Pinduoduo increases its focus on R&D, steps up investments in agriculture and agritech industry
SHANGHAI, China, Nov. 26, 2021 (GLOBE NEWSWIRE) — Pinduoduo Inc. (NASDAQ: PDD), China’s largest agriculture platform, pledged to deepen its investment in research and development (R&D) and agricultural technology to raise productivity and promote long-term sustainable development.
The company posted 21.5 billion yuan ($3.3 billion) in revenue for the three months ended September, while the number of users who placed orders in the trailing 12-month period rose to 867.3 million.“We are placing more focus on investments in R&D, away from the previous emphasis on sales and marketing in our first five years,” said Chen Lei, Chairman and Chief Executive Officer of Pinduoduo. “We want to leverage our strength in technology to deepen our digital inclusion efforts in agriculture, and will allocate all profits from the third quarter to the ’10 Billion Agriculture Initiative’.”“The increased focus on R&D plays to the strengths of our management, given our training and backgrounds in engineering,” Chen added. He also noted that the company will promote more young leaders to take on more critical roles.
Pinduoduo has made investing in food and agricultural systems a key strategic priority to improve productivity and efficiency, which would benefit consumers, farmers, and society.The company announced in August that it would allocate profits from the second quarter and any potential future profits to its “10 Billion Agriculture Initiative” which is dedicated to addressing critical needs in the agricultural sector and rural areas.
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 talent with greater motivation and a sense of achievement. The Initiative was approved by Pinduoduo’s shareholders at the end of September. “Technology and talent are key to promoting agricultural modernization, and we are taking a systematic approach to encourage more young talent to consider a career in agriculture,” said Chen.
Pinduoduo to promote more young leaders to critical roles
SHANGHAI, China, Nov. 26, 2021 (GLOBE NEWSWIRE) — Pinduoduo Inc. (NASDAQ: PDD), China’s largest agriculture platform, said it will promote more young leaders to encourage creativity and innovation.
The company, which turned six in October, is seeing the younger generation maturing quickly as leaders, and will be giving them more opportunities to take on responsibilities so they can gain experience, according to Chen Lei, Chairman and Chief Executive Officer.“Young talent constantly innovate and bring creativity and vigor. They are shaping the future of this company,” Chen said. “You will see more of them taking on critical roles in the next six to 12 months as we continue to create opportunities for them to step up.”
Chen was appointed CEO on July 1, 2020, and Chairman on March 17, 2021. He made the comments as Pinduoduo reported third quarter results that showed 21.5 billion yuan ($3.3 billion) in revenue and 867.3 million users who placed orders in the trailing 12-month period. The company reiterated its plans to step up investment in agricultural technology. Commenting on his past year as CEO, Chen said that the transition has been smooth, and the company’s performance has been in line with expectations. The company is increasing R&D efforts for sustainable long-term development, he added.
Pinduoduo Announces Third Quarter 2021 Unaudited Financial Results
SHANGHAI, China, Nov. 26, 2021 (GLOBE NEWSWIRE) — Pinduoduo Inc. (“Pinduoduo” or the “Company”) (NASDAQ: PDD), China’s largest agriculture and interactive commerce platform, today announced its unaudited financial results for the third quarter ended September 30, 2021.
Third Quarter 2021 Highlights
- Total revenues in the quarter were RMB21,505.8 million (US$13,337.6 million), an increase of 51% from RMB14,209.8 million in the same quarter of 2020.
Average monthly active users2 in the quarter was 741.5 million, an increase of 15% from 643.4 million in the same quarter of 2020.
Active buyers3 in the twelve-month period ended September 30, 2021 was 867.3 million, an increase of 19% from 731.3 million in the twelve-month period ended September 30, 2020.
Operating profit in the quarter was RMB2,139.3 million (US$332.0 million), compared with operating loss of RMB1,295.7 million in the same quarter of 2020. Non-GAAP4 operating profit in the quarter was RMB3,260.7 million (US$506.1 million), compared with non-GAAP operating loss of RMB339.8 million in the same quarter of 2020.
Net income attributable to ordinary shareholders in the quarter was RMB1,640.0 million (US$254.5 million), compared with net loss of RMB784.7 million in the same quarter of 2020. Non-GAAP net income attributable to ordinary shareholders in the quarter was RMB3,150.2 million (US$488.9 million), compared with RMB466.4 million in the same quarter of 2020.
“We are placing more focus on investments in R&D, away from the previous emphasis on sales and marketing in our first five years,” said Mr. Lei Chen, Chairman and CEO of Pinduoduo. “We want to leverage our strength in technology to deepen our digital inclusion efforts in agriculture, and will allocate all profits from the third quarter to the ’10 Billion Agriculture Initiative’.””Meanwhile, we are seeing the younger generation maturing quickly and will promote more young leaders to critical roles in the next six to 12 months,” Mr. Chen added. “Our total revenues, excluding contribution from merchandise sales, grew by 55% on a year-over-year basis, to RMB21.4 billion in Q3 2021,” said Mr. Tony Ma, Vice President of Finance. “To lay the foundation for future sustainable growth, we are committed to expanding our investments in R&D and will invest patiently in agricultural technology.”
