PDD Holdings beat Wall Street targets for third-quarter revenue on Tuesday, as heavy discounting boosted sales across its e-commerce platforms in China and overseas, sending its U.S.-listed shares more than 18% higher in morning trading.
PDD, formerly just known as Pinduoduo, has received a big boost from the growing popularity of its international e-commerce app Temu, which sells everything from apparel to electronics at rock-bottom prices.
Analysts expect Temu, launched late last year, to generate more than $16 billion in revenue this year.
Deep discounts ahead of the Singles Day shopping event in China also lifted demand. China retail sales in September rose 5.5%, following 4.6% growth in August.
PDD's revenue was 68.84 billion yuan ($9.62 billion) in the quarter ended Sept. 30, compared with analysts' average estimate of 54.59 billion yuan billion yuan, according to LSEG data.
The company's net income attributable to ordinary shareholders rose to 15.54 billion yuan in the third quarter, from 10.59 billion yuan a year earlier.
($1 = 7.1532 Chinese yuan renminbi)
