Dada, which operates neighbourhood platform JD Daojia and delivery service Dada Now, said it’s enlisted independent advisers to assist with a review of the situation.
A high-profile JD.com Inc. unit disclosed it’s investigating “suspicious practices” including the overstatement of some 1 billion yuan ($187.10 million) of revenue and costs, triggering a 46% collapse in its share price.
Dada Nexus Ltd. said it may have overstated roughly 500 million yuan of sales from online advertising and marketing, and about the same amount of operating and support costs. It withdrew its revenue outlook for 2023 after discovering the issues during a routine audit, Dada said. JD.com slid 2% in Hong Kong on Tuesday.
