CaoCao (2643) H1 2026 earnings summary

Executive summary

• Revenue grew 9.0% year-over-year to RMB10.34 billion for H1 2026, driven by mobility services and user growth.

• Gross profit margin improved to 9.0% from 8.7% year-over-year, reflecting operational efficiency.

• Net loss narrowed by 17.5% to RMB379.8 million; adjusted net loss (non-IFRS) was RMB306.8 million.

• Mobility service revenue rose 13.9% to RMB9.8 billion, while vehicle sales revenue declined 60.3% amid market competition.

• Expansion into 20 new cities, now covering 215 cities, and internationalization efforts in Hong Kong and UAE, with significant investments in AI and Robotaxi.

Financial highlights

• Gross profit: RMB928.4 million; gross margin: 9.0%.

• Adjusted EBITDA (non-IFRS) increased to RMB159.9 million; adjusted EBITDA margin stable at 1.5%.

• Net cash from operating activities: RMB66.0 million, down from RMB338.4 million year-over-year.

• Selling and marketing expenses increased 10.6% to RMB930.2 million; general and administrative expenses fell 36.8% to RMB292.2 million.

• Cost of sales rose 8.6% to RMB9.41 billion, mainly due to higher driver incentives and battery service fees.

Outlook and guidance

• Focus on sustainable growth, profitability, and international expansion, leveraging AI and autonomous driving.

• Robox strategy launched to build an AI mobility platform, with plans for further Robotaxi deployment domestically and overseas.

• Continued collaboration with Geely Group and partners to accelerate L4 Robotaxi development.

• Ongoing expansion into new cities and enhancement of service quality and operational efficiency.