Car stuff (public number: chedongxi)
Author | Alice
Edit | Juice
Chedong May 5 news, recently, Didi Chuxing (hereinafter referred to as Didi) released its 2021 annual report, in which Didi said that the U.S. Securities and Exchange Commission (hereinafter referred to as the SEC) is investigating its $4 billion (about 26.45 billion yuan) IPO.
Didi wrote in its annual report that after the company went public, the SEC contacted Didi to inquire about its IPO. Didi said in its annual report: "We are cooperating with the investigation, but we must strictly comply with applicable Chinese laws and regulations." We cannot predict the timing, outcome, or consequences of such an investigation. ”
▲Screenshot of the annual report released by Didi
But so far, Didi has not provided specific details about the investigation.
In June last year, Didi went public in the United States and raised more than $4 billion (about 26.45 billion yuan). Shortly after Didi went public in the United States, the State Internet Information Office launched an investigation into Didi, and during the cybersecurity review, new users could not register for Didi's ride-hailing service, and multiple applications of Didi were removed from the app store.
In this context, Didi issued a statement through its official Weibo on December 3 last year, saying that after careful study, the company immediately started the work of delisting on the New York Stock Exchange and started preparations for listing in Hong Kong.
At one point, Didi's market capitalization exceeded $80 billion (about 529.3 billion yuan) at one point, and since being investigated by regulators, Didi's stock price has plummeted, and as of yesterday's close, Didi's market value was $9.556 billion (about 63.2 billion yuan).
It is not difficult to see that Didi's development after listing is not smooth, if the regulatory problems cannot be solved, Didi may not be able to get out of the "cold winter".
First, the annual revenue of 173.8 billion yuan Net loss attributable to the mother was 50.031 billion yuan
On May 2, Didi announced its financial report, and its operating income for the whole year of 2021 was 173.827 billion yuan, up 22.64% year-on-year compared with 141.7 billion yuan in 2020.
▲Some key data of Didi's 2021 annual report
The announcement shows that the net loss attributable to the common shareholders of the parent company in the company's 2021 fiscal year report was 50.031 billion yuan, compared with the loss of 10.680 billion yuan in the same period last year, an increase of 368.44% year-on-year.
From the perspective of specific business, Didi's current revenue is composed of three parts: China's travel business (China's online ride-hailing, taxi, substitute driving and hitchhiking business), international business (international travel and takeaway business) and other businesses (shared bicycles and motorcycles, car services, freight, autonomous driving and financial services).
According to the financial report, didi's revenue from China's travel business last year was 160.521 billion yuan, accounting for 92% of the total revenue, compared with 133.645 billion yuan in the same period of 2020, an increase of 20.1% year-on-year.
▲The financial data of Didi's China travel business in the past three years
Second, the previous collection of personal information due to violations Didi Chuxing was removed from the shelves
It can be seen in the financial report that Didi's net loss is constantly increasing, in fact, this is also related to Didi's recent development.
On July 2, 2021, the State Internet Information Office issued an announcement that in order to prevent national data security risks, safeguard national security, and protect the public interest, it announced the implementation of a network security review of "Didi Chuxing". In order to cooperate with the network security review work and prevent the expansion of risks, "Didi Chuxing" stopped new user registration during the review period.
▲ On July 2 last year, the State Internet Information Office launched an investigation into Didi
Two days later, the State Internet Information Office issued another announcement saying that after testing and verification, the "Didi Chuxing" App had serious problems with the collection and use of personal information in violation of laws and regulations. In accordance with the relevant provisions of the Cybersecurity Law of the People's Republic of China, the app store will be notified to remove the "Didi Chuxing" app.
▲ On July 4 last year, the State Internet Information Office removed the announcement of didi App
On July 9, 2021, the State Internet Information Office issued another announcement, saying that 25 apps, including "Didi Enterprise Edition", had serious violations of laws and regulations in collecting and using personal information. In accordance with relevant regulations, the State Internet Information Office notified the app store to remove 25 apps from Didi, requiring Didi to strictly follow legal requirements and refer to national standards to conscientiously rectify and ensure the security of users' personal information. At the same time, websites and platforms are not allowed to provide access and download services for 25 apps that have been removed from the app store, such as "Didi Chuxing" and "Didi Enterprise Edition".
In its recently released annual report, Didi said it had not yet been notified about when it would be able to resume downloading its app, and it was impossible to measure the ultimate impact of the move on its financial and operating performance. Didi will continue to cooperate fully with relevant government agencies on review and rectification measures.
At the same time, Didi also said in the annual report that after the initial public offering in the United States, the SEC also contacted Didi and inquired about the offering. Didi is currently cooperating with U.S. authorities in compliance with Chinese laws and regulations, but it also said it could not predict the timing, outcome or consequences of the investigation.
Conclusion: The future of Didi Chuxing is unclear
In addition to regulators in China and the United States reviewing Didi, Didi also faces class-action lawsuits. In July last year, a number of U.S. law firms launched a class action investigation against Didi over the losses suffered by investors due to the sharp decline in Didi's stock price.
In the case of internal and external difficulties, one of Didi's main businesses, the travel business, cannot obtain new users in China, and the revenue in this regard is bound to be affected, while other businesses such as automatic driving and car manufacturing will inevitably be affected to varying degrees, and Didi's development will be further hindered.