Core Viewpoint - Pacific Securities has initiated coverage on Cao Cao Mobility (02643) with a "Buy" rating, highlighting the coexistence of autonomous and human-driven ride-hailing services in multiple cities for an extended period, which will provide long-term growth opportunities for the company [1] Financial Performance - For the first half of 2025, Cao Cao Mobility reported total revenue of 9.456 billion RMB, a year-on-year increase of 53.5%, while net profit was a loss of 0.495 billion RMB, reducing losses by 0.272 billion RMB [1] - The non-recurring gains and losses for H1 2025 amounted to 0.141 billion RMB, with a half-year net return on equity (ROE) of 13.14% and a net cash flow from operating activities of 0.325 billion RMB [1] Business Composition - The company's operations are solely in mainland China, primarily consisting of three segments: ride-hailing services (revenue of 8.6 billion RMB, accounting for 91% of total revenue), vehicle sales (7.9% of revenue), and car rentals (1.1% of revenue) [1] - As of June 30, the company operated in 163 cities with a total gross transaction value (GTV) of 11 billion RMB, a year-on-year increase of 53.6%, and processed approximately 380 million ride-hailing orders, up 49% year-on-year [1] Strategic Developments - In February 2025, the company launched its autonomous driving platform "Cao Cao Smart Travel" in Hangzhou and plans to introduce a fully customized smart passenger vehicle by 2026, balancing cost and experience [2] - The company aims to leverage the R&D capabilities of its shareholder Geely Group to quickly launch L4-level autonomous driving customized models, enhancing its competitiveness in the Robotaxi market [2]

Core Viewpoint - Caocao Travel (02643) is a ride-hailing platform empowered by Geely Group, maintaining a strong second position in market share, with a projected CAGR of 39% from 2022 to 2024, and plans for a successful listing on the Hong Kong Stock Exchange in 2025, marking a new phase of expansion and technological upgrades [1] Group 1: Business Model and Competitive Advantage - Caocao Travel operates the largest customized ride-hailing fleet in China, leveraging Geely Group's manufacturing and service support to build differentiated competitive advantages, significantly reducing supply-side costs and increasing driver income [2] - The company attracts quality drivers through stable order volumes and a standardized management system, while its brand recognition and differentiated service experiences enhance user loyalty [2] Group 2: Future Growth Potential - The company is accelerating penetration into lower-tier markets, planning to enter 27 new cities by mid-2025 through sales of customized vehicles to local partners, with further expansion into high-tier markets expected to increase market share [3] - Profitability is anticipated to improve as the cost of customized vehicles is optimized, with potential for increased commission rates and better user subsidy efficiency, positioning Caocao Travel favorably against industry leaders like Didi [3] Group 3: Autonomous Driving - In February 2025, Caocao Travel will launch its autonomous driving platform, integrating Geely Group's "Qianli Haohan" Robotaxi solution, transitioning from technology validation to scenario-based operations [4] - The core advantage of the autonomous driving business lies in its unique "smart manufacturing + smart driving + smart operation" model, with plans to initiate commercial operations for unmanned driving by 2027, indicating strong potential in the Robotaxi sector [4]

Core Viewpoint - Caocao Travel, backed by Geely Group, is positioned as a leading ride-hailing platform with a stable market share, expected to maintain growth above industry average due to its cost advantages and differentiated services [1] Group 1: Company Overview - Caocao Travel is a ride-hailing platform empowered by Geely Group, with Geely's chairman holding a 77% stake, ensuring strong backing [1] - The company holds the second-largest market share in China, with a revenue CAGR of 39% projected from 2022 to 2024 [1] - The company plans to go public on the Hong Kong Stock Exchange in 2025, marking a new phase of expansion and technological upgrades [1] Group 2: Business Model and Competitive Advantage - Caocao Travel operates the largest customized ride-hailing fleet in China, leveraging Geely's manufacturing and service capabilities to create a differentiated competitive edge [2] - The customized vehicle ecosystem significantly reduces supply-side costs, leading to higher driver incomes, while a stable order volume attracts quality drivers [2] - The company primarily sources orders through a platform aggregation model, enhancing brand recognition and user loyalty through superior service [2] Group 3: Future Growth Potential - The company is accelerating penetration into lower-tier markets, planning to enter 27 new cities by mid-2025 through partnerships for customized vehicle sales [3] - There is significant potential for market share growth as the company deepens its presence in high-tier markets and expands into new lower-tier cities [3] - Profitability is expected to improve through further optimization of customized vehicle costs, enhanced user subsidy efficiency, and scale effects, positioning Caocao Travel favorably against industry leaders like Didi [3] Group 4: Autonomous Driving Initiatives - In February 2025, Caocao Travel will launch its autonomous driving platform, integrating Geely's Robotaxi solutions, transitioning from technology validation to operational scenarios [4] - The core advantage of the autonomous driving business lies in its unique "smart manufacturing + smart driving + smart operation" model [4] - The company aims to initiate commercial operations for unmanned driving by 2027, indicating strong potential in the Robotaxi sector [4]

Core Points - Tianjin Youcheng Zhilian Investment Partnership (Limited Partnership) has been established with a registered capital of 35 million RMB, focusing on investment activities and asset management services [1][2] Group 1: Company Information - The executing partner of the partnership is Tianjin Geely Youxing Technology Co., Ltd. [1][2] - The partnership was registered on October 21, 2025, and has a business term from October 21, 2025, to October 20, 2035 [2] - The company is located in the Tianjin Free Trade Zone (Airport Economic Zone) [2] Group 2: Business Scope - The business scope includes investment activities with self-owned funds, asset management services, and information system integration services [1][2] - Additional services include technology services, consulting, and small vehicle leasing [2]

Core Insights - The 2025 World Intelligent Connected Vehicle Conference opened in Beijing, where Cao Cao Mobility announced significant advancements in its Robotaxi fleet, becoming the first platform globally to scale the application of low-orbit satellite communication technology in Robotaxi operations [2][3] - Geely Holding Group's Chairman Li Shufu emphasized the importance of Cao Cao Mobility as the primary commercial vehicle for Robotaxi, enhancing emergency response capabilities and operational safety through stable satellite communication services provided by the Geely constellation [2] - The integration of satellite communication technology allows vehicles to maintain stable connections with the operation center even in areas with unstable 4G/5G signals, significantly improving safety redundancy and operational reliability in various scenarios [2] Company Developments - Cao Cao Mobility's CTO Qiang Qi highlighted that safety is a prerequisite for the commercial deployment of autonomous driving, and the introduction of satellite communication is crucial for building an integrated safety system [3] - The company is accelerating the deployment of the second generation of Robotaxi vehicles and collaborating with Geely and business partners to develop customized vehicles with pre-installed proprietary autonomous driving components and applications [3] - The collaboration reflects the internal ecological synergy within Geely Holding Group, with Space-Time Daoyu's CTO Ding Sheng noting the importance of an integrated information network for smart transportation [3]

Group 1 - The core viewpoint of the report is that Cao Cao Mobility, as the second-largest ride-hailing platform in China, shows significant growth potential and monetization space due to its deep layout in shared mobility and pioneering exploration in autonomous driving technology [1][2] - CITIC Securities predicts that the company's revenue will reach 21.392 billion, 27.091 billion, and 33.845 billion yuan from 2025 to 2027, with year-on-year growth rates of 45.9%, 26.6%, and 24.9% respectively, and expects the company to achieve positive net profit by 2026 [1] - In the Chinese ride-hailing market, Cao Cao Mobility holds a 5.4% market share in 2024, significantly outpacing the industry average growth rate [1] Group 2 - The company has effectively reduced total cost of ownership (TCO) by promoting customized electric vehicles, with the cost per kilometer for electric vehicles at 0.8 yuan, which is 30% lower than traditional fuel vehicles [2] - As of June 2025, Cao Cao Mobility has deployed over 37,000 customized vehicles across 31 cities, with related order GTV reaching 2.5 billion yuan, a year-on-year increase of 34.7% [2] - The company's gross margin improved from 5.1% in 2024 to 8.4% in the first half of 2025, indicating continuous improvement in profitability [2] Group 3 - In the autonomous driving sector, Cao Cao Mobility has initiated Robotaxi pilot services, starting tests in February 2025, with plans to launch customized vehicles supporting L4-level autonomous driving by the end of 2026 [2] - CITIC Securities believes that the company is building an end-to-end ecosystem of "customized vehicles - intelligent driving systems - service operations," leveraging Geely Group's industry chain experience and its own operational data [2] - The strategic exploration of Cao Cao Mobility in the wave of intelligent and compliant shared mobility may provide an important paradigm for the industry [2]

Core Viewpoint - CITIC Securities has initiated coverage on Cao Cao Mobility (02643) with a "Buy" rating and a target price of HKD 73, highlighting the company's significant growth potential and monetization opportunities in the ride-hailing market due to its deep market penetration and advancements in autonomous driving technology [1][2] Group 1: Financial Performance - The company is projected to achieve revenues of CNY 213.92 billion, CNY 270.91 billion, and CNY 338.45 billion from 2025 to 2027, representing year-on-year growth rates of 45.9%, 26.6%, and 24.9% respectively [1] - In the first half of 2025, the company's revenue reached CNY 9.5 billion, with a year-on-year increase of 53.5% [1] - The gross margin improved from 5.1% in 2024 to 8.4% in the first half of 2025, indicating a significant enhancement in profitability [2] Group 2: Market Position and Growth - Cao Cao Mobility holds a 5.4% market share in China's ride-hailing market, ranking second, with growth rates significantly exceeding the industry average [1] - The platform's monthly active driver count reached 554,000 in the first half of 2025, up 53.5% year-on-year, while monthly active users increased to 38.1 million, reflecting a 57.4% growth [1] Group 3: Cost Control and Operational Efficiency - The company has effectively reduced total cost of ownership (TCO) by promoting customized electric vehicles, with the cost per kilometer for electric vehicles at CNY 0.8, which is 30% lower than traditional fuel vehicles [2] - As of June 2025, over 37,000 customized vehicles have been deployed across 31 cities, with related order GTV reaching CNY 2.5 billion, a 34.7% increase year-on-year [2] Group 4: Technological Advancements - Cao Cao Mobility has initiated Robotaxi pilot services and plans to launch customized vehicles supporting Level 4 autonomous driving by the end of 2026 [2] - The company is building an end-to-end ecosystem of "customized vehicles - intelligent driving systems - service operations," leveraging its partnership with Geely Group and its operational data [2] Group 5: Strategic Outlook - The strategic exploration of Cao Cao Mobility in the intelligent and compliant shared mobility market may provide a significant paradigm for the industry [2] - The target price of HKD 73 represents a 51% upside potential from the stock price of HKD 48.32 at the time of the report's release [2]

Core Viewpoint - The report from Dongwu Securities indicates that the market will refocus on investment opportunities in intelligence during Q4, with a preference for Hong Kong stocks over A-shares, software over hardware, and B-end over C-end investments [1] Group 1: Market Trends - Since the AI market began in 2023, each subsequent phase has seen a spread towards intelligence applications, which are viewed as significant applications of AI in the physical world, with expectations for over-performance in the next 3-5 years [1] - The report highlights that Q4 will see continuous catalysts for intelligence, including the release of Tesla's V14 version, Xiaopeng's technology day in October, and the introduction of new autonomous vehicles by various companies [1] Group 2: Comparison of Q4 Trends - The similarities between this year's Q4 and last year's Q4 lie in the diffusion of AI, but the differences are notable: last year's focus was on the resonance between automotive logic and AI logic, while this year emphasizes the evolution of AI logic [2] - The report suggests that all players have improved their capabilities over the past year, particularly the first-tier players moving towards L4 capabilities, indicating stronger industry realization [2] - This year is expected to focus more on software opportunities and breakthroughs in the B-end market, contrasting with last year's emphasis on hardware opportunities and C-end sales [2]

Group 1 - The core viewpoint of the report is that the market will refocus on intelligent investment opportunities in Q4, with a preference for Hong Kong stocks over A-shares, software over hardware, and B-end over C-end [1] - The report highlights that since the AI market began in 2023, each subsequent phase has seen a spread towards intelligence, which is viewed as a significant application of AI in the physical world, with expectations for over-performance in the next 3-5 years [1] - The report identifies key catalysts for intelligent development in Q4, including the release of Tesla's V14 version, Xiaopeng's technology day in October, and the introduction of new autonomous vehicles by various companies [1] Group 2 - The report notes similarities between Q4 this year and last year in terms of AI diffusion, but emphasizes a shift in focus from automotive and AI logic resonance to the evolution of AI logic this year [2] - It points out that all players have improved their capabilities over the past year, particularly the first-tier players moving towards L4, indicating stronger industry realization [2] - The report suggests a shift in focus from hardware opportunities and C-end sales last year to software opportunities and breakthroughs in the B-end this year [2]

Core Insights - The 2025 World Intelligent Connected Vehicle Conference opened in Beijing, where Cao Cao Mobility announced significant advancements in its Robotaxi fleet, becoming the first global platform to scale low Earth orbit satellite communication technology in Robotaxi operations [1][3] - Geely Holding Group's Chairman Li Shufu emphasized the importance of Cao Cao Mobility as the primary commercial vehicle for Robotaxi, enhancing emergency response capabilities and operational safety through stable satellite communication services [1][3] Group 1 - The conference highlighted key breakthroughs in communication technology for Cao Cao Mobility's Robotaxi fleet, with CTO Qiang Qiang and Space-Time Daoyu's CTO Ding Sheng discussing technical details and strategic significance [3] - The integration of satellite communication technology allows vehicles to maintain stable connections with the operations center, even in areas with unstable 4G/5G signals, significantly improving safety and reliability in various driving scenarios [3][5] - CTO Qiang Qiang stated that safety is essential for the commercial viability of autonomous driving, and the introduction of satellite communication is a critical step towards creating a comprehensive safety system for users [3] Group 2 - The collaboration reflects the ecological synergy within Geely Holding Group, with Space-Time Daoyu's CTO Ding Sheng noting the necessity of an integrated information network for smart mobility [5] - The "Geely Constellation" has achieved real-time coverage with 1 to 2 layers of satellite communication within the latitudes of 60° North and South, enhancing the safety of Robotaxi operations [5] - Cao Cao Mobility is accelerating the deployment of the second generation of Robotaxi vehicles and collaborating with Geely and partners to develop customized vehicles with proprietary autonomous driving components [5]