On December 30, 2025, Hong Kong-listed company CAOCAO INC (02643.HK) announced two strategic acquisitions: purchasing 100% equity of Weixing Technology Co., Ltd., which operates the premium mobility brand "Yao Chuxing," for 225 million yuan, and intending to acquire 100% equity of Zhejiang Geely Business Service Co., Ltd. (Geely Business Travel) for 65 million yuan. This transaction marks the first acquisition by CAOCAO INC since its listing on the Hong Kong Stock Exchange in June 2025, signaling a substantive phase of resource integration within the mobility segment of Geely Holding Group.
The logic behind the acquisitions is to address gaps in the business matrix and build a one-stop service platform. Targeting its weaker segments, the purchase of Yao Chuxing—a premium brand jointly established by Geely and Mercedes-Benz that operates in 12 international cities including Paris and Tokyo—will fill the void in CAOCAO INC's high-end market offerings with services like corporate meeting transportation and airport concierge support. Meanwhile, Geely Business Travel, as a corporate travel management platform, will provide comprehensive digital solutions to enhance B2B service capabilities. CAOCAO INC CEO Gong Xin stated that post-integration, the company will establish a full-scenario service chain covering "daily commuting—business reception—travel management," forming a comprehensive mobility platform that serves both individual and corporate clients across standard and premium segments.
This integration also aligns with the strategic direction outlined in Geely Holding Group's "Taizhou Declaration," which aims to improve synergy efficiency by reducing redundant internal resource investments and clarifying brand positioning. Previously, CAOCAO INC (mass market), Yao Chuxing (premium market), and Geely Business Travel (corporate travel) operated under separate entities, leading to overlapping customer resources and ambiguous business boundaries. Post-acquisition, the three will be unified under one operation, potentially lowering customer acquisition costs and boosting resource utilization efficiency.
The operational health of the acquisition targets has drawn market attention. Disclosures reveal that Yao Chuxing reported consecutive net losses exceeding 57 million yuan after tax for both 2023 and 2024, and underwent management changes and layoffs in 2022. Although Geely Business Travel achieved a profit of 23.3 million yuan in 2024, this represented a 48% year-on-year decline, and the final transaction value of 65 million yuan was a discount to its valuation of 75.32 million yuan, reflecting subdued market confidence in its prospects. However, CAOCAO INC believes the B2B customer resources and premium service expertise brought by the two companies will generate long-term synergistic value. Stable corporate service demand and high per-order gross margins (with business car services reaching 45% gross margin) are expected to optimize CAOCAO INC's profit structure.
CAOCAO INC's acquisition moves reflect an evolution in industry competition dynamics. The domestic ride-hailing market has entered a phase of存量博弈 (stock game competition), with Didi dominating with a 62.9% market share, while the corporate travel market emerges as a new blue ocean. The Global Business Travel Association forecasts global business travel expenditure to reach $1.57 trillion in 2025, with China contributing $373.1 billion. Previously, players like Didi and T3出行 have accelerated their presence in the corporate services sector, while established players like Ctrip Business Travel hold first-mover advantages in travel management.
CAOCAO INC aims to achieve dual-drive growth from both C-end and B-end segments through these acquisitions. Its existing transportation network can complement Yao Chuxing's premium vehicles and Geely Business Travel's corporate client resources: on one hand, corporate employee travel needs can be converted into individual platform users; on the other, high-end service standards can enhance the mass-market business, improving overall service quality.
The capital market views this acquisition optimistically. Citi maintained a "Buy" rating on CAOCAO INC, citing that the high customer unit price and strong stickiness of B2B services will boost the platform's average revenue per user and profit margins. Concurrently, controlling shareholder Li Shufu voluntarily extended his share lock-up period to September 2026 post-acquisition, signaling confidence in the company's long-term value.
Financial data shows CAOCAO INC achieved revenue of 9.456 billion yuan in the first half of 2025, a 53.5% year-on-year increase, with adjusted net loss narrowing to 330 million yuan. Effective integration of the acquired premium and corporate travel businesses could accelerate its path to profitability. Furthermore, Yao Chuxing's global service network and Geely Business Travel's overseas client resources provide ready-made footholds for CAOCAO INC's international expansion.
CAOCAO INC's ambitions extend beyond mere business aggregation. As the core commercialization vehicle for Geely's Robotaxi initiatives, its long-term strategy involves accumulating high-value scenarios for future autonomous driving services through an "intelligent custom vehicles + autonomous driving technology + smart operations" model. The acquired premium corporate travel clientele represent an ideal pilot group for Robotaxi commercialization.
Challenges remain significant. Turning around Yao Chuxing's losses, efficiently integrating three business teams and systems, and competitive defensive reactions from rivals like Didi in the B2B market will test CAOCAO INC's operational capabilities. Successful integration could allow CAOCAO INC to reshape industry competition rules; failure, however, might strain finances due to resource dispersion.
CAOCAO INC's 290 million yuan acquisition represents a critical attempt by a traditional mobility platform to transition towards an ecosystem model. With support from both capital markets and group strategy, whether it can unlock new growth avenues through a "scenario combination punch" will be a key indicator to watch for shifts in the 2026 mobility industry landscape.
Note: This article was generated with AI assistance and does not constitute investment advice. Market risks exist; invest with caution.
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