Key Takeaways PDD Holdings reported higher income even as revenue growth wasn't as strong as expected.The company was negatively impacted by a pullback in spending by Chinese consumers, and also higher costs of revenue and operating expenses.

The parent company behind Temu disappointed investors with revenue that missed estimates, as consumer activity in China remains sluggish.

PDD Holdings, which operates the Pinduoduo and Temu, missed market estimates for quarterly revenue on Thursday, as demand remained weak in the company's Chinese e-commerce business despite deep discounts and government stimulus to boost spending.