PDD Holdings Inc. (PDD) - Not Halal (Non-Compliant)
PDD Holdings Inc. (PDD) is classified as Not Halal (Non-Compliant) according to AAOIFI Shariah screening standards. This assessment is based on business activity screening and financial ratio analysis using the AAOIFI methodology.
Business Activity Screen
Sector
Consumer Cyclical
Industry
Internet Retail
Result
Pass
Reason
The sector "Consumer Cyclical" and industry "Internet Retail" are not in the excluded categories.
Financial Ratios
Debt Ratio
Value: 0.4% | Threshold: 30% | Result: Pass
Cash & Interest-bearing Securities Ratio
Value: 42.2% | Threshold: 30% | Result: Fail
Non-Permissible Income Ratio
Value: 5.9% | Threshold: 5% | Result: Fail
Dividend Purification
Purification percentage: 5.91%.Based on the company's financial statements, approximately 5.91% of dividend income should be donated to charity for purification. This is derived from identified interest income (5.91% of total income). Some scholars may differ on the exact calculation method.
About PDD Holdings Inc.
PDD Holdings Inc., a multinational commerce group that owns and operates a portfolio of businesses. The company operates Pinduoduo platform, which provides various product categories and interactive shopping experiences; and Temu, an online platform, which enables merchants to streamline their manufacturing and commercial operations. The company was formerly known as Pinduoduo Inc. and changed its name to PDD Holdings Inc. in February 2023. PDD Holdings Inc. was incorporated in 2015 and is based in Dublin, Ireland.
Frequently Asked Questions
Is PDD Holdings Inc. (PDD) stock halal to invest in?
According to AAOIFI Shariah screening standards, PDD Holdings Inc. (PDD) is currently classified as Not Halal (Non-Compliant). This is based on both business activity and financial ratio screening.
Does PDD Holdings Inc. have any interest income?
PDD Holdings Inc.'s interest income ratio is 42.2% of total revenue. AAOIFI standards require this to be below 30%.
Based on the company's financial statements, approximately 5.91% of dividend income should be donated to charity for purification. This is derived from identified interest income (5.91% of total income). Some scholars may differ on the exact calculation method.
Uses quarterly data
About PDD Holdings Inc.
PDD Holdings Inc., a multinational commerce group that owns and operates a portfolio of businesses. The company operates Pinduoduo platform, which provides various product categories and interactive shopping experiences; and Temu, an online platform, which enables merchants to streamline their manufacturing and commercial operations. The company was formerly known as Pinduoduo Inc. and changed its name to PDD Holdings Inc. in February 2023. PDD Holdings Inc. was incorporated in 2015 and is based in Dublin, Ireland.
IrelandNASDAQConsumer Cyclical
Screened using AAOIFI Standard No. 21 on October 20, 2026. Financial ratios compared against market capitalization. Different methodologies may produce different results. Learn how we screen.
Screened using AAOIFI Shariah Standard No. 21 (3 ratios). Debt and interest-bearing deposits must each be under 30% of market capitalization, and non-permissible income under 5% of total income. This screening is for educational purposes only and does not constitute a fatwa or religious ruling. Results are based on publicly available financial data and automated analysis. Users should consult qualified Islamic scholars and financial advisors for personal investment decisions. Financial data may be delayed or incomplete. Past compliance does not guarantee future status.
Verdict history
Free with an account.
Status changed from Questionable to Not Halalon-demand screening
Dates are when Mizaan recorded the change. Tracked and watched stocks are re-checked weekly; other stocks are re-screened on demand.
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Frequently Asked Questions
According to AAOIFI Shariah screening standards, PDD Holdings Inc. (PDD) is currently classified as Not Halal (Non-Compliant). This is based on both business activity and financial ratio screening.
PDD Holdings Inc.'s interest income ratio is 42.2% of total revenue. AAOIFI standards require this to be below 30%.
PDD is screened using AAOIFI Standard No. 21, which involves two checks: business activity screening (ensuring the company's core business is permissible in Islam) and financial ratio screening (checking debt, interest income, and cash ratios against defined thresholds). AAOIFI is the most widely recognized standard for Islamic finance.
PDD Holdings Inc.'s compliance status is reviewed whenever new financial data becomes available, typically after quarterly or annual earnings reports. Market cap changes can also affect financial ratio screening results. Mizaan refreshes screening data periodically to reflect the latest filings.
You can save PDD to your Mizaan portfolio to track its compliance status over time. Mizaan will update the screening whenever new financial data is available, so you always have the latest result.
Dividends from PDD Holdings Inc. require purification. Approximately 5.91% of dividend income should be donated to charity to cleanse earnings from non-permissible sources such as interest income.
Yes, Zakat is generally due on stock holdings. The calculation depends on your school of thought (madhab) and whether you hold shares for trading or long-term investment. Use Mizaan's Zakat calculator to compute your obligation based on your specific madhab and holding intent.
What guidelines are used to determine if PDD stock is Shariah-compliant?
PDD is screened using AAOIFI Standard No. 21, which involves two checks: business activity screening (ensuring the company's core business is permissible in Islam) and financial ratio screening (checking debt, interest income, and cash ratios against defined thresholds). AAOIFI is the most widely recognized standard for Islamic finance.
How often is PDD Holdings Inc. stock reviewed for Shariah compliance?
PDD Holdings Inc.'s compliance status is reviewed whenever new financial data becomes available, typically after quarterly or annual earnings reports. Market cap changes can also affect financial ratio screening results. Mizaan refreshes screening data periodically to reflect the latest filings.
How can I stay updated on PDD Holdings Inc.'s compliance status?
You can save PDD to your Mizaan portfolio to track its compliance status over time. Mizaan will update the screening whenever new financial data is available, so you always have the latest result.
Are dividends from PDD Holdings Inc. stock considered halal?
Dividends from PDD Holdings Inc. require purification. Approximately 5.91% of dividend income should be donated to charity to cleanse earnings from non-permissible sources such as interest income.
Do I need to pay Zakat on my PDD Holdings Inc. shares?
Yes, Zakat is generally due on stock holdings. The calculation depends on your school of thought (madhab) and whether you hold shares for trading or long-term investment. Use Mizaan's Zakat calculator to compute your obligation based on your specific madhab and holding intent.
