Following Geely's Cao Cao Mobility (2643.HK) listing in Hong Kong in late June, SAIC Motor (600104.SH) has accelerated capital market plans for its mobility unit. On October 28, Xiangdao Mobility (Shanghai) Technology Co., Ltd. ("Xiangdao Mobility") submitted its main board IPO application to the Hong Kong Stock Exchange, with CICC and Guotai Junan International as joint sponsors.

As China's fifth-largest ride-hailing platform operating under Didi's market dominance, Xiangdao Mobility seeks new capital market opportunities. Founded in April 2018 as SAIC's mobility subsidiary, the company provides ride-hailing services, vehicle leasing, sales, and Robotaxi operations - becoming China's first automaker-backed L4 Robotaxi operator.

According to Frost & Sullivan, Xiangdao Mobility ranked fifth nationally by 2024 gross transaction value (GTV), operating in 85 cities with 1.062 million registered drivers. The platform recorded over 600,000 daily orders and RMB5.5 billion GTV in 2024, targeting commercial Robotaxi operations by 2027.

The company's shareholder structure reflects strong industry synergy. Pre-IPO, SAIC and its subsidiaries hold 75.37%, with Alibaba (9988.HK) owning 6.47% and autonomous driving firm Momenta holding 5.29%. CATL (300750.SZ) holds 1.86% through its investment arm. Between December 2020 and April 2025, Xiangdao raised RMB1.585 billion across three funding rounds, achieving unicorn status after its August 2022 Series B.

Despite order growth from 147.3 million trips in 2022 to 223.3 million in 2024, Xiangdao faces heavy reliance on third-party platforms like Gaode and Didi, which accounted for 98.6% of orders in H1 2025. This dependence drove commission expenses to RMB442 million (70% of sales costs) in 2024, rising 23% YoY to RMB233 million in H1 2025.

While revenue grew at a 16.3% CAGR from RMB4.729 billion (2022) to RMB6.395 billion (2024), the company accumulated RMB1.792 billion net losses over three years. H1 2025 saw revenue decline 2.8% YoY to RMB3.013 billion, with net loss narrowing 45.9% to RMB115 million - bringing total losses to RMB1.907 billion in 3.5 years.

Cost-cutting measures reduced administrative expenses from RMB156 million (2023) to RMB116 million (2024), while R&D spending halved to RMB85.4 million. Employee benefits dropped consecutively from RMB425 million (2022) to RMB136 million in H1 2025 (-14.3% YoY), with salaries declining 12.1% to RMB97.4 million. Meanwhile, executive pay rose 10.5% YoY to RMB4.914 million in H1 2025, including CEO Ni Licheng's RMB969,000 compensation (+8.5% YoY).

Regulatory challenges persist, with over 100 penalties totaling RMB2+ million since 2022, mostly for unlicensed drivers/vehicles. In August 2025 alone, Xiangdao received a RMB30,000 fine for illegal operations in Shanghai and a RMB10,000 penalty in Ningbo.

As second-tier ride-hailing firms like Didi Chuxing (2559.HK), Ruqi Mobility (9680.HK), and Cao Cao Mobility face post-IPO share declines (up to 71.83%), Xiangdao's listing reflects industry-wide capital pressures. Notably, IPO proceeds will fund autonomous driving and Robotaxi development - potentially key to future profitability.