For stock trading, rely on Jinlin Analyst Reports — authoritative, professional, timely and comprehensive, helping you uncover potential thematic opportunities! Source: Radar Finance. Produced by Radar Finance. Text by Zhou Hui. Edited by Meng Shuai.
On October 16, the Hong Kong-listed company GOGOX (ASX: 02246) announced that it had entered into a sale and purchase agreement with an independent third party to conditionally sell all equity in its subsidiary that operates the Chinese mainland business for a consideration of 1 yuan.
The announcement showed that in the first half of this year, the target company recorded revenue of approximately 44 million yuan, a loss after tax of 49 million yuan, and an unaudited net liability of approximately 2.476 million yuan as of the end of the first half.
After offloading the "burden" of the mainland business, the board of GOGOX proposed changing the company's Chinese name to "GOGO Technology" to reflect the group's business and future strategic direction.
As an online intra-city logistics platform once crowned the "first stock in intra-city freight," GOGOX has been losing ground year after year in competition with rivals such as Huolala and Didi Freight. Its market share in the Chinese mainland had shrunk to 0.5% last year (based on closed-loop freight GTV).
Meanwhile, GOGOX's own performance has also been less than satisfactory. Since its listing, the company has never achieved profitability. From 2022 to the first half of this year, the company's cumulative net loss attributable to shareholders exceeded 2.7 billion yuan.
At its peak, GOGOX's market value once exceeded 10 billion Hong Kong dollars, but as of the close on October 21, its share price had fallen back to 1.12 Hong Kong dollars per share, with a latest market value of less than 100 million Hong Kong dollars.
Priced at 1 Yuan, GOGOX Sells Off Mainland Business
After the market close on October 16, Hong Kong-listed company GOGOX announced that it had entered into a sale and purchase agreement to conditionally sell all equity in its subsidiary operating the Chinese mainland business for a consideration of 1 yuan.
It is understood that the buyer in this transaction is Crestpoint Investment Limited, a limited company incorporated in Hong Kong mainly engaged in investment holding, wholly owned by businessman Wu Zifeng, who resides in Hong Kong. GOGOX stated that after making all reasonable inquiries, the directors confirmed that the buyer and Wu Zifeng are both independent third parties.
The subsidiary being sold is an investment holding company incorporated in the British Virgin Islands (hereinafter referred to as the "target company"), which was wholly owned by GOGOX on the date of the sale and purchase agreement.
The announcement showed that the target company directly holds 100% equity in China GOGOX Group Co., Ltd. and, through equity and contractual arrangements, controls operating entities including Tianjin 58 Freight, Zhenjiang 58 Supply Chain, and Hainan 58 Freight, undertaking all operations of the GOGOX brand in the Chinese mainland.
According to financial data disclosed by GOGOX, from 2024 to 2025, the target company achieved revenues of 166 million yuan and 132 million yuan respectively, and recorded losses after tax of 152 million yuan and 80 million yuan respectively. In the first half of this year, the target company's revenue was approximately 44 million yuan, with a loss after tax of 49 million yuan. As of the end of the first half, its unaudited net liability was approximately 2.476 million yuan.
GOGOX stated that upon completion of the transaction, the target company will no longer be a subsidiary of the listed company, and its financial results will no longer be consolidated into the company's consolidated financial statements.
The announcement showed that based on the target company's unaudited consolidated financial statements, the estimated gain on disposal attributable to owners of GOGOX is approximately 2.476 million yuan. However, given the nominal consideration, the company does not expect to receive any net proceeds from the disposal after deducting related expenses. The 1 yuan consideration will be used as general working capital of the group.
Regarding this sale of the mainland business, the board of GOGOX stated that the move aims to enhance long-term operational efficiency and strengthen the group's strategic focus — the Chinese mainland market, which the target company mainly operates in, is no longer the group's core geographic focus. Although it still maintains operating capacity, its business scope and geographic coverage do not fully align with the group's current priorities.
GOGOX believes that, on the one hand, the disposal will enable the group to streamline its market layout and reallocate management attention and resources to areas more strategically relevant to future development. At the same time, the reduction in administrative burden and structural complexity is expected to enhance the group's flexibility and operational focus. On the other hand, the disposal will allow the target company to operate under a new shareholder, which may be better positioned to devote targeted resources and flexibility to its business, benefiting the target company's future growth.
After GOGOX released this announcement, some media misinterpreted it as "GOGOX exiting the mainland market." In response, GOGOX issued a statement on October 20 saying that the aforementioned expression was seriously inconsistent with the facts of the company's announcement. On the same day, GOGOX issued a supplementary announcement reiterating that "the disposal will not affect the services provided by the target group to its users, customers and logistics partners in China, and the relevant services will continue normally in the ordinary course of business."
GOGOX stated that this transaction is only an adjustment at the equity level, merely a change in the shareholder structure of the mainland operating entity, and does not involve the closure, liquidation, deregistration or termination of operations of the mainland business. This transaction does not change the legal personality of the mainland operating entity, and all service agreements signed between the platform and various users and drivers remain valid. After the transaction is completed, the GOGOX brand and related intra-city freight network platform will continue to deepen its presence in the Chinese mainland market under the buyer's ownership and support, continuously providing services to users and driver partners.
Market Value Below 100 Million HKD, Market Share Continues to Decline
With the mainland business now handed over to others, the board of GOGOX proposed changing the company's Chinese name to "GOGO Technology," while the English name remains "GOGOX Holdings Limited."
The board of GOGOX stated that after the completion of the aforementioned transaction, the group will no longer operate any business in China under the "GOGOX" brand, and the group's business will shift to focusing on Hong Kong and other overseas markets, operating under the "GOGOX" brand in those markets. Therefore, the board believes that the existing Chinese name no longer reflects the group's business and future direction, and retaining the name may confuse shareholders, potential investors and the public about its business.
The new Chinese dual foreign name "GOGO Technology" better reflects the group's business after the completion of the transaction, giving the company a clearer corporate identity and aligning with the "GOGOX" brand used in markets outside the mainland.
GOGOX emphasized that the proposed change of company name will not affect any rights of shareholders or the group's daily business operations or financial condition, and that the move is in the overall best interests of the company and its shareholders.
Radar Finance learned from GOGOX's official website that its predecessor was the 58 Suyun App launched in September 2014. The application is a short-distance freight trading service platform that uses urban short-distance freight as an entry point, enabling a full-process transaction closed loop based on user location ordering, driver system dispatch, online payment and service evaluation.
It is worth mentioning that the creator of this App, Chen Xiaohua, is also a member of the founding team of 58.com. Tianyancha information shows that 58.com Inc. still holds 35.93% of GOGOX's shares.
In August 2017, 58 Suyun merged with Gogovan, a short-distance freight service platform focused on Hong Kong and overseas markets, and officially changed its name to "GOGOX" one year later. By 2019, GOGOX's business scope had covered 5 countries and regions, over 20 million registered shippers in more than 340 cities, and the number of registered drivers on the platform reached 3.6 million.
Tianyancha shows that in June 2022, GOGOX successfully listed on the Hong Kong stock market, enjoying great glory for a time. Despite the halo of being the "first stock in intra-city freight," GOGOX has been "retreating step by step" in subsequent competition with rivals such as Huolala and Didi Freight.
In the prospectus disclosed before listing, GOGOX cited Frost & Sullivan data stating that it was the third-largest online intra-city logistics platform in the Chinese mainland, with a market share of 3.2%, ranking behind participants with market shares of 52.8% (Huolala) and 5.5% (Didi Freight).
But by 2025, according to Frost & Sullivan data cited in Huolala's prospectus, based on closed-loop freight GTV, GOGOX's share in the mainland market had shrunk to 0.5%, while Huolala and Didi Freight had increased to 61% and 12.4% respectively.
Along with the sharp decline in market share, GOGOX has also suffered a "cold shoulder" in the capital market. At its peak, GOGOX's market value once exceeded 10 billion Hong Kong dollars, but as of the close on October 21, the company's share price was only 1.12 Hong Kong dollars per share, with a market value of less than 100 million Hong Kong dollars.
Still Unprofitable Since Listing, Losses Exceed 2.7 Billion Yuan in Less Than Five Years
While the company's share price continues to languish, GOGOX's performance has also been hardly impressive. Radar Finance found that even before the company officially listed on the Hong Kong stock market, GOGOX had already been mired in losses for many consecutive years. From 2022 to the first half of this year, GOGOX's cumulative net loss attributable to shareholders exceeded 2.7 billion yuan.
Data from Tonghuashun iFinD shows that in the year of listing, GOGOX achieved revenue of 773 million yuan, up 17.01% year on year; it recorded a net loss attributable to shareholders of 1.205 billion yuan, an increase of 38.1% year on year. From 2023 to 2024, GOGOX's revenue continued to decline, falling all the way to 660 million yuan; during the same period, the company's net loss attributable to shareholders was 1.1 billion yuan and 193 million yuan respectively.
By 2025, GOGOX's revenue stopped falling, edging up 1.58% year on year to 671 million yuan, and it recorded a net loss attributable to shareholders of 161 million yuan, narrowing by 16.32% from the previous year.
However, GOGOX's profitability has not been significantly restored. According to Tonghuashun iFinD data, in 2025, GOGOX's sales gross margin was 28.12%, down about 5.01 percentage points from 33.13% in 2024. Entering 2026, GOGOX's gross margin has rebounded somewhat, with the first-half gross margin increasing by about 1.5 percentage points year on year to 29.9%.
Yet GOGOX still has not successfully crossed the profitability inflection point. In the first half of this year, the company achieved revenue of 293 million yuan, down 10.86% year on year; during the period, it recorded a net loss attributable to shareholders of 71 million yuan, narrowing by 37.29% year on year. Among this, the platform services segment, the cornerstone of the company's business, reached a total transaction value of 411 million yuan in the reporting period and generated revenue of 46 million yuan, down 27% from the same period last year.
In response, GOGOX explained that the decrease in this revenue was mainly related to intensified competition in the Chinese mainland market and a shift in strategic decisions aimed at optimizing the company's service offerings and improving profitability. During the same period, the enterprise services segment served more than 78,900 enterprise clients cumulatively, with the segment's total platform transaction value reaching 200 million yuan and contributing revenue of approximately 204 million yuan. Although down 13% year on year, it still accounted for the largest share of the group's total revenue (69.6%).
In addition, thanks to strong performance in Hong Kong and overseas markets, GOGOX's value-added services segment generated revenue of 43 million yuan in the first half, a sharp year-on-year increase of 36.9%, accounting for 14.7% of the group's total revenue.
By region, in the first half of this year, GOGOX's revenue from Hong Kong and overseas markets was approximately 249 million yuan, accounting for as much as 85% of the company's total revenue; during the same period, revenue from the mainland market was only 44 million yuan, down 35.7% from the same period last year, significantly dragging down the company's revenue performance.
On the expense side, in the first half of this year, GOGOX's selling and marketing expenses were approximately 38 million yuan, down 10.2% year on year. The decrease was mainly due to reduced incentives for platform service transaction users and reduced promotion and advertising expenses. During the same period, the company's general and administrative expenses decreased by 10.6% from 75 million yuan in the first half of last year to 67 million yuan, mainly due to a reduction in employee benefit expenses (including share-based compensation). In addition, the company's R&D expenses in the first half were approximately 9 million yuan, down sharply by 84.2% year on year.
After this sale of the mainland business, can GOGOX, which plans to change its name to "GOGO Technology," cross the profitability inflection point going forward? Radar Finance will continue to pay attention.
Comments