New Delhi: China’s biggest company began to make the habit of releasing their income.
In the latest example, Pinduoduo Inc., an e-commerce company is known for giving large discounts to customers when they buy shared products, saying it will donate all the first net profit since Go Public to support farmers and agricultural areas of the country.
The company will continue to provide income at least to the contribution of 10 billion yuan ($ 1.5 billion).
“Improving agriculture has been in front and our business center from the beginning.
Agriculture touches everyone’s daily life and has a relatively low digitization rate,” Chen Executive Officer Chen Lei told analysts on post-results calls.
“We want to bring more farmers and work with them to improve their lives and livelihoods.” The announcement of the PDD came after a similar range of contributions from the largest company in the country and the richest people.
Tencent Holdings Ltd, the most valuable Chinese company, said last week would double the amount of money allocated for social responsibility programs to around $ 15 billion.
PDD Colin Huang Co-Founder previously promised to examine personally stacking into science.
President Xi Jinping further emphasized the idea of ”general prosperity” when the Communist Party tried to overcome the country’s wealth gap.
The regulator forces most private education companies to be converted into non-profit, while they have encouraged other technology players to increase payment for low workers at the expense of income.
The Honestly PDD decision targets one of XI’s top priorities: relieving rural poverty.
In the US, the company used to contribute charity from corporate profits, but the practice decreased after criticism that the CEO used shareholder money for their own glory.
Investors have no doubts about the promise of PDD.
Stocks jumped 22% in US trade after the company launched the news and profit of surprises for the quarter.
“This step shows the willingness of the company to take social responsibility and explore new opportunities in blue sea, even though the profit margin can be reduced again by this investment,” analyst at China International Capital Corp wrote in a research note.
“We hope that 2h21 profit is non-GAAP to rest even, reflecting all the benefits will be invested in the initiative.”
The country now comes before profit because of cos in China xi
