Didi Global swung to a profit in the June quarter, a welcome boost for the company as it prepares for a potential re-listing in Hong Kong.
Its over-the-counter shares rose 2.3%. The results reflect how the company is gradually recovering from a tough few years. Once hailed as a national champion that defeated Uber Technologies in China, Didi’s business took a hit after Beijing clamped down on the internet industry.
Regulators fined the company US$1.2 billion ($1.57 billion) in 2022 and forced it to delist from New York’s mainboard after Didi proceeded with an IPO despite authorities’ objections.
In May, co-founder Jean Liu — who helped oversee the US debut — stepped down from her roles as president and board director. She was then appointed a permanent partner as well as chief people officer.
China’s leading ride-hailing provider reported a net profit of 1.4 billion yuan ($256 million), reversing a small loss a year earlier. Revenue climbed 4.1% to 50.9 billion yuan after ride-hailing transactions hit a record. Its international business, which encompasses Brazil and Mexico, grew more than 39% during the period.
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 now aims to list on the Hong Kong stock exchange, though the timeline for that remains unclear.
