CAOCAO INC (02643): Hangzhou Youxing intends to acquire 100% equity of Weixing Technology for 225 million yuan.

CAOCAO INC (02643) announced that on December 30, 2025 (after trading hours), Hangzhou Youxing, a consolidated affiliate of the company, entered into (i) a Ji Di Equity Purchase Agreement with Zhejiang Ji Di, and (ii) a Mercedes-Benz Ride-hailing Equity Purchase Agreement with Mercedes-Benz Ride-hailing and Geely Holding. Under the agreements, Hangzhou Youxing agrees to purchase 50% equity in Starcan Technology from Zhejiang Ji Di and Mercedes-Benz Ride-hailing respectively, for a total cash consideration of RMB 225 million. Upon completion of the acquisition, Starcan Technology will become a wholly-owned subsidiary of Hangzhou Youxing. The announcement stated that Starcan Technology operates under the brand "Yao Travel", providing luxury travel experiences including business VIP car services, long-term dedicated driver services, brand event travel services, airport transfers, and intercity travel services with professional butler services. The acquisition, by combining ride-hailing services with high-end VIP services, strengthens the group's core travel platform. Incorporating business VIP cars and luxury vehicles into the service system will enable the group to expand its high-end travel product line, enhance the platform's vehicle configuration, attract a wider range of high-end customers, and therefore increase the platform's overall customer unit price and user lifetime value. Enterprise services are an important component of the group's business, characterized by stable demand, high average prices, and high gross profit margin per unit. Starcan Technology's rich enterprise client resources bring cross-selling opportunities, helping the group rapidly expand its enterprise client base, consolidate its enterprise business, improve operational efficiency, enhance data integration, and strengthen long-term profitability. Furthermore, the synergies between enterprise and individual client groups can drive bidirectional flow and value conversion, thereby increasing customer loyalty. In addition, Starcan Technology has a comprehensive luxury car operation system, high-end customer resources, and mature concierge and vehicle management systems in Hong Kong, providing a solid platform for the group's internationalization strategy to support its global expansion.