Arab Press

بالشعب و للشعب
Tuesday, Aug 26, 2025

A Chinese technology giant is donating all its profits to charity

A Chinese technology giant is donating all its profits to charity

One of China's biggest tech firms has pledged to hand over its entire profit for the last quarter to rural development projects in the country as Beijing steps up the pressure for wealth redistribution.
E-commerce firm Pinduoduo (PDD) on Tuesday pledged to donate the $372 million it made in the three months through June 30 toward the development of China's agricultural sector and rural areas. In total, it expects to donate 10 billion yuan ($1.5 billion) toward such causes.

"This is an important and challenging task, which we will invest in patiently," said Chen Lei, chairman and CEO of Pinduoduo, adding in a statement that he would personally oversee the project.

The decision is significant for the Nasdaq-listed company, which posted a profit for the first time as a public company in the June quarter.

Pinduoduo has never paid a dividend since it listed three years ago. But its stock has more than tripled, delivering handsome returns to shareholders.

The company's stock soared 22% in New York on Tuesday after earnings.

The donation move by Pinduoduo follows a similar charitable pledge that internet and gaming company Tencent (TCEHY) made last week, when it announced it would put 50 billion yuan ($7.7 billion) toward achieving Beijing's goal of "common prosperity" for all people. The company said it would support increasing income for the poor and addressing education inequality, among other initiatives.

That phrase — "common prosperity" — is a historically significant one in China, and was used recently by President Xi Jinping as he promised a new push to redistribute wealth in the country.

His mention of the term in the context of wealth redistribution echoed its use by Chairman Mao Zedong in the middle of the last century. The former Communist leader advocated "common prosperity" back then to mobilize poor peasants and take power away from the rural elites — rich landlords and farmers.

Xi's edict has piled even more pressure on the country's richest citizens and businesses, which are facing tougher regulations as Beijing reigns in the power of the private sector.

In its statement Tuesday, Pinduoduo also publicized its ongoing support of government social causes. It pointed to a commendation it received earlier this year from the ruling Communist Party for contributions to a major campaign to alleviate poverty — a key policy goal for Xi.

Pinduoduo's announcement also comes days after the government launched a probe into the relationship between businesses and local governments in Hangzhou, the home of Alibaba (BABA).

Founded in 2015 by Colin Huang, Pinduoduo has quickly grown into a formidable e-commerce company.

It's still a long way from surpassing industry leader Alibaba in market share. Pinduoduo holds about 10% of the market, behind Alibaba (BABA)'s 53% and competitor JD.com (JD)'s 19%, according to estimates by Guiyang-based Huachuang Securities.

But the company has edged out its biggest competitor in at least one important way: It had 850 million active users in the twelve months through June, surpassing Alibaba's 828 million.
Newsletter

Related Articles

Arab Press
0:00
0:00
Close
Iran Faces Escalating Water Crisis as Protests Spread
More Than Half a Million Evacuated as Typhoon Kajiki Heads for Vietnam
HSBC Switzerland Ends Relationships with Over 1,000 Clients from Saudi Arabia, Lebanon, Qatar, and Egypt
Sharia Law Made Legally Binding in Austria Despite Warnings Over 'Incompatible' Values
Dogfights in the Skies: Airbus on Track to Overtake Boeing and Claim Aviation Supremacy
Tim Cook Promises an AI Revolution at Apple: "One of the Most Significant Technologies of Our Generation"
Are AI Data Centres the Infrastructure of the Future or the Next Crisis?
Miles Worth Billions: How Airlines Generate Huge Profits
Zelenskyy Returns to White House Flanked by European Allies as Trump Pressures Land-Swap Deal with Putin
Beijing is moving into gold and other assets, diversifying away from the dollar
Trump Backs Putin’s Land-for-Peace Proposal Amid Kyiv’s Rejection
Zelenskyy to Visit Washington after Trump–Putin Summit Yields No Agreement
Iranian Protection Offers Chinese Vehicle Shipments a Cost Advantage over Japanese and Korean Makers
United States Sells Luxury Yacht Amadea, Valued at Approximately $325 Million, in First Sale of a Seized Russian Yacht Since the Invasion of Ukraine
Saudi Arabia accelerates renewables to curb domestic oil use
Cristiano Ronaldo and Georgina Rodríguez announce engagement
Asia-Pacific dominates world’s busiest flight routes, with South Korea’s Jeju–Seoul corridor leading global rankings
Private Welsh island with 19th-century fort listed for sale at over £3 million
Sam Altman challenges Elon Musk with plans for Neuralink rival
Australia to Recognize the State of Palestine at UN Assembly
The Collapse of the Programmer Dream: AI Experts Now the Real High-Earners
Armenia and Azerbaijan to Sign US-Brokered Framework Agreement for Nakhchivan Corridor
British Labour Government Utilizes Counter-Terrorism Tools for Social Media Monitoring Against Legitimate Critics
WhatsApp Deletes 6.8 Million Scam Accounts Amid Rising Global Fraud
Texas Residents Face Water Restrictions While AI Data Centers Consume Millions of Gallons
India Rejects U.S. Tariff Threat, Defends Russian Oil Purchases
United States Establishes Strategic Bitcoin Reserve and Digital Asset Stockpile
Thousands of Private ChatGPT Conversations Accidentally Indexed by Google
China Tightens Mineral Controls, Curtailing Critical Inputs for Western Defence Contractors
JPMorgan and Coinbase Unveil Partnership to Let Chase Cardholders Buy Crypto Directly
British Tourist Dies Following Hair Transplant in Turkey, Police Investigate
WhatsApp Users Targeted in New Scam Involving Account Takeovers
Trump Deploys Nuclear Submarines After Threats from Former Russian President Medvedev
Germany’s Economic Breakdown and the Return of Militarization: From Industrial Collapse to a New Offensive Strategy
Germany Enters Fiscal Crisis as Cabinet Approves €174 Billion in New Debt
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
President Trump Diagnosed with Chronic Venous Insufficiency After Leg Swelling
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
Iranian President Reportedly Injured During Israeli Strike on Secret Facility
Kurdistan Workers Party Takes Symbolic Step Towards Peace in Northern Iraq
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
AI Raises Alarms Over Long-Term Job Security
Russia Formally Recognizes Taliban Government in Afghanistan
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
×