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On August 26, Eastern Time, Pinduoduo's U.S. stocks plummeted 28.5%, setting a record for the largest single-day drop since its listing in 2018.

Before the U.S. stock market opened, Pinduoduo released its second-quarter 2024 financial report, with revenue of 97.1 billion yuan, lower than the market expectation of 99.9 billion yuan; revenue growth rate was 86% year-on-year, a decrease of 45 percentage points from the first quarter.

In recent years, Pinduoduo has achieved remarkable results in e-commerce competition with its low-price strategy, and has invested huge amounts of money in Temu to expand its global business.

Faced with performance that fell short of expectations, Pinduoduo Chairman and Co-CEO Chen Lei told analysts that competition will continue and become increasingly fierce, and high revenue growth is unsustainable.

Chen Lei further warned about Temu's future performance in the earnings call. He said that overseas business is facing a more severe and rapidly changing international environment, business operations are increasingly disturbed by abnormal business factors, the uncertainty of future business development has increased significantly, and a gradual slowdown in revenue will be an inevitable result.

Earlier, Bloomberg reported that the European Union is studying a proposal to plug loopholes in online shopping for cheap goods to circumvent import taxes, mainly targeting Chinese retailers such as Temu. However, Pinduoduo's global expansion strategy has begun to pay off in some aspects. Temu quickly became one of the most downloaded applications in the United States after its debut in 2022.