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Didi International Posts Income Decline Following Beijing’s Cybersecurity Probe

Didi International Posts Income Decline Following Beijing’s Cybersecurity Probe

Didi International Inc.

DIDI -8.18%

mentioned Wednesday its third-quarter revenues dropped 11.5% from the previous three months, after Chinese language regulators launched a cybersecurity probe into the ride-hailing agency and compelled a lot of its apps to be taken down.

Beijing-headquartered Didi additionally mentioned

Daniel Zhang,

the chairman and chief government of Alibaba Group Holding Ltd., has resigned from its board. He has been succeeded by

Yi Zhang,

a senior authorized director on the Chinese language e-commerce large who has beforehand labored at a number of worldwide legislation corporations.

Didi reported the equal of $6.7 billion in revenues for the three months ended Sept. 30 at present alternate charges, versus $7.6 billion within the three months ended June 30. Its China mobility enterprise—which incorporates its core ride-hailing operations—was the principle reason behind the decline. The corporate additionally posted a internet loss equal to $4.8 billion for the third quarter.

Didi went public on the New York Inventory Trade on June 30 after elevating $4.4 billion within the largest U.S. preliminary public providing by a Chinese language expertise firm since Alibaba’s blockbuster itemizing in 2014.

Shortly after its itemizing, China’s our on-line world regulator mentioned it was investigating Didi’s cybersecurity, and plenty of of Didi’s apps had been taken down from home app shops.

Costs of Didi’s American depositary receipts have plunged and hit contemporary file lows this week after a 180-day post-IPO lockup interval expired, permitting its early shareholders to pare their stakes. On Wednesday, the New York-listed shares closed at $4.94, round 65% under their IPO worth of $14.

Didi in early December mentioned it’s planning to delist from the U.S. and pursue an inventory in Hong Kong. The corporate is seeking to go public in Hong Kong through a “itemizing by introduction,” the Journal beforehand reported. That route allows firms whose shares already commerce on different exchanges to go public within the Asian monetary hub with out elevating new cash or issuing new shares.

For the 9 months ended Sept. 30, Didi posted revenues equal to $20.9 billion, up 40% from the identical interval a yr in the past, displaying how a lot development momentum it had earlier within the yr. The corporate’s September quarter revenues had been barely decrease than within the third quarter of 2020.

Write to Serena Ng at serena.ng@wsj.com

Copyright ©2021 Dow Jones & Firm, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

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