Core Viewpoint - Boche Holding Limited (博车网) has refiled its IPO application with the Hong Kong Stock Exchange, aiming to strengthen its market position and improve cash flow after a previous application lapsed earlier this year [1][3] Company Overview - Founded in 2014, Boche Holding Limited is the largest accident vehicle auction platform in China, holding a market share of approximately 31.4% in the accident vehicle auction industry as of 2024 [1] - The company operates a comprehensive B2B auction ecosystem that covers the entire process of accident vehicle auctions, including vehicle assessment, inspection, storage, preservation, and logistics services [1] - Boche is also the third-largest B2B used car auction platform in China, with a market share of about 12.0% [1] Client Base - As of July 31, 2025, the company has served over 190 accident vehicle sources, including 63 out of 66 insurance companies operating in China and all of the top 50 insurance companies by revenue [2] - The company has provided services to over 50,000 accident vehicle buyers, primarily consisting of around 49,000 certified repair shops and over 1,000 licensed dismantling factories [2] Financial Performance - Revenue for the years 2022 to 2024 and the first seven months of 2025 was reported as follows: 388 million, 518 million, 526 million, and 290 million CNY respectively [2] - The company has experienced a decline in revenue growth and continued losses, with losses for the first seven months of 2025 exceeding the total losses for the entire previous year [2] - Current assets for the same periods were 252 million, 330 million, 453 million, and 437 million CNY, while current liabilities were 1.898 billion, 2.038 billion, 2.164 billion, and 2.158 billion CNY [2] - As of the end of July 2025, the company had cash and cash equivalents of only 82.374 million CNY, indicating significant short-term liquidity pressure [2] IPO Fund Utilization - The funds raised from the IPO are intended for enhancing and expanding offline outlets, further investment in research and development, exploring potential investment and acquisition opportunities, as well as for working capital and general corporate purposes [3] - The IPO is viewed as a strategic move for the company to not only supplement cash flow but also to solidify its position in the industry [3]

Group 1 - The core point of the article is that BoChe Network has submitted a listing application to the Hong Kong Stock Exchange, with CITIC Securities and Fosun International Capital acting as joint sponsors [1] Group 2 - According to ZhiShi Consulting data, by 2024, BoChe Network ranks first in China's accident vehicle auction market with a market share of approximately 31.4% [2] - The company utilizes a combination of online and offline auction models to connect accident vehicle sources (mainly insurance companies) with buyers (primarily certified repair shops and licensed dismantling factories) [2] - BoChe Network is also the third-largest B2B used car auction platform in China, with a market share of about 12.0% in auction volume for 2024 [2] Group 3 - The volume of accident vehicle auctions in China has increased from approximately 205,000 units in 2020 to 373,000 units in 2024 [2] - In comparison, the auction volume of accident vehicles in the United States is nearly 7 million units in 2024, about 20 times that of China, despite similar vehicle ownership levels [2] - This indicates significant growth potential for China's accident vehicle auction industry, driven by factors such as increasing vehicle ownership, rising repair costs, the prevalence of new energy vehicles leading to higher claims frequency, direct consumer engagement by insurance companies, rising labor costs, and increased insurance awareness [2]

Core Viewpoint - The article discusses the challenges faced by BoChe Wang, a used car auction platform specializing in accident vehicles, as it plans to go public on the Hong Kong Stock Exchange despite its recent financial struggles and market limitations [1][3][16]. Company Overview - BoChe Wang, established in 2014, operates as a B2B auction platform for various types of vehicles, including accident cars, with a market share of 31.3% in the accident car auction industry as of 2023, ranking first in China [4][6]. - The company aims to raise funds for offline expansion, technology upgrades, and potential investments through its upcoming IPO [1]. Financial Performance - In the fiscal years 2022 and 2023, BoChe Wang reported revenues of 388.1 million RMB and 518.3 million RMB, respectively, with losses of 180.2 million RMB and 121.5 million RMB [6][7]. - The adjusted net profits for 2022, 2023, and the first three quarters of 2024 were 50.2 million RMB, 81.7 million RMB, and 75.8 million RMB, respectively, indicating a significant slowdown in growth from 62.7% in 2023 to less than 3% in 2024 [6][8]. Market Challenges - The auction business's revenue share from accident cars has decreased to 54% in the first three quarters of 2024, reflecting declining user retention, with the repurchase rate dropping from 74.1% to 70.7% [6][8]. - The company faces competition from major insurance firms that are establishing their own auction platforms, which could threaten BoChe Wang's intermediary role [8][14]. Industry Limitations - The accident car market is considered niche, with consumer acceptance being low due to safety concerns and a lack of stringent regulations [9][11]. - Despite a projected increase in auction volumes from 20.6 million vehicles in 2019 to 34.5 million in 2023, the growth potential remains limited [11]. Valuation Concerns - Following a series of funding rounds, BoChe Wang's post-money valuation reached 3.17 billion RMB, leading to a projected P/E ratio of nearly 1700 based on 2024's net profit estimates [12][16]. - The company's reliance on a limited number of upstream suppliers for vehicle sourcing poses a risk to its business continuity and profitability [8][14]. Conclusion - While BoChe Wang has established itself in the accident car auction market, its future success in going public and sustaining growth is uncertain due to market dynamics and internal challenges [16].