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.
“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 Chinese parent said in a Hong Kong filing.
JD Daojia and Dada Now, which are often mentioned on JD.com’s earnings conference calls, grew in popularity during the Covid years as consumers sought to buy closer to home. But the worsening economic environment and keen competition from Meituan and Alibaba Group Holding Ltd. may have begun to stall their growth.
JD.com representatives referred Bloomberg News to the twin statements and declined further comment.
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