Didi Global, the preeminent ride-hailing service in China, reported a net income of 929 million yuan (approximately $128.42 million) for the third quarter of the current fiscal year on Friday. This notable achievement signifies a substantial recovery in the company's operations following a period of regulatory scrutiny and challenges.

In contrast to the previous year's corresponding quarter, when a net loss of 284 million yuan was recorded, the recent financial statement reflects a positive turnaround. It is important to note that the company's financial statement has undergone adjustments due to the adoption of a new accounting standard earlier this year.

As Didi Global continues its trajectory of recovery from the significant impact of regulatory actions, its revenue experienced a commendable 5% increase, reaching 53.9 billion yuan for the three-month period concluding on September 3rd.

The organization came under the scrutiny of China's cyberspace regulatory body in 2021 due to its pursuit of an initial public offering in the United States without obtaining the requisite approvals. This led to an investigation that imposed restrictions on user growth and resulted in the removal of numerous applications from app stores.

In July 2022, Didi was subjected to a $1.2 billion fine for a data security breach. However, it subsequently received authorization to reinstate its applications in early 2023.

Despite the challenging economic climate, there are indications of a gradual recovery in travel demand within China. During the quarter, Didi processed 3.2 billion transactions, representing a year-on-year increase of 10.6% across its platforms in the country.

In comparison to Uber, Didi's primary source of revenue is China, with a notable presence in Brazil and Mexico.

International operations revenue for Q3 rose to 2.9 billion yuan, a significant increase from the 2 billion yuan reported in the same period last year.

Over the past two years, Didi has strategically focused on divesting non-core assets. This includes the sale of its smart cockpit division to a subsidiary of the state-backed map provider NavInfo in August.

Additionally, in the previous year, the company divested its electric vehicle development business, transferring the majority of its EV-related assets to Xpeng.