Pinduoduo Announces Large Jump in Double 12 Shopping Festival Data, but Shares Sag
In less than nine hours, the company's GMV surpassed last year's whole day record.
Pinduoduo Inc. (Nasdaq: PDD), a popular budget shopping platform in China, announced today that its gross merchandise volume (GMV) on Double 12 Shopping Festival exceeded last year's level by 370 percent.
In less than nine hours, the company's GMV surpassed last year's whole day record, the company said. The gross merchanise volume is a figure that shows sales across the Chinese e-commerce giant's various shopping platforms.
Pinduoduo had facilitated over 38 million orders for agricultural products, among which over 13 million orderes, totaling more than 114 million kilograms of products, were issued by national impoverished villages. This number represented an increase of 430 percent over the same period last year, the company said.
Shares of Pinduoduo, however, did not respond to the better-than-expected sales data. The company's stock closed at $22.58 per share in New York, down 7 cents.
The Double 12 shopping festival, begun several years ago after the success of a similar Singles' Day shopping day in China on Nov. 11, is held every Dec. 12.
In Novermber, Blue Orca released a 40-page short-seller report in which it claimed that Pinduoduo overstated its gross merchandise volume (GMV) figures, inflated its revenue, and kept staffing costs off-book, among other things.
In response to the allegations, a spokesman for the company said Blue Orca report contained a series of incorrect suppositions. Shares of Pinduoduo were not affected by the negative report as it kept climbing after the company announced strong third quarter earnings.
Pinduoduo went public in July, raising $1.6 billion by selling 85.6 million American depositary shares at $19 apiece, at the top of the expected range. The company is backed by Chinese tech giant Tencent Holdings Ltd., which acted as one of the cornerstone investors in the IPO, committing $250 million.