Founded in 2018, Acquisition Partners Group is a financing advisory firm headquartered in Birmingham, Michigan. The firm offers mergers and acquisitions advisory services for founders, owners, and investors of industrial and technology:based businesses. Additionally, the Acquisition Partners Group also helps to assemble a mergers and acquisitions advisory team for the sale of a specific business outside of the firm's areas of expertise.

Todd Sullivan

Co-Founder & Managing Partner

Peter Greer

Auto & Industrial Partner

Susan Stone

Media Partner

Charles Drummond

Partner

Akash Taneja

Staffing Partner

About APG

APi Group (NYSE:APG) Azioni

API GROUP CORP

APi Gr

APi Group Corp operates in two segments: Safety Services segment includes providing safety services in North America, Asia Pacific, and Europe, focusing on end-to-end integrated occupancy systems (fire protection solutions, Heating, Ventilation, and Air Conditioning and entry systems), including design, installation, inspection, and service of these integrated systems. These services are provided in commercial, education, healthcare, high tech, industrial, and special-hazard settings. Specialty Services segment includes providing a variety of infrastructure services and specialized industrial plant services, which include maintenance and repair of critical infrastructure such as underground electric, gas, water, sewer, and telecommunications infrastructure.

APi Group Corp

APOLLO STRATEGIC GROWTH CAPITAL II ORD SHS CL A

Apogee Therapeutics Inc

AMERICAN POWER GROUP CORP by American Power Group Corp.

American Power Group Corp

Applied Graphene Materials PLC

APOLLO SILVER CORP by Apollo Silver Corp.

Apollo Silver Corp

Appgate Inc

Piper Sandler analyst Crispin Love maintains TriplePoint Venture Gwth (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TPVG#NYSE">TPVG</a>) with a Neutral and lowers the price target from $8 to $7.

News

Price Target

Analyst Ratings

TPVG

Piper Sandler Maintains Neutral on TriplePoint Venture Gwth, Lowers Price Target to $7

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="900" height="340" src="https://contributor-assets.benzinga.com/wp-content/uploads/2025/04/08120537/brief-consumer-v3.1-11.png" alt="" class="wp-image-10004" srcset="https://contributor-assets.benzinga.com/wp-content/uploads/2025/04/08120537/brief-consumer-v3.1-11.png 900w,https://contributor-assets.benzinga.com/wp-content/uploads/2025/04/08120537/brief-consumer-v3.1-11-300x113.png 300w,https://contributor-assets.benzinga.com/wp-content/uploads/2025/04/08120537/brief-consumer-v3.1-11-768x290.png 768w" sizes="(max-width: 900px) 100vw, 900px" /></figure>
Foshan Haitian Flavouring and Food Co. Ltd.&nbsp;(603288.SH) last Thursday reported revenue and profit growth for 2024 amid a globalization drive to propel its business. The leading Shanghai-listed soy sauce and condiment maker is currently preparing for a Hong Kong listing to enhance its brand reputation and expand its reach beyond China.
Haitian reported its revenue rose 9.53% last year to 26.9 billion yuan ($3.7 billion) from 24.6 billion yuan in 2023, according to the annual report. Its 2024 net profit grew 12.75% to 6.34 billion yuan from 5.63 billion yuan a year earlier.
According to its Hong Kong listing prospectus, Haitian was the only top 10 global condiment company to achieve double-digit compound annual growth from 2013 to 2023. Haitian ranked first in the global soy sauce market with 6% share and 12.6% of the China market, and it is also the global leader in oyster sauce with 23.7% market share. The company has been the largest condiment company in China for 27 consecutive years by sales volume, and is a leader in fermentation technology, strain breeding and production equipment.
Haitian, whose history dates back more than 400 years, is making the Hong Kong listing to raise its profile outside China as part of an effort to consolidate its industry-leading position amid the growing influence of Chinese cuisine globally. The company spent over 840 million yuan on R&amp;D last year, accounting for 3.12% of its revenue, as it worked on initiatives such as deploying digital intelligence in its soy sauce brewing at one of its factories, which it calls the first and only "Lighthouse Factory" globally in soy sauce brewing.
By Doug Young

Asia

Equities

IPOs

Haitian Flavoring Reports Double-digit Profit Growth For 2024; Prepares For A Hong Kong IPO

Orders Reflecting Growing Trend of New Airline Customers Totaled over $6 Millionin the Last Calendar Year with Additional Orders Expected Throughout 2025
Flux Power Holdings, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FLUX#NASDAQ">FLUX</a>), a leading developer of advanced lithium-ion energy storage solutions for the electrification of commercial and industrial equipment, today provided an update on its significant presence within the airline industry's continued electrification of Ground Support Equipment ("GSE"). Over the past calendar year, six new large North American airlines have placed purchase orders for Flux Power's G-Series lithium-ion solutions to electrify their GSE fleets at 7 different locations in North America, further reflecting the industry's accelerating commitment to sustainability.
These new airline customers purchase orders totaling over $6 million in the last calendar year with more orders expected this year, and the approximately $20 million in total GSE orders, reflect a growing trend of major airlines transitioning away from lead acid and fossil fuel-powered GSE in favor of cleaner, more efficient lithium-ion solutions. As airlines continue to adopt sustainability initiatives and carbon-reduction strategies, Flux Power's energy solutions provide a reliable, high-performance alternative that enhances operational efficiency while lowering emissions and the total cost of ownership.
Averest Inc., Flux Power's trusted GSE sales and service provider, played a pivotal role in securing partnerships with these large airlines through their electric solutions expertise and strong commitment to customer satisfaction.
These purchase orders included Flux Power's innovative 80-volt, <a href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.fluxpower.com%2Fhubfs%2FSA-813_Product%2520Brochure%2520G2-G80-Rev_B.pdf&amp;esheet=54235276&amp;newsitemid=20250408134931&amp;lan=en-US&amp;anchor=G80+series+batteries&amp;index=1&amp;md5=02936aab961e20cfdac60e475b0e5d80">G80 series batteries</a> and Flux Power's SkyEMS integrated telematics Cloud Software Platform that provides advanced data analysis capabilities, empowering customers with actionable insights for fleet optimization and operational efficiency. These batteries will power a range of essential ground support equipment including bag tractors and pushback tractors as part of the customers' fleet electrification strategy.

Contracts

FLUX

Flux Power Holdings Secures Over $6M In Orders From Six New North American Airlines For G-Series Lithium-Ion Solutions To Electrify Ground Support Equipment, Reflecting Growing Trend Towards Sustainability And Carbon Reduction, With Additional Orders Expected In 2025

Piper Sandler analyst Crispin Love maintains SEI Inv (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SEIC#NASDAQ">SEIC</a>) with a Neutral and lowers the price target from $87 to $74.

SEIC

Piper Sandler Maintains Neutral on SEI Inv, Lowers Price Target to $74

Shareholder-Approved Merger Between Nxu And Verde Bioresins, Progressing Towards Close

WIIM

CPRX

Catalyst Pharmaceuticals shares are trading higher after the company announced that Health Canada accepted its AGAMREE new drug submission with priority review.

AirJoule Technologies Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AIRJ#NASDAQ">AIRJ</a>) ("AirJoule Technologies" or the "Company"), the developer of the transformational AirJoule&#xAE; system for separating pure water from air, today announced an agreement with Arizona State University ("ASU"), which is widely recognized as an international leader in the field of atmospheric water harvesting research. Under the binding agreement, ASU will purchase one AirJoule&#xAE; A250TM unit, a high-capacity system capable of producing 250 liters of pure distilled water per day directly from ambient air.
AirJoule&#xAE; utilizes advanced sorbents and a dual-chamber vacuum system to separate water from air. The proprietary dual-chamber design allows internally generated heat to be re-used in the system, which significantly reduces external power requirements. AirJoule&#xAE; can also utilize low-grade waste heat from industrial operations to further reduce its energetics for separating moisture from air. Compared to conventional moisture removal systems, AirJoule&#xAE; is over 4x more efficient than refrigerant-based systems and over 8x more efficient than desiccant systems when utilizing low-grade waste heat.
The AirJoule&#xAE; A250TM unit purchased by ASU will be operated within the greater Phoenix area at various testing locations, where researchers will independently evaluate its performance across a range of real-world conditions, including arid climates and variable humidity levels. Phoenix, known for its hot desert climate, frequently experiences relative humidity levels below 20% – conditions that significantly impact the ability of conventional atmospheric water harvesting systems to function effectively. AirJoule&#xAE;'s enhanced capability to produce pure distilled water in these dry conditions significantly expands its potential for deployment in water-stressed regions around the world.

AIRJ

AirJoule Technologies Partners With Arizona State University To Supply High-Capacity AirJoule A250TM System For Water Harvesting Research, Demonstrating Over 4x Efficiency Compared To Traditional Moisture Removal Systems

As of April 8, 2025, three stocks in the industrials sector could be flashing a real warning to investors who value momentum as a key criteria in their trading decisions.
The RSI is a momentum indicator, which compares a stock&#8217;s strength on days when prices go up to its strength on days when prices go down. When compared to a stock&#8217;s price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered overbought when the<a href="https://www.benzinga.com/topic/rsi"> RSI is above 7</a>0, according to <a href="https://pro.benzinga.com/">Benzinga Pro</a>. 
Here's the latest list of major overbought players in this sector.
<h3 class="wp-block-heading">Mesa Air Group Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MESA#NASDAQ">MESA</a>)</h3>
<ul>
<li>On April 7, Mesa Air Group and Republic Airways Holdings Inc announced a merger agreement to create a major player in the regional airline market. "Today's announcement is an exciting next step in Mesa's more than 40-year history, one that represents the best outcome for our shareholders, employees, and all of our stakeholders," said Mesa's Chairman and CEO, Jonathan Ornstein. The company's stock gained around 39% over the past five days and has a 52-week high of $1.89.</li>
<li>RSI Value: 71.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</li>
<li>MESA Price Action: Shares of Mesa Air gained 54.9% to close at $1.10 on Monday.</li>
<li>Edge Stock Ratings: 24.10 Momentum score with Value at 85.64.</li>
</ul>
<figure class="wp-block-image size-full"><a href="https://www.benzinga.com/quote/mesa"><img loading="lazy" decoding="async" width="497" height="181" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/04/08032054/image-31.png" alt="" class="wp-image-861294" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/04/08032054/image-31.png 497w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/04/08032054/image-31-300x109.png 300w" sizes="(max-width: 497px) 100vw, 497px" /></a></figure>
<h3 class="wp-block-heading">eLong Power Holding Ltd (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ELPW#NASDAQ">ELPW</a>)</h3>
<ul>
<li>On March 25, Elong Power received staff determination notices from Nasdaq. The company's stock gained around 51% over the past five days and <a href="https://www.benzinga.com/quote/ELPW">has a 52-week high</a> of $12.60.</li>
<li>RSI Value: 74.1</li>
<li>ELPW Price Action: Shares of eLong Power gained 18.6% to close at $1.06 on Monday.</li>
</ul>
<h3 class="wp-block-heading">Markforged Holding Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MKFG#NYSE">MKFG</a>)</h3>
<ul>
<li>On March 28, Markforged Holding posted downbeat quarterly sales. &#8220;We are encouraged by the continued adoption of our next generation product line, despite the challenging market conditions that we are facing,&#8221; said Shai Terem, President and CEO of Markforged. The company's stock gained around 94% over the past month and has a <a href="https://www.benzinga.com/quote/MKFG">52-week high</a> of $7.50.</li>
<li>RSI Value: 73.1</li>
<li>MKFG Price Action: Shares of Markforged Holding fell 0.9% to close at $4.55 on Monday.</li>
</ul>
Learn more about BZ Edge Rankings—click to see scores for other <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-2#:~:text=Turn%20Market%20Chaos,when%20markets%20rebound">stocks in the sector and see how they compare.</a> 
Read This Next: 
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<li><a href="https://www.benzinga.com/trading-ideas/short-ideas/25/04/44669062/top-3-health-care-stocks-that-may-crash-in-q2">Top 3 Health Care Stocks That May Crash In Q2</a> </li>
</ul>
Photo via Shutterstock

Short Ideas

Pre-Market Outlook

Markets

Trading Ideas

ELPW

MESA

MKFG

Top 3 Industrials Stocks You May Want To Dump This Month

SGBX

Safe & Green Holdings Corp.'s Olenox Subsidiary Purchases 51% Stake In Winchester Oil and Gas

Piper Sandler analyst Crispin Love maintains Blue Owl Capital (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OWL#NYSE">OWL</a>) with a Overweight and lowers the price target from $27 to $21.

Piper Sandler Maintains Overweight on Blue Owl Capital, Lowers Price Target to $21

<ul>
<li>TSLA</li>
<li>NVDA</li>
<li>EU</li>
<li>AAPL</li>
<li>DIS</li>
<li>GOOGL</li>
<li>GLD</li>
<li>BABA</li>
<li>QQQ</li>
<li>JD</li>
</ul>
Data from <a href="https://swaggystocks.com/dashboard/wallstreetbets/ticker-sentiment">https://swaggystocks.com/dashboard/wallstreetbets/ticker-sentiment</a>
&nbsp;

AAPL

BABA

GOOGL

NVDA

TSLA

Top 10 Trending Stocks On WallStreetBets As Of April 8, 2025 (Via Swaggy Stocks)

<ul>
<li>Hut8 announced a new Bitcoin mining subsidiary in partnership with Eric Trump</li>
<li>Trump told CNBC that his interest in bitcoin stemmed from cancel culture, saying his family was "the most canceled company on earth"</li>
<li>American Bitcoin has set out to be "the world's largest, most efficient pure-play miner"</li>
</ul>
Bitcoin mining company Hut 8 (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HUT#NASDAQ">HUT</a>) said last week that it is launching a new subsidiary with Eric Trump. American Bitcoin "aims to be the world's largest, most efficient pure-play miner while building a robust strategic Bitcoin reserve," according to a company <a href="https://hut8.com/2025/03/31/hut-8-and-eric-trump-launch-american-bitcoin-to-set-a-new-standard-in-bitcoin-mining/">statement</a>.
Trump told CNBC on Wednesday why he turned to cryptocurrency. His family's namesake firm became "the most canceled company, probably on earth. It's actually what drove us towards cryptocurrency. You realize that cryptocurrency was a lot faster, it was a lot more pragmatic, it was a lot more transparent, it was exponentially cheaper."&nbsp;
Don't Miss:
<ul>
<li>Hasbro, MGM, and Skechers trust this AI marketing firm — <a href="https://www.benzinga.com/money/rad-intel">invest pre-IPO from $0.55 per share now</a>.</li>
<li>It&#8217;s no wonder Jeff Bezos holds over $250 million in art — <a href="https://www.benzinga.com/money/masterworks">this alternative asset has outpaced the S&amp;P 500 since 1995, delivering an average annual return of 11.4%. Here&#8217;s how everyday investors are getting started.</a></li>
</ul>
The "cancellation" Trump is referring to happened in 2022, when two Trump Organization units were convicted in New York of multiple crimes. There were 17 charges, including things like tax fraud, falsifying business records, and conspiracy. Guilty verdicts on all counts were handed down just two weeks after Trump's father, Donald Trump, announced his candidacy for the 2024 presidential election.&nbsp;
There is also the lawsuit the Trump Organization filed against Capital One (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COF#NYSE">COF</a>), alleging that the bank illegally closed over 300 of the company's accounts following the Jan. 6, 2021 riot at the US Capitol. According to the lawsuit, Capital One was acting on "unsubstantiated ‘woke' beliefs that it needed to distance itself from President Trump and his conservative political views" rather than any legal precedent.&nbsp;
Trending: Have $200K saved?<a href="https://www.benzinga.com/money/have-200k-saved-heres-how-to-turn-it-into-lasting-wealth"> Here's how to turn it into lasting wealth</a>
Eric Trump told CNBC that after "falling in love with the cryptocurrency industry and realizing that "every sophisticated country is using their excess power to mine Bitcoin," he concluded that launching his own coin would be the best way to push back against an economy that has "launched a war on [cryptocurrencies]."
Eric also claimed that, despite his father being back in the White House, there is no conflict of interest with this new venture as he "[doesn't] have anything to do with government and… frankly, doesn't want anything to do with government." President Trump has taken a very pro-crypto stance, creating a strategic crypto reserve and launching a meme coin just before his inauguration.
Eric is pushing the government to adopt a regulatory framework that will allow crypto to grow. "You better believe that China is running very hard at this. The entire Middle East is running very hard. We won the space race. We better win the crypto race," he told CNBC.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/money/are-you-rich">Are you rich?</a> Here&#8217;s what Americans think you need to be considered wealthy.</li>
<li><a href="https://www.benzinga.com/money/gbr-savings-by-age">If You're Age 35, 50, or 60: Here&#8217;s How Much You Should Have Saved Vs. Invested By Now</a></li>
</ul>

Personal Finance

'It Actually Is What Drove Us Toward Cryptocurrency.' Eric Trump Says Cancel Culture Caused Family Shift to Bitcoin

SEALSQ Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LAES#NASDAQ">LAES</a>) ("SEALSQ" or "Company"), a company that focuses on developing and selling Semiconductors, PKI, and Post-Quantum technology hardware and software products, announced today the appointment of Loïc Hamon as its Chief Operating Officer (COO), as part of the Company's strategic expansion in the North American market, effective immediately. This appointment underscores SEALSQ's commitment to strengthening its leadership in cybersecurity, post-quantum cryptography, and secure semiconductor technologies.

Management

LAES

SEALSQ Appointment Of Loïc Hamon As Its Chief Operating Officer, As Part Of The Company's Strategic Expansion In The North American Market, Effective Immediately

Piper Sandler analyst Crispin Love maintains Hercules Capital (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HTGC#NYSE">HTGC</a>) with a Overweight and lowers the price target from $23 to $20.

HTGC

Piper Sandler Maintains Overweight on Hercules Capital, Lowers Price Target to $20

Joint venture to transform green waste and food waste into agricultural benefits while generating expected substantial EBITDA for both partners
Limoneira Company (the "Company" or "Limoneira") (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LMNR#NASDAQ">LMNR</a>), a diversified citrus growing, packing, selling and marketing company with related agribusiness activities and real estate development operations, today announced entering into a letter of intent to form a 50%/50% joint venture with Agromin Corporation, the largest organics waste recycler in California, to significantly expand their successful organic waste recycling program. The joint venture plans to expand from the existing 15-acre green waste composting facility at Limoneira Ranch in Santa Paula into a 70-acre, commercial-scale composting facility capable of processing both green waste and food waste.
Upon completion, the expanded facility is projected to generate substantial financial returns for both partners, with first-year EBITDA contribution projected at approximately $5.0 million to be shared equally between Limoneira and Agromin. Annual EBITDA contribution is expected to grow to $9.0 million over the next ten years, maintaining the same 50%/50% profit-sharing arrangement. The Company is planning to lease the 70-acre site to the joint venture for approximately $0.6 million annually, strengthening Limoneira's rental operations business division.

LMNR

Limoneira and Agromin Announce 50/50 Joint Venture To Expand Organic Waste Recycling Program With New 70-Acre Composting Facility At Limoneira Ranch, Projected To Generate $5M In First-Year EBITDA And Grow To $9M Annually, Strengthening Limoneira's Rental Operations Business

Piper Sandler analyst Crispin Love maintains GCM Grosvenor (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GCMG#NASDAQ">GCMG</a>) with a Overweight and lowers the price target from $16 to $14.5.

GCMG

Piper Sandler Maintains Overweight on GCM Grosvenor, Lowers Price Target to $14.5

Avidity Biosciences shares are trading higher after the company announced it received Orphan Drug designation in Japan for Delpacibart Etedesiran.

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="900" height="600" src="https://contributor-assets.benzinga.com/wp-content/uploads/2025/04/08091945/Chenqi.jpeg" alt="" class="wp-image-9980" srcset="https://contributor-assets.benzinga.com/wp-content/uploads/2025/04/08091945/Chenqi.jpeg 900w,https://contributor-assets.benzinga.com/wp-content/uploads/2025/04/08091945/Chenqi-300x200.jpeg 300w,https://contributor-assets.benzinga.com/wp-content/uploads/2025/04/08091945/Chenqi-768x512.jpeg 768w" sizes="(max-width: 900px) 100vw, 900px" /></figure>
The shared economy platform bled more red ink last year, as its hyped robotaxi business fails to show any signs of breakthroughs

Key Takeaways:
<ul>
<li>Chenqi lost 564 million yuan in 2024, extending its long stream of red ink over the last four years</li>
<li>The company has hyped the potential of its robotaxi service, but revenue from that part of its business has so far been miniscule</li>
</ul>
It drove successfully onto the Hong Kong Stock Exchange last July, hoping to wow investors with its ride hailing and robotaxi services. But nine months later,&nbsp;Chenqi Technology Ltd.&nbsp;(9680.HK) is going nowhere fast.
The company's stock has been under pressure nonstop since briefly basking in the spotlight after ringing the stock exchange's fabled opening gong, and is now down nearly 70% from its HK$35 listing price. Its dwindling group of believers only got limited hope from its first post-listing&nbsp;<a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2025/0327/2025032700529.pdf">financial results</a>, released late last month, which included improving overall performance but also another annual loss of 564 million yuan ($77.7 million).
In the popular Hong Kong movie "Infernal Affairs," undercover agent Chan Wing Yan, played by local star Tony Leung, famously utters at one point that "After three more years on top of another three years, it's coming up on a decade." Such thoughts could very well be coming from Chenqi investors, who are wondering how much longer they will need to wait for the company to finally drive into profitability.
<h4 class="wp-block-heading">Endless losses</h4>
Just six years after its inception, Chenqi's road ahead is still pockmarked with uncertainties as its losses continue. The company didn't hold out much hope for near-term profitability in its IPO prospectus last year, saying "we expect to continue incurring net loss and net operating cash outflows in 2024, 2025, 2026 and 2027."
In other words, the company will continue to log losses for at least the next three years. As for after that, it's probably still too early to say.
A look its latest results shows Chenqi had 34.5 million registered riders last year, up 44% year-on-year. It logged 2.98 billion yuan in transaction value, up 8% year-on-year, and its daily order volume reached nearly 310,000, up 15%. But its average value per order dropped from 28 yuan in 2023 to 26.4 yuan last year, suggesting it had to lower its fares or offer more incentives to drivers to keep its business growing.
And as we've already noted, the company lost 564 million yuan last year, 18% narrower than its 693 million loss in 2023. But a loss is still a loss, and adding on its 685 million yuan loss in 2021 and 627 million yuan in 2022, the company has lost a cumulative 2.57 billion yuan over the last four years – quite a chunk of change.
<h4 class="wp-block-heading">If Baidu can't deliver, how can Chenqi?</h4>
Chenqi featured its autonomous robotaxi business as a selling point at the time of its IPO, but that business has failed to take off just yet. That service, which is included with Chenqi's hitch carpooling service and promotion and marketing efforts under "other items" on its financial statements, generated just 2.04 million yuan in revenue for all last year, equal to just a tiny fraction of the company's 2.4 billion yuan in total revenue. So, it seems unlikely the robotaxi business will make any meaningful contribution anytime soon.
Any success for that operation would undoubtedly be a major breakthrough. But the reality is that service is still very much in a trial phase, and is miles from being a profit engine. Even less certain is when it will make an official commercial debut and whether the company can run the business effectively.
Even internet giant&nbsp;Baidu's (9888.HK, BIDU.US) Apollo Go robotaxi service is in a pilot stage, mostly operating in the Central Chinese city of Wuhan, with 1,000 unmanned taxis in service.
Baidu, which has far deeper resources than Chenqi, has lots of kinks to work out with its robotaxis. Those include vehicles not able to reach exact designated pick-up and drop-off sites, only able to drive at maximum speeds of 40 kph in the best conditions, and struggling to change routes in busy conditions or even coming to a complete halt.
Clearly, robotaxi services still face numerous challenges and won't make meaningful contributions to anyone's revenue or profits anytime soon. If even Baidu, the first in China to test the service on a large scale, can't get its service fully launched, then how will Chenqi be able to do it anytime soon?
<h4 class="wp-block-heading">Capital, technology gaps</h4>
In terms of business model, ride-hailing service platforms like Chenqi's are asset-light, using vehicles provided by drivers themselves. By comparison, robotaxis are far more capital intensive since the business must provide such vehicles.
Zhang Ning, a vice president at rival robotaxi operator&nbsp;Pony.ai&nbsp;(PONY.US), once told media that "in cities like Beijing, Shanghai, Guangzhou and Shenzhen, at least 1,000 vehicles need to be put into operation (by an operator) for the robotaxi business to at least break even."
In other words, scale is key to the robotaxi business, with thousands or even tens of thousands of vehicles necessary to run a viable business. Expenses required to procure such vehicles, coupled with maintenance, charging, insurance and operating costs, could easily add up to billions of dollars.
At the time of its listing, Chenqi said it planned to use 40% of the funds it raised, or around HK$390 million ($50 million), for development of its robotaxi service. But that's likely just a drop in the bucket for what it will need to keep developing the service until it's one day viable.
The company could also return to the capital market to raise more funds, but could find few takers given the current state of its profitability and business operations. And the dismal post-IPO performance of its stock will hardly encourage new investors to buy more shares.
Perhaps Chenqi could shift to an asset-light model for robotaxis by opening its platform to such vehicles provided by third parties. But there's nothing to prevent other ride-hailing services, including much bigger names like&nbsp;DiDi Global&nbsp;from doing the same.
In addition to Baidu and Pony.ai, China's&nbsp;WeRide&nbsp;(WRD.US) is also pursuing robotaxi service in the country using advanced L4 and L5 autonomous driving technologies. Chenqi is collaborating with Pony.ai and has received investment from the company, but that doesn't change the fact that the pair are at once both friends and rivals.
At the end of the day, Chenqi is really just a ride-hailing service platform without any obvious strength in autonomous driving. What's more, it's up against formidable competition in robotaxis, with Baidu operating at a much larger scale and more financial resources, while Pony.ai and WeRide boast technological advantages. That leaves Chenqi as mostly a second fiddle in the robotaxi race, making it hard to see how that part of the business could someday propel the company to profits that have so far been elusive.

Opinion

Chenqi Keeps Racking Up Losses In Congested China Ride-hailing Race

LEVI

Levi Strauss shares are trading higher after JP Morgan upgraded the stock from Neutral to Overweight. Telsey Advisory also maintained a Buy rating on the stock.

Piper Sandler analyst Crispin Love maintains Ellington Credit (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EARN#NYSE">EARN</a>) with a Overweight and lowers the price target from $8 to $6.5.

EARN

Piper Sandler Maintains Overweight on Ellington Credit, Lowers Price Target to $6.5

Press Releases

APi Group Reports Third Quarter 2024 Financial Results

Building Industry Partners Announces Strategic Sale of Rapidly Growing Endeavor Fire Protection to APi Group Corporation

APi Group Announces CFO Transition

APi Group Announces Participation in the UBS Global Industrials and Transportation Conference

APi Group Announces May 2025 Investor Update Meeting and Reiterates FY 2024 Guidance

APi Group Confirms Date of Fourth Quarter 2024 Earnings Release and Announces Participation in Upcoming Investor Conferences

APi Group Provides Update on 2024 Performance and Initial 2025 Guidance and Announces Repricing of Term Loan

APi Group Reports Fourth Quarter and Full Year 2024 Financial Results

APi Group Announces Participation in the 2025 J.P. Morgan Industrials Conference

APi Group Appoints David Jackola Executive Vice President & Chief Financial Officer

Arcosa

AECOM

Argan

Ameresco

APi Group

Bowman Consulting Group Ltd. - Common Stock

Bowman Consulting Group

Cadeler A/S American Depositary Share (each representing four (4) Ordinary Shares)

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APi Group

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BENZINGA NEL MONDO