PDD
PDD Holdings (Pinduoduo/Temu)
Is PDD Halal?
E-commerce platform — 2025 liquidity and conservative income screens fail.
What You Should Know
PDD's 2025 Form 20-F reports no interest-bearing debt, but cash plus interest-bearing securities/assets of 67.03% and a conservative interest-and-investment-income ratio of 5.92%. Online commerce technology is generally permissible in principle, while merchant categories, platform content, financial services, VIE restrictions, and purification remain qualitative issues.
⚠️ Concerns
- •Liquidity/assets is 67.03%
- •Conservative interest and investment income was 5.92% of revenue
- •Merchant listings and prohibited-product revenue are not separately disclosed
- •Payment, lending, data, labor, consumer-protection and VIE risks
Current quantitative Sharia screen
Based on 20-F figures for the period ended 2025-12-31; calculated 2026-07-14.
0 / 90,095.139
60,389.279 / 90,095.139
15,572.577 / 90,095.139
3,658.442 / 61,753.116
- Financial
- Fails
- Overall
- Fails
Debt/assets is 0.00%, liquidity/assets is 67.03%, receivables plus cash/assets is 17.29%, and the conservative income ratio is 5.92%; liquidity and income exceed the examined FTSE limits.
- Financial
- Fails
- Overall
- Fails
Debt and receivables-plus-cash are below the examined MSCI limits, but liquidity/assets is 67.03%, above the 33.33% limit.
- Financial
- Fails
- Overall
- Fails
Liquidity/assets is 67.03%, above the examined Malaysia 33% limit; this is not an official SAC classification.
- Financial
- Not calculated
- Overall
- Not calculated
A licensed, reproducible 24- or 36-month market-cap series is not stored.
Business-activity disclosure
PDD operates online marketing, transaction-service, and e-commerce platforms, including Pinduoduo and Temu; ordinary commerce technology is generally permissible in principle.
Limitation: The filing does not provide a school-neutral prohibited-revenue numerator for merchant categories, financial products, lending, advertising, or platform content.
Purification
PDD reports interest and investment income of USD 3,658.442 million, or 5.92% of 2025 revenue. This conservative upper bound exceeds the examined FTSE income threshold, while the exact investor purification treatment remains methodology- and scholar-dependent.
Inputs, assumptions and primary sources
- Amounts use the USD column in PDD's 2025 Form 20-F and are USD millions.
- No interest-bearing debt balance is reported in the consolidated 2025 balance sheet; operating lease liabilities are not treated as interest-bearing debt.
- Interest-bearing securities are PDD's reported total short-term investments, including time deposits, held-to-maturity debt securities, available-for-sale debt securities, and other debt investments; equity securities are excluded.
- Revenue and the conservative investment-income upper bound use the year ended December 31, 2025. Accounts receivable is not separately reported as a consolidated net balance in the selected filing data.
This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.
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