Missfresh Finds 'Questionable Transactions' In Internal Review

(RTTNews) - Chinese grocery deliver service Missfresh Ltd. (MF) Friday said that an independent internal review found "questionable transactions" were carried out by its next-day delivery business unit in 2021.

The company said a review identified certain transactions carried out by the next-day delivery business unit in 2021 that exhibited characteristics of questionable transactions, such as undisclosed relationships between suppliers and customers, different customers or suppliers sharing the same contact information, and/or lack of supporting logistics information.

Due to this "questionable transactions," the company says that certain revenue associated with these reporting periods in 2021 may have been inaccurately recorded in the company's financial statements.

Missfresh said that all of the employees responsible for the question transactions had given notices of resignation before the review was complete, and it has no evidence that management-level executives were aware or involved in the questionable transactions.

The company also has terminated its relationships with suppliers and customers involved in the issue.