Shengwei Era Hong Kong IPO Prospectus Expires, Cumulative Losses of Nearly 1.5 Billion Yuan Over Three and a Half Years

On March 11, according to information disclosed by the Hong Kong Stock Exchange, Shengwei Times Technology Co., Ltd. (“Shengwei Times”)'s Hong Kong IPO prospectus, submitted on September 11, 2025, has been valid for six months and will expire on March 11, 2026. CITIC Securities International is the sole sponsor.

According to previous prospectus disclosures, Shengwei Times is a provider of ride-hailing services within Chinese cities and intercity road passenger information services. Founded in 2012, Shengwei Times was formerly Beijing Shengwei Nanling Information Technology Co., Ltd., with Jiang Shengxi, a former vice president of UFIDA Network, as the founder. Currently, Shengwei Times offers ride-hailing, passenger transportation, digital and business solutions, and other services (mainly vehicle leasing).

Citing data from Frost & Sullivan, Shengwei Times ranks 14th in China’s ride-hailing market based on 2024 GTV. As of June 30, 2025, the company had undertaken 17 provincial-level digital road passenger projects across provinces, autonomous regions, and municipalities.

Financial data shows that in 2022, 2023, 2024, and the first half of 2025, Shengwei Times’ revenue was RMB 816 million, RMB 1.206 billion, RMB 1.594 billion, and RMB 903 million, respectively. Revenue has continued to grow, with a compound annual growth rate of 39.8% from 2022 to 2024.

However, rapid revenue growth has not translated into significant profits.

Net losses for the same periods were RMB 499 million, RMB 482 million, RMB 426 million, and RMB 90 million.

Over the three and a half years disclosed in the prospectus, Shengwei Times accumulated net losses of approximately RMB 1.497 billion. Adjusted net losses (non-IFRS measures) were RMB 50.53 million, RMB 17.76 million, RMB 40.55 million, and RMB 9.33 million.

Within total revenue, over 85% came from ride-hailing services. During the reporting periods, revenue from ride-hailing accounted for 86.2%, 85.3%, 88.9%, and 90.4%, respectively.

Additionally, in the first half of 2022, 2023, 2024, and 2025, Shengwei Times’ gross profit was RMB 54 million, RMB 86 million, RMB 56 million, and RMB 37 million, with gross profit margins of 6.6%, 7.1%, 3.5%, and 4.1%. However, the gross profit margins for ride-hailing services were only 2.9%, 1.2%, -0.2%, and 0.5%, dragging down the company’s overall gross margin.

Meanwhile, the gross profit margin for passenger transportation services has been gradually increasing, reaching 44.3%, 53.7%, 55.9%, and 68.9% in the same periods.

During the reporting periods, Shengwei Times’ net cash flow from operating activities was RMB -113 million, RMB 40.61 million, RMB -24.17 million, and RMB -17.54 million.

The company states in the prospectus that, with ongoing expansion of its ride-hailing business, it expects to continue recording operating and net losses in 2025, though gross profit and gross margin are expected to improve. The company anticipates it will only generate positive operating cash flow by 2027 and net profit starting from 2028.

The prospectus also discloses that Shengwei Times’ asset-liability ratio during the reporting periods was as high as 516.7%, 594%, 761.4%, and 844.3%. One reason for these high ratios is that Shengwei Times issued financial instruments with redemption rights to investors, which are fully recognized as liabilities under accounting standards.

According to the prospectus, Shengwei Times’ ride-hailing business model fundamentally depends on the Amap platform.

From 2022 to the first half of 2025, the total transaction value (GTV) generated through Amap accounted for 92.9%, 89.5%, 93.9%, and 94.5% of its total ride-hailing GTV.

The prospectus explicitly states that reliance on a few aggregation platforms is a significant operational risk for Shengwei Times.

Regarding shareholders, Alibaba Travel is the company’s largest shareholder.

In September 2016, Shengwei Times received a RMB 75 million Series A investment from Alibaba Travel, which acquired a 20% stake, making it the largest shareholder. Alibaba Travel continued to invest during the company’s Series A+ and B rounds.

Before the IPO, Jiang Shengxi, Wang Jiawei, Chengdu Yingchuang, Yingchuang Century, Yu Lang, Haidai Zhushui, Chen Shulin, Times Zhongcheng, and Times Xincheng formed a controlling shareholder group, collectively holding approximately 42.2% of voting rights. Jiang Shengxi directly owns about 20.67%, and Alibaba Travel’s stake is approximately 27.01%, remaining the largest shareholder. SoftBank China Capital holds a combined 10.72% stake through three entities—Ningbo SoftBank, Guiyang SoftBank, and Shanghai Minghe.