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China’s Pinduoduo shares soared nearly 9% after posting better-than-expected Q1 revenue as more people shopped online due to the resurgence of new COVID-19 cases.
Source: Pinduoduo
PDD up +8.80%, BABA down -1.01%, Pre-market trading
Pinduoduo’s total revenue jumped 7% to 23.79 billion yuan ($3.55 billion) in the first quarter, compared with estimates of 20.61 billion yuan.
Pinduoduo’s business model to offer greater discounts to customers has helped to attract consumers with lower disposable income, more so in lower-tier cities.
The company’s net income attributable to ordinary shareholders came in at 2.6 billion yuan in Q1, compared with a loss of 2.91 billion yuan a year ago.
Chinese government enforced COVID-19 control measures continue to hamper logistics in China, limiting e-commerce sellers’ ability to deliver purchases.
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