By Jiahui Huang
Chinese authorities fined PDD Holdings, after the parent of online bargain retailer Temu failed to submit tax-related information on time.
The State Taxation Administration of Shanghai Changning District fined the U.S.-listed company 100,000 yuan, equivalent to $14,365, as it failed to submit tax-related information required by regulators despite an extension, state-media Xinhua reported on Wednesday.
PDD Holdings failed to submit tax-related information on its employees as well as merchants that use its platform for the third quarter, the report said. Chinese tax regulators notified PDD Holdings in November and gave the company a grace period, but it failed to submit the information by the deadline, Xinhua reported.
The bureau's move came as PDD Holdings has been navigating a challenging business environment after years of breakneck growth. Its revenue growth has decelerated sharply as the company shifts its approach to focus on supporting merchants and the sustainable development of its platforms.
Weak consumer sentiment in China has also weighed on the company's performance. PDD's shares have lost 7.9% so far this year.
There have been some concerns about increasing pressure from Chinese regulators on tech and internet companies. Last week, China's top market regulator said that it has started a probe into Trip.com after initial investigations for allegedly abusing its dominant market position.
Write to Jiahui Huang at jiahui.huang@wsj.com
(END) Dow Jones Newswires
01-21-26 0437ET
