Core Insights - PwC has successfully assisted five outstanding companies from mainland China in their IPOs on the Hong Kong Stock Exchange, showcasing strong performance [1] - The companies include Yunzhisheng, Yingtong Holdings, Cao Cao Travel, Rongda Hezhong, and Bokan Vision, each representing different sectors such as AI, consumer goods, ride-sharing, technology solutions, and ophthalmic biotechnology [1][3][4] Company Summaries - Bokan Vision Pharmaceutical Co., Ltd. was listed on July 3, 2025, under stock code 2592, focusing on developing treatments for chronic eye diseases with two core self-developed products [1] - Rongda Hezhong Technology Group Co., Ltd. was listed on June 10, 2025, under stock code 9881, providing technology solutions and serving as an important player in the market [3] - Cao Cao Travel, a ride-hailing platform incubated by Geely Group, was listed on June 25, 2025, under stock code 02643, becoming a strong competitor in the industry [3] - Yingtong Holdings, the largest perfume group in China (including Hong Kong and Macau), was listed on June 26, 2025, under stock code 6883, focusing on brand expansion and distribution [3] - Yunzhisheng Intelligent Technology Co., Ltd. was listed on June 30, 2025, under stock code 9678, specializing in AI solutions with a focus on enhancing operational efficiency and decision-making [4]

Core Viewpoint - Caocao Travel's listing on the Hong Kong Stock Exchange marks it as the largest ride-hailing platform in Hong Kong, but it faced significant stock price decline on its debut, indicating market skepticism about its financial health and future profitability [1][4]. Group 1: Company Overview - Caocao Travel, founded in 2015 and incubated by Geely Group, became the fourth listed ride-hailing company in China after Didi, Ruqi, and Dida [1]. - The company reported a revenue growth from 7.153 billion yuan in 2021 to 14.7 billion yuan in 2024, but it has accumulated losses totaling 8.241 billion yuan [1][4]. - As of June 30, 2023, Caocao's stock price was down 14.3% from its IPO price, with a market capitalization of 19.56 billion HKD [1]. Group 2: Financial Performance - The company has a high liquidity risk, with current liabilities reaching 9.682 billion yuan and cash reserves of only 159 million yuan [1]. - Despite narrowing losses, the net loss per order is projected to decrease to 1.34 yuan by 2024, indicating a long path to profitability [1][4]. Group 3: Competitive Landscape - Caocao Travel faces intense competition, with Didi still holding a 75% market share despite its delisting, and tech giants like Huawei and Tencent entering the ride-hailing space [4]. - The company's business model heavily relies on Geely's ecosystem, which may limit its ability to diversify its vehicle offerings and meet varied consumer demands [4]. Group 4: Leadership and Strategy - Li Shufu's control over Caocao Travel is significant, holding 83.9% of the shares through indirect ownership, reinforcing his influence in the automotive and mobility sectors [2]. - The listing of Caocao Travel is part of Geely's strategy to create a comprehensive ecosystem encompassing vehicle manufacturing, mobility services, and technology [9]. Group 5: Market Position and Future Outlook - The listing enhances Geely's capital portfolio, which now includes ten publicly traded companies with a total market value of approximately 699 billion yuan [2][6]. - The ongoing competition between traditional manufacturing and internet-driven business models, exemplified by Li Shufu and Lei Jun, highlights differing philosophies in the automotive industry [9].

Core Viewpoint - Li Shufu has expanded his capital empire with the recent IPO of Cao Cao Travel, marking his 10th listed company and solidifying his position as the leader of the most listed companies among domestic automakers [2][5][12]. Company Overview - Cao Cao Travel has successfully listed on the Hong Kong Stock Exchange under the stock code 02643.HK, with an initial offering price of HKD 41.94 per share. However, the stock price fell significantly on its debut, closing at HKD 36.00, a drop of over 14.16% [2][3]. - As of June 30, the market capitalization of Cao Cao Travel stands at HKD 19.56 billion, which is significantly higher than its competitors, such as Ruqi and Dida, whose market caps are HKD 2.037 billion and HKD 1.151 billion, respectively [6][10]. Financial Performance - The prospectus indicates that Cao Cao Travel has completed three rounds of equity financing before its listing, raising over RMB 2.8 billion [5][8]. - From 2021 to 2024, the company is projected to incur cumulative operating losses of RMB 8.241 billion, while revenues are expected to grow from RMB 7.153 billion in 2021 to RMB 14.7 billion in 2024, representing a 109% increase [10][11]. - Despite not being profitable yet, the company's losses are narrowing, with the average monthly net loss since 2021 being approximately RMB 147 million [11][10]. Shareholding Structure - The largest shareholder of Cao Cao Travel's parent company, Hangzhou Youxing Technology Co., Ltd., is Zhejiang Jidi Technology Co., Ltd., holding 69.927% of the shares. Li Shufu is the ultimate beneficiary of this company, controlling 91% of the shares through various entities [8][9]. Comparison with Competitors - Li Shufu's business empire is often compared to that of Lei Jun, with discussions around who has a stronger commercial footprint. While Li Shufu has 10 listed companies, Lei Jun has only 4, but his company Xiaomi has seen significant stock price appreciation [18][21]. - As of June 30, Li Shufu's ten listed companies have a total market capitalization of approximately RMB 699 billion, with notable increases in value for most of these companies compared to the previous year [12][14].

Core Viewpoint - Caocao Mobility has officially listed on the Hong Kong Stock Exchange, becoming the largest technology mobility platform in the market, backed by major industry players like Mercedes-Benz and Guoxuan High-Tech, which highlights its differentiated value proposition in the customized vehicle ecosystem and Robotaxi strategy [1][3]. Market Dynamics and Industry Challenges - Despite the initial stock price volatility post-listing, the overall market sentiment and profitability expectations in the mobility sector have influenced this fluctuation [3][4]. - The Hang Seng Tech Index has experienced a downturn since mid-March 2023, impacting investor sentiment and market performance [3]. - The Chinese mobility market is projected to grow from 6.895 trillion yuan in 2022 to 8 trillion yuan in 2024, with a compound annual growth rate of 5.4% from 2025 to 2029, yet challenges such as "economies of scale" and high fixed costs persist [4][5]. Business Model and Competitive Advantage - Caocao Mobility is leveraging its integration with Geely Group to build a customized vehicle ecosystem, which is expected to enhance its long-term value proposition [5][7]. - The company has developed two customized vehicles, the Maple Leaf 80V and Caocao 60, which focus on cost efficiency and passenger experience, leading to a significant reduction in total cost of ownership (TCO) by 36.4% compared to typical electric vehicles [7][8]. - The average gross margin is projected to improve from 5.8% in 2023 to 8.5% in Q1 2025, driven by the increasing share of customized vehicle orders [7][10]. Driver and User Engagement - Caocao Mobility has successfully increased driver earnings, with average hourly income rising from 30.9 yuan in 2022 to 35.7 yuan in 2024, outperforming industry averages [9]. - The company has been recognized for its service quality, achieving a significantly lower accident rate compared to industry norms, which enhances user retention and loyalty [9]. Future Growth and Strategic Focus - The company plans to allocate 48% of its IPO proceeds towards upgrading customized vehicles, developing Robotaxi technology, and expanding geographically, indicating a strategic focus on creating a closed-loop ecosystem of customized vehicles, autonomous driving, and mobility services [10][11]. - The anticipated growth of the Robotaxi market in China, projected to reach a trillion yuan by 2030, positions Caocao Mobility favorably for future expansion and valuation enhancement [10][11].

Core Viewpoint - Cao Cao Mobility (02643.HK) listed on the Hong Kong Stock Exchange on June 25, 2024, but experienced a significant drop in share price on its first day, closing at 36 HKD per share, down 14.16% from the issue price of 41.94 HKD per share [2] Group 1: Company Overview - Cao Cao Mobility is a ride-hailing platform incubated by Geely Group, operating in 136 cities as of December 31, 2024 [2] - The company's Gross Transaction Value (GTV) reached 12.2 billion CNY in 2023, a 37.5% increase from 2022, and is projected to grow to 17 billion CNY in 2024, representing a 38.8% increase [2] - The market share of Cao Cao Mobility is reported to be 5.4% [2] Group 2: IPO and Financials - The company raised approximately 1.853 billion HKD through its IPO, with a post-listing valuation of 22.823 billion HKD [3] - 30% of the raised funds will be used for debt repayment and operational funding, as the company has a high debt-to-asset ratio of 276.71% and total debts of 7.219 billion CNY against cash reserves of only 159 million CNY [3] - Cao Cao Mobility has not yet achieved profitability, with cumulative losses exceeding 8.2 billion CNY from 2021 to 2024, despite increasing revenues [4] Group 3: Operational Challenges - The company operates on a B2C model, owning a fleet of over 33,000 vehicles, which incurs significant depreciation and maintenance costs [6] - Cao Cao Mobility heavily relies on aggregation platforms for customer acquisition, with orders from these platforms accounting for 85.4% of its GTV in 2024 [6] - The commissions paid to aggregation platforms have increased from 321 million CNY in 2022 to 1.046 billion CNY in 2024 [6] Group 4: Regulatory Issues - The company faces compliance issues, with a significant number of vehicles and drivers lacking the necessary permits, leading to multiple regulatory penalties [7] Group 5: Strategic Initiatives - The company is promoting a "customized vehicle" strategy, leveraging Geely Group's automotive resources to enhance driver retention and reduce operational costs [8] - Cao Cao Mobility is collaborating with Geely Group to develop a dedicated L4-level Robotaxi, expected to launch by the end of 2026 [9]

Core Viewpoint - Caocao Travel's stock price drop on its debut reflects structural challenges in the ride-hailing industry, yet the company is pursuing a unique path to overcome these obstacles [1][2] Group 1: Reasons for Stock Price Drop - The stock price drop is attributed to both internal and external factors, including a persistently low liquidity in the Hong Kong market, which has negatively impacted valuations of unprofitable tech growth stocks [2] - The ride-hailing industry faces significant profitability challenges due to multiple cost pressures, including regulatory limits on platform commissions, high driver costs, and substantial fixed costs related to vehicle acquisition and maintenance [2] - Despite achieving positive gross margins and adjusted EBITDA, Caocao Travel has accumulated losses exceeding 8.2 billion yuan from 2021 to 2024, leading some investors to adopt a wait-and-see approach [2] Group 2: Unique Solutions by Caocao Travel - Caocao Travel differentiates itself by leveraging Geely Group's ecosystem to integrate supply chains and reconstruct unit economics, focusing on customized vehicles designed specifically for ride-hailing scenarios [3] - The customized vehicles, developed in collaboration with Geely, feature cost-saving designs and enhanced durability, which improve driver experience and operational efficiency [3] - Financial indicators show improvement, with gross margins projected to rise from -4.4% in 2022 to 8.1% in 2024, and adjusted EBITDA rates improving from -10.1% in 2022 to 2.6% in 2024 as the share of customized vehicle orders increases [3][4] Group 3: Future Prospects and Strategic Positioning - Caocao Travel is positioned uniquely for the Robotaxi era, being the only company in China with full-stack capabilities in customized vehicle manufacturing, autonomous driving technology, and ride-hailing platform operations [5] - The existing customized vehicle ecosystem serves as an ideal training ground for Robotaxi operations, with plans to launch L4 autonomous driving customized Robotaxi models by the end of 2026 [5] - The backing of strategic investors like Mercedes-Benz and Guoxuan High-Tech highlights Caocao Travel's value as a hub for smart electric mobility, indicating a shift from a ride-hailing platform to a smart transportation technology ecosystem [6] Group 4: Conclusion - The volatility in the Hong Kong market and the inherent low-profit characteristics of the industry are the backdrop for Caocao Travel's stock price drop, with future focus on achieving profitability and validating its business model [7] - The comprehensive Robotaxi ecosystem built on Geely's support represents a rare opportunity for Caocao Travel to tap into the trillion-dollar autonomous driving market, potentially transforming its valuation from a ride-hailing platform to a smart transportation technology entity [7]

Core Insights - Cao Cao Mobility officially listed on the Hong Kong Stock Exchange on June 25, 2025, following the listings of Dida Chuxing and Ruqi Mobility in 2024, with high investor interest reflected in a 21.14 times oversubscription in the public offering and 2.78 times in the international offering [3] - Despite the strong market interest, the stock opened below the issue price of HKD 41.94 and closed at HKD 36.00, representing a decline of 14.16% on the first day [3] - The company aims to enhance operational efficiency in individual cities and achieve regional profitability, particularly in second and third-tier cities, amidst a competitive market transitioning from scale expansion to quality development [8] Financial Performance - Cao Cao Mobility's revenue grew significantly from RMB 76.31 billion in 2022 to RMB 146.57 billion in 2024, with a compound annual growth rate (CAGR) of 38.5% [5] - The company reported continuous losses, with net losses of RMB 20.07 billion, RMB 19.81 billion, and RMB 12.46 billion from 2022 to 2024, totaling RMB 52.34 billion [5] - The sales cost increased from RMB 79.7 billion in 2022 to RMB 134.72 billion in 2024, impacting profitability [5] Debt and Financial Pressure - Cao Cao Mobility's short-term and long-term debts rose from RMB 34.72 billion in 2022 to RMB 56.77 billion in 2024, with a debt ratio of 177% by the end of 2024 and cash and cash equivalents of only RMB 1.59 billion [6] - The company's reliance on third-party aggregation platforms increased, with orders from these platforms rising from 49.9% of Gross Transaction Value (GTV) in 2022 to 85.4% in 2024, leading to a surge in commission costs from RMB 3.2 billion to RMB 10.5 billion [6] Strategic Focus - To differentiate itself, Cao Cao Mobility is focusing on customized vehicles and autonomous driving, leveraging resources from Geely Auto Group to build the largest customized vehicle fleet in China, with over 34,000 vehicles operating in 31 cities by the end of 2024 [7] - The company has launched the Cao Cao Zhixing platform and is piloting Robotaxi services in Suzhou and Hangzhou, indicating a commitment to innovation despite the associated financial and technical challenges [8] - As of March 2025, the service coverage expanded to 146 cities, highlighting the company's growth potential [8]

Core Insights - Cao Cao Mobility, incubated by Geely Group, is launching a global IPO, revealing its competitive advantages and growth strategy in the increasingly competitive ride-hailing market in China [1] Group 1: Business Model and Competitive Advantage - Cao Cao Mobility's unique business model centers around a fleet of customized vehicles, which are designed specifically for ride-sharing scenarios, providing a significant cost advantage [2] - As of December 31, 2024, the company has deployed over 34,000 customized vehicles across 31 cities, recognized as the largest in China by a third-party agency [2] - The total cost of ownership (TCO) for its vehicles, such as the Fengye 80V and Cao Cao 60, is reduced by 33% to 40% compared to typical electric vehicles in the industry [2] Group 2: Market Expansion Strategy - In 2024, Cao Cao Mobility expanded into 85 new cities using a "light asset" model, partnering with local capacity providers to sell customized vehicles rather than managing its own fleet [3] - By the end of 2024, the company operated in 136 cities, achieving a gross transaction value (GTV) of 17 billion yuan, a 38.8% increase from 2023 [3] - The contribution of partner drivers to GTV rose from 55% in 2022 to 72.3% in 2024, indicating the effectiveness of the partnership model [3] Group 3: Technological Innovation - The "Cao Cao Brain" system enhances operational efficiency through real-time supply-demand analysis, achieving an order response rate of approximately 88%, surpassing the industry average of 70%-80% [4] - Safety metrics are strong, with accident rates per million orders significantly lower than industry averages, attributed to advanced safety technologies in customized vehicles [4] - The company is also venturing into autonomous driving, with plans to launch L4 autonomous vehicles by the end of 2026 [4] Group 4: Financial Performance - From 2022 to 2024, Cao Cao Mobility's revenue increased from 7.6 billion yuan to 14.7 billion yuan, with a gross margin improvement from -4.4% to 8.1% [5] - The adjusted EBITDA margin improved from -10.1% to 2.6%, showcasing the potential for profitability as the company scales [5] - Vehicle sales revenue reached 867 million yuan in 2024, a significant increase from 0.4% in 2022, indicating a new growth driver [5] Group 5: Industry Outlook - The Chinese ride-sharing market is projected to grow from 344.4 billion yuan in 2024 to 804.2 billion yuan by 2029, with a penetration rate increase from 4.3% to 7.6% [6] - The cost advantage of ride-sharing over private car ownership is significant, with ride-sharing costing approximately 2.7 yuan per kilometer compared to 4.5 yuan for private vehicles [6] - Cao Cao Mobility is positioned to leverage these market trends through its differentiated approach, including customized vehicles and technological advancements [6]

Core Viewpoint - The expectation from Li Shufu for Cao Cao Mobility to "surpass Didi to be successful" appears increasingly like an unattainable dream in the current market context [1] Company Overview - Cao Cao Mobility, incubated by Geely, has faced significant financial challenges, including a cumulative loss of 5.2 billion yuan over three years and a high dependency on aggregator platforms for 85.4% of its orders [4][5][14] - The company went public on June 25, 2025, but its stock price plummeted by 19.4% on the first day, closing at 36 HKD, resulting in a market capitalization of approximately 19 billion HKD [3][6] Financial Performance - Revenue increased from 7.63 billion yuan in 2022 to 14.66 billion yuan in 2024, but net losses remained substantial at 20.07 million, 19.81 million, and 12.46 million yuan for the respective years [5][7] - As of the end of 2024, total liabilities reached 11.28 billion yuan, with cash and equivalents only at 159 million yuan, indicating a precarious financial position [5][8] Business Model and Strategy - Cao Cao Mobility operates under a B2C heavy asset model, which has led to high operational costs and limited expansion capabilities, with a gross margin of only 8.1% compared to Didi's 18.15% [10][13] - The company has been forced to allocate 34% of its IPO proceeds to repay short-term debts, highlighting the necessity of financing for survival rather than growth [8] Market Environment - The overall market sentiment is negative, as evidenced by the poor performance of other similar companies like Dida and Ruqi, which have seen their stock prices drop by 80% [9] - Despite the projected growth of the shared mobility market in China, the competitive landscape remains dominated by Didi, making it challenging for other players to achieve economies of scale [9] Future Outlook - Cao Cao Mobility's reliance on aggregator platforms has increased significantly, with commissions paid to these platforms reaching 1.046 billion yuan in 2024, which is 85.7% of its sales expenses [14] - The company plans to invest 17% of its IPO proceeds (approximately 295 million HKD) into autonomous driving research, but this amount is significantly lower than competitors like Waymo and Baidu [15]

Core Viewpoint - The listing of Cao Cao Mobility on the Hong Kong Stock Exchange has drawn significant attention, despite a disappointing stock performance on its debut, with a drop of 14.76% from the issue price, resulting in a market capitalization of HK$195 billion [1][2]. Group 1: Industry Landscape and Strategic Choices - The domestic ride-hailing industry has evolved from intense competition to a market dominated by a few major players, with Cao Cao Mobility emerging as a leader in the second tier alongside T3, Shouqi, and Hello Chuxing [4][5]. - The timing of Cao Cao Mobility's market entry is strategic, backed by the strong capital operation experience of its parent company, Geely Holding Group, which has successfully navigated various capital markets [5]. - The current market environment presents a "timing" advantage, as the Chinese electric vehicle industry is experiencing rapid growth, benefiting platforms like Cao Cao Mobility that are closely tied to this sector [7][8]. Group 2: Stock Price Volatility and Business Fundamentals - Despite the poor stock performance on its first day, the fundamental business performance of Cao Cao Mobility shows a positive trend, with projected revenues increasing from HK$76.31 billion in 2022 to HK$146.57 billion in 2024, while losses are expected to decrease significantly [9][10]. - The company's ability to survive in a competitive environment and achieve substantial revenue growth indicates effective strategic positioning and operational efficiency [9][10]. Group 3: Commitment to Steady Operations - Moving forward, Cao Cao Mobility should focus on maintaining a steady growth trajectory, avoiding reckless expansion and price wars, and instead enhancing user experience and operational efficiency [11]. - The ride-hailing industry is transitioning to a phase of high-quality development, where companies must build core competencies in efficiency, service, cost, and compliance to thrive [11][12].