Pinduoduo Inc., China’s largest agriculture platform, reported third-quarter financial results last Friday and pledged to deepen its investment in R&D and talent development to support long-term sustainable development.
● R&D expenses rose 34% from a year earlier to 2.42 billion yuan ($376 million) for the July-September quarter.
● Sales and marketing expenses declined to 10.05 billion yuan ($1.56 billion).
● Net income attributable to ordinary shareholders was 1.64 billion yuan ($245.5 million), compared with a net loss of 784.7 million yuan a year ago.
● The number of users who placed orders in the trailing 12-month period rose to 867.3 million, an increase of 19% from a year ago.
“We are placing more focus on investments in R&D,” 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'.”
Pinduoduo has made investing in food and agricultural systems a key strategic priority, which would benefit consumers, farmers, and society.
“The increased focus on R&D plays to the strengths of our management, given our training and backgrounds in engineering,” Chen said.
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.
Commenting on talent development, Chen said that the company has seen a younger generation of leaders emerge and mature quickly, and will be giving them more opportunities to take on responsibilities so they can gain experience.
“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.”