Pinduoduo posts 2Q results, unveils "10 Billion Agriculture Initiative”
August 24 2021 - 7:23AM
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.
For more information on Pinduoduo news and industry trends,
please visit the content hub
at https://stories.pinduoduo-global.com.
For media inquiries, please contact internationalmedia@pinduoduo.com.
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