Analysis of Strategic Layout and Valuation Impact of Caocao Mobility's Acquisition of Weixing Technology

According to the latest market information, Caocao Mobility acquired 100% equity of Weixing Technology Co., Ltd. through its consolidated affiliated entity Hangzhou Youxing Technology Co., Ltd. with a total cash consideration of

[1][2][3]. Weixing Technology was originally 50% owned by Zhejiang Jidi (an affiliated entity of Geely Holding) and Mercedes-Benz Mobility Group respectively. After the acquisition is completed, it will become a wholly-owned subsidiary of Caocao Mobility [1][2][3].

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Item	Details
Acquirer	Hangzhou Youxing Technology Co., Ltd. (Consolidated Affiliated Entity of Caocao Mobility)
Target Asset	100% Equity of Weixing Technology Co., Ltd.
Transferors	Zhejiang Jidi, Mercedes-Benz Mobility Group
Acquisition Price	Total Cash Consideration of RMB 225 million [1][2][3]
Payment Method	Cash
Post-transaction Structure	Weixing Technology becomes a wholly-owned subsidiary of Hangzhou Youxing

• Zhejiang Jidi
  : An affiliated entity of Geely Holding, representing Geely Group’s strategic layout in high-end mobility services [1][3]
• Mercedes-Benz Mobility
  : Mobility service division of Mercedes-Benz Group, reflecting the luxury car brand’s layout in the mobility track [1][3]

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:<br>
The original equity structure of Weixing Technology shows it was a joint venture mobility platform between Geely and Mercedes-Benz, focusing on high-end mobility services. This acquisition means:

1. Caocao Mobility gains high-end mobility operation rights
   <br>
   • Integrate high-end vehicle resources (such as Mercedes-Benz S-Class, E-Class, etc.) that Weixing Technology may have<br>
   • Acquire operational experience in high-end business mobility services<br>
   • Supplement Caocao Mobility’s service capabilities in the mid-to-high-end market

2. Simplify equity structure and improve decision-making efficiency
   <br>
   • The original three-party joint ownership structure was complex, requiring coordination among multiple parties<br>
   • After the acquisition, Caocao Mobility holds 100% ownership, making operational decisions more efficient<br>
   • Facilitate unified strategic planning and resource allocation

According to online search information [2], Caocao Mobility released its

Robotaxi global strategy on December 3, 2025:

• Plan to establish
  five major operation centers
  globally in the next ten years
• Promote Robotaxi services to
  100 cities
  <br>
• Achieve cumulative
  RMB 100 billion GTV
  (Gross Transaction Value) [2]

:<br>
The , and that Weixing Technology may have will be an important supplement to Caocao Mobility’s Robotaxi strategy in the high-end market.

Backed by Geely Holding Group, Caocao Mobility is building a

three-dimensional mobility ecosystem [2]:

Smart Custom Vehicles (Geely E-E Interconnection 448 swap stations)
         ↓
Intelligent Driving Technology (partners like Qianli Zhijia)
         ↓
Intelligent Operation System (Caocao Mobility + Weixing Technology)
         ↓
Three-dimensional Mobility Network (Robotaxi + eVTOL + Low-orbit Satellites)

This acquisition brings Weixing Technology from an affiliated entity of Geely into the Caocao Mobility system, which is an important step in the

.

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Indicator	Data
Caocao Mobility IPO Valuation	Approximately HK$9.5 billion (listed in June 2025) [4]
Current Market Capitalization	Approximately HK$22.8 billion (Hong Kong Stock Code: 02643.HK) [7]
Acquisition Amount	RMB 225 million ≈ HK$245 million [1][2][3]
Acquisition Amount/Market Cap Ratio	Approximately 1.1%

• Based on a market capitalization of HK$22.8 billion, the HK$245 million acquisition corresponds to approximately
  1.1% dilution effect
  <br>
• For Caocao Mobility’s current valuation level, the
  impact is relatively limited
  <br>
• The market’s reaction to this acquisition may be more reflected in
  strategic synergy expectations
  rather than short-term financial impacts

:<br>

• If Weixing Technology has stable high-end mobility business, it can directly increase Caocao Mobility’s revenue<br>
• High-end mobility services usually have higher gross margins than ordinary ride-hailing services, which can improve the overall profit structure

:<br>

• Integrated operation scale effect can reduce per-vehicle operation costs<br>
• Unified technology platform and dispatch system can improve efficiency

:<br>

• If Weixing Technology’s annual revenue reaches RMB 100-200 million, and Caocao Mobility can achieve revenue growth through integration, then the acquisition price of RMB 225 million corresponds to a
  PS ratio of approximately 1-2 times
  <br>
• This is a
  relatively reasonable valuation level
  in the mobility technology field

• First-mover advantage in the high-end mobility market<br>
• Resource precipitation and customer base of the Mercedes-Benz brand<br>
• Occupy a more favorable position in the commercialization process of Robotaxi

• Complete coverage from mid-to-low-end ride-hailing to high-end business mobility<br>
• Meet the needs of consumers at different levels<br>
• Enhance Caocao Mobility’s
  ecosystem value story
  in the capital market

According to CITIC Securities’ research report, after autonomous driving technology matures, Robotaxi may reduce ride-hailing capacity costs by

[2]. The high-end fleet resources of Weixing Technology can provide support for Caocao Mobility in both and .

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• Caocao Mobility is still in a
  loss-making state
  [4]; the acquisition requires cash expenditure, which may increase cash flow pressure<br>
• The cash expenditure of RMB 225 million needs to be evaluated against the company’s capital adequacy

• There may be differences between the original Mercedes-Benz gene of Weixing Technology and the Geely system culture of Caocao Mobility<br>
• The operation modes of high-end mobility services and ordinary ride-hailing need to be effectively integrated<br>
• Unification of customer groups and brand positioning takes time

The ride-hailing industry has entered the

stage from the incremental market [2]:<br>

• As of June 2025, the scale of China’s ride-hailing users reached
  511 million
  , with a year-on-year growth of only
  1.7%
  [2]<br>
• Capacity continues to grow, leading to
  continuous price wars
  among platforms<br>
• The rise of aggregated platforms has intensified
  price comparison competition
  [2]

Against this background, Caocao Mobility’s acquisition of Weixing Technology to break through into the high-end market is a

to cope with industry involution.

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(1-2 years):<br>

• Limited financial impact (1.1% of market cap), but
  significant strategic signal meaning
  <br>
• Enrich Caocao Mobility’s service matrix, extending from the mass market to the high-end market<br>
• Enhance the synergy effect of mobility assets within the Geely ecosystem

(3-5 years):<br>

• If integration is successful, high-end mobility business can become a new profit growth point<br>
• Accumulate
  high-end scenario operation experience
  for Robotaxi commercialization<br>
• Help Caocao Mobility achieve scale breakthroughs faster in its “Ten-Year, 100-City, 100-Billion” strategy

(5-10 years):<br>

• The combination of high-end mobility and autonomous driving technology may become Caocao Mobility’s
  differentiated competitive advantage
  <br>
• When the trillion-yuan Robotaxi market breaks out [2], an operation platform with high-end genes will occupy a more favorable position

:<br>

• Strategic layout is highly aligned with Caocao Mobility’s long-term development direction<br>
• The acquisition amount accounts for a small proportion, and risks are controllable<br>
• Enhances the integrity and differentiated advantages of Caocao Mobility in the mobility ecosystem

:<br>

• Limited short-term financial contribution, mainly reflected in strategic value<br>
• Need to observe integration effects and actual performance of high-end business

:<br>

• Intensified industry competition, and the high-end market may also face price pressure<br>
• Cash flow management capabilities are tested

For investors, this acquisition is more of a footnote to Caocao Mobility’s long-term layout in the Robotaxi track. Although it does not directly catalyze the stock price, it

:

1. The
   full-factor advantages of the Geely ecosystem
   are more obvious<br>
2. The
   full-scenario coverage from mass to high-end
   is more complete<br>
3. The
   path to Robotaxi commercialization
   is clearer

If Caocao Mobility can effectively integrate Weixing Technology’s resources and establish a differentiated advantage in the high-end market, its valuation is expected to get a

from the current level of approximately HK$22.8 billion during the acceleration of Robotaxi commercialization.

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[1] Beijing Business Daily - “Total Cash Consideration of RMB 225 Million, Caocao Mobility Acquires All Equity of Weixing Technology” (https://finance.sina.com.cn/jjxw/2025-12-30/doc-inheqyve9440882.shtml)

[2] Zhitong Finance Network - “Caocao Mobility (02643) Unlocks Today, Robotaxi Full-Element Ecosystem Becomes Long-Term Value Ballast” (https://finance.sina.com.cn/stock/hkstock/ggscyd/2025-12-29/doc-inhemmwr8176788.shtml)

[3] East Money Network - “Caocao Mobility: Total Cash Consideration of RMB 225 Million for Acquisition of All Equity of Weixing Technology” (https://wap.eastmoney.com/a/202512303605928253.html)

[4] 36Kr - “Going Public in Hong Kong, Becoming the ‘Hope of the Village’” (https://m.36kr.com/p/3611635080414208)

[5] 36Kr - “Is Algorithm No Longer King? Robotaxi Enters ‘Operation Knockout’” (https://m.36kr.com/p/3581360799963525)

[6] Youjia - “Caocao Mobility, the Robotaxi Ambition Hidden Under the Geely Ecosystem: Is the True Value of the Second Place in the Industry Severely Undervalued?” (https://youjia.baidu.com/view/articleDetail/10193441008361278751)

[7] Sina Finance - “Year-End Review | Ride-hailing This Year: Drivers Seek to Break Low Prices, Platforms Bet on Robotaxi and Overseas Expansion” (http://news.sina.com.cn/o/2025-12-28/doc-inheihxr9168057.shtml)

[8] Harbour Business Observation - “Xiangdao Mobility Has Weak Market Share: Sustained Losses of Nearly RMB 2 Billion, Aggregated Platform Dependence and High Costs” (https://finance.sina.com.cn/stock/stockzmt/2025-12-02/doc-infzkftn2416148.shtml)

[9] Jinling API Data (Company Financial Data, Market Indicators, Valuation Analysis)