# PDD Holdings (PDD)

Sector: E-commerce

| Field | Value |
|---|---|
| Price | $80.50 |
| Intrinsic value source | Analysts |
| Data as of | 2026-11-10 |
| Next earnings | 2026-11-18 (estimate) |

Analysts: Leaning bullish

Picks: Research only

Discount category: Well below intrinsic value

## In short

The market prices PDD Holdings for lower profits, trade and EU rule risk for Temu and China risk, and steady profit growth with a clear use for its large cash can close part of the gap over several quarters.

## Themes and gap

- Themes: China and geopolitics (china-geopolitics), Tariffs and trade (trade-tariffs), Regulation and courts (regulation-legal), Weak consumer (weak-consumer)
- Gap type: Slow (slow)
- Why: The Q3 2026 report expected around November 18, 2026 is the next test, but proof of steady profits and an end to the EU and U.S. trade questions takes several quarters.

## About

PDD Holdings runs Pinduoduo, an online marketplace in China, and Temu, an online marketplace in other countries. It earns money from online marketing services that merchants buy and from transaction services. Revenue was RMB 431.8 billion in 2025 and RMB 112.4 billion in Q2 2026. The company has its main office in Dublin, Ireland, and its main operations are in China. Lei Chen and Jiazhen Zhao are Co-Chairmen and Co-Chief Executive Officers. One American depositary share (ADS) equals four Class A ordinary shares. The company reports in Chinese renminbi (RMB).

## Thesis

The market prices PDD Holdings for lower profits, for trade and regulatory risk to Temu, and for the risks of a large Chinese company. In March 2026, management said that its investments for merchants and consumers 'will inevitably affect' financial performance, and non-GAAP net income attributable to ordinary shareholders fell 12% in 2025 and 13% in Q2 2026. Temu lost the U.S. de minimis duty exemption in 2025, and the European Commission investigates it under the Digital Services Act, where a fine can reach 6% of worldwide annual turnover. The company also holds cash, short-term investments and deposits that are much larger than all its liabilities. For the gap to close, three things must be true. Revenue must keep growing near the 8% of Q2 2026, and operating profit must keep growing, as it did by 8% in Q2 2026 after a fall of 13% in 2025. The European Commission case and U.S. trade rules must end with costs that the company can carry. The company must show how its cash helps shareholders, for example with buybacks or dividends. The Q3 2026 report, expected around November 18, 2026, gives the next test, and proof of steady profits needs several quarters. Part of the gap may stay, because tension between China and the United States can affect Temu and the listing of the shares.

## Checkpoints

- Nov 18, 2026 (estimate): Q3 2026 results: profit trend. Status: Pending. Watch: Revenue growth near or above the 8% of Q2 2026 and higher operating profit pass; a new fall in operating profit or a large regulatory charge fail.

## Balance sheet

- Cash: CN¥456.4B
- Debt: CN¥0.0M
- Net cash: CN¥456.4B

PDD Holdings has no bank loans or bonds on its balance sheet at June 30, 2026. Cash, cash equivalents and short-term investments were RMB 456.4 billion, up from RMB 422.3 billion at December 31, 2025. It also had restricted cash of RMB 77.3 billion and other non-current assets of RMB 96.4 billion, mainly time deposits and debt securities. Total liabilities were RMB 215.6 billion, mainly RMB 109.9 billion payable to merchants, RMB 76.9 billion of accrued expenses and other liabilities, and RMB 18.5 billion of merchant deposits. Lease liabilities were RMB 4.8 billion. Operating cash flow was RMB 25.7 billion in Q2 2026 and RMB 106.9 billion in 2025.

As of 2026-06-30.

Sources:

- https://www.sec.gov/Archives/edgar/data/1737806/000110465926100534/tm2623874d1_ex99-1.htm
- https://www.sec.gov/Archives/edgar/data/1737806/000110465926034813/tm269789d1_ex99-1.htm

## Dividends

PDD Holdings does not pay a dividend.

Source: company filings and market data, read on 2026-11-09.

## Recent events

- 2026-08-24: PDD Holdings reported Q2 2026 results. Revenue rose 8% to RMB 112.4 billion, and transaction services revenue rose 13%. Operating profit rose 8% to RMB 27.8 billion. Net income attributable to ordinary shareholders fell 12% to RMB 27.2 billion, after an other loss of RMB 7.4 billion that the release does not explain. Operating cash flow was RMB 25.7 billion.
- 2026-08-21: PDD Holdings said that Dr. Ivonne Rietjens, an independent director since August 2023, died in August 2026. The board said that it will review the composition of its committees.
- 2026-05-28: PDD Holdings reported Q1 2026 results. From the six-month figures in the Q2 release, Q1 revenue was about RMB 106.2 billion, up about 11%, and Q1 non-GAAP net income attributable to ordinary shareholders was about RMB 14.1 billion, down about 17%.
- 2026-03-26: PDD Holdings reported 2025 results. Revenue rose 10% to RMB 431.8 billion, operating profit fell 13% to RMB 94.6 billion and net income attributable to ordinary shareholders fell 12% to RMB 99.4 billion. Management said that its investments are firm and long-term and will affect financial performance.
- 2025-12-19: The board appointed Co-CEO Jiazhen Zhao as Co-Chairman with Lei Chen, so both men are now Co-Chairmen and Co-CEOs. Shareholders re-elected all six directors at the 2025 annual general meeting on the same day.

## Latest news and filings

- Next earnings: 2026-11-18 (expected; the company has not confirmed it)

| Filed | Form | Headline | Period end | XBRL document | Link |
| --- | --- | --- | --- | --- | --- |
| 2026-04-29 | 20-F | Annual report for the period ended Dec 31, 2025 | 2025-12-31 | pdd-20251231x20f | https://www.sec.gov/Archives/edgar/data/1737806/000110465926050727/pdd-20251231x20f.htm |
| 2025-04-28 | 20-F | Annual report for the period ended Dec 31, 2024 | 2024-12-31 | pdd-20241231x20f | https://www.sec.gov/Archives/edgar/data/1737806/000141057825000951/pdd-20241231x20f.htm |

Every filing on SEC EDGAR (CIK 1737806): https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001737806&type=&dateb=&owner=include&count=40

## Risks

- High: In July 2025, the European Commission preliminarily found Temu in breach of the Digital Services Act duty to assess the risk of illegal products. A final decision can bring a fine of up to 6% of worldwide annual turnover and orders to change the platform.
- High: The United States ended the de minimis duty exemption for imports from China and Hong Kong on May 2, 2025, and for all countries on August 29, 2025. Tariffs and customs rules raise the cost of goods that Temu ships to the United States.
- Medium: Competition in Chinese e-commerce is strong, and PDD spends more to support merchants and consumers. Sales and marketing expenses rose to RMB 29.7 billion in Q2 2026 from RMB 27.2 billion a year earlier. Profits can stay lower for longer than investors expect.
- Medium: The main operations are in China, and the shares trade in the United States as ADSs. Tension between China and the United States can bring new rules on trade, data or listings.
- Low: PDD reports in renminbi, and the ADS trades in U.S. dollars. A weaker renminbi lowers the dollar value of its earnings and cash.

## Links

- Page: https://picks.utilarium.app/company/PDD/
- History of changes: https://picks.utilarium.app/company/PDD/history/
- JSON with full history: https://picks.utilarium.app/data/company/PDD.json

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