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Investment highlights

Overview of the Smart Mobility Market in China and the Greater Bay Area

Intelligent mobility encompasses innovative solutions for passenger vehicles such as online car-hailing services, ride-sharing platforms, online taxis, and Robotaxis. It utilizes technology to improve traffic efficiency, sustainability, and user experience. These services rely on digital platforms, offering convenient, personalized, and environmentally friendly travel options. Intelligent mobility integrates new technologies such as new energy technology, wireless communication, internet technology, big data analysis, and artificial intelligence, making transportation safer and more efficient.

According to a Frost & Sullivan report, smart travel platforms can provide customers with more efficient and convenient travel experiences. Users can book customized transportation services through smartphone applications and arrive at their destinations within minutes. Due to travel restrictions and reduced travel caused by the COVID-19 pandemic, the market size of smart travel services in China fluctuated from 2020 to 2022. With the lifting of travel restrictions, the smart transportation market in China is expected to embrace bright prospects. As public daily commuting resumes, demand for related services is also expected to pick up. With continuous progress in autonomous driving technology, Robotaxi will provide passengers with more economical and safe travel experiences, thereby driving the growth of China's smart transportation market.

As one of the five major urban agglomerations in China and one of the most economically developed regions, the Greater Bay Area has enormous potential for travel service demand. With the rapid development of cities within the region and the continuous increase in population, the Greater Bay Area's demand for efficient and convenient travel solutions is growing day by day. Innovative smart travel services have broad development prospects in this region, capable of providing residents and tourists with a higher quality travel experience.

Robotaxi Market Overview

Robotaxi is an autonomous intelligent mobility vehicle equipped with advanced Level 4 or Level 5 autonomous driving technology. This technology relies on a series of sensors for environmental perception and is supported by machine learning algorithms within the computer system for decision-making. The vehicle control system executes these decisions to ensure safe navigation along the predetermined route. The transformation of this model depends on advancements in technologies such as intelligent sensors and algorithms. According to data from the Ministry of Public Security, more than 90% of fatal traffic accidents in China are mainly attributed to human error. The cutting-edge technology of Robotaxi can enhance emergency decision-making capabilities, thereby ensuring safer mobility services. In addition, adopting this technology can reduce operating expenses and improve the affordability of mobility solutions.

With technological progress, policy support, and cost reduction, it is expected that Robotaxi will achieve large-scale commercialization around 2026, targeting individuals who currently use private cars or public transportation. Initially, Robotaxi will enter the smart mobility market, offering higher safety and competitive pricing. This early success may drive market expansion, with Robotaxi expected to be widely used globally by 2030. Its economies of scale will reduce operating costs and improve efficiency, attracting private car users to switch to Robotaxi services. According to a Frost & Sullivan report, it is expected that by 2030, the penetration rate of Robotaxi in China's smart mobility market will reach 31.8%, and by 2035, it will reach 69.3%.

Source: Frost & Sullivan report

Competitive landscape of the smart travel market in the Greater Bay Area

The travel service market in the Greater Bay Area is highly concentrated, with the top five participants accounting for 74.0% of the market share based on transaction volume. Ruiqi Travel has all the key success factors and ranks second in the Greater Bay Area in terms of market share by transaction volume. In 2023, Ruiqi Travel's travel service transaction volume was RMB 27.41 billion, accounting for 5.6% of the Greater Bay Area's market share, leading among its main competitors in the region.

Source: Frost & Sullivan report

The competitive landscape of China's online car-hailing travel market

The Greater Bay Area market holds an important position in China's smart transportation sector, accounting for about 15.5% of the market share. As of 2023, Ruqi Chuxing's share in China's online car-hailing market was 1.1%, ranking eighth nationwide.