Pinduoduo Pledges $1.5 Billion in Profit to Chinese Farmers
- Revenue missed estimates even as it turned profitable
- Pinduoduo’s annual buyers reach 849.9 million in June quarter
Photographer: Chan Long Hei/Bloomberg
Pinduoduo Inc. posted its first-ever quarterly net profit as a public company, pledging Tuesday to donate those and future earnings toward the development of agriculture till it’s given away a total of 10 billion yuan ($1.5 billion).
China’s largest online retailer by consumers reported sales jumped a less-than-expected 89% to 23 billion yuan in the June quarter, compared with the 26.7 billion yuan average of analyst estimates. Net income was 2.4 billion yuan, compared with net loss of 899 million yuan a year earlier. The company said the philanthropic initiative -- already approved by the board of directors -- will be used to address critical needs in the agricultural and rural areas. Pinduoduo’s American Depositary Receipts surged as much as 19% in New York.