The founder of the Chinese company PPD Holdings that owns e-commerce platform Temu , Colin Huang , has seen a significant drop in his net worth. Following a decline in PDD 's shares this week, Huang's fortune plummeted by $14.1 billion in a day which was also the the largest one-day loss in his career.
According to the Bloomberg Billionaires Index, this decline has pushed Huang from the top spot to the fourth-wealthiest person in China, with a net worth of $35.2 billion.
Huang became the first tech tycoon to lead Chinaâs wealth rankings over three years. He overtook Shanshan as his net worth reached a peak of $71.5 billion in early 2021.
PDD falls short of estimates
PDD also saw a major decline in its share price following the release of its quarterly earnings report. The company's revenue fell short of analyst expectations, and management warned of slowing sales growth.
CEO Chen Lei emphasised the unsustainable nature of PDD's current trajectory, citing increased competition from platforms like TikTok and Alibaba. The company's US-listed shares dropped by 29%, the largest single-day decline in its history.
PDD-owned Temu faces criticism in China and outside
PDD-owned e-commerce platform Temu sells affordable items with major discounts. This made the platform popular among users who wanted to save money during inflation. The company opened a new store called Temu outside of China in 2022, and it also became popular in the US. Now, Temu even competes with other major e-tailers like Shein and Amazon.
However, not everyone is happy with this e-commerce platform. Suppliers, workers and even governments have complained about Temu. Small business owners in China protested because they felt the company was treating them unfairly.
In other countries, governments are trying to make the company pay more taxes on their cheap goods. This could make the prices of products available in Temu go up in the coming days.
