PDD Holdings Inc., the owner of discount shopping platforms Pinduoduo in China and Temu overseas, reported second-quarter revenue of RMB 103.98 billion (about US$14.52 billion), a 7 percent increase that narrowly beat analysts’ estimates. Adjusted earnings per American depositary share came in at RMB 22.07 (US$3.08), comfortably ahead of market expectations. Profitability weakened despite the top-line beat. Net income slipped 4 percent year on year to RMB 30.75 billion, while operating profit fell 21 percent to RMB 25.79 billion, pulling the operating margin down 9.4 percentage points to 26.7 percent. Total costs of revenue surged 36 percent, reflecting higher fulfilment, bandwidth and payment-processing expenses tied to aggressive discounting and logistics subsidies. Finance chief Jun Liu said “revenue growth further moderated this quarter amid intense competition” and cautioned that the quarter’s profit level is “not sustainable,” with continued investment in merchant support likely to keep margins volatile. Chairman Lei Chen reiterated that management is prioritising long-term ecosystem health over short-term earnings, even as rivals Alibaba and JD.com escalate price wars at home and U.S. tariffs lift international shipping costs. Shares in PDD jumped as much as 11 percent in early U.S. trading after the release but later trimmed gains as investors weighed the margin pressure and the absence of formal guidance for the current quarter.