The news: Temu parent PDD Holdings’ growth slowed considerably in Q4, raising questions about its ability to navigate China’s difficult retail landscape as well as growing headwinds in international markets.

By the numbers: The company blamed the “fast-changing external environment” and “intensified competition” for its weaker-than-expected earnings.

• Revenues rose 24% YoY to RMB 110.6 billion ($15.4 billion), missing expectations for RMB 113.6 billion ($15.9 billion). While the retailer’s growth outstripped that of domestic competitors Alibaba and JD.com, it was a considerable slowdown from the 44% YoY increase it notched in the previous quarter.
• Earnings per share of RMB 18.53 ($2.59) fell short of FactSet’s RMB 19.85 ($2.77) estimate. Profits are under serious pressure due to the considerable costs of staying competitive in China’s price wars, along with other investments the company is making to minimize the impact of de minimis and regulatory changes.