NewTimeSpace | Narrowing Losses and Platform Dependency Under Transformation: CaoCao Inc. (02643.HK) Struggles for a Breakthrough

On March 27, 2026, CaoCao Inc. (02643.HK) released its first annual report since its listing.

NewTimeSpace has learned that CaoCao Inc. achieved its first-ever quarterly profit, with losses narrowing significantly. However, beneath these highlight results, the "platform shackles" around the company’s neck remain heavy. For every RMB 100 in revenue, RMB 8.40 flows to aggregation platforms like Amap (Gaode), and the growth rate of customer acquisition costs is nearly double that of revenue.

The fourth-quarter profitability and narrowed losses failed to create much of a ripple in the capital market, with the share price falling rather than rising over the past two days.

Single-Quarter Profit Achieved, Liabilities Remain High

Public information reveals that CaoCao Inc., founded in 2015, is a ride-hailing platform incubated by the Geely Group.

In 2025, CaoCao Inc. achieved total revenue of RMB 20.2 billion, a year-on-year increase of 37.7%. The net loss was RMB 614 million, a sharp narrowing of 50.8% from the same period last year. The adjusted net loss margin decreased from 4.9% in the previous year to 2.5%.

Notably, CaoCao Inc. disclosed that its adjusted net profit for the fourth quarter of 2025 turned positive, marking the first quarterly profit since the company’s inception. In 2025, the company's gross margin rose from 8.1% in 2024 to 9.4%, and net cash from operating activities increased by 60.3% year-on-year to RMB 380 million.

According to the annual report, revenue during the reporting period was derived from mobility services (specifically ride-hailing) and vehicle sales. The company also sells vehicles to capacity partners, independent fleet operators, and individual drivers. Revenue from "other services" includes vehicle leasing, advertising, and technical services.

Financial data shows that mobility services remain the core business, generating RMB 18.56 billion and accounting for 92% of total revenue. Gross Transaction Value (GTV) increased by 38.2% year-on-year to RMB 23.4 billion.

CaoCao Inc. stated that this growth is primarily attributed to refined operations in existing cities—specifically providing relatively standardized, high-quality services through customized vehicles to increase market share.

Among other business segments, customized vehicles provided the company with vehicle sales revenue. Data shows that vehicle sales revenue jumped from RMB 870 million to RMB 1.42 billion, with over 15,000 units sold throughout the year, representing a year-on-year increase of 63.6%.

As of the end of 2025, CaoCao Inc. had deployed over 38,000 customized vehicles across 31 cities. The company noted that by defining products around operational scenarios and managing their full life cycle, the Total Cost of Ownership (TCO) per kilometer for some models has been reduced to approximately RMB 0.47.

As of December 31, 2025, the company’s services covered 195 cities, with 59 new cities added during the year.

Despite the strong operational performance, CaoCao Inc. remains under high debt pressure. As of December 31, 2025, total borrowings amounted to RMB 7.207 billion, with approximately RMB 5.5 billion in unused bank credit facilities from independent commercial banks. Total liabilities reached RMB 9.256 billion, current liabilities stood at RMB 7.289 billion, and net current liabilities amounted to RMB 4.241 billion.

In the capital market, the Q4 profit and narrowed losses failed to drive share price growth. Since its listing on the Hong Kong Stock Exchange on June 25, 2025, as of the close on March 31, 2026, CaoCao Inc. was quoted at HK$25.60, down 38.96% from its offer price of HK$41.94.

Accelerating Robotaxi Transformation; Planning to Deploy 100,000 Vehicles

NewTimeSpace has learned that CaoCao Inc.’s annual report highlighted a comprehensive acceleration of its Robotaxi transformation and steady global expansion. To date, the company has deployed over 100 Robotaxis, launched the world’s first "Green Intelligent Passage Island," and established a strategic partnership with the Abu Dhabi Investment Office to set up an overseas subsidiary.

In December 2025, CaoCao Inc. released its Robotaxi 2.0 solution and began deploying second-generation Robotaxis, exploring the transition from having a safety officer in the driver's seat to fully unmanned operations. The solution includes an intelligent fulfillment platform with unmanned service capabilities, the "CaoCao Zhixing" remote safety service platform, an intelligent asset management system, and a smart cockpit. This solution integrates the company’s operational strengths with smart cockpit and autonomous driving technologies to explore a "full-element" operational model.

CaoCao Inc. stated that on the operational front, it owns and operates the largest customized vehicle fleet in China, balancing experience and efficiency. The company has accumulated deep capabilities in fleet dispatching, asset management, user service, and compliance, forming a digital operational platform that can be rapidly migrated to Robotaxi scenarios.

The company further noted that it will continue to work closely with the Geely Group and business partners to accelerate the development of fully customized Robotaxis. This model is scheduled to debut this year, with plans to deploy a cumulative 100,000 units by 2030 and conduct commercial operations globally.

It is worth noting that Robotaxis currently require massive capital investment and are still in the initial stages regarding technical maturity, policies and regulations, and user acceptance.

At present, although CaoCao Inc. has narrowed its losses, it is still some distance from full profitability. Future funding pressure will pose a significant test for the company.

Severe Dependency on Aggregation Platforms Erodes Profitability

NewTimeSpace has learned that the commissions paid by CaoCao Inc. to aggregation platforms rose from RMB 1.046 billion in 2024 to RMB 1.565 billion in 2025, an increase of 49.6%.

This reliance on external traffic entry points caused the company’s sales and marketing expenses to soar to RMB 1.803 billion in 2025, a year-on-year increase of 47.5%—a growth rate significantly higher than that of revenue.

CaoCao Inc. previously disclosed in its prospectus that the proportion of orders coming from aggregation platforms rose from approximately 50% in 2022 to over 85% by 2024, creating a high level of dependency.

Looking at the longer term, between 2021 and 2025, the growth rate of commissions paid to aggregation platforms was approximately double the growth rate of mobility service revenue. Commissions as a percentage of revenue increased from 4% in 2021 to 8.4% in 2025. This means that for every RMB 100 collected, RMB 8.40 goes to platforms like Amap.

Data shows that over the past five years, the annual commissions paid to aggregation platforms by CaoCao Inc. grew from RMB 277 million to RMB 1.565 billion, a cumulative increase of approximately 465%, with a compound annual growth rate (CAGR) of about 54%. In contrast, mobility service revenue grew by a cumulative 166% over the same period, with a CAGR of about 28%.

This indicates that CaoCao Inc.’s current revenue growth remains highly dependent on purchasing external traffic and has yet to establish a sufficient "private traffic" moat. Consequently, its income is highly vulnerable to aggregation platforms; any adjustment in traffic strategies or hike in commission rates from these platforms will further erode the company’s profitability.

Overall, CaoCao Inc. has crossed the adjusted profitability inflection point, its customized vehicle strategy continues to reduce costs and increase efficiency, and its Robotaxi business possesses differentiated advantages backed by the Geely ecosystem. The positive turn in Q4 2025 earnings proves that its business model has "self-sustaining" potential.

However, with over 85% of orders dependent on aggregation platforms and the commercialization of the Robotaxi business still requiring time, it remains to be seen whether the company can execute its plans and achieve scaled profitability.

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