Didi again records a profit while it prepares for Hong Kong IPO

DIDI Global posted its second straight quarterly profit, a boost for the Chinese ride-hailing leader as it contemplates a potential re-listing in Hong Kong.

The company swung to a net income of 929 million yuan (S$172 million) for the September quarter, versus a year-ago loss. Revenue rose 5 per cent to 53.9 billion yuan, bolstered by a 20 per cent jump in gross transactions from its international business, which encompasses Brazil and Mexico.

The results reflect a steady recovery for the once-fast growing Chinese Internet pioneer after a tough few years. Once hailed as a national champion for driving Uber Technologies out of China, Didi’s business took a hit after Beijing cracked down on its data-sharing practices.

Didi was one of the most prominent companies targeted by Beijing during a crackdown on the increasingly powerful Internet industry from 2020.

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 IPO despite authorities’ objections. This year, co-founder Jean Liu – who helped oversee the US debut – stepped down from her roles as president and board director, though she was appointed a permanent partner and chief people officer.

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 aims to list on the Hong Kong stock exchange, though the timeline remains unclear. BLOOMBERG