Didi revenue drops as China’s regulatory crackdown hits business

China’s ride-hailing firm Didi Global on Wednesday announced a 1.7% decrease in second from last quarter income, as its domestic business took a hit from a regulatory crackdown.

Daniel Zhang, the CEO of Chinese e-commerce giant Alibaba Group Holding, who had served as a director on Didi’s board starting around 2018 has surrendered, the resigned said.

He is prevailed by Yi Zhang, a senior legal director of Alibaba Group.

Chinese authorities have come down hard on Didi, later its New York Stock Exchange listing in June, demanding it bring down its application from mobile app stores while the Cyberspace Administration of China (CAC) researched its handling of customer information.

The limitation hit Didi, co-founded in 2012 by former Alibaba representative Will Wei Cheng and backed by SoftBank Group (9984.T), which was the predominant ride-hailing organization in China.

The organization presently faces stiff competition from ride-hailing services via automakers Geely (GEELY.UL) and SAIC Motor (600104.SS).

Under tension from Chinese regulators worried about information security, Didi in December decided to delist from the NYSE and seek after a Hong Kong listing.

Shares of Didi, which had taken off in their IPO providing the organization with a valuation of $80 billion and denoting the greatest U.S. listing by a Chinese firm beginning around 2014, have since declined 65%.

Didi said on Wednesday its board had approved it to seek after a listing of its class A ordinary shares on the main board of the Hong Kong Stock Exchange.

“The company is executing above plans and will update investors in due course,” Didi said.

Revenue for the third quarter finished Sept. 30 fell to 42.7 billion yuan ($6.71 billion) from 43.4 billion yuan a year sooner.

Didi, which is growing its presence in Europe and South America, said revenue from its international operations almost doubled to 966 million yuan in the quarter.

Net loss inferable from ordinary shareholders was 25.91 yuan.