Chinese billionaire Colin Huang’s net worth exploded Tuesday after PDD, the bargain-focused Chinese retailer he founded, posted blowout earnings, sending shares of PDD to their highest price since June 2021.
Shares of New York-listed PDD (formerly Pinduoduo) rose 18% to $139 on Tuesday after the company reported quarterly earnings and profit more than 25% above analysts’ forecasts, generating a record net source of profit ($9. 4 billion) and sales ($2. 1 billion). ). ).
Huang, who owned a 26. 5% stake in PDD at the end of 2022, enjoyed a significant increase in his fortune on Tuesday.
The 43-year-old retailer’s net worth jumped from $7. 5 billion to $49 billion, the second-largest gain among all billionaires on Tuesday, according to Forbes’ real-time tracker.
After the DP rally, Huang surpassed Zhang Yiming, founder of ByteDance, the TikTok company, as the second-richest man in China.
Huang is the 25th richest user in the world, followed by the chairman of Koch Industries and commodity-rich Charles Koch.
Pinduoduo started as a “virtual bazaar” for Chinese shoppers to get reasonable prices on produce and other agricultural products, but PDD has since set its appeal to the world, launching the grocery shopping app Temu in the U. S. and Canada. Last fall, the U. S. government was met with wonderful fanfare (and (in reaction from the authorities) lawmakers who attribute low costs to forced labor. PDD, whose market capitalization soared nearly $30 billion on Tuesday, is the second-largest indexed Chinese company in the U. S. In the U. S. , the online store Alibaba ($193 billion market cap). ). Shares of Alibaba and other major U. S. -listed Chinese corporations are soaring. U. S. e-commerce players, such as e-commerce player JD. com and synthetic intelligence leader Baidu, fell broadly on Tuesday, trading against PDD. Despite his significant involvement in PDD, Huang no longer plays an official role within the company he once led as CEO and chairman.
PDD’s stock has especially risen during its five years on the market. The stock, still below its all-time high in 2021, is up more than 300% since March 2022. Huang’s wealth has also fluctuated sharply, from $55 billion on Forbes’ billionaires list in 2021 to just $11 billion in the 2022 rating before recovering to its current point of $49 billion.