Collaborating with CAOCAO INC to open up a new scene for shared transportation, what are the highlights of the strategic cooperation with BUTONG GROUP (06090)?

On June 18, 2026, BUTONG GROUP (06090) and CAOCAO INC (02643) officially signed a strategic cooperation framework agreement. According to the cooperation arrangement, the two parties will focus on improving children's travel safety levels, enhancing children-friendly transportation service experiences, and deploying solutions for children safety seats in enterprises' travel services, interconnecting membership systems, and in intelligent travel scenarios, as well as cooperating on technology and product synergy in multiple levels. Essentially, this is a collaborative exploration towards the future of family travel experience: for CAOCAO INC, introducing solutions for children safety seats will help improve the experience of parent-child family travel services further; for BUTONG GROUP, this cooperation will open up the imagination space for its BeBeBus children safety seat solutions from family-owned vehicle scenarios to shared travel, intelligent travel, and even future Robotaxi scenarios. Policy-driven rigid demand, coupled with changes in the travel scenario, two driving forces promote cross-border cooperation. Behind this strategic cooperation, policies are driving the children safety seat industry to embrace a market worth billions. Public information shows that road traffic injuries are the second leading cause of death for children in China. According to data from the Ministry of Public Security, the percentage of child injuries and deaths caused by the lack of safety seats is as high as 94%. WHO points out that correctly using safety seats can reduce infant mortality risk by 70%. However, the popularity of children safety seats in China has been low for a long time, far below developed countries like Europe and America. In recent years, there has been an increasing focus on child passenger safety at the policy level. Many areas, such as Shenzhen and Fujian, have enacted regulations that mandate the use of certified children safety seats for children under 4 years old when traveling, with fines imposed on violators. In July 2025, the new national standard GB 27887-2024 for children safety seats was officially implemented, with grouping standards changed from weight to a more scientifically height index. It now stipulates that children under 15 months must be installed rear-facing and includes key upgrades such as side-impact protection. Driven by compliance requirements, the total retail sales of children safety seats in China reached 6.02 billion yuan in 2025, a year-on-year increase of 10.1%. With regulations continuously maturing, the potential market size is expected to show positive growth trends. However, the value of this cooperation goes beyond product adaptation driven by policies. What is more strategic and forward-thinking is that the two parties have formed a joint research and development group, planned to carry out forward-looking explorations around emerging scenarios such as shared travel and Robotaxi. Currently, the global Robotaxi industry is crossing the threshold into commercialization and entering an accelerating phase of scaled operations. Chinese companies like LuobukuaiPao are going overseas to places like Dubai and Abu Dhabi, while Waymo and Tesla are accelerating the expansion of all-weather services in the United States. At the same time, the industry competition focus has shifted from "unmanned" technological capabilities to comprehensive operational capabilities covering vehicle dispatch efficiency, user travel experience, and other indicators. The trend of integration between traditional automotive companies and technology companies is becoming increasingly apparent. With autonomous driving as a core strategic direction, supported by the full-chain capabilities of the Geely ecosystem and solid operational capabilities, CAOCAO INC has become one of the fastest players in China in the commercialization of Robotaxi. Currently, CAOCAO INC has deployed a fleet of one hundred Robotaxi vehicles in Hangzhou, establishing the world's first "green intelligent pass island" integrated with functions such as automatic battery exchange and intelligent dispatch, providing full-process operational support for the fleet. In March 2026, more than 3600 virtual boarding and drop-off points were launched in Hangzhou's Binjiang and Xiaoshan central areas, achieving full coverage of core roads, office buildings, and residential areas entrances and exits, further accelerating the scale commercial operations. In April of this year, China's first native developed Robotaxi prototype was launched, with the CAOCAO INC customized version planned for mass production in 2027 for commercial operations. CAOCAO INC has formed a RoboX ecosystem capability consisting of "intelligent custom vehicles + intelligent driving technology + intelligent operations," becoming one of the few technology travel platforms globally with all the essential elements for Robotaxi. The policy-driven rigid demand, coupled with the rapid evolution of autonomous driving technology, multiple factors together make this cross-border cooperation an inevitable choice. With its leading position in the sub-segment track and solid product strength, BUTONG GROUP is an important target to capture this dual dividend. High-end family technology brand, exploring children-friendly travel service upgrades As an emerging family lifestyle technology company, BUTONG GROUPs brand BeBeBus targets new-generation parents pursuing quality, smart design, and practical functionality. As of now, the BeBeBus product portfolio covers various family life scenarios such as travel, sleep, feeding, and hygiene care, gradually expanding towards a more comprehensive range of family life product applications. With the product proposition of "high quality, high aesthetics, high technology," BUTONG GROUP continuously refines its product aesthetics while investing in technological research and development, aiming to create a safe, intelligent, and comfortable family travel experience. For example, take the BeBeBus children safety seat: in terms of materials, the product uses the standard Cobra memory foam, easy-care waterproof fabrics, and DuPont foam from the automotive industry, combining impact resistance, durability, and easy cleaning characteristics. In terms of intelligence, the seat is equipped with an intelligent system that automatically rotates when the car door opens, allowing parents to easily carry their children in and out. Through 360-degree intelligent sensing technology, the seat can automatically adjust angles when children fall asleep, reducing pressure on the neck and head to a safe level. The seat supports mobile application connectivity, and will issue intelligent alerts when parents forget their children in the car. As of December 31, 2025, the Group has accumulated 223 domestic registered patents and 19 international registered patents, establishing a full chain of intellectual property rights covering materials, processes, structural design, and intelligent sensing, continuously deepening its technological moat. Short-term order elasticity can be expected, AI empowers long-term growth narratives From a fundamental analysis perspective, this cooperation will bring multiple benefits to BUTONG GROUP at different time dimensions. In the short term, CAOCAO INC's network of nearly one million capacities provides BUTONG GROUP with real, high-frequency, and open urban travel scenarios. Calculating potential cooperation volumes based on the price of around 2000 yuan for the "BeBeBus" children safety seat on its e-commerce platform, the potential order volume could be worth billions, and significant order reserves will contribute to a steady cash flow. At the same time, the large-scale integration of products into travel scenarios also helps the brand achieve continuous user outreach through high-frequency exposure. Instead of just calculating the hardware order amount, it is worth paying more attention to whether the BeBeBus children safety seat solution can complete product adaptation, user experience validation, and service process refinement through shared travel scenarios to drive BUTONG GROUP from "family products" to "platform services." In the medium to long term, the incremental space provided by the Robotaxi scenario is even more substantial. According to CounterPoint Research, the global Robotaxi market size is expected to reach $168 billion by 2035, with a fleet size of 3.6 million vehicles. Even if only a small portion of this market share is captured, it would be enough to bring significant incremental demand for BUTONG GROUP. Furthermore, the AI strategy will further elevate the company's growth ceiling. It is understood that BUTONG GROUP is transitioning from a high-end family hardware provider to an AI-driven family lifestyle technology ecosystem platform. In 2026, BUTONG GROUP established "AI Empowering Difference" as the company's new mission, focusing on household applications and actively promoting the scenario integration, productization, and industrialization of AI. Specifically, the company will upgrade its core products (i.e., baby strollers, car safety seats, baby cribs, and baby feeding chairs) with AI and gradually extend to more intelligent products related to family life scenarios such as AI feeding and AI intelligent toys. At the same time, the new factory in Fenghua, Ningbo, is expected to start operations in the second half of 2026. The factory will build a digitalized, intelligent production system to provide production capacity guarantee for the scale-up of AI products. Overall, this cooperation will bring multiple benefits to BUTONG GROUP: significant order reserves in the short term; in the medium term, children-friendly travel services are expected to become an important direction for differentiated experiences on shared travel platforms; in the long term, the Robotaxi and intelligent travel scenarios will open up new growth spaces for BUTONG GROUP's AI family ecosystem. With the continuous implementation of the company's AI strategy, the enrichment of the product matrix, and the extension of the family life technology ecosystem to external scenarios such as shared travel, the market's growth logic for BUTONG GROUP is expected to shift from a single consumer brand to a composite growth narrative of "family AI scenarios + intelligent travel applications," with the valuation center likely to rise further.