Pinduoduo and Temu owner PDD moves some operations to Ireland amid scrutiny of Chinese apps overseas
- PDD Holdings changed its principal executive offices in corporate filings to a Dublin address, but Pinduoduo said its head office would stay in Shanghai
- PDD has sought to distance its budget shopping app Temu, launched last year, from China as it rapidly expands to new markets amid booming popularity
In a March 22 filing with the US Securities Exchange Commission, the company listed the address for its “principal executive offices” as an office building in Dublin. Reports in February still listed the principal offices as in Shanghai.
However, Pinduoduo told Chinese media that its headquarters would remain in Shanghai, Sing Tao Daily reported on Thursday. The Dublin office would be used as the legal registration for PDD Holdings’ overseas business, it said.
The change may reflect an effort to distance Temu from China, where most of its operations are based, as the US and other countries ramp up scrutiny of Chinese apps.
The company has previously drawn attention to PDD’s incorporation in the Cayman Islands as evidence of its international footprint, although its principal address was still listed as in Shanghai until March.
PDD did not respond to a request for comment.
US accuses Shein, Temu of data risks in latest action targeting Chinese-backed apps
Temu subsequently started removing references to PDD Holdings, archives of its website show, a change noted by Financial Times columnist Ivy Yang on Twitter.
The app reached 7 million downloads last month and is currently the top free app on Apple’s App Store in the US, according to mobile intelligence firm Sensor Tower.
In February, the company ran a 30-second ad twice during the Super Bowl. That month it expanded to Canada and later to Australasia and Europe.
Budget shopping app Temu’s downloads jump nearly 60 per cent in first quarter
PDD reported revenue of 39.8 million yuan (US$5.8 million) in the fourth quarter last year, up 46 per cent year on year, amid a mixed post-Covid recovery in China.
The company’s annual report did not break down Temu’s earnings, saying due to its short operating history, it “did not have a material impact on our financial results in 2022”.