Summary of the Conference Call for Cao Cao Mobility Company Overview - **Company**: Cao Cao Mobility - **Current Valuation**: Approximately HKD 20 billion - **Projected Revenue for the Year**: CNY 26 billion - **Comparison**: Positioned against Didi, Uber, and Lyft in the ride-hailing sector [2][3][12] Industry Insights - **Evolution of Ride-Hailing**: Transition from traditional taxis to ride-hailing and now to autonomous vehicles, with algorithms replacing drivers and vehicle management handled by rental companies or platforms [2][4] - **Cost Advantage**: Shared mobility prices per kilometer are nearly half that of private cars, indicating potential to replace some private car demand. The private car market in China is approximately CNY 11 trillion [2][4] - **Market Size**: - China’s ride-hailing vehicle count is around 5 million, with expectations of a single operating entity exceeding 10,000 vehicles by 2028 and a 50% penetration rate for autonomous vehicles by 2030 [5] - Global Robotaxi count is projected to exceed 1.5 million by 2030, with North America leading in development, followed by China and the Middle East [5][8] Competitive Positioning - **Strategic Partnerships**: Backed by Geely, enhancing operational capabilities and technology through partnerships with Qianli Technology [2][6][7] - **Market Role**: Positioned as a third-party traffic platform in the autonomous vehicle era, similar to Didi in the ride-hailing era, with diversified supply sources [3][9] Financial Projections - **2026 Goals**: Aim to operate 500 Robotaxis, with expectations of reducing losses in traditional ride-hailing operations and achieving a projected revenue of CNY 26 billion, with a slight net loss of CNY 270 million [3][10] - **Long-term Vision**: Plans to operate around 100,000 Robotaxis by 2030, anticipating a market turning point by 2028 that will drive company valuation growth [3][11] Investment Opportunities - **Undervalued Status**: Current valuation is considered low compared to peers; if Didi lists successfully, its valuation should exceed that of Lyft or Uber. A price-to-sales ratio of at least 1x is suggested based on projected revenues [2][12] - **Catalysts for Growth**: Key developments such as Tesla's Subcab production in 2026, the launch of XPeng's second-generation VRA model, and the introduction of L3/L4 national standards are expected to accelerate market growth [3][13] Conclusion Cao Cao Mobility is positioned as a significant player in the evolving ride-hailing and autonomous vehicle market, with strong backing, strategic partnerships, and a clear growth trajectory. The company is currently undervalued, presenting potential investment opportunities as the market transitions towards autonomous mobility.

Core Viewpoint - Cao Cao Mobility (02643) has seen a nearly 10% increase in stock price, currently trading at 36.2 HKD, following the announcement of two strategic acquisitions aimed at enhancing its service offerings in the business travel sector [1] Group 1: Strategic Acquisitions - The company plans to fully acquire Weixing Technology (Yao Travel) and Geely Business Travel, which will become wholly-owned subsidiaries upon completion of the transactions [1] - CEO Gong Xin stated that the acquisitions will enable the company to create a comprehensive service chain for daily commuting, business reception, and travel management, thereby generating business growth in the B2B travel sector [1] Group 2: Market Position and Financial Performance - According to Guotai Junan Securities, Cao Cao Mobility has established a leading capacity network and customized vehicle ecosystem in the Chinese mobility market, currently holding the second-largest market share [1] - The company has been optimizing operational efficiency and the lifecycle costs of its vehicles, leading to a significant reduction in Non-GAAP net losses, indicating that a profitability turning point is approaching [1] - The company is also leveraging its relationship with Geely to actively invest in autonomous driving, positioning itself as a core entry point for the commercialization of technology [1] Group 3: Future Outlook - Overall, the company is entering a phase of reduced losses and increased efficiency alongside technological innovation, suggesting potential for upward valuation elasticity [1]

Group 1: Robotics Sector - The robotics concept stocks experienced a broad increase, with notable gains from companies like XAG (02590) up 5.93%, Yunji (02670) up 5.10%, and Blues Technology (06613) up 4.82%. According to an Omdia report, the global annual installation of humanoid robots is expected to add approximately 16,000 units by 2025, with Zhiyuan Robotics leading the market in installations [1][2] - Tianyue Advanced (02631) surged over 15.8% as a report from Zheshang Securities highlighted its active expansion into silicon carbide applications in emerging fields, indicating long-term growth potential [1] - WeRide (00800) rose over 3.4% as it announced that its global Robotaxi fleet will reach 1,000 vehicles by January 12, 2026, with successful commercial operations in cities like Guangzhou, Beijing, and Abu Dhabi [1] - Cao Cao Mobility (02643) increased nearly 8% following its announcement of two strategic acquisitions, including a full acquisition of Weixing Technology and plans to acquire Geely Business Travel [1] Group 2: Energy and Materials Sector - Oil and gas stocks saw significant declines, with Shandong Molong (00568) dropping over 8.1% due to a sharp decrease in international oil prices, with Brent crude futures falling by $2.76 or 4.15% to $63.76 per barrel [2] - Innovation Industry (02788) rose nearly 8% as aluminum prices have surged significantly since 2026, with Huatai Securities indicating that the overall supply-demand tightness will continue, supporting a long-term profit increase in the aluminum sector [2] Group 3: Aerospace and Technology Sector - The commercial aerospace sector showed signs of recovery, with companies like Asia Pacific Satellite (01045) and JunDa Co. (02865) both rising by 5.02%. This follows Elon Musk's announcement that SpaceX aims to increase Starship launch frequency to over once per hour within three years [2] - Weichai Power (02338) increased over 4.9% as it announced advancements in solid-state battery research and strong demand for its power generation products [3] - Zhaoyi Innovation (03986) rose over 6.2% as a Counterpoint Research report indicated that the memory market has entered a "super bull market," surpassing historical highs from 2018 [4] Group 4: US Market Highlights - Nuclear power stocks strengthened, with Talen Energy (TLN.US) up 11.8% and Vistra Energy (VST.US) up 6.63%, following news of a new bipartisan bill proposing a $2.5 billion Strategic Resilience Reserve to secure key minerals domestically [5] - Morgan Stanley (MS.US) rose 5.78% after reporting Q4 revenue growth of 10% to $17.89 billion, exceeding market expectations [5] - The weight loss drug sector faced pressure, with Eli Lilly (LLY.US) down 3.76% as its weight loss drug was placed under FDA review, delaying a decision until April 2026 [6] - Dell Technologies (DELL.US) increased by 0.82% as Omdia reported a significant recovery in the global PC market, with a projected 9.2% increase in total shipments for 2025 [8]

Core Viewpoint - Caocao Travel (02643) has announced two strategic acquisitions, which are expected to enhance its service offerings and create business growth in the B2B travel sector [5]. Group 1: Company Developments - Caocao Travel's stock price increased by 10.38% to HKD 36.78, with a trading volume of HKD 267 million [5]. - The company plans to fully acquire Weixing Technology (Yaotong Travel) and Geely Business Travel, which will become wholly-owned subsidiaries upon completion of the transactions [5]. - CEO Gong Xin stated that the acquisitions will enable the company to integrate services from daily commuting to business reception and travel management, thereby enhancing its service chain [5]. Group 2: Analyst Insights - Guotai Junan Securities initiated coverage on Caocao Travel with a "Buy" rating, highlighting the company's focus on customized vehicle ecosystems and optimization of total cost of ownership (TCO) for profitability [5]. - The firm believes that the company's valuation has upside potential, particularly due to its reliance on Geely's background for autonomous driving initiatives [5]. - Based on the price-to-sales (PS) valuation method, the estimated market value of the company is RMB 22.455 billion, with a target price of HKD 44.16 per share [5].

Group 1 - The stock of Cao Cao Mobility (02643.HK) experienced a significant increase, rising nearly 10% at one point and closing up 8.64% at HKD 36.2 [1] - The trading volume reached HKD 216 million, indicating strong investor interest and activity in the stock [1]

Core Viewpoint - Caocao Travel (02643) has seen a nearly 10% increase in stock price following the announcement of two strategic acquisitions, which are expected to enhance its service offerings in the business travel sector [1] Group 1: Strategic Acquisitions - Caocao Travel plans to fully acquire Weixing Technology (Yaotong Travel) and Geely Business Travel, which will become wholly-owned subsidiaries upon completion of the transactions [1] - The CEO of Caocao Travel, Gong Xin, stated that the acquisitions will enable the company to create a comprehensive service chain for daily commuting, business reception, and travel management, thereby generating business growth in the B2B travel sector [1] Group 2: Market Position and Financial Performance - According to Guotai Junan Securities, Caocao Travel has established a leading capacity network and customized vehicle ecosystem in the Chinese travel market, currently holding the second-largest market share [1] - The company has been optimizing operational efficiency and the lifecycle costs of its vehicles, leading to a significant reduction in Non-GAAP net losses, indicating that a profitability turning point is approaching [1] - Caocao Travel is leveraging its relationship with Geely to actively invest in autonomous driving technology, positioning itself as a key player in the commercialization of this technology [1] - Overall, the company is entering a phase of reduced losses and increased efficiency alongside technological innovation, suggesting potential for upward valuation elasticity [1]

Core Viewpoint - Cathay Securities initiates coverage on Cao Cao Mobility (02643) with a "Buy" rating, highlighting its profitability through Total Cost of Ownership (TCO) optimization and potential for valuation increase due to its autonomous driving strategy backed by Geely [1] Group 1: Market Position and Financial Performance - Cao Cao Mobility holds the second-largest market share in China's ride-hailing market, with shares of 8.8% and 8.5% in core first and second-tier cities respectively [1] - The company is projected to achieve revenues of 14.657 billion RMB in 2024, with a year-on-year growth rate exceeding 35% for the past two years [1] - The gross margin has seen a "three-year consecutive jump," with profitability expected to reach 809 million RMB in 2024, and the company is anticipated to enter a phase of synchronized expansion in profitability and business scale by 2026 [1] Group 2: Cost Reduction and Differentiated Growth - The company has established a commercial moat centered around a "customized vehicle strategy," reducing TCO to approximately 0.5 RMB per kilometer [2] - As a part of Geely's ecosystem, the company benefits from stable low-cost production capacity and a high-density battery swap network, while also leveraging vast real-world data to enhance smart driving algorithms [2] - This "manufacturing + platform + data" internal closed-loop model provides significant advantages in operational efficiency, vehicle durability, and compliance risk management compared to traditional light-asset models [2] Group 3: Strategic Upgrades and Future Goals - The company is transitioning from the "N-cube" to the "F-cube" strategy, focusing on fully intelligent customized vehicles, autonomous driving, and automated operational systems [3] - With the technological support from Geely's "Thousand-Mile Smart Driving," the company plans to launch L4-level Robotaxi customized models by 2026 [3] - The company has set a global strategic goal of "Ten Years, Hundred Cities, Thousand Billion," indicating its ambition to reshape the industry's profitability ceiling through Robotaxi [3]

Core Viewpoint - Cathay Securities initiates coverage on Cao Cao Mobility (02643) with a "Buy" rating, highlighting its strong market position and growth potential driven by customized vehicle strategies and cost optimization [1] Group 1: Market Position and Financial Performance - Cao Cao Mobility holds the second-largest market share in China's ride-hailing sector, with shares of 8.8% and 8.5% in core first- and second-tier cities respectively [1] - The company is projected to achieve revenues of 14.657 billion RMB in 2024, with a year-on-year growth rate exceeding 35% for the past two years [1] - The gross margin has improved significantly, achieving a three-year consecutive increase, with profitability expected to reach 809 million RMB in 2024 [1] Group 2: Cost Optimization and Business Model - The company has established a competitive moat centered around a "customized vehicle strategy," reducing total cost of ownership (TCO) to approximately 0.5 RMB per kilometer [2] - As part of the Geely ecosystem, the company benefits from stable low-cost production capacity and a high-density battery swap network, enhancing operational efficiency and risk resilience [2] Group 3: Strategic Upgrades and Future Plans - The company is transitioning from the "N-cube" to the "F-cube" strategy, focusing on fully intelligent customized vehicles, autonomous driving, and automated operations [3] - Plans are in place to launch L4-level Robotaxi customized models by 2026, with a global strategic goal of "100 cities in 10 years, 100 billion" [3]

Core Insights - The report indicates that as of December 31, 2025, there are 395 licensed ride-hailing platforms in China, with a slight increase of one platform from the previous month [1] - A total of 9.63 billion orders were processed in December, reflecting a significant operational scale in the ride-hailing industry [1] Group 1: Order Compliance Rates - The top three platforms by order compliance rate are: 1. Ruqi Mobility (如祺出行) at 99.1% 2. Fengyun Mobility (风韵出行) at 98.6% 3. Jishi Mobility (及时用车) at 98.9% [4] - The platforms with the highest growth in order compliance rates are Ruqi Mobility, Cao Cao Mobility (曹操出行), and T3 Mobility, while Didi Mobility (滴滴出行) showed minimal growth of 0.1% [1][4] - The platforms with the lowest compliance rate growth include Xiaohongshu Mobility (花小猪出行) at -1.9% and Xiangdao Mobility (享道出行) at -1.0% [1] Group 2: Major City Compliance Rates - The cities with the highest order compliance rates include Xiamen, Guangzhou, Shenzhen, and Chengdu, with 26 cities reporting compliance rates above 80% [2] - The top three cities with the highest growth in compliance rates are Kunming, Jinan, and Hangzhou, while Yinchuan, Hohhot, and Urumqi experienced the largest declines [2] Group 3: Order Volume Changes - Ruqi Mobility reported a 12.6% increase in order volume, while Fengyun Mobility saw a 110.0% increase, indicating strong growth among leading platforms [4] - Didi Mobility and Xiaohongshu Mobility both reported a 17.9% increase in order volume, but their compliance rates remain significantly lower compared to competitors [4][7]

Core Viewpoint - Caocao Travel (02643.HK) has announced its first major acquisition post-IPO, acquiring Geely's Yao Travel and Zhejiang Geely Business Services for a total of 290 million RMB in cash [1][2]. Group 1: Acquisition Details - The acquisition includes 100% of Yao Travel for 225 million RMB and all shares of Geely Business Services for 65 million RMB [6]. - Yao Travel focuses on high-end business travel and is a luxury travel brand launched by Mercedes-Benz and Geely, while Geely Business Services provides corporate travel management solutions [2][6]. - Following the acquisition, Mercedes-Benz will completely exit its equity structure in Yao Travel [2]. Group 2: Financial Performance - Caocao Travel reported a revenue of 9.456 billion RMB for the first half of 2025, a year-on-year increase of 53.5%, but incurred a loss of 495 million RMB, although the loss is narrowing [4]. - Yao Travel is projected to incur a cumulative after-tax loss of over 115 million RMB for 2023 and 2024 [6]. - Geely Business Services is expected to see a significant profit decline of 47.87% in 2024 compared to 2023, with an estimated after-tax profit of 23.3 million RMB [8]. Group 3: Strategic Direction - The acquisition signals Caocao Travel's commitment to expanding its B2B business travel segment, aiming to create a comprehensive "one-stop technology travel platform" [4]. - The company aims to achieve threefold synergy through the integration of the two acquired entities, enhancing product offerings and client conversion [8]. - The business travel market in China is projected to exceed 3.5 trillion RMB in 2025, with a compound annual growth rate of over 11% [9]. Group 4: Market Position and Challenges - Despite being among the top three ride-hailing platforms in China, Caocao Travel holds only 5-6% of the market share, with over 50% controlled by Didi [11]. - The company faces significant reliance on external aggregation platforms for traffic, with commission payments to these platforms rising from 3.2 billion RMB in 2022 to 10.4 billion RMB in 2024 [12]. - The increasing commission fees paid to aggregation platforms have raised concerns about the company's bargaining power and profitability [13]. Group 5: Future Prospects in Autonomous Driving - Caocao Travel is positioning autonomous driving as a long-term strategic focus, with plans to establish five operational centers globally and achieve a transaction volume of 100 billion RMB over the next decade [15][16]. - The global autonomous vehicle market is expected to grow significantly, with a projected market size of 15.23 billion USD by 2026 [15]. - The company is leveraging Geely's comprehensive support across various dimensions, including vehicle costs and technology, to build a competitive edge in the autonomous driving sector [17].