Core Insights - The sales of new energy vehicles (NEVs) in China have surged this year, leading to a significant influx of used NEVs into the trading market, driven by the "trade-in" policy for consumer goods [1] - The auction market for used cars has become a vital channel in the circulation system of used cars, with a reported 52.6% increase in auction transaction volume for NEVs in the first three quarters of the year, and an expected annual transaction value exceeding 10 billion yuan [1] - Used car dealers are leveraging auction platforms to source vehicles, reducing inventory turnover cycles to under 15 days, which is significantly lower than the industry average [1] - The auction model facilitates transactions without geographical limitations and efficiently matches supply and demand, allowing surplus vehicles from first- and second-tier cities to flow into the high-demand third- and fourth-tier cities and county markets, promoting tiered consumption of automobiles [1]

今年以来，我国新能源汽车销量势头迅猛，加上消费品以旧换新政策带动作用，大量二手新能源汽车加 速涌入交易市场，这也让二手车拍卖市场活跃起来，成为二手车流通体系的重要渠道。数据显示，今年 前三季度，全国新能源车拍卖成交量增长52.6%，预计全年成交额超过100亿元。目前，一些二手车经 销商通过拍卖平台获取车源，库存周转周期缩短至15天以内，远低于行业平均水平。业内人士表示，拍 卖模式凭借不受地域局限的交易场景、快速匹配供需的效率优势，让二手车从车源过剩的一二线城市， 流向需求旺盛的三四线城市和县域市场，推动汽车梯度消费。（央视财经） ...

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 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].