- tech360.tv
China's Didi Reports First Quarterly Profit Since 2021 as Regulatory Woes Ease
Updated: Jan 8
Didi Global, China's largest ride-hailing company, has announced its first quarterly profit since 2021, signalling a comeback from regulatory challenges.
The company reported a net income of 107 million yuan ($14.66 million) for the three-month period ending September 30, compared to a loss of 2 billion yuan in the same period last year. Didi's revenue for the quarter increased by 25% to 51.40 billion yuan.
The ride-hailing firm, backed by Alibaba, Tencent and SoftBank Group, did not disclose its quarterly results in 2022 but reported an annual net loss of 23.78 billion yuan. To further support its business growth, Didi has announced plans to repurchase up to $1 billion worth of shares over the next two years and increase its marketing efforts.
Didi faced regulatory scrutiny in 2021 for pursuing a U.S. stock listing without approval, leading to a regulatory investigation and restrictions on its operations. However, the company has gradually emerged from these troubles since January, when it was allowed to restore its apps. Didi has also streamlined its business operations and sold its electric vehicle business unit to Chinese electric vehicle startup Xpeng for up to $744 million.
Didi Chairman and CEO Wei Cheng expressed optimism about the company's future, stating, "In the future, we expect to continue expanding our core businesses while enhancing our product and service capabilities in order to provide better services to our consumers, drivers and ecosystem partners."
This positive financial performance and the resolution of regulatory issues are significant milestones for Didi as it seeks to regain market confidence and strengthen its position in the ride-hailing industry.
Didi Global, China's largest ride-hailing company, has reported its first quarterly profit since 2021.
The company recorded a net income of 107 million yuan ($14.66 million) for the third quarter of 2023.
Didi's revenue for the quarter increased by 25% to 51.40 billion yuan.
Source: REUTERS