Zhong Shanshan Reclaims Title of Richest Person in China Amid PDD’s Financial Struggles
Colin Huang’s brief stint as China’s richest person has come to an end after a major drop in the stock price of PDD Holdings Inc., the parent company of e-commerce platform Temu. On Monday, Huang’s wealth plummeted by $14.1 billion—his largest one-day loss—leaving him with a net worth of $35.2 billion and placing him fourth among China’s billionaires. Zhong Shanshan, the billionaire behind bottled water, reclaimed the top spot with a fortune of $50 billion.
PDD’s recent financial report missed analyst expectations and indicated that sales growth would slow down. CEO Chen Lei acknowledged that the company’s current performance was not sustainable, particularly with competitors like ByteDance’s TikTok and Alibaba vying for budget-conscious shoppers.
Chen also tempered expectations for future dividends and stock buybacks, stating that intense competition and external uncertainties made it inappropriate to pursue these options right now.
Huang founded PDD in 2015 after several ventures in gaming and e-commerce. His net worth peaked at $71.5 billion in early 2021. He stepped down as CEO in 2020 and left the board in 2021 amid increased scrutiny of China’s tech giants.
Temu, known for its low-priced products and aggressive promotions, gained popularity during the global inflation surge and quickly became one of the most downloaded apps in the U.S. since its launch in 2022. However, it has faced challenges from suppliers, employees, and regulatory bodies. Small merchants have protested against what they see as unfair practices, and the European Union is working to address loopholes for cheap online imports, while U.S. lobbyists aim to reduce the duty-free shipment threshold from $800 to $10.
