Shares of PDD Holdings Inc. rose 1% in premarket trading on Monday after the Chinese e-commerce company reported second-quarter results that exceeded analyst expectations on adjusted earnings per American depositary share (ADS) while posting a decline in net income.
The NASDAQ-listed firm said adjusted earnings per ADS came in at RMB19.33 ($2.85), above the RMB18.35 consensus estimate compiled by Refinitiv. Revenue totaled RMB112.4 billion ($16.6 billion), an 8% increase from RMB104.0 billion in the same period last year, though slightly below the RMB113.9 billion forecast.
Transaction services revenue, a key driver of growth, climbed 13% to RMB54.7 billion. Adjusted operating profit rose 5% year-over-year to RMB29.1 billion ($4.3 billion), while adjusted net income attributable to ordinary shareholders fell 13% to RMB28.5 billion ($4.2 billion), down from RMB32.7 billion in the prior-year quarter.
Operating expenses increased 13% to RMB36.6 billion, driven by higher sales and marketing spending, which rose to RMB29.7 billion from RMB27.2 billion a year earlier. Operating cash flow strengthened to RMB25.7 billion, up from RMB21.6 billion in the second quarter of 2025.
Jun Liu, vice president of finance at PDD Holdings, emphasized the company's focus on ecosystem investments during the quarter. "We stepped up our ecosystem investments in the second quarter. At this stage, our priority is helping merchants thrive and strengthening the broader industry ecosystem," Liu said. "We will continue to focus on these fundamentals to drive the platform's sustainable development over the long term."
