JD.Com's US-listed shares fall after its unit discloses 'suspicious' revenue

Dada Nexus

09/01/2024 10:37

** U.S.-listed shares of Chinese e-commerce group JD.Com
 JD.O  fall 3% to $25.18 premarket
    ** JD says its unit Dada Nexus  DADA.O  has 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 says an estimate of about 500 mln yuan ($70 mln) of
rev from online advertising and marketing services may have been
overstated for the first three quarters of 2023
    ** Separately, brokerage Citigroup on Monday downgraded DADA
to "sell" from "buy", citing an uncertain outlook following the
audit; DADA shares fell over 45% on Monday
    ** JD's Hong Kong shares ended down over 3%; DADA shares
were up 5.57% at $1.8 in U.S. premarket trade
    ** JD set to fall for fourth straight session if losses hold
    ** JD's U.S. shares fell close to 50% in 2023, while DADA
lost over 50% 

 (Reporting by Shashwat Chauhan in Bengaluru)
 ((Shashwat.Chauhan@thomsonreuters.com;))