Yusheng Holdings Limited, operating under the brand "Taocheche" and claiming to be China's largest used car trading platform, submitted its listing application to the Hong Kong Stock Exchange on May 6. The company aims for a main board listing with Citigroup serving as the sole sponsor.

Citing data from Frost & Sullivan, Taocheche stated in its prospectus that it ranked first among Chinese used car trading platforms by gross merchandise volume in 2025, capturing a 3.8% market share. To address structural challenges in China's used car industry—including market fragmentation, non-standardized transaction processes, and inadequate customer service—the company developed TCN (Taocheche Cooperative Network), a proprietary data-driven intelligent operational framework that integrates online and offline experiences.

Established in June 2018 as a used car platform launched by auto finance transaction platform Bitauto, Taocheche reported rapid growth to become an industry leader. By the end of 2025, cumulative transactions on the platform exceeded 190,000 vehicles. The company built an omnichannel network integrating 62 offline sales centers with 9,294 designated display spots nationwide—the largest scale of both sales centers and display spots in China. Simultaneously, leveraging new media channels, Taocheche developed an online platform that drove monthly active users to over 13 million by December 31, 2025.

Financially, Taocheche demonstrated revenue growth without corresponding profitability. From 2023 to 2025, revenue increased from 4.428 billion yuan to 6.662 billion yuan, representing growth exceeding 50% over two years. Gross profit rose from 417 million yuan to 679 million yuan, with gross margins of 9.4%, 10.8%, and 10.2% respectively.

Contrasting with revenue growth, the company reported expanding losses of 695 million yuan, 573 million yuan, and 916 million yuan during the reporting period, with net loss rates of 15.7%, 10.4%, and 13.8%. Adjusted net losses were 243 million yuan, 194 million yuan, and 205 million yuan respectively.

Revenue streams comprise used car retail business, vehicle wholesale operations, and platform services. Used car retail accounted for over 60% of total revenue throughout the reporting period, generating 2.856 billion yuan, 3.785 billion yuan, and 4.355 billion yuan respectively, representing 64.5%, 69.2%, and 65.4% of total revenue. Vehicle wholesale business contributed 903 million yuan, 669 million yuan, and 1.194 billion yuan, accounting for 20.4%, 12.2%, and 17.9% of revenue.

As of December 2025, Taocheche held approximately 235 million yuan in cash and cash equivalents against net current liabilities of 5.205 billion yuan, with a debt-to-asset ratio of 259.5%. Current liabilities primarily consisted of redeemable liabilities and convertible notes. The prospectus warned that the company may not achieve or maintain profitability in the future, with net current liabilities potentially creating liquidity risks that could limit operational flexibility and business expansion capabilities.

Despite ongoing losses, Taocheche boasts prominent shareholders including Bitauto, Tencent, and JD.com. Pre-IPO, CEO Jiang Dong held approximately 11.53% of shares with 23.61% voting rights. Parent company Bitauto held about 44.23% ownership, delegating 60% of its voting rights to Jiang Dong, making him the controlling shareholder with core decision-making authority.

The 54-year-old CEO holds a bachelor's degree in mariculture from Dalian Ocean University. Before joining Taocheche, Jiang served as senior vice president at CAR Inc. from January 2008 to January 2010, and as deputy general manager at China Grand Automotive Services Group from February 2011 to March 2015. He held key positions at Bitauto since March 2015, including executive director from September 2017 to March 2026, COO from June to December 2017, president from December 2017 to February 2022, and co-president from March 2022 to March 2026.

Tencent holds 17.49% through various entities, while JD.com's Ambilight Ruby holds 2.74% and Bitauto CEO Zhang Xu'an holds 2.2% personally. Taocheche completed five financing rounds totaling over 4 billion yuan, with the latest round in February 2026 valuing the company at $1.002 billion.

The prospectus highlighted business susceptibility to industry and economic conditions, with challenges in the automotive ecosystem potentially creating negative impacts. The company cautioned that rapid growth may not indicate future performance, and continued expansion could challenge management's ability to maintain profitability.

Additional risks include high customer concentration, with the top five customers accounting for 22.5% of 2025 revenue. Largest customer Bitauto contributed 15.3%, creating related-party transaction risks. The company also faces ongoing legal proceedings, including a trademark infringement and unfair competition lawsuit filed by Alibaba Group regarding previous use of marks containing "淘车," "taoche.com," and "TAOCHE."

Alibaba's claims, filed in March 2025, sought to stop Taocheche from using its former business name "淘车," cease using contested identifiers, pay 10 million yuan in damages and expenses, and publish clarification statements. A first-instance judgment on March 31, 2026, ordered cessation of using business names containing "淘车," prohibited use of contested identifiers, and required payment of 4.5 million yuan in damages and reasonable enforcement costs while rejecting Alibaba's request for clarification statements. Taocheche filed an appeal with the relevant court on April 8, 2026.