Songguo Mobility submits listing application to HKEX to迎high-quality development test

Economic Reference News Reporter Yu Dian

Recently, shared electric scooter operator Songguo Mobility submitted an application for listing on the Main Board of the Hong Kong Stock Exchange, with Huatai International serving as the sole sponsor. Industry insiders say that at this critical stage when the shared mobility industry shifts from rapid expansion to high-quality development, this fundraising is expected to support the company’s business expansion and will also test its capabilities in compliant operations, market deployment, and profit improvement.

Fundraising for Expansion and Development

As a provider of shared electric scooter services deeply rooted in county markets, Songguo Mobility, founded in 2017, aims to raise funds primarily for expansion through this listing.

In terms of performance, during the first three quarters of 2023, 2024, and 2025 (hereinafter referred to as “reporting periods”), Songguo Mobility achieved revenues of 953 million yuan, 963 million yuan, and 746 million yuan respectively, maintaining stable revenue levels; during the same periods, the company’s net losses were 192 million yuan, 151 million yuan, and 60 million yuan, with overall losses gradually narrowing.

Regarding revenue structure, shared electric scooter services are at the core of Songguo Mobility’s business model. During the reporting periods, revenue from shared electric scooter services was 935 million yuan, 934 million yuan, and 698 million yuan, accounting for over 90% of total revenue for a long time.

Further analysis shows that the need for expansion and strengthening financial reserves are direct drivers behind Songguo Mobility’s listing. Since the shared electric scooter industry is a heavy-asset operation model, whether for initial vehicle procurement and market expansion or for subsequent maintenance, operation, and management, substantial capital investment is required. This also means that maintaining user scale and expanding the market depend heavily on the company’s financial support. Additionally, the company’s cash and cash equivalents have been continuously depleted, with balances of 287 million yuan, 227 million yuan, and 156 million yuan during the reporting periods.

According to the prospectus, Songguo Mobility plans to use the raised funds mainly to expand business coverage, deepen market penetration, invest in technological R&D, enhance scooter commercialization, explore overseas expansion, and potential acquisitions.

According to a report by Zhuoshi Consulting, China’s shared electric scooter market is steadily growing, with the number of scooters deployed increasing from 1.2 million in 2019 to 7.1 million in 2024. The market size grew from 2.2 billion yuan in 2019 to 16.6 billion yuan in 2024, with a compound annual growth rate of 49.7%.

Supported by this broad market outlook, institutional investors have shown strong interest in Songguo Mobility. To date, the company has received investments from well-known institutions such as Innovation Works, Sequoia, BlueRun Ventures, SoftBank, and Sequoia China. Currently, Innovation Works, Sequoia, and BlueRun Ventures hold 23.23%, 14.12%, and 11.85% of shares respectively, making them the main institutional investors.

Niche Competition for Breakthrough

Meanwhile, thanks to a precise niche competition strategy, Songguo Mobility has broken through in the fiercely competitive shared electric scooter market and built its own “moat” in county markets.

The company’s IPO prospectus shows that, based on 2024 transaction volume data, the market share of three major brands—Hellobike, Meituan, and Qingju—each exceeds 20%, ranking them as the top three industry leaders. Songguo Mobility’s market share is 6.6%, ranking fourth. The company also admits in the prospectus that some competitors have stronger financial, technological, and marketing capabilities, or larger user bases.

In a relatively concentrated market structure, niche competition has become Songguo Mobility’s survival strategy. Compared to the giants dominating second- and third-tier cities, Songguo Mobility has created unique operational advantages by meeting the short-distance travel needs of county markets. This allows it to avoid direct competition with leading brands while leveraging lower operational costs and vast demand in county areas to rapidly scale.

As of the end of September 2025, Songguo Mobility had deployed over 450,000 shared electric scooters across more than 422 cities and counties nationwide. The company’s total registered users increased from 99 million in 2023 to 128 million by the end of September 2025. To meet the differentiated needs of county markets, the company implements a “city-specific” localized operation model, establishing dedicated maintenance teams in each area.

According to the prospectus, although the total number of registered users exceeded 100 million in 2024 and further reached 128 million by September 2025, the daily order volume has shown a downward trend, decreasing from an average of 1.102 million orders per day in 2023 to 1.006 million in the first three quarters of 2025. The company attributes this decline to strategic optimization of operational regions, shifting operations to larger markets, and ongoing adjustments.

To improve this situation, Songguo Mobility is also diversifying revenue streams through advertising services and other businesses to avoid over-reliance on shared electric scooter revenue. The company states that as its operations expand into more cities and deploy more scooters, advertising coverage and user base will grow accordingly, enhancing monetization. Additionally, the company has invested in a smart factory in Hefei with an annual capacity of 100,000 scooters, controlling the entire process from scooter design and core component assembly to full vehicle manufacturing.

Compliance as a Development Trend

As industry regulation tightens, Songguo Mobility’s business development faces new challenges. Transitioning from scale expansion to compliant operations has become a key issue the company must address.

According to the prospectus, as of September 2025, the company operates in 422 cities and counties nationwide, but 51 of these have not obtained local government cooperation agreements or written consent, nor have they engaged in substantial communication; 41 have not obtained such agreements or consent, but relevant regulatory agencies are aware of their operations.

With increasing regulatory standards, many cities have implemented total volume control policies for shared electric scooters, and some have raised requirements for vehicle qualifications, parking management, and data security. For example, in September last year, Hefei reported that some companies deployed a large number of unlicensed shared scooters, with some vehicles involved in license plate fraud.

Against this backdrop, how Songguo Mobility will expand its market space and improve compliance efficiency has become a critical issue for management. Leading platforms with advantages in funding, technology, and ecosystem integration are also continuously expanding into county markets, further squeezing Songguo Mobility’s market share and posing challenges for future growth.

Industry insiders believe that Songguo Mobility’s attempt to go public marks an important milestone for its development and reflects new trends in the shared mobility industry. As the industry shifts from rapid expansion to high-quality growth, county markets are becoming new growth engines. Songguo Mobility, which has taken the lead in deploying in these areas, has certain first-mover advantages. However, with increasing industry concentration and stricter policies, how Songguo Mobility will respond to market challenges and business transformation remains to be seen.