Hong Kong, March 10 (Reuters) - The Full Truck Alliance (FTA), known as China's "Uber for trucks," is considering a potential second listing in Hong Kong following improved investor sentiment and escalating Sino-U.S. geopolitical tensions, a company executive revealed.
Initially planning a dual primary listing in Hong Kong in 2022 due to stricter audit regulations for U.S.-listed Chinese firms, FTA abandoned the plan in December of that year due to U.S. audit watchdog concerns regarding Chinese companies. The change effectively eliminated the risk for approximately 200 Chinese companies facing potential delisting from U.S. stock exchanges.
FTA's Chief Financial Officer Simon Cai emphasized the company's focus on mitigating U.S. risks in considering a Hong Kong listing, stating, "This is our primary objective." He further noted that any additional benefits, such as improved valuation and liquidity, would be considered as "bonus points."
Following its 2021 New York IPO, FTA has yet to pursue a second listing in Hong Kong, unlike many U.S.-listed Chinese companies. With Hong Kong-listed Chinese tech firms experiencing stock price rallies, Cai mentioned, "Against this broader backdrop, we will actively re-examine and consider a listing in Hong Kong again."
Formed in 2017 through the merger of Yunmanman and Huochebang, FTA operates a platform connecting truck drivers with shippers in China. The company reported nearly 200 million fulfilled orders in 2024, showing a 24% year-on-year increase.
FTA recently announced strong financial results for 2024, with total revenue reaching 11.2 billion yuan ($1.55 billion), marking a 33% annual increase, and net income rising by 40% to 3.1 billion yuan. The growth was primarily fueled by greater digital adoption, penetration rate, and order volume.
Cai anticipates another robust performance in 2025, projecting record revenue exceeding 12 billion yuan and order growth ranging from 15% to 20%. Increased investor confidence in Chinese stocks, including FTA, has been noted following positive policy shifts in Beijing's private sector environment.
FTA's focus on AI investment aims to enhance order fulfillment rates, with plans to implement a nationwide AI-led system by year-end. Additionally, the company is advancing its cold chain business which is nearing the completion of a fundraising round, anticipating expansion and potential listing either in Hong Kong or mainland China.
Cai elaborated on the unit's potential public listing, estimating a target market cap of at least $1 billion, possibly in 2026 or 2027.