Didi’s Revenue Falls After Beijing’s Crackdown Hurts Its China Business

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The ride-hailing company’s China Mobility business—which includes its core ride-hailing operations—was the main reason for the decline.

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Didi reported revenue equivalent to $6.7 billion at current exchange rates for the three months ended September 30, compared to $7.6 billion in the three months ended June 30. Its China mobility business—which included its main ride-hailing operations—was the main reason for the decline. The company also reported a net loss equivalent to $4.8 billion for the third quarter.

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Didi went public on the New York Stock Exchange on June 30 after a Chinese technology company raised $4.4 billion in the biggest US initial public offering since Alibaba’s blockbuster listing in 2014.

Shortly after it was listed, China’s cyberspace regulator said it was investigating Didi’s cybersecurity, and that many of Didi’s apps had been removed from domestic app stores.

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The prices of Didi’s American depository receipts have tumbled and hit new record highs this week after the IPO expired 180 days later, allowing its early shareholders to reduce their stake. Shares listed in New York closed Wednesday at $4.94, which is about 65% lower than their IPO price of $14.

Didi said in early December that it plans to delist from the US and pursue listing in Hong Kong. The Journal previously reported that the company intends to go public in Hong Kong through a “listing by introduction”. This route enables companies whose shares already trade on other exchanges to go public in the Asian financial center without having to raise new money or issue new shares.

For the nine months ended September 30, Didi posted revenue equivalent to $20.9 billion, up 40% from the same period a year earlier, showing how much growth it had earlier in the year. The company’s September quarter revenue was slightly lower than the third quarter of 2020.

Write Serena Ng and [email protected]

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