Breaking Down TUHU Car Inc Financial Health: Key Insights for Investors

From its 2011 founding to a milestone Hong Kong listing in September 2023 under stock code 9690.HK, TUHU Car has grown into a leading integrated online-offline automotive service platform with a nationwide footprint of 6,874 workshops across 32 provincial-level and 318 prefectural-level regions by end‑2024, serving nearly all passenger vehicle models sold in China and consolidating fragmented service demand via its TUHU app and digitalized operations; financially the company reported a RMB 7.88 billion revenue in H1 2025 (up 10.5% YoY) with gross profit of RMB 1.98 billion (up 7.4%), adjusted EBITDA of RMB 483.3 million (up 7.5%) and adjusted net profit of RMB 410.5 million (up 14.6%), while transacting users rose 23.8% YoY to 26.5 million, and corporate moves such as a Cayman Islands incorporation, a weighted voting rights structure, a shareholder‑approved buyback of up to 10% of issued share capital, formation of a nomination committee in June 2025 and the October 2025 appointment of Ms. Wong Mei Fung Carrie as Joint Company Secretary all underscore TUHU's focus on governance, customer‑first mission, diversified revenue streams (products, services, franchise, advertising, insurance brokerage, SaaS, and used/new car transactions) and a market capitalization of approximately HK$2.07 billion as of June 2025.

TUHU Car Inc (9690.HK): Intro

• Founded: 2011 - positioned as an online-to-offline (O2O) automotive service leader in China.
• HKEX listing: September 2023 - ticker 9690.HK.
• Network scale (end-2024): 6,874 workshops across 32 provincial-level and 318 prefectural-level administrative regions.
• H1 2025 performance: Revenue RMB 7.88 billion (up 10.5% YoY); transacting users 26.5 million (up 23.8% YoY).
• Governance update (Oct 2025): Ms. Wong Mei Fung Carrie appointed Joint Company Secretary.

History & Milestones

• 2011 - Company founded to aggregate repair shops and standardize aftersales services.
• 2011-2022 - Rapid expansion of workshop partnerships and rollout of proprietary digital tools for appointment, diagnostics and parts procurement.
• Sept 2023 - Public listing on the Hong Kong Stock Exchange (9690.HK), raising institutional visibility and growth capital.
• End-2024 - Reached 6,874 workshops covering 32 provinces and 318 prefectural regions.
• H1 2025 - Achieved double-digit revenue growth and substantial user growth, reflecting scale and improved monetization.
• Oct 2025 - Strengthened governance with the appointment of a new Joint Company Secretary to bolster compliance and investor relations.

Ownership & Governance

• Publicly listed entity: shares traded on HKEX under 9690.HK since Sept 2023.
• Board and management: mix of founding team members, independent directors and executive management focused on O2O strategy.
• Governance initiatives: ongoing enhancements to corporate secretarial functions (notably Oct 2025 appointment), compliance and investor disclosure practices.

Mission & Strategic Focus

• Mission: standardize and elevate vehicle maintenance and repair services via digital integration, quality control and transparent pricing.
• Customer focus: ease of booking, trusted workshops, warranty and standardized parts sourcing.
• Strategic pillars: network expansion, service quality assurance, digital platform innovation, and diversified revenue streams.

How TUHU Works (Platform Mechanics)

• Customer acquisition: app, web and partner channels drive bookings for maintenance, repair and inspections.
• Workshop onboarding: TUHU vets, trains and partners with independent workshops to meet quality standards.
• Service fulfillment: customers book services, workshops perform work, TUHU provides logistics for parts and quality follow-up.
• Data & digital tools: diagnostics, appointment management, pricing transparency and post-service ratings feed continuous improvement.

Revenue Model - How TUHU Makes Money

• Service commissions: percentage fees on transactions routed through the platform (repair, maintenance, inspections).
• Parts sales: margin on parts sold via TUHU's supply chain and logistics services.
• Value-added services: warranty products, subscription services, premium listings for workshops and fleet/enterprise contracts.
• Advertising & partnerships: demand-generation services for parts suppliers, insurers and related OEM/aftermarket partners.

Key Operational & Financial Metrics

Recent Priorities & Initiatives (2024-2025)

• Network densification: expanding workshop footprint in lower-tier cities and prefectures to increase service accessibility.
• Platform enhancements: investing in user experience, diagnostics, and parts logistics to shorten service cycles and boost satisfaction.
• Monetization focus: increasing share of parts revenue and value-added services while improving gross margins on transactions.
• Governance strengthening: corporate secretarial changes and investor communication upgrades to support public-company requirements.

TUHU Car Inc (9690.HK): History

• Listing: Hong Kong Stock Exchange - 9690.HK
• Jurisdiction: Incorporated in the Cayman Islands
• Governance model: Weighted voting rights; Class B shareholders hold decisive voting influence

• Shareholder action: Active buyback program (up to 10% authorized) signals capital-allocation emphasis on returning value or supporting the share price.
• Governance enhancements: New Joint Company Secretary and a formal nomination committee reflect tightening governance and board oversight.

TUHU Car Inc (9690.HK): Ownership Structure

• Mission: Innovate simple and easy automotive services; become an industry leader through continuous improvement and relentless innovation.
• Core values: customer first, integrity, continuous improvement, value creation via innovation, support for franchisees, and win-win collaboration.
• Service coverage: supports nearly all passenger vehicle models sold in China, offering tire replacement, routine maintenance, quick repairs, car detailing/beauty, and parts sales.

• Platform model: Aggregates fragmented automotive service demand onto a single digital platform, increasing customer engagement and service efficiency versus traditional offline models.
• Revenue streams:
  • Retail sale of automotive parts and accessories (tires, batteries, consumables).
  • Service fees for maintenance, repairs, and quick services (including express lanes and premium services).
  • Franchise and partner fees, including onboarding and tech/operation support for partner garages.
  • Value-added services: membership programs, extended warranties, logistics and parts distribution margins, and digital advertising/promotions on the platform.
• Trust & quality control: Standardized workflows, certification programs for partner shops, authenticated parts supply chain, and digital records for transparency and repeat business.

• Consolidation: Captures fragmented, recurring automotive service demand into a single digital channel to drive repeat transactions and higher customer lifetime value.
• Differentiation: Emphasis on authentic parts, standardized service protocols, integrated logistics, and digital tools for partner shops.
• Franchise & partner support: Training, operation manuals, supply-chain integration and tech tools to raise shop efficiency and service quality.
• Scalability: Platform enables cross-selling (parts, services, membership) and monetization through both retail margins and service fees.

TUHU Car Inc (9690.HK): Mission and Values

• Platform model: digital marketplace + operations-capable service network connecting car owners, multi-brand suppliers, franchised and independent service stores, logistics, and payments.
• Flagship channels: TUHU APP (mobile), mini-programs, web portals, and offline service centers/workshops.
• Geographic footprint: presence across 32 provincial-level and 318 prefectural-level administrative regions in China.

• Consumer engagement: car owners request services via the TUHU APP or web channels - booking tires, maintenance, quick repairs, detailing, and other services on-demand or by appointment.
• Order routing: the platform matches requests to nearby certified service stores and authorized suppliers, factoring in inventory, price, estimated arrival, and technician availability.
• Fulfillment: service is delivered either at franchised/partner workshops, on-site (mobile service), or via at-home technicians for eligible services (e.g., tire change, light maintenance).
• Quality & trust: TUHU enforces standardized service protocols, warranties, and parts traceability to maintain high service quality and reduce post-service disputes.
• Data feedback loop: digital records, customer reviews, and AI-driven diagnostics inform supplier selection, targeted marketing, demand forecasting, and dynamic pricing.

• Direct service revenue: commission and margin on parts and labor sold through TUHU-operated or partner workshops.
• Marketplace fees: transaction commissions from third-party service stores and suppliers for orders routed through the platform.
• Product sales: proprietary and third-party tire inventory, batteries, maintenance parts with retail margins and logistics fees.
• Value-added services: extended warranties, membership/subscription plans, and financing/leasing partnerships for higher-ticket items.
• Advertising & data services: targeted marketing and analytics products sold to suppliers and OEMs based on platform demand and customer profiles.

• Digital backbone: TUHU APP and integrated supplier dashboards centralize order management, inventory, technician scheduling, and payments.
• AI & analytics: automated diagnostics, demand forecasting, and personalized promotions improve conversion and reduce downtime.
• Standardization: certified service protocols and parts traceability reduce variability versus traditional offline-only garages.
• Logistics integration: centralized parts procurement and last-mile fulfillment enable faster service lead times and inventory turn.

• Consolidation: aggregate fragmented independent garages and aftermarket suppliers onto a single digital platform to capture recurring consumer spending.
• Experience: digital end-to-end booking, transparent pricing, and standardized warranties to improve trust compared to traditional offline models.
• Growth levers: expand mobile and in-home services, deepen parts procurement scale, and offer subscription/membership products to increase lifetime value.

TUHU Car Inc (9690.HK): How It Works

• Primary product sales: tires, batteries, auto parts and accessories sold through TUHU-branded stores and online channels.
• Maintenance & repair services: routine servicing, diagnostics, parts replacement and bodywork at company-operated and franchised service centers.
• Vehicle transactions: new energy vehicle (NEV) retail, used car sales and used-car transaction facilitation (inspection, certification, financing and marketplace services).
• Business services & SaaS: insurance brokerage/agency, advertising on TUHU's digital properties, franchise fees, and software-as-a-service tools for shop management and customer retention.

• Automotive product sales - immediate margin on tires, parts and accessories; scale and private-label purchasing improve gross margin.
• Aftermarket services - higher-margin recurring revenue from maintenance, inspections and repair services; drives customer lifetime value and repeat purchases.
• New energy & used vehicle sales - diversifies revenue beyond consumables; NEV sales add strategic growth potential as China's EV penetration rises.
• Used car transaction services - transaction fees, certification services and financing facilitation increase take-rates and yield cross-sell into parts and service.
• Advertising & platform monetization - display and targeted ads on TUHU's apps and web portals monetize customer traffic.
• Franchise & SaaS offerings - recurring franchise fees and subscription software for partner shops (inventory, POS, CRM) provide predictable, lower-capex revenue.
• Insurance & financial services - brokerage and agency commissions for auto insurance and extended warranties add ancillary revenue and improve unit economics.

• Cost control: focused measures lowered operating expenses per store and improved adjusted EBITDA to RMB 483.3 million in H1 2025.
• Channel mix optimization: increasing online-to-offline conversion and upselling services during in-store visits to raise average transaction value.
• Franchise model expansion: scaling franchised service centers to capture market share with lower capital expenditure.
• Inventory & procurement efficiencies: centralized purchasing and private labels to protect margins on tires and consumables.
• Data-driven retention: loyalty programs and digital CRM to increase repeat visits and cross-sell rates.

TUHU Car Inc (9690.HK): How It Makes Money

• Primary revenue streams: retail auto parts sales, repair & maintenance service fees, diagnostic and inspection services, and franchise/partner workshop commissions.
• Digital revenue and membership: online booking fees, subscription-based membership plans, and targeted advertising on the platform.
• B2B and logistics: wholesale distribution of parts to third-party garages and in-house logistics for parts fulfillment.

• Network density: broader workshop footprint reduces customer acquisition cost and increases repeat service frequency.
• Inventory and logistics optimization: centralized procurement and in-house logistics improve gross margins on parts.
• Digital customer experience: app/online bookings and memberships raise average revenue per user (ARPU) and retention.
• Cost control: efficiency measures have supported adjusted EBITDA and net profit growth despite investment in expansion.