Chinese ridesharing giant Didi reports third quarter loss of $ 4.7 billion
Published on: Amended:
Beijing (AFP) – Chinese ridesharing giant Didi Global on Thursday reported a third-quarter loss of $ 4.7 billion as revenue plummeted due to a regulatory crackdown from Beijing.
Problems with the company – formerly known as China’s Uber – began after it listed in New York in June, apparently against Beijing’s wishes.
China then shocked investors by launching cybersecurity investigations into the company.
Didi has been pulled from app stores and its inventory has since lost nearly two-thirds in value. The company announced this month that it will withdraw from the New York Stock Exchange and prepare to move to Hong Kong.
It announced a third quarter loss of $ 4.7 billion, the bulk of the company’s losses for the year to date, in a regulatory filing filed Thursday with the United States Securities and Exchange Commission. .
It recorded an operating loss of $ 6.3 billion for the first nine months of the year.
Total revenue fell 11% in the last quarter, after China pulled Didi from domestic app stores in July, preventing new users from signing up.
China recently proposed a new law under which companies seeking IPOs overseas would have to register with the securities regulator. A list will be blocked if it is considered a threat to national security.
Some of the biggest Chinese companies have joined the United States in search of more developed markets and new lines of liquidity from a massive investor base, but enthusiasm waned as tensions soared between Washington and Beijing.
Instead, Beijing encouraged companies to list on national stock exchanges to protect information and prevent data from going overseas, and to develop Chinese capital markets.
Beijing’s regulatory crackdown has spread over the past year to curb the rampant growth of China’s powerful tech and internet sectors and to rule the influence of big business.
© 2021 AFP