Dada Nexus Stock Plummets 46% Amid Fraud Inquiry
The JD.com subsidiary found questionable revenue and costs totaling 1 billion yuan in an internal audit, leading to a significant drop in its stock value.
- Dada Nexus, the on-demand delivery unit of JD.com, has lost 46% of its US stock value overnight following an internal audit revealing potential fraud.
- The audit found 1 billion yuan (US$140 million) worth of questionable revenue and costs in its books for the first three quarters of 2023.
- The questionable amount includes 500 million yuan of online advertising and marketing service revenue and another 500 million yuan of operations and support costs.
- Dada Nexus chairman Xin Lijun stepped down from his post in December 2023, and the company's CFO also resigned.
- Dada Nexus has reported the potential fraud case to local police and is working with third-party agencies for an independent review.
South China Morning Post 
The Information 
CNA 
