PDD says stiff competition will weigh on revenue growth
Will invest to build trust in platform
Plans to support higher quality merchants

Aug 26 Reuters China39;s PDD Holdings missed market estimates for quarterly revenue on Monday, as reduced consumer spending dented business at its domestic ecommerce platform Pinduoduo, sending the company39;s shares down more than 25 in early trade.

A fragile economy, persistent weakness in the property sector and high unemployment rates, have led Chinese consumers to cut back on purchases, damaging the country39;s retail and ecommerce sectors.

While Pinduoduo39;s low prices and steep discounts on anything from groceries to earphones have attracted costconscious shoppers, major rivals have also offered heavy promotions on their own platforms, piling competitive pressure on PDD.

Looking ahead, revenue growth will inevitably face pressure due to intensified competition and external challenges… Profitability will also likely be impacted as we continue to invest resolutely, said PDD39;s vice president of finance Jun Liu.

PDD said it would invest heavily in the platform39;s trust and safety, and adopt policies to provide support for highquality merchants, while tackling lowquality ones.

We are prepared to accept shortterm sacrifices and potential decline in profitability, said Chairman and CoCEO Chen Lei. While encouraged by the solid progress we made in the past few quarters, we see many challenges ahead.

M Science analyst…