Colin Huang, the founder of PDD Holdings, which is the parent company of the e-commerce giant Temu, experienced a significant decline in his wealth. His fortune decreased by $14.1 billion after the company’s shares fell by 29%, marking his largest single-day loss ever. As a result, Huang is now ranked fourth on the list of China’s richest individuals, with a wealth estimated at $35.2 billion, according to the “Bloomberg Billionaires Index.”
Just a few weeks ago, Huang topped the list for the first time in over three years, surpassing bottled water billionaire Zhong Shanshan. However, Zhong quickly reclaimed the top spot with his wealth estimated at $50 billion.
Huang’s wealth drop followed PDD’s announcement of quarterly revenues that fell short of analysts’ expectations and its warning of a slowdown in sales growth. Additionally, CEO Chen Lei noted that the company’s current competitive position is unsustainable, especially with increasing competition from companies like TikTok and Alibaba.
Since founding PDD in 2015, Huang quickly rose among the rich thanks to the success of several projects in gaming and e-commerce. However, the company’s expansion under the Temu brand, challenging shopping giants like Shein and Amazon, has faced obstacles, including supplier protests and new regulatory pressures in Europe and the United States.
Temu is known for its cheap products and large promotions, attracting a segment of budget-conscious consumers. Nevertheless, it now faces challenges amid a competitive environment and rapidly changing regulatory requirements.
