Temu owner PDD Holdings has recorded a massive surge in full-year and fourth-quarter profits and revenue.

The Shangai-based company recorded total revenues of ¥247bn (£27bn) in the full year to December 31, 2023, nearly doubling from ¥130bn (£14.2bn) in 2022.

The huge rise was driven by an “increase in revenues from online marketing services and transaction services”.

Operating profit for the full year was ¥58bn (£6.3bn), up 93% from ¥30bn (£3.3bn) in 2022.

The group also recorded an increase of 123% in revenues in its fourth quarter to ¥89bn (£9.7bn), while operating profit leapt 146% to ¥22bn (£2.4bn).

PDD said 2023 was a “pivotal” year for the company, during which online marketplace Temu saw immense growth.

The group’s recorded profit beat analysts’ expectations that Temu would be unprofitable in its early stage. However, PDD revealed a 146% increase in fourth-quarter profits, boosted by transaction fees and marketing fees paid by merchants using its platforms. 

PDD Holdings chairman and co-chief executive officer Lei Chen said: “2023 represents a pivotal chapter in our corporate history as we transition towards high-quality development.

“In 2024, we remain dedicated to further improving consumer experiences, enhancing technology innovations, and generating positive impacts in our communities.” 

PDD Holdings executive director and co-chief executive officer Jiazhen Zhao added: “In the fourth quarter, we saw growing demand driven by encouraging consumer sentiment.

“We will continue our high-quality development strategy, stay dedicated to offer great value and exceptional service, and keep building thriving communities that can benefit all.”