Shares of Nasdaq-listed Dada Nexus plunged nearly half on Watch Taming A Sex Man OnlineMonday after the on-demand delivery company said it found “suspicious” advertising revenue in an internal audit, casting doubt on the authenticity of Dada’s first profitability in the April quarter last year. In a regulatory filing, Dada said in the first three quarters of 2023, an estimated RMB 500 million in online advertising revenue plus another RMB 500 million in operating and support costs may have been overstated, and it will commission a third-party re-audit. The potential fraud event was announced a month after the chairman and chief financial officer of Dada resigned, with the former citing “personal reasons.” [DaDa Nexus filings]
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