Core Insights - The domestic new car sales growth has exceeded 11% due to policies promoting vehicle trade-ins and scrappage, leading to a significant influx of used cars into the market [1] - In the first half of 2025, the cumulative transaction volume of used cars reached 9.57 million units, a year-on-year increase of approximately 2%, with total transaction value exceeding 600 billion yuan [1] - The auction format is increasingly being utilized to address the surplus of used cars, particularly for electric vehicles which are often sold in bulk [1] Used Car Auction Market - In 2024, traditional fuel vehicles accounted for over 1.11 million auction transactions, representing more than 90% of the market share, maintaining dominance in the auction market [1] - The auction volume of electric vehicle accident cars has seen a compound annual growth rate of 70% from 2019 to 2024, with expectations of at least a 50% growth rate over the next three years [2][5] Accident Vehicle Trends - Nearly 90% of accident vehicles are disposed of through auctions, with the auction volume of ordinary accident cars growing at a compound annual growth rate of 27% from 2019 to 2024, reaching 530,000 units in 2024 [4] - The auction volume of electric accident vehicles increased from 2,300 units in 2020 to 18,000 units in 2024, indicating a rapid growth in this segment [5] Pricing Dynamics - The average auction price for vehicles in 2024 was 40,000 yuan, reflecting a year-on-year decline of over 11%, with the transaction value growth rate lagging behind the volume growth [7] - The market is experiencing a polarization in pricing, with vehicles priced below 50,000 yuan accounting for 78.86% of total transactions, while the share of vehicles priced at 200,000 yuan and above has decreased to 2.42% [7] Vehicle Age and Market Composition - The share of vehicles aged over six years has increased, with over 70% of total transactions involving high-mileage vehicles, contributing to the overall decline in average vehicle prices [7] - The average auction prices for different age categories show a downward trend, with vehicles over ten years old averaging 21,400 yuan [7] Future Outlook - The auction market for electric vehicles is expected to grow, with a shift towards more refined dismantling processes for accident vehicles, including battery recycling and repurposing [6] - As the penetration rate of new energy vehicles increases, the volume of used electric vehicles entering the market is anticipated to rise, leading to changes in auction methods and service standards [8]

Core Insights - The auction growth rate for electric vehicle accident cars is conservatively expected to exceed 50% from 2025 to 2028, driven by the increasing volume of used cars entering the market due to trade-in and scrapping policies [1][2] Auction Market Overview - In the first half of 2025, the cumulative transaction volume of used cars in China reached 9.57 million units, with a transaction value exceeding 600 billion yuan, reflecting a year-on-year growth of approximately 2% [1] - Traditional fuel vehicles dominated the auction market in 2024, with over 1.11 million units sold, accounting for more than 90% of the total market share [1] - The auction market is increasingly utilizing a "packaged" auction format for new energy vehicles, with packages often containing dozens to hundreds of similar vehicles [1] Accident Vehicle Auction Trends - The auction volume of accident vehicles has been steadily increasing, with a compound annual growth rate of 27% from 2019 to 2024, reaching 530,000 units in 2024 [3] - Electric vehicle accident cars have seen a significant rise in auction volume, with a compound annual growth rate of 70% from 2019 to 2024, increasing from 2,300 units in 2020 to 18,000 units in 2024 [3][4] Market Dynamics and Pricing - The average auction price for vehicles in the national market dropped by over 11% year-on-year in 2024, with the average price being 40,000 yuan per vehicle [5] - The market is experiencing a polarization in pricing, with vehicles priced below 50,000 yuan accounting for 78.86% of total transactions, while those priced at 200,000 yuan or above have decreased to 2.42% of the market share [5] - The average auction price for different vehicle types in 2024 was 38,700 yuan for fuel vehicles, 46,400 yuan for pure electric vehicles, and 61,100 yuan for hybrid models, all showing a decline compared to 2023 [6] Future Projections - The auction market for electric vehicle accident cars is expected to reach at least 50,000 units by 2029, with a growing trend towards the disassembly and sale of key components from accident vehicles [4] - The demand for dismantling accident vehicles is projected to grow significantly, with the auction volume for dismantled vehicles increasing from 5,400 units in 2020 to 24,500 units in 2024, and expected to approach a 40% growth rate by 2028 [4]

Company Overview - Boche Holding Limited (Cayman), also known as 博车网, is the largest accident vehicle auction platform in China, with a market share of approximately 31.3% based on transaction volume in 2023 [2] - The company connects upstream accident vehicle sources (mainly insurance companies) with downstream buyers (primarily certified repair shops and licensed vehicle dismantlers) through an integrated online and offline auction model [2] Business Model and Services - Since its establishment in 2014, the company has focused on improving operational efficiency and transaction transparency in the accident vehicle auction industry [2] - Boche Holding Limited offers a full range of services covering the entire auction process, aiming to optimize the transaction flow of accident and second-hand vehicles, reduce transaction cycles, and enhance user experience [2] - It is noted as the only platform capable of providing comprehensive auction and supporting services throughout the entire process of accident vehicle auctions [2]

Core Viewpoint - The article discusses the challenges faced by BoChe Wang, a used car auction platform specializing in accident vehicles, as it plans to go public on the Hong Kong Stock Exchange despite its recent financial struggles and market limitations [1][3][16]. Company Overview - BoChe Wang, established in 2014, operates as a B2B auction platform for various types of vehicles, including accident cars, with a market share of 31.3% in the accident car auction industry as of 2023, ranking first in China [4][6]. - The company aims to raise funds for offline expansion, technology upgrades, and potential investments through its upcoming IPO [1]. Financial Performance - In the fiscal years 2022 and 2023, BoChe Wang reported revenues of 388.1 million RMB and 518.3 million RMB, respectively, with losses of 180.2 million RMB and 121.5 million RMB [6][7]. - The adjusted net profits for 2022, 2023, and the first three quarters of 2024 were 50.2 million RMB, 81.7 million RMB, and 75.8 million RMB, respectively, indicating a significant slowdown in growth from 62.7% in 2023 to less than 3% in 2024 [6][8]. Market Challenges - The auction business's revenue share from accident cars has decreased to 54% in the first three quarters of 2024, reflecting declining user retention, with the repurchase rate dropping from 74.1% to 70.7% [6][8]. - The company faces competition from major insurance firms that are establishing their own auction platforms, which could threaten BoChe Wang's intermediary role [8][14]. Industry Limitations - The accident car market is considered niche, with consumer acceptance being low due to safety concerns and a lack of stringent regulations [9][11]. - Despite a projected increase in auction volumes from 20.6 million vehicles in 2019 to 34.5 million in 2023, the growth potential remains limited [11]. Valuation Concerns - Following a series of funding rounds, BoChe Wang's post-money valuation reached 3.17 billion RMB, leading to a projected P/E ratio of nearly 1700 based on 2024's net profit estimates [12][16]. - The company's reliance on a limited number of upstream suppliers for vehicle sourcing poses a risk to its business continuity and profitability [8][14]. Conclusion - While BoChe Wang has established itself in the accident car auction market, its future success in going public and sustaining growth is uncertain due to market dynamics and internal challenges [16].

Core Viewpoint - Boche Holding Limited (博车网) is preparing for an IPO in Hong Kong, positioning itself as the largest accident vehicle auction platform in China, with significant revenue growth potential despite recent losses [3][4][20]. Market Overview - China is the largest automotive market globally, with projected sales exceeding 31 million vehicles in 2024 and a vehicle ownership exceeding 300 million [1]. - The accident vehicle auction market in China is experiencing growth, with the auction volume reaching 345,000 vehicles in 2023 and expected to grow to 867,000 vehicles by 2028, representing a compound annual growth rate (CAGR) of 20.2% from 2023 to 2028 [18]. Company Background - Founded in 2014 by Chen Jianpeng, 博车网 has developed a robust business model that includes accident vehicle auctions and partnerships with major automotive manufacturers [5]. - The company has a market share of approximately 31.3% in the accident vehicle auction industry in China [6]. Financial Performance - 博车网 reported revenues of 388.1 million RMB in 2022, 518.3 million RMB in 2023, and 403.9 million RMB in the first nine months of 2024, with net losses of 180 million RMB, 121 million RMB, and a small profit of 1.425 million RMB respectively [20]. - The company's gross margin fluctuated, with rates of approximately 44.4%, 49.9%, and 47.3% during the reporting periods, influenced by operational efficiency and sales economics [21]. Revenue Sources - The majority of 博车网's revenue comes from accident vehicle auctions and related services, accounting for over 50% of total revenue, while used vehicle auctions contribute around 20% [11]. - The company also engages in vehicle dealership activities, with revenue from this segment rising to 20.6% in the first nine months of 2024 [12]. Business Model and Dependencies - 博车网 connects various upstream sources of accident vehicles, including insurance companies and rental firms, to downstream buyers such as repair shops and dismantling companies [10]. - The company relies heavily on a few key upstream sources, with 71.4%, 63.4%, and 58% of auctioned accident vehicles coming from three major suppliers during the reporting periods [14]. Industry Challenges - The increasing availability of new vehicles at lower prices may negatively impact the demand for accident and used vehicles, as consumers may prefer purchasing new cars [22][23]. - The competitive landscape remains intense, with potential threats from upstream suppliers establishing their own auction platforms [14][23].