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Investors are reacting enthusiastically to the quarterly results of Temu's parent company Pinduoduo. The stock rose 23 percent in recent days to its highest price ever.

Earlier this week, the Chinese company published financial figures(PDF) for the third quarter of the year. And they did not disappoint.

Group sales rose 94 percent to 8.9 billion euros. Just over half of that, 4.5 billion euros, comes from marketing services that third parties can buy on Pinduoduo's trading platforms. The big grower, however, is the transactional arm, revenue from trading on the marketplace itself.

The name Pinduoduo is not very well known in the West. In fact, that trading platform, similar to Alibaba Group's, operates in its Chinese home market. In the Netherlands, we have known the company since March 2023 from its app Temu, a kind of Shein of AliExpress. It is a marketplace that brings supply and demand together and earns money from brokerage and marketing services.

Revenue from trading activities in China and abroad rose a whopping 315 percent last year to four billion euros. And that only seems to have started it given the popularity of Temu and Shein-like products.

Analysts think Temu will help realize sixteen billion dollars in sales this year.

On net, the owners of PDD Holdings pocketed two billion euros in profits over the three months of summer. An outlook for the year-end period was not given.

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