*

FTA open to Hong Kong listing amid renewed investor

interest,

U.S.-Sino tensions

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CFO Cai cites hedging against U.S. risks as primary

objective

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FTA reports strong earnings, plans AI agent system

deployment

nationwide

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FTA aims to list cold chain business by 2026-2027

By Julie Zhu

HONG KONG, March 10 (Reuters) - Full Truck Alliance ( YMM )

, 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 ( TCTZF ), 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 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)