Didi Global, a Chinese ride-hailing company, announced a 1.7 percent drop in third-quarter revenue on Wednesday, blaming a regulatory crackdown on its domestic business.
Daniel Zhang, the CEO of Chinese e-commerce behemoth Alibaba Group Holding, has resigned as a director on Didi’s board of directors, the firm announced. Yi Zhang, an Alibaba Group senior legal director, takes over as his successor.
Following its IPO on the New York Stock Exchange in June, Chinese regulators slammed Didi, ordering it to remove its app from app stores while the Cyberspace Administration of China (CAC) examined its management of client data.
Didi, the main ride-hailing startup in China, was co-founded in 2012 by former Alibaba employee Will Wei Cheng and supported by SoftBank Group (9984.T).
Ride-hailing services from Geely (GEELY.UL) and SAIC Motor are now posing a serious threat to the corporation (600104.SS). Didi chose in December to delist from the NYSE and pursue a Hong Kong listing in response to pressure from Chinese officials concerned about data security.
Didi’s stock has dropped 65 percent since its IPO, which gave the company a valuation of $80 billion and made it the largest Chinese company to list in the United States since 2014.
Didi announced on Wednesday that its board of directors has given the company permission to seek a listing of its Class A ordinary shares on the Hong Kong Stock Exchange’s mainboard.
“The company is on track to meet its objectives and will provide investors with updates as needed,” Didi stated. Revenue fell to 42.7 billion yuan ($6.71 billion) in the third quarter, down from 43.4 billion yuan a year earlier.
Didi reported revenue from its foreign operations nearly doubled to 966 million yuan in the third quarter, as the company expands its presence in Europe and South America. Ordinary stockholders suffered a net loss of 25.91 yuan.
