20/05/2024 4:26 PM

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China’s Pinduoduo Swings to Quarterly Profit on Online Shopping Boost

Pinduoduo app. Shutterstock.

Chinese e-commerce platform Pinduoduo Inc swung to a quarterly profit on Tuesday as people kept up their appetite for online shopping months after the easing of pandemic lockdowns.

Pinduoduo, since its founding in 2015, has grown to become a competitive player in China’s booming e-commerce space through an approach that melds social media with online shopping to offer attractive discounts.

The company’s strong results helped comfort investors at a time of tightening scrutiny by China on domestic tech firms on concerns over data privacy and anti-competitive behaviour.

The interactive shopping platform posted net income attributable to ordinary shareholders of 2.41 billion yuan ($372.1 million), compared with a net loss of 899.3 million yuan ($138.8 million) a year ago.

Total revenue was 23.05 billion yuan ($3.56 billion) in the second quarter ended June 30, above a Refintiv-IBES estimate of 26.44 billion yuan.

Reporting by Chavi Mehta in Bengaluru; Editing by Ramakrishnan M.

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