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Colin Huang loses first place as China's richest amid sharp decline in PDD Holdings stake
(MENAFN) Colin Huang's brief tenure as China's richest individual was cut short this week due to a dramatic decline in the shares of PDD Holdings, the parent company of the e-commerce giant Temu. On Monday, Huang experienced a staggering USD14.1 billion drop in his fortune, marking his largest one-day loss ever. As a result, Huang's net worth now stands at USD35.2 billion, placing him fourth on China's wealthiest list.
Huang's fall from the top spot is particularly striking given his recent achievement of becoming China's richest person on August 8, a position he held for just two weeks before being overtaken by Zhong Shanshan, the bottled-water magnate. Zhong reclaimed the top position on Monday, with his fortune estimated at USD50 billion. The sharp decline in Huang’s wealth follows disappointing quarterly revenue results from PDD Holdings, which fell short of analysts' expectations and prompted warnings of slower sales growth. CEO Chen Li expressed concerns about the company's sustainability in the face of fierce competition from rivals like ByteDance’s TikTok and Alibaba Group, which are targeting budget-conscious consumers.
The company’s U.S.-listed shares saw their largest-ever drop, plunging 29 percent. Additionally, management has tempered expectations for future stock buybacks or dividend payouts, citing intense competition and external uncertainties as reasons for the decision. Chen Li emphasized that the current conditions do not warrant such financial maneuvers and that the company does not foresee the need for them in the near future. Huang, who founded PDD in 2015 and initially made his mark in gaming and e-commerce, saw his net worth peak at USD71.5 billion in early 2021. However, he stepped down as CEO in 2020 and left the board as chairman in 2021 amid Beijing's crackdown on the Chinese tech sector.
Huang's fall from the top spot is particularly striking given his recent achievement of becoming China's richest person on August 8, a position he held for just two weeks before being overtaken by Zhong Shanshan, the bottled-water magnate. Zhong reclaimed the top position on Monday, with his fortune estimated at USD50 billion. The sharp decline in Huang’s wealth follows disappointing quarterly revenue results from PDD Holdings, which fell short of analysts' expectations and prompted warnings of slower sales growth. CEO Chen Li expressed concerns about the company's sustainability in the face of fierce competition from rivals like ByteDance’s TikTok and Alibaba Group, which are targeting budget-conscious consumers.
The company’s U.S.-listed shares saw their largest-ever drop, plunging 29 percent. Additionally, management has tempered expectations for future stock buybacks or dividend payouts, citing intense competition and external uncertainties as reasons for the decision. Chen Li emphasized that the current conditions do not warrant such financial maneuvers and that the company does not foresee the need for them in the near future. Huang, who founded PDD in 2015 and initially made his mark in gaming and e-commerce, saw his net worth peak at USD71.5 billion in early 2021. However, he stepped down as CEO in 2020 and left the board as chairman in 2021 amid Beijing's crackdown on the Chinese tech sector.
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