PDD said its operating entity, Shanghai Xunmeng Information Technology, was fined 100,000 yuan (HK$112,008) for failing to submit required tax-related information, the State Administration of Taxation Shanghai Changning District Taxation Bureau said on Thursday, according to Xinhua.
PDD is a US-listed Chinese e-commerce company, best known for operating the Pinduoduo platform, which primarily serves price-sensitive consumers through discounted online retailing.
The company's US-listed shares rose about 7 percent in pre-market trading following the announcement.
Under the Electronic Commerce Law of the People's Republic of China and related administrative measures, internet platform companies that fail to submit required tax-related information may be ordered to rectify within a specified period, face fines of between 20,000 yuan and 100,000 yuan, or, in serious cases, be ordered to suspend operations and fined up to 500,000 yuan.
Cynthia ZHONG
