DiDa Submits Its Fifth Application to the HKSE for Main Board Listing

On March 19, the prominent ride-hailing platform giant DiDa submitted its application for a main board listing to the Hong Kong Stock Exchange for the fifth time. The joint sponsors for this application are China International Capital Corporation, Haitong International, and Nomura International. Previously, DiDa had submitted applications in October 2020, April 2021, February 2023, and August 2023.

According to a Frost & Sullivan report, DiDa Chuxing's total transaction volume and ride-hailing frequency amounted to CNY 6.1 billion and 94.2 million rides, respectively. As of December 31, 2023, the company provided app-based ride-hailing services in 366 cities nationwide and had approximately 15.6 million certified private car owners.

The latest financial reports indicate that in 2021, 2022, and 2023, DiDa achieved revenues of CNY 781 million, CNY 569 million, and CNY 815 million, with adjusted net profits (non-International Financial Reporting Standards) of CNY 238 million, CNY 84.7 million, and CNY 226 million, respectively.

Established in 2014, DiDa is an internet-based transportation platform that combines taxi and ride-hailing services, ranking second in terms of active user volume within the industry.

The company's revenue heavily relies on its ride-hailing business, with smart taxi services and advertising serving as supplementary sources of income. According to official data from DiDa, as of June 30, 2023, its ride-hailing services were available in 366 cities nationwide, serving approximately 15.2 million certified private car owners and 63.6 million ride-hailing passengers.

Following severe safety incidents in the ride-hailing sector around 2018, which led to the suspension of ride-hailing services and the removal of the app from regulatory oversight, companies like DiDa found new opportunities in the ride-hailing business. Although DiDa's ride-hailing business has surged, the number of active drivers and passengers has declined, and its leading position in the ride-hailing industry has gradually been replaced by Haolai Chuxing.

Additionally, DiDa faces complex regulatory risks and issues related to its singular business model, placing it in a delicate position. Consequently, the company is seeking change, with the Hong Kong listing being a crucial step. The primary goals of its listing are to increase its user base and expand its business scope.