Financial shares

What DiDi Global Inc’s (DIDI) Third Quarter Financial Results Tell Us About China’s Mobility Sector

DiDi Global Inc. (DIDI) stock fell more than 4% today after the company, which produces shared mobility technology, announcement financial results for the second and third quarters of 2021.

The company has four main market segments: shared mobility, automotive solutions, electric mobility and autonomous driving.

Total second quarter 2021 revenue was reported at $ 7.5 billion, while third quarter 2021 revenue fell to $ 6.6 billion.

Didi also reported a higher third quarter net loss ($ 4.7 billion) compared to the previous quarter ($ 3.82 billion).

Main platform transactions

The decline in Didi’s overall revenue can be largely attributed to its “main platform transaction” metric, which stood at 2.85 million for the third quarter.

This is a marked drop from the total of 3,004 million announced in the second quarter.

Didi has also suffered greatly in its China Mobility segment, which has traditionally been the company’s strongest market, and where it maintains its largest market share.

China Mobility segment platform sales for the second quarter of 2021 reached 10.7 billion RMB, while sales for the third quarter were reported at 8.9 billion RMB ($ 1.4 billion US).

Delisting of ADS Shares

Along with its financial results, Didi announced at the same time that on December 3, 2021, its board of directors authorized the delisting of the company’s ADSs from the New York Stock Exchange, while ensuring that the ADSs will be convertible into shares. freely tradable on another internationally recognized market. Stock Exchange.

An ADS (American Depositary Receipt) is a share of the capital of a non-US company owned by a US depositary bank and is available for purchase by US investors.

With ADSs, foreign companies that choose to offer stocks on US stock exchanges benefit from a larger investor base, which can also lower future capital costs.

Didi did not give a reason for her delisting from the NYSE, but the board of directors authorized the company to continue listing its class A common stock on the main board of the Hong Kong Stock Exchange.

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DiDi Global Inc is a mobility technology platform. It builds four key components of its platform that work together to improve the consumer experience: shared mobility, automotive solutions, electric mobility and autonomous driving. It is a leading brand in China for shared mobility, providing consumers with a range of safe, affordable and convenient mobility services, including carpooling, taxi, driver, hitch and other forms of shared mobility. .