Didi to Vote on Delisting of U.S. Stocks on May 23
Didi Global, a leading ride-hailing platform in China, announced on April 16 that it will hold a special shareholders meeting at 19:00 on May 23 to vote on a voluntary delisting from the New York Stock Exchange (NYSE). Before this withdrawal is completed, the company will not apply to list its shares on any other stock exchange.
Regarding this announcement, the China Securities Regulatory Commission responded on the same day that Didi’s voluntary delisting is a specific case which has nothing to do with other Chinese stocks listed in the U.S. and does not affect the regulatory cooperation process between the two countries.
Didi was officially listed on the NYSE on June 30, 2021, with an issue price of $14. In July of last year, the Cyberspace Administration of China launched a network security review of the company due to its alleged illegal collection and use of customers’ personal information. Subsequently, the company’s apps, including Didi Chuxing and 25 other related apps, were removed from digital stores in the country.
It is worth mentioning that on December 3 last year, Didi released a announcement saying: “After careful study, the company will start delisting from the NYSE and start preparations for listing in Hong Kong.”
In addition, Didi announced on April 16 that Tencent President Chi Ping Lau had resigned as a director, along with the appointment of current Associate General Counsel of Tencent, Liang Fengxia, as a new director. In fact, Didi’s board of directors changed in December last year. Daniel Zhang, Chairman and CEO of Alibaba, resigned from the board, while Zhang Yi, Senior Legal Director of Alibaba Group and general counsel of Alibaba Local Services Company, was appointed as a director of the Didi Board of Directors.
According to Didi’s latest financial report, its total revenue in the fourth quarter of 2021 was 40.8 billion yuan ($6.4 billion) in accordance with GAAP, compared with 46.7 billion yuan in the same period last year. In the fourth quarter of 2021, the net loss attributable to ordinary shareholders was 383 million yuan, while the adjusted non-GAAP loss was 3.9 billion yuan.
The firm’s overall revenue in the fourth quarter of 2021 includes the total revenue for its China Mobility’s business unit of 37.5 billion yuan, the total revenue for its international business unit of 1 billion yuan, and the total revenue for other departments of 2.3 billion yuan. In the fourth quarter of 2021, the transaction volume of core platforms reached 2.791 billion, including 2.307 billion for its China Mobility segment and 484 million from its international segment.
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