New Stock News | Bocar.com Submits Second Application to Hong Kong Stock Exchange, with Market Share in Domestic Auction Market for Salvage Cars Exceeding 30% in 2024

According to the disclosure by the Hong Kong Stock Exchange on September 30, Boche Holding Limited (Cayman) (referred to as "Boche Holding") has submitted its application to the main board of the Hong Kong Stock Exchange, with CITIC SEC and FOSUN INTL Capital as its joint sponsors. Previously, the company submitted its listing application to the Hong Kong Stock Exchange on February 21. The prospectus shows that Boche Holding is China's largest accident car auction platform, serving as a mediator connecting upstream accident car sources with downstream car buyers. According to data from Zhoushi Consultancy, based on trading volume in 2024, the company ranks first in China's accident car auction industry with a market share of approximately 31.4%. With the valuation infrastructure and the integrated auction model of Wuxi Online Offline Communication Information Technology Co., Ltd., the company connects upstream accident car sources (mainly insurance companies) with downstream accident car buyers (mainly certified repair shops and licensed car dismantling factories) through its accident car auction platform. In addition to accident car auctions, the company also connects upstream used car sources with downstream used car buyers, facilitating used car transactions through auctions. According to data from Zhoushi Consultancy, based on auction volume in 2024, the company is the third-largest B2B used car auction platform in China (with a market share of approximately 12.0%), and the B2B used car auction market accounted for approximately 8.0% of the total used car trading volume in 2024. As of December 31, 2024, China has the world's largest automobile market with approximately 350 million vehicles. Insurance companies actively use auctions to dispose of accident cars in order to obtain fair market value, standardize disposal procedures, and improve overall claims efficiency. Auctions are favored for their well-established standardized processes in this regard. The auction volume of accident cars in China increased from approximately 205,000 vehicles in 2020 to 373,000 vehicles in 2024. In comparison, the auction volume of accident cars in the United States in 2024 was close to seven million vehicles, approximately 20 times that of China's auction volume, while its car ownership was approximately 290 million vehicles in 2024, similar to China. This significant difference highlights the huge growth potential of China's accident car auction industry. Looking ahead, factors such as the aging of automobile ownership, rising maintenance costs, increased claims frequency due to the popularity of new energy vehicles, increased direct marketing efforts by insurance companies, rising labor costs, and increased awareness of car insurance will drive the growth of China's accident car auction industry. During the reporting period, Boche Holding's customers mainly included certified repair shops, licensed car dismantling factories, authorized car dealers, and independent used car dealers. The company's suppliers mainly include vehicle suppliers from dealer groups in the automotive sales business and third-party service providers such as vehicle towing and rescue services. In terms of risks, the prospectus notes that the company purchases most of its accident cars and used cars from a limited number of sources. If these primary sources encounter any losses, or if there is any significant interruption in the company's relationship with these sources, it will have a significant adverse impact on the company's business, financial condition, and operating performance. Additionally, there may be a trend towards disintermediation in the future of the accident car and used car auction industry. Financially, for the seven-month periods ending on July 31 in 2022, 2023, 2024, and 2025, Boche Holding's revenues were approximately 388 million, 518 million, 526 million, and 290 million Chinese yuan, respectively; during the same periods, the losses for the year were approximately 180 million, 121 million, 36.438 million, and 55.596 million Chinese yuan, respectively.