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Didi Says China's Ban of Its Apps Will Hurt Revenue

'The company expects that the app takedown may have an adverse impact on its revenue in China,' Didi says.
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Didi Global's  (DIDI)  U.S.-listed shares fell after the Chinese ride-hailing company said the Chinese government’s shutdown of 25 of its apps would dent its revenue.

“On July 9, the Cyberspace Administration of China confirmed that 25 apps operated by the company in China, including the apps used by users and drivers, had the problem of collecting personal information in serious violation of relevant [Chinese] laws and regulations,” Didi said in a statement.

“The CAC notified app stores to take down these apps and cease to provide viewing and downloading service in China.”

The result: “The company expects that the app takedown may have an adverse impact on its revenue in China,” Didi said.

Didi traded down 2.83% in premarket trading to $11.69. Didi’s initial public offering was priced at $14 on June 29. It has since dropped 16%.

Didi shares slumped last week on the move by Beijing.

The Wall Street Journal reported that Didi was given notice of the investigation prior to its $4.4 billion IPO on the New York Stock Exchange last week, although the company told Reuters it had no knowledge of the CAC's intention's before the announcements made on July 2 and July 4.

Last week, TheStreet founder Jim Cramer offered reasons to stay away from the stock.

Didi had more than double the revenue of Uber Technologies  (UBER)  last year, and plans to have 800 million monthly active users by 2022.

The company raised $4.4 billion through the sale of 317 million American depositary receipts in its much-anticipated IPO.