China’s richest person loses $14 billion as Temu parent shares plunge

Colin Huang, the founder and former chairman of PDD Holdings, experienced a significant decline in his net worth, losing approximately $14 billion on a single day. This drop occurred on Monday following the company's disappointing second quarter earnings report, which revealed a nearly 30% fall in stock price. Huang's estimated net worth fell to $35.3 billion, resulting in a drop to the 50th position on Forbes' real-time billionaires list. PDD Holdings reported diluted earnings of 23.24 yuan per share and sales of 97.06 billion yuan, which fell short of analysts' expectations. The company had anticipated sales of 100.17 billion yuan. Despite a more than doubling of operating profit compared to the previous year, the revenue growth rate has slowed, prompting concerns about future performance. Jun Liu, the vice president of finance at PDD, acknowledged the challenges posed by intensified competition and external factors affecting revenue growth. Lei Chen, the CEO, indicated that the company is prepared to make short-term sacrifices to invest in its business, suggesting a strategic shift in focus. The economic landscape in China is also affecting other online marketplaces, with similar companies like Alibaba and JD.Com reporting missed expectations amid a downturn characterized by high unemployment and reduced consumer spending. This trend reflects a broader shift in consumer behavior, with younger generations increasingly adopting a saving mentality in response to economic pressures.