Investment Rating - The report initiates coverage with a "Buy" rating for the company [6][7]. Core Views - The company is positioned as a ride-hailing platform under Geely Group, focusing on customized vehicle fleets and actively participating in the Robotaxi layout. It is expected to achieve a net profit of -1.05 billion, -0.08 billion, and 0.73 billion RMB from 2025 to 2027, with corresponding net profit margins of -5%, 0%, and 2% [6][7]. - The company is experiencing rapid revenue growth, with a projected revenue increase from 10.67 billion RMB in 2023 to 29.93 billion RMB in 2027, reflecting a compound annual growth rate (CAGR) of 39.8% [5][6]. - The Robotaxi business is anticipated to contribute significantly to future profitability, with a potential gross margin exceeding 40% by 2030, driven by reduced driver costs [6][7]. Summary by Sections Company Overview - The company, established in 2015 and backed by Geely Group, aims to create a shared ecosystem for new energy vehicles. It has expanded its operations to include ride-hailing services, vehicle sales, and rentals [6][15]. - The company has achieved a market share of 5.4% in the ride-hailing industry, ranking second, and is expanding into lower-tier cities [6][47]. Financial Data and Profit Forecast - Revenue is expected to grow significantly, with estimates of 10.67 billion RMB in 2023, 14.66 billion RMB in 2024, and reaching 20.51 billion RMB in 2025 [5][6]. - The company is projected to reduce its net loss from -1.91 billion RMB in 2023 to -1.05 billion RMB in 2025, with a path to profitability by 2027 [5][6]. Industry Analysis - The shared mobility market in China is expected to grow at a CAGR of 17% from 2025 to 2029, with the market size projected to reach 804.2 billion RMB [6][38]. - The Robotaxi segment is entering a phase of commercialization, with significant market potential as technology advances towards higher levels of automation [6][54]. Competitive Advantages - The company leverages a customized vehicle fleet strategy, enhancing service quality and optimizing cost control. The first-generation model, Maple 80V, and the second-generation model, Cao Cao 60, are designed specifically for ride-hailing services, offering competitive total cost of ownership (TCO) [6][63][66]. - The integration with Geely Group provides a comprehensive ecosystem that supports vehicle design, manufacturing, and operational efficiency, creating a competitive barrier [6][21].

Core Viewpoint - The recent IPOs of Cao Cao Mobility and Xiangjiang Electric have not maintained the strong momentum seen in the Hong Kong IPO market, with both companies experiencing significant declines in their stock prices shortly after listing [1][7]. Group 1: Company Performance - Cao Cao Mobility's shares were priced at HKD 41.94 and fell by 14.16% to close at HKD 36.00, while Xiangjiang Electric's shares were priced at HKD 2.86 and dropped by 11.89% to close at HKD 2.52 [1][3]. - The total market capitalization for Cao Cao Mobility approached HKD 20 billion, while Xiangjiang Electric's market cap was around HKD 700 million [7]. - Prior to their public offerings, both companies showed signs of weak demand, with Cao Cao Mobility's institutional subscription rate at 2.78 times and Xiangjiang Electric's at just 1.08 times [10][11]. Group 2: Company Background - Cao Cao Mobility, founded in 2015, is a strategic investment of Geely Holding Group in the "new energy vehicle sharing ecosystem" and has become a significant player in China's ride-hailing market [4]. - As of 2024, Cao Cao Mobility operates in 136 cities with a total Gross Transaction Value (GTV) of RMB 17 billion, representing a year-on-year growth of 38.8% and a market share of 5.4% [4]. - Xiangjiang Electric is known for kitchen small appliances and has a market share of 0.8% in the Chinese kitchen small appliance industry, with significant exports to North America [6]. Group 3: Future Prospects - Cao Cao Mobility is collaborating with Geely Group to develop a custom vehicle for Robotaxi services, expected to launch by the end of 2026, which will include pre-installed autonomous driving components [5][6]. - The company plans to leverage its relationship with Geely to deploy vehicles at scale without significant upfront investment, enhancing its competitive edge in the ride-hailing industry [6].

Core Viewpoint - Caocao Travel, established in 2015 and headquartered in Suzhou, is a key strategic business of Geely Holding Group focused on the "new energy vehicle sharing ecosystem" [1]. The company aims to raise funds primarily for autonomous driving research, debt repayment, market expansion, and vehicle business upgrades [1]. Group 1: IPO Information - The IPO is scheduled from June 17 to June 20, with the listing date on June 25 [2]. - The total fundraising scale is 44,178,600 shares, with approximately 90% allocated for international offerings and 10% for public offerings [2]. - The share price is set at HKD 41.94, with a market capitalization of HKD 22.823 billion [2]. Group 2: Financial Performance - The company's Gross Transaction Value (GTV) for the reporting period is projected to be CNY 89 billion, CNY 122 billion, and CNY 170 billion, with a year-on-year growth of 38.8% in 2024, making it the second-largest ride-hailing platform in China with a market share of 5.4% [5][19]. - Revenue for the years 2022 to 2024 is reported as CNY 76.3 billion, CNY 106.7 billion, and CNY 146.6 billion, with ride-hailing services contributing 92.6% in 2024 [6][7]. - The company has experienced a narrowing of losses, with net profits of CNY -20.1 billion, CNY -19.8 billion, and CNY -12.5 billion from 2022 to 2024 [7]. Group 3: Market Expansion and Strategy - The company plans to expand to 200 new cities within the year, aiming to create a "national + regionally dense" network by 2025 [8]. - Caocao Travel ranks first in user recognition in third-party surveys, particularly in first and second-tier cities, with market shares of 7.7% and 7.5% respectively [9]. Group 4: Competitive Landscape and Industry Trends - The ride-hailing market in China is highly concentrated, with Didi holding a dominant 70.4% market share, while Caocao Travel competes for the remaining market [19]. - The shared mobility penetration rate in China is currently at 4.3%, with a projected compound annual growth rate of 17% from 2025 to 2029 [18]. Group 5: Business Model and Competitive Advantages - Caocao Travel operates a heavy asset model, managing a fleet of 34,000 customized vehicles, which provides a cost advantage with total cost of ownership (TCO) significantly lower than the industry average [10][11]. - The company benefits from the Geely ecosystem, leveraging shared resources such as supply chains and R&D teams, enhancing brand trust and user recognition [12]. - The accumulation of operational data from its fleet aids in vehicle design and optimization of energy supply and autonomous driving algorithms [13].

Group 1 - The core viewpoint of the article is that Cao Cao Mobility is accelerating its IPO process, planning to list on the Hong Kong Stock Exchange on June 25, with a target to raise approximately HKD 18.53 billion (around RMB 1.7 billion) [2] - The company plans to issue a total of 44.18 million shares globally, with 4.42 million shares available for Hong Kong and 39.76 million shares for international investors, at a price of HKD 41.94 per share, leading to a valuation of approximately HKD 22.82 billion (around RMB 20.8 billion) [2] - Cao Cao Mobility has secured six cornerstone investors, including Mercedes-Benz and others, who will collectively subscribe to 22.64 million shares, amounting to about HKD 9.52 billion [2] Group 2 - As of the end of 2024, Cao Cao Mobility's ride-hailing business will expand to 136 cities, with a revenue of RMB 14.7 billion, reflecting a year-on-year growth of 37.4%, and an increase in gross margin from 5.8% in 2023 to 8.1% [3] - The company has a differentiated advantage with its customized vehicle model, operating a fleet of over 34,000 vehicles in 31 cities, and has reduced the total cost of ownership (TCO) of its vehicles by 33% compared to ordinary electric vehicles [3] - Cao Cao Mobility faces challenges such as over-reliance on aggregation platforms, with the proportion of orders from these platforms increasing from 51.4% in 2022 to 85.7% in 2024, which poses risks if these platforms change their traffic distribution strategies or increase commission rates [3] Group 3 - The company is focusing on the Robotaxi sector, having launched the Cao Cao Intelligent Driving platform in February, which utilizes Geely's Robotaxi solution for demonstration operations in Suzhou and Hangzhou [4] - According to Goldman Sachs, the Chinese Robotaxi market is expected to grow from USD 54 million in 2025 to USD 47 billion by 2035, representing a staggering increase of 757 times over ten years [5] - The funds raised from the IPO will primarily be used to improve vehicle service solutions, enhance service quality, develop customized vehicles, invest in autonomous driving technology, and expand geographical coverage [5]

Core Viewpoint - Caocao Travel, a ride-hailing platform under Geely, is set to go public on the Hong Kong Stock Exchange after passing its listing hearing, marking the potential tenth IPO for Geely's chairman Li Shufu [1][2][3] Company Overview - Caocao Travel ranked among the top three ride-hailing platforms in China over the past three years, with a projected market share of 5.4% in 2024, positioning it as the second-largest platform [1][5][15] - The platform processed 598 million orders last year, averaging 1.63 million orders per day, or approximately 19 orders per second [1][15] Business Model - Caocao Travel operates a unique business model combining B2C public transportation with certified drivers, leveraging Geely's automotive manufacturing experience [5][11] - The company has developed a fleet of customized electric vehicles, primarily the Fengye 80V and Caocao 60, and also engages in vehicle leasing and sales to other ride-hailing companies [11][20] Financial Performance - Total revenue for Caocao Travel has shown significant growth, with figures of 7.63 billion RMB, 10.67 billion RMB, and 14.66 billion RMB for 2022, 2023, and 2024 respectively, reflecting a compound annual growth rate of 41.4% [18][20] - The gross profit margin improved from -4.4% in 2022 to 8.1% in 2024, with gross profits of 6.15 billion RMB and 11.86 billion RMB in 2023 and 2024 respectively [22] Market Context - The ride-hailing market in China is highly competitive, with Didi holding approximately 70.4% market share in 2024, posing significant challenges for Caocao Travel [5][30] - The overall travel market in China is projected to reach 8 trillion RMB in 2024, with the shared mobility segment expected to grow to 344.4 billion RMB, indicating substantial growth potential [30][32] Future Prospects - The shared mobility market is anticipated to maintain a growth trajectory, with a projected compound annual growth rate of 17.0% from 2024 to 2029, increasing market penetration from 4.3% to 7.6% [32] - The emergence of Robotaxi services is seen as a new frontier in the mobility sector, with ongoing exploration of technology and business models [35]

Group 1 - The core viewpoint of the article highlights the significant progress of Cao Cao Mobility's IPO in Hong Kong, indicating a substantial advancement in its listing process [2] - Cao Cao Mobility, founded in 2015, is a strategic investment of Geely Holding Group in the "new energy vehicle sharing ecosystem," and has become a major player in China's ride-hailing market [2] - The company has expanded its ride-hailing operations to 136 cities by the end of 2024, with a revenue of 14.7 billion yuan, reflecting a year-on-year growth of 37.4% [4] Group 2 - The gross profit margin of Cao Cao Mobility improved from 5.8% in 2023 to 8.1% in 2024, indicating enhanced profitability [4] - The contribution of customized vehicles to the total gross transaction value (GTV) increased from 20.1% in 2023 to 25.1% in 2024, showcasing the growing importance of these vehicles in the company's operations [5] - The company plans to launch its Robotaxi customized model by 2026, further enhancing its capabilities in autonomous driving [6] Group 3 - Cao Cao Mobility has created flexible employment opportunities for over 3.9 million drivers, paying service fees exceeding 40 billion yuan [7] - The company has implemented initiatives for accessible transportation, including the deployment of barrier-free vehicles and free services in multiple cities [7] - The brand has established a significant competitive advantage, with a lower accident rate compared to industry averages and recognition for service quality [7]

Core Viewpoint - Caocao Travel has submitted an updated prospectus for its IPO in Hong Kong, marking a significant advancement in its listing process after receiving approval from the China Securities Regulatory Commission for overseas issuance [1][3]. Group 1: Company Overview - Founded in 2015, Caocao Travel is a strategic investment of Geely Holding Group focused on the "new energy vehicle sharing ecosystem" and has established a significant presence in China's ride-hailing market [3]. - According to Frost & Sullivan, Caocao Travel has ranked among the top three ride-hailing platforms in China by Gross Transaction Value (GTV) since 2021 and is projected to become the second-largest player in the industry by 2024 [3]. Group 2: Financial Performance - As of December 31, 2024, Caocao Travel's ride-hailing business has expanded to 136 cities, adding 85 cities compared to 2023 [3]. - The company achieved a revenue of 14.7 billion yuan in 2024, reflecting a year-on-year growth of 37.4% [3]. - The gross margin improved from 5.8% in 2023 to 8.1% in 2024, indicating ongoing enhancement in profitability [3]. Group 3: Operational Efficiency - The increase in profitability is attributed to the scale effects of customized vehicles and vehicle service solutions, allowing the company to manage the entire lifecycle of vehicles from design to operation [3]. - Caocao Travel operates a customized fleet of over 34,000 vehicles across 31 cities, making it the largest fleet of its kind in China [4]. - The GTV contribution from customized vehicles rose from 20.1% in 2023 to 25.1% in 2024, with significant reductions in Total Cost of Ownership (TCO) for its vehicles compared to typical electric vehicles [4]. Group 4: Brand and Service Quality - Caocao Travel has established a strong brand advantage by providing high-quality services, being recognized as having the "best service reputation" in five independent third-party surveys conducted between 2023 and 2024 [4]. - The company has a significantly lower order accident rate compared to the industry average, further enhancing its reputation [4]. Group 5: Social Responsibility and Innovation - The company has created flexible employment opportunities for over 3.9 million drivers, paying out more than 40 billion yuan in service compensation [5]. - Caocao Travel has launched an accessible ride service and initiated a public welfare day for accessible transportation in multiple cities [5]. - In the autonomous driving sector, the company has launched the Caocao Intelligent Driving platform and commenced Robotaxi demonstration operations in Suzhou and Hangzhou, with plans to introduce a dedicated L4 Robotaxi model by the end of 2026 [5].