Temu Owner’s Founder Loses Spot as China’s Richest Person After 18 Days

Colin Huang’s reign as China’s richest person only lasted about two weeks.

Bloomberg
Published27 Aug 2024, 02:36 AM IST
Temu Owner’s Founder Loses Spot as China’s Richest Person After 18 Days
Temu Owner’s Founder Loses Spot as China’s Richest Person After 18 Days

Colin Huang’s reign as China’s richest person only lasted about two weeks.

A slump Monday in shares of PDD Holdings Inc., the parent company of e-commerce giant Temu, sent Huang’s fortune tumbling by $14.1 billion, his biggest one-day loss ever. Huang is now the fourth-wealthiest person in China with a net worth of $35.2 billion, according to the Bloomberg Billionaires Index. 

It’s a dramatic drop for the founder of PDD, who on Aug. 8 became the first tech tycoon to top China’s wealth rankings in more than three years, displacing bottled-water billionaire Zhong Shanshan. Zhong retook the No. 1 spot on Monday with a fortune of $50 billion. 

PDD reported quarterly revenue that missed analyst estimates and warned that sales growth will slow. Chief Executive Officer Chen Lei repeatedly told analysts in a call after the earnings release that the firm’s current trajectory wasn’t sustainable, at a time when competitors such as ByteDance’s TikTok and Alibaba Group Holding Ltd. are vying for budget-conscious shoppers. The company’s US-listed shares fell 29%, the most ever.

Management also dampened expectations for potential dividend payouts and share buybacks in the next few years. 

“We are facing intense competition on different fronts and also uncertainties from external factors,” Chen said. “Therefore, our management team and I unanimously believe that it is not an appropriate time for share repurchases or dividends. And in the foreseeable years ahead, we also do not see such a need.”

Huang founded PDD in 2015 after launching a few gaming and e-commerce ventures. The former Google engineer quickly ascended the ranks of the world’s richest people, with his net worth peaking at $71.5 billion in early 2021. He stepped down as PDD’s chief executive in 2020 and left the board as chairman in 2021, as Beijing began cracking down on China’s tech giants.

The e-commerce platform is known for selling dirt-cheap products with massive promotions, which attracted budget-conscious consumers as global inflation surged. It expanded outside of China under the Temu brand name and quickly become one of the most downloaded US apps after a splashy debut in 2022. It’s since begun to challenge fellow Chinese online shopping giant Shein and even Amazon.com Inc. in certain segments. 

But the company has faced frustration from suppliers, employees and governments. Hundreds of small merchants staged a rally at PDD offices in southern China this summer to protest what they called unfair penalties levied by the company. Meanwhile, the European Union is working on a proposal to close an import tax loophole for cheap goods bought online, while US lobbyists are pushing for a $10 threshold for duty-free shipments, down from $800 currently.

With assistance from Claire Che.

This article was generated from an automated news agency feed without modifications to text.

Catch all the Business News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.

MoreLess
First Published:27 Aug 2024, 02:36 AM IST
Business NewsNewsWorldTemu Owner’s Founder Loses Spot as China’s Richest Person After 18 Days

Get Instant Loan up to ₹10 Lakh!

  • Employment Type

    Most Active Stocks

    Bandhan Bank share price

    211.00
    03:51 PM | 11 OCT 2024
    23.25 (12.38%)

    Tata Steel share price

    160.70
    03:51 PM | 11 OCT 2024
    1.05 (0.66%)

    Axis Bank share price

    1,174.25
    03:29 PM | 11 OCT 2024
    -9.5 (-0.8%)

    Zee Entertainment Enterprises share price

    130.10
    03:55 PM | 11 OCT 2024
    0.7 (0.54%)
    More Active Stocks

    Market Snapshot

    • Top Gainers
    • Top Losers
    • 52 Week High

    Cummins India share price

    3,611.75
    03:55 PM | 11 OCT 2024
    -169.6 (-4.49%)

    Star Health and Allied Insurance share price

    547.85
    03:59 PM | 11 OCT 2024
    -19.35 (-3.41%)

    Creditaccess Grameen share price

    1,081.40
    03:29 PM | 11 OCT 2024
    -38 (-3.39%)

    Jubilant Pharmova share price

    1,146.15
    03:55 PM | 11 OCT 2024
    -37.65 (-3.18%)
    More from Top Losers

    Nippon Life share price

    700.85
    03:53 PM | 11 OCT 2024
    59.15 (9.22%)

    Network 18 Media & Investments share price

    81.44
    03:52 PM | 11 OCT 2024
    5.16 (6.76%)

    Sonata Software share price

    608.50
    03:42 PM | 11 OCT 2024
    36.1 (6.31%)

    Triveni Turbines share price

    790.10
    03:29 PM | 11 OCT 2024
    45.85 (6.16%)
    More from Top Gainers

    Recommended For You

      More Recommendations

      Gold Prices

      • 24K
      • 22K
      Bangalore
      77,425.00780.00
      Chennai
      77,431.00780.00
      Delhi
      77,583.00780.00
      Kolkata
      77,435.00780.00

      Fuel Price

      • Petrol
      • Diesel
      Bangalore
      102.86/L0.00
      Chennai
      100.76/L0.00
      Kolkata
      104.95/L0.00
      New Delhi
      94.72/L0.00

      Popular in News

        HomeMarketsPremiumInstant LoanMint Shorts