JD.Com's Dada identifies 'suspicious practices' in internal audit

Dada Nexus

09/01/2024 02:53

Jan 9 (Reuters) - China's e-commerce group JD.Com
 9618.HK  said its unit Dada Nexus  DADA.O  had identified
"certain suspicious practices" in an internal audit that may
cast doubt on the unit's online advertising, marketing services
revenues and operation costs.
    Dada said in a separate statement that an estimate of about
500 million yuan ($70 million) of revenues from online
advertising and marketing services may have been overstated for
the first three quarters of 2023. 
    The on-demand retail and delivery operator also said an
estimated 500 million yuan of operations and support costs may
have also been overstated. It gave no further details.  
    The news sent Dada's shares down as much as 49.5% to $1.59
on Monday, the lowest and biggest daily percentage decline since
its debut in June 2020.
    JD.Com's Hong Kong shares fell as much as 1.2% on Tuesday
morning, tracking a 2.7% fall in its U.S. shares  JD.O  on
Monday.
    Dada will conduct an independent review with the assistance
of independent professional advisers, JD.Com said in a filing to
the Hong Kong bourse.

    ($1 = 7.1592 yuan)

 (Reporting by Donny Kwok; Editing by Anne Marie Roantree and
Sonali Paul)
 ((donny.kwok@thomsonreuters.com; +852 3462 7745))