Views: 0 Author: Site Editor Publish Time: 2025-11-26 Origin: Site
PDD’s Q3 revenue reached 108.3 billion yuan, with operating profit up 1% year-on-year to 27.1 billion yuan.
Net profit increased 14% year-on-year to 31.4 billion yuan, ending several consecutive quarters of decline.
Temu’s corresponding transaction commission income hit 50 billion yuan this quarter, with a single-quarter GMV of 168 billion yuan (24 billion US dollars) and a cumulative GMV of over 420 billion yuan (60 billion US dollars) in the first three quarters. The full-year target is set at 630-665 billion yuan (90-95 billion US dollars).
Behind these impressive figures, the most watched signal is that Temu’s profitability has reached the long-awaited inflection point.
Despite disagreements among Goldman Sachs, Morgan Stanley, and Citigroup on PDD’s valuation target, they are highly unified in their core judgment: all maintain a "Buy" rating and confirm that Temu’s profit inflection point is initially established. Morgan Stanley further predicts that Temu could achieve profitability as early as 2025, with enormous GMV growth potential—expected to reach 130 billion US dollars by 2030. Its global expansion prospects continue to be optimistic.
Merchant Side: Added an N-level rating mechanism, classified by core indicators such as on-time delivery rate. Grade S merchants receive resources like increased inventory support and new product traffic incentives, while Grade C merchants face withdrawal restrictions—forcing improved fulfillment efficiency through hierarchical management.
Logistics Side: Temu promoted a semi-managed model in the US market, cooperating with hundreds of high-quality overseas warehouses. Sellers using "TEMU Partner Warehouses" gain time efficiency labels, traffic tilt, fulfillment guarantees, liability exemptions, and cost reductions—enhancing user experience while reducing operational costs.
Additionally, facing US tariff pressures, the semi-managed model reduced the tariff ratio from 54% to 13%-18%. Coupled with the layout of US local warehouses, Q3 GMV growth recovered from 25% in Q2 to 40%, and the contribution ratio of emerging markets such as Europe and Latin America has steadily increased. Management revealed that Temu achieved positive monthly operating cash flow in September and is expected to reach overall break-even in FY2026, with a clearer profit path.
As of October 2025:
Temu’s cumulative global downloads exceeded 1.2 billion.
Global MAU reached a record high of 530 million in August.
It has repeatedly topped similar rankings in North America, Latin America, the Middle East, and other regions, becoming a phenomenal player in cross-border e-commerce.
In the early stage of overseas expansion, Temu chose North America as its breakthrough point, adopting a two-pronged strategy to gain a foothold:
Extreme Low Prices: Built competitiveness with full-category low-cost products. Research by UK data firm Cebr shows that UK households can save about 27,000 yuan (3,000 British pounds) annually on living costs through direct supply platforms like Temu.
High-Impact Marketing: Spent 980 million yuan (14 million US dollars) in 2023 to secure two 30-second ad slots during the Super Bowl, leading to a 45% surge in downloads on the night of the broadcast. It renewed the investment with 150 million yuan in 2024, successfully building global brand awareness.
After establishing a firm foothold in North America, Temu quickly expanded to Europe, covering the UK, Germany, France, and other markets. According to Huachuang Securities’ prediction, the US and European markets will contribute over 70% of its GMV from 2024 to 2025. Today, emerging markets such as Southeast Asia and Latin America have become new growth engines:
Latin America accounts for nearly 30% of total downloads.
African market downloads soared by 168%, with Brazil’s downloads surging 84% to top the single-market list.
Nigeria’s downloads skyrocketed 84 times to rank third globally.
The explosive growth of emerging markets confirms its global appeal. However, risks lurk beneath the high-speed expansion:
Growth in North America and Europe is unlikely to return to its peak due to tariffs and trade barriers, requiring continuous attention to policy adjustments in various regions.
Competition is intensifying: Amazon launched "Amazon Haul" low-cost stores and free shipping services targeting its core market, while TikTok Shop seizes users in social e-commerce through "live streaming + algorithms."
Facing encirclement by giants, Temu needs to maintain its advantages while adapting flexibly. This overseas journey still requires careful planning.
