![JD.com’s on-demand delivery unit, Dada Nexus, loses 46 per cent of US stock value overnight amid internal inquiry into potential fraud](https://www.naphjas.com/wp-content/uploads/2024/01/c047f84e-6340-412a-9bce-843911227d91_14f4c464.jpg)
09 Jan JD.com’s on-demand delivery unit, Dada Nexus, loses 46 per cent of US stock value overnight amid internal inquiry into potential fraud
Nasdaq-listed Dada said an estimated 500 million yuan of online advertising and marketing service revenue plus another 500 million yuan of operations and support costs for the first three quarters of 2023 may have been overstated.
![Dada Nexus chairman Xin Lijun stepped down from his post “for personal reasons” on December 19, 2023. That came more than a month after he was removed as chief executive of JD Retail in November. Photo: Bloomberg](https://cdn.i-scmp.com/sites/default/files/d8/images/canvas/2024/01/09/933378cf-3ccc-42bf-a060-3d2efc2145c7_55c83460.jpg)
A JD.com representative referred the South China Morning Post to Dada’s US filing and declined to provide further details. Dada did not immediately respond to a request for comment on Tuesday.
Dada had earlier said it was working with third-party agencies, including an accounting company and a law firm, to conduct an independent review of the case.
In separate filings with regulators, both JD.com and Dada said they are committed to maintaining high corporate-governance standards and internal controls.
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Founded in Shanghai in 2014, Dada runs two core businesses: parent JD.com’s on-demand retail platform JD Daojia and its own Dada Now. Both these operations work with bricks-and-mortar retailers and merchants on fulfilment, including delivery of online orders to consumers in under roughly an hour.
JD Daojia operates in more than 1,700 counties, districts and cities across mainland China, while Dada Now does business in 2,700 domestic locations.
In November, Dada reported that total third-quarter revenue rose 20.4 per cent year on year to 2.9 billion yuan.