The Chinese eCommerce giant Pinduoduo saw a jump in monthly active users and active buyers over the past year, according to the company’s second-quarter financial results.
In a statement released on Tuesday (Aug. 24), Pinduoduo said it saw a 30 percent increase in active monthly users on its agriculture and interactive commerce platform, from 568.8 million in the second quarter of 2020 to 738.5 million this year. In addition, the number of active buyers on the platform rose 24 percent year over year, from 683.2 million in 2020 to 849.9 million for Q2 of 2021.
The announcement comes as the Shanghai company launched its “10 Billion Agriculture Initiative,” aimed at supporting rural revitalization and the modernization of agriculture. “Investing in agriculture pays off for everyone, because agriculture is the nexus of food security and quality, public health and environmental sustainability,” said Pinduoduo Chairman and CEO Lei Chen, who will oversee the initiative.
Tuesday’s report also showed Pinduoduo’s quarterly revenues at RMB23,046.2 (or $13.5 billion) an 89 percent increase from the previous year. The company’s operating profit for the quarter was RMB1,997.5 million ($309.4 million), compared to an operating loss of RMB1,639 for the same quarter of 2020.
“Our total revenues, excluding contribution from merchandise sales, for the second quarter 2021 increased 73 percent from the prior year,” said Tony Ma, the company’s vice president of finance. “Agriculture remains our strategic priority, and we are committed to patient and continued investment in agriculture.”
Earlier this year, Pinduoduo announced that it had become China’s largest eCommerce company, overtaking Alibaba.
“We saw six years ago that mobile is the only way to go. Therefore, we are the only major consumer internet company in the world that is mobile-only,” Chen, who had just been named chairman, said at the time. “The mobile internet fundamentally transforms the way humans interact with each other.”