Pinduoduo

[Wildreamz]

Considering PDD is not really a "true" monopoly (still small), and doing everything they can to alleviate poverty in the rural area (including donating all their recent earnings); which is definitely the priority of Beijing. Perhaps that's why they have rebounded quite significantly (~30%) from recent lows.

Li Lu having a position (~2.25% of US portfolio) in it, helps the bull case slightly (for me).

Currently, it's trading at ~10.5x PS ratio, PE ratio ~80 (run rate basis) most recent quarter revenue growth is +106%, net margin is ~10.5%.

(not vested)

[dreamybear]

How Temu Makes Money From $10 Smartwatches From China
https://www.youtube.com/watch?v=quGoGgbP-aE
"Bargain e-commerce company Temu has had a whirlwind 2023.

Quietly launching its app in September 2022, it only took the company a few weeks to top app store charts, edging out Amazon, Walmart and even fast-fashion brand Shein. By February 2023, the 5-month-old company made its TV debut during Super Bowl LVII, airing two commercial spots totaling an estimated $14 million. With an annual advertising budget of about $1.4 billion, Temu is focused on aggregating a user base of nearly 100 million people by year-end....."

[dreamybear]

Interesting read ... long article. The first few parts are rather technical(IT). Maybe skip those "chim" IT portions and read those more related to investing...  

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We believe PDD is a Dying Fraudulent Company and its Shopping App TEMU is Cleverly Hidden Spyware that Poses an Urgent Security Threat to U.S. National Interests
https://grizzlyreports.com/we-believe-pd...interests/
"....
We believe PDD’s financials are notoriously unreliable.
- Even the usually promotional sell side analysts have pointed out that PDD’s accounting is akin to a “Black Box” as disclosure becomes ever more opaque.
- Despite being a company with a market cap of appx $135 billion, PDD has not had a CFO since 2018. The key financial positions are a revolving door. There seems to be no accountability.
- The local audit partners from Ernst&Young Hua Ming LLP are in our judgment untrustworthy and have audited numerous Chinese companies whose shares have proven next to worthless in the past.....

Important operating metrics indicate PDD’s China business is rapidly declining while it loses a fierce battle with competitors such as Alibaba and JD......"