Chongqing Qianli Technology(SH:601777) 经济观察报·2025-10-18 08:06Core Viewpoint - After multiple changes in its main business, Megvii Technology has finally entered the promising field of intelligent vehicles, aligning itself with Geely, a leading automotive company, to become part of Geely's intelligent driving ecosystem [1][2]. Business Evolution - Megvii Technology, originally known for facial recognition, has undergone several strategic shifts, including a focus on IoT and logistics, before pivoting to intelligent driving [2][4]. - The company was previously known as Lifan Technology, which had exited the automotive market, and its automotive business is now primarily managed by Geely's team [2][6]. - In August 2023, Geely announced the integration of its intelligent driving teams into Megvii, marking a significant consolidation in the sector [2][10]. Market Position and Challenges - The intelligent driving market is becoming increasingly competitive, with established players already deeply integrated with automotive manufacturers, leaving limited opportunities for new entrants like Megvii [3][13]. - Megvii's ambition to become a Tier 1 supplier in the global intelligent driving market faces significant hurdles due to its lack of production experience and established technology compared to leading companies [2][10][11]. Financial Performance - Megvii's financial data shows a decline in revenue from 86.27 billion in 2022 to 66.98 billion in 2023, with a slight recovery to 69.64 billion in 2024, while the company has faced continuous losses [11][12]. - In the first half of 2025, Megvii reported a revenue of 41.49 billion, a 40% increase year-on-year, but also noted an expanded loss of 1.16 billion [12]. Strategic Goals - Megvii plans to release L3 intelligent driving solutions by the end of 2025 and L4 solutions for Robotaxi by mid-2026, although achieving these goals is considered highly challenging given its current capabilities [5][10]. - The company aims to enhance its AI technology and product offerings, integrate its supply chain, and expand its sales network through its upcoming H-share listing [14]. Industry Dynamics - The intelligent driving sector is witnessing a consolidation trend, with major automotive companies increasingly investing in established suppliers, making it difficult for newcomers like Megvii to gain traction [13][15]. - The competitive landscape is dominated by firms like Huawei and Momenta, which have established strong partnerships with major automotive manufacturers, limiting Megvii's market opportunities [15][16].