Chinese e-commerce giant Pinduoduo Holdings reported a 47% drop in Q1 net profit to 14.74 billion RMB ($2.05 billion), missing expectations as fierce domestic competition and global trade tensions weighed on both its Pinduoduo platform and international business Temu. Revenue reached 95.67 billion RMB ($13.3 billion), falling short of analysts’ estimates. Analysts pointed to weaker-than-expected margins, impacted by U.S. tariffs and heightened promotional costs, as key reasons behind the profit slump. Despite aggressive price cuts and government stimulus, China’s sluggish consumer spending and an ongoing price war among major platforms like Alibaba, JD.com, and Pinduoduo are squeezing profits. Following the earnings release, PDD’s U.S.-listed shares dropped over 17%.