PDD Holdings Inc., the parent company of the e-commerce platform Temu, reported lower-than-expected sales figures for the September quarter, raising concerns about the impact of China's economic slowdown on major tech companies.

The company's revenue for the quarter was 99.4 billion yuan ($13.7 billion), which fell short of the average analyst estimate of 102.8 billion yuan. Similarly, the net income of 25 billion yuan was lower than the projected 26.6 billion yuan.

As a result of this announcement, PDD's shares experienced a significant decline, dropping as much as 16% in pre-market trading in the United States. This performance highlights the ongoing challenges faced by Chinese tech firms in a sluggish domestic market.