JD.com Unit Dives 46% After Disclosing ‘Suspicious’ Revenue
- Dada discloses it may have overstated both revenue and cost
- The company is one of JD’s faster-growing subsidiaries
A Dada Nexus delivery driver in Shanghai.
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A high-profile JD.com Inc. unit disclosed it’s investigating “suspicious practices” including the overstatement of some 1 billion yuan ($140 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.