For the first time reporting profit after 3 years of listing, the Chinese company immediately announced to donate all 1 quarter profits

One of China’s biggest tech companies has pledged to donate all of its profits for the past quarter to China’s rural development projects. The move comes as Chinese President Xi Jinping has called for the establishment of a new system for the sake of “common prosperity” in the entire society.

Specifically, the e-commerce company Pinduoduo on Tuesday pledged to donate all of the $372 million it earns in the three months to the end of June 30, contributing to the development of the agricultural industry and other areas. China’s countryside. In total, they are expected to donate 10 billion yuan ($1.5 billion) to such purposes.

“This is an important and challenging task. We will persevere to the end,” said Chen Lei, President and CEO of Pinduoduo.

The decision is significant for the Nasdaq-listed company as it is the first time it has announced a profit as a public company.

Pinduoduo has never paid a dividend since listing three years ago. But their shares have more than tripled, delivering high returns for shareholders.

The company’s shares rose 22% in New York on Tuesday following the release of the results.

Pinduoduo’s donation move follows a similar charitable pledge that internet and gaming company Tencent made last week. Specifically, Tencent said it will invest 50 billion yuan ($7.7 billion) to achieve Xi Jinping’s goal of “common prosperity” for all. The company says it will help increase incomes for the poor and tackle inequality in education and a number of other initiatives.

In Tuesday’s statement, Pinduoduo also publicized its continued support for the government’s social activities. The company is also proud to share the praise it received earlier this year from the government for its contributions to a major campaign to eradicate poverty – a key policy goal of Mr. Xi Jinping.

Pinduoduo’s announcement also comes days after the government launched an investigation into the relationship between businesses and local authorities in Hangzhou, Alibaba’s hometown.

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

However, the gap between Pinduoduo and Alibaba is still quite far. Pinduoduo holds about 10% of the market share, behind Alibaba at 53% and competitor JD.com at 19%, according to estimates by Huachuang Securities.

But the company overtook its biggest competitor in at least one way: Pinduoduo had 850 million active users in the 12 months through June, surpassing Alibaba’s 828 million.