(Yicai) Aug. 22 -- OnTime, a Chinese smart travel platform set up by automaker GAC Group and internet giant Tencent Holdings, said it will invest about 40 percent of the proceeds from the company’s planned initial public offering in Hong Kong in autonomous driving technologies and robotaxi services.

About 20 percent will be used to upgrade ride-hailing-related services and boost operating efficiency, and 20 percent to expand user groups, enhance brand awareness, and increase market share, according to the prospectus the Guangzhou-based firm recently filed with the Hong Kong Stock Exchange.

A further 10 percent will go on strategic partnerships with partners in the ride-hailing field, investments and acquisitions, and brand profitability, and 10 percent to supplement operating funds, it said.

Founded in 2019, OnTime provides ride-hailing, technological, and ecological services. Chinese self-driving startup Pony.ai is also one of its investors.

OnTime’s robotaxis had run for around 18,490 hours as of the end of June, covering about 457,000 kilometers. Its user penetration rate in the Greater Bay Area exceeded 30 percent as of the end of last year, with a market share ranking second, according to statistics from consulting firm Frost & Sullivan.

While OnTime’s revenue grew 48 percent to CNY913 million (USD126 million) in the six months ended June 30 from a year earlier, its net loss widened 14.3 percent to CNY345 million in the period, the prospectus showed. Revenue from ride-hailing services jumped nearly 31 percent to CNY791 million.

China International Capital Corporation, Huatai International, and Agricultural Bank of China International are the IPO’s co-sponsors.

Editors: Xu Wei, Futura Costaglione