PDD Holdings reported second-quarter revenue of RMB 103.98 billion (US$14.5 billion), edging past analysts’ estimates and rising 7 percent from a year earlier. Net income slipped 4 percent to RMB 30.75 billion, while operating profit fell 21 percent as the Chinese e-commerce group poured money into subsidies and logistics to defend market share against domestic rivals. The company’s adjusted earnings came in at RMB 22.07 per American depositary share, comfortably ahead of the RMB 15.50 consensus, but the operating margin narrowed to 26.7 percent from 36.0 percent a year ago. Costs of revenue jumped 36 percent on higher fulfilment, bandwidth and server expenses, underscoring management’s push to support merchants through a multibillion-yuan investment programme. PDD ended June with RMB 387.1 billion (US$54 billion) in cash and short-term investments. Chairman and Co-CEO Lei Chen warned that the quarter’s profitability “is unlikely to be sustained,” adding that revenue growth has moderated and that continued spending will weigh on near-term results. Vice-President of Finance Jun Liu said intense competition and an uncertain external environment will keep earnings volatile. Separately, Temu, PDD’s budget shopping app aimed at overseas consumers, has resumed direct shipments from China to U.S. customers after a recent trade truce between Washington and Beijing, the Financial Times reported. The move is expected to restore the platform’s U.S. logistics model and coincide with a ramp-up in advertising outlays. PDD’s Nasdaq-listed shares swung sharply on the results—initially climbing as much as 11 percent before surrendering most of the gains—as investors weighed the stronger-than-expected topline against management’s caution on future profitability.