China’s Didi Global to turn a profit in the second quarter By Reuters

By Casey Hall and Liam Mo

SHANGHAI (Reuters) – China’s biggest ride-hailing company Didi Global posted a net profit of 1.4 billion yuan ($196.24 million) for the second quarter, up from a loss of 300 million yuan a year earlier as it continues to rebuild its business badly. hit by a regulatory crackdown.

The company posted a 4.1 percent increase in revenue to 50.9 billion yuan for the quarter.

Didi began to recover after drawing attention from China’s cyber regulator in 2021 for pursuing a US initial public offering without approval, prompting an investigation that barred it from adding users and saw many of its apps removed from major app stores.

The regulator then fined Didi $1.2 billion in 2022 for data security breaches before giving it permission to relaunch its apps early last year.

Co-founder Jean Liu stepped down earlier this year as chairman and director of the board.

Liu, who for the past decade has been heavily involved in financial decisions, has become a “permanent partner” and maintains her current duties, including chief of people.

Didi, which is seen as China’s answer to Uber (NYSE: ), generates most of its revenue at home but also has a significant presence in Brazil and Mexico, where it owns major ride-hailing platforms.

Total transport orders reached 971 million trips in June, Transport Ministry data showed, a 27.3% increase from the same month last year.

It sold its electric vehicle (EV) development business to Xpeng (NYSE: ) a year ago in a $744 million deal in exchange for a roughly 3.25 percent stake in the maker of vehicles.

(1 USD = 7.1340 renminbi)