Yilei and Julie Zhu

HONG KONG/BEIJING, (Reuters) – Didi Global Inc plans to relaunch ride-hailing apps and other services in China before the end of this year. They do so in anticipation Beijing’s probe into the company will be closed by that time, according to three individuals directly involved with the relaunch.

People who spoke out declined to identify themselves because the information was confidential said that they expected Chinese regulators in December to finalize any sanctions against the company.

According to one source, the company has put aside 10 billion Yuan ($1.6 million) in reserve for any possible fine.

China’s Cyberspace Administration of China launched in July ()App stores were ordered to delete 25 Didi mobile apps – this was just days after Didi, the ride-hailing company listed in New York. The company was also instructed to cease registering new users.

When Didi was asked about the plans to relaunch apps, and the potential fine amount that was being set aside by Reuters for the possibility of a fine, Didi stated that the information obtained from Reuters was just “pure hearsay without any basis in fact”, and said it is cooperating fully and actively with cybersecurity reviews. Didi declined to elaborate.

CAC has not yet responded to our request for comment.

Didi ran afoul with the CAC as it continued to list New York on June 30 despite being urged by the regulator to hold off while a cybersecurity audit of its data practices was done, separate sources tell Reuters.

CAC began an investigation of Didi regarding its use and collection of personal information. According to Didi, the data had been illegally obtained and it included applications for delivery services and camera devices as well as finance and banking services.

Didi replied at that time, saying it had stopped registration of new users, would comply with national security rules and personal data protection regulations and protect the rights of users.

Didi made changes to the apps in order to comply with China’s Personal Information Protection Law, which came into effect Nov. 1. Three people who are familiar with the matter stated that Didi had also completed training on the law for all employees.

According to one source, the new changes include a lengthy and updated user agreement that customers must sign. This clearly states which data will be collected as well as how it will used.

This source said that the company was also looking at new ways to attract drivers to the relaunch, as many people moved to other services because they were uncertain about the business.

Didi gives 25 million rides per hour in China each day to customers who sign up using an app that only requires their phone number and password.

The company’s New York debut saw its shares drop by half, leaving it valued at $43 billion. This investigation was conducted amid an array of Beijing regulatory actions that have upended standards in a variety of industries, including tech and property.

China specifically has directed its tech companies to secure user data storage amid widespread complaints of misuse and mismanagement which have lead to privacy violations.

New Personal Information Protection law stipulates that data must be processed for clear, reasonable purposes. It also outlines conditions companies may use to collect personal data. The law provides guidelines on how data can be protected during transfer outside of the country.

($1 = 6.3980)