Loss of $ 4.7 billion for Didi before its introduction in Hong Kong in 2022

Chinese tech giant Didi Global reported $ 4.7 billion in losses after shrinking its revenue in the September quarter, revealing rising costs of a series of regulatory measures that force the Chinese company to move its imports to Hong Kong next year. , according to Bloomberg.

Didi, one of the most prominent targets of a large-scale Beijing campaign to curb the country’s tech giant, announced sales of $ 6.6 billion, down more than 13% from the June quarter and 1 , 6% compared to the previous year.

The surprise revelation comes as the company prepares to be listed on the New York Stock Exchange. The transport giant plans to work with Goldman Sachs, CMB International and CCB International on the change.

This arrangement, which does not involve any fundraising, requires minimal marketing and would allow American investors to exchange their shares for the new one in Hong Kong.

Didi once hailed Uber’s “expulsion” from China, but has now become one of the main goals of Beijing’s campaign to limit its increasingly powerful technology sector. The Chinese giant has angered regulators after making its New York debut despite concerns over the security of its data, prompting a series of inquiries that led to its forced delisting. Shares of Didi fell as much as 6.9% in US pre-conference trading on Thursday.

The unprecedented delisting of Didi from the stock market underscored Beijing’s concern about the possible leak of sensitive data to a geopolitical rival, as well as the extent to which the government will go so far as to punish Didi for violating her wishes.

The regulatory turmoil has increased both business costs for Didi and allowed competitors such as Meituan to erode its market share. Didi posted a net loss of 30.4 billion yuan for the September quarter, up from 665 million yuan a year earlier.

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