DiDi Global Inc. Annual Report - How They Did This Year

I’m putting together a simple guide to help you understand DiDi Global’s performance. Instead of digging through dense legal filings, I’m breaking down the key facts so you can see the big picture.

1. What does this company do?

Think of DiDi as the "Uber of China." It is a massive technology platform that connects riders with drivers. It also operates bike-sharing, food delivery, and logistics. The business operates in three main areas:

• China Mobility: Their core ride-hailing business in China, which makes up about 90% of total revenue.
• International: Ride-hailing and food delivery across 16 countries, including markets in Latin America and Asia-Pacific.
• Other Initiatives: Everything else, including bike-sharing, freight logistics, and financial services like insurance and credit.

2. How they measure success

• Total Revenue: This is the money coming in from all services. It is primarily generated through the "take rate"—the percentage DiDi keeps from every fare.
• Profit: This is the money left over after paying drivers, marketing, and operating costs. The company uses "Adjusted EBITA" to show the core profitability of the platform by stripping out one-time expenses.

3. How did they perform this year?

DiDi’s numbers for the year ending December 31, 2025, show a company that is growing but still navigating thin profit margins:

• Revenue Growth: DiDi brought in 226.7 billion RMB, up about 9.6% from 206.8 billion RMB in 2024. This growth followed a 12% increase in the total value of all transactions, which reached 415 billion RMB.
• Profitability: The company turned a profit of 992 million RMB in 2025. This is a slight dip from the 1.26 billion RMB profit reported in 2024.
• The Big Picture: The business is scaling up, but costs—specifically driver incentives, insurance, and research for autonomous driving—are rising almost as fast as revenue. This keeps their profit margin below 0.5%.

4. Financial health and the "VIE" Structure

DiDi uses a structure called a "Variable Interest Entity" (VIE). You aren't buying a direct slice of the Chinese business. Instead, you own shares in a Cayman Islands holding company that has contracts with the Chinese business.

• The Risk: If the Chinese government decides these contracts are invalid or restricts how money moves out of China, the business could face trouble. In a "worst-case" tax scenario, the company estimates their after-tax income could be cut nearly in half.
• Cash Flow: DiDi has roughly 23.8 billion RMB in cash. However, strict government rules make it difficult to move this money out of China. Because of this, they do not pay dividends. They plan to reinvest in growth and share buybacks, which totaled 1.5 billion USD in 2024-2025.

5. Major risks: What could go wrong?

• Regulatory "Tightrope": DiDi is highly sensitive to Chinese government policy. New rules on data privacy or driver classification could force them to raise wages, which would shrink their already thin margins.
• The "Contract" Risk: The VIE structure is a legal workaround, not true ownership. It has not been fully tested in Chinese courts. If the government bans this structure, investors could lose their entire stake.
• Stock Market Status: DiDi delisted from the New York Stock Exchange in 2022. The stock now trades on "OTC" (Over-the-Counter) markets. This makes it harder to trade and more volatile than standard stocks.

Bottom Line: DiDi is growing, but it is a high-stakes investment. You are betting on the company’s ability to maintain its scale while navigating a complex legal structure and strict government oversight. With profit margins under 1%, there is very little room for error. Before investing, consider whether you are comfortable with the regulatory risks inherent in the VIE structure and the volatility associated with OTC trading.