(Reuters) -China’s PDD Holdings missed market estimates for quarterly revenue on Monday, as frail consumer spending dented business at its domestic e-commerce platform Pinduoduo (NASDAQ:), sending the company’s shares down nearly 14% in premarket trading.
Chinese consumers have kept a tight rein on their spending, spooked by a fragile economy, persistent weakness in the property sector and high unemployment rates, hurting the country’s retail and e-commerce sectors.
While Pinduoduo’s low prices and steep discounts on everything from groceries to earphones have attracted cost-conscious shoppers, the company has been under pressure from major rivals ramping up shopping deals on their own platforms.
“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 Jun Liu, vice president of finance at PDD.
Chinese e-commerce giant Alibaba (NYSE:) missed market estimates for revenue earlier this month, pinched by weakness in domestic e-commerce sales, while JD (NASDAQ:).com’s quarterly revenue grew only 1.2%.
PDD reported revenue of 97.06 billion yuan ($13.64 billion) in the second quarter, compared with analysts’ average estimate of 100 billion yuan, according to LSEG data.
($1 = 7.1173 renminbi)
