On August 24, PDD Holdings Inc rose 3.41% in regular trading, trading at $88.715/share with turnover of $364 million. The stock initially fell 5% in pre-market on a revenue miss before reversing sharply higher as investors focused on the earnings beat.

PDD reported Q2 non-GAAP earnings of RMB 19.33 per diluted ADS, beating the analyst consensus estimate of RMB 18.45. However, revenue of RMB 112.36 billion (approximately $16.56 billion) came in below the FactSet estimate of RMB 115.09 billion. Net profit attributable to shareholders declined 12% year-over-year to RMB 27.2 billion, while operating profit rose 8% to RMB 27.8 billion. Transaction service revenue grew 13% YoY to RMB 54.7 billion. The company noted that short-term cross-border fulfillment costs are rising in affected markets, but outlined a medium-to-long-term strategy to expand local product supply and fulfillment coverage. Non-GAAP R&D spending surged 40% YoY to RMB 4.3 billion, reflecting intensified ecosystem investment. Operating cash flow reached RMB 25.7 billion, up 19% YoY, with cash reserves totaling RMB 456.4 billion.

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