Temu-Propietary PDD sees the increase in income of the second quarter in 7% amid global challenges

The Chinese Electronic Commerce firm PDD Holdings exceeded market estimates for quarterly income on Monday, indicating a rebound in domestic demand and greater growth in its international business, despite global commercial uncertainties.

The shares of the company that quote in the United States increased almost 12% in trade prior to the market.

The Chinese government has been working to boost domestic consumption to relive a slow economy, which faces multiple pressures, including a weak real estate sector and ongoing commercial tensions with the United States.

To attract consumers, electronic commerce players such as PDD's Pinduoduo, JD.com and Alibaba have introduced pronounced discounts and promotions. While these efforts have helped stimulate demand, they have also triggered a price war between the main platforms.

PDD, which operates low -cost pinduoduo platforms in China and Temu internationally, reported revenues of 103.98 billion yuan ($ 14.53 billion) for the second quarter that ended in June, an increase of 7% compared to the previous year.

The analysts, on average, expected income of 103.34 billion yuan, according to the data compiled by LSE.

Temu is also expected to have stabilized during the quarter, with the United States and China extending a tariff truce.

The adjusted net income attributable to PDD shareholders was 32.71 billion yuan for the quarter, compared to 34.43 billion yuan a year earlier.

($ 1 = 7,1561 Yuan Renminbi Chino)