What made Didi Global shares tank 20% on Monday?

The U.S listed shares of Didi Global Inc (NYSE: DIDI) are down 20% this morning on plans of U.S. delisting. The Chinese vehicle for hire company also reported a significant hit to its quarterly revenue on Monday.

Didi Global Q4 financial update

Didi generated $6.4 billion in its fiscal fourth quarter. This compares to a higher $7.33 billion in the same quarter last year. The bigger chunk of its revenue decline was related to the China Mobility division.

For Q4, the transport company noted a net loss of $60 million, as per the earnings press release. China Mobility recorded $8.83 billion in gross transaction value while GTV from “international” stood at $1.73 billion.

Didi’s annual revenue of $27.28 billion, however, was still an increase from 2022’s $22.24 billion.

Didi shareholders to vote on U.S. delisting

Over the weekend, Didi also confirmed that investors will vote on U.S. delisting at an extraordinary shareholders meeting on May 23^rd. The Beijing-headquartered company listed on the New York Stock Exchange in June 2021 at a per-share price of $14.

Shortly after its IPO, Didi came under an investigation from Chinese regulators for alleged failure to comply with Beijing’s cybersecurity laws that eventually had the ride-hailing company disclose plans of U.S. delisting in December.

The stock is now down 60% year-to-date and 85% from its debut price.