PDD Holdings Inc posted better-than-expected 9% revenue growth, signaling a gradual recovery in its China operations while its international platform Temu stabilized after U.S. regulatory disruptions. The company reported September-quarter sales of 108.3 billion yuan ($15.2 billion), exceeding analysts' average estimate of 107.6 billion yuan. Net profit rose 17% to 29.3 billion yuan. Its shares briefly gained in U.S. premarket trading before retreating.

The upbeat results masked ongoing challenges both domestically and abroad. This year, the company has faced a triple squeeze from China's consumption fluctuations, escalating tariffs, and the closure of a key tax loophole that previously fueled the U.S. expansion of discount retailers like Temu and Shein. Meanwhile, competitors Alibaba and JD.com are intensifying rivalry in areas ranging from grocery delivery to flash sales.

Overseas, Temu remains locked in a price war with Shein for U.S. customers following the shutdown of the critical tax advantage. To regain market share, Temu has launched aggressive discounting campaigns - Bloomberg-tracked data shows prices for at least 20 best-selling items averaged 18% lower in early September compared to late April, with some products slashed by up to 60%. While Temu continues to serve as PDD's growth engine, its long-term prospects remain clouded by uncertainty.