Didi Reveals $4.8 Billion Loss, Alibaba CEO Daniel Zhang Resigns From Board
DiDi Global Inc. reported its first financial report for Q2 and Q3 on Thursday, showing that its net loss attributable to ordinary shareholders in the third quarter was 30.6 billion yuan ($4.8 billion). The surprise disclosure comes as the company prepares to delist from New York.
According to the report, under GAAP, Didi’s total revenue in the third quarter was 42.675 billion yuan, down 2% from 43.398 billion yuan in the same period last year. In the second quarter, Didi’s total revenue was 48.2 billion yuan, and the net loss attributable to Didi’s ordinary shareholders was 24.4 billion yuan.
Didi’s current revenue consists of domestic travel business, international business and other businesses. In the second quarter, income from the three parts of the business was 44.8 billion yuan, 800 million yuan and 2.6 billion yuan, respectively. In the third quarter, the income of the three parts of business was 39 billion yuan, 1 billion yuan and 2.7 billion yuan, respectively.
Didi achieved a gross transaction volume of 73.3 billion yuan and 68.7 billion yuan on its core platform during Q2 and Q3, respectively.
Beijing-headquartered Didi also said Daniel Zhang, the chairman and chief executive of Alibaba Group, has resigned from its board. He has been succeeded by Zhang Yi, a senior legal director at the Chinese e-commerce giant.
SEE ALSO: Didi Chuxing Delists from NYSE, Plans Hong Kong IPO
Regarding Didi’s plan to go public in Hong Kong, the ride-hailing giant is planning to work with Goldman Sachs Group Inc., CMB International and CCB International on the shift, which could be a so-called listing by introduction, Bloomberg previously reported, citing people familiar with the matter. That arrangement, which doesn’t involve any fundraising, requires little marketing and would allow U.S. investors to swap their shares for the new stock in Hong Kong.