Didi, the Chinese ride-hailing company, returned to profitability in the fourth quarter.

China’s largest ride-hailing company, Didi Global, announced on Saturday that it had achieved a profit in the fourth quarter, indicating a gradual recovery from challenges following extended regulatory scrutiny.

In the three months ending December 31, Didi Global reported a net income attributable to shareholders of 818 million yuan ($113.15 million), compared to a loss of 953 million yuan in the previous year. Revenues surged by 55.4% to 49.4 billion yuan for the quarter.

In 2021, Didi faced intense scrutiny from China’s cyberspace regulator for its attempt to launch a U.S. initial public offering without approval, leading to an inquiry that restricted its user growth and resulted in the removal of its apps from major app stores. The company was fined $1.2 billion in July 2022 for data security violations. It began rebounding from regulatory challenges in early 2023 when it was permitted to reintroduce its apps.

However, Didi’s net profit in Q4 2023 was impacted by a significant one-time expense incurred in November. This expenditure was associated with compensating users for a glitch that disrupted its ride-hailing app. As part of its apology for the disruption, which lasted for hours, the company distributed millions of customers with coupons valued at 10 yuan ($1.40) each.