DIDI Global swung to a profit in the June quarter, a welcome boost for the company as it prepares for a potential re-listing in Hong Kong.
Its over-the-counter shares rose 2.3 per cent. The results reflect how the company is gradually recovering from a tough few years. Once hailed as a national champion that defeated Uber Technologies in China, Didi’s business took a hit after Beijing clamped down on the Internet industry.
Regulators fined the company US$1.2 billion in 2022 and forced it to delist from New York’s mainboard after Didi proceeded with an initial public offering (IPO) despite authorities’ objections. In May, co-founder Jean Liu – who helped oversee the US debut – stepped down from her roles as president and board director. She was then appointed a permanent partner as well as chief people officer.
China’s leading ride-hailing provider reported a net profit of 1.4 billion yuan (S$256 million), reversing a small loss a year earlier. Revenue climbed 4.1 per cent to 50.9 billion yuan after ride-hailing transactions hit a record. Its international business, which encompasses Brazil and Mexico, grew more than 39 per cent during the period.
Didi’s shares now trade only over-the-counter in New York and remain significantly below its IPO price of US$14 in 2021. The company now aims to list on the Hong Kong stock exchange, though the timeline for that remains unclear. BLOOMBERG
