Dada Nexus sinks after audit finds ‘certain suspicious practices’

Dada Nexus announced earlier today that, in the course of its routine internal audit, “certain suspicious practices were identified that may cast doubt on certain revenues” from Dada‘s online advertising and marketing services, together with Dada’s operations and support costs, for the first three quarters of 2023. The audit committee of Dada’s board has determined to conduct an independent review with the assistance of independent professional advisers. “The Company has always been and will remain committed to maintaining high standards of corporate governance and internal controls, as well as transparent and timely disclosure in compliance with the applicable rules and regulations,” it said in a regulatory filing. Shares of Dada Nexus are down 39% to $1.93 in afternoon trading.