Pinduoduo posts 2Q results, unveils "10 Billion Agriculture Initiative”
SHANGHAI, China, Aug. 24, 2021 (GLOBE NEWSWIRE) -- Pinduoduo Inc. (PDD: NASDAQ), China’s largest agricultural platform, posted a 89% gain in second-quarter revenue as more consumers shopped through the platform.
Revenue for the three months ended June 30, 2021 rose to 23.0 billion yuan (US$3.6 billion), the company said in a filing. The number of users who placed orders through Pinduoduo in the trailing 12-month period rose to 849.9 million.
Pinduoduo at the same time announced that it would launch a dedicated “10 Billion Agriculture Initiative” (henceforth “Initiative”) to face and address critical needs in the agricultural sector and rural areas.
Profits from the second quarter and any potential profits in future quarters would be allocated to the Initiative. The Initiative would not be driven by profit or commercial goals, but strive to facilitate the advancement of agritech, promote digital inclusion, and provide agritech talents and workers with greater motivation and a sense of achievement.
Although the “10 Billion Agriculture Initiative” will clearly impact the short-term earnings per share for shareholders, the Initiative has already received the support and approval of the Board of Directors, and will be personally overseen by Chairman and CEO Chen Lei. The company will subsequently convene a shareholders’ meeting to seek the support of majority shareholders.
“We believe that investing in agriculture will reap outsized social benefits because agriculture is the nexus of food security and quality, public health and environmental sustainability,” said Chen Lei. “We are able to give back because our users have placed their trust in us. We are grateful for their consistent support and will continue to do our best to serve them and all our stakeholders.”
Pinduoduo has made improving agriculture and helping rural communities a core part of its strategy since the very beginning. Earlier this year, Pinduoduo was among three technology companies commended by the central government for their contributions to China’s poverty alleviation efforts.
Pinduoduo’s agriculture-related initiatives include improving downstream market access for farmers and helping them to build brands, training younger talent to set up agri-businesses, and revamping midstream logistics infrastructure to reduce waste, lower costs and speed up the delivery of agricultural food products.
The company also works with industry partners and universities to develop and implement upstream technology to increase agricultural productivity.
To help farmers to sell better, Pinduoduo is promoting high-quality produce from more than 400 growing regions as part of its annual harvest festival, including specialties from 100 of China’s geographical indications.
Pinduoduo kicked off its yearly Smart Agriculture Competition this month, inviting participants from around the world to take part in a precision farming contest. The aim is to attract more young talent to apply their skills in agriculture and develop technology that can help farmers boost productivity and income, as well as grow more nutritious food with less environmental impact.
About Pinduoduo Inc.
Pinduoduo is a mobile-only marketplace that connects millions of agricultural producers with consumers across China. Pinduoduo aims to bring more businesses and people into the digital economy so that local communities can benefit from the increased productivity and convenience through new market opportunities.
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