China’s Pinduoduo Inc on Friday reported better-than-expected quarterly revenue, as more people shopped online due to a resurgence in Covid-19 cases in parts of the country.

US-listed shares of the Shanghai-based company rose 7 percent in trading before the bell.

As China fights its worst outbreak of Covid-19 infections, its uncompromising “zero-Covid” policy has placed hundreds of millions of people under strict lockdown, keeping them dependent on e-commerce platforms for groceries and other items.

Pinduoduo’s business model allowing buyers to avail of greater discounts when they purchase products in groups has helped it to attract consumers with less disposable income, especially in lower-tier cities, and challenge rivals including Alibaba and JD.com.

Pinduoduo’s total revenue rose 7 percent to 23.79 billion yuan ($3.55 billion) in the first quarter, compared with estimates of 20.61 billion yuan, according to IBES data from Refinitiv.

The company’s net income attributable to ordinary shareholders was 2.6 billion yuan during the quarter ended March 31, compared with a loss of 2.91 billion yuan a year ago.

Learn more:

China’s Pinduoduo Revenue Disappoints as Pandemic-Led Shopping Boom Wanes

The Chinese e-commerce platform is facing a challenging environment as shoppers have returned to stores and Chinese authorities are cracking down on large tech companies.

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