Core Viewpoint - CaoCao Inc. has listed on the Hong Kong Stock Exchange but faced a significant drop in share price, opening down 15.47% from its IPO price, indicating weak market reception and investor sentiment [2][3]. Company Overview - CaoCao Inc. is the second-largest ride-hailing company in China, holding a market share of 5.4%, significantly lower than Didi's 70.4% [2]. - The company was founded in 2015 as part of Geely Holding Group's strategic investment in the "new energy vehicle sharing ecosystem" [5]. IPO Details - The global offering consisted of 44.18 million shares, with a public offering of 4.42 million shares and an international offering of 39.76 million shares, priced at HKD 41.94 per share, aiming to raise approximately HKD 1.853 billion [5]. - The post-IPO valuation of the company is expected to reach HKD 22.823 billion [5]. Financial Performance - The company reported total revenues of RMB 7.63 billion, RMB 10.67 billion, and RMB 14.66 billion for the years 2022, 2023, and 2024 respectively, with a year-on-year growth of 37.4% in 2024 [8][10]. - Despite revenue growth, the company has faced significant operating losses, with losses of RMB 53 billion, RMB 64 billion, and RMB 72 billion projected for 2022, 2023, and 2024 respectively [7][10]. Business Model - Unlike other ride-hailing platforms that utilize a C2C model, CaoCao operates on a B2C heavy asset model, directly purchasing vehicles and employing dedicated drivers [6]. - The company has a fleet of 216,000, 307,000, and 592,000 active vehicles as of 2022, 2023, and 2024, respectively, with corresponding active driver counts [6]. Cost Structure - CaoCao's total liabilities are projected to reach RMB 112.83 billion by 2024, with net current liabilities of RMB 81.46 billion, indicating liquidity concerns [7]. - The company’s sales costs are heavily influenced by driver income and subsidies, which account for approximately 80% of total sales costs [15]. Market Position and Competition - The ride-hailing market is highly competitive, with CaoCao's business model facing challenges in achieving profitability despite its market position [11][20]. - The company relies significantly on external aggregation platforms for orders, with 49.9%, 73.2%, and 85.4% of its Gross Transaction Value (GTV) coming from these platforms in 2022, 2023, and 2024 respectively [14]. Strategic Initiatives - To improve profitability, the company has focused on enhancing technological capabilities, reducing driver subsidies, and expanding into new markets [9]. - The company achieved a gross profit margin of 8.1% in 2024, recovering from a gross loss margin of 4.4% in 2022 [9].
港股首日破发16%!网约车老二曹操出行上市的艰难战役