China’s Pinduoduo swings to quarterly profit on online shopping boost
The Pinduoduo logo is seen in this illustration photo taken July 17, 2018. REUTERS/Thomas White/Illustration/File Photo GLOBAL BUSINESS WEEK AHEAD
Aug 24 (Reuters) – Chinese e-commerce platform Pinduoduo Inc (PDD.O) swung to a quarterly profit on Tuesday as people kept up their appetite for online shopping months after the easing of pandemic lockdowns.
Pinduoduo, since its founding in 2015, has grown to become a competitive player in China’s booming e-commerce space through an approach that melds social media with online shopping to offer attractive discounts.
The company’s strong results helped comfort investors at a time of tightening scrutiny by China on domestic tech firms on concerns over data privacy and anti-competitive behavior.
The interactive shopping platform posted net income attributable to ordinary shareholders of 2.41 billion yuan, compared with a net loss of 899.3 million yuan a year ago.
Total revenue was 23.05 billion yuan ($3.56 billion) in the second quarter ended June 30, above a Refintiv-IBES estimate of 26.44 billion yuan.
($1 = 6.4770 Chinese yuan renminbi)
Reporting by Chavi Mehta in Bengaluru; Editing by Ramakrishnan M.
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