(Bloomberg) — Didi Global Inc. disclosed a $4.7 billion loss after revenues shrank in the September quarter, revealing the rising cost of a series of regulatory actions that will force China’s ride-sharing leader to shift its listing to Hong Kong next year.

Didi, one of the highest-profile targets of a broad Beijing campaign to rein in the country’s giant tech sector, reported $6.6 billion of sales, down more than 13% from the June quarter and 1.6% from a year earlier. As the company is preparing to leave New York, this surprise revelation comes as Didi’s sales drop more than 13%.

This ride-hailing company plans to partner with Goldman Sachs Group Inc (NYSE :)., CMB International, and CCB International about the shift. This could potentially be a listing by introduction according to people who are familiar with the matter. That arrangement, which doesn’t involve any fundraising, requires little marketing and would allow U.S. investors to swap their shares for the new stock in Hong Kong.

Once hailed for ousting Uber Technologies (NYSE:) Inc. from China, Didi has become one of the highest-profile targets of Beijing’s campaign to rein in its increasingly powerful tech sector. After launching the New York launch despite fears about its security, Didi became furious with regulators and prompted a string of investigations that led to the forced delisting. New York was the worst city for its stock.

Learn more: Didi sends a warning to China-based investors that the worst was already over

Bloomberg Intelligence – What It Says

Didi Global Inc.’s longer-term growth outlook is clouded by Chinese regulators’ crackdown on its use of consumer data, as restrictions could inhibit its ability to efficiently grow its core mobility business and introduce new products. Its near-monopoly of China’s $50 billion domestic ride-hailing market, which is expected to more than double by 2025, is a solid foundation for growth as long as Didi can navigate the regulatory situation. But its ride-sharing venture in international may not be as successful and it could continue to lose money. The possibility of delisting New York from the stock exchange and listing in Hong Kong is a sign that things could get messy.

Matthew Kanterman, Tiffany Tam

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The unprecedented move underscored the depth of Beijing’s concern about the potential leakage of sensitive data to a geopolitical rival, as well as the extent to which the government will go to punish Didi for contravening its wishes. In Wednesday’s surprise disclosure, the company announced Alibaba (NYSE:) Group Holding Ltd. The Chairman Daniel Zhang resigned and was to be succeeded by an executive from Alibaba of a lower rank.

Didi has been hit hard by regulatory uncertainty, increasing its costs of doing business and allowing rivals such as Meituan gain market share. Didi reported a September quarter net loss of 30.4 million Yuan, a decrease from the 665million yuan profit it made a year ago.

The quarter ended with Didi having to meet new demands to improve its driver compensation and data governance. Spending increased 16% Chinese regulators approved a series of guidelines in November that included driver rights protections. A 20.8 billion Yuan investment loss was also recorded by the company, largely due to losses in its community group buying, which is geared towards hyper-local grocery shopping.

It’s unclear if more punishments are in store for Didi, which is controlled by the management team of co-founder Cheng Wei and President Jean Liu and backed by big names including Alibaba and Tencent Holdings (OTC:) Ltd.

Beijing’s moves against Didi have been particularly harsh, even by the standards of a year-long crackdown that’s engulfed giants like Alibaba and Tencent. The Cyberspace Administration of China saw Didi’s IPO decision as a challenge to the central government’s authority, which led to the , the Ministry of Public Security, the Ministry of State Security and several other agencies initiating on-site inspections at Didi’s offices in July.

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