Pingduoduo shares in NASDAQ shot up 15 percent in premarket on Monday after the company’s net profit in Q2 surged 335 percent to 8.7 billion yuan (US$1.2 billion).
President and CEO CHEN Lei attributed the increase to bounce-back consumption during the 618 shopping festival. More than 500 brands opened flagship stores on Pingduoduo. Sales volume of phones, home appliances and cosmetics all doubled.
Pingduoduo VP LIU Jun Due said marketing expenditure in Q2 was reduced as business trips were postponed and offline events were canceled due to the pandemic.
