Chenqi Technology, the operator of ride-hailing platform OnTime Mobility, issued a profit alert on August 3 forecasting stronger results for the first half of 2026.
The company expects to record consolidated revenue of at least RMB 3.9 billion (USD 576.7 million), an increase of at least RMB 2.224 billion (USD 328.9 million) from the same period in 2025. That would represent year-over-year growth of 132.6%.
Its loss is expected to narrow by at least 40% from a year earlier.
Chenqi has issued positive profit alerts for two consecutive reporting periods in 2026. Its gross margin has also turned positive over the past two years, indicating an improvement in its operating performance, although the company remains unprofitable.
Chenqi attributed the expected revenue increase mainly to higher ride-hailing order volume on OnTime Mobility. It also increased sales and marketing activity for its technology services, which contributed to revenue growth in that segment.
The company said the expected reduction in losses reflected greater operating efficiency and a more favorable cost structure in its ride-hailing business, along with higher technology services volume. Together, these factors increased gross profit.
Chenqi recorded revenue of RMB 1.676 billion (USD 247.8 million) in the first half of 2025 and RMB 3.61 billion (USD 533.8 million) in the second half, meaning second-half revenue was more than double the first-half figure.
Revenue for the first half of 2026 is expected to reach at least RMB 3.9 billion, up 132.6% from the same period a year earlier, driven in part by continued expansion of OnTime Mobility.
The disclosure also shows that both mobility services and technology services contributed to the expected revenue increase. According to the company’s previous financial results, revenue from the two segments grew 86% and 207%, respectively, in the first half of 2025.
The latest announcement did not provide separate growth forecasts for the two businesses in the first half of 2026.
Chenqi’s results indicate that its revenue mix is becoming less dependent on mobility services alone. Technology services are contributing a larger share of growth and may support further improvements in gross profit if the segment continues to expand.
The company is also moving beyond a period focused primarily on expansion. Revenue is growing, its gross margin has turned positive, and its losses are narrowing. However, its ability to achieve sustained profitability will depend on whether it can maintain growth while controlling operating costs.
In March, a research report from Soochow Securities said Chenqi’s performance had shown a clear trend of “strong growth, narrowing losses, and an optimized business mix.”
The report said the company’s revenue structure was shifting from a reliance on mobility services toward a combined mobility-and-technology model. It projected that Chenqi would become profitable in 2027.
This article was adapted based on a feature originally written by Stone Jin and published on IPO Zaozhidao. KrASIA is authorized to translate, adapt, and publish its contents.
Note: RMB figures are converted to USD at rates of RMB 6.76 = USD 1 based on estimates as of August 5, 2026, unless otherwise stated. USD conversions are presented for ease of reference and may not fully match prevailing exchange rates.