Core Viewpoint - The necessity of customized vehicles for ride-hailing platforms is affirmed, as evidenced by Cao Cao Mobility's IPO prospectus, which highlights the potential for differentiated quality in passenger experience, driver income, and platform efficiency through customized cars [1] Group 1: Customized Vehicle Strategy - Cao Cao Mobility's customized vehicles are designed specifically for ride-hailing, focusing on space, comfort, and durability rather than personal ownership [1] - The company launched its first generation of customized vehicles, the Fengye 80V, in 2022, followed by the second generation, the Cao Cao 60, in 2023, and plans to sell customized vehicles to third parties [1][2] - By the end of 2024, Cao Cao Mobility's ride-hailing services will cover over 100 cities in China, with more than 34,000 customized vehicles, making it the largest customized vehicle fleet globally according to Frost & Sullivan [1] Group 2: Competitive Advantages of Customized Vehicles - Customized vehicles can significantly reduce operational costs, with total cost of ownership (TCO) for Fengye 80V and Cao Cao 60 estimated at 0.53 RMB/km and 0.47 RMB/km, respectively, representing a 33% and 40% reduction compared to traditional electric vehicles [2] - Cao Cao Mobility collaborates with Yiyihulian to lower driver costs, resulting in an increase in average hourly income for drivers from 30.9 RMB in 2022 to 35.7 RMB in 2024, surpassing the industry average of approximately 27 RMB [2] - The company benefits from a network of 133 authorized maintenance shops, reducing average maintenance time and costs by 25% and 54%, respectively [2] Group 3: Comparison with Didi's Customized Vehicle Efforts - Didi's earlier attempts at customized vehicles, such as the D1, have not met expectations, with only 78 units sold in June 2023 and a total of 183 units since launch [3] - Didi's challenges stem from timing issues and misalignment in its business model for Robotaxi, which contrasts with Cao Cao Mobility's more integrated approach with its partner Geely [4][6] - Didi's strategy involved self-managing vehicle design and autonomous vehicle development, leading to inefficiencies compared to Cao Cao Mobility's reliance on Geely for production and technology [6][7] Group 4: Future Outlook and Market Position - Cao Cao Mobility's IPO plans to allocate over 50% of funds to a three-pronged business model focusing on customized vehicles, autonomous driving, and platform services [5] - Despite its current market position as the second-largest player, Cao Cao Mobility faces significant challenges, including a net loss of 5.2 billion RMB over three years and a debt of 11.3 billion RMB in 2024 [8] - The competitive landscape is tightening, with other players like T3 Mobility and Huqi Mobility closely trailing behind, indicating a need for Cao Cao Mobility to strengthen its market position [8][9]

Core Insights - Cao Cao Mobility officially listed on the Hong Kong Stock Exchange on June 25, 2025, following the listings of Dida Chuxing and Ruqi Mobility in 2024, with high investor interest reflected in a 21.14 times oversubscription in the public offering and 2.78 times in the international offering [3] - Despite the strong market interest, the stock opened below the issue price of HKD 41.94 and closed at HKD 36.00, representing a decline of 14.16% on the first day [3] - The company aims to enhance operational efficiency in individual cities and achieve regional profitability, particularly in second and third-tier cities, amidst a competitive market transitioning from scale expansion to quality development [8] Financial Performance - Cao Cao Mobility's revenue grew significantly from RMB 76.31 billion in 2022 to RMB 146.57 billion in 2024, with a compound annual growth rate (CAGR) of 38.5% [5] - The company reported continuous losses, with net losses of RMB 20.07 billion, RMB 19.81 billion, and RMB 12.46 billion from 2022 to 2024, totaling RMB 52.34 billion [5] - The sales cost increased from RMB 79.7 billion in 2022 to RMB 134.72 billion in 2024, impacting profitability [5] Debt and Financial Pressure - Cao Cao Mobility's short-term and long-term debts rose from RMB 34.72 billion in 2022 to RMB 56.77 billion in 2024, with a debt ratio of 177% by the end of 2024 and cash and cash equivalents of only RMB 1.59 billion [6] - The company's reliance on third-party aggregation platforms increased, with orders from these platforms rising from 49.9% of Gross Transaction Value (GTV) in 2022 to 85.4% in 2024, leading to a surge in commission costs from RMB 3.2 billion to RMB 10.5 billion [6] Strategic Focus - To differentiate itself, Cao Cao Mobility is focusing on customized vehicles and autonomous driving, leveraging resources from Geely Auto Group to build the largest customized vehicle fleet in China, with over 34,000 vehicles operating in 31 cities by the end of 2024 [7] - The company has launched the Cao Cao Zhixing platform and is piloting Robotaxi services in Suzhou and Hangzhou, indicating a commitment to innovation despite the associated financial and technical challenges [8] - As of March 2025, the service coverage expanded to 146 cities, highlighting the company's growth potential [8]

Core Viewpoint - The successful listing of Cao Cao Mobility on the Hong Kong Stock Exchange marks a significant milestone for the company, which has developed a unique business model centered around customized vehicles in the ride-hailing industry [1][3]. Group 1: Company Overview - Cao Cao Mobility, incubated by Geely Group, has spent ten years developing a ride-hailing ecosystem focused on customized vehicles, contrasting with other platforms that pursued rapid expansion [4]. - The company has become the largest ride-hailing platform listed on the Hong Kong Stock Exchange, demonstrating resilience in a complex regulatory environment [3]. Group 2: Financial Performance - The average hourly income for Cao Cao Mobility drivers increased from RMB 30.9 in 2022 to RMB 35.7 in 2024, significantly higher than the industry average of RMB 27 [6][10]. - The customized vehicle strategy has positively impacted the company's financials, with gross profit margin improving from -5.8% in 2023 to 8.1% in 2024 [7]. Group 3: Cost Efficiency and Service Improvement - The total cost of ownership (TCO) for drivers is projected to decrease by 36.4%, reaching approximately RMB 0.5 per kilometer, enhancing operational efficiency [8]. - Cao Cao Mobility's partnership with Geely has led to a 25% reduction in maintenance time and a 54% decrease in costs, further benefiting drivers [11]. Group 4: Future Prospects and Innovations - The company is exploring the Robotaxi market, leveraging its customized vehicle experience to create a closed-loop ecosystem that integrates vehicle manufacturing, autonomous driving technology, and ride-hailing services [12][14]. - Cao Cao Mobility plans to launch a customized Robotaxi model designed for L4 autonomous driving by the end of 2026, aiming to capitalize on the future trillion-dollar market [15].

Core Viewpoint - Caocao Travel plans to launch an IPO on June 25, 2023, on the Hong Kong Stock Exchange, aiming to raise approximately HKD 18.53 billion with a share price of HKD 41.94, valuing the company at HKD 228.23 billion [1] Group 1: Business Overview - Caocao Travel's business includes ride-hailing services, vehicle leasing, vehicle sales, and others, with ride-hailing services projected to generate RMB 135.67 billion in 2024, accounting for 92.6% of total revenue [2] - The company has deployed over 34,000 customized vehicles across 31 cities in China, with a significant portion of its orders coming from its customized vehicle fleet [4] Group 2: Financial Performance - Revenue for Caocao Travel has shown growth from RMB 7.63 billion in 2022 to an expected RMB 14.66 billion in 2024, with operating losses decreasing from RMB 18.66 billion in 2022 to RMB 8 billion in 2024 [7][8] - The company has a total debt of RMB 112.83 billion as of 2024, with net current liabilities of RMB 81.46 billion [5] Group 3: Market Position and Strategy - Caocao Travel's order volume has increased significantly, with 5.98 billion orders expected in 2024, but a large portion of these orders is still reliant on aggregation platforms [6] - The company aims to enhance its profitability through scale effects from customized vehicles and service solutions, focusing on lifecycle management from vehicle design to operation [9] Group 4: Future Plans and Innovations - The funds raised from the IPO will be used for R&D, service quality improvement, and the expansion of customized vehicles and geographic coverage [10] - Caocao Travel plans to launch a dedicated L4 Robotaxi model by the end of 2026, aiming to create a comprehensive automated operation system [12]