China’s Didi bounces back from losses caused by Beijing’s crackdown on internet services as it prepares IPO in Hong Kong

(Bloomberg)- Didi Global Inc. swung to a profit in the June quarter, a welcome boost for the company as it prepares for a potential re-listing in Hong Kong.

China’s leading ride-hailing provider reported a net profit of 1.4 billion yuan ($196 million), from a small loss a year earlier. Revenue climbed 4.1% to 50.9 billion yuan, after ride-hailing transactions hit a record.

The results reflect how the company is gradually recovering from a tough few years. Once hailed as a national champion that defeated Uber Technologies Inc. in China, Didi’s business took a hit after Beijing clamped down on the internet industry.

Regulators fined the company $1.2 billion in 2022 and forced it to de-list from New York’s mainboard after Didi proceeded with an IPO despite authorities’ objections. In May, co-founder Jean Liu — who helped oversee the US debut — stepped down from her roles as president and board director. She was appointed chief people officer instead.

Didi’s shares now trade only over-the-counter in New York and remain significantly below its IPO price of $14 in 2021. The company now aims to list on the Hong Kong stock exchange, though the timeline for that remains unclear.