Why it matters: PDD’s slowing growth highlights the challenges of sustaining rapid expansion in a highly competitive e-commerce market. PDD’s revenue from online marketing services and other streams in Q4 was RMB 57.01 billion ($7.87 billion), up 17% year over year. PDD’s total cost of revenue for Q4 was RMB 47.8 billion ($6.59 billion), up 36% year over year, mainly due to higher fulfillment and payment processing fees. Total operating expenses in Q4 rose 19% year over year to RMB 37.22 billion ($5.14 billion), driven by increased sales and marketing expenses. Context: In February, PDD’s e-commerce platform Temu began preparations to enter the South Korean market and build a logistics network.