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DiDi(DIDIY) - 2023 Q4 - Annual Report
DIDIYDiDi(DIDIY)2024-04-15 20:02

IPO and Share Repurchase - The company raised approximately 4,332.0millioninnetproceedsfromitsinitialpublicoffering(IPO)afterdeductingunderwritingcommissionsandofferingexpenses[966]−TotalexpensesincurredfortheIPOwere4,332.0 million in net proceeds from its initial public offering (IPO) after deducting underwriting commissions and offering expenses[966] - Total expenses incurred for the IPO were 103.2 million, including 88.7millioninunderwritingdiscountsandcommissionsand88.7 million in underwriting discounts and commissions and 14.5 million in other costs[967] - The company did not use any of the net proceeds from the IPO for the year ended December 31, 2023[968] - The company's board authorized a share repurchase program of up to 1billionover24monthsstartingNovember2023[982]−InQ12024,thecompanyrepurchased20,560,252ADSsunderthesharerepurchaseprogram,withapproximately1 billion over 24 months starting November 2023[982] - In Q1 2024, the company repurchased 20,560,252 ADSs under the share repurchase program, with approximately 923.7 million remaining for future repurchases[983] Financial Performance and Position - Total revenues for 2023 reached RMB 192,379,918 thousand (US27,096,145thousand),withChinaMobilitycontributingRMB175,033,586thousand(US 27,096,145 thousand), with China Mobility contributing RMB 175,033,586 thousand (US 24,652,965 thousand), International contributing RMB 7,842,151 thousand (US1,104,544thousand),andOtherInitiativescontributingRMB9,504,181thousand(US 1,104,544 thousand), and Other Initiatives contributing RMB 9,504,181 thousand (US 1,338,636 thousand)[1020] - Net income for 2023 was RMB 535,062 thousand (US75,362thousand),asignificantimprovementfromthenetlossofRMB23,782,511thousandin2022[1020]−Totalcostsandexpensesfor2023amountedtoRMB198,121,193thousand(US 75,362 thousand), a significant improvement from the net loss of RMB 23,782,511 thousand in 2022[1020] - Total costs and expenses for 2023 amounted to RMB 198,121,193 thousand (US 27,904,787 thousand), with cost of revenues being the largest expense at RMB 162,935,107 thousand (US22,948,930thousand)[1020]−Researchanddevelopmentexpensesfor2023wereRMB8,923,904thousand(US 22,948,930 thousand)[1020] - Research and development expenses for 2023 were RMB 8,923,904 thousand (US 1,256,906 thousand), a decrease from RMB 9,535,523 thousand in 2022[1020] - Total shareholders' equity as of December 31, 2023, was RMB 97,969,667 thousand (US13,798,739thousand),upfromRMB95,344,765thousandin2022[1017]−NetlosspershareattributabletoClassAandClassBordinaryshareholdersfor2023wasRMB0.41(US 13,798,739 thousand), up from RMB 95,344,765 thousand in 2022[1017] - Net loss per share attributable to Class A and Class B ordinary shareholders for 2023 was RMB 0.41 (US 0.06), a significant improvement from RMB 20.38 in 2022[1021] - Weighted average number of Class A and Class B ordinary shares used in computing net loss per share for 2023 was 1,224,576,751[1021] - Total comprehensive income for 2023 was RMB 1,183,826 thousand (US166,738thousand),comparedtoacomprehensivelossofRMB19,209,623thousandin2022[1020]−AccumulateddeficitasofDecember31,2023,wasRMB159,128,254thousand(US 166,738 thousand), compared to a comprehensive loss of RMB 19,209,623 thousand in 2022[1020] - Accumulated deficit as of December 31, 2023, was RMB 159,128,254 thousand (US 22,412,746 thousand), slightly improved from RMB 159,590,989 thousand in 2022[1017] - Interest income for 2023 was RMB 2,170,851 thousand (US305,758thousand),upfromRMB1,309,864thousandin2022[1020]−Totalshareholders′equity(deficit)asofDecember31,2021,wasRMB112,119,504[1023]−Netlossfor2021wasRMB49,343,664[1023]−Totalshareholders′equityasofDecember31,2022,decreasedtoRMB95,344,765[1024]−Netlossfor2022wasRMB23,783,321[1024]−Share−basedcompensationin2022amountedtoRMB3,424,049[1024]−IssuanceofordinarysharesinconnectionwithexerciseofshareoptionsandvestingofrestrictedsharesandRSUsin2022wasRMB7,526[1024]−Repurchaseofnoncontrollinginterestsin2022resultedinadecreaseofRMB32,850[1024]−Foreigncurrencytranslationadjustmentsin2022ledtoagainofRMB4,585,505[1024]−AccumulateddeficitasofDecember31,2022,wasRMB159,590,989[1024]−StatutoryreservesincreasedtoRMB69,328asofDecember31,2022[1024]−Totalshareholders′equityasofDecember31,2023,wasRMB97,969,667(US 305,758 thousand), up from RMB 1,309,864 thousand in 2022[1020] - Total shareholders' equity (deficit) as of December 31, 2021, was RMB 112,119,504[1023] - Net loss for 2021 was RMB 49,343,664[1023] - Total shareholders' equity as of December 31, 2022, decreased to RMB 95,344,765[1024] - Net loss for 2022 was RMB 23,783,321[1024] - Share-based compensation in 2022 amounted to RMB 3,424,049[1024] - Issuance of ordinary shares in connection with exercise of share options and vesting of restricted shares and RSUs in 2022 was RMB 7,526[1024] - Repurchase of noncontrolling interests in 2022 resulted in a decrease of RMB 32,850[1024] - Foreign currency translation adjustments in 2022 led to a gain of RMB 4,585,505[1024] - Accumulated deficit as of December 31, 2022, was RMB 159,590,989[1024] - Statutory reserves increased to RMB 69,328 as of December 31, 2022[1024] - Total shareholders' equity as of December 31, 2023, was RMB 97,969,667 (US 13,798,739), compared to RMB 95,344,765 at the beginning of the year[1025] - Net income for the year ended December 31, 2023, was RMB 535,062 (US75,362),asignificantimprovementfromthenetlossofRMB23,782,511in2022[1027]−Share−basedcompensationfor2023amountedtoRMB2,575,340(US 75,362), a significant improvement from the net loss of RMB 23,782,511 in 2022[1027] - Share-based compensation for 2023 amounted to RMB 2,575,340 (US 362,729), down from RMB 3,424,049 in 2022[1027] - Net cash provided by operating activities in 2023 was RMB 7,638,352 (US1,075,839),comparedtoanetcashusedinoperatingactivitiesofRMB9,554,309in2022[1027]−Depreciationandamortizationexpensesfor2023wereRMB4,248,651(US 1,075,839), compared to a net cash used in operating activities of RMB 9,554,309 in 2022[1027] - Depreciation and amortization expenses for 2023 were RMB 4,248,651 (US 598,410), a decrease from RMB 5,143,105 in 2022[1027] - Allowances for credit losses increased to RMB 2,090,866 (US294,492)in2023,upfromRMB1,062,265in2022[1027]−Netcashusedininvestingactivitiesin2023wasRMB4,479,952(US 294,492) in 2023, up from RMB 1,062,265 in 2022[1027] - Net cash used in investing activities in 2023 was RMB 4,479,952 (US 630,988), an improvement from RMB 11,028,110 in 2022[1027] - Accumulated deficit as of December 31, 2023, was RMB 159,128,254 (US22,412,746),slightlyhigherthanRMB159,590,989atthebeginningoftheyear[1025]−ForeigncurrencytranslationadjustmentscontributedRMB642,852toothercomprehensiveincomein2023[1025]−Repurchaseofordinarysharesin2023amountedtoRMB112,666(US 22,412,746), slightly higher than RMB 159,590,989 at the beginning of the year[1025] - Foreign currency translation adjustments contributed RMB 642,852 to other comprehensive income in 2023[1025] - Repurchase of ordinary shares in 2023 amounted to RMB 112,666 (US 15,862)[1025] - Net cash provided by financing activities in 2023 was RMB 3,538,244 thousand (US498,351thousand),comparedtoanetcashusedinfinancingactivitiesofRMB3,545,356thousandin2022[1029]−Cashandcashequivalentsandrestrictedcashattheendof2023wereRMB28,468,077thousand(US 498,351 thousand), compared to a net cash used in financing activities of RMB 3,545,356 thousand in 2022[1029] - Cash and cash equivalents and restricted cash at the end of 2023 were RMB 28,468,077 thousand (US 4,009,644 thousand), an increase from RMB 21,676,541 thousand at the end of 2022[1029] - Proceeds from short-term and long-term borrowings in 2023 were RMB 10,241,344 thousand (US1,442,463thousand),asignificantincreasefromRMB3,821,492thousandin2022[1029]−Repaymentsofshort−termandlong−termborrowingsin2023wereRMB6,725,333thousand(US 1,442,463 thousand), a significant increase from RMB 3,821,492 thousand in 2022[1029] - Repayments of short-term and long-term borrowings in 2023 were RMB 6,725,333 thousand (US 947,244 thousand), a decrease from RMB 7,026,465 thousand in 2022[1029] Internal Controls and Audits - Audit fees paid to PricewaterhouseCoopers Zhong Tian LLP decreased from RMB 54 million in 2022 to RMB 38 million in 2023[979] - The company's internal control over financial reporting was effective as of December 31, 2023, as confirmed by management and external auditors[972][974] - The company's internal control over financial reporting was effective as of December 31, 2023, based on COSO criteria[1002] - The company's management is responsible for maintaining effective internal control over financial reporting[1003] - The audits were conducted in accordance with PCAOB standards to ensure the financial statements are free of material misstatement[1004] Cybersecurity - The company has not experienced any material cybersecurity incidents or identified material cybersecurity threats as of the report date[988] - The board of directors oversees cybersecurity risk management and is informed about risks from cybersecurity threats[989] Subsidiaries and VIE Structure - The company operates its global mobility technology platform through consolidated subsidiaries, VIEs, and VIEs' subsidiaries in China and overseas countries including Brazil and Mexico[1031] - Major subsidiaries such as Holly Universal Limited and DiDi (HK) Science and Technology Limited are 100% owned by the company[1032] - The company uses contractual agreements with VIEs to consolidate financial results under U.S. GAAP, despite restrictions on foreign ownership in certain PRC businesses[1033] - Risks related to the VIE structure include uncertainties due to potential future changes in PRC laws and regulations, which could impact the company's ability to consolidate VIEs[1040] - The Foreign Investment Law of the PRC, effective January 1, 2020, introduces uncertainties regarding the classification of contractual arrangements as foreign investment[1042] - The Group's VIEs have registered capital of approximately RMB14,357,869 as of December 31, 2022, and RMB13,202,870 as of December 31, 2023[1048] - The VIEs hold non-distributable statutory reserves of approximately RMB64,034 as of December 31, 2022, and RMB89,487 as of December 31, 2023[1048] - The Group's unrecognized revenue-producing assets held by the VIEs include online ride-hailing operation permits, ICP licenses, and internet data center services licenses[1048] Revenue and Expenses - The company recognized a gain of RMB2.1 billion from the sale of certain smart auto business to XPeng Inc., with contingent considerations based on milestone achievements[1010] - Total revenues for the year ended December 31, 2023, were RMB181,926,012, compared to RMB132,237,619 in 2022 and RMB168,311,395 in 2021[1050] - Net income for 2023 was RMB1,066,970, a significant improvement from a net loss of RMB297,389 in 2022 and RMB5,957,049 in 2021[1050] - Net cash provided by operating activities in 2023 was RMB17,154,763, compared to RMB4,628,428 in 2022 and RMB1,631,994 in 2021[1050] - The Group's total assets increased from RMB49,394,796 as of December 31, 2022, to RMB54,815,266 as of December 31, 2023[1049] - Cash and cash equivalents increased significantly from RMB5,558,835 as of December 31, 2022, to RMB14,631,898 as of December 31, 2023[1049] - Short-term borrowings increased from RMB199,807 as of December 31, 2022, to RMB2,651,153 as of December 31, 2023[1049] - The Group's foreign exchange gain for the year ended December 31, 2023, was RMB271,411, compared to a loss of RMB1,387,541 in 2022 and a gain of RMB70,265 in 2021[1062] - Cash and cash equivalents increased from RMB971,925 in 2022 to RMB1,620,687 in 2023, reflecting a significant growth in liquidity[1071] - Treasury investments at amortized cost primarily consist of time deposits with banks, and interest income is recognized using the effective interest method[1075] - Treasury investments under the fair value option (FVO) include structured notes with variable interest rates, and changes in fair value are reflected in investment income (loss)[1076] - Accounts and notes receivable, net, include unpaid fare amounts from riders and enterprise customers, as well as amounts paid by riders but not yet received by the company[1078] - The company assesses expected credit losses based on historical credit loss experience, current economic conditions, and forecasts of future economic conditions[1079] - Investment securities and other investments include equity securities with readily determinable fair value, which are carried at fair value with unrealized gains and losses recorded in comprehensive income[1081] - Property and equipment, including bikes and e-bikes, are depreciated over estimated useful lives of 2-3 years, while vehicles are depreciated over 3-5 years[1092] - Intangible assets, such as trademarks and patents, are amortized over estimated useful lives ranging from 3-10 years, while online payment licenses are considered to have indefinite lives[1097] - Goodwill impairment testing is conducted annually, with RMB2,501,100 of impairment loss recognized in 2021, and no impairment losses in 2022 and 2023[1100] - The Group's ride hailing services in the PRC accounted for more than 97% of total revenues from China Mobility for the years ended December 31, 2021, 2022, and 2023[1110] - Contract assets amounted to RMB299,095 and RMB293,605 as of December 31, 2022 and 2023, respectively[1125] - Contract liabilities as of December 31, 2022 and 2023 were RMB565,058 and RMB1,004,818, respectively[1126] - Appropriations to the general reserve for the years ended December 31, 2021, 2022, and 2023 amounted to RMB11,414, RMB41,411, and RMB30,777, respectively[1107] - The Group's international revenues are derived from ride hailing services in Brazil and Mexico, as well as food delivery and financial services[1114] - The Group considers itself as the principal for ride hailing services in the PRC due to its control over service delivery and pricing[1112] - The Group acts as an agent for ride hailing services in overseas countries, recognizing revenue upon completion of services by drivers[1117] - The Group's financial services in overseas countries include interest income from micro loans and credit card services[1118] - The Group's bike and e-bike sharing revenues are classified as operating leases under ASC 842[1119] - The Group's customer loyalty program provides service discount vouchers and gifts based on accumulated membership points[1130] - Incentives to consumers not considered as customers from an accounting perspective are recorded as a reduction of revenues[1131][1132] - Sales and marketing expenses for advertising and promotion totaled RMB5,401,408, RMB3,297,560, and RMB4,283,366 for the years ended December 31, 2021, 2022, and 2023, respectively[1138] - Incentives provided to consumers amounted to RMB7,465,226, RMB2,778,465, and RMB3,403,793 for the years ended December 31, 2021, 2022, and 2023, respectively[1138] - Government grants recognized as reduction of specific costs and expenses amounted to RMB990,038, RMB458,141, and RMB254,623 for the years ended December 31, 2021, 2022, and 2023, respectively[1142] - Employee benefits expenses for PRC employees were RMB1,808,321, RMB1,940,168, and RMB1,880,363 for the years ended December 31, 2021, 2022, and 2023, respectively[1153] Assets and Liabilities - Cash and cash equivalents increased from RMB20.86 billion in 2022 to RMB27.31 billion in 2023, reflecting a 30.9% growth[1015] - Total current assets grew from RMB51.05 billion in 2022 to RMB65.48 billion in 2023, a 28.2% increase[1015] - Accounts and notes receivable increased from RMB2.25 billion in 2022 to RMB3.29 billion in 2023, a 46.0% rise[1015] - Total liabilities increased from RMB21.79 billion in 2022 to RMB30.78 billion in 2023, a 41.2% growth[1015] - Short-term borrowings rose from RMB4.94 billion in 2022 to RMB7.68 billion in 2023, a 55.5% increase[1015] - Accounts and notes payable increased from RMB2.87 billion in 2022 to RMB4.56 billion in 2023, a 59.0% rise[1015] - Total non-current assets decreased slightly from RMB80.16 billion in 2022 to RMB78.35 billion in 2023, a 2.3% decline[1015] - Long-term treasury investments decreased from RMB10.20 billion in 2022 to RMB7.89 billion in 2023, a 22.6% reduction[1015] - Intangible assets, net, decreased significantly from RMB1.72 billion in 2022 to RMB675.69 million in 2023, a 60.8% decline[1015]