By Jiahui Huang

PDD Holdings is scheduled to report results for the fourth quarter on Thursday. Here is what you need to know:

NET PROFIT: The Chinese e-commerce giant's net profit was likely 27.00 billion yuan, equivalent to $3.73 billion, according to the consensus estimate of analysts polled by Visible Alpha. That would be a 16% rise from a year earlier, slowing from the third quarter's 61% jump.

REVENUE: Quarterly revenue is expected at 117.83 billion yuan, according to Visible Alpha, up 33% from a year ago. That would compare with the 44% revenue gain in the previous quarter.

U.S.-listed PDD fell 28% in the final quarter of 2024 but has since recouped some losses. Its American depositary receipts have risen 30% this year despite concerns about China's slowing growth, Trump tariffs and rising U.S.-China tensions, as investors remain upbeat about the company's prospects.

WHAT TO WATCH:

--TEMU AND TARIFFS: U.S. trade-policy changes are expected to narrow the price gap between bargain app Temu and other U.S marketplaces, Citi analysts wrote in a recent note. Since Trump suspended the so-called de minimis provision for low-value parcels from China, though he later delayed the move, some Temu suppliers have said the platform had raised retail prices on certain products. Investors will be assessing the company's tone on tariff headwinds during its the earnings call.

--TOP LINE: Citi lowered its fourth-quarter revenue forecast for PDD by 1.8% to factor in the higher cost of goods sold on Temu and stepped-up subsidies on Pinduoduo to participate in the Chinese government's trade-in program. Investors will be scrutinizing the pace of the company's revenue growth, which has slowed in recent quarters.

Write to Jiahui Huang at jiahui.huang@wsj.com

(END) Dow Jones Newswires

March 19, 2025 22:39 ET (02:39 GMT)

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