Chinese social commerce giant Pinduoduo reported a net profit of US$256.7 million in the third quarter of 2021, compared with a net loss of US$122.8 million during the same period a year ago. Meanwhile, its total revenue rose by 51% to US$3.3 billion.
Photo credit: Pinduoduo
Pinduoduo’s strong growth was mainly driven by its online marketing services, whose revenue increased by 44% to US$2.7 billion.
The company said it will zero in on investments in research and development, shifting away from its focus on sales and marketing in the past five years.
“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,” said Lei Chen, chairman and CEO of Pinduoduo.
The company will also be promoting more young leaders to critical roles in the next six to 12 months.
See also: The Pinduoduo model takes hold in India
Monthly active users increased to 741.5 million in Q3, up 15% from the same quarter in 2020, said Pinduoduo in a statement.
Currency converted from Chinese yuan to US dollar: US$1 = 6.3 yuan.
Editing by Collin Furtado and Eileen C. Ang
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