Temu-Owner PDD Warns of Slowdown in Tough China Consumer Arena

PDD Holdings Inc. warned of a slowdown in an intensively competitive Chinese consumption environment, reflecting an escalating battle in online commerce with sector leaders such as Alibaba Group Holding Ltd.

Concerns about PDD’s ability to fend off larger rivals offset a better-than-projected 9% rise in revenue to 108.3 billion yuan ($15.2 billion) for the September quarter. That fed a 17% jump in net income. Its US shares slid more than 3% in pre-market trading.

The better-than-projected results suggest a gradual recovery in its Chinese business, while the international Temu arm stabilizes after US policy disruptions. But PDD’s own caution ...