BRIEF: Dida changes auditor from Deloitte to local Hong Kong company

Ride sharing company Dida Inc. (2559.HK) said on Monday it has changed its auditor from global firm Deloitte to the locally based RSM Hong Kong. Following the switch, RSM will become the auditor for Dida’s 2024 financial results.

Dida said its board “has been considering the engagement of a more cost-effective audit service” since Deloitte completed its audit of the company’s financial results for 2023.

It added that Deloitte previously raised issues in a Nov. 6 letter to Dida’s audit committee “regarding certain prepayments made by the company for purchasing advertising services.” It said the audit committee later discussed the matter with company management and determined that “the relevant advertising services and prepayment are rational commercial activities.”

Dida’s stock was down 3.3% at HK$2.03 in Tuesday afternoon trade after the announcement. The stock has lost about two-thirds of its value from its Hong Kong IPO price of HK$6 in late June.

By Doug Young

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