Summary of Didi Global and Caocao Conference Call Industry Overview - The report focuses on the ride-hailing and mobility services industry in China, highlighting the competitive landscape and growth opportunities for major players like Didi Global and Caocao. Key Points on Didi Global - **Coverage Initiation**: Didi Global is initiated with a Buy/High Risk rating and a target price of US$8.30, with a market share stabilizing at 70% in 2024 [2][10]. - **Operational Metrics**: Didi has shown a solid recovery in Monthly Active Users (MAU) and Daily Active Users (DAU), with MAU increasing by 24% year-over-year to 144 million and DAU up 26% to 31 million as of August 2025 [14]. - **Profitability**: Didi turned profitable in adjusted operating income starting from Q3 2023, with adjusted EBITA margins improving from 2.0% in 2023 to 4.4% in Q2 2025 [14][15]. - **International Expansion**: Didi has successfully entered international markets, particularly in Mexico and Brazil, where it has gained significant market share [16][19]. - **Growth Forecast**: The total Gross Transaction Value (GTV) is projected to grow by 12% CAGR from 2025 to 2028, reaching RMB 610 billion [23][25]. - **Investment Risks**: Risks include regulatory challenges, competition, and the impact of robotaxi and AI technologies [4][18]. Key Points on Caocao - **Coverage Initiation**: Caocao is also initiated with a Buy/High Risk rating and a target price of HK$70.00, with a market share of 5.4% in 2024 [3][10]. - **Growth Performance**: Caocao's total GTV increased by 53.6% to RMB 11.0 billion in the first half of 2025, driven by a 49% year-over-year growth in total order volume [47]. - **Revenue Breakdown**: Approximately 85% of Caocao's GTV comes from aggregator platforms, while 15% is from its own app and WeChat mini program [47]. - **Strategic Partnerships**: Caocao's partnership with Geely allows it to leverage a low-cost model and capture growth opportunities in the robotaxi segment [3][46]. Additional Insights - **Market Dynamics**: The ride-hailing industry in China faces challenges such as intense competition, declining average selling prices (ASP), and regulatory scrutiny, but still presents attractive investment opportunities due to structural demand growth [11][12]. - **Technological Advancements**: Didi is investing in AI and autonomous driving technologies, which are expected to enhance user experience and operational efficiency [22][21]. - **Competitive Landscape**: Didi maintains a dominant position in the market, but competition from platforms like Amap and the emergence of robotaxi services pose ongoing challenges [20][21]. This summary encapsulates the essential insights from the conference call regarding Didi Global and Caocao, focusing on their market positions, growth prospects, and the challenges they face in the evolving ride-hailing industry.

Financial Data and Key Metrics Changes - The company generated revenue of $18,700,000 for the year 2024, exceeding the guidance of $16,600,000 by $2,100,000, primarily due to the monetization of the ride-hailing service which began in October 2024 [21] - Adjusted EBITDA was negative $19,300,000, better than the guidance of negative $22,500,000, driven by operational efficiencies in the two-wheeled electric vehicle service [21][25] - Total rides increased from 21,900,000 in 2023 to 31,700,000 in 2024, with unique riders growing from 1,800,000 to 2,100,000 [21][22] Business Line Data and Key Metrics Changes - The number of unique ride-hailing riders increased from approximately 499,000 in 2023 to 1,660,000 in 2024, while registered drivers grew from 107,000 to 262,000 [10][22] - The average daily two-wheeled electric vehicles deployed decreased from 34,600 in 2023 to 32,600 in 2024 due to the gradual decommissioning of the fleet [22] Market Data and Key Metrics Changes - The company is the number one urban mobility app in Turkey, serving over 109,400,000 rides to 5,900,000 unique riders since launch [8] - The company operates in four of Turkey's largest cities, which account for 50% of the country's GDP and 34% of its population [9] Company Strategy and Development Direction - The company has shifted its primary focus to ride-hailing, aiming to double revenue to $34,000,000 in 2025 and achieve positive adjusted EBITDA [7][25] - Plans to expand into additional cities in Turkey are being considered for 2025 and beyond, with a focus on capturing a $3,000,000,000 annual revenue opportunity in the ride-hailing business [11][12] Management's Comments on Operating Environment and Future Outlook - Management believes that Turkey's ride-hailing market is underdeveloped and presents significant growth opportunities, with a strong demand for tech-enabled mobility solutions [12][42] - The company is prepared for competition and believes its first-mover advantage will help maintain market leadership [39][40] Other Important Information - The company has implemented a share repurchase program allowing for the purchase of up to $3,500,000 of ordinary shares [25] - The acquisition of Zoba's AI-powered software has improved operational efficiency in the two-wheeled electric vehicle business, achieving higher daily rides per vehicle [17] Q&A Session Summary Question: Can you talk about the dynamic pricing and its impact on ride-hailing monetization? - Management explained that dynamic pricing adjusts based on demand and supply, significantly improving match rates and overall metrics [30][31] Question: How is the driver supply growing on the platform? - Management noted that the demand for ride-hailing is high in Turkey, leading to strong growth in driver applications and increased activity among registered drivers [32][33] Question: How has the competitive environment evolved? - Management stated that they are the first mover in the market and expect to maintain a dominant position despite potential competition [38][39] Question: What is the regulatory backdrop for ride-hailing in Turkey? - Management indicated that Turkey is working on establishing regulations for ride-hailing, which is expected to align with global trends [41][42] Question: Can you discuss the assumptions behind the 2025 revenue guidance? - Management clarified that the guidance assumes continued operations in existing cities without new city launches and a similarly sized G&A team [52][54] Question: What is the company's cash position and monthly burn rate? - The company reported a cash position of approximately $5,000,000 at the end of the year, with a forecasted EBITDA of $3,000,000 for 2025 [71][72] Question: How does the company balance growth versus profitability? - Management emphasized a focus on growth in the ride-hailing market, with plans to explore other verticals only after fully capturing the ride-hailing opportunity [84]