Core Viewpoint - Cao Cao Mobility, after ten years of operation, went public on the Hong Kong Stock Exchange, raising approximately HKD 1.718 billion, but faced skepticism regarding its sustainable profitability despite a strong market narrative in the new energy and mobility sector [1][3]. Company Overview - Founded in 2015, Cao Cao Mobility is a strategic business of Geely Holding Group focused on the "new energy vehicle sharing ecosystem" [3]. - The company has differentiated itself by emphasizing high-quality, low-carbon ride experiences with its own fleet of new energy vehicles and contracted drivers, rather than engaging in subsidy wars like competitors [3]. - By 2024, the company had expanded its operations to 136 cities, with revenue growth from CNY 7.631 billion in 2022 to CNY 14.657 billion in 2024, while reducing net losses from CNY 20.07 billion to CNY 12.46 billion over the same period [3]. Market Position - Cao Cao Mobility 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 by 2024 [3]. - The ride-hailing market in China has become highly concentrated, with the top five platforms holding over 90% market share by the end of 2024 [4]. Financial Performance - The company’s GTV from third-party aggregation platforms increased significantly, from 49.9% in 2022 to 85.4% in 2024, indicating a heavy reliance on external platforms for order volume [5]. - Cao Cao's sales and marketing expenses have seen a rise in commission payments to aggregation platforms, from 50.3% to 85.6% of total expenses, highlighting vulnerability to changes in platform commission structures [5]. - The company has incurred over CNY 5.2 billion in net losses over the past three years, with a high asset-liability ratio of 149% as of 2024 [5]. Regulatory and Compliance Issues - As of October 2024, a significant portion of Cao Cao's active vehicles and drivers lacked the necessary operating licenses, with 8.6% of vehicles and 11.1% of drivers not compliant [7]. - The company ranked eighth in compliance rates among major platforms, reflecting broader industry challenges in meeting regulatory requirements [7]. User Experience Challenges - Complaints against Cao Cao Mobility have been prevalent, with issues related to pricing transparency and service quality, indicating systemic problems within the industry [7][8]. - Driver dissatisfaction has been noted due to low earnings and the imposition of low-paying "special orders," which has led to high turnover rates among drivers [8]. Future Outlook - The company is investing in autonomous driving technology, with plans to launch a Robotaxi service by 2026, although this is not expected to provide immediate financial support [10]. - Addressing cash flow issues, reducing dependency on aggregation platforms, and improving compliance and user experience are critical for gaining investor confidence in the near term [10].

Core Points - The collaboration between Cao Cao Mobility and Shanghai's leading taxi company, Strong生出租, aims to enhance sustainable development for accessible transportation in Shanghai [1] - The partnership will integrate Strong生出租's multi-functional accessible vehicles into the Cao Cao Mobility platform, allowing users to access these services via the app and mini-program [1] - The initiative addresses the common challenge of maintaining long-term sustainability for accessible vehicles and services within the industry and society [1] Company Overview - Strong生出租 is recognized as the leading taxi company in Shanghai and plans to launch a new version of the "British" accessible taxi in 2024 to address the supply-demand imbalance for accessible transportation [2] - Cao Cao Mobility, a strategic investment of Geely Holding Group, focuses on the "new energy vehicle sharing ecosystem" and has successfully implemented high-quality accessible transportation services across various provinces in China [2] - As of now, Cao Cao Mobility has deployed over 1,000 accessible vehicles nationwide, serving over 5 million citizens in nearly 20 cities [2] Vehicle Features - The LEVC TX5 multi-functional accessible vehicle features a one-piece aluminum body, transparent driver-passenger partition for privacy and safety, and is equipped with a range of accessibility enhancements [2] - Key features include an extended ramp, wheelchair securing devices, 90° rotating seats, tactile braille panels, and a voice communication system, catering to users of all ages [2]