BABA(US:BABA) Di Yi Cai Jing·2025-08-21 13:14Core Viewpoint - Alibaba Group announced plans to spin off Zhaoma Network Technology Co., Ltd. and list it independently on the Hong Kong Stock Exchange, aiming to enhance Zhaoma's independent valuation and attract specific investors in the automotive system solutions sector [2][7]. Company Information - Zhaoma Network Technology Co., Ltd. was established in November 2015 with a registered capital of approximately 3.2 billion RMB. The ultimate beneficiary is Zhejiang Tmall Technology Co., Ltd., holding 31.07% of the shares [5][6]. - As of the announcement date, Alibaba holds approximately 44.72% of Zhaoma's shares, and post-spin-off, it will retain over 30% [6][7]. IPO Application - Zhaoma Zhixing submitted its IPO application to the Hong Kong Stock Exchange on August 20, with Deutsche Bank, CICC, and Guotai Junan International as joint sponsors [3][7]. - The IPO aims to raise funds for research and development, market expansion, capital operations, and working capital [9][12]. Market Potential - The global smart vehicle sales are projected to grow from 58 million units in 2024 to 86.5 million units by 2030, with a compound annual growth rate (CAGR) of 6.9%. The market size for smart cockpit solutions in China is expected to increase from 129 billion RMB to 327.4 billion RMB, with a CAGR of 16.8% [12]. Strategic Focus - Zhaoma will utilize part of the raised funds to enhance its technological leadership in the smart cockpit solutions market, increase market share in China, and support business acquisitions and expansions [10][11][12].