Colin Huang Loses Title of China’s Wealthiest Individual While Facing $14 Billion Losses as Stock Plummets

Colin Huang, the founder and former chairman of Chinese e-commerce giant PDD Holdings, experienced a significant drop in his net worth on Monday, losing approximately $14 billion. He managed to keep the title of China’s richest person for only 18 days. This sharp decline came as the company’s stock tumbled nearly 30% following the release of disappointing second-quarter earnings.

Huang, who remains a major shareholder in PDD, saw his estimated net worth fall to $35.3 billion, marking a 28% decrease. This substantial loss also caused his position on Forbes’ real-time billionaires list to slip to No. 50 globally and No. 4 in China, trailing behind Zhong Shanshan ($49.9 billion), Zhang Yiming ($43.4 billion), and Ma Huateng ($40.7 billion).

PDD’s stock dropped to $97.35 by early afternoon on Monday, its lowest level in 2024, following a 30% decline. Despite this recent downturn, the company’s stock had risen by almost 22% over the past year, driven by the success of its popular online marketplace, Temu.

The steep decline in stock value came after PDD Holdings reported earnings and revenue that fell short of analysts’ expectations for the second quarter. The company announced diluted earnings of $3.20 per share for the quarter ending June 30, along with sales of $13.64 billion. These figures were below the anticipated $14.1 billion in sales. However, operating profit more than doubled compared to the same period last year, rising from $1.78 billion to $4.4 billion.

In response to the earnings report, Jun Liu, PDD’s Vice President of Finance, acknowledged that the company’s revenue growth rate had slowed and warned that this trend might persist due to “intensified competition and external challenges.” CEO Lei Chen also commented, noting that the company is prepared to make “short-term sacrifices” as it continues to invest in the business.

PDD Holdings is not the only Chinese online marketplace facing difficulties amidst China’s economic downturn, which is characterized by high unemployment rates and declining household incomes. Alibaba, another major e-commerce platform, reported a 28.77% drop in net income in June, and JD.com also missed its revenue projections during the same period. Additionally, CNBC reported in July that young Chinese consumers are increasingly adopting a “revenge saving” mindset, setting ultra-low spending targets in response to the country’s economic challenges.

Colin Huang founded Pinduoduo, the precursor to PDD Holdings, in 2015. His net worth skyrocketed from an estimated $13.5 billion in 2019 to a peak of $55.3 billion in 2021, with an average of $38.9 billion so far this year. Though he stepped down as chairman in 2021, Huang remains a significant shareholder in the company. PDD launched Temu, an online budget marketplace competing with Shein, in 2022. In addition to PDD, Huang also founded the online gaming company Xinyoudi and the e-commerce platform Ouku.com.

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