Didi revenue falls as China’s regulatory crackdown hits business
Daniel Zhang, the chief executive officer of Chinese e-commerce giant Alibaba Group Holding , who had served as a director on Didi’s board since 2018 has resigned, the company said.
Chinese authorities have come down hard on Didi, after its New York Stock Exchange listing in June, demanding it take down its app from mobile app stores while the Cyberspace Administration of China (CAC) investigated its handling of customer data.
Shares of Didi, which had soared in their IPO giving the company a valuation of $80 billion and marking the biggest US listing by a Chinese firm since 2014, have since declined 65%.
Didi said on Wednesday its board had authorized it to pursue a listing of its class A ordinary shares on the main board of the Hong Kong Stock Exchange.
“The company is executing above plans and will update investors in due course,” Didi said.
Revenue for the third quarter ended September 30 fell to 42.7 billion yuan ($6.71 billion) from 43.4 billion yuan a year earlier.
Didi, which is expanding its presence in Europe and South America, said revenue from its international operations nearly doubled to 966 million yuan ($151.63 million) in the quarter.