New stock news | Taocar sent the Hong Kong Stock Exchange Main Board's account to a net loss of nearly 2.2 billion yuan in three years.

According to the disclosure of the Hong Kong Stock Exchange on May 6th, Yusheng Holdings Limited (referred to as Taocar) has submitted an application for listing on the main board of the Hong Kong Stock Exchange, with Citigroup as its exclusive sponsor. Company Profile The prospectus shows that Taocar is a leading Chinese platform for the trading of used cars and has developed the TCN (Taocar Co-operation Operating System) - a proprietary, data-driven intelligent operating framework that integrates online and offline experiences. According to Frost & Sullivan data, based on the total transaction amount in 2025, the company ranks first in the Chinese used car trading platform market, with a market share of 3.8%. Since its establishment in 2018, the company has rapidly grown in the Chinese used car industry, with cumulative trading volume on the platform exceeding 190,000 vehicles by 2025. The company has built a multi-channel network, integrating 62 offline sales centers and a total of 9,294 designated display locations as of December 31, 2025 - ranking first in the country in terms of sales centers and display locations; relying on a matrix of new media channels to build an online platform, driving the monthly active users (MAU) across all channels to surpass 13 million by December 31, 2025. At the same time, the company also has overseas sales centers in Dubai and Nigeria. Through a strong layout at Wuxi Online Offline Communication Information Technology Co., Ltd., the company has laid a solid foundation for continuous expansion in China and overseas. From 2024 to 2025, the company's revenue grew by more than 20%. With its integrated online-to-offline self-operating system, the company has aggregated a wide range of vehicle sources from individual and institutional sellers. During the reporting periods, the company's revenue primarily came from used car retail business, vehicle wholesale business, and platform services. In 2023, 2024, and 2025, the revenue from used car retail business accounted for 64.5%, 69.2%, and 65.4% of total revenue respectively, primarily driven by retail sales volume growth. The revenue from vehicle wholesale business accounted for 20.4%, 12.2%, and 17.9% of total revenue in 2023, 2024, and 2025 respectively. The fluctuation in wholesale revenue was mainly due to changes in wholesale sales volume. Financial Information The company's revenue for the fiscal years 2023, 2024, and 2025 were approximately RMB 4.429 billion, RMB 5.471 billion, and RMB 6.662 billion respectively. The company recorded a net loss of approximately RMB 0.696 billion, RMB 0.574 billion, and RMB 0.917 billion for the fiscal years 2023, 2024, and 2025 respectively. The company's gross profit margins were 9.4%, 10.8%, and 10.2% for the fiscal years 2023, 2024, and 2025 respectively. Industry Overview Since 2009, China has been the largest market for new car sales globally, providing a foundation for the used car trading market. According to Frost & Sullivan data, the second-hand car market in China had reached approximately RMB 1.3 trillion in 2025 and is expected to grow to RMB 2.0 trillion by 2030. In terms of total transaction amount and volume in 2025, China was the second largest used car market globally, behind only the United States, and also one of the fastest growing major markets worldwide. Used car trading platforms facilitate various types of transactions, such as B2C, C2C, and B2B, through unified rules, standardized tools, and end-to-end services. With the support of favorable policies and market dividends, the penetration rate of used car trading platforms in the Chinese used car market continues to rise. According to Frost & Sullivan data, the market size of the Chinese used car trading platform is expected to grow from approximately RMB 461.9 billion in 2026 to RMB 739.9 billion in 2030, with a compound annual growth rate of 12.5%. Based on the total transaction amount in 2025, the Chinese used car trading platform market remains highly fragmented, with the top five participants collectively owning only 14.5% of the market share. In 2025, the company ranked first in the Chinese used car trading platform market with a total transaction amount of RMB 15.5 billion (3.8% market share). Board of Directors and Executive Team Information The company's board of directors will consist of 9 directors, including 2 executive directors, 4 non-executive directors, and 3 independent non-executive directors. Ownership Structure As of April 26, 2026, Mr. Jiang, East Success Ventures Limited, and VehiclePro LP are a group of single largest shareholders of the company. Mr. Jiang has the right to exercise approximately 23.61% of the company's voting rights. The wholly-owned entity East Success Ventures Limited owned 3,257,246 common shares (approximately 18.24% of the voting rights of the company); VehiclePro LP (with East Success Ventures Limited as its general partner) owned 957,427 common shares (approximately 5.36% of the voting rights of the company). According to voting rights delegation arrangements, pending compliance with applicable listing rules (including any necessary company approvals, if applicable), Yixin is expected to delegate 60.00% of its voting rights to Mr. Jiang after completing the conversion of its preferred shares into common shares. Intermediary Team Exclusive sponsor: Citigroup Global Markets Asia Limited Company Legal Counsel: Hong Kong and US Law: Kirkland & Ellis Hong Kong LLP; China law and China data compliance law: Haiwen & Partners; Cayman Islands law: Harney Westwood & Riegels Legal Counsel to the Exclusive Sponsor: Hong Kong and US Law: Clifford Chance; China Law: Fangda Partners Independent Auditor and Reporting Accountant: KPMG Industry Consultant: Frost & Sullivan Consulting (Beijing) Co., Ltd. Shanghai Branch Compliance Advisor: Edward Cheung Capital Limited