(Yicai Global) Dec. 11 -- Merit Interactive Network Technology's shares have slumped after the Chinese software firm said that its advertising unit may not be able to recover its accounts receivable from bankrupt e-commerce startup Taojiji. 

Merit Interactive's [SHE: 300766] stock price fell 4.7 percent to CNY31.20 (USD4.40) by noon. 

Taojiji owes Yunmeng Digital Technology CNY73.4 million (USD10.4 million) from services that started in March and there's a risk of losing it all, the Hangzhou-based parent said in a statement yesterday. When excluding one-offs, that is nearly four times the parent's net profit in the third quarter, according to its earnings.

Taojiji has declared bankruptcy, founder Zhang Zhengping told employees in a letter on Dec. 8. The startup, which mimicked Pinduoduo's aggressive expansion strategy in third and fourth-tier cities, has failed to pay its merchants and staff, and its accounts are frozen.

The Shanghai-based e-commerce company used its accounts payable for marketing and customer acquisition, an insider told Yicai Global.

Editor: Emmi Laine