China's Full Truck Alliance eyes Hong Kong listing, strong 2025 growth, says executive

Reuters

10-03-2025

HONG KONG, March 10 (Reuters) - Full Truck Alliance (FTA) (YMM.N), opens new tab, China's "Uber for trucks", could revisit plans for a second listing in Hong Kong in the wake of a rebound in investor sentiment and an escalation in Sino-U.S. geopolitical tensions, a company executive said.
The company, also known as Manbang in China, had initially planned a dual primary listing in Hong Kong in 2022 due to stricter audit requirements for U.S.-listed Chinese companies.
But it scrapped the plan in December that year after the U.S. audit watchdog said it gained full access to inspect and investigate firms in China for the first time ever. The development removed the risk of about 200 Chinese companies being kicked off U.S. stock exchanges.
"Regarding a (second) listing in Hong Kong, whether it was then or now, the most important consideration for us has always been to hedge against U.S. risks," said Chief Financial Officer Simon Cai. These included the various political risks that have emerged since U.S. President Donald Trump took office.
"This is our primary objective. Beyond this, if there are any additional benefits, such as improvements in valuation and liquidity, these would be bonus points," Cai told Reuters in an interview.
FTA, backed by big-name investors including SoftBank's Vision Fund and Tencent Holdings (0700.HK), opens new tab, went public in New York in 2021 and is among the few U.S.-listed Chinese companies that have not yet pursued a second listing in the Asian financial hub.
Stock prices of Chinese tech firms listed in Hong Kong have rallied in recent months, boosting their liquidity and valuation, as investors' appetite for tech stocks has been whetted by hopes of Beijing's support for private firms and optimism about China's artificial intelligence sector.
The Hang Seng Tech Index (.HSTECH), opens new tab has risen over 30% so far this year.
"Against this broader backdrop, we will actively re-examine and consider a listing in Hong Kong again. However, no specific plans have been decided yet," Cai added.
Formed in 2017 out of a merger between two digital freight platforms Yunmanman and Huochebang, FTA runs a mobile app that connects truck drivers with people who need to ship items within China. The company reported nearly 200 million fulfilled orders on its platform in 2024, a 24% year-on-year increase.
FTA on Wednesday posted strong earnings for 2024, with annual total revenue rising by 33% year-on-year to 11.2 billion yuan ($1.55 billion) and net income up by 40% to 3.1 billion yuan. The growth was primarily driven by increasing digital adoption, penetration rate and order volume.
Cai expects another strong performance for the company in 2025, tipping record revenue of over 12 billion yuan with an order growth of 15%-20%.
Recent positive shifts in Beijing's policy environment for the private sector have also restored global investors' confidence in Chinese stocks including FTA, said Cai.
"We've clearly observed significant capital inflows (into FTA) over the past quarter," he added, noting that major investors such as Norway's Norges Bank Investment Management, BlackRock and Fidelity have increased positions in the company in recent months.
FTA is boosting its investment in AI and plans to deploy a nationwide AI-led system to increase the order fulfillment rate by the end of the year, Cai said.
In 2023, FTA spun off its cold chain business, which is close to finalizing its latest fundraising round, raising about 200 million yuan at a post-investment valuation of over 30 billion yuan, Cai said.
The unit which yielded over 100 million yuan in net profit last year plans to expand and potentially go public either in Hong Kong or mainland China, he added.
"Small-cap stocks don't get much attention in Hong Kong. We would prefer a market cap of at least $1 billion or even bigger at the time of its listing," Cai said. He estimated the earliest the unit could go public would be in 2026 or 2027.
($1 = 7.2405 Chinese yuan renminbi)