NASDAQ Shariah screener · October 2026
Is PDD Holdings Inc. (PDD) Halal?
PDD Holdings Inc. · NASDAQ: PDD · Consumer Discretionary
The short answer
No - PDD Holdings Inc. (PDD) fails this Shariah stock screen at the interest-income gate. PDD, the Dublin-based commerce company behind Pinduoduo and Temu, has a clean business (merchant-neutral e-commerce; debt of about US$0.77B is only 0.69% of its ~$111.72B market cap). But interest and investment income of RMB25,583,848K is about 5.92% of FY2025 total revenues (RMB431,845,713K), above the 5% ceiling - the filing's own MD&A says the line mainly represents interest earned on short-term investments and debt investments. Cash and securities of RMB422,308,269K are also about 54% of market cap, above the AAOIFI-style 33% liquidity gate. Zoya independently rates PDD not Shariah-compliant on the same 5.92% figure. This is a factual screen, not a religious ruling - consult a qualified scholar for personal rulings.
Gate 1 — Business activity: PASS
PDD Holdings Inc. (NASDAQ: PDD), formerly Pinduoduo Inc. (renamed February 2023; Cayman-incorporated, HQ Dublin, Ireland), is a multinational commerce company operating two platforms: Pinduoduo (mobile shopping platform in China, ~900M buyers) and Temu (global online marketplace in the US/EU and beyond). FY2025 revenue comes from 'online marketing services' and 'transaction services' - a merchant-neutral marketplace model selling apparel, shoes, bags, mother/childcare, food & beverages, fresh produce, electronics/appliances, furniture, household goods, cosmetics, sports/fitness, auto accessories, tools/home improvement, and pet supplies. Business-screen implication (factual): no alcohol, tobacco, gambling, weapons, adult entertainment, pork, or conventional finance as a core activity. (The EU fined Temu 200M euros in May 2026 under the Digital Services Act for sale of unsafe/illegal products - a marketplace-governance/regulatory matter, not a haram business segment.) Gate 1 passes. Facts only.
Gate 2 — Debt and cash: PASS
Per PDD Holdings' Form 20-F for the fiscal year ended December 31, 2025 (SEC EDGAR, CIK 1737806, accession 000110465926050727; RMB in thousands; convenience translation at RMB6.9931 = US$1.00), interest-bearing debt at December 31, 2025 was: current lease liabilities RMB2,498,643K + non-current lease liabilities RMB2,880,152K (Note 7) = RMB5,378,795K (about US$0.77B); the 'Convertible bonds, current portion' line (RMB5,309,597K at Dec 31, 2024) was zero at Dec 31, 2025 (matured). Against a market cap of about $111.72B (Finnhub, October 2026; sanity check: 5,693,585,848 Class A ordinary shares / 4 per ADS = ~1.423B ADS x $76.5 = about $108.9B - same range), debt / market cap is about 0.69% - below the ~33% ceiling. Gate 2 passes. Facts only.
Gate 3 — Non-compliant income: FAIL
Per PDD Holdings' Form 20-F for the fiscal year ended December 31, 2025 (RMB in thousands), 'Interest and investment income, net' was RMB25,583,848K (US$3,658,442K; FY2024: RMB20,553.5M; FY2023: RMB10,238.1M) against 'Total revenues' of RMB431,845,713K = about 5.92% of revenue - above the 5% non-compliant income ceiling. The filing's MD&A (Item 5) says the line 'mainly represents interest earned on short-term investments and debt investments included in other non-current assets.' Third-party screener Zoya independently quotes the same figures and computes the same 5.92%. Also reported for completeness: cash and cash equivalents RMB108,900,587K + short-term investments RMB313,407,682K (Note 4) = RMB422,308,269K (about US$60.39B), about 54% of market cap - exceeding the AAOIFI-style 33% liquidity gate. Gate 3 fails. Facts only.
Key figures used
- Business: multinational commerce (Cayman-incorporated, HQ Dublin, Ireland; renamed from Pinduoduo Feb 2023) - Pinduoduo (China, ~900M buyers) and Temu (global); revenue from online marketing services and transaction services
- FY2025 (20-F, filed 2026; CIK 1737806; accession 000110465926050727; RMB thousands): total revenues 431,845,713K; interest and investment income, net 25,583,848K (MD&A: mainly interest on short-term investments and debt investments)
- Debt: RMB5,378,795K interest-bearing (lease liabilities only; convertible bonds matured to zero) - about US$0.77B, about 0.69% of ~$111.72B market cap ($76.5 ADS, Oct 2026), below the ~33% ceiling
- Interest income: RMB25,583,848K - about 5.92% of RMB431,845,713K total revenues, above the 5% ceiling (Zoya independently computes 5.92%)
- Cash/securities: RMB422,308,269K (cash 108,900,587K + short-term investments 313,407,682K) - about US$60.39B, about 54% of market cap, above the AAOIFI-style 33% liquidity gate
- Business gate: merchant-neutral e-commerce platforms - no alcohol, tobacco, gambling, weapons, adult entertainment, pork, or conventional finance
- Third-party screeners: Zoya rates 'not Shariah-compliant' (same 5.92% figure); Musaffa - no verified coverage; ShariaPortfolio - no coverage found
- Material: EU fined Temu 200M euros (May 28, 2026, Digital Services Act); Temu global MAUs fell 11% YoY to 467M in Q2 2026; US de minimis repeal (Feb 2025) and tariffs pressure Temu margins; Q2 2026 revenue RMB112.36B (+8% YoY), net income -12% YoY; no dividend; HFCAA disclosure reiterated
- Listing: Nasdaq Global Select Market (ticker PDD; 1 ADS = 4 Class A ordinary shares); live quote ~$76.5 Oct 2, 2026 - no delisting (2022 HFCAA provisional-list hits are historical)
Frequently asked questions
What does PDD Holdings do?
PDD Holdings Inc. (NASDAQ: PDD), formerly Pinduoduo Inc. (renamed February 2023; Cayman-incorporated, HQ Dublin, Ireland), is a multinational commerce company operating two platforms: Pinduoduo (mobile shopping platform in China, ~900M buyers) and Temu (global online marketplace in the US/EU and beyond). FY2025 revenue comes from 'online marketing services' and 'transaction services' - a merchant-neutral marketplace model selling apparel, shoes, bags, mother/childcare, food & beverages, fresh produce, electronics/appliances, furniture, household goods, cosmetics, sports/fitness, auto accessories, tools/home improvement, and pet supplies. Its ADSs trade on The Nasdaq Global Select Market (ticker PDD); 1 ADS = 4 Class A ordinary shares (20-F cover, Commission File Number 001-38591). In FY2025 it reported total revenues of RMB431,845,713K.
Why does PDD Holdings fail this Shariah stock screen?
PDD Holdings fails this Shariah screener at two financial gates. Gate 1 (business activity): e-commerce marketplaces - no alcohol, tobacco, gambling, weapons, adult entertainment, pork, or conventional finance as a core activity - clean. Gate 2 (debt): interest-bearing debt of about US$0.77B is about 0.69% of its ~$111.72B market cap (October 2026), below the ~33% ceiling - PASS. Gate 3 (non-compliant income): interest and investment income of RMB25,583,848K is about 5.92% of FY2025 total revenues (RMB431,845,713K), above the 5% ceiling - FAIL. Result: FAIL on the interest-income gate alone (the filing's own MD&A says the line 'mainly represents interest earned on short-term investments and debt investments'). Note: this screen also tracks cash/securities concentration (RMB422,308,269K, about 54% of market cap), which exceeds the AAOIFI-style 33% liquidity gate - reported for completeness. This is a factual screen, not a religious ruling - consult a qualified scholar for personal rulings.
What is PDD Holdings' interest-bearing debt ratio?
Per PDD Holdings' Form 20-F for the fiscal year ended December 31, 2025 (SEC EDGAR, CIK 1737806, accession 000110465926050727; RMB in thousands; convenience translation at RMB6.9931 = US$1.00), interest-bearing debt at December 31, 2025 was: current lease liabilities RMB2,498,643K + non-current lease liabilities RMB2,880,152K (Note 7) = RMB5,378,795K (about US$0.77B); the 'Convertible bonds, current portion' line (RMB5,309,597K at Dec 31, 2024) was zero at Dec 31, 2025 (matured). Against a market cap of about $111.72B (Finnhub, October 2026; sanity check: 5,693,585,848 Class A ordinary shares / 4 per ADS = ~1.423B ADS x $76.5 = about $108.9B - same range), debt / market cap is about 0.69% - below the ~33% ceiling. Gate 2 passes. Facts only.
How much interest income does PDD Holdings earn?
Per PDD Holdings' Form 20-F for the fiscal year ended December 31, 2025 (RMB in thousands), 'Interest and investment income, net' was RMB25,583,848K (US$3,658,442K; FY2024: RMB20,553.5M; FY2023: RMB10,238.1M) against 'Total revenues' of RMB431,845,713K = about 5.92% of revenue - above the 5% non-compliant income ceiling. The filing's MD&A (Item 5) says the line 'mainly represents interest earned on short-term investments and debt investments included in other non-current assets.' Third-party screener Zoya independently quotes the same figures and computes the same 5.92%. Gate 3 fails. Facts only.
Do Zoya, Musaffa, or ShariaPortfolio cover PDD Holdings?
Zoya covers PDD Holdings at zoya.finance/stocks/pdd and rates it 'not Shariah-compliant' based on PDD Holdings Inc.'s most recent financial reports (AAOIFI guidelines), quoting FY2025 revenue of 431,845,713,000 yen-equivalent RMB and interest income of 25,583,848,000 (5.92% of the combined total) - the same figures as the 20-F. Musaffa: no public per-ticker rating was found (Musaffa Academy's Nasdaq-100 halal-stocks table lists 'Pinduoduo Inc. | PDD' with blank status and rating columns; no musaffa.com/stock/PDD page surfaced) - honestly reported as no verified coverage, not invented. ShariaPortfolio: no per-ticker PDD coverage was found in public search - honestly reported as no coverage found, not invented.
Sources
- PDD Holdings Inc. Form 20-F for fiscal year ended December 31, 2025 (SEC EDGAR; CIK 1737806; accession 000110465926050727; Commission File Number 001-38591; RMB in thousands; convenience translation at RMB6.9931 = US$1.00): PDD ADSs (1 ADS = 4 Class A ordinary shares) listed on The Nasdaq Global Select Market; Total revenues 431,845,713K; 'Interest and investment income, net' 25,583,848K (MD&A Item 5: mainly interest on short-term investments and debt investments); current lease liabilities 2,498,643K; non-current lease liabilities 2,880,152K (Note 7); cash and cash equivalents 108,900,587K; short-term investments 313,407,682K (Note 4); 5,693,585,848 Class A ordinary shares outstanding
- Zoya PDD Holdings stock page (2026): rates PDD 'not Shariah-compliant' based on PDD Holdings Inc.'s most recent financial reports (AAOIFI guidelines); quotes FY2025 revenue 431,845,713,000 and interest income 25,583,848,000 (5.92% of the combined total)
- Finnhub PDD live market data (Oct 2, 2026): NASDAQ (XNAS), price ~$76.5, market cap ~$111.72B - live quote, no delisting
Screened 2026-10-02 from published company figures and market data. Figures change; this page is educational, not financial advice and not a religious ruling.
Screened with our two-gate Shariah screening methodology (business-activity gate, then AAOIFI-style financial ratios).