PDD Holdings Inc. announced that its co‑chief executive officer, Jiazhen Zhao, will serve as co‑chairman of the company’s board of directors, creating a dual leadership structure that pairs Zhao with Chairman Lei Chen. The move expands Zhao’s responsibilities beyond day‑to‑day operations to include oversight of corporate governance and strategic direction, signaling a commitment to continuity and stronger governance amid a challenging operating environment.
The appointment comes as PDD faces intensified competition in China from Alibaba and JD.com, and regulatory scrutiny in both domestic and international markets. A physical altercation between PDD employees and Chinese regulators in December 2025 led to the dismissal of several government‑relations staff, underscoring the regulatory headwinds the company must navigate. By elevating Zhao to co‑chairman, the board aims to reinforce oversight and align executive and board priorities to address these pressures.
Financially, PDD reported Q3 2025 results that missed expectations: revenue fell 25.4% short of the consensus estimate of RMB 145.2 billion, landing at RMB 108.3 billion, while earnings per share were RMB 21.08 versus the consensus of RMB 23.50. The miss reflects a 9% year‑over‑year revenue decline driven by softer demand in the online‑marketing segment and increased competition, while a 2‑percentage‑point drop in the non‑GAAP operating margin to 25% was largely due to higher platform‑ecosystem investments.
Management highlighted the strategic intent behind the leadership change. Lei Chen noted that “as we grow in scale, we are prepared to take on greater social responsibility and continue our journey that serves the greater public interest.” Zhao emphasized the company’s focus on high‑quality merchant support and trust‑and‑safety upgrades, while CFO Jun Liu warned that “our topline growth is moderating, but we remain committed to investing in a healthy and sustainable ecosystem.” These comments illustrate the company’s willingness to accept short‑term margin pressure for long‑term platform value.
In addition to Zhao’s new role, PDD appointed Mi Wang as Senior Vice President of Engineering and Jiong Li as Financial Director, reinforcing its emphasis on technology development and financial stewardship. The appointments are part of a broader effort to strengthen operational capabilities and governance as the company expands its Temu global marketplace.
Investors responded positively to the leadership announcement, reflecting confidence in the board’s enhanced governance structure, even as the company’s recent earnings miss and regulatory incident had previously weighed on sentiment. The dual leadership model is expected to provide clearer strategic direction and stronger oversight as PDD navigates competitive and regulatory headwinds.
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