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]