22 August 2025 Dear registered shareholder(s), Arrangement of Electronic Dissemination of Corporate Communications Pursuant to Rule 2.07A of the Rules Governing The Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules") under the expansion of paperless listing regime and electronic dissemination of corporate communications that came into effect on 31 December 2023, CaoCao Inc. (the "Company") is writing to inform you that the Company has adopted electronic dissemination of co ...

Core Viewpoint - Cao Cao Mobility (02643) has seen its stock price rise over 9%, reaching a new high of 77.95 HKD, driven by recent announcements from multiple ride-hailing companies to lower commission rates, enhancing market stability and benefiting leading platforms like Cao Cao Mobility [1] Company Summary - Cao Cao Mobility has reduced its commission rate to 22.5%, while competitors like Didi and T3 have lowered theirs to 27%, indicating a trend towards lower fees in the industry [1] - The company is supported by the Geely Group's ecosystem, leveraging technology and manufacturing advantages to create a unique "customized vehicle + intelligent driving + mobility platform" Robotaxi self-research closed-loop ecosystem [1] - The company is expected to be included in the Hong Kong Stock Connect program in September, according to Huatai Securities [1] - The company plans to hold a board meeting on August 26 to approve its interim results [1] - Shenwan Hongyuan highlights Cao Cao Mobility's differentiated advantages in customized operations, cost control, and technological ecosystem, indicating a clear path to profitability with high growth potential in its Robotaxi business [1] Industry Summary - The reduction in commission rates by major platforms is expected to stabilize driver supply and contribute to a healthier long-term development of the ride-hailing market [1] - The overall market structure is anticipated to stabilize as leading platforms benefit from the industry's healthy development [1]

消息面上，近日，多家网约车宣布降低抽成。其中，滴滴出行、T3出行都将最高抽成降低至27%，曹操 出行则降低至22.5%。民生证券认为，行业主要平台宣布降低费率水平，将增强司机供给的稳定性和持 续性，长期将使得网约车平台市场格局走向稳定，该行认为行业头部平台网约车业务中长期均受益于行 业健康发展，关注多元化布局的平台公司曹操出行，深度依托吉利集团的生态支撑，公司叠加技术与制 造优势，构建国内首个"定制车+智能驾驶+出行平台"Robotaxi自研闭环生态。 恒指公司今日将发布上半年检讨结果，相关变动将于9月5日收市后实施并于9月8日起生效，据华泰证券 预测，曹操出行有望于9月被纳入港股通范围。另外，公司拟于8月26日举行董事会会议批准中期业绩。 申万宏源指出，曹操出行在定制化运营、成本控制及技术生态方面具备差异化优势，未来扭亏为盈路径 清晰，Robotaxi业务贡献高成长性及期权属性，潜在利润弹性值得关注。 智通财经APP获悉，曹操出行(02643)涨超9%，高见77.95港元创上市新高。截至发稿，涨8.94%，报77.4 港元，成交额5676.83万港元。 ...

长期困扰网约车司机的高抽成问题有望得到改善。 近期，滴滴出行、T3出行、曹操出行等平台接连发布公告，通过降低抽成比例，进一步保障司机权益。 集体官宣降低抽成比例 滴滴出行表示，今年年底前，平台将把每笔订单最高抽成上限从29%降至27%，超出27%的部分将随单返还。同时，针对每月在平台完成订单达到50单的 司机，平台将通过"返佣宝"保障其当月月均抽成上限不超过25%，超过部分将在次月自动返还至司机账户。 滴滴发布的新版账单示例 滴滴表示，2024年，平台所有订单平均抽成为14%。在公开透明的账单页面，司机可以看到每笔订单的抽成。司机师傅也可以通过滴滴车主App流水页面 查看司机收入报告，可以看到过去7天平均抽成和上月平均抽成。 T3出行表示，平台订单的抽成比例最高不超过27%，今年年底前将抽成比例26%~27%的订单数量占比从21%降至17%。对于每月订单完成量不少于50单 的平台司机，保障其当月流水总额的抽成上限不超过25%，超出部分自动返还司机。 关于半台减少抽成的公告 为切实加强保障广大司机权益,T3出行现就平 台抽成减少工作公告如下： 1.T3出行平台订单的抽成比例最高不超过27%。 今年年底前将抽成比 ...

Group 1 - The core viewpoint is that southbound funds have become a crucial driving force in the Hong Kong stock market, with their influence expected to deepen due to unique investment opportunities and long-term policy support [1][2] - Southbound funds account for over one-third of the daily net inflow in the Hong Kong Stock Exchange's main board trading volume and hold nearly 15% of the free float market capitalization of Hong Kong stocks, both metrics having increased by over 30% since before 2024 [2] - Cumulative net inflow from southbound funds has reached $14 billion since 2025, surpassing the total for 2024, with daily inflows increasing by 84.6% year-on-year [2] Group 2 - Stocks included in the southbound trading scheme typically show strong performance prior to inclusion, with an average increase of 3.7% in the 30 days before inclusion, outperforming the Hang Seng Index by 5.2% [3] - In February, 26 out of 27 stocks included in the southbound scheme rose in the 30 days prior, with an average absolute return of 41% and a relative return of 19% compared to the Hang Seng Index [3] - Post-inclusion, stocks may experience short-term pressure, with an average relative return of -2.0% over 30 days, but still show a long-term excess return of 4.6% over 90 days [3] Group 3 - Morgan Stanley has developed a southbound stock selection model (MSSBT) that accurately predicts stocks to be included in the scheme, achieving an average hit rate of 85% across the last four semi-annual inclusion cycles, with a peak of 97% in August 2024 [4] - The simulated portfolio under equal-weight allocation shows an average absolute return of 10.1% in the 30 days prior to inclusion, outperforming the Hang Seng Index by 7.4% [4] - The model employs strict selection criteria, including market capitalization above 50 billion HKD and compliance with turnover rate standards, while excluding stocks with high ownership concentration [4] Group 4 - The latest forecast indicates that 19 stocks will be included in the southbound scheme in September, covering seven major sectors, with healthcare (6 stocks) and industrials (5 stocks) making up over 50% of the list [5][6] - The top five candidates by market capitalization include Cao Cao Inc (Industrials), Ying En Biological (Healthcare), Nanshan Aluminum International (Materials), Zhengli New Energy (Industrials), and Yunzhisheng (Information Technology) [6] Group 5 - The recommended strategy for maximizing returns involves entering positions one month prior to inclusion, diversifying risk through equal-weight allocation of selected stocks, and locking in short-term gains by selling on the official inclusion date [8]

Core Viewpoint - The report by Shenwan Hongyuan highlights that Cao Cao Mobility, a significant ride-sharing platform under Geely Group, is actively developing customized fleets and Robotaxi autonomous driving services, showcasing a clear path to profitability and high growth potential [1][2]. Company Overview - Cao Cao Mobility operates in the ride-hailing service, vehicle sales, and vehicle leasing sectors, making it a key player in China's shared mobility market [1]. - The company has the largest customized ride-hailing fleet in the country, benefiting from Geely Group's strong vehicle research and manufacturing capabilities [1]. Business Strategy - The company employs a "pre-subsidy penetration + post-subsidy optimization" strategy for rapid market expansion, which is expected to improve revenue as user habits develop and operational scale increases [1]. - Revenue growth has consistently outpaced the industry average over the past two years, with a forecast for continued high growth in order volume over the next three years [1][2]. Financial Performance - Despite concerns about ongoing losses, Shenwan Hongyuan believes these are a temporary characteristic of the customized vehicle model, with operating cash flow turning positive in recent years and losses narrowing [2]. - The company is expected to achieve positive EBIT next year and reach profit margins comparable to industry leaders in the following year [2]. Technological Development - Cao Cao Mobility has established a comprehensive ecosystem in the Robotaxi sector, effectively mitigating external technology dependency risks [2]. - The self-developed "Qianli Haohan" autonomous driving solution supports its Robotaxi demonstration operations, with customized vehicles optimized for energy consumption, space, and safety in autonomous driving scenarios [2]. Market Position and Valuation - The company possesses differentiated advantages in customized operations, cost control, and technological ecosystem, with a clear path to profitability [2]. - Shenwan Hongyuan's absolute valuation method estimates the current target market value of Cao Cao Mobility at HKD 46.9 billion (RMB 42.8 billion), indicating approximately 21% upside potential, leading to a "buy" rating [2]. Stock Performance - Cao Cao Mobility was listed on the Hong Kong Stock Exchange on June 25, with an initial price of HKD 41.94 per share, and has seen a steady increase in stock price, reaching HKD 77 by August 19, representing a 69.3% increase from the issue price [3]. - The company is anticipated to be included in the Hong Kong Stock Connect list on September 8, according to predictions from institutions like Morgan Stanley [3].

Group 1 - The Hang Seng Index Company will announce the semi-annual review results of the Hang Seng series indices on August 22, 2025, with changes effective from September 8, 2025 [1] - Major brokerages, including UBS, Huatai Securities, and CICC, have released reports predicting adjustments to the Hang Seng Index, Hang Seng China Enterprises Index, and Hang Seng Composite Index [1][2] - CICC highlights the significant scale of passive funds tracking flagship indices, with ETF sizes for the Hang Seng Index, Hang Seng China Enterprises Index, and Hang Seng Technology Index being approximately $30.35 billion, $6.63 billion, and $26.12 billion respectively [1] Group 2 - Potential candidates for inclusion in the Hang Seng Index include Bank of Communications, Pop Mart, Yum China, XPeng Motors, Huazhu Group, JD Logistics, and Innovent Biologics [1][2] - UBS predicts that stocks likely to be included as blue-chip stocks are WuXi AppTec, Pop Mart, JD Logistics, Kingsoft, and Bank of Communications [2] - Historical data indicates that actual results of the Hang Seng Index's quarterly reviews may differ significantly from predictions based on market capitalization rankings [2] Group 3 - Companies such as Cao Cao Travel, InnoCare Pharma, and Chow Tai Fook are expected to be included in the Stock Connect list, which connects Hong Kong-listed companies with mainland investors [3] - CICC estimates that 19 stocks meet the criteria for inclusion in the Stock Connect, including Cao Cao Travel, InnoCare Pharma, and Nanshan Aluminum [3][4] - UBS forecasts potential additions to the Stock Connect list, including East Asia Bank, InnoCare Pharma-B, and Blue Moon Group [3] Group 4 - Huatai Securities also anticipates that 19 stocks may be added to the Stock Connect, including Yunzhisheng, Huiju Technology, and InnoCare Pharma-B [4] - Historical performance shows that newly included stocks in the Stock Connect tend to outperform the Hang Seng Index during the adjustment period, while stocks removed from the index face significant outflows [4]

Group 1 - The shared mobility industry is experiencing rapid growth, with the market expected to have a compound annual growth rate (CAGR) of 17% from 2025 to 2029, and the company holds a 5.4% market share in 2024, primarily in strong consumer cities [1] - The company operates the largest customized ride-hailing fleet in the country, with a focus on cost-effective and high-quality service, achieving a total cost of ownership (TCO) that is 33% and 40% lower than typical electric vehicles for its customized models [1] - The company plans to launch the "Cao Cao Zhixing" platform in 2025, with initial vehicles based on the Lynk & Co Z10 model, aiming for a gross profit margin of over 40% by 2030 for its Robotaxi service, which is expected to significantly reduce driver costs [3] Group 2 - The company is implementing a strategy of "initial subsidy penetration followed by gradual reduction," with plans to expand into 85 new cities in 2024, leading to improved performance as penetration rates increase [2] - The company forecasts a turnaround in net profit from -1.05 billion yuan in 2025 to 730 million yuan in 2027, with an expected EBIT margin comparable to Didi's Q1 2025 levels [3] - The company's current target market value is estimated at 42.8 billion yuan, indicating a potential upside of 21% [3]

Investment Rating - The report initiates coverage with a "Buy" rating for the company [6][7]. Core Views - The company is positioned as a ride-hailing platform under Geely Group, focusing on customized vehicle fleets and actively participating in the Robotaxi layout. It is expected to achieve a net profit of -1.05 billion, -0.08 billion, and 0.73 billion RMB from 2025 to 2027, with corresponding net profit margins of -5%, 0%, and 2% [6][7]. - The company is experiencing rapid revenue growth, with a projected revenue increase from 10.67 billion RMB in 2023 to 29.93 billion RMB in 2027, reflecting a compound annual growth rate (CAGR) of 39.8% [5][6]. - The Robotaxi business is anticipated to contribute significantly to future profitability, with a potential gross margin exceeding 40% by 2030, driven by reduced driver costs [6][7]. Summary by Sections Company Overview - The company, established in 2015 and backed by Geely Group, aims to create a shared ecosystem for new energy vehicles. It has expanded its operations to include ride-hailing services, vehicle sales, and rentals [6][15]. - The company has achieved a market share of 5.4% in the ride-hailing industry, ranking second, and is expanding into lower-tier cities [6][47]. Financial Data and Profit Forecast - Revenue is expected to grow significantly, with estimates of 10.67 billion RMB in 2023, 14.66 billion RMB in 2024, and reaching 20.51 billion RMB in 2025 [5][6]. - The company is projected to reduce its net loss from -1.91 billion RMB in 2023 to -1.05 billion RMB in 2025, with a path to profitability by 2027 [5][6]. Industry Analysis - The shared mobility market in China is expected to grow at a CAGR of 17% from 2025 to 2029, with the market size projected to reach 804.2 billion RMB [6][38]. - The Robotaxi segment is entering a phase of commercialization, with significant market potential as technology advances towards higher levels of automation [6][54]. Competitive Advantages - The company leverages a customized vehicle fleet strategy, enhancing service quality and optimizing cost control. The first-generation model, Maple 80V, and the second-generation model, Cao Cao 60, are designed specifically for ride-hailing services, offering competitive total cost of ownership (TCO) [6][63][66]. - The integration with Geely Group provides a comprehensive ecosystem that supports vehicle design, manufacturing, and operational efficiency, creating a competitive barrier [6][21].

Investment Rating - The report initiates coverage with a "Buy" rating for the company [2][7]. Core Views - The company is positioned as a ride-hailing platform incubated by Geely Group, focusing on building a new energy vehicle sharing ecosystem. It has achieved rapid business expansion and is on the verge of turning profitable [6][17]. - The ride-hailing industry in China is experiencing high growth, with the company holding the second-largest market share and benefiting from a strong consumer base in first- and second-tier cities [6][51]. - The company is implementing a customized vehicle strategy, which enhances service quality and optimizes cost control, contributing to a clearer path to profitability [6][67]. Financial Data and Profit Forecast - Revenue is projected to grow significantly from 10,668 million RMB in 2023 to 29,931 million RMB in 2027, with a compound annual growth rate (CAGR) of 39.8% from 2023 to 2025 [5][28]. - The net profit attributable to ordinary shareholders is expected to improve from -1,916 million RMB in 2023 to 727 million RMB in 2027, indicating a turnaround in profitability [5][7]. - The company’s gross profit margin is anticipated to increase from 5.8% in 2023 to 15.3% in 2027, reflecting improved operational efficiency [5][34]. Industry Overview - The shared mobility market in China is projected to grow at a compound annual growth rate of 17% from 2025 to 2029, with significant potential for market expansion [6][42]. - The Robotaxi segment is entering a phase of commercialization, with substantial market opportunities anticipated as technology advances [6][58]. Customized Vehicle Strategy - The company operates the largest customized ride-hailing fleet in the country, with a focus on cost-effective vehicle models that enhance user experience and operational efficiency [6][67]. - The total cost of ownership (TCO) for the company's customized vehicles is significantly lower than that of typical electric vehicles, providing a competitive edge [6][72]. Robotaxi Development - The company plans to launch the "Caocao Zhixing" platform in 2025, with initial Robotaxi services already piloted in Suzhou and Hangzhou, indicating a strong commitment to integrating autonomous driving technology [6][63]. - The long-term profit potential of the Robotaxi business is substantial, with estimates suggesting a gross margin exceeding 40% by 2030 [6][7].