Yusheng Holdings, the parent company of secondhand car platform Taocheche, filed its prospectus with the Hong Kong Stock Exchange on May 6, seeking a main board listing. Citi is acting as the sole sponsor.
Founded in 2018 and known internationally as Taocars, Taocheche has built a cooperative network to address persistent issues in China’s used car market, including fragmentation, inconsistent transaction processes, and uneven customer service. Its proprietary framework, referred to as TCN, integrates online and offline operations through a data-driven system. The company said this approach standardizes transactions and supports scalable operations across the buying journey, offering customers a more consistent way to access used vehicles.
According to Frost & Sullivan, Taocheche ranked first among China’s used car trading platforms by gross merchandise value in 2025, with a 3.8% market share. The platform recorded RMB 15.5 billion (USD 2.3 billion) in GMV that year. From inception through December 31, 2025, cumulative GMV reached about RMB 70 billion (USD 10.3 billion), reflecting a compound annual growth rate of roughly 50% over seven years, according to the prospectus.
Transaction volume rose steadily over the past three years, reaching 105,937 in 2023, 139,504 in 2024, and 191,487 in 2025.
On the ground, Taocheche reported operating 62 self-run sales centers across China as of December 31, 2025, which it described as the largest offline network among peers. It also said it could deliver vehicles to customers in every city nationwide through its last-mile logistics system. In parallel, the company maintained 9,294 designated display spaces across the country.
Online, Taocheche has expanded through multiple digital channels. In 2025, it reported more than 13 million monthly active users across its ecosystem. Live streaming has become a key sales driver, supported by a team of over 190 staff stationed at sales centers. The company said transactions generated through live streaming grew about 156% between 2024 and 2025.
Taocheche counts Yixin Group and Tencent among its key backers. Yixin provides automotive financing solutions that integrate with Taocheche’s platform, while Tencent has supported the company with cloud infrastructure and artificial intelligence tools. Other investors include Sino-Italy Ningbo Ecological Park Holding Group and JD.com.
Financially, revenue increased from RMB 4.4 billion (USD 644.7 million) in 2023 to RMB 5.5 billion (USD 805.9 million) in 2024 and RMB 6.7 billion (USD 981.7 million) in 2025. Gross profit rose from RMB 417 million (USD 61.1 million) to RMB 588 million (USD 86.2 million) and RMB 679 million (USD 99.5 million) over the same period, with margins of 9.4%, 10.8%, and 10.2%, respectively.
Adjusted EBITDA, a non-IFRS measure, turned positive in 2024 at RMB 38 million (USD 5.6 million), before declining to RMB 9.2 million (USD 1.3 million) in 2025. The drop suggests that while the company has reached operating breakeven on an adjusted basis, profitability remains fragile.
Proceeds from the IPO will be used to expand sales centers in core domestic and overseas markets, strengthen marketing and brand capabilities, and invest in R&D, particularly in data analytics and AI. The company also plans to pursue acquisitions and allocate part of the funds to working capital and general corporate purposes.
This article was adapted based on a feature originally written by and published on IPO Zaozhidao. KrASIA is authorized to translate, adapt, and publish its contents.
Note: RMB figures are converted to USD at rates of RMB 6.82 = USD 1 based on estimates as of May 7, 2026, unless otherwise stated. USD conversions are presented for ease of reference and may not fully match prevailing exchange rates.