Core Viewpoint - Boche Holding Limited (博车网) has submitted a second application for an IPO on the Hong Kong Stock Exchange, highlighting its leading position in China's accident vehicle auction industry, but faces challenges due to ongoing losses and industry risks [1][2]. Company Overview - Boche Holding Limited is the largest accident vehicle auction platform in China, holding a market share of 31.4% in 2024, and is also the third-largest B2B used car auction platform with a market share of approximately 12.0% [2]. - The company operates an integrated online and offline auction platform, connecting insurance companies (upstream) with certified repair shops and licensed dismantling factories (downstream) in the accident vehicle sector [2]. Financial Performance - Revenue figures for Boche Holding from 2022 to 2024 are 388.11 million RMB, 518.33 million RMB, and 526.07 million RMB, respectively, indicating a growth trend, but with a significant slowdown expected in 2024 to only 1.5% growth [3][4]. - The company recorded losses of 1.80 billion RMB, 1.22 billion RMB, and 0.36 billion RMB over the past three years, with total losses reaching 3.94 billion RMB [4][5]. - The gross profit margin has shown a downward trend, with figures of 44.4%, 49.9%, 46.4%, and 39.2% over the reporting period, indicating increasing financial pressure [5]. Market Potential - The accident vehicle auction market in China is projected to grow significantly, with an expected total auction volume of 86.7 million vehicles by 2028, reflecting a compound annual growth rate of 20.2% from 2023 to 2028 [6][7]. - Despite the growth potential, the company faces challenges in maintaining profitability amid increasing competition and the transition to electric vehicles, which require new technical capabilities [7][8]. Competitive Landscape - Boche Holding holds a leading market position with a 31.3% market share in 2023, but must navigate a competitive landscape where the largest player holds over 30% of the market [7]. - The company’s ability to convert its market position into sustainable profitability is critical for its future performance in the capital markets [8].

Core Viewpoint - Boche Holding Limited (博车网) has submitted its second application for an IPO on the Hong Kong Stock Exchange in 2023, highlighting its leading position in China's accident vehicle auction industry, but facing challenges due to ongoing losses and industry risks [1][2]. Company Overview - Boche Holding Limited is the largest accident vehicle auction platform in China, holding a market share of 31.4% in 2024, and is also the third-largest B2B used car auction platform with a market share of approximately 12.0% [2]. - The company's core business connects upstream sources (insurance companies) with downstream buyers (certified repair shops and licensed dismantling factories) through an integrated online and offline auction platform [2]. Financial Performance - Revenue figures for Boche Holding Limited from 2022 to 2024 are 388.11 million RMB, 518.33 million RMB, and 526.07 million RMB, respectively, indicating a growth trend, but with a significant slowdown in growth from 33.5% in 2023 to only 1.5% in 2024 [3][4]. - The company recorded losses of 180.25 million RMB, 121.47 million RMB, and 36.44 million RMB over the same period, with total losses reaching 394 million RMB over three years and seven months [5][6]. Market Dynamics - The accident vehicle auction market in China is projected to grow significantly, with an expected total auction volume of 867,000 vehicles by 2028, reflecting a compound annual growth rate (CAGR) of 20.2% from 2023 to 2028 [7]. - Boche Holding Limited's leading market position is challenged by increasing competition and the need to adapt to the rapid growth of new energy vehicles, which have different accident rates and repair costs compared to traditional vehicles [8]. Challenges and Strategic Considerations - The company faces a "volume increase, price decrease" phenomenon in its core accident vehicle auction business, with auction volumes rising but average prices declining, indicating potential sustainability issues with its pricing strategy [4][6]. - The financial structure of Boche Holding Limited poses risks, as its net current liabilities reached 1.721 billion RMB, with a significant portion attributed to financial instruments classified as liabilities [6]. - The company must balance its market share retention with achieving high-quality growth, as it navigates the complexities of the evolving automotive market and competitive landscape [8][9].

Core Viewpoint - 博车网, established in 2014, is an auction platform for accident vehicles, facing challenges in valuing these vehicles due to their lack of standardization and the influence of various factors on market prices [1][3]. Financial Performance - 博车网 reported revenues of 388 million RMB, 518 million RMB, and 526 million RMB for the years 2022, 2023, and 2024 respectively, with corresponding gross profits of 172 million RMB, 258 million RMB, and 244 million RMB [5][6]. - The company incurred losses of 180 million RMB, 121 million RMB, and 36 million RMB for the same years, with operational profits of 272 thousand RMB, 44 million RMB, and 51 million RMB [5][8]. - For the first seven months of 2025, 博车网 achieved revenues of 290 million RMB, a slight increase from 283 million RMB in the same period of the previous year, with a gross profit of 114 million RMB [6][8]. Revenue Breakdown - In 2025, the revenue from accident vehicle auctions and related services accounted for 46.2% of total revenue, while used vehicle auctions contributed 19.4% [7][8]. - The total revenue for 2025 is projected to be 290 million RMB, with a breakdown showing 134 million RMB from accident vehicle services and 56 million RMB from used vehicle services [7]. Cash Flow and Assets - As of July 31, 2025, 博车网's total current assets amounted to 437 million RMB, while total current liabilities were 2.16 billion RMB [9][10]. - The company reported a cash and cash equivalents balance of 82.37 million RMB as of July 31, 2025 [10]. Valuation and Shareholding - 博车网's valuation reached 3.2 billion RMB following a series of financing rounds, with the latest round in February 2022 raising 100 million RMB [11][13]. - Key shareholders include 陈健鹏 with 25.53%, DeXXully with 5.32%, and TR Restore with 11.74% [14][17].

Core Viewpoint - Boche Holding Limited (博车网) has re-submitted its IPO application to the Hong Kong Stock Exchange after a seven-month hiatus, with Citic Securities and Fosun International Capital as joint sponsors. The company is the largest accident vehicle auction platform in China, but it has faced significant financial losses and challenges in revenue growth [1][3][4]. Company Overview - Established in 2014, Boche Holding Limited operates a B2B auction platform for various types of vehicles, including accident cars, used cars, dismantled cars, and parts. It sources vehicles from insurance companies, car rental companies, automotive finance companies, and 4S dealerships [3]. - According to data from Zhaosheng Consulting, Boche Holding is ranked first in China's accident vehicle auction industry with a market share of approximately 31.4% based on transaction volume in 2024. It ranks third in the B2B used car auction sector with a market share of about 12.0% [3]. Financial Performance - The company's revenue for the years 2022 to 2024 and the first seven months of 2025 was reported as follows: 388.11 million RMB, 518.33 million RMB, 526.07 million RMB, and 291.44 million RMB, respectively. The revenue growth rate for 2023 was 33.5%, but it is expected to slow to 1.5% in 2024 [4][5]. - The gross profit margins during the reporting period were 44.4%, 49.9%, 46.4%, and 39.2%, indicating a downward trend [4]. - The company has recorded losses of 180.25 million RMB, 121.47 million RMB, 36.44 million RMB, and 55.60 million RMB over the same periods, totaling approximately 394 million RMB in losses over three years and seven months [4][5]. Adjusted Profitability - Boche Holding reported adjusted net profits of 11 million RMB, 42 million RMB, 51 million RMB, and 27 million RMB during the reporting period, excluding non-cash items such as changes in the fair value of financial instruments and share-based payments. However, the actual profitability remains in question [6]. Market Dynamics - The core business of accident vehicle auctions and related services accounted for 52.5% of the company's revenue in 2024. The auction volume of accident vehicles increased by 72% from 68,000 units in 2022 to 117,000 units in 2024, but the average price per vehicle decreased from 42,700 RMB to 37,600 RMB [6]. - The company faces high current liabilities, with a net current liability of 1.721 billion RMB as of July 31, 2025, primarily due to financial instruments issued to preferred shareholders [6]. Goodwill and Shareholding Structure - As of July 30, 2025, the goodwill on the company's balance sheet was valued at 295 million RMB, representing 36% of the total assets. Future performance below expectations may lead to impairment [7]. - The largest shareholder, founder Chen Jianpeng, holds 25.53% of the shares, with institutional investors such as Fosun International and China Ping An following [7]. Compliance Issues - The company has reported deficiencies in social insurance and housing fund contributions during the reporting period, with shortfalls of 8.6 million RMB, 7.9 million RMB, 8.9 million RMB, and 6.5 million RMB for social insurance, and 1.5 million RMB, 0.9 million RMB, 0.2 million RMB, and 0.2 million RMB for housing funds [8].

Core Viewpoint - 博车网, a leading player in the domestic accident vehicle auction market, is facing significant operational challenges despite its market share and transaction volume, raising questions about its upcoming IPO and overall business model sustainability [1][9]. Financial Performance - 博车网's revenue grew from 3.88 billion RMB in 2022 to 5.18 billion RMB in 2023, marking a 33.6% increase, but the growth rate slowed to 3.32% in the first three quarters of 2024, with revenue at 4.04 billion RMB [1][2]. - The company reported losses of 1.8 billion RMB in 2022 and 1.21 billion RMB in 2023, achieving a slight profit of 142.5 million RMB in the first three quarters of 2024 [1][2]. - Cost-cutting measures contributed to the profit in 2024, with reductions in sales, marketing, administrative, and R&D expenses totaling 12 million RMB [2]. Market Dynamics - The accident vehicle auction market is becoming increasingly competitive, particularly with the influx of low-priced new energy accident vehicles, which has pressured auction prices [2][4]. - 博车网's core business revenue from accident vehicle auctions decreased from 2.59 billion RMB in the first three quarters of 2023 to 2.18 billion RMB in 2024, with its revenue share dropping from 66.3% to 54% [2][4]. Accounts Receivable and Cash Flow - 博车网's accounts receivable surged by 227% from 1.156 billion RMB in 2023 to 3.782 billion RMB in the first three quarters of 2024, indicating a reliance on upstream suppliers and potential collection issues [4]. - The company's net cash flow from operating activities plummeted over 95%, from 1.25 billion RMB in 2023 to 545.6 million RMB in 2024, reflecting a deteriorating financial health [5]. Business Model Challenges - 博车网's business model heavily relies on upstream sources, with 71.4% of accident vehicle transactions coming from insurance companies and leasing firms, which poses risks if these sources decide to establish their own platforms [9][10]. - The average auction price for accident vehicles dropped from 42,666 RMB in 2022 to 37,559 RMB in the first three quarters of 2024, despite an increase in transaction volume [11]. User Engagement and Complaints - The number of active members decreased from 99,100 in 2023 to 77,000 in the first three quarters of 2024, with a decline in repurchase rates from 74.1% to 70.7% [14]. - 博车网 has faced numerous complaints regarding vehicle quality and transparency, with 43.14% of related legal cases involving auction contract disputes [18].