with Profitability Risks
Temu emerged as a critical growth driver, contributing to transaction service revenue growth. It recorded 5.3 billion global monthly active users and over12 billion cumulative downloads. Market diversification progress: U.S. market share dropped from26% to16%, with Latin America and Europe becoming core growth regions. However, the U.S. decision to cancel duty-free treatment for packages under $800 poses a significant profitability challenge, and long-term盈利 paths remain unclarified [1].

Valuation & Investment Outlook
PDD’s robust net cash position supports its subsidy strategies and global expansion. Current valuation is at a historical low, with attractive forward PE ratios, indicating potential investment value [1].