Didi’s Revenue Falls After Beijing’s Crackdown Hurts Its China Business

Didi reported the equivalent of $6.7 billion in revenues for the three months ended Sept. 30 at current exchange rates, versus $7.6 billion in the three months ended June 30. Its China mobility business—which includes its core ride-hailing operations—was the main cause of the decline. The company also posted a net loss equivalent to $4.8 billion for the third quarter.

Didi went public on the New York Stock Exchange on June 30 after raising $4.4 billion in the largest U.S. initial public offering by a Chinese technology company since Alibaba’s blockbuster listing in 2014.

Shortly after its listing, China’s cyberspace regulator said it was investigating Didi’s cybersecurity, and many of Didi’s apps were taken down from domestic app stores.

Prices of Didi’s American depositary receipts have plunged and hit fresh record lows this week after a 180-day post-IPO lockup period expired, allowing its early shareholders to pare their stakes. On Wednesday, the New York-listed shares closed at $4.94, around 65% below their IPO price of $14.

Didi in early December said it is planning to delist from the U.S. and pursue a listing in Hong Kong. The company is looking to go public in Hong Kong via a “listing by introduction,” the Journal previously reported. That route enables companies whose shares already trade on other exchanges to go public in the Asian financial hub without raising new money or issuing new shares.

For the nine months ended Sept. 30, Didi posted revenues equivalent to $20.9 billion, up 40% from the same period a year ago, showing how much growth momentum it had earlier in the year. The company’s September quarter revenues were slightly lower than in the third quarter of 2020.

Write to Serena Ng at serena.ng@wsj.com