Chinese Ride Hailer OnTime Files for IPO Again, Expects to Lose Money for Three More Years(Yicai) March 27 -- OnTime, a leading Chinese ride-hailing and robotaxi services provider, has refiled for an initial public offering in Hong Kong and forecast three more years of losses.
OnTime’s operator Chenqi Technology did not disclose how much it aims to raise from the IPO in documents submitted to the Hong Kong Stock Exchange on March 25. Set up by carmaker by GAC Group and Tencent Holdings in 2019, the firm made its first IPO application last August. That filing expired last month.
OnTime’s net loss widened 11 percent to CNY692.8 million (USD95.9 million) in 2023, while revenue jumped 58 percent to CNY2.2 billion (USD304.4 million), Chenqi Technology disclosed. The Guangzhou-based firm also said it does not expect to turn a profit for the three more years.
“Our growth in revenue may not be able to fully cover the various costs and expenses incurred in the near future, and we expect to continue incurring net loss and net operating cash outflow in 2024, 2025, and 2026,” it said.
OnTime will remain dedicated to cementing the foundation for long-term success instead of pursuing short-term financial returns, it added.
OnTime mainly offers ride-hailing services in the Guangdong-Hong Kong-Macao Greater Bay Area, where its market share exceeded 45 percent last year. It completed 97.7 million orders last year, up 47 percent on the previous year, with a total transaction value of CNY2.7 billion.
About 40 percent of the IPO proceeding will be used to research and develop self-driving technologies and robotaxi services, 20 percent to upgrade travel services and enhance operational efficiency, and 20 percent to boost market share, while the rest will go on investments, mergers and acquisitions, and general purposes. That is in line with its first application.
GAC and its parent company own 35.2 percent of OnTime, while Tencent holds an 18.4 percent stake. State-owned Guangzhou Public Transport and autonomous driving startup Pony.ai have 5.7 percent and 5.3 percent, respectively.
Editors: Dou Shicong, Futura Costaglione
