Core Viewpoint - The expectation from Li Shufu for Cao Cao Mobility to "surpass Didi to be successful" appears increasingly like an unattainable dream in the current market context [1] Company Overview - Cao Cao Mobility, incubated by Geely, has faced significant financial challenges, including a cumulative loss of 5.2 billion yuan over three years and a high dependency on aggregator platforms for 85.4% of its orders [4][5][14] - The company went public on June 25, 2025, but its stock price plummeted by 19.4% on the first day, closing at 36 HKD, resulting in a market capitalization of approximately 19 billion HKD [3][6] Financial Performance - Revenue increased from 7.63 billion yuan in 2022 to 14.66 billion yuan in 2024, but net losses remained substantial at 20.07 million, 19.81 million, and 12.46 million yuan for the respective years [5][7] - As of the end of 2024, total liabilities reached 11.28 billion yuan, with cash and equivalents only at 159 million yuan, indicating a precarious financial position [5][8] Business Model and Strategy - Cao Cao Mobility operates under a B2C heavy asset model, which has led to high operational costs and limited expansion capabilities, with a gross margin of only 8.1% compared to Didi's 18.15% [10][13] - The company has been forced to allocate 34% of its IPO proceeds to repay short-term debts, highlighting the necessity of financing for survival rather than growth [8] Market Environment - The overall market sentiment is negative, as evidenced by the poor performance of other similar companies like Dida and Ruqi, which have seen their stock prices drop by 80% [9] - Despite the projected growth of the shared mobility market in China, the competitive landscape remains dominated by Didi, making it challenging for other players to achieve economies of scale [9] Future Outlook - Cao Cao Mobility's reliance on aggregator platforms has increased significantly, with commissions paid to these platforms reaching 1.046 billion yuan in 2024, which is 85.7% of its sales expenses [14] - The company plans to invest 17% of its IPO proceeds (approximately 295 million HKD) into autonomous driving research, but this amount is significantly lower than competitors like Waymo and Baidu [15]

Core Viewpoint - CaoCao Inc. has listed on the Hong Kong Stock Exchange but faced a significant drop in share price, opening down 15.47% from its IPO price, indicating weak market reception and investor sentiment [2][3]. Company Overview - CaoCao Inc. is the second-largest ride-hailing company in China, holding a market share of 5.4%, significantly lower than Didi's 70.4% [2]. - The company was founded in 2015 as part of Geely Holding Group's strategic investment in the "new energy vehicle sharing ecosystem" [5]. IPO Details - The global offering consisted of 44.18 million shares, with a public offering of 4.42 million shares and an international offering of 39.76 million shares, priced at HKD 41.94 per share, aiming to raise approximately HKD 1.853 billion [5]. - The post-IPO valuation of the company is expected to reach HKD 22.823 billion [5]. Financial Performance - The company reported total revenues of RMB 7.63 billion, RMB 10.67 billion, and RMB 14.66 billion for the years 2022, 2023, and 2024 respectively, with a year-on-year growth of 37.4% in 2024 [8][10]. - Despite revenue growth, the company has faced significant operating losses, with losses of RMB 53 billion, RMB 64 billion, and RMB 72 billion projected for 2022, 2023, and 2024 respectively [7][10]. Business Model - Unlike other ride-hailing platforms that utilize a C2C model, CaoCao operates on a B2C heavy asset model, directly purchasing vehicles and employing dedicated drivers [6]. - The company has a fleet of 216,000, 307,000, and 592,000 active vehicles as of 2022, 2023, and 2024, respectively, with corresponding active driver counts [6]. Cost Structure - CaoCao's total liabilities are projected to reach RMB 112.83 billion by 2024, with net current liabilities of RMB 81.46 billion, indicating liquidity concerns [7]. - The company’s sales costs are heavily influenced by driver income and subsidies, which account for approximately 80% of total sales costs [15]. Market Position and Competition - The ride-hailing market is highly competitive, with CaoCao's business model facing challenges in achieving profitability despite its market position [11][20]. - The company relies significantly on external aggregation platforms for orders, with 49.9%, 73.2%, and 85.4% of its Gross Transaction Value (GTV) coming from these platforms in 2022, 2023, and 2024 respectively [14]. Strategic Initiatives - To improve profitability, the company has focused on enhancing technological capabilities, reducing driver subsidies, and expanding into new markets [9]. - The company achieved a gross profit margin of 8.1% in 2024, recovering from a gross loss margin of 4.4% in 2022 [9].